无锡威孚高科技集团股份有限公司2021年年度报告全文
无锡威孚高科技集团股份有限公司
WEIFU HIGH-TECHNOLOGY GROUP CO. LTD.ANNUAL REPORT 2021
April 2022
1无锡威孚高科技集团股份有限公司2021年年度报告全文
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.Wang Xiaodong Principal of the Company Ou Jianbin person in charger of accounting works and
Ou Jianbin person in charge of accounting organ (accounting principal) hereby confirm that the
Financial Report of 2021 Annual Report is authentic accurate and complete.All directors are attend the Meeting for the Report deliberation.The forward-looking statements with future plans involved in the Report do 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 describes in the “prospects for thefuture development” under the “Management Discussion and Analysis” in the Report the investors
are advised to check them out.The profit distribution plan that deliberated and approved by the Board Meeting is: based on total
share capital of 1008603293 distributed 16 yuan (tax included) bonus in cash for every 10-share
hold by all shareholders 0 share bonus issued (tax included) and no public reserve transfer into
share capital either.The Report is prepared in Chinese and English respectively. In the event of any discrepancy
between the two versions the Chinese version shall prevail.
2无锡威孚高科技集团股份有限公司2021年年度报告全文
Contents
Section I. Important Notice Contents and Interpret... 2
Section II Company Profile and Main Financial Inde... 6
Section III Management Discussion and Analysis ..... 11
Section IV. Corporate Governance ................... 42
Section V. Environmental and Social Responsibility.. 63
Section VI. Important Matters ...................... 65
Section VII. Changes in Shares and Particulars abo.. 74
Section VIII. Preferred Stock ...................... 81
Section IX. Corporate Bonds ........................ 82
Section X. Financial Report ........................ 83
3无锡威孚高科技集团股份有限公司2021年年度报告全文
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 Accounting Firms and Signature and Seal of the CPA;
III. Original documents of the Company and manuscripts of public notices that disclosed in the website
designated by CSRC in the reporting period;
IV. Text of the Annual Report 2021 containing the signature of the legal representative of the Company;
V. Place for preparation: Office of the BOD of the Company
4无锡威孚高科技集团股份有限公司2021年年度报告全文
Interpretation
Items Refers to Contents
Company The Company WFHT Refers to WEIFU HIGH-TECHNOLOGY GROUP CO. LTD.Weifu Group Refers to Wuxi Weifu Group Co. Ltd.Wuxi Industry Group Refers to Wuxi Industry Development Group Co. Ltd.Robert Bosch Robert Bosch Company Refers to Robert Bosch Co. Ltd ROBERT BOSCH GMBH
RBCD Refers to Robert Bosch Powertrain Ltd.WFLD Refers to WUXI WEIFU LIDA CATALYTIC CONVERTER CO. LTD.WFJN Refers to NANJING WFJN CO. LTD.WFTT Refers to NINGBO WFTT TURBOCHARGING TECHNOLOGY CO.LTD.WFCA Refers to WUXI WEIFU CHANG A?N CO.LTD.WFMA Refers to WUXI WEIFU MASHAN FUEL INJECTION EQUIPMENT CO. LTD.WFTR Refers to WUXI WEIFU INTERNATIONAL TRADE CO.LTD.WFSC Refers to WUXI WEIFU SCHMITTER POWERTRAIN COMPONENTS CO.LTD.WFAM Refers to WUXI WFAM PRECISION MACHINERY CO.LTD.WFDT Refers to WUXI WEIFU E-DRIVE TECHNOLOGIES CO. LTD.WFAS Refers to WUXI WEIFU AUTOSMART SEATING SYSTEM CO. LTD.SPV Refers to Weifu Holding ApS
IRD Refers to IRD Fuel Cells A/S
Borit Refers to Borit NV
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.Shinwell Automobile Refers to Shinwell Automobile Technology (Wuxi) Co. Ltd.Guokai Metal Refers to Wuxi Guokai Metal Resources Co. Ltd.CSRC Refers to China Securities Regulatory Commission
SZSE Refers to Shenzhen Stock Exchange
Gongzheng Tianye Refers to Gongzheng Tianye Certified Public Accountants (Special General Partnership)
The reporting period Refers to From Jan. 1 2021 to Dec. 31 2021
5无锡威孚高科技集团股份有限公司2021年年度报告全文
Section II Company Profile and Main Financial Indexes
I. Company information
Short form of the stock WFHT Su Weifu-B Stock code 000581 200581
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in Chinese) 无锡威孚高科技集团股份有限公司
Short form of the Company (in Chinese) 威 孚高科
Foreign name of the Company (if
WEIFU HIGH-TECHNOLOGY GROUP CO.LTD.applicable)
Short form of foreign name of the
WFHT
Company (if applicable)
Legal representative Wang Xiaodong
No.5 Huashan Road Xinwu District Wuxi (production & operation place:1. No.8
Huashan Road Xinwu District Wuxi; 2. No.17 Changjiang Road Xinwu District Wuxi;
Registrations add.
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 West RoadWuxi”; on December 9 2008 registered address changed to “No.5 Huashan Road NewDistrict Wuxi” instead of“Lot 46 National High-Tech Industrial Development ZoneHistorical changes of registered addressWuxi”; on June 12 2019 registered address changed to “No.5 Huashan Road XiwuDistrict 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 XinwuDistrict Wuxi; 4. No.13 Xinhua Road Xinwu District Wuxi)”
Offices add. No.5 Huashan Road Xinwu District Wuxi
Codes for office add. 214028
Company’s Internet Web Site http://www.weifu.com.cn
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.5 Huashan Road Xinwu District Wuxi No.5 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
6无锡威孚高科技集团股份有限公司2021年年度报告全文
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 disclosed
Media and Website where the annual report China Securities Journal; Securities Times; Hong Kong Commercial Daily and Juchao
of the Company disclosed Website(http://www.cninfo.com.cn)
Preparation place for annual report Office of the Board of Directors
IV. Registration changes of the Company
Organization code 91320200250456967N
Changes of main business since listing (if
No change
applicable)
Controlling shareholder of the Company was Weifu Group before 2009. and in 2019
controlling shareholder changed to Wuxi Industry Group since 31 May 2009 due to
the merged of Wuxi Industry Group and Weifu Group. Weifu Group and Wuxi
Previous changes for controlling
Industry Group were wholly state-owned companies of Wuxi State-owned Assets
shareholders (if applicable)
Supervision & Administration Commission of State Council therefore actual
controller of the Company turns to Wuxi State-owned Assets Supervision &
Administration Commission of State Council.V. Other relevant information
CPA engaged by the Company
Name of CPA Gongzheng Tianye Certified Public Accountants (Special General Partnership)
10/F No.5 Building Jiakaicheng Fortune Center Jingrong 3rd Street Taihu Xincheng
Offices add. for CPA
Binghu District Wuxi Jiangsu Province
Signing Accountants Gu Zhi Zhang Qianqian
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
□ Yes √ No
Changes in the current
2021 2020 year over the previous 2019
year (+-)
7无锡威孚高科技集团股份有限公司2021年年度报告全文
Operation income (RMB) 13682426710.95 12883826306.60 6.20% 8784356960.30
Net profit attributable to shareholders
2575371419.802772769377.96-7.12%2268026432.78
of the listed company(RMB)
Net profit attributable to shareholders
of the listed company after deducting 2544559926.75 2089986086.10 21.75% 1947408959.68
non-recurring gains and losses(RMB)
Net cash flows arising from operating
627712593.41781811234.01-19.71%1048670053.23
activities (RMB)
Basic earnings per share
2.572.79-7.89%2.25
(RMB/Share)
Diluted earnings per share
2.572.79-7.89%2.25
(RMB/Share)
Weighted average ROE 13.67% 15.78% -2.11% 13.77%
Changes at end of the
current year compared
Year-end of 2021 Year-end of 2020 Year-end of 2019
with the end of
previous year (+-)
Total assets (RMB) 27970858427.84 27350695388.21 2.27% 23958348185.78
Net assets attributable to shareholder
19398607689.6518282017990.666.11%16990405136.62
of listed company (RMB)
The lower of the company’s net profit before or after deduction of non-recurring profit (gain)/loss 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
□Yes √No
The lower of the net profit before or after deduction of non-recurring profit (gain)/loss is negative
□Yes √No
VII. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report under both IAS (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.
8无锡威孚高科技集团股份有限公司2021年年度报告全文
VIII. Quarterly main financial index
In RMB
Q 1 Q 2 Q 3 Q 4
Operation income 4700158675.54 4337533080.70 3336372995.83 1308361958.88
Net profit attributable to shareholders
861572997.00783816490.32484604192.65445377739.83
of the listed company
Net profit attributable to shareholders
of the listed company after deducting 932554535.06 769666019.03 444013803.42 398325569.24
non-recurring gains and losses
Net cash flows arising from operating
-229541250.49309732859.66429334626.03118186358.21
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
□Yes √ No
IX. Items and amounts of extraordinary(non-recurring) profit (gains)/loss
√Applicable □ Not applicable
In RMB
Item 2021 2020 2019 Note
Gains/losses from the disposal of non-current asset (including
-12350725.8610719959.7728992604.71
the write-off that accrued for impairment of assets)
Governmental grants reckoned into current gains/losses
(except for those with normal operation business concerned
and conform to the national policies & regulations and are 71274511.67 146475795.26 91170663.57
continuously enjoyed at a fixed or quantitative basis
according to certain standards)
Fund possession fees reckoned in current gains/losses that
1608477.64
charged to non-financial enterprises
Profit and loss of assets delegation on others’ investment or
2425.40271684174.09236832172.54
management
Except for the effective hedging operations related to normal
business operation of the Company the gains/losses of fair
value changes from holding the trading financial assets and
-29889140.23375102546.0024394637.95
trading financial liabilities and the investment earnings
obtained from disposing the trading financial asset trading
financial liability and financial assets available for sale
Switch back of provision for depreciation of account
8976264.093078424.431700000.00
receivable which was singly taken depreciation test
Other non-operating income and expenditure except for the
130837.12-3090715.872183276.39
aforementioned items
Less: Impact on income tax 4345456.60 116175046.47 57345714.82
9无锡威孚高科技集团股份有限公司2021年年度报告全文
Impact on minority shareholders’ equity (post-tax) 2987222.54 5011845.35 8918644.88
Total 30811493.05 682783291.86 320617473.10 --
Specific information on other items of profits/losses that qualified the definition of non-recurring profit(gain)/loss
□Applicable √Not applicable
The Company does not have other items of profits/losses that qualified the definition of non-recurring profit(gain)/loss
Information on the definition of non-recurring profit(gain)/loss that listed in the Q&A Announcement No.1 on Information Disclosure
for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss as the recurring
profit(gain)/loss
□Applicable √Not applicable
The Company does not have any non-recurring profit(gain)/loss listed under the Q&A Announcement No.1 on Information Disclosure
for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss defined as recurring
profit(gain)/loss
10无锡威孚高科技集团股份有限公司2021年年度报告全文
Section III Management Discussion and Analysis
I. Industry of the Company during the reporting period
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
The year 2021 was the convergence of the “Two Centenary Goals” and the beginning of the “14th Five-Year Plan”
China’s economy continued to recover steadily and its economic development and pandemic prevention and
control maintained its leading position in the world and the main indicators achieved the expected goals. As a
strategic and pillar industry of the national economy the automobile industry to which the Company belongs
strived to achieve recovery and growth under multiple challenges. In 2021 China’s automobile production
volume and sales volume were 26.082 million units and 26.275 million units respectively with production volume
and sales volume increasing by 3.4% and 3.8% respectively over the same period of last year ending the
three-year downtrend since 2018.
1. Commercial vehicle market
In 2021 the market demand for commercial vehicles in the second half of the year was weaker than the first half
of 2021 due to factors such as the switch of National VI emission standards for heavy-duty diesel vehicles the
wait-and-see consumption brought about by the policy for “light truck with blue license plate” the sluggish real
estate development industry and the gradual weakening of early-stage policy dividends the downward pressure
on the commercial vehicle market was gradually emerging. In 2021 the production volume and sales volume of
commercial vehicles were 4.674 million units and 4.793 million units declined by 10.7% and 6.6% on a
year-on-year basis.From the production and sales of subdivided vehicle models among the trucks the number of heavy trucks light
trucks and mini trucks decreased significantly with the largest decrease in heavy trucks; among passenger
vehicles the growth of light bus drove the growth of the production and sales of overall buses. In 2021 the
production volume and sales volume of trucks were 4.166 million units and 4.288 million units a year-on-year
decrease of 12.8% and 8.5% respectively among them the sales volume of heavy trucks was 1.395 million units
a year-on-year decrease of 13.8%; the sales volume of medium-duty trucks was 179000 units a year-on-year
increase of 12.3%; the sales volume of light trucks was 2.11 million units a year-on-year decrease of 4.0%; the
sales volume of mini-trucks was 605000 units a year-on-year decrease of 14.7%. In 2021 the production volume
and sales volume of passenger vehicles were 508000 units and 505000 units a year-on-year increase of 12.2%
and 12.6% respectively among them 48000 large-sized buses were sold a year-on-year decrease of 15.4%;
46000 medium-sized buses were sold a year-on-year decrease of 3.1%; and 411000 light buses were sold a
year-on-year increase of 19.4%.In 2021 the commercial vehicle market was still dominated by traditional fuels with diesel vehicles and gasoline
vehicles accounting for 69.02% and 26.15% of the annual commercial vehicle market respectively. New energy
11无锡威孚高科技集团股份有限公司2021年年度报告全文
vehicles (pure electric plug-in hybrid fuel cell) only accounted for about 3.51% and other alternative fuel
vehicles only accounted for a negligible 0.05% which was still a niche choice. Pure electric commercial vehicles
accounted for the highest proportion reaching 3.4%; the fuel gas vehicles accounted for 1.26% in the commercial
vehicle market in 2021.
2. Passenger car market
In 2021 the passenger car market showed substantial growth since the beginning of the year due to a low base. In
the middle of the year it declined due to the shortage of chip and the market stabilized again in the fourth quarter
as the supply of chip eased. At the same time with the gradual increase in the income level of residents China’s
automobile market presented a clear trend of consumption upgrading. In 2021 the production volume and sales
volume of passenger vehicles were 21.408 million units and 21.482 million units respectively a year-on-year
increase of 7.1% and 6.5% respectively an increase of 3.7% and 2.7% higher than the industry growth.
3. New energy vehicle market
In 2021 the production volume and sales volume of new energy vehicles were 3.545 million units and 3.521
million units respectively an increase of 1.6 times on a year-on-year basis and the market penetration rate was
13.4% an increase of 8 percentage points on a year-on-year basis. In terms of vehicle models the production
volume and sales volume of pure electric vehicles were 2.942 million units and 2.916 million units an increase of
1.7 times and 1.6 times on a year-on-year basis respectively; the production volume and sales volume of plug-in
hybrid vehicles were 601000 units and 603000 units an increase of 1.3 times and 1.4 times on a year-on-year
basis respectively; the production volume and sales volume of fuel cell vehicles were both 2000 units an
increase of 48.7% and 35.0% on a year-on-year basis respectively.
(Data sources from China Association of Automobile Manufacturers cvworld.cn)
4. Matching between the Company's operation and the industry
In 2021 the Company's operations matched with the development of the industry. In the first half of the year driven
by the strong demand in the domestic commercial vehicle market the Company's product orders were full and sales
increased. In the second half of the year it declined with industry adjustments. During the reporting period the
Company achieved an operating income of 13.682 billion yuan an increase of 6.20% over the same period last year
and realized a net profit attributable to shareholders of the listed Company of 2.575 billion yuan a decrease of 7.12%
over the same period last year.II. Main businesses of the company in the reporting period
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
(i)Main business of the Company
Main business of the Company including R&D production and sales on the automotive core component products
core products during the reporting period were diesel fuel injection system products automotive exhaust
after-treatment system products and air management system products. Meanwhile products with core components
of fuel cell have achieved small production and sales.
12无锡威孚高科技集团股份有限公司2021年年度报告全文
1. The diesel fuel management system products are widely used in different power diesel engines supporting all
types of trucks passenger cars buses construction machinery marine and generator sets. The company not only
makes products matching with the main engines used at home but also exports some products to the Americas
Southeast Asia and the Middle East. The products meet the national emission standards.
2. The automotive exhaust after-treatment system products are supporting all major automobile manufactures in
China. And the products meet the national emission standards.
3. The Air management system products matches with most of the domestic small-bore diesel engine plants and
some 6-cyl diesel engine manufacturers and meet the needs of the light and heavy commercial vehicles and some
passenger cars and the engineering machinery. And the products meet the national emission standards.
4. Core component of the fuel cell including “one membrane & two plates” (membrane electrodes graphite
bipolar plates metal bipolar plates) and BOP key components for domestic and foreign fuel cell reactor and
system manufacturers.(ii) Business model of the CompanyThe Company follows the operating philosophy of “making competitive products creating famous brands andachieving joint value growth” implements the business model that parent company unifies the management and
subsidiaries decentralize the production. The parent company is responsible for making strategic development
planning and operation targets and making the unified management instruction and assessment for the finance
significant personnel management core raw materials quality control and the R&D of technologies. The
subsidiaries arrange production based on the order management model of market which makes the subsidiaries
keep the consistent quality with the Company helps keep abreast of customer needs and saving logistics costs
maintain the timeliness of products production and supply and improve the Company’s economic benefits.Production and operation of the vehicle manufacturing during the reporting period
□Applicable √Not applicable
Production and operation of the auto components during the reporting period
√Applicable □Not applicable
Unit: 10000 pieces
Capacity Sales volume
Y-o-y Y-o-y
Same period last Same period last
Current period increase/decrease Current period increase/decrease
year year
(+-)(+-)
According to components
Fuel management
system-
2792770.72%284.8256.810.90%
multi-cylinder
pumps
Fuel management
216.7253.7-14.58%189.6242.8-21.91%
system- fuel injector
After-treatment
583470.59%44.43334.55%
system - purifier
Air management 87.5 88.2 -0.79% 90.5 84 7.74%
13无锡威孚高科技集团股份有限公司2021年年度报告全文
system -turbocharger
According to vehicle package
After-treatment
286303-5.61%263.6296-10.95%
system - purifier
According to after-sale service market
Fuel management
system-
12-50.00%1.22.2-45.45%
multi-cylinder
pumps
Fuel management
0.31.3-76.92%0.41.2-66.67%
system- fuel injector
Air management
1.51.8-16.67%1.52-25.00%
system -turbocharger
According to region
Fuel management
system-
2802790.36%28625910.42%
multi-cylinder
pumps
Fuel management
217255-14.90%190244-22.13%
system- fuel injector
After-treatment
3443372.08%308329-6.38%
system - purifier
Air management
8990-1.11%92866.98%
system -turbocharger
Others
Explanation of reasons for more than 30% changes on a y-o-y basis
√ Applicable □ Not applicable
Increasing market demand for after-treatment system products in 2021
Sales model of the components
The Company has adhered to customer-oriented using flexible marketing strategies and standardized
development procedures to meet the needs of different types of customers so as to ensure the smooth progress of
customer development plans and strive for more customers and larger market shares. The Company has
established a mechanism for mutual visits to strategic customers. The Company's senior executives regularly visit
customers or receive customer visits hold high-level strategic meetings special cooperation and exchanges and
other activities. Implement special management to the company's strategic customers establish a four-in-one
collaborative organization composed of Company leaders key account managers marketing departments and
business departments and do a good job in customer demand analysis and management customer satisfaction
survey analysis etc. At the same time the Company optimizes business processes through information technology
means to increase the speed of response to customer needs and assists customer relationship management through
modern technical tools such as call centers customer data warehouses business intelligence mobile devices and
14无锡威孚高科技集团股份有限公司2021年年度报告全文
web conferences. The Company promotes the collaborative marketing of existing and new businesses strengthens
exchanges and cooperation with existing business customers in new businesses and actively expands new
customers and develops potential customers.The Company carries out auto finance business
□ Applicable √ Not applicable
The Company carries out related business of new-energy vehicles
√ Applicable □ Not applicable
Production and operation of the complete and parts of new-energy vehicles
In RMB
Category Capacity status Output Sales volume Sales revenue
Core components of hydrogen fuel cell 1.5 million pieces 618000 pieces 574000 pieces 58593000.00
Core parts of E-drive 1.65 million pieces 466000 pieces 402000 pieces 32080000.00
Intake (PHEV) supercharger 150000 sets 2000 sets 1000 sets 1194000.00
III. Core Competitiveness Analysis
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
1. Industry and brand advantages. The Company was established in 1958 after more than 60 years of
development it has become a famous manufacturer of auto parts at home and has established long-term and
stable cooperative relations with major domestic main engine factories and vehicle manufacturers the existing
automobile core components main products (including diesel fuel injection system exhaust after-treatment system
air management system) have strong market competitiveness and higher market share. The company is a
pacesetter enterprise in China's internal combustion engine industry and ranks in the top 30 enterprises in China’s
auto parts industry.
2. Technology and product advantages. The Company is a national high-tech enterprise. It has scientific research
platforms such as "National Enterprise Technology Center" "National High-tech Research and Development Plan
Achievement Industrialization Base" "Post-Doctoral Scientific Research Workstation" "Jiangsu Postgraduate
Workstation" and number of provincial-level engineering and technological research centers provincial-level
engineering laboratories and other research and development institutions mainly focus on fuel injection systems
exhaust after-treatment systems and air management systems to conduct technical research and product
development. The Company has mastered a number of core patented technologies the main product technical
indicators are at the leading level in the industry. In recent years the Company focuses on the strategic layout in
the fields of green hydrogen and smart electric established a new energy and network technology research
institute built a hydrogen energy fuel cell test center and formed technical research and development capabilities
of hydrogen fuel cell core components and intelligent network products.
3.Management and manufacturing advantages. The Company has a complete organizational structure and
management systems process and has built a financial sharing platforms which can realize the effective
15无锡威孚高科技集团股份有限公司2021年年度报告全文
migration and stable operation of organization & personnel business & accounting; The established human
resources information system platforms can ensure the timely and accurate standardization of organization
personnel salary and attendance; built a purchase sharing system opened up the information interconnection of
enterprises and suppliers and achieved the closed-loop management of the procurement process; carried out the
Weifu Production System (WPS) with lean philosophy established the quality management system with the
whole process and has strong capabilities in production and manufacturing quality assurance cost control and
product delivery. The Company focuses on intelligent manufacturing continues to build intelligent factories with
Weifu characteristics and promotes the application of cloud computing and 5G networks which can strongly
support the Company’s future business development.
4. Advantages in marketing and service. The Company has a stable professional and experienced marketing team
that can provide targeted support and services according to customer needs and customer relationships are
harmonious. For long-term strategic customers the company has established a four-in-one marketing
collaboration organization composed of leaders key account managers marketing departments and business
departments. The Company’s management exchanges regular visits to promote exchanges and cooperation. The
Company has a relatively perfect after-sales service system has built after-sales service network and intelligent
service platform established special maintenance technology service stations nationwide to regularly provide end
users with the training of operation and maintenance fault analysis and judgment and provide customers with fast
timely and professional comprehensive after-sales services.
5.Talent team advantage. The Company's management team has extensive experience and a good industry
reputation in the Automobile components industry. The Company pays attention to the growth of employees and
the construction of a core talent team. After years of accumulation it has accumulated a group of professional and
high-quality management and technical personnel established a reasonable talent echelon and provided strong
manpower resource guarantee for the Company's long-term and stable development. The Company's human
resource management system is relatively complete continuously optimizing various human resource
management systems to provide a fair value realization platform for employees' career development. The
Company pays attention to the service and care of employees improves the service experience of employees
through the establishment of employee self-service platform and creates a working environment with warmth and
sense of belonging.
6. Advantages of international cooperation. The Company is committed to the core auto parts industry and has
continued to carry out in-depth cooperation with domestic and foreign strategic partners for a long time. The
Company began to cooperate with the industry giant Robert Bosch Company in 1984 established a long-term and
stable cooperative relationship and continued to expand cooperation in new business areas the cooperation model
between the two parties has become a model in the industry. At the same time the Company has established joint
ventures with Autocam Corporation of the United States and Schmidt Corporation of Germany and has
cooperated closely in the field of high-end precision manufacturing. Through long-term cooperation with
well-known European and American enterprises the Company has cultivated a group of middle and senior
management and technical personnel who have international communication skills international vision and
familiarity with international standards and have mastered the international advanced R&D process design quality
16无锡威孚高科技集团股份有限公司2021年年度报告全文
control and production management capabilities which accelerated the sound development of the Company's
business and promoted the development in international business and market.
7. Excellent corporate culture. The Company takes “quality and intelligence driving a better life”as a mission and
"100-year Weifu auto core parts industry expert" as a vision fulfills the core value of "focus innovation
responsibility integration" insists on the enterprise spirit of "doing practical things daring to act being good at
cooperation bravely contending for the first". During the reporting period the Company put forward the cultural
positioning of "quality and intelligence" created a cultural system of "quality and intelligence" "quality" and
"intelligence" is the Company's cultural double engine reflecting the persistence of the original aspiration and the
pursuit of the future. The continuous innovation of corporate culture construction is a strong support for the
Company's sustained excellence provides strong support for the Company to become a trustworthy and respected
industrial experts and plays a positive role in achieving the Company's strategic objectives.IV. Main business analysis
1.Overview
The year 2021 was the first year of the “14th Five-Year” Plan and the overall operation of the national economy
was showing a trend of stable recovery and sustainable development. During the reporting period under the
pressure of the complex and changeable macroeconomic situation and the fierce competition in the industry theCompany adhered to the principle of “stabilizing operation quality promoting management upgradesimplementing strategic guidance and accelerating new businesses expansion” and with the joint efforts of all
employees the Company fully completed various operating performance indicators operating income reached a
record high. In 2021 the Company achieved operating revenue of 13.682 billion yuan a year-on-year increase of
6.20%; net profit attributable to shareholders of listed companies was 2.575 billion yuan a year-on-year decrease
of 7.12%; total assets were 27.971 billion yuan a year-on-year increase of 2.27%; net assets attributable to
shareholders of listed companies were 19.399 billion yuan a year-on-year increase of 6.11%.Main work carried out by the Company during the reporting period:
1. Faced up to the difficulties dared to challenge and achieved steady growth in operating income.
In the face of complex environment and industry changes in 2021 the Company actively responded gave full play
to the advantages of key customers in collaborative operations tapped potentials bravely challenged actively
expanded seized key markets and key projects and achieved steady growth in operating income. Fuel management
system products: the annual sales volume of common rail pumps exceeded 2.1 million units; the sales volume of VE
distribution pumps exceeded 450000 units a year-on-year increase of over 29%; the annual sales volume of
high-pressure fuel rails exceeded 1.61 million units hitting a record high. After-treatment system products: the
annual sales volume of gasoline purifiers was nearly 2.2 million sets hitting a record high and the annual sales
volume of diesel purifiers was nearly 320000 sets. The market share of passenger vehicles increased steadily
achieving a breakthrough in the high-end autonomous passenger vehicle market; the commercial vehicles obtained
a number of National VI projects from key customers and the overall market position was further improved. The
new market of car manufacturers also made breakthroughs. Air management system products: the annual sales
17无锡威孚高科技集团股份有限公司2021年年度报告全文
volume of four-cylinder superchargers exceeded 750000 units hitting a record high. The gasoline engine acquired
key projects from a number of customers; the diesel engine acquired projects of a number of new customers and
continued to maintain the industry position as the largest domestic market share of four-cylinder diesel engines. The
six-cylinder supercharger maintained the dominant position of many key customers acquired natural gas and diesel
projects from many mainstream customers and further expanded the mainstream customer base for six-cylinder
superchargers. With its high-end precision manufacturing products the Company has entered the supplier system of
well-known companies in the new energy vehicle industry and has obtained designated projects from customers.
2. Grasped at the National VI key projects and accelerated the research and development of new business
products.High-efficiency internal combustion power products: completed the sample development of product C for GP
electronic fuel system project completed B sample development of CB6-25; integrated electronic VE pump
achieved various T4 engines. The six-cylinder supercharger completed the performance finalization of various
models of multiple customers and realized the small batch supply of many National VI diesel engine superchargers;
the four-cylinder gasoline supercharger completed the PPAP of several customer projects and successfully obtained
the new National VI projects of a variety of 2.5L-displacement in key markets. The after-treatment system
completed the sample development of light diesel platform product A and the sample development of heavy diesel
platform product B; completed the conversion of after-treatment products for several key customers.Hydrogen energy and intelligent networking products: completed the construction of incubation line for
platinum-carbon catalyst completed the process design of the main equipment of the incubation line for platinum
alloy catalyst; the performance of the membrane electrode prepared with the water-based catalyst ink formulation
reached the industry-leading level; the gas diffusion layer completed the testing and verification of sample B of
micropore layer preparation; the metal single cell completed the testing of A sample. The 35MPa high-pressure
valve completed the development of sample A and the trial production of sample B; the low-pressure hydrogen
subsystem completed the small batch production of four low-pressure valves and the air bearing completed the
optimization for complete set of manufacturing process; the electronic water pump and electronic thermostat
completed the development of sample A and the design of sample B. The medium-range radar and security radar
completed the development of the sample A and the in-cabin radar completed the prototype sample design; the 4D
millimeter-wave radar completed the trial production and delivery of the first batch of prototype samples.
3. The strategic plan was advanced in an orderly manner and the new business layout was fruitfulIn terms of strategic planning and implementation the Company completed and issued the “Strategic Planningand Management System” established the Company’s strategic planning line organization and implemented its
“14th Five-Year” strategic planning work. The Company carried out special planning research for strategic new
business deepened the business planning for core components of hydrogen fuel cell promoted the feasibility
study of hydrogen production by electrolysis of water promoted the construction planning of the hydrogen energy
business department and obtained the support of the government department for the development of hydrogen
energy business; further improved the planning of environmental situational awareness in the intelligent security
field combined with the intelligent cockpit to complete a new round of intelligent network planning; built a
hydrogen fuel cell business cooperation platform and actively promoted strategic cooperation with relevant
18无锡威孚高科技集团股份有限公司2021年年度报告全文
parties. In terms of investment cooperation we implemented the construction planning for three major global
bases for hydrogen fuel cell core components advanced the completion of the investment in the European base
and the acquisition of the equity of a German coating Company and completed the preliminary work for the
construction of the Asia-Pacific base. In order to seek opportunities for the coordinated development of the
industrial chain the Company has successively completed investments in Qingdao Shangqihui Zhuzhan New
Industry Investment Fund Wuxi Auto-link World Information Technology Co. Ltd. and Shanghai Bo yuan
Jiacheng Venture Capital Partnership (Limited Partnership). We strengthened the normalized management after
investment continuously improved the management mechanism for “three meetings” and implemented the
“bimonthly report of new business project” mechanism.
4. Strengthened quality and safety management and promoted the construction of intelligent
informatization.The zero-kilometer core products of quality management all reached the annual target and the zero-kilometer
failure rate of common rail products was less than or equal to 10PPM; the establishment application promotion
and solidification of the standards for the evaluation of all elements of the process and the regular review of
customer complaints were strengthened; integrated the development of quality valves and the requirements of
quality management system introduced the tools and methods for the quality function development and
optimized the functions of the new FMEA software; promoted the positive development of quality management
capabilities advanced the preparation of the new version of Q11 manual and carried out graded training. Strictly
controlled the project quality completed the construction of the new product incubation base of the headquarters
WFMS logistics and the plant at Lingjiang Road; basically completed the construction of the fifth phase of the
103 block; completed the preliminary preparations for the R&D building project. Built an EHS information
supervision platform to realize real-time monitoring and early warning of safety risk points and sewage discharge
points.Continued to promote the upgrade of intelligent informatization completed the standardization of logistics and
warehousing business processes and launched and promoted the logistics warehouse and production execution in
multiple business divisions; completed the implementation and launch of the company’s supply chain project
planning system; and advanced the smart factory construction in an orderly manner. Innovatively completed the
construction of Weifu Intelligent Manufacturing 5G+ laboratory and more than 20 innovative technologies have
been verified in the Company’s six typical production scenarios. Completed the implementation and launch of the
data service platform and built a complete Company data service platform architecture. The Company’s
information security system has been completed and put into trial operation and successfully passed the
information security ISO27001 system certification.
5. Promoted management upgrade and improved business quality.
The Company established the “one report one meeting” supervisory control and analysis mechanism for operation
and operated it on a normal basis promoted process management and completed the optimization and launch of
process portal; completed the construction of file management system and achieved full coverage of electronic
file management system; completed the popularization and application of seal management system in subsidiaries.Completed the planning and adjustment of the first stage of the Company’s procurement organization reform;
19无锡威孚高科技集团股份有限公司2021年年度报告全文
established the operation and management methods for bulk raw material futures; implemented hierarchical
management for improvement of the suppliers’ quality problems; built an inventory analysis data platform to
promote slow-flow analysis and disposal. Promoted asset quality optimization and operational efficiency
improvement optimized wealth management structure; implemented penetration analysis of strategic product cost
clarified target cost and promoted continuous cost optimization. According to the strategic development policy
the Company started the “San Hang Yi Jiang” talent development system and created a valuable talent supply
chain system through various forms; optimized the salary structure formulated and tried out salary promotion
plans and continuously improved internal fairness and external competitiveness. Focused on core and new
businesses and new processes focused on conducting ex-ante risk reviews on foreign investment entrusted wealth
management and bulk futures did a good job in legal risk due diligence and reminders continued to carry out
internal control self-inspection self-inspection and special inspections strengthened closed-loop management
and improved the Company’s risk control management system so as to escort for the business development.
2.Revenue and cost
(1)Composition of operation revenue
In RMB
20212020
Increase/decrease
Ratio in operation Ratio in operation
Amount Amount y-o-y(+-)
revenue revenue
Total operation
13682426710.95100%12883826306.60100%6.20%
revenue
According to industries
Automotive
13184138129.8896.36%12430431489.9096.48%6.06%
components
Other business 498288581.07 3.64% 453394816.70 3.52% 9.90%
According to products
Automotive fuel
6025368344.7144.04%5365576457.9641.65%12.30%
management system
Automotive
after-treatment 6511015127.55 47.59% 6408508512.76 49.74% 1.60%
system
Air management
647754657.624.73%656346519.185.09%-1.31%
system
Other business 498288581.07 3.64% 453394816.70 3.52% 9.90%
According to region
Domestic 13304186980.94 97.24% 12670892115.47 98.35% 5.00%
Foreign 378239730.01 2.76% 212934191.13 1.65% 77.63%
According to sales model
Direct sales 13682426710.95 100.00% 12883826306.60 100.00% 6.20%
20无锡威孚高科技集团股份有限公司2021年年度报告全文
(2) The industries products regions or sales model accounting for over 10% of the Company’s operation
revenue or operation profit
√Applicable □ Not applicable
In RMB
Increase/decrease Increase/decrease Increase/decrease
Gross profit
Operation revenue Operation cost of operation of operation cost of gross profit
ratio
revenue y-o-y y-o-y ratio y-o-y
According to industries
Automotive
13184138129.8810822600520.9017.91%6.06%6.89%-0.64%
components
According to products
Automotive fuel
management 6025368344.71 4547678483.81 24.52% 12.30% 14.76% -1.63%
system
Automotive
after-treatment 6511015127.55 5811299783.52 10.75% 1.60% 1.09% 0.45%
system
Air management
647754657.62463622253.5728.43%-1.31%12.17%-8.60%
system
According to region
Domestic sales 12805898399.87 10455310517.21 18.36% 4.82% 5.35% -0.41%
Foreign sales 378239730.01 367290003.69 2.89% 77.63% 83.34% -3.03%
According to sales model
Direct sales 13184138129.88 10822600520.90 17.91% 6.06% 6.89% -0.64%
Under circumstances of adjustment in reporting period for statistic scope of main business data adjusted main business based on
latest one year’s scope of period-end
□ Applicable √ Not applicable
(3) Whether the Company’s revenue from physical sales is greater than its revenue from labor services
√ Yes □ No
Increase/decrease
Industries Item Unit 2021 2020
y-o-y (+-)
Fuel management Sales volume In 10 thousand sets 286 259 10.42%
system-
Output In 10 thousand sets 280 279 0.36%
multi-cylinder
pumps Storage In 10 thousand sets 38 44 -13.64%
Fuel management Sales volume In 10 thousand suits 190 244 -22.13%
system- fuel injector Output In 10 thousand suits 217 255 -14.90%
21无锡威孚高科技集团股份有限公司2021年年度报告全文
Storage In 10 thousand suits 52 25 108.00%
Sales volume In 10 thousand pieces 308 329 -6.38%
After-treatment
Output In 10 thousand pieces 344 337 2.08%
system - purifier
Storage In 10 thousand pieces 81 45 80.00%
Sales volume In 10 thousand sets 92 86 6.98%
Air management
Output In 10 thousand sets 89 90 -1.11%
system -turbocharger
Storage In 10 thousand sets 17 20 -15.00%
Reasons for y-o-y relevant data with over 30% changes
√ Applicable □ Not applicable
The installed market demand for fuel injectors is getting less and less according to the national T4 emission controls. Storage of
purifier increased due to the fluctuation of precious metal price.
(4) Performance of significant sales contracts major procurement contract entered into by the company up
to the current reporting period
□ Applicable √ Not applicable
(5)Composition of operation cost
Classification of industries and products
In RMB
20212020
Increase/decrease
Industries Item Ratio in operation Ratio in operation
Amount Amount y-o-y (+-)
cost cost
Automotive
Direct material 9048058229.72 83.60% 8569425665.05 84.64% 5.59%
components
Automotive
Labor cost 790874802.43 7.31% 698928471.64 6.90% 13.16%
components
Automotive
Depreciation 257633922.53 2.38% 248063547.16 2.45% 3.86%
components
Automotive Varieties of
726033566.226.71%608156797.106.01%19.38%
components consumption
In RMB
20212020
Increase/decrease
Products Item Ratio in operation Ratio in operation
Amount Amount y-o-y (+-)
cost cost
Fuel management
Direct material 3080614222.05 67.74% 2715216192.48 68.52% 13.46%
system
Fuel management
Labor cost 676106197.66 14.87% 566823619.35 14.30% 19.28%
system
Fuel management
Depreciation 214171045.70 4.71% 192635987.10 4.86% 11.18%
system
22无锡威孚高科技集团股份有限公司2021年年度报告全文
Fuel management Varieties of
576787018.4012.68%488016067.1012.32%18.19%
system consumption
After-treatment
Direct material 5554787086.57 95.59% 5500221875.04 95.68% 0.99%
system
After-treatment
Labor cost 90930353.55 1.56% 104394069.57 1.82% -12.90%
system
After-treatment
Depreciation 27076236.77 0.47% 35518676.76 0.62% -23.77%
system
After-treatment Varieties of
138506106.632.38%108415545.841.88%27.75%
system consumption
Air management
Direct material 412656921.10 89.01% 353987597.53 85.64% 16.57%
system
Air management
Labor cost 23838251.22 5.14% 27710782.72 6.70% -13.97%
system
Air management
Depreciation 16386640.06 3.53% 19908883.30 4.82% -17.69%
system
Air management Varieties of
10740441.192.32%11725184.162.84%-8.40%
system consumption
Explanation
Not applicable
(6) Whether there was a change in the scope of consolidation during the reporting period
□Yes √No
(7) Major changes or adjustment in business product or service of the Company in Reporting Period
□ Applicable √ Not applicable
(8) Major sales and main suppliers
Major sales clients of the Company
Total top five clients in sales (RMB) 7081982680.18
Proportion in total annual sales volume for top five clients 51.77%
Ratio of the related party sales in total annual sales from top five clients 31.88%
Information of top five clients of the Company
Serial Name Sales (RMB) Proportion in total annual sales
1 RBCD 3137245415.70 22.93%
2 Robert Bosch Company 1224350229.77 8.95%
3 Client 1 1180434132.10 8.63%
23无锡威孚高科技集团股份有限公司2021年年度报告全文
4 Client 2 1101363049.87 8.05%
5 Client 3 438589852.74 3.21%
Total -- 7081982680.18 51.77%
Other situation of main clients
√ Applicable □ Not applicable
The Company has association with RBCD and Robert Bosch Company. In addition the directors supervisors senior executives
core technicians and actual controller of the Company have no equity in main suppliers directly or indirectly.Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 3750318609.06
Proportion in total annual purchase amount for top five suppliers 29.67%
Ratio of the related party purchase in total annual purchase amount from top five suppliers 6.52%
Information of top five suppliers of the Company
Serial Suppliers Purchasing amount (RMB) Ratio in annual total purchasing amount
1 Supplier 1 1220093194.17 9.65%
2 WFEC 824433272.43 6.52%
3 Supplier 2 744095990.00 5.89%
4 Supplier 3 563466710.08 4.46%
5 Supplier 4 398229442.38 3.15%
Total -- 3750318609.06 29.67%
Other notes of main suppliers of the Company
√ Applicable □ Not applicable
The Company has association with WFEC. In addition the directors supervisors senior executives core technicians and actual
controller of the Company have no equity in main suppliers directly or indirectly.
3. Expenses
In RMB
Increase/decrease
2021 2020 Note of major changes
y-o-y (+-)
mainly due to the continuous
optimization of product quality
Sales expenses 264651432.56 406353445.10 -34.87%
management and the reduction of three
guarantee fees for customers
Administration expenses 611872150.24 782824422.63 -21.84%
Financial expenses 20063248.84 -23278301.84
R&D expenses 595406951.64 532581209.78 11.80%
4. R&D investment
√ Applicable □ Not applicable
24无锡威孚高科技集团股份有限公司2021年年度报告全文
Expected impact on the future
Projects Purpose Progress Goals to be achieved
development of the Company
Development and
R&D the technology for In progress and Resulting a core component
application of the Promotes the market share of
alternative(natural gas some models are in products for clean fuel
core components of clean fuel products in the
etc) traditional fuel customer application injection system and apply to
clean fuel injection future
injection system already the market
system
Development and Development on the
Resulting the products that
application on the common-rail pump In progress and
meets the National VI Enhance the existing products
common-rail pump products that meets the some models are in
emission standards for and extend the life of
products to meet the National VI emission customer application
automotive diesel engines and traditional products
National VI standards for automotive already
apply to the market
emission standard diesel engines
Development and
application on the Development on the Resulting the diesel fuel
In progress and
diesel fuel injection diesel fuel injection parts injection parts products that Enhance the existing products
some models are in
parts products to products that meets the meets the off-road T4 and extend the life of
customer application
meet the off-road off-road T4 emission emission standards and apply traditional products
already
T4 emission standards to the market
standards
Development and
application on the Development on the Resulting the passenger car
In progress and
passenger car passenger car after-treatment products that Enhance the existing products
some models are in
after-treatment after-treatment products meets the National VI and extend the life of
customer application
products to meet the that meets the National emission standards and apply traditional products
already
National VI VI emission standards to the market
emission standards
Development and
Resulting the commercial
application on the Development on the
In progress and vehicle after-treatment
commercial vehicle commercial vehicle Enhance the existing products
some models are in products that meets the
after-treatment after-treatment products and extend the life of
customer application National VI emission
products to meet the that meets the National traditional products
already standards and apply to the
National VI VI emission standards
market
emission standards
Development and
Resulting the after-treatment
application on the Development on the In progress and
products that meets the Enhance the existing products
after-treatment after-treatment products some models are in
off-road T4 emission and extend the life of
products to meet the that meets the off-road customer application
standards and apply to the traditional products
off-road T4 T4 emission standards already
market
emission standards
Development and Development on the In progress and Resulting the supercharger
Enhance the existing products
application on the supercharger products for some models are in products for gasoline engine
and extend the life of
supercharger gasoline engine that customer application that meets the National VI
traditional products
products for meets the National VI already. emission standards and put
25无锡威孚高科技集团股份有限公司2021年年度报告全文
gasoline engine to emission standards them on the market
meet the National
VI emission
standards
Development and
application on the Development on the Resulting the supercharger
In progress and
supercharger supercharger products for products for diesel engine that Enhance the existing products
some models are in
products for diesel diesel engine that meets meets the National VI and extend the life of
customer application
engine to meet the the National VI emission emission standards and put traditional products
already
National VI standards them on the market
emission standards
Development and
application on the Development on the Resulting the supercharger
In progress and
supercharger supercharger products for products for natural gas Enhance the existing products
some models are in
products for natural natural gas engine that engine that meets the National and extend the life of
customer application
gas engine to meet meets the National VI VI emission standards and put traditional products
already
the National VI emission standards them on the market
emission standards
Development and Enhance the existing
Development on the In progress and Resulting the supercharger
application of the products fit in with new
supercharger for some models are in products for automotive
supercharger for application scenarios and
automotive incremental customer application incremental engine and put
automotive extend the life of traditional
engine already them on the market
incremental engine products
In progress relevant
Development and Development on the core products have Resulting a large-scale Main direction of the
application on the materials (one membrane achieved small production of core materials emerging business of the
core materials of & two plates catalyst)of production and have for the hydrogen fuel cells Company in the future and
hydrogen fuel cell hydrogen fuel cell entered customer and put them on the market new business growth points
application
In progress relevant
Development and Resulting a large-scale
Development on the BOP products have Main direction of the
application on BOP production of BOP key
key component (valve achieved small emerging business of the
key component component products of
pumps etc.) products of production and have Company in the future and
products of hydrogen fuel cells and put
hydrogen fuel cells entered customer new business growth points
hydrogen fuel cells them on the market
application
In progress relevant
Development and Development on E-drive Resulting development on
products have been Main direction of the
application of the component (motor shaft the E-drive components
mass-produced and emerging business of the
E-drive components motor case etc. ) products for new energy
have entered Company in the future and
products for new products for new energy vehicles and put them on the
customer new business growth points
energy vehicles vehicles market
applications
Development and Development on In progress sample Resulting the intelligent Main direction of the
application of intelligent sensing core delivery of relevant sensing core module products emerging business of the
intelligent sensing module products products have been and put them on the market Company in the future and
26无锡威孚高科技集团股份有限公司2021年年度报告全文
core module (milliliter-wave radar) achieved new business growth points
products
In progress some Main direction of the
Development and Resulting the smart seating
Development on smart products have emerging business of the
application of smart products and put them on the
seating products entered customer Company in the future and
seating products market
applications new business growth points
Development and In progress some Resulting the hydraulic Main direction of the
Development on
application on core products have system core component emerging business of the
hydraulic system core
component products entered customer products and put them on the Company in the future and
component products
of hydraulic system applications market new business growth points
Development and In progress some Main direction of the
Development on brake Resulting the brake system
application on core products have emerging business of the
system core component core component products and
component products entered customer Company in the future and
products put them on the market
of brake system applications new business growth points
In progress some
Development and
equipment has been Improve the technological
application of the Development on Resulting the intelligent
used in capabilities in field of
intelligent intelligent manufacturing manufacturing equipment and
manufacturing and intelligent manufacturing and
manufacturing equipment put them on the market
testing by the creating economic benefits
equipment
customers
Personnel of R&D
2021 2020 Change ratio (+-)
Number of R&D (people) 1112 1094 1.65%
Ratio of number of R&D 20.82% 20.30% 0.52%
Educational background —— —— ——
Undergraduate 679 703 -3.41%
Master 207 165 25.45%
Age composition —— —— ——
Under 30 289 280 3.21%
30~405705660.71%
Investment of R&D
2021 2020 Change ratio (+-)
R&D investment (RMB) 595406951.64 532581209.78 11.80%
R&D investment/Operation revenue 4.35% 4.13% 0.22%
Capitalization of R&D investment (RMB) 0.00 0.00
Capitalization of R&D investment/R&D investment 0.00% 0.00%
Reasons and effects of significant changes in composition of the R&D personnel
□Applicable √Not applicable
The reason of great changes in the proportion of total R&D investment accounted for operation income than last year
27无锡威孚高科技集团股份有限公司2021年年度报告全文
□ Applicable √ Not applicable
Reason for the great change in R&D investment capitalization rate and rational description
□ Applicable √ Not applicable
5. Cash flow
In RMB
Item 2021 2020 Increase/decrease y-o-y (+-)
Subtotal of cash inflow arising from operating
15691750941.1512043108885.3130.30%
activities
Subtotal of cash outflow arising from operating
15064038347.7411261297651.3033.77%
activities
Net cash flows arising from operating activities 627712593.41 781811234.01 -19.71%
Subtotal of cash inflow from investing activities 19393979375.09 10622042577.88 82.58%
Subtotal of cash outflow from investing activities 19422030926.39 10050595606.37 93.24%
Net cash flows arising from investing activities -28051551.30 571446971.51 -104.91%
Subtotal of cash inflow from financing activities 1717278897.47 714062395.41 140.49%
Subtotal of cash outflow from financing activities 2154807351.77 1940870096.67 11.02%
Net cash flows arising from financing activities -437528454.30 -1226807701.26
Net increase of cash and cash equivalents 149072918.03 124447364.85 19.79%
Main reasons for y-o-y major changes in aspect of relevant data
√ Applicable □ Not applicable
1. Net cash flows arising from operating activities decreased compared with the previous period mainly due to the change of
settlement pattern for previous metals in the reporting period;
2. Net cash flows arising from investing activities decreased compared with the previous period mainly due to the decrease in
dividends from participating enterprises and increase in investment;
3. Net cash flows arising from financing activities increased compared with the previous period mainly due to the increase in bank
loans in the reporting period.Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company
√ Applicable □ Not applicable
Mainly due to the investment earnings and specific influencing factors found more in supplementary information of cash flow
statement carried in Annotation of the Report.V. Analysis of the non-main business
√ Applicable □ Not applicable
28无锡威孚高科技集团股份有限公司2021年年度报告全文
In RMB
Ratio in
Amount Cause description Whether be sustainable
total profit
Investment earnings mainly The joint ventures RBCD and
form the two joint ventures Zhonglian Electronics have
Investment earnings 1954523836.59 71.32% (RBCD and Zhonglian stable production and operation
Electronics) with stock so the investment returns can be
participated by the Company sustained and stable
Gain/loss of fair value changes -40270333.81 -1.47%
Asset impairment -138117315.80 -5.04%
Non-operating income 656202.07 0.02%
Non-operating expense 25509569.87 0.93%
VI. Assets and liability analysis
1. Major changes of assets composition
In RMB
Year-end of 2021 Year-begin of 2021
Ratio changes
Ratio in Ratio in Note of major changes
Amount Amount (+-)
total assets total assets
Monetary funds 1896063265.69 6.78% 1963289832.33 7.17% -0.39%
Account
2053800293.777.34%2824780352.4110.32%-2.98%
receivable
Inventory 3445396375.09 12.32% 2877182174.64 10.51% 1.81%
Investment real
19387746.560.07%20886681.620.08%-0.01%
estate
Long-term equity
5717944788.1220.44%4801488290.9717.54%2.90%
investment
Fixed assets 2932210452.51 10.48% 2870351470.37 10.49% -0.01%
mainly due to the increase of
Construction in
387429933.08 1.39% 243795493.04 0.89% 0.50% equipment and engineering
progress
investment
Right-of-use mainly due to depreciation of right
23148405.580.08%33192094.140.12%-0.04%
assets of use assets
Short-term Mainly due to the increase of bank
1437958206.555.14%302238600.051.10%4.04%
borrowings loans
Mainly due to the increase of
Contract liability 136427636.39 0.49% 81717387.25 0.30% 0.19%
advance payment from customers
Long-term Mainly for the subsidiary loan due
3050640.970.01%-0.01%
borrowings to return
Mainly refers to the actual
Lease liability 15795469.25 0.06% 22604755.70 0.08% -0.02% recognition and settlement of lease
liabilities in the current year
29无锡威孚高科技集团股份有限公司2021年年度报告全文
Foreign assets account for a relatively high proportion
□Applicable √Not applicable
2. Assets and liability measured by fair value
√ Applicable □ Not applicable
In RMB
Accumulativ
Changes of Devaluation
Amount at e changes of Amount of Amount of
fair value of Other Amount at
Items the beginning fair value purchase in sale in the
gains/losses withdrawing changes (+-) period-end
period reckoned into the period period
in this period in the period
equity
Financial
assets
1.Trading
financial
asset(excludin 532422136 -39089653. 184275205 -16020155 769249630
g derivative 0.10 77 15.00 914.21 7.12
financial
assets)
2.Other equity
285048000.285048000.
instrument
0000
investment
3.Receivable 100552447 -292507463 713017014.
financing 7.88 .38 50
4.Foreign
-1180680.075915620.374734940.3
exchange
440
contracts
Subtotal of
661479383-40270333.185034361-16312663876529626
financial
7.988135.34377.591.92
assets
661479383-40270333.185034361-16312663876529626
Above total
7.988135.34377.591.92
Financial
0.000.00
liabilities
Other changes
Maturity redemption
Whether there have major changes on measurement attributes for main assets of the Company in report period or not
□ Yes √No
30无锡威孚高科技集团股份有限公司2021年年度报告全文
3. The assets rights restricted till end of the period
Book value at
Item Restriction reason
period-end
Monetary funds 9347031.23 T he USD margin for foreign exchange contracts
Monetary funds 17459061.33 C ash deposit paid for bank acceptance
Monetary funds 4044016.40 C ourt freezing
Monetary funds 194220.00 C ash deposit for Mastercard
Note receivable 727930810.05 N otes pledge for bank acceptance
Receivable financing 191355521.58 N otes pledge for bank acceptance
In accordance with the civil ruling No.(2016)Y03MC2490 and No.(2016) Y03MC2492 of
Guangdong Shenzhen Intermediate People's Court (Hereinafter referred to as Shenzhen
Intermediate People's Court) the property with the value of 217 million yuan under the
Trading financial asset 252667176.66 name of the Company and other seven respondents and the third party Shenzhen Hejun
Chuangye Holdings Co. Ltd. (Hereinafter referred to as Hejun Company) was frozen. As
of the end of the reporting period 4.71 million shares of Miracle Automation and
11739102 shares of SDEC held by the Company were frozen.
Total 1202997837.25 --
VII. Investment analysis
1. Overall situation
□Applicable √Not applicable
2. The major equity investment obtained in the reporting period
□ Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
√ Applicable □Not applicable
In RMB
Book Cumulat
Account Current Profit Book
Variety Short value at ive fair Current
Code of Initial ing gain/los Current and loss value at Account
of form of the value purchas Capital
securitie investm measure s of fair sales in the the end ing
securitie securitie beginnin changes e Source
s ent cost ment value amount Reportin of the subject
s s g of the in amount
model changes g Period period
period equity
31无锡威孚高科技集团股份有限公司2021年年度报告全文
Domesti
Measure Trading
c and 199208 140395 132473 132473 153643 Own
600841 SDEC d by fair financial
foreign 000.00 956.00 52.00 52.00 308.00 funds
value asset
stocks
Domesti
Miracle Measure Trading
c and 693315 477123 660813 660813 113793 Own
002009 Automat d by fair financial
foreign 00.00 00.00 00.00 00.00 600.00 funds
ion value asset
stocks
Domesti
Guolian Measure Trading
c and 120000 326848 -11805 -11805 208795 Own
601456 Securitie d by fair financial
foreign 00.00 122.00 2944.00 2944.00 178.00 funds
s value asset
stocks
Domesti
Lifan Measure Trading
c and 62845.0 14957.1 62845.0 14957.1 77802.1 Own
601777 Technol d by fair financial
foreign 0 1 0 1 1 funds
ogy value asset
stocks
280602514956-3870962845.0-38709476309
Total -- 0.00 0.00 -- --
345.00378.00334.890334.89888.11
Disclosure date of 2012-03-24
securities investment
approval of the Board 2013-06-04
Disclosure date of
securities investment
approval by Shareholders’
general meeting (if any)
(2) Derivative investment
□ Applicable √ Not applicable
There are no derivative investment during the reporting period.
5. Application of raised proceeds
□ Applicable √ Not applicable
There are 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.
32无锡威孚高科技集团股份有限公司2021年年度报告全文
2. Sales of major equity
□ Applicable √ Not applicable
IX. Analysis of the main equity participation and controlling subsidiary
√ Applicable □ Not applicable
Main subsidiary and stock-jointly enterprise with over 10% influence on net profit of the Company
In RMB
Main Register Operating Operating
Company name Type Total assets Net assets Net profit
business capital revenue profit
After-treatm
502596300.585783851227803673652726856325034632.337097184.
WFLD Subsidiary ent system
008.402.744.438996
products
Fuel
management 346286825. 147588366 103367736 825822469. 101092828. 96549390.5
WFJN Subsidiary
system 80 8.40 0.12 06 20 4
products
Fuel
Equity
management USD382500 177783136 915499504 157128216 372031676 323791279
RBCD participation
system 000.00 37.38 4.54 56.32 0.31 7.87
enterprise
products
Equity Gasoline
Zhonglian 600620000. 689139142 688584259 24479957.3 170250843 169913464
participation system
Electronics 00 4.95 9.08 9 8.95 7.28
enterprise products
Subsidiary obtained and disposed in the Period
□ Applicable √ Not applicable
Explanation on holding equity participation enterprise
During the reporting period WFLD's operating profit and net profit grew better because of the increase in investment income from
the shareholding enterprise WFEC.X. The structured subject controlled by the Company
□ Applicable √ Not applicable
XI. Prospects for future development
i.Future development strategy
Based on the corporate vision of “Century Weifu Automotive Core Parts Industry Expert” during the “14thFive-Year Plan” period the Company will continue to adhere to the “international independentmulti-dimensional” strategic concept and accelerate the “two-engine drive” strategy of “optimizing andimproving existing core business breaking through and positioning strategic emerging business” form a new
strategic pattern of comprehensive development of four major sectors of “energy saving and emission reduction”
33无锡威孚高科技集团股份有限公司2021年年度报告全文
“green hydrogen energy” “intelligent electric” and “other core parts” and strive to achieve the strategic goal of
doubling the scale and maintaining high profitability.(i) As the Company’s existing core business segment energy saving and emission reduction includes three major
business areas i.e. high-pressure fuel management system after-treatment system and turbocharger positioning
new increments actively promoting business transformation and upgrading maintaining the leading position in
the industry and maintaining organic growth of businesses. Under the general trend of low-carbon and
energy-saving we will seize the strategic opportunity of upgrading emission regulations accelerate the market
expansion of related products such as ordinary hybrids and plug-in hybrids strengthen cooperation with joint
venture brands and new leading car manufacturers and further improve the market share of products; product
development focuses on the fuel oil after-treatment and turbocharging of high-efficiency energy-saving
(including plug-in hybrids) and clean alternative fuels (natural gas etc.) strengthen the research and development
capabilities of key technology products enhance forward engineering capabilities system integration and
application development capabilities; consolidate and improve process operation capabilities and improve cost
and quality control capabilities.(ii) Green hydrogen energy is an important strategic direction for the transformation of the Company’s business
structure it focuses on the core parts of hydrogen fuel cell and the hydrogen production from renewable energy
sources in the middle and upper reaches of the hydrogen energy industry chain to build core competitiveness and
achieve large-scale business growth.
1. The core parts business of hydrogen fuel cells will be based on the core materials of the galvanic pile
(membrane electrodes graphite bipolar plates metal bipolar plates) and the core technical capabilities of BOP key
components that have been acquired and constructed to accelerate the establishment and and operation of
organizational planning promote the construction of three global bases and realize small-scale market
application.* Enhance global engineering capabilities. Actively promote the construction of engineering centers in Asia
Pacific Europe and North America strengthen investment continuously improve the engineering technology
level especially the research and development and application of product technology and quickly realize the
mass production of customer market projects.* Expand global business functions. Accelerate the capacity building of business centers in Asia Pacific Europe
and North America strengthen the planning and coordination of global markets and operations realize strategic
resource sharing and efficient market synergistic expansion between centers and business segments actively
expand international and domestic customers continue to deepen the partnerships with strategic partners strategic
customers and major customers and promote large-scale applications in the market.* Improve global manufacturing capacity. Accelerate the capacity building of manufacturing centers in Asia
Pacific Europe and North America. During 2021-2025 the Company is going to achieve global production
capacity of 8 million membrane electrodes 9 million graphite bipolar plates 4 million metal bipolar plates and
100000 pieces of BOP key components among them Asia Pacific (China) is about to achieve a production
capacity of 4 million membrane electrodes 5 million graphite bipolar plates 2 million metal bipolar plates and
100000 pieces of BOP key components.
34无锡威孚高科技集团股份有限公司2021年年度报告全文
* Strengthen strategic coordination and resource integration. Based on the platform of the hydrogen energy
business unit strengthen the global business strategy synergy and resource integration. In particular regarding the
construction of the Asia-Pacific base we will integrate the business related to the core parts of hydrogen fuel cells
strengthen cooperation with various strategic partners and set up independent business companies to face the
Asia-Pacific market dominated by China and conduct product application development supply chain and
manufacturing. sales and service etc.
2. Renewable energy hydrogen production business will focus on cultivating and incubating PEM electrolysis of
water hydrogen production system equipment technology based on the Company’s current core component
technologies such as membrane electrodes and graphite/metal bipolar plates as well as the R&D testing and
verification capabilities of PEM electrolysis of water galvanic pile and achieve product market application.* Make efforts to implement the demonstration line project. Complete the first and second phases of the PEM
electrolysis of water hydrogen production demonstration line and obtain the overall scheme design and
implementation service capabilities of electrolysis of water hydrogen production.* Actively acquire key technical capabilities. Seek cooperation opportunities for external technology and
industrial investment accelerate independent research and development and build key technical capabilities such
as galvanic pile system equipment design development and integration. Form and incubate a batch of low-power
system equipment products in subdivided fields (hydrogen production field) and develop high-power system
equipment technologies and products suitable for energy storage and hydrogen refueling stations.* Expand market application projects. Vigorously expand the customer market strive to realize the application
of low-power system equipment to form a small-scale market application actively participate in large-scale
renewable energy hydrogen production demonstration projects and contact with domestic industry leaders to
explore cooperation opportunities.(iii) The intelligent electric sector focuses on four major business areas i.e. the core parts of the electric drive
system the thermal management system and core parts the intelliSense core modules and the in-cabin core parts
builds the core competitiveness of the market technology and intelligent manufacturing and achieves business
transformation development and large-scale growth.
1. Based on the understanding of the research and development on the automotive core parts system and the
high-end intelligent manufacturing capabilities the core parts business of the electric drive system expands the
core parts business of the electric drive and promotes the market scale and the Company makes advanced layout
of the forward-looking technology of the in-wheel motor comprehensively cultivates and incubates products to
achieve product market application.* The core parts of electric drive take the motor shaft water jacket end cap etc. as the starting point and expand
to other core parts enrich the product map and form the supply capacity of key products; based on a large number
of practical experience accumulated in cooperation with well-known domestic electric drive enterprises make
breakthroughs in key new energy vehicle enterprises especially high-end new forces establish in-depth strategic
cooperation and promote the diversified development of strategic customers.* Accelerate the product technology optimization of in-wheel motors realize penetration into the passenger car
scene promote the construction of set assembly capacity construction and form mass production capacity.
35无锡威孚高科技集团股份有限公司2021年年度报告全文
2. The thermal management system and core parts business take the electronic oil pump as the entry point rely on
the Company’s group-based technology market and manufacturing platform advantages fully promote the
research and development and application of key components such as battery cooling plates heat exchangers as
well as the strategic products of thermal management system and further actively seek the development in other
application scenarios such as energy storage.* Achieve breakthroughs in high-end customers and have in-depth strategic cooperation with customers. Utilize
the VH overseas technology and product accumulation acquired by the Company actively penetrate into the
domestic and European mature mainstream high-end customers complete technical verification and form the first
batch of product supply; actively develop global customer resources such as OEMs and electric drive system
integrators with self-developed electric drive/thermal management systems aggregate channel resource
integration capabilities and break through key strategic customers.* Synchronize global R&D and actively expand product business. Promote global resource planning and layout
build global synchronous R&D capabilities realize global synchronous R&D collaboration further expand
product series actively carry out the development and supply capabilities of core parts of thermal management
system-level solutions and expand products such as water-cooled plates and heat exchangers.* Enhance the global supply capacity for mass production. Strengthen the capacity building of global supply
chain systems in Europe and China integrate the Company’s intelligent manufacturing genes and achieve
large-scale production and supply capabilities.
3. IntelliSense core module
In the intelliSense core module business the Company strategically focuses on millimeter-wave radar provides
customized radar module products and sense solutions starts from basic scenarios cultivates capabilities and
aims at the high-end application market for automatic driving.* Expand multi-scenario applications and gradually develop to high-end applications. Take the lead in entering
the non-vehicle radar field expand the radar application in the smart cockpit field synchronously quickly realize
the market application of 3D radar products and take the vehicle ADAS 3D radar as an opportunity to gradually
enter the in-vehicle market and accumulate vehicle-mounted scene technology and penetrate into the
vehicle-mounted automatic driving application scenarios with the maturity of 4D radar technology.* Technological accumulation capabilities pave the way for technological breakthroughs in high-end products.Strengthen the key technologies and R&D capabilities of millimeter-wave radars establish large-scale production
capacity of 3D radars for ADAS at the same time speed up the research and development progress of 4D radar
products make technological breakthroughs in high-end products and gradually realize the commercialization of
ADAS 4D radars.
4. Core parts in the cabin
The core parts business in the cabin forms a differentiated competitive advantage with high-performance
high-quality and cost-effective products among which the car seat is the first to enter the mid-to-high-end
commercial vehicle market accelerates the realization of industrial scale development and moves towards the
mid-to-high-end passenger car market; it establishes the systematic design and testing capabilities of seat products
enhances the technological innovation capabilities and develops towards networking and intelligence to meet the
36无锡威孚高科技集团股份有限公司2021年年度报告全文
needs of intelligent cockpit scenarios. At the same time with the help of cooperation with intelligent cockpit
partners the Company will participate in the intelligent cockpit business field based on domain control technology
and strive to seek and expand business opportunities related to intelligent cockpits.(iv) For other core parts and components the Company will continue to promote the transformation and
upgrading of hydraulic systems and core parts core parts of brake systems intelligent manufacturing equipment
and aftermarket and trade businesses and actively explore and lay out the cutting-edge technologies and markets
in line with the Company’s development strategy to increase the business volume.The Company will continue to deepen the business plan budget management and performance management
system under the guidance of the strategy implement differentiated management and control make efficient
business coordination among sectors accelerate the cultivation of strategic core talents comprehensively enhance
the operation and management capabilities during the strategic transformation period and adapt to the Company’s
medium and long-term strategic development needs.ii. Key work in 2022
In the face of the changeable and severe macro economy and automobile market development trends in 2022 the
Company will still closely follow the “14th Five-Year Plan” development goals make the industry more refined
and stronger deepen and develop new businesses and improve the Company’s market position in automotive
core components. The Company’s operating guidelines in 2022 are aiming at strategic goals improving business
quality consolidating management system accelerating the implementation of new businesses and ensuring the
realization of the second annual goal of the “14th Five-Year” strategic plan.
1. Thoroughly implement strategic guidance and promote industrial investment distribution
Focus on strategic goals such as market share and profitability of high-efficiency internal combustion power
business and strengthen dynamic research and planning for strategic new businesses. Comprehensively refine and
implement the capacity planning of three major global bases of the hydrogen energy business and accelerate the
establishment and operation of the Asia-Pacific (China) base; actively promote the operation of the electrolysis of
water hydrogen production demonstration line; actively explore the mechanism innovation for smart electric and
other businesses. Steadily promote the investment and construction of hydrogen energy business and at the same
time plan and promote the investment in the Company’s new major potential strategic business product
technology and the cooperation projects at a high level; actively explore new models of industrial fund investment
and gradually expand external investment cooperation.
2. Steadily improve the existing business market and accelerate the expansion of new business and new markets.
Steadily increase the market share of strategic business and strategic customers expand and promote the
successful batch production of strategic market projects such as National VI and T4 and win the corresponding
market position. Fuel injection system: ensure the order delivery rate and market share of the common rail pump;
ensure the market share of dispensing pump and promote the export projects of dispensing pump; ensure the
supply to existing customers and obtain key projects from key customers for GP electronic control products;
continue to improve the market share of high-pressure fuel rail and develop new markets. After-treatment system:
accelerate the layout of independent high-end brand customers at passenger car market; focus on promoting the
37无锡威孚高科技集团股份有限公司2021年年度报告全文
development of National VI projects for leading customers at the commercial vehicle market;actively acquire the
assembly projects of leading companies at the hybrid market and expand product coverage; ensure the smooth
operation of projects at the non-road market. Air intake system: gradually expand the market scale of gasoline
supercharger for the four-cylinder supercharger; stabilize the existing customers of six-cylinder supercharger and
ensure the batch production of new customer projects.Accelerate the acquisition of new business leading customer market projects and continue to promote new
business cooperation with strategic partners; actively develop high-end precision manufacturing and casting
business markets for new energy parts; actively promote mass production of core parts for galvanic pile and
strengthen the establishment of strategic cooperation with domestic customers and actively obtain the product
project of “one membrane and two plates”; promote the industrialization of hydrogen fuel cell parts and
components realize the small batch production of platinum carbon catalyst products and complete the
construction of domestic pilot lines for platinum alloy catalyst and membrane electrode products; achieve mass
production and delivery for existing security radar products and expand new customers and complete verification
and delivery for 3D radar products and achieve strategic customer project product development for 4D
millimeter-wave radar products.
3. Strengthen quality management and intelligent manufacturing and promote engineering construction and safety
guarantee.Plan the blueprint of the Company’s quality management information system deepen the implementation of the
Q11 quality basic standards and continue to strengthen physical quality management. Promote the special
improvement of maturity evaluation consolidate the maturity evaluation mechanism of all elements of the process
and strengthen the maturity of product quality life cycle management. Import positive development quality tools
and implement the application and improvement of quality valves and quality management systems in developing
projects. Go deep into the continuous improvement and on-site management and deepen the effective application
of system improvement methods. Optimize the WPS maturity assessment model and build workshop
benchmarking teams of each business division. Further improve the equipment operation management system
thoroughly promote the in-depth maintenance work of equipment establish equipment maintenance knowledge
base and improve equipment operation efficiency. Accelerate the full implementation of the Company’s I-WPS
system realize the launch of the PLM and MES systems of related business divisions and do a good job in the
construction and launch of the PLM process module. Promote the application of 5G+ innovation laboratory
technology in the business divisions.Orderly promote the Company’s R&D building construction project complete the preliminary planning and
preliminary design of the new energy industry base and do a good job in the promotion of the logistics warehouse
and other projects of Weifu Industrial Park. Complete the ISO50001 energy management system construction and
promote the implementation of the compressed air system energy-saving plan. Focus on preventive management
implement the main responsibility of EHS and strengthen the process risk identification and control. Through the
EHS information supervision platform form the ability of intelligent EHS management and monitoring
convenient handling of hidden dangers integrated process files and automatic external data exchange.Introduce S-FMEA carry out special rectification of dual control in key areas and improve intrinsic safety. Carry
38无锡威孚高科技集团股份有限公司2021年年度报告全文
out the re-examination and certification of the first-class enterprise of safety production standardization and
improve the management level of safety production.
4. Continuously promote management upgrades and steadily improve operational efficiency.
Consolidate and elaborately operate the operation and management system deepen the operation monitoring and
rectification of the Company and business divisions and promote the closed-loop management of the long-term
operation mechanism of the process; implement hierarchical management and control of projects strengthen
cross-organizational coordination of projects and promote project management upgrading of the Group.Continue to optimize shared management optimize the integration process of enterprise finance and taxation;
build a comprehensive budget management system and create a closed management loop; further promote cost
standardization and refined management continue to improve the quality and efficiency of asset operations and
optimize wealth management structure. Complete the second-stage planning and adjustment of the Company’s
procurement organization reform; realize the process unification standardization and information sharing of direct
material procurement business; realize integrated procurement supply chain management continuously optimize
the process and supplier assessment indicators and realize supplier classification management and resources
integration. Do a good job in the overall planning of warehousing transportation and logistics improve the supply
and demand plan coordination and the in-depth inventory analysis increase effective delivery and reduce
inventory. Plan the logistics visualization tap the value of logistics data and guide logistics improvement.Promote the optimization and upgrading of SAP implement the process sub-module project and realize the
standardization and integration of process management. Promote the group’s promotion of various modules of
intelligent manufacturing pay attention to the implementation of logistics and warehousing business processes
and the comprehensive promotion of core production and manufacturing modules promote the construction and
operation of 5G+ innovation laboratories and promote the implementation of intelligent application scenarios.
5. Strengthen the construction of talent team to promote the sustainable development of the Company.
Accelerate talent recruitment and training promote talent sharing and optimize the deployment of technical
personnel of core businesses. Consolidate the foundation of talent management promote the construction and
application of capability models focus on the cultivation of talents in professional fields strengthen the
development of human resources and continue to promote the talent development project of “San Hang Yi Jiang”.Optimize the incentive model explore and pilot a more competitive incentive mechanism for new businesses. For
the research and development field implement the project-based incentive model to promote the improvement of
project management. Based on the human resources information system platform deeply analyze the group’s
human resources data explore the human resources service sharing mechanism try to implement the internal
recruitment and salary settlement sharing in the group and improve the efficiency of human resources services.iii.Risks and countermeasures
1. Macro economy and market risks
Affected by the COVID-19 epidemic the macro economy and market environment are still complicated and
severe and the industry will still face greater pressure. If industry demand declines it will have a certain impact
on the company's production and operation and profitability.Countermeasures: The company will always pay attention to macroeconomic and industry development trends
39无锡威孚高科技集团股份有限公司2021年年度报告全文
consolidate its current business market position actively expand new businesses and strive to improve the
company's core competitiveness and overall risk resistance.
2. Operating management and risks controlling
As the company’s business scope continues to expand especially in the new energy field the management span is
rather large and there are potential operating management and investment risks.The external environment was
affected by the epidemic the varying affected degree of customers and sales declines restrictions on logistics and
transportation areas delayed payment by some customers and increased pressure on fund quality and repayment
has brought certain risks to the company’s business.Countermeasures: the company will continue to promote the optimization and improvement of internal
management perfect the procedures further manage standardization and control the management risks; focus on
the impact of market dynamics on the Company; continue to develop strategy customers and gradually strengthen
the new business market connection and new new products promotion.
3. The risks of fluctuations in raw material prices
The Company's main raw materials include various grades of steel aluminum precious metals etc. the continuous
rise in prices will bring the risks of rising costs to the Company.Countermeasures: The Company will actively take measures such as improving market forecasting capabilities
planning production capacity in advance and reasonably controlling raw material inventories to reduce the risk of
price fluctuations in raw materials. At the same time the Company will continue to optimize supply chain
management strengthen vertical integration capabilities of the industrial chain and transfer some risks through
cost control measures and product price adjustments so as to reduce the impact of raw material price fluctuations
on performance.
4. Risks associated with financial instruments
The Company's main financial instruments include monetary funds structured deposits receivables equity
instrument investments wealth management products loans payable etc. In the operation process the risks
related to financial instruments faced by the company mainly include credit risk market risk and liquidity risk.Countermeasures: confirm and analyze the various risks faced by the Company establish an appropriate risk
tolerance bottom line and carry out risk management and timely monitor various risks to ensure that the risks are
controlled within a limited range and the negative impact of the risks on the company’s operating performance is
reduced to the minimum level to maximize the interests of shareholders and other investors.XII. Reception of research communication and interview during the reporting period
√ Applicable □ Not applicable
Basic situation
Reception Reception Main content and information
Time Way Object index of
location type provided
investigation
Institution and Found more in the Investor
Conference
Spot individual investors Relations Activity Record http://www.cninfo.
2021-07-02 room of the Institution
research organized by (No.: 2021-001) released on com.cn
Company
Shanghai Securities Juchao Website
40无锡威孚高科技集团股份有限公司2021年年度报告全文
Found more in the Investor
Conference
Spot Institutional Relations Activity Record http://www.cninfo.
2021-07-20 room of the Institution
research investors (No.: 2021-002) released on com.cn
Company
Juchao Website
Found more in the Investor
Conference
Institutional Relations Activity Record http://www.cninfo.
2021-08-24 room of the Telephoning Institution
investors (No.: 2021-003) released on com.cn
Company
Juchao Website
Answered 330
Interactive questions online
Fundamentals of the
Jan. 1 2021- platform for Written through the
Other Other Company and views on the
Dec. 31 investor inquiries interactive platform
market
relations for investor
relations
Fundamentals of the 535 telephone
Jan. 1 2021- Company’s
Telephoning Other Other Company and views on the communications
Dec. 31 phone
market with the investors
41无锡威孚高科技集团股份有限公司2021年年度报告全文
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 Company Law Securities Law Code of Governance for
Listed Companies Rules Governing the Listing of Stock on Shenzhen Stock Exchange and Guidance on Standard
Operation of Listed Company on Shenzhen Stock Exchange continued to improve and enhance legal person
governance structure and internal control system thus to standardize its operation.The actual status of corporate
governance in accordance with the requirements of China Securities Regulatory Commission regulatory
documents related to listing Corporation.The Company has established a series of document systems for standardized management including the Rules of
Procedure of three committees Working Rules internal control system Evaluation Management System of
Internal Control Information Disclosure Management Approach Financial Decision-making System of
Significant Investment Related Party Transaction Management System and Inside Information and Insider
Management System.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 great decisions and
take 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 board of directors and take responsible for the board of directors; the company’s board of
supervisors is the company’s supervisory body takes responsible for behaviors of the directors and senior
management and the supervise the company’s financial affairs. The board of directors 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.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 and the Independent Director
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. Independent directors have no objections on relevant matters
of the Company.The Company further implements the Basic Norms of Enterprise Internal Control and its guidelines constructs
42无锡威孚高科技集团股份有限公司2021年年度报告全文
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 2021 Internal Control Evaluation Report on
www.cninfo.com.cn which is the information disclosure website designated by Shenzhen Stock Exchange.Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance for
listed company from CSRC?
□ 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 stockholders' 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.III. Horizontal competition
□ Applicable √ Not applicable
IV. In the report period the Company held annual shareholders’ general meeting and
extraordinary shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
43无锡威孚高科技集团股份有限公司2021年年度报告全文
Ordinal number of the
Ratio of investor Date of
shareholders’ general Type Date Resolution of the Meeting
participation disclosure
meeting
Annual General (Notice No.: 2021-024) published on
AGM 45.88% 2021-05-20 2021-05-21
Meeting of 2020 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 Reasons
Shares Shares
of shares of shares for
Worki Start dated held at Other held at
End date of increased decrease increase
Name Title ng Sex Age of office period-b changes period-e
office term in this d in this or
status term egin (share) nd
period period decrease
(Share) (Share)
(Share) (Share) of shares
Curren
Wang
Chairman tly in Male 55 2020-05-28 2024-05-19 420781 420781
Xiaodong
office
Curren
Kirsch Vice
tly in Male 60 2021-05-20 2024-05-19
Christoph Chairman
office
Vice Curren
Xu
Chairman tly in Male 50 2020-05-28 2024-05-19 363000 363000
Yunfeng
GM office
Director
Executive
Deputy
Curren
General
Ou Jianbin tly in Male 55 2012-03-07 2024-05-19 290000 290000
Manager
office
and
financing
Charger
Curren
Chen
Director tly in Male 60 2012-03-07 2024-05-19
Yudong
office
Curren
Fe
Zhao Hong Director tly in 40 2021-05-20 2024-05-19
male
office
Curren
Huang Rui Director tly in Male 37 2021-05-20 2024-05-19
office
Curren
Independent Fe
Yu Xiaoli tly in 58 2018-06-27 2024-05-19
Director male
office
Curren
Independent
Xing Min tly in Male 67 2021-05-20 2024-05-19
Director
office
Curren
Feng Independent Fe
tly in 48 2021-05-20 2024-05-19
Kaiyan Director male
office
Pan Independent Curren
Male 50 2021-05-20 2024-05-19
Xinggao Director tly in
44无锡威孚高科技集团股份有限公司2021年年度报告全文
office
Chairman of
Curren
Ma the
tly in Male 47 2021-05-20 2024-05-19
Yuzhou Supervisory
office
Committee
Curren
Chen Ran Supervisor tly in Male 49 2020-05-28 2024-05-19 1000 1000
office
Curren
Liu Fe
Supervisor tly in 36 2021-05-20 2024-05-19
Songxue male
office
Curren
Miao
Deputy GM tly in Male 58 2003-04-16 2024-05-19 290000 290000
Yuming
office
Curren
Xu Sheng Deputy GM tly in Male 47 2020-05-28 2024-05-19 280000 280000
office
Curren
Rong Bin Deputy GM tly in Male 46 2020-05-28 2024-05-19 280000 280000
office
Deputy GM
Curren
and
Liu Jinjun tly in Male 46 2020-05-28 2024-05-19 280000 280000
Secretary of
office
the Board
Curren
Chief
Li Gang tly in Male 51 2020-05-28 2024-05-19 280000 280000
engineer
office
Rudolf Vice Leave
Male 64 2012-03-07 2021-05-20
Maier Chairman office
Zhang Leave
Director Male 58 2015-05-28 2021-05-20
Xiaogeng office
Hua Leave Fe
Director 57 2012-03-07 2021-05-20
Wanrong office male
Lou Independent Leave
Male 58 2015-05-28 2021-05-20
Diming Director office
Jin Independent Leave
Male 71 2015-05-28 2021-05-20
Zhangluo Director office
Xu Independent Leave
Male 58 2015-05-28 2021-05-20
Xiaofang Director office
Chairman of
Shi Xing the Leave
Male 59 2012-03-07 2021-05-20 12673 12673
yuan Supervisory office
Committee
Zhou Secretary of Leave
Male 58 2005-06-09 2021-05-20 123565 123565
Weixing the Board office
262101262101
Total -- -- -- -- -- -- 0 0 0 --
99
During the reporting period whether there was any departure of directors and supervisors and dismissal of Senior Executives
□Yes √No
Changes of directors supervisors and senior executives
√Applicable □ Not applicable
Name Position Type Date Cause
Kirsch Christoph Vice Chairman Be elected 2021-05-20 Be elected
Zhao Hong Director Be elected 2021-05-20 Be elected
Huang Rui Director Be elected 2021-05-20 Be elected
Xing Min Independent Director Be elected 2021-05-20 Be elected
Feng Kaiyan Independent Director Be elected 2021-05-20 Be elected
Pan Xinggao Independent Director Be elected 2021-05-20 Be elected
Ma Yuzhou Chairman of the Supervisory Committee Be elected 2021-05-20 Be elected
45无锡威孚高科技集团股份有限公司2021年年度报告全文
Liu Songxue Supervisor Be elected 2021-05-20 Be elected
Leaving at the
Leaving at the end of the
Rudolf Maier Vice Chairman end of the 2021-05-20
term of office
term of office
Leaving at the
Leaving at the end of the
Zhang Xiaogeng Director end of the 2021-05-20
term of office
term of office
Leaving at the
Leaving at the end of the
Hua Wanrong Director end of the 2021-05-20
term of office
term of office
Leaving at the
Leaving at the end of the
Lou Diming Independent Director end of the 2021-05-20
term of office
term of office
Leaving at the
Leaving at the end of the
Jin Zhangluo Independent Director end of the 2021-05-20
term of office
term of office
Leaving at the
Leaving at the end of the
Xu Xiaofang Independent Director end of the 2021-05-20
term of office
term of office
Leaving at the
Leaving at the end of the
Shi Xing yuan Chairman of the Supervisory Committee end of the 2021-05-20
term of office
term of office
Leaving at the
Leaving at the end of the
Zhou Weixing Secretary of the Board end of the 2021-05-20
term of office
term of office
2. Post-holding
Professional background major working experience and present main responsibilities in Company of directors
supervisors and senior executive
Mr. Wang Xiaodong was born in November 1966 Chinese nationality and no permanent residence abroad member of
the CPC a university graduate MBA and full senior engineer. He previously served as the engineer director and
deputy chief engineer in technology center of the Company sales director deputy GM of RBCD Supervisor of
the company vice chairman and GM of the Company. Currently serves as Chairman and Party Secretary of the
Company.Mr. Kirsch Christoph was born in October 1961 German nationality Master’s degree. He previously served as
R&D engineer product manager and key account sales maneger 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
46无锡威孚高科技集团股份有限公司2021年年度报告全文
solution business division of RBCD. Currently he serves as executive vice president representing the Bosch
Automotive and Intelligent Mobility Asia Pacific Board and Vice Chairman of the Company.Mr. Xu Yunfeng born in November 1971 Chinese nationality and no permanent residence abroad member of the
CPC a university graduate and an engineer and holds a master's degree. He worked as a test engineer and design
team leader in technical center of the Company assistant of the oil pump & nozzle research institute of the
technical center deputy director of the product research institute of technical center the technical sales manager
GM assistant and GM of the Wuxi Weifu Automobile Diesel System Co. ltd and deputy GM of the Company. He
currently serves as Vice Chairman and GM of the Company and deputy secretary of the party committee of the
Company.Mr. Ou Jianbin born in June 1966 Chinese nationality and no permanent residence abroad member of the CPC a
senior college graduated and an accountant. Previously served as Deputy Minister of Financial Department of
Weifu Company Director and deputy GM of subsidiary WFJN Deputy GM and GM of subsidiary WFLD and
supervisor of the Company. Currently he serves as director and standing deputy GM as well as chief of the
financial of the Company.Mr. Chen Yudong was born in September 1961 an America citizenship and a Doctor. He previously served as
senior vice president of the gasoline system division of Robert Bosch Group executive vice president of Bosch
(China) Investment Ltd. Now he serves as President of Bosch (China) Investment Ltd. and Director of the
Company.Ms. Zhao Hong born in September 1981 Chinese nationality and no permanent residence abroad member of the
CPC Bachelor’s degree an accountant. She worked as an account in Wuxi Tianyi Membrane Technology
Application Equipment Factory the project auditor of Wuxi Founder Taxation Firm the deputy director of audit
and inspection department director deputy secretary of discipline inspection commission secretary of director
bureau and chief of staff in Wuxi Industry Development Group Co. Ltd. Now she is the secretary to the BOD and
chief operating officer of Wuxi Industry Development Group Co. Ltd and the 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 Director of the Company.Ms. Yu Xiaoli born in January 1963 Chinese nationality and no permanent residence abroad member of the CPC
Ph.D. a professor she has been teaching at Zhejiang University since 1985. She served as an independent director
of the sixth seventh and ninth of the Board of the Company and the dean of the engineering branch of Zhejiang
University City College. She is currently a professor at Zhejiang University and Doctoral supervisor the chairman
of the Society of Automotive Engineers of Zhejiang an director of Zhejiang Bozhong Automobile Technology Co.Ltd. and independent director of Zhejiang Yinlun Co. Ltd an independent director of Zhejiang EVTECH Co.
47无锡威孚高科技集团股份有限公司2021年年度报告全文
Ltd.and independent director of Zhejiang Fenglong Electric Co. Ltd. and the independent director of the
Company.Mr. Xing Min born in January 1954 Chinese nationality and no permanent residence abroad member of the CPC
Bachelor’s degree a professor-level senior engineer. He worked as the secretary of the Party Committee of China
Heavy Machinery Corporation secretary of the Party Committee and GM of China Machine Tool Corporation.Now he is the executive vice president and secretary general of China Internal Combustion Engine Industry
Association Independent Director of Zhejiang Zhongjian Technology Co. Ltd Independent Director of Jiangsu
Yunyi Electric Co. Ltd. Independent Director of Changchai Company Limited Independent Director of Zhejiang
Xinchai Co. Ltd Director of Anhui Aikelan Environmental Protection Co. Ltd and 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 responsible person of the Sunan Branch
Jiangsu Fuhua Engineering Cost Consulting Co. Ltd the independent director of Wuxi Weifeng Technology Co.Ltd independent director of yuancheng Cable Co. Ltd independent director of Kangdexin Composite Material
Group Co. Ltd the external director of Wuxi Urban Construction Development Group Co. Ltd and 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. 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 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. Chen Ran born in December 1972 Chinese nationality and no permanent residence abroad member of the CPC
a Bachelor’s degree and a senior human resource manager. He once served as deputy director of the company’s
management department deputy director of the investment and audit department director of human resources
department deputy director of the party and mass department deputy director of administration department
deputy director of engineering procurement department director of the company’s party and mass department and
director of the disciplinary inspection and supervision department. He is currently a director of the Company's
48无锡威孚高科技集团股份有限公司2021年年度报告全文
organization and personnel department and supervisor of the Company.Ms. Liu Songxue born in July 1985 Chinese nationality and no permanent residence abroad member of the CPC a
Bachelor’s degree and an 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. Miao Yuming born in April 1963 Chinese nationality and no permanent residence abroad member of the CPC
Master’s Degree and senior engineer. He previously served as deputy director and director of sales department and
assistant GM and deputy GM of the Company. Currently he serves as deputy GM of the Company deputy GM of
RBCD.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 is an 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. 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. 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 shareholder’s unit
49无锡威孚高科技集团股份有限公司2021年年度报告全文
√ Applicable □ Not applicable
Received
End date
Start dated of remuneration from
Name Name of shareholder’s unit Position in shareholder’s unit n of office
office term shareholder’s unit
term
(Y/N)
Executive vice president representing
Kirsch
ROBERT BOSCH GMBH the Bosch Automotive and Intelligent 2021-04-01 Y
Christoph
Mobility Asia Pacific Board
Bosch (China) Investment
Chen Yudong President 2011-01-01 Y
Ltd.Wuxi Industry Development Secretary of director bureau chief
Zhao Hong 2021-04-19 Y
Group Co. Ltd. operating officer
Wuxi Industry Development
Huang Rui GM of Investment Banking Dept. 2021-05-01 Y
Group Co. Ltd.Robert Bosch Powertrain
Miao Yuming Deputy GM 2012-03-01 Y
Ltd.Post-holding in other unit
√ Applicable □ Not applicable
Received
End date
Start dated of remuneration
Name Name of other units Position in other unit of office
office term from other unit
term
(Y/N)
Yu Xiaoli Zhejiang University Teacher and professor 1985-08-01 Y
Society of Automotive Engineers of
Yu Xiaoli Director 2015-06-01 N
Zhejiang
Zhejiang Bozhong Automobile Technology
Yu Xiaoli Director 2008-04-01 N
Co. Ltd
Yu Xiaoli Zhejiang Fenglong Electric Co. Ltd. Independent Director 2016-04-01 Y
Yu Xiaoli Zhejiang EVTECH Co. Ltd Independent Director 2016-06-01 Y
Yu Xiaoli Zhejiang Yinlun Co. Ltd Independent Director 2020-08-06 Y
China Internal Combustion Engine Industry Executive vice president and
Xing Min 2008-08-01 Y
Association secretary general
Xing Min Jiangsu Yunyi Electric Co. Ltd Independent Director 2019-07-31 Y
Xing Min Zhejiang Zhongjian Technology Co. Ltd Independent Director 2017-06-20 Y
Xing Min Zhejiang Xinchai Co. Ltd Independent Director 2019-12-06 Y
Xing Min Changchai Company Limited Independent Director 2020-04-16 Y
Anhui Aikelan Environmental Protection
Xing Min Director 2021-11-22 Y
Co. Ltd
Feng
Wuxi Donghua Accounting Firms Co. Ltd Chief accountant 1998-10-01 Y
Kaiyan
Feng Jiangsu Fuhua Engineering Cost Consulting
Responsible person 2020-07-16 Y
Kaiyan Co. Ltd - Sunan Branch
50无锡威孚高科技集团股份有限公司2021年年度报告全文
Feng
Wuxi Weifeng Technology Co. Ltd Independent Director 2017-12-28 Y
Kaiyan
Feng
yuancheng Cable Co. Ltd. Independent Director 2019-11-22 Y
Kaiyan
Feng Kangdexin Composite Material Group Co.Independent Director 2020-08-26 Y
Kaiyan Ltd
Feng Wuxi Urban Construction Development
External Director 2021-12-31 Y
Kaiyan Group Co. Ltd
Pan
Beijing Tongshang Law Firm Lawyer/ Partner 2007-10-01 Y
Xinggao
Pan
Huarui Traffic Technology Co. Ltd Independent Director 2022-02-26 Y
Xinggao
Explanatio
n on
post-holdi The aforesaid are the independent directors of the Company
ng in other
unit
Punishment of securities regulatory authority in recent three years to the company’s current and outgoing directors supervisors and
senior management during the reporting period
□ Applicable √ Not applicable
3. Remuneration for directors supervisors and senior executives
Decision-making procedures recognition basis and payment for directors supervisors and senior executives
1. Decision-making procedure: the remuneration committee of the Board shall make proposals according to completion status of 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 management who receive remuneration from the
Company is determined based on the Annual Operating Results Assessment Measures of Senior Management and Remuneration
Management Rules of Senior Management as approved at the shareholders’ general meetings. Allowance for independent directors
of the Company is determined by shareholders’ general meeting which is set at 15000 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 management 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 for directors supervisors and senior executives in reporting period
In 10000 yuan
Whether
Total
remuneration
remuneration
obtained from
Name Title Sex Age Post-holding status obtained from the
related party of
Company (before
the Company
taxes)
(Y/N)
Wang Xiaodong Chairman Male 55 Currently in office 449 N
51无锡威孚高科技集团股份有限公司2021年年度报告全文
Kirsch Christoph Vice Chairman Male 60 Currently in office Y
Xu Yunfeng Vice Chairman、GM Male 50 Currently in office 383 N
Director Executive Deputy
Ou Jianbin General Manager and Male 55 Currently in office 328 N
financing Charger
Chen Yudong Director Male 60 Currently in office Y
Zhao Hong Director Female 40 Currently in office Y
Huang Rui Director Male 37 Currently in office Y
Yu Xiaoli Independent Director Female 58 Currently in office 14.1 N
Xing Min Independent Director Male 67 Currently in office 10 N
Feng Kaiyan Independent Director Female 48 Currently in office 10 N
Pan Xinggao Independent Director Male 50 Currently in office 10 N
Chairman of the Supervisory
Ma Yuzhou Male 47 Currently in office 192 N
Committee
Chen Ran Supervisor Male 49 Currently in office 72 N
Liu Songxue Supervisor Female 36 Currently in office 16 N
Miao Yuming Deputy GM Male 58 Currently in office Y
Xu Sheng Deputy GM Male 47 Currently in office 192 N
Rong Bin Deputy GM Male 46 Currently in office 192 N
Deputy GM Secretary of the
Liu Jinjun Male 46 Currently in office 192 N
Board
Li Gang Chief engineer Male 51 Currently in office 192 N
Rudolf Maier Vice Chairman Male 64 Leave office Y
Zhang Xiaogeng Director Male 58 Leave office Y
Hua Wanrong Director Female 57 Leave office Y
Lou Diming Independent Director Male 58 Leave office 4.1 N
Jin Zhangluo Independent Director Male 71 Leave office 4.1 N
Xu Xiaofang Independent Director Male 58 Leave office 4.1 N
Chairman of the Supervisory
Shi Xing yuan Male 59 Leave office 328 N
Committee
Zhou Weixing Secretary of the Board Male 58 Leave office 81 N
Total -- -- -- -- 2673.4 --
VI. Responsibility performance of directors during the reporting period
1. The board of directors during the reporting period
Session of meeting Date of meeting Disclosure date Meeting resolutions
The Notice of the Resolution of 22nd Session of 9th
The 22nd Session of 9th BOD 2021-02-26 2021-03-02 BOD (Notice No.: 2021-001) published on Juchao
Website (www.cninfo.com.cn)
The Notice of the Resolution of 23rd Session of 9th
The 23rd Session of 9th BOD 2021-04-16 2021-04-20 BOD (Notice No.: 2021-006) published on Juchao
Website (www.cninfo.com.cn)
The Notice of the Resolution of 24th Session of 9th
The 24th Session of 9th BOD 2021-04-23 BOD (announcement-free according to relevant
regulations)
The Notice of the Resolution of 1st Session of 10th
The 1st Session of 10th BOD 2021-05-20 2021-05-21 BOD (Notice No.: 2021-025) published on Juchao
Website (www.cninfo.com.cn)
The Notice of the Resolution of 2nd Session of 10th
The 2nd Session of 10th BOD 2021-06-18 2021-06-19 BOD (Notice No.: 2021-028) published on Juchao
Website (www.cninfo.com.cn)
The Notice of the Resolution of 3rd Session of 10th
The 3rd Session of 10th BOD 2021-08-20 BOD (announcement-free according to relevant
regulations)
The Notice of the Resolution of 4th Session of 10th
The 4th Session of 10th BOD 2021-09-17 2021-09-18 BOD (Notice No.: 2021-035) published on Juchao
Website (www.cninfo.com.cn)
The Notice of the Resolution of 5th Session of 10th
The 5th Session of 10th BOD 2021-10-22 2021-10-26 BOD (Notice No.: 2021-038) published on Juchao
Website (www.cninfo.com.cn)
52无锡威孚高科技集团股份有限公司2021年年度报告全文
2. The attending of directors to Board meetings and shareholders general meeting
The attending of directors to Board Meeting and Shareholders General Meeting
Times of
Times of Absent the
attending the Times of
Board meeting Times of Meeting for
Times of Board Meeting Times of attend the
Director supposed to entrusted the second
Presence by Absence general
attend in the presence time in a row
communicatio meeting
report period (Y/N)
n
Wang Xiaodong 8 2 6 N 1
Kirsch Christoph 5 5 N 1
Xu Yunfeng 8 2 6 N 1
Ou Jianbin 8 2 6 N 1
Chen Yudong 8 8 N 1
Zhao Hong 5 1 4 N 1
Huang Rui 5 1 4 N 1
Yu Xiaoli 8 2 6 N 1
Xing Min 5 1 4 N 1
Feng Kaiyan 5 1 4 N 1
Pan Xinggao 5 1 4 N 1
Rudolf Maier 3 3 N 0
Zhang Xiaogeng 3 1 2 N 0
Hua Wanrong 3 1 2 N 0
Lou Diming 3 1 2 N 0
Jin Zhangluo 3 1 2 N 0
Xu Xiaofang 3 1 2 N 0
Explanation of absent the Board Meeting for the second time in a row
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 Rules of Procedure for the Board of Directors 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 and promote the implementation of the resolutions of the board of directors ensure scientific timely and efficient
decision-making and maintain the legitimate rights and interests of the Company and all shareholders.
53无锡威孚高科技集团股份有限公司2021年年度报告全文
VII. The special committees under the BOD during the reporting period
Specific
Othe
Num circumst
r
ber ances of
perfo
Committee of Important comments and the
Members Date of Meeting content rman
name meet suggestions made objection
meeting ce of
ings (if
dutie
held applicabl
s
e)
Strategy Committee verified and
Wang Xiaodong deliberated on the matters strictly in
The 9th
Consideration of the
Rudolf Maier terms of the Rules of Work of
Strategic Vision of the
Strategy Chen Yudong 1 2021-04-16 Strategy Committee of the Board N/A N/A
Company’s Future
Committee Yu Xiaoli and and relevant laws and regulations
Development
Lou Diming relevant proposals are unanimously
agreed.Consideration of the
(1)Annual Report of 2020
(full-text) and Summary
of Annual Report 2020;
(2)Financial Report of
2020; (3)Proposal
Regarding the Actual
Amount of Some Routine
Related Transactions in
2020 Exceeds the
Estimated Amount;
(4)Summary Report of
Audit Work for year of
2020; (5) Proposal on Audit Committee verified and
Estimating the Total deliberated on the matters strictly in
Jin Zhangluo
The 9th Amount of Routine terms of the Rules of Work of Audit
Xu Xiaofang
Audit 1 2021-04-16 Related Transactions in Committee of the Board and N/A N/A
and Hua
Committee 2021; (6) Proposal to relevant laws and regulations
Wanrong
Revise the Financial relevant proposals are unanimously
Management System of agreed.Funds; (7) Proposal on
Entrusted Wealth
Management with Idle
Own-Funds of the
Company; (8) Proposal on
Appointment of the
Auditing Institution for
2021 Financial Report;
and (9) Proposal on
Appointment of Auditing
Institution for 2021
Internal Control
Evaluation
Audit Committee verified and
Consideration of the deliberated on the matters strictly in
Semi-Annual Report of terms of the Rules of Work of Audit
2021-08-20 2021 (full-text) and Committee of the Board and N/A N/A
Summary of Semi-Annual relevant laws and regulations
The 10th Feng Kaiyan
Report 2021 relevant proposals are unanimously
Audit Pan Xinggao 2
agreed.Committee and Zhao Hong
Audit Committee verified and
deliberated on the matters strictly in
Consideration of the Third
2021-10-22 terms of the Rules of Work of Audit N/A N/A
Quarter Report of 2021
Committee of the Board and
relevant laws and regulations
54无锡威孚高科技集团股份有限公司2021年年度报告全文
relevant proposals are unanimously
agreed.Consideration of the
(1)Proposal Report on
Remuneration Assessment
Remuneration Committee verified
for Senior Executives and
and deliberated on the matters
th Xu Xiaofang Payout for year of 2020; The 9 strictly in terms of the Rules of
Jin Zhangluo (2) Proposal on Revision
Remuneratio 1 2021-04-16 Work of Remuneration Committee N/A N/A
and Zhang of Remuneration
n Committee of the Board and relevant laws and
Xiaogeng Management Measures
regulations relevant proposals are
for Senior Executives; and
unanimously agreed.
(3) Proposal Report of the
Allowance for
Independent Director
Consideration of the
(1)Proposal on
Adjustment of the
Remuneration Committee verified
Buy-back Price on
and deliberated on the matters
th Restricted Stock Incentive The 10 Yu Xiaoli Feng strictly in terms of the Rules of
Plan for year of 2020; and
Remuneratio Kaiyan and 1 2021-10-22 Work of Remuneration Committee N/A N/A
(2) Proposal on Buy-back
n Committee Huang Rui of the Board and relevant laws and
and Cancellation of the
regulations relevant proposals are
Restricted Stocks Partially
unanimously agreed.Granted without
Circulation for year of
2020
Nomination Committee verified and
Consideration of the
deliberated on the matters strictly in
Review of Candidate
th terms of the Rules of Work of The 9 Lou Diming Yu Qualification for
Nomination Committee of the
Nomination Xiaoli and Wang 1 2021-04-16 Non-independent N/A N/A
Board and relevant laws and
Committee Xiaodong Directors and Independent
Directors of 10th
regulations relevant proposals are
BOD
unanimously agreed.Nomination Committee verified and
Consideration of the
deliberated on the matters strictly in
Review on Qualification
The 10th Pan Xinggao terms of the Rules of Work of
of the Senior Executives
Nomination Xing Min and 1 2021-05-20 Nomination Committee of the N/A N/A
to be Appointed and
Committee Chen Yudong Board and relevant laws and
Related Information
regulations relevant proposals are
unanimously agreed.VIII. Works from Supervisory Committee
The Company has risks in reporting period that found in supervisory activity from supervisory committee
□ Yes √ No
IX. Particulars of workforce
1.Number of Employees Professional composition Education background
Employee in-post of the parent Company at period-end (people) 2623
Employee in-post of main Subsidiaries at period-end (people) 2717
The total number of current employees at period-end (people) 5340
The total number of current employees to receive pay (people) 5340
Retired employee’ s expenses borne by the parent Company and 0
55无锡威孚高科技集团股份有限公司2021年年度报告全文
main Subsidiaries (people)
Professional composition
Category of professional composition Numbers of professional composition (people)
Production personnel 3203
Sales personnel 167
Technical personnel 1231
Financial personnel 95
Administrative personnel 644
Total 5340
Education background
Category of education background Numbers (people)
Master degree and above 335
Undergraduate 1513
Junior college 1101
Other 2391
Total 5340
2. Remuneration Policy
According to the talent concept of “joint endeavour and fair sharing” the Company further improves the
performance management and salary management system strengthens the scientificity and pertinence of
performance goals and focuses on the Company’s strategy and business plan to give full play to the guiding and
promoting role of goals; further plays the role of incentive funds strengthens the promotion and incentive strength
of major innovation and development projects so as to promote the realization of the Company’s strategic goals.
3. Training programs
The Company takes “building a strategy-oriented talent team” as the goal further improves and trains the
development capabilities actively promotes the construction of the “San Hang Yi Jiang” talent training system
and develops ability improvement plans and specific training plans for employees in different development
channels; builds an online training platform expands multi-dimensional training resources and increases training
coverage; further improves the ability of internal trainers strengthens training development and curriculum
settings for new businesses; further strengthens action learning promotes the implementation of training effects
and comprehensively promotes the ability improvement of the Company’s employees.
4. Labor outsourcing
□ Applicable √ Not applicable
56无锡威孚高科技集团股份有限公司2021年年度报告全文
X. Profit distribution plan and transfer of public reserve into share capital
Formulation implementation and adjustment of profit distribution policy in particular the cash dividend policy during the reporting
period
√ Applicable □ Not applicable
1. Cash dividend policy: carry out bonus distribution according to the regulations of Articles of Association
2. During reporting period the Company implemented the profit distribution for year of 2020 based on the total
share capital after excluding the buy-back shares on buy-back account (56277 A-stock) from total share capital
1008950570 shares distributed 15 yuan (tax included) bonus in cash for every 10 shares held no capitalization
from public reserves. The plan was completed in June 2021. 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
Small & medium shareholders have opportunity to express opinions and demands totally and their legal rights
Y
are fully protected (Y/N):
Condition and procedures are compliance and transparent while the cash bonus policy adjusted or changed
Not applicable
(Y/N):
The Company earnings during the reporting period and profit available for distribution to shareholders from parent company is
negative 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
Bonus shares for every 10-share (Share) 0
Dividends for every 10-share (RMB) (Tax included) 16.00
Increase for every 10-share (Share) 0
Equity base of distribution plan (Share) 1008603293
Total cash dividend (RMB) (Tax included) 1613765268.80
Cash dividend by other ways (share buy-back included) (RMB) 0.00
Total cash dividend (other ways included) (RMB) 1613765268.80
Profits available for distribution (RMB) 12396934922.01
Ratio of the total cash dividend (other ways included) in total profit distribution 100%
57无锡威孚高科技集团股份有限公司2021年年度报告全文
Cash dividend policy
Other
Detail explanation on profit distribution or capitalization from capital public reserve
Audited by Gongzheng Tianye Certified Public Accountants net profit of the parent company for year of 2021 amount as
2210557100Yuan as of 31 December 2021 the profit available for distribution for shareholders amounted as 12396934900
Yuan. The profit distribution plan for 2021: with the total share capital of the company at the end of 2021(1008659570 shares)
excluding the shares already repurchased on the repurchase account (56277 shares of A-stock) that is the 1008603293 shares as
the base distribute 16.00 Yuan (tax included) in cash for every 10 shares to all shareholders without bonus shares and capitalization
of capital reserve. (In accordance with the Company Laws shares of the company held by a listed company through a special
securities account for repurchase shall not be entitled to participate in profit distribution and capitalization of capital reserves).The
remaining undistributed profits will be carried forward to the next year. The proposed cash dividend is 1613765300Yuan (tax
included) accounting for 62.66% of the net profit attributable to shareholder of listed company for year of 2021 in consolidate
statement. Independent directors expressed their independent opinions in this regard and agreed with the above proposal. The profit
distribution proposal has yet to be deliberation by AGM of 2021.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 session of the 9th Board of Directors to 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 to
deliberated and approved relevant proposals as the "Restricted Stock Incentive Plan 2020 (Draft) and its
summary" "Proposal on Assessment Management Measures for Restricted Stock Incentive Plan Implementation"
and "Proposal to Request the Shareholders’ General Meeting to Authorized BOD to Fully Handle Matters
Regarding Stock Incentive"
On November 12 2020 the Company held the 21st session of 9th 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 determine 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 8 2020.On October 22 2021 the Company held the 5th session of 10th BOD to deliberated and approved relevant
proposals as Adjustment of the Buy-back Price on Restricted Stock Incentive Plan for year of 2020 and Buy-back
58无锡威孚高科技集团股份有限公司2021年年度报告全文
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 are being held in
total.Equity incentive received by directors and senior executives
√ Applicable □ Not applicable
In share
Exercis
Numbe e price
Numbe Numbe
Numbe r of of the Number Number
r of r of Numbe
r of new stock Market of Number of new
stock stock r of Grant
stock stock exercis value at restricte of restricte Number of
exercis exercis stock price of
options options ed end of d shares shares d shares restricted
able ed options restricte
Name Title held at granted during the held at unlocke granted shares held
during during held at d shares
beginni during the Period beginni d during during at end of
the the end (RMB/S
ng of the reportin (RMB/S ng of the the the period
reportin reportin of the hare)
the reportin g hare) the period reportin
g g period
year g period( period g period
period period
period RMB/S
hare)
Wang
Chairman 21.54 400000 15.48 400000
Xiaodong
Vice
Xu
Chairman 21.54 350000 15.48 350000
Yunfeng
GM
Director
executive
Ou vice
21.5428000015.48280000
Jianbin president
and head of
finance
Miao
Deputy GM 21.54 280000 15.48 280000
Yuming
Xu Sheng Deputy GM 21.54 280000 15.48 280000
Rong Bin Deputy GM 21.54 280000 15.48 280000
Deputy GM
Liu Jinjun Secretary of 21.54 280000 15.48 280000
the Board
Chief
Li Gang 21.54 280000 15.48 280000
engineer
24300
Total -- 0 0 0 0 -- 0 -- 0 0 -- 2430000
00
Assessment mechanism and incentive condition of the senior executives
Assessment and incentive of senior management of the Company is conducted pursuant to the Company Law
Articles of Association and the Annual Operating Results Assessment Measures of Senior Management and
Remuneration Management Rules of Senior Management as approved at the general meetings. Assessment of
operating results of senior management 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 committee
of the Board made comprehensive assessment on satisfaction of the annual operating targets and determined the
59无锡威孚高科技集团股份有限公司2021年年度报告全文
annual remuneration incentives or punishment for senior management based on their review results (which was
implemented according to remuneration management rules of senior management) 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 management
under the performance indicator and assessment system the results of which had been reflected in the annual
performance related remuneration.Given that the Company implements the 2020 restricted stock incentive plan and the incentive targets overlap
with the long-term incentives for core talents the remuneration committee of the BOD proposes that the
Company’s 2020 restricted stock incentive plan suspend the provision of incentive funds during the
implementation period and use for medium and long-term incentives for core talents.
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 strictly followed requirement of Basic Internal Control Standards forEnterprises and its accompanying guidelines persist in the risk control concept of “keeping the bottom line;controlling risks; guarding the development” constantly consolidate the fundamental of internal control
management continuously optimize the internal control process and vigorously promote the construction of internal
control system conducted the supervision and improvement of the operation of internal control with risk-oriented to
effectively prevent risks in business management provided a strong guarantee for high-quality and healthy
development of the enterprise and accelerate the achievement of Company’s strategic goals.
2. Details of major defects in internal control identified during the reporting period
□Yes √ No
XIII. Management and controls on the subsidiary during reporting period
Integration Problems encountered Measures taken to Progress in Follow-up
Name Integration plans
progress in integration resolve solution solution plan
Not
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
applicable
60无锡威孚高科技集团股份有限公司2021年年度报告全文
XIV. Internal control self-assessment report or internal control audit report
1. Self-assessment Report of Internal Control
Disclosure date of full internal control assessment report 2022-04-19
Self-assessment report of internal control for 2021 more
Disclosure index of full internal control assessment report details found in Juchao website (www.cninfo.com.cn)
appointed by Shenzhen Stock Exchange
The ratio of the total assets of units included in the scope of assessment
accounting for the total assets on the company's consolidated financial 97.88%
statements
The ratio of the operating income of units included in the scope of
assessment accounting for the operating income on the company's 99.60%
consolidated financial statements
Defects recognition criteria
Category Financial Reports Non-financial Reports
See details in (II) Basis for assessment of internal See details in (II) Basis for assessment of
controls and defect recognition criteria of internal internal controls and defect recognition
controls of III Assessment of Internal Controls in criteria of internal controls of III Assessment
Qualitative criteria
2021 Annual Internal Control Self-Assessment of Internal Controls in 2021 Annual Internal
Report disclosed on www.cninfo.com.cn dated Control Self-Assessment Report disclosed on
April 19 2022. www.cninfo.com.cn dated April 19 2022.See details in (II) Basis for assessment of internal See details in (II) Basis for assessment of
controls and defect recognition criteria of internal internal controls and defect recognition
controls of III Assessment of Internal Controls in criteria of internal controls of III Assessment
Quantitative standard
2021 Annual Internal Control Self-Assessment of Internal Controls in 2021 Annual Internal
Report disclosed on www.cninfo.com.cn dated Control Self-Assessment Report disclosed on
April 19 2022. www.cninfo.com.cn dated April 19 2022.Number of significant defects in
0
financial reports
Number of significant defects in
0
non-financial reports
Number of important defects in
0
financial reports
Number of important defects in
0
non-financial reports
2. Auditing report of internal control
√Applicable □ Not applicable
Deliberations in Internal Control Audit Report
Audit institute considers that: according to relevant regulations and Basic Internal Control Standards for Enterprise Weifu
High-Technology Group Co. Ltd. in all major aspects keeps an efficiency of internal control of financial report dated 31 December
2021
Disclosure details of audit report of internal control Disclosed
Disclosure date of audit report of internal control (full-text) 2022-04-19
Audit report of internal control for year of 2021 more details found
Index of audit report of internal control (full-text)
in Juchao website (www.cninfo.com.cn) appointed by Shenzhen
61无锡威孚高科技集团股份有限公司2021年年度报告全文
Stock Exchange
Opinion type of auditing report of IC Standard unqualified
Whether the non-financial report had major defects (Y/N) N
Carried out modified opinion for internal control audit report from CPA
□Yes √ No
The internal control audit report issued by CPA has concerted opinion with self-evaluation report issued from the Board
√ Yes □ No
XV. Rectification of Self-examination Problems in Special Governance Actions in Listed
Company
N/A
62无锡威孚高科技集团股份有限公司2021年年度报告全文
Section V. Environmental and Social Responsibility
I. Major environmental
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department
□Yes √ No
Administrative punishment for environmental problems during the reporting period
The impact on the
The Company's
Name of company or Reason for production and
Violation Punishment result rectification
subsidiary punishment operation of listed
measures
companies
N/A N/A N/A N/A N/A N/A
Other environmental information disclosed refer to key polluters
Not applicable
Measures taken to reduce carbon emissions during the reporting period and their effects
√ Applicable □ Not applicable
As an important part of the Company’s core value saving resources and reducing consumption on the one hand
are conducive to the improvement of enterprise efficiency and at the same time are also conducive to the
improvement of resource utilization rate of the whole society. Therefore the Company continuously improves
resource utilization rate through technological innovation vigorously promotes energy conservation and emission
reduction and strives to achieve green production. The Company’s existing main business is based on the energy
saving and emission reduction of automobiles. At present the Company’s main products have all met the
requirements of national emission regulations and we are actively stocking products that meet more stringent
emission regulations. In recent years the Company has accelerated the layout and development of new energy
businesses such as green hydrogen energy and intelligent electric power which will help achieve the goals of peak
carbon dioxide emissions and carbon neutrality.Reasons for not disclosing other environmental information
Not applicable
II. Social responsibility
For details please refer to the Social Responsibility Report for Year of 2021 released by the Company on the same day on Juchao
Website (www.cninfo.com.cn)
63无锡威孚高科技集团股份有限公司2021年年度报告全文
III. Consolidating and expanding the achievements of poverty alleviation and rural
revitalization
During the reporting period the Company actively fulfilled its social responsibilities demonstrated its corporate
accountability for the era established a good corporate image and made positive contributions to promoting
sustainable and high-quality development of economic society.In the action of “ten thousand enterprises unite with ten thousand to take the road of revitalization together” the
Company joined with Maohua Village Taihua Town Yixing for co-construction. The Company combined the
procurement of agricultural products for employee welfare and the employees’ team building activities with the
support for the development and revitalization of Maohua Village and organized employees to go to Maohua
Village for team building activities. The Company’s party committee signed a contract with the party building
alliance of the party general branch of Baita Village Xizhu Town Yixing so as to deepen the cooperation
connotation expand the cooperation results and achieve mutual benefit. The visit and study of party members and
key members and the cultural construction of staff team were combined with the development and revitalization
of Baita Village. The Company has successively organized 6 batches of party members and employees to visit
Baita Village for team building and cultural visits and purchased some agricultural products from Baita Village.
64无锡威孚高科技集团股份有限公司2021年年度报告全文
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. Concerning assets or project of the Company which has profit forecast and reporting period still in
forecasting period explain reasons of reaching the original profit forecast
□ Applicable √ Not applicable
II. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from 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 BOD
□ Applicable √ Not applicable
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
Implemented the new lease standards: The Ministry of Finance issued the revised Accounting Standards for Business Enterprise
No.21- Lease in December 2018. the Company has implemented the new leasing standards from January 1 2021. For the contracts
65无锡威孚高科技集团股份有限公司2021年年度报告全文
existing prior to the date of first implementation the Company has chosen not to re-assess whether they are leases or contains a
leases. The Company adjusted the amount of retained earnings and other related items in financial statements at the beginning of the
year of initial implementation based on the cumulative effect of initial implementation without adjusting the information for
comparable period. For details please refer to “Note V.37. Changes in Significant Accounting Policies and Accounting Estimates” in
Section X of the Financial Report.VII. Compare with last year’s financial report; explain changes in consolidation statement’s
scope
□ Applicable √ Not applicable
No changes in consolidation statement scope in the reporting period
VIII. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
Gongzheng Tianye Certified Public Accountants (Special
Name of domestic accounting firm
General Partnership)
Remuneration for domestic accounting firm (in 10 thousand yuan) 166
Continuous life of auditing service for domestic accounting firm 30
Name of domestic CPA Gu Zhi Zhang Qianqian
Continuous life of auditing service for domestic accounting firm Gu Zhi (1 year) Zhang Qianqian (2 year)
Re-appointed accounting firms in this period
□Yes √No
Appointment of internal control auditing accounting firm financial consultant or sponsor
√ Applicable □ Not applicable
Being deliberated in Annual Shareholders General Meeting of 2020 Gongzheng Tianye was appointed as audit accounting firm for
internal control of the Company for year of 2021. In the Period auditing charge for internal control amounting to 220000 yuan.IX. Particular about delisting after annual report disclosed
□ Applicable √ Not applicable
X. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period
XI. Major litigation and arbitration
√ Applicable □ Not applicable
66无锡威孚高科技集团股份有限公司2021年年度报告全文
Trial
Amount Whether Judgment
Results and
Related Formed Implementati
Basic Situation of Litigation Progress of Litigation Effects of Disclosure Disclosure
to the Accrued on of
(Arbitration) (Arbitration) Litigation Date Index
Case Liabiliti Litigation
(Arbitration
( yuan) es (Arbitration)
)
On March 6 2017 the
company received the civil By the company’s application
ruling for reconsideration Shenzhen
No.(2016)Y03MC2490 and Intermediate People's Court
No.(2016) Y03MC2492 deemed the total assets that
from Shenzhen Intermediate Cinda Company applied for
People's Court about the preservation to be RMB
dispute case that the 217027697.23. The total
plaintiff applicant China value of 15.3 million shares of
Cinda Asset Management SDEC Stock and 4.71 million
Co. Ltd. Shenzhen Branch shares of Miracle Automation
(hereinafter referred to as held by the company has This
“Cinda Company”) exceeded the total assets that litigation (Announce
appealed the respondent Cinda Company applied for will not ment No.:
Weifu High Technology and preservation therefore affect the 2017-002)
other seven respondents and 3560898 shares of SDEC company’s Not yet 8 March published
21703 N
the shareholders of the third Stock held by the company daily implemented 2017 on Juchao
party Hejun Company was unfrozen. Up to the end operating Website
damaged the interests of of the reporting period the activities (www.cninf
corporate creditors which company’s frozen assets were for the time o.com.cn)
adopted the mandatory as follows: 4.71 million shares being
measures to freeze the assets of Miracles Automation held
with value of RMB 217 by the company and its fruits
million under the name of and 11739102 shares of
the Company and other SDEC Stock held by the
seven respondents and company and its fruits. At
Hejun Company. Freeze present this litigation is in the
4.71 million shares of first instance (the first trial
Miracle Automation and held on 24 Sept. 2017 and
15.3 million shares of follow trial will wait for
SDEC Stock held by the notice by the court).company.The Company has applied to
Futian People's Court of
Shenzhen for compulsory
liquidation with Hejun
(Announce
Company. The civil ruling There is no
ment No.:
The Company has applied to paper (Yue (0304) QS [2017] impact on
2017-023)
Futian People's Court of No. 5) made by Shenzhen daily Relevant
6 Dec. published
Shenzhen for compulsory 3300 N Futian District People’s Court operation works are in
2017 on Juchao
liquidation with Hejun ruled that Hejun Company activities of process
Website
Company should be made compulsory the
(www.cninf
liquidation. The Company Company
o.com.cn)
will actively cooperate with
the court to work on the
liquidation to protect its
legitimate rights and interests.XII. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.XIII. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
67无锡威孚高科技集团股份有限公司2021年年度报告全文
XIV. Major related party transaction
1. Day-to-day related party transaction
√ Applicable □ Not applicable
Wheth Clear
Related
Content Trading er over ing
party Proporti Availabl
Type of of Related limit the form Index
transaction on in e
Related Relation related related Pricing party approve approv for Date of of
amount (in similar similar
party ship transacti party principle transacti d (in 10 ed relate disclosure disclos
10 transacti market
on transacti on price thousand limited d ure
thousand ons price
on yuan) or not transa
yuan)
(Y/N) ction
Procure Procure Acco
Associat
ment of ment of Fair rding Notice
ed Market Market April 20
WFPM goods goods market 4983.99 0.39% 4200 Y to the No:20
enterpri price price 2021
and and pricing contr 21-012
se
services services act
Associat
ed
enterpri
Procure Procure Acco
se
ment of ment of Fair rding Notice
controlli Market Market April 20
RBCD goods goods market 35990.31 2.85% 33500 Y to the No:20
ng price price 2021
and and pricing contr 21-012
subsidia
services services act
ry of
Robert
Bosch
Acco
Joint
Procure Procure Fair rding Notice
venture Market Market April 20
WFEC ment of ment of market 82396.29 6.52% 165000 N to the No:20
of price price 2021
goods goods pricing contr 21-012
WFLD
act
Second
largest Procure Procure Acco
Robert sharehol ment of ment of Fair rding Notice
Market Market April 20
Bosch der of goods goods market 21657.66 1.71% 21500 Y to the No:20
price price 2021
Company the and and pricing contr 21-012
Compan services services act
y
Holding
Procure Procure Acco
subsidia
ment of ment of Fair rding
Guokai ry of Market Market
goods goods market 5799.12 0.46% Y to the
Metal Wuxi price price
and and pricing contr
Industry
services services act
Group
Acco
JOINT
Procure Procure Fair rding
Changchu VENTU Market Market
ment of ment of market 171.26 0.01% Y to the
n Xuyang RE OF price price
goods goods pricing contr
WFLD
act
Acco
Associat
Shinwell Procure Procure Fair rding Notice
ed Market Market April 20
Automobi ment of ment of market 0.00% 100 N to the No:20
enterpri price price 2021
le goods goods pricing contr 21-012
se
act
Acco
Associat Sales of Sales of
Fair rding Notice
ed goods goods Market Market April 20
WFPM market 2950.16 0.22% 4500 N to the No:20
enterpri and and price price 2021
pricing contr 21-012
se services services
act
68无锡威孚高科技集团股份有限公司2021年年度报告全文
Associat
ed
enterpri
Acco
se Sales of Sales of
Fair rding Notice
controlli goods goods Market Market April 20
RBCD market 313724.54 22.93% 320000 N to the No:20
ng and and price price 2021
pricing contr 21-012
subsidia services services
act
ry of
Robert
Bosch
Acco
JOINT Sales of Sales of
Fair rding Notice
VENTU goods goods Market Market April 20
WFEC market 763.02 0.06% 2500 N to the No:20
RE OF and and price price 2021
pricing contr 21-012
WFLD services services
act
Second
largest Acco
Sales of Sales of
Robert sharehol Fair rding Notice
goods goods Market Market April 20
Bosch der of market 122435.02 8.95% 122000 Y to the No:20
and and price price 2021
Company the pricing contr 21-012
services services
Compan act
y
Acco
JOINT
Fair rding
Changchu VENTU Sales of Sales of Market Market
market 2143.62 0.16% Y to the
n Xuyang RE OF goods goods price price
pricing contr
WFLD
act
Acco
Associat
Shinwell Fair rding Notice
ed Sales of Sales of Market Market April 20
Automobi market 2.93 0.00% 100 N to the No:20
enterpri goods goods price price 2021
le pricing contr 21-012
se
act
Associat
ed
enterpri
Technic Acco
se
al Fair rding Notice
controlli Market Market April 20
RBCD Other service market 45.56 100 N to the No:20
ng price price 2021
fee pricing contr 21-012
subsidia
payable act
ry of
Robert
Bosch
Associat
ed
Paymen
enterpri
t of Acco
se
technica Fair rding Notice
controlli Market Market April 20
RBCD Other l market 233.23 300 N to the No:20
ng price price 2021
commis pricing contr 21-012
subsidia
sion fee act
ry of
etc.Robert
Bosch
Associat
ed
enterpri
Acco
se Purchas
Fair rding
controlli e of Market Market
RBCD Other market 52.84 Y to the
ng fixed price price
pricing contr
subsidia assets
act
ry of
Robert
Bosch
Second Technic Acco
Robert Fair Notice
largest al Market rding Market April 20
Bosch Other market 557.75 700 N No:20
sharehol commis price to the price 2021
Company pricing 21-012
der of sion contr
69无锡威孚高科技集团股份有限公司2021年年度报告全文
the payable act
Compan
y
Second
largest Acco
Purchas
Robert sharehol Fair rding
e of Market Market
Bosch der of Other market 92.79 Y to the
fixed price price
Company the pricing contr
assets
Compan act
y
Acco
JOINT Rental
Fair rding Notice
VENTU fees Market Market April 20
WFEC Other market 168.31 300 N to the No:20
RE OF receivab price price 2021
pricing contr 21-012
WFLD le
act
Acco
JOINT Purchas
Fair rding
VENTU e of Market Market
WFEC Other market 2.04 Y to the
RE OF fixed price price
pricing contr
WFLD assets
act
Technic
Acco
JOINT al
Fair rding Notice
VENTU service Market Market April 20
WFEC Other market 45 200 N to the No:20
RE OF fees price price 2021
pricing contr 21-012
WFLD payable
act
etc.Provide Acco
JOINT
technica Fair rding
VENTU Market Market
WFEC Other l market 87.34 Y to the
RE OF price price
services pricing contr
WFLD
etc. act
Total -- -- 594302.78 -- 675000 -- -- -- -- --
Detail of sales return with major
Not applicable
amount involved
Being deliberated and approved by AGM of 2020 total day-to-day related party transaction
for year of 2021 predicted as 6750 million yuan actually 5943.0278 million yuan occurred in
Report the actual implementation of the Period the related transaction classified according to types are as: 1. it estimated that
the day-to-day related transactions procurement of goods and labor service from related party in 2021 will up to 2243 million
which were projected about their total yuan while 1509.9863 million yuan occurred actually in the Period; 2. it estimated that sales
amount by types during the reporting of goods and labor service to related party in 2021 will up to 4491 million yuan while
period (if applicable) 4420.1929 million yuan actually occurred. 3. it estimated that other related transactions with
related party for year of 2021 will up to 16 million yuan while 12.8486 million yuan actually
occurred.Reasons for major differences
between trading price and market Not applicable
reference price (if applicable)
2. Related party transactions of assets acquisition and sold
□ Applicable √ Not applicable
No related party transactions of assets acquisition and sold occurred during the reporting period
3. Related party transactions of mutual investment outside
□ Applicable √ Not applicable
No related party transactions of mutual investment outside occurred during the reporting period.
70无锡威孚高科技集团股份有限公司2021年年度报告全文
4. Contact of related party credit and debt
□ Applicable √ Not applicable
The Company had no contact of related party credit and debt in the reporting period.
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
7. Other material related party transactions
√ Applicable □ Not applicable
(1) On September 17 2021 the Proposal of Intended to Participated in the Investment and Establishment of a Partnership Enterprise
and Related Transactions was deliberated and approved by 4th session of 10th BOD.Disclosure website for inquires to the notice regarding material related transactions
Interim report Disclosure date Website for disclosure
Intended to Participated in the Investment and
Establishment of a Partnership Enterprise and Related September 18 2021 Juchao Website(http://www.cninfo.com.cn)
Transactions
XV. Significant contract and implementations
1. Trusteeship contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship occurred during the reporting period
(2) Contract
□ Applicable √ Not applicable
No contract occurred during the reporting period
71无锡威孚高科技集团股份有限公司2021年年度报告全文
(3) Leasing
□ Applicable √ Not applicable
No leasing occurred during the reporting period
2. Material guarantees
□ Applicable √ Not applicable
No material guarantees occurred during the reporting period
3. Entrust others to cash asset management
(1) Trust financing
√ Applicable □ Not applicable
Trust financing during the period
In 10 thousand yuan
Amount with
impairment accrual
for the overdue
Type Capital sources Amount occurred Outstanding balance Overdue amount
financial products
which has not been
recovered
Financing products Own funds 299300 91916 0 0
Financial products of
Own funds 111500 96512 0 0
securities firms
Trust financial products Own funds 345653 345653 0 0
Other type Own funds 141573 141573 0 0
Total 898026 675654 0 0
Details of the single major amount or high-risk trust investment with low security poor fluidity
√ Applicable □ Not applicable
In 10 thousand yuan
Amo
unt
of
Summ
reser Whet
Actu Whet ary of
ve her
al her the
for has
Capita Antici colle appro items
Truste deva entru
l Criteria Referenc pated Actual cted ved and
e Source luati st
Trustee Amou Start End invest for e annual incom gains/los gain by relate
institut Type of on finan
type nt date date ment fixing rate of e (if ses in s/los legal d
ion r funds of ce
purpos reward return applic period ses proce query
name with plan
e able) in dure index
draw in the
peri (Y/N (if
ing futur
od ) applic
(if e
able)
appli
cabl
e)
Referen Coll April
Non-gu
Bank ce ecte 20
arantee
financi annual d 2021
d 1235 Own 2021- 2022- 2.50%
Bank Bank al rate of 609.99 6300.99 acco 0 Y Y (Anno
floatin 985.77 funds 01-05 04-08 -4%
produc return rdin uncem
g
ts by the g to ent
income
contract the No.
72无锡威孚高科技集团股份有限公司2021年年度报告全文
cont 2021-
ract 014)
Coll
Referen ecte
Non-gu
ce d
arantee Asset
annual acco
Securit Securit d 15850 Own 2021- 2022- Manag 4.20%-1 5322.rate of 3845.03 rdin 0 Y Y
ies ies floatin 0 funds 01-12 12-13 ement 0% 48
return g to
g Plan
by the the
income
contract cont
ract
Coll
Referen ecte
Non-gu
ce d
arantee Collec
annual acco
d 29778 Own 2021- 2023- tion 3.30%-8 20900 19289.3
Trust Trust rate of rdin 0 Y Y
floatin 0 funds 01-08 12-24 trust % .76 2
return g to
g plan
by the the
income
contract cont
ract
Coll
Other Referen ecte
Non-gu
profess Privat ce d
arantee
ional e annual acco
d 10448 Own 2021- 2023- 5.30%-1 9242.Othehr f inanci Equity rate of 1534.73 rdin 0 Y Y
floatin 0 funds 02-08 08-13 0% 96
al Produ return g to
g
institut cts by the the
income
ions contract cont
ract
17963607630970.0
Total -- -- -- -- -- -- -- 0 -- -- --
745.77.197
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
(2) Entrusted loans
□ Applicable √ Not applicable
The company had no entrusted loans in the reporting period.
4. Other significant contract
□ Applicable √ Not applicable
The company had no other significant contract in the reporting period.XVI. Explanation on other material matters
□Applicable √ Not applicable
There are no explanation on other material matters in the period
XVII. Material matters of subsidiary of the Company
□ Applicable √ Not applicable
73无锡威孚高科技集团股份有限公司2021年年度报告全文
Section VII. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
Before the Change Increase/Decrease in the Change (+ -) After the Change
Publ
ic
reser
Bon ve
New
Proporti us trans Proporti
Amount shares Others Subtotal Amount
on shar fer on
issued
es into
share
capit
al
I. Restricted shares 19620830 1.94% -331494 -331494 19289336 1.91%
1. State-owned shares
2. State-owned legal person’s shares
3. Other domestic shares 19620830 1.94% -331494 -331494 19289336 1.91%
Including: Domestic legal person’s
shares
Domestic natural person’s shares 19620830 1.94% -331494 -331494 19289336 1.91%
4. Foreign shares
Including: Foreign legal person’s
shares
Foreign natural person’s shares
II. Unrestricted shares 989329740 98.06% 40494 40494 989370234 98.09%
1. RMB ordinary shares 816949740 80.97% 40494 40494 816990234 81.00%
2. Domestically listed foreign shares 172380000 17.09% 172380000 17.09%
3. Overseas listed foreign shares
4. Others
III. Total shares 1008950570 100.00% -291000 -291000 1008659570 100.00%
Reasons for share changed
√ Applicable □ Not applicable
1.During the reporting period restricted shares changed due to the buy-back and canceled of some restricted shares granted without
circulation for year of 2020;
2. During the reporting period change of lock-up shares held by senior executives are resulting by the change of directors
supervisors and senior executives.Approval of share changed
74无锡威孚高科技集团股份有限公司2021年年度报告全文
√ Applicable □ Not applicable
On October 22 2021 the Company held the 5th session of 10th BOD to deliberated and approved relevant proposals as 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.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
Shares
Opening Shares
increased Ending shares
Shareholders shares released in Restricted reasons Date for released
in restricted
restricted Period
the
Period
Lock-up shares held by As required by
Shi Xing yuan 9505 9505 0
senior executives the rules
Lock-up shares held by
senior executives and
As required by
Zhou Weixing 122674 2674 120000 Restricted Stock
the rules
Incentive Plan for year
of 2020
Lock-up shares held by As required by
Dai Lizhong 1500 1500 0
senior executives the rules
Lock-up shares held by As required by
Chen Xuejun 26065 26065 0
senior executives the rules
Lock-up shares held by As required by
Chen Ran 750 750 0
senior executives the rules
Middle management Restricted Stock
As required by
staff other core staff (11 291000 291000 0 Incentive Plan for year
the rules
people in total) of 2020
Total 451494 0 331494 120000 -- --
II. Securities issuance and listing
1. Security offering (without preferred stock) in Reporting Period
□ Applicable √ Not applicable
75无锡威孚高科技集团股份有限公司2021年年度报告全文
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 for year of 2020 which has granted without circulation have repurchased and
canceled partially by the Company that is 291000 shares total share capital of the Company comes to 1008659570 shares from
1008950570 shares.
3. Current internal staff shares
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
In Share
Total preference
shareholders
Total preference
Total common with voting
Total common shareholders with
stock rights recovered
stock voting rights
shareholders at at end of last
shareholders in 72648 70740 recovered at end of 0 0
end of last month month before
reporting reporting period (if
before annual annual report
period-end applicable) (See
report disclosed disclosed (if
Note 8)
applicable) (See
Note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number Information of shares pledged
Proporti Total
Nature of of Amount of tagged or frozen
Full name of on of shareholders Changes in
shareholde lock-up un-lock up
Shareholders shares at the end of report period State of
r stocks stock held Amount
held report period share
held
Wuxi Industry State-own
Development Group ed 20.23% 204059398 0 0 204059398
Co. Ltd. corporate
ROBERT BOSCH Foreign
14.16%14284140000142841400
GMBH corporate
Hong Kong Securities Foreign
2.45%24709421-40293651024709421
Clearing Company corporate
BBH BOS S/A
Foreign
FIDELITY FD - 1.53% 15444715 -648800 0 15444715
corporate
CHINA FOCUS FD
Basic Pension
Other 0.76% 7715656 -3447650 0 7715656
Insurance Fund- 1003
FIDELITY INVMT
Foreign
TRT FIDELITY INTL 0.70% 7043386 -296200 0 7043386
corporate
SMALL CAP FUND
NSSF - 413 Other 0.53% 5340000 -510000 0 5340000
State-own
Haitong Securities
ed 0.46% 4635900 -327701 0 4635900
Company Limited
corporate
76无锡威孚高科技集团股份有限公司2021年年度报告全文
Domestic
Qian Hao nature 0.41% 4150300 334700 0 4150300
person
Industrial and
Commercial Bank of
China Limited -
Other 0.37% 3706582 1391100 0 3706582
Fullgoal CSI Bonus
Enhanced Securities
Investment Fund
Strategy investor or general legal
person becoming the top 10
N/A
shareholders by placing new
shares (if applicable)
Among the aforesaid shareholders there has no associated relationship between Wuxi Industry
Explanation on associated
Development Croup Co. Ltd. and other shareholders the first largest shareholder of the
relationship among the aforesaid
Company; and they do not belong to the persons acting in concert regulated by the Management
shareholders
Measure of Information Disclosure on Change of Shareholding for Listed Company.Description of the above
shareholders in relation to
N/A
delegate/entrusted voting rights
and abstention from voting rights.Special note on the repurchase
account among the top 10 N/A
shareholders (if applicable)
Particular about top ten shareholders with un-lock up stocks held
Amount of un-lock up Type of shares
Shareholders’ name
stocks held at Period-end Type Amount
RMB common
Wuxi Industry Development Group Co. Ltd. 204059398 204059398
shares
RMB common
115260600
shares
ROBERT BOSCH GMBH 142841400
Domestically listed
27580800
foreign shares
RMB common
Hong Kong Securities Clearing Company 24709421 24709421
shares
Domestically listed
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 15444715 15444715
foreign shares
RMB common
Basic Pension Insurance Fund- 1003 7715656 7715656
shares
FIDELITY INVMT TRT FIDELITY INTL SMALL CAP Domestically listed
70433867043386
FUND foreign shares
RMB common
NSSF - 413 5340000 5340000
shares
RMB common
Haitong Securities Company Limited 4635900 4635900
shares
RMB common
Qian Hao 4150300 4150300
shares
Industrial and Commercial Bank of China Limited - RMB common
37065823706582
Fullgoal CSI Bonus Enhanced Securities Investment Fund shares
Among the aforesaid shareholders there has no associated relationship
between Wuxi Industry Development Croup Co. Ltd. and other
Expiation on associated relationship or consistent actors
shareholders the first largest shareholder of the Company; and they do
within the top 10 un-lock up shareholders and between top
not belong to the persons acting in concert regulated by the
10 un-lock up shareholders and top 10 shareholders
Management Measure of Information Disclosure on Change of
Shareholding for Listed Company.Explanation on top 10 shareholders involving margin
N/A
business (if applicable) (See Note 4)
Whether top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held of the Company have no
buy-back agreement dealing in reporting period.
77无锡威孚高科技集团股份有限公司2021年年度报告全文
2. Controlling shareholder of the Company
Nature of controlling shareholders: local state-owned holding
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
Wuxi Industry various commodities and technologies
Development Group Yao Zhiyong 1995-10-05 913202001360026543 (except for commodities and technologies
Co. Ltd. that restricted or prohibited for import &
export by the State) domestic trading
(restricted and prohibited projects by the
State excluded)
Equity of other
domestic/oversea
1. First majority shareholder of the Company—Wuxi Industry Group is the controlling shareholder of Wuxi
listed company
Taiji Industry Corporation Limited (stock code: 600667).control by
2. The majority shareholder of the Company Industry Group holds 23185000 circulating shares (15.65% of
controlling
total shares of New Hongtai) of Wuxi New Hongtai Electrical Technology Co. Ltd. (Short name: New
shareholder as well
Hongtai Stock Code: 603016).as stock-joint in
report 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
Type of actual controller: legal person
Legal person/person in Date of Organization
Actual controlling shareholders Main operation business
charge of the unit foundation code
State-owned Assets Supervision &
Administration Commission of Wuxi Zhang Jianchun ~ State-owned Assets management
Municipality of Jiangsu Province
Equity of domestic/oversea listed
company control by actual controller in Not applicable
report period
Changes of actual controller in reporting period
□ Applicable √ Not applicable
No changes of actual controllers for the Company in reporting period.Property right and controlling relationship between the actual controller and the Company is as follow
78无锡威孚高科技集团股份有限公司2021年年度报告全文
Wuxi State-owned Assets Supervision & Department of Finance of
Administration Commission of State
Council Jiangsu province
100%
Wuxi Guofa Capital Operation 68.1518% 4.5401%
Co. Ltd.
27.3081%
Wuxi Industry Development Group Co. Ltd.
20.23%
Weifu High-Technology Group Co. Ltd..Actual controller controlling the Company by entrust or other assets management
□ Applicable √ Not applicable
4.The total number of shares pledged by controlling shareholders or the first majority shareholder and 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 rep./person in Register
Dated founded Main business or management activity
shareholders charge of unit capital
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
1200
ROBERT BOSCH Bettina Holzwarth information technology including solutions based on data
1886-11-15 million
GMBH Nora Kristin Klug and related fields. The Company’s goal is to further
euros
perform regionally based and business-related services.The Company may directly or indirectly enter into various
business transactions to achieve this goal. In order to
achieve the goal the Company can establish acquire and
participate in business activities in any form permitted by
79无锡威孚高科技集团股份有限公司2021年年度报告全文
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 entity
□ Applicable √ Not applicable
IV. The specific implementation of shares buy-back during the reporting period
Implementation progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
80无锡威孚高科技集团股份有限公司2021年年度报告全文
Section VIII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.
81无锡威孚高科技集团股份有限公司2021年年度报告全文
Section IX. Corporate Bonds
□ Applicable √ Not applicable
82无锡威孚高科技集团股份有限公司2021年年度报告全文
Section X. Financial Report
I. Audit report
Type of audit opinion Standard unqualified opinion
Signing date of audit report 15 April 2022
Name of audit institute Gongzheng Tianye Certified Public Accountants (Special General Partnership)
Serial of Auditing Report Su Gong W【2022】No. A385
Name of CPA Gu Zhi Zhang Qianqian
Auditor’s Report
Su Gong W【2022】No. A385
To the Shareholders of Weifu High-Technology Group Co. Ltd.:
I. Auditing opinions
We have audited the financial statement under the name of Weifu High-Technology Group Co. Ltd. (hereinafter
referred to as WFHT) including the consolidated and parent Company’s balance sheet of 31 December 2021 and
profit statement and cash flow statement and statement on changes of shareholders’ equity for the year ended
and notes to the financial statements for the year ended.In our opinion the Company’s financial statements have been prepared in accordance with the Enterprises
Accounting Standards and Enterprises Accounting System and they fairly present the financial status of the
Company and of its parent company as of 31 December 2021 and its operation results and cash flows for the year
ended.II. Basis of opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Ourresponsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of theFinancial Statements” section of the auditor’s report. We are independent of the Company in accordance with the
Certified Public Accountants of China’s Code of Ethics for Professional Accountants and we have fulfilled our
other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.III. Key audit matters
Key audit matters are those matters that in our professional judgment were of most significance in our audit of
83无锡威孚高科技集团股份有限公司2021年年度报告全文
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on
these matters.Revenue recognition is the key audit matter that we identified in auditing.
1. Matter description
As described in the 32. Revenue in Note V and 42. Operation revenue and operation cost in Note VII carried in
the financial statement WFHT achieved an operation revenue of 13682426700 yuan for year of 2021. As one of
the biggest source of profits for WFHT operating revenue has a significant effect on the general financial
statement in which there are certain of inherent risks existed for the reason that the management manipulate the
timing of recognition so as to achieve specific objectives or anticipations. Therefore we will take the Revenue
recognition as the key auditing matter.
2. The solution to the matter in auditing
(1)The Company has tested the design and execution of key internal control related to revenue recycling so as to
confirm the validity of internal control;(2) The Company should make sure whether the recognition condition and
method of major operating revenue are compliance with the accounting standards for business enterprise; it also
should pay an attention to that whether the cyclical and occasional revenue is compliance with the decided
revenue recognition principle and methods;(3) Combining with status and data of the industry where WFHT is
located the Company should make a judgment on the rationality of fluctuation of the revenue composition;(4)
The Company should carry out the procedure of account receivable and revenue letter of confirmation and make
a judgment on the rationality of the timing of revenue recognition; (5) Combining with the procedure of letter of
confirmation the Company should make a random inspection on sales contracts or orders delivery lists logistics
bills customs declaration sales invoices signing-off sheet and other documents related to revenue to verify the
authenticity of revenue;(6) Referring to the recorded revenue before and after the Balance Sheet Date the
Company should select some samples and check out the supportive documents such as delivery lists customs
declaration and receipt forms to make a judgment on whether the income has been recorded at the appropriate
accounting period.IV. Other information
The management of WFHT is responsible for other information which includes the information covered in the
Company’s 2021 annual report excluding the financial statement and our audit report.Our audit opinions on the financial statements do not cover other information and we do not issue any form of
authentication conclusions on other information.In combination with our audit of the financial statements it is our responsibility to read other information and in
84无锡威孚高科技集团股份有限公司2021年年度报告全文
the process consider whether there is material inconsistency or material misstatement between the other
information and the financial statements or what we learned during the audit.Based on the work we have carried out if we determine that there is a material misstatement of other information
we should report that fact and i this regard we have noting to report.V. Responsibilities of management and those charged with governance for the financial statements
The management is responsible for the preparation of the financial statements in accordance with the Accounting
Standards for Enterprise to secure a fair presentation and for the design establishment and maintenance of the
internal control necessary to enable the preparation of financial statements that are free from material
misstatement whether due to fraud or error.In preparing the financial statements the management is responsible for assessing the Company’s ability to
continue as a going concern disclosing matters related to going concern (if applicable) and using the going
concern assumption unless the management either intends to liquidate the Company or to cease operations or has
no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.VI. Responsibilities of the auditor for the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement whether due to fraud or error and to issue an audit report that includes our audit opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance
with the CAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if individually or in the aggregate they could reasonably be expected to
influence the economic decisions of users taken on the basis of the financial statements.As part of an audit in accordance with the CAS we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error
design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and
appropriate to provide a basis for audit opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions
misrepresentations or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern assumption and based on the
85无锡威孚高科技集团股份有限公司2021年年度报告全文
audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists we are required by the CAS to draw users’ attention in audit report to the related disclosures in
the financial statements or if such disclosures are inadequate to modify audit opinion. Our conclusions are based
on the information obtained up to the date of audit report. However future events or conditions may cause the
Company to cease to continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express audit opinion on the financial statements. We are responsible for the
direction supervision and performance of the group audit. We remain solely responsible for audit opinion.We communicate with those charged with governance regarding among other matters the planned scope and
timing of the audit and significant audit findings including any significant deficiencies in internal control that we
identify during our audit.We also provide the governance with a statement of our compliance with the ethical requirements relating to our
independence and communicate with the governance on all relationships and other matters that may reasonably be
considered to affect our independence as well we the relevant precautions (if applicable).From the matters communicated with those charged with governance we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in the auditor’s report unless law or regulation precludes public disclosure
about the matter or when in extremely rare circumstances we determine that a matter should not be
communicated in the auditor’s report because of the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.Jiangsu Gongzheng Tianye CPA Chinese CPA: Gu Zhi
(Special General Partnership) (engagement partner)
Wuxi China Chinese CPA: Zhang Qianqian
15 April 2022
86无锡威孚高科技集团股份有限公司2021年年度报告全文
II. Financial Statement
Statement in Financial Notes are carried Unit: RMB/CNY
1. Consolidated Balance Sheet
Prepared by Weifu High-Technology Group Co. Ltd.December 31 2021
In RMB
Item December 31 2021 December 31 2020
Current assets:
Monetary funds 1896063265.69 1963289832.33
Settlement provisions
Capital lent
Trading financial assets 6076436069.42 3518432939.10
Derivative financial assets
Note receivable 1116550186.21 1657315723.56
Account receivable 2053800293.77 2824780352.41
Receivable financing 713017014.50 1005524477.88
Accounts paid in advance 178059249.99 151873357.76
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 17908078.54 54209580.88
Including: Interest receivable
Dividend receivable 49000000.00
Buying back the sale of financial assets
Inventories 3445396375.09 2877182174.64
Contract assets
Assets held for sale
Non-current asset due within one year
Other current assets 220320922.50 2137921113.61
Total current assets 15717551455.71 16190529552.17
Non-current assets:
Loans and payments on behalf
87无锡威孚高科技集团股份有限公司2021年年度报告全文
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 5717944788.12 4801488290.97
Investment in other equity instrument 285048000.00 285048000.00
Other non-current financial assets 1690795178.00 1805788421.00
Investment real estate 19387746.56 20886681.62
Fixed assets 2932210452.51 2882230191.08
Construction in progress 387429933.08 243795493.04
Productive biological asset
Oil and gas asset
Right-of-use assets 23148405.58
Intangible assets 440593119.82 454412947.69
Expense on Research and Development
Goodwill 231255015.75 257800696.32
Long-term expenses to be apportioned 15304783.57 15062171.09
Deferred income tax asset 242248194.57 198393501.50
Other non-current asset 267941354.57 195259441.73
Total non-current asset 12253306972.13 11160165836.04
Total assets 27970858427.84 27350695388.21
Current liabilities:
Short-term loans 1437958206.55 302238600.05
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable 1760032216.30 2462592372.82
Account payable 3206653702.59 4100984240.39
Accounts received in advance 2854518.96 4071236.87
Contractual liability 136427636.39 81717387.25
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
88无锡威孚高科技集团股份有限公司2021年年度报告全文
Wage payable 339888502.70 332421811.82
Taxes payable 40105648.88 67493690.29
Other account payable 359905317.46 361556257.42
Including: Interest payable 6184.14 4862.22
Dividend payable 25671100.00
Commission charge and commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one year 34088773.68 36914242.02
Other current liabilities 212969271.55 222871087.33
Total current liabilities 7530883795.06 7972860926.26
Non-current liabilities:
Insurance contract reserve
Long-term loans 3050640.97
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 15795469.25
Long-term account payable 32015082.11 39479218.17
Long-term wages payable 108311923.19 181980293.94
Accrual liability
Deferred income 298052867.56 328204476.73
Deferred income tax liabilities 23097535.20 30653933.12
Other non-current liabilities
Total non-current liabilities 477272877.31 583368562.93
Total liabilities 8008156672.37 8556229489.19
Owner’s equity:
Share capital 1008659570.00 1008950570.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 3371344172.82 3294242368.28
Less: Inventory shares 270249797.74 303627977.74
Other comprehensive income -36746344.60 13916619.47
89无锡威孚高科技集团股份有限公司2021年年度报告全文
Reasonable reserve 712215.31 2333490.03
Surplus public reserve 510100496.00 510100496.00
Provision of general risk
Retained profit 14814787377.86 13756102424.62
Total owner’ s equity attributable to parent company 19398607689.65 18282017990.66
Minority interests 564094065.82 512447908.36
Total owner’ s equity 19962701755.47 18794465899.02
Total liabilities and owner’ s equity 27970858427.84 27350695388.21
Legal Representative: Wang Xiaodong
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin
2. Balance Sheet of Parent Company
In RMB
Item December 31 2021 December 31 2020
Current assets:
Monetary funds 1002808546.46 1157684053.05
Trading financial assets 5493703374.82 3452348980.19
Derivative financial assets
Note receivable 303726372.69 422246979.39
Account receivable 536957890.22 982782279.22
Receivable financing
Accounts paid in advance 93419268.82 75650090.49
Other account receivable 204125517.63 197335714.63
Including: Interest receivable 113055.56 897777.78
Dividend receivable 26718900.00
Inventories 1076094722.15 725276241.43
Contract assets
Assets held for sale
Non-current assets maturing within one year
Other current assets 149352872.77 2057772839.50
Total current assets 8860188565.56 9071097177.90
90无锡威孚高科技集团股份有限公司2021年年度报告全文
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 6867282228.56 5978128303.88
Investment in other equity instrument 209108000.00 209108000.00
Other non-current financial assets 1690795178.00 1805788421.00
Investment real estate
Fixed assets 1786089596.76 1758198856.53
Construction in progress 239183999.25 154741266.85
Productive biological assets
Oil and natural gas assets
Right-of-use assets 1240879.96
Intangible assets 209952168.75 208112706.57
Research and development costs
Goodwill
Long-term deferred expenses 348970.34
Deferred income tax assets 85012991.24 76508392.85
Other non-current assets 185646711.53 117013906.01
Total non-current assets 11274660724.39 10307599853.69
Total assets 20134849289.95 19378697031.59
Current liabilities
Short-term borrowings 272578883.63 102088888.89
Trading financial liability
Derivative financial liability
Notes payable 569405391.94 448901718.36
Account payable 1012390712.80 1265845068.26
Accounts received in advance
Contract liability 7879319.15 6209575.73
Wage payable 220719432.58 216870819.60
Taxes payable 12427327.61 32974322.59
Other accounts payable 392455373.80 339096991.12
Including: Interest payable 117777.78
Dividend payable
91无锡威孚高科技集团股份有限公司2021年年度报告全文
Liability held for sale
Non-current liabilities due within one year 462484.41
Other current liabilities 143935332.78 182611991.54
Total current liabilities 2632254258.70 2594599376.09
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital securities
Lease liability 1003106.55
Long-term account payable
Long term employee compensation payable 103482333.50 176245345.03
Accrued liabilities
Deferred income 265509545.34 285714239.98
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 369994985.39 461959585.01
Total liabilities 3002249244.09 3056558961.10
Owners’ equity:
Share capital 1008659570.00 1008950570.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital public reserve 3487154855.59 3407732016.61
Less: Inventory shares 270249797.74 303627977.74
Other comprehensive income
Special reserve
Surplus reserve 510100496.00 510100496.00
Retained profit 12396934922.01 11698982965.62
Total owner’s equity 17132600045.86 16322138070.49
Total liabilities and owner’s equity 20134849289.95 19378697031.59
3. Consolidated Profit Statement
In RMB
92无锡威孚高科技集团股份有限公司2021年年度报告全文
Item 2021 2020
I. Total operating income 13682426710.95 12883826306.60
Including: Operating income 13682426710.95 12883826306.60
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 12772618230.58 12193088999.51
Including: Operating cost 11220367713.57 10429284441.97
Interest expense
Commission charge and commission expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Tax and extras 60256733.73 65323781.87
Sales expense 264651432.56 406353445.10
Administrative expense 611872150.24 782824422.63
R&D expense 595406951.64 532581209.78
Financial expense 20063248.84 -23278301.84
Including: Interest expenses 38698621.09 11466886.33
Interest income 41478845.32 51622216.58
Add: other income 71276971.68 80342497.11
Investment income (Loss is listed with “-”) 1954523836.59 1964805688.57
Including: Investment income on affiliated company and joint
1632117748.781659752704.14
venture
The termination of income recognition for financial assets
-959296.18-946468.33
measured by amortized cost(Loss is listed with “-”)
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listed with “-”)
Income from change of fair value (Loss is listed with “-”) -40270333.81 383325765.19
Loss of credit impairment (Loss is listed with “-”) 4059750.80 -11184647.60
Losses of devaluation of asset (Loss is listed with “-”) -138117315.80 -178837472.85
Income from assets disposal (Loss is listed with “-”) 3932344.07 11454408.60
III. Operating profit (Loss is listed with “-”) 2765213733.90 2940643546.11
93无锡威孚高科技集团股份有限公司2021年年度报告全文
Add: Non-operating income 656202.07 66467021.62
Less: Non-operating expense 25509569.87 4158888.17
IV. Total profit (Loss is listed with “-”) 2740360366.10 3002951679.56
Less: Income tax expense 90995689.95 180215749.00
V. Net profit (Net loss is listed with “-”) 2649364676.15 2822735930.56
(i) Classify by business continuity
1.continuous operating net profit (net loss listed with ‘-”) 2649364676.15 2822735930.56
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent company 2575371419.80 2772769377.96
2.Minority shareholders’ gains and losses 73993256.35 49966552.60
VI. Net after-tax of other comprehensive income -50662087.73 13839596.07
Net after-tax of other comprehensive income attributable to owners of
-50662964.0713781747.80
parent company
(I) Other comprehensive income items which will not be reclassified
16008.80
subsequently to profit of loss
1.Changes of the defined benefit plans that re-measured
2.Other comprehensive income under equity method that cannot
16008.80
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
-50678972.8713781747.80
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
-50678972.8713781747.80
currency financial statements
7.Other
Net after-tax of other comprehensive income attributable to minority
876.3457848.27
shareholders
94无锡威孚高科技集团股份有限公司2021年年度报告全文
VII. Total comprehensive income 2598702588.42 2836575526.63
Total comprehensive income attributable to owners of parent
2524708455.732786551125.76
Company
Total comprehensive income attributable to minority shareholders 73994132.69 50024400.87
VIII. Earnings per share:
(i) Basic earnings per share 2.57 2.79
(ii) Diluted earnings per share 2.57 2.79
As for the enterprise combined under the same control net profit of 0 yuan achieved by the merged party before combination while 0
yuan achieved last period
Legal Representative: Wang Xiaodong
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin
4. Profit Statement of Parent Company
In RMB
Item 2021 2020
I. Operating income 4832340790.45 4536417803.79
Less: Operating cost 3605342507.48 3236311612.73
Taxes and surcharge 29689175.82 38086034.27
Sales expenses 44807972.25 126442956.05
Administration expenses 324244883.74 533649297.97
R&D expenses 225949431.82 205001982.50
Financial expenses -15417294.04 -34275071.44
Including: interest expenses 7427980.88 4163923.00
Interest income 26881455.19 40948820.72
Add: other income 41029454.01 58782085.85
Investment income (Loss is listed with “-”) 1758393772.54 1816759403.42
Including: Investment income on affiliated Company and joint
1366704678.231457471604.06
venture
The termination of income recognition for financial assets
measured by amortized cost (Loss is listed with “-”)
Net exposure hedging income (Loss is listed with “-”)
Changing income of fair value (Loss is listed with “-”) -40747662.86 383241806.28
Loss of credit impairment (Loss is listed with “-”) -654218.49 2076529.99
95无锡威孚高科技集团股份有限公司2021年年度报告全文
Losses of devaluation of asset (Loss is listed with “-”) -40950682.53 -82232381.43
Income on disposal of assets (Loss is listed with “-”) 850642.47 -520470.69
II. Operating profit (Loss is listed with “-”) 2335645418.52 2609307965.13
Add: Non-operating income 527726.36 30937706.44
Less: Non-operating expense 24178368.73 3493103.39
III. Total Profit (Loss is listed with “-”) 2311994776.15 2636752568.18
Less: Income tax 101437713.12 162713161.17
IV. Net profit (Net loss is listed with “-”) 2210557063.03 2474039407.01(i)continuous operating net profit (net loss listed with ‘-”) 2210557063.03 2474039407.01(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
7.Other
VI. Total comprehensive income 2210557063.03 2474039407.01
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
96无锡威孚高科技集团股份有限公司2021年年度报告全文
5. Consolidated Cash Flow Statement
In RMB
Item 2021 2020
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 15555511937.16 11908396653.71
Net increase of customer deposit and interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from other financial institution
Cash received from original insurance contract fee
Net cash received from reinsurance business
Net increase of insured savings and investment
Cash received from interest commission charge and commission
Net increase of capital borrowed
Net increase of returned business capital
Net cash received by agents in sale and purchase of securities
Write-back of tax received 50070441.00 32138413.08
Other cash received concerning operating activities 86168562.99 102573818.52
Subtotal of cash inflow arising from operating activities 15691750941.15 12043108885.31
Cash paid for purchasing commodities and receiving labor service 12479791466.70 8277296527.38
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 1436357958.29 1295921487.63
Taxes paid 499681099.37 788150479.38
Other cash paid concerning operating activities 648207823.38 899929156.91
Subtotal of cash outflow arising from operating activities 15064038347.74 11261297651.30
Net cash flows arising from operating activities 627712593.41 781811234.01
II. Cash flows arising from investing activities:
Cash received from recovering investment 18129191548.43 8051178224.52
Cash received from investment income 1238803864.71 2462910424.30
Net cash received from disposal of fixed intangible and other long-term 15303195.04 42851678.36
97无锡威孚高科技集团股份有限公司2021年年度报告全文
assets
Net cash received from disposal of subsidiaries and other units 9000000.00
Other cash received concerning investing activities 1680766.91 65102250.70
Subtotal of cash inflow from investing activities 19393979375.09 10622042577.88
Cash paid for purchasing fixed intangible and other long-term assets 753581993.49 492683539.12
Cash paid for investment 18668448932.90 9246030000.00
Net increase of mortgaged loans
Net cash received from subsidiaries and other units obtained 297302758.31
Other cash paid concerning investing activities 14579308.94
Subtotal of cash outflow from investing activities 19422030926.39 10050595606.37
Net cash flows arising from investing activities -28051551.30 571446971.51
III. Cash flows arising from financing activities
Cash received from absorbing investment 312640853.85
Including: Cash received from absorbing minority shareholders’
10161653.85
investment by subsidiaries
Cash received from loans 1711808897.47 395691406.43
Other cash received concerning financing activities 5470000.00 5730135.13
Subtotal of cash inflow from financing activities 1717278897.47 714062395.41
Cash paid for settling debts 575619575.18 371154665.80
Cash paid for dividend and profit distributing or interest paying 1561591089.99 1120464009.41
Including: Dividend and profit of minority shareholder paid by
13970282.3115748768.80
subsidiaries
Other cash paid concerning financing activities 17596686.60 449251421.46
Subtotal of cash outflow from financing activities 2154807351.77 1940870096.67
Net cash flows arising from financing activities -437528454.30 -1226807701.26
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate -13059669.78 -2003139.41
V. Net increase of cash and cash equivalents 149072918.03 124447364.85
Add: Balance of cash and cash equivalents at the period -begin 944946018.70 820498653.85
VI. Balance of cash and cash equivalents at the period -end 1094018936.73 944946018.70
6. Cash Flow Statement of Parent Company
In RMB
Item 2021 2020
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 5563589299.47 4470039778.75
98无锡威孚高科技集团股份有限公司2021年年度报告全文
Write-back of tax received
Other cash received concerning operating activities 42028025.86 61033856.80
Subtotal of cash inflow arising from operating activities 5605617325.33 4531073635.55
Cash paid for purchasing commodities and receiving labor service 3605626128.99 2312159843.14
Cash paid to/for staff and workers 788560324.22 730528257.00
Taxes paid 283285319.76 562371147.42
Other cash paid concerning operating activities 172424308.24 341484021.47
Subtotal of cash outflow arising from operating activities 4849896081.21 3946543269.03
Net cash flows arising from operating activities 755721244.12 584530366.52
II. Cash flows arising from investing activities:
Cash received from recovering investment 14660350548.43 7324178224.52
Cash received from investment income 1117355887.53 2434385770.96
Net cash received from disposal of fixed intangible and other long-term
675341.73810004.53
assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 32072638.81 214831510.69
Subtotal of cash inflow from investing activities 15810454416.50 9974205510.70
Cash paid for purchasing fixed intangible and other long-term assets 466841006.41 262442259.33
Cash paid for investment 15006974321.57 8853827446.85
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities 112342336.68
Subtotal of cash outflow from investing activities 15473815327.98 9228612042.86
Net cash flows arising from investing activities 336639088.52 745593467.84
III. Cash flows arising from financing activities
Cash received from absorbing investment 302479200.00
Cash received from loans 376524000.00 102000000.00
Other cash received concerning financing activities 100000000.00
Subtotal of cash inflow from financing activities 476524000.00 404479200.00
Cash paid for settling debts 202000000.00 116000000.00
Cash paid for dividend and profit distributing or interest paying 1520286898.73 1097442763.44
Other cash paid concerning financing activities 4385823.06 400017180.33
Subtotal of cash outflow from financing activities 1726672721.79 1613459943.77
Net cash flows arising from financing activities -1250148721.79 -1208980743.77
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate -4982656.55 -2070408.32
99无锡威孚高科技集团股份有限公司2021年年度报告全文
V. Net increase of cash and cash equivalents -162771045.70 119072682.27
Add: Balance of cash and cash equivalents at the period -begin 651188544.53 532115862.26
VI. Balance of cash and cash equivalents at the period -end 488417498.83 651188544.53
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Period
In RMB
2021
Owners’ equity attributable to the parent Company
Other
equity instrument Other
Minori Total
Perpe Less: compr Provisi
Item Share Reaso Surplu Retain ty owners
tual Capital Invent ehensi on of Subtot
capita Prefe nable s ed Other interes ’
capit reserve ory ve genera al
l rred Other reserve reserve profit ts equity
al shares incom l risk
stock
secur e
ities
1008
I. Balance at the 3294 30362 13916 51010 13756 18282 51244 18794
9502333
end of the last 24236 7977. 619.4 0496. 1024 0179 7908. 4658
570.0490.03
year 8.28 74 7 00 24.62 90.66 36 99.02
0
Add:
Changes of
accounting
policy
Error
correction of the
last period
Enterprise
combine under
the same control
Other
1008
II. Balance at 3294 30362 13916 51010 13756 18282 51244 18794
9502333
the beginning of 24236 7977. 619.4 0496. 1024 0179 7908. 4658
570.0490.03
this year 8.28 74 7 00 24.62 90.66 36 99.02
0
III. Increase/
Decrease in this -291 77101 -3337 -5066 1058 1116 51646 1168
-1621
year (Decrease 000.0 804.5 8180. 2964. 68495 58969 157.4 23585
274.72
is listed with 0 4 00 07 3.24 8.99 6 6.45
“-”)
(i) Total -5066 2575 2524 73994 2598
comprehensive 2964. 37141 70845 132.6 70258
income 07 9.80 5.73 9 8.42
(ii) Owners’
-29170463-3337103551732112087
devoted and
000.0804.58180.0984.034.42018.
decreased
040054498
capital
1.Common -291 15000 14709
-2910
shares invested 000.0 000.0 000.0
00.00
by shareholders 0 0 0
2. Capital
invested by
holders of other
equity
instruments
3. Amount 74241 74241 76562
2321
reckoned into 533.6 533.6 568.0
034.44
owners equity 0 0 4
100无锡威孚高科技集团股份有限公司2021年年度报告全文
with
share-based
payment
-33372960029600
-3777
4. Other 8180. 450.9 450.9
729.06
0044
-1517-1517-3964-1557
(III) Profit
42279422791382.06418
distribution
9.429.42311.73
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution -1513 -1513 -3964 -1552
for owners (or 34143 34143 1382. 98282
shareholders) 9.50 9.50 31 1.81
-4081-4081-4081
4. Other
359.92359.92359.92
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable -1621 -1621 -2762 -1648
reserve 274.72 274.72 7.36 902.08
1. Withdrawal 22714 22714 24999
2284
in the report 778.2 778.2 116.1
337.85
period 7 7 2
243362433626648
2. Usage in the 2311
052.9052.9018.2
report period 965.21
990
66387363373747374
(VI)Others
000.002.86332.86332.86
1008
IV. Balance at 3371 27024 -3674 51010 14814 19398 56409 19962
65971221
the end of the 34417 9797. 6344. 0496. 7873 6076 4065. 7017
570.05.31
report period 2.82 74 60 00 77.86 89.65 82 55.47
0
101无锡威孚高科技集团股份有限公司2021年年度报告全文
Last Period
In RMB
2020
Owners’ equity attributable to the parent Company
Other
equity instrument Other
Minorit
Perp Less: compr Provisi Total
Item Share Reaso Surplu Retain y
etual Capital Invent ehensi on of Subtot owners’
capita Prefe nable s ed Other interest
capit reserve ory ve genera al equity
l rred Other reserve reserve profit s
al shares incom l risk
stock
secur e
ities
1008
I. Balance at 3391 51010 12076 16990 17484
950134873247494248
the end of the 52780 0496. 4436 4051 653310
570.01.67757.06174.05
last year 6.33 00 35.56 36.62 .67
0
Add:
Changes of
accounting
policy
Error
correction of
the last period
Enterprise
combine under
the same
control
Other
1008
II. Balance at 3391 51010 12076 16990 17484
950134873247494248
the beginning 52780 0496. 4436 4051 653310
570.01.67757.06174.05
of this year 6.33 00 35.56 36.62 .67
0
III. Increase/
Decrease in this -9728 30362 13781 1679 1291 13098
-914218199
year (Decrease 5438. 7977. 747.8 65878 61285 12588.
67.03734.31
is listed with 05 74 0 9.06 4.04 35
“-”)
(i) Total 13781 2772 2786 28365
50024
comprehensive 747.8 76937 55112 75526.
400.87
income 0 7.96 5.76 63
(ii) Owners’
-972830362-4009-41695
devoted and -16046
5438.7977.134159903.6
decreased 487.85
0574.794
capital
1.Common -9638 30247 -3988 -37378
25079
shares invested 9202. 9200. 68402 8906.5
496.04
by shareholders 59 00 .59 5
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity 6280 6280 204375 64848
with 461.58 461.58 .92 37.50
share-based
payment
-71761148-8325-41330-49655
4. Other
697.04777.74474.78359.81834.59
-1095-1095-11115
(III) Profit -15748
767217672115985.
distribution 768.80
6.496.4929
102无锡威孚高科技集团股份有限公司2021年年度报告全文
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution -1093 -1093 -1108
-15748
for owners (or 24127 24127 990038
768.80
shareholders) 0.00 0.00 .80
-2525-2525-2525
4. Other
946.49946.49946.49
(IV) Carrying
forward
internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable -9142 -9142 -29409 -94367
reserve 67.03 67.03 .91 6.94
1. Withdrawal 21673 21673
2158523831
in the report 368.0 368.0
29.38897.47
period 9 9
2258722587
2. Usage in the 21879 24775
635.1635.1
report period 39.29 574.41
22
2656265626566
(VI)Others
627.59627.5927.59
1008
IV. Balance at 3294 30362 13916 51010 13756 18282 18794
9502333512447
the end of the 24236 7977. 619.4 0496. 1024 0179 465899
570.0490.03908.36
report period 8.28 74 7 00 24.62 90.66 .02
0
103无锡威孚高科技集团股份有限公司2021年年度报告全文
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Period
In RMB
2021
Other equity instrument
Perpet Other
Capital Less: Reasona Total
Item Share Preferr ual compreh Surplus Retaine
public Inventor ble Other owners’
capital ed capital Other ensive reserve d profit
reserve y shares reserve equity
stock securiti income
es
1008911698
I. Balance at the 340773 303627 510100 1632213
50570.98296
end of the last year 2016.61 977.74 496.00 8070.49
005.62
Add: Changes
of accounting
policy
Error
correction of the
last period
Other
II. Balance at the 10089 11698
3407733036275101001632213
beginning of this 50570. 98296
2016.61977.74496.008070.49
year 00 5.62
III. Increase/
69795
Decrease in this -29100 794228 -33378 8104619
1956.3
year (Decrease is 0.00 38.98 180.00 75.37
9
listed with “-”)
(i) Total 22105
2210557
comprehensive 57063.
063.03
income 03
(ii) Owners’
-29100727848-333781058720
devoted and
0.0038.98180.0018.98
decreased capital
1.Common shares
invested by
shareholders
2. Capital invested
by holders of other
equity instruments
3. Amount
reckoned into
7656257656256
owners equity with
68.048.04
share-based
payment
-29100-37777-333782930945
4. Other
0.0029.06180.000.94
-1513
(III) Profit -1513341
34143
distribution 439.50
9.50
1. Withdrawal of
surplus reserves
2. Distribution for -1513
-1513341
owners (or 34143
439.50
shareholders) 9.50
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital reserves
conversed to
capital (share
capital)
2. Surplus reserves
104无锡威孚高科技集团股份有限公司2021年年度报告全文
conversed to
capital (share
capital)
3. Remedying loss
with surplus
reserve
4．Carry-over
retained earnings
from the defined
benefit plans
5．Carry-over
retained earnings
from other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal in 643641 6436417.
the report period 7.80 80
2. Usage in the 643641 6436417.
report period 7.80 80
663800736337374332.
(VI)Others
0.002.8686
IV. Balance at the 10086 12396
3487152702495101001713260
end of the report 59570. 93492
4855.59797.74496.000045.86
period 00 2.01
Last period
In RMB
2020
Other equity
instrument
Other
Perpet Capital Less: Total
Item Share compre Reasonab Surplus Retained
Preferr ual public Inventor Other owners’
capital hensive le reserve reserve profit
ed capital Other reserve y shares equity
income
stock securit
ies
I. Balance at the 1008 34882
510100103818615389136
end of the last 95057 21286.
496.003816.29168.68
year 0.00 39
Add:
Changes of
accounting policy
Error
correction of the
last period
Other
II. Balance at the 1008 34882
510100103818615389136
beginning of this 95057 21286.
496.003816.29168.68
year 0.00 39
III. Increase/
Decrease in this -80489 303627 1317119 93300190
year (Decrease is 269.78 977.74 149.33 1.81
listed with “-”)
(i) Total
247403924740394
comprehensive
407.0107.01
income
(ii) Owners’
-80489303627-38411724
devoted and
269.78977.747.52
decreased capital
1.Common shares
-96389302479-39886840
invested by
202.59200.002.59
shareholders
105无锡威孚高科技集团股份有限公司2021年年度报告全文
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
648486484837.5
owners equity
37.500
with share-based
payment
941501148778266317.5
4. Other
95.317.747
(III) Profit -109324 -1093241
distribution 1270.00 270.00
1. Withdrawal of
surplus reserves
2. Distribution for
-109324-1093241
owners (or
1270.00270.00
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with surplus
reserve
4．Carry-over
retained earnings
from the defined
benefit plans
5．Carry-over
retained earnings
from other
comprehensive
income
6. Other
(V) Reasonable -117744 -1177442.reserve 2.02 02
1. Withdrawal in 5849756 5849756.5
the report period .55 5
2. Usage in the 7027198 7027198.5
report period .57 7
1177442-636789-62501545
(VI)Others.0287.68.66
IV. Balance at the 1008 34077
303627510100116989816322138
end of the report 95057 32016.
977.74496.002965.62070.49
period 0.00 61
106无锡威孚高科技集团股份有限公司2021年年度报告全文
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 million yuan and inner employee share capital amounting to 15 million yuan.Between year of 1994 and 1995 the Company was restructured and became a holding subsidiary of Wuxi Weifu
Group Co. Ltd (hereinafter referred to as “Weifu Group”).By the approval of Jiangsu ERC and Shenzhen Securities Administration Office in August 1995 the Company
issued 68 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 Board of Directors of the Company has examined and approved 2004 Profit Pre-distribution Plan
and examined and approved by 2004 Shareholders’ General Meeting the Company distributed 3 shares for each
10 shares to the whole shareholders totaling to 130909845 shares in 2005.
According to the Share Merger Reform Scheme of the Company that passed 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 State-owned Assets Supervision &
Administration Commission of Jiangsu Province the Weifu Group etc. 8 non-circulating shareholders 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 satisfied certain
conditions the scheme has been implemented on April 5 2006.
107无锡威孚高科技集团股份有限公司2021年年度报告全文
On 27 May 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 became the first largest shareholder of the Company since then.In accordance with the resolutions of shareholders' meeting and provisions of amended constitution and approved
by [2012] No. 109 document of China Securities Regulatory Commission in February 2012 the Company issued
RMB ordinary shares (A-share) of 112858000 shares to Wuxi Industry Groups and overseas strategic investor
privately Robert Bosch Co. Ltd. (ROBERT BOSCHGMBH) (hereinafter referred to as Robert Bosch Company)
face value was ONE 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 passed in Annual General Meeting 2012 of the Company in May 2013. On basis of total share capital
680133995 shares distribute 5-share for every 10 shares held by whole shareholders 340066997 shares in total
are distributed. Total share capital of the Company amounting 1020200992 yuan up to 31 December 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 has 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.After deliberation and approved by the 5th session of 10th BOD for year of 2021 the 291000 restricted shares are
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 comes to 1008659570.00 yuan after changed.
2. Registered place organization structure and head office of the Company
Registered place and head office of the Company: No.5 Huashan Road Xinwu District 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
108无锡威孚高科技集团股份有限公司2021年年度报告全文
development department Party-masses Department Finance Department Purchase DepartmentManufacturing
Quality 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 and Borit NV etc.
3. Business nature and major operation activities of the Company
Operation scope of parent company: Technology development and consulting service in the machinery industry;
manufacture of engine fuel oil system products fuel oil system testers and equipment manufacturing of auto
electronic parts automotive electrical components non-standard equipment non-standard knife tool and exhaust
after-treatment system; sales of the general machinery hardware & electrical equipment chemical products & raw
materials (excluding hazardous chemicals) automotive components and vehicles (excluding nine-seat passenger
car); internal combustion engine maintenance; leasing of the own houses; import and export business in respect of
diversified commodities and technologies (other than those commodities and technologies limited or forbidden by
the State for import and export) by self-operation and works as agent for such business. Research and test
development of engineering and technical; R&D of the energy recovery system; manufacture of auto components
and accessories; general equipment manufacturing (excluding special equipment manufacturing) (any projects
that needs to be approved by laws can only be carried out after getting approval by relevant authorities) General
items: engage in investment activities with self-owned funds (except for items subject to approval according to the
law independently carry out business activities according to laws with business licenses )
Major subsidiaries respectively activate in production and sales of engine accessories automotive components
mufflers purifiers and fuel cell components etc.
4. Authorized reporting parties and reporting dates for the financial report
Financial report of the Company were approved by the Board of Directors for reporting dated April 15 2022.
5. Scope of consolidate financial statement
Shareholding ratio Registered State
(%) Proportion capital ment
Short name of
Name of subsidiary of votes (in 10 Business scope consol
subsidiary Indirectl
Directly (%) thousand idate
y
yuan) (Y/N)
Internal-combust
NANJING WFJN CO. LTD. WFJN 80.00 -- 80.00 34628.70 ion engine Y
accessories
WUXI WEIFU LIDA CATALYTIC Purifier and
WFLD 94.81 -- 94.81 50259.63 Y
CONVERTER CO. LTD. muffler
Internal-combust
WUXI WEIFU MASHAN FUEL INJECTION
WFMA 100.00 -- 100.00 16500 ion engine Y
EQUIPMENT CO. LTD.accessories
Internal-combust
WUXI WEIFU CHANG A?N CO.LTD. WFCA 100.00 -- 100.00 21000 ion engine Y
accessories
WUXI WEIFU INTERNATIONAL TRADE
WFTR 100.00 -- 100.00 3000 Trade Y
CO.LTD.Internal-combust
WUXI WEIFU SCHMITTER POWERTRAIN
WFSC 66.00 -- 66.00 7600 ion engine Y
COMPONENTS CO.LTD.accessories
Internal-combust
NINGBO WFTT TURBOCHARGING
WFTT 98.83 1.17 100.00 11136 ion engine Y
TECHNOLOGY CO.LTD.accessories
109无锡威孚高科技集团股份有限公司2021年年度报告全文
WUXI WFAM PRECISION MACHINERY Automotive
WFAM 51.00 -- 51.00 USD2110 Y
CO.LTD. components
WUXI WEIFU LIDA CATALYTIC WFLD Purifier and
-- 60.00 60.00 1000 Y
CONVERTER (WUHAN) CO. LTD. (WUHAN) muffler
Weifu Lida (Chongqing) Automotive WFLD Purifier and
-- 100.00 100.00 5000 Y
components Co. Ltd. (Chongqing) muffler
Nanchang Weifu Lida Automotive Components WFLD Purifier and
-- 100.00 100.00 5000 Y
Co. Ltd. (Nanchang) muffler
WUXI WEIFU AUTOSMART SEATING
WFAS -- 66.00 66.00 10000 Smart car device Y
SYSTEM CO. LTD.WUXI WEIFU E-DRIVE TECHNOLOGIES
WFDT 80.00 -- 80.00 USD2000 Wheel motor Y
CO. LTD.Weifu Holding ApS SPV 100.00 -- 100.00 DKK238 Investment Y
Fuel cell
IRD Fuel Cells A/S IRD -- 100.00 100.00 DKK8660 Y
components
Fuel cell
IRD FUEL CELLS LLC IRD America -- 100.00 100.00 USD300 Y
components
EUR315.5Fuel cell
Borit NV Borit -- 100.00 100.00 Y
9 components
Fuel cell
Borit Inc. Borit America -- 100.00 100.00 USD0.1 Y
components
IV. Basis of preparation of financial statements
1. Preparation base
The financial statement were stated in compliance with Accounting Standard for Business Enterprises –Basic
Norms issued by Ministry of Finance the specific 42 accounting rules revised and issued dated 15 February 2006
and later the Application Instruments of Accounting Standards and interpretation on Accounting standards and
other 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 (Amended in 2014) 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 accrual basis. Except for certain financial instruments the financial statement measured on historical cost.Assets have impairment been found corresponding depreciation reserves shall accrual according to relevant rules.
2. Going concern
The Company comprehensively assessed the available information and there are no obvious factors that 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:
The Company and its subsidiaries are mainly engaged in the manufacture and sales of engine fuel oil system
products automotive components mufflers purifiers and fuel cell components etc. in line with the actual
110无锡威孚高科技集团股份有限公司2021年年度报告全文
operational characteristics and relevant accounting standards many specific accounting policies and estimation
have been formulated for the transactions and events with revenue recognized concerned. As for the explanation
on major accounting judgment and estimation found more in Note V- 36. Other major accounting policy and
estimation
1. Statement on observation of Accounting Standard for Business Enterprises
Financial statements prepared by the Company were in accordance with requirements of Accounting Standard for
Business Enterprises which truly and completely reflected the financial information of the Company dated 31
December 2021 such as financial status operation achievements and cash flow for the year of 2021.
2. Accounting period
Accounting period of the Company consist of annual and mid-term mid-term refers to the reporting period shorter
than one annual accounting year. The company adopts Gregorian calendar as accounting period namely form each
1 January to 31 December.
3. Business cycles
Normal business cycle is the period from purchasing assets used for process by the Company to the cash and cash
equivalent achieved. The Company’s normal business cycle was one-year (12 months).
4. Recording currency
The Company’s reporting currency is the RMB yuan.
5. Accounting Treatment Method for Business Combinations under the same/different control
Business combination is the transaction or events that two or two above independent enterprises combined as a
reporting entity. Business combination including enterprise combined under the same control and business
combined under different control.
(1) The business combination under the same control
Enterprise combination under the same control is the enterprise who take part in the combination are have the
same ultimate controller or under the same controller the control is not temporary. The assets and liability
acquired by combining party are measured by book value of the combined party on combination date. Balance of
net asset’s book value acquired by combining party and combine consideration paid (or total book value of the
shares issued) shall adjusted capital reserve (share premium); if the capital reserves (share premium) is not
enough for deducted adjusted for retained earnings. Vary directly expenses occurred for enterprise combination
the combining party shall reckoned into current gains/losses while occurring. Combination day is the date when
combining party obtained controlling rights from the combined party.
111无锡威孚高科技集团股份有限公司2021年年度报告全文
(2) Combine not under the same control
A business combination not involving entities under common control is a business combination in which all of the
combining entities are not ultimately controlled by the same party or parties both before and after the
combination.As a purchaser fair value of the assets (equity of purchaser held before the date of purchasing
included) for purchasing controlling right from the purchaser the liability occurred or undertake on purchasing
date less the fair value of identifiable net assets of the purchaser obtained in combination recognized as goodwill
if the results is positive; if the number is negative the acquirer shall firstly review the measurement of the fair
value of the identifiable assets obtained liabilities incurred and contingent liabilities incurred as well as the
combination costs.After that if the combination costs are still lower than the fair value of the identifiable net
assets obtained the acquirer shall recognize the difference as the profit or loss in the current period.Other directly
expenses cost for combination shall be reckoned into current gains/losses. Difference of the fair value of assets
paid and its book values reckoned into current gains/losses. On purchasing date the identifiable assets liability or
contingency of the purchaser obtained by the Company recognized by fair value that required identification
conditions; Acquisition date refers to the date on which the acquirer effectively obtains control of the purchaser.
6. Preparation method for consolidated financial statement
(1) Recognition principle of consolidated scope
On basis of the financial statement of the parent company and owned subsidiaries prepared consolidated
statement in line with relevant information. The scope of consolidation of consolidated financial statements is
ascertained on the basis of effective control. Once certain elements involved in the above definition of control
change due to changes of relevant facts or circumstances the Company will make separate assessment.
(2) Basis of control
Control is the right to govern an invested party so as to obtain variable return through participating in the invested
party’s relevant activities and the ability to affect such return by use of the aforesaid right over the invested
party.Relevant activates refers to activates have major influence on return of the invested party’s.
(3) Consolidation process
Subsidiaries are consolidated from the date on which the company obtains their actual control and are
de-consolidated from the date that such control ceases.All significant inter-group balances investment
transactions and unrealized profits are eliminated in the consolidated financial statements.For subsidiaries being
disposed the operating results and cash flows prior to the date of disposal are included in the consolidated income
statement and consolidated cash flow statement; for subsidiaries disposed during the period the opening balances
of the consolidated balance sheet would not be restated. For subsidiaries acquired from a business combination
not under common control their operating results and cash flows subsequent to the acquisition date are included
in the consolidated income statement and consolidated cash flow statement and the opening balances and
comparative figures of the consolidated balance sheet would not be restated. For subsidiaries acquired from a
business combination under common control their operating results and cash flows from the date of
commencement of the accounting period in which the combination occurred to the date of combination are
112无锡威孚高科技集团股份有限公司2021年年度报告全文
included in the consolidated income statement and consolidated cash flow statement and the comparative figures
of the consolidated balance sheet would be restated.In preparing the consolidated financial statements where the accounting policies or the accounting periods are
inconsistent between the company and subsidiaries the financial statements of subsidiaries are adjusted in
accordance with the accounting policies and accounting period of the company.Concerning the subsidiary obtained under combination with different control adjusted several financial statement
of the subsidiary based on the fair value of recognizable net assets on purchased day while financial statement
consolidation; concerning the subsidiary obtained under combination with same control considered current status
of being control by ultimate controller for consolidation while financial statement consolidation.The unrealized gains and losses from the internal transactions occurred in the assets the Company sold to the
subsidiaries fully offset "the net profit attributable to the owners of the parent company". The unrealized gains and
losses from the internal transactions occurred in the assets the subsidiaries sold to the Company are distributed and
offset between "the net profit attributable to the owners of the parent company" and "minority interest" according
to the distribution ratio of the Company to the subsidiary. The unrealized gains and losses from the internal
transactions occurred in the assets sold among the subsidiaries are distributed and offset between "the net profit
attributable to the owners of the parent company" and "minority interest" according to the distribution ratio of the
Company to the subsidiary of the seller.The share of the subsidiary’s ownership interest not attributable to the Company is listed as “minority interest”
item under the ownership interest in the consolidated balance sheet. The share of the subsidiary’s current profit or
loss attributable to the minority interests is listed as "minority interest" item under the net profit item in the
consolidated income statement. The share of the subsidiary’s current consolidated income attributable to the
minority interests is listed as the “total consolidated income attributable to the minority shareholders” item under
the total consolidated income item in the consolidated income statement. If there are minority shareholders add
the "minority interests" item in the consolidated statement of change in equity to reflect the changes of the
minority interests. If the losses of the current period shared by a subsidiary’s minority shareholders exceed the
share that the minority shareholders hold in the subsidiary ownership interest in the beginning of the period the
balance still charges against the minority interests.When the control over a subsidiary is ceased due to disposal of a portion of an interest in a subsidiary the fair
value of the remaining equity interest is re-measured on the date when the control ceased. The difference between
the sum of the consideration received from disposal of equity interest and the fair value of the remaining equity
interest 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 equity interests 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
113无锡威孚高科技集团股份有限公司2021年年度报告全文
Measurement.The company shall determine whether loss of control arising from disposal in a series of transactions should be
regarded as a bundle of transactions. When the economic effects and terms and conditions of the disposal
transactions met one or more of the following situations the transactions shall normally be accounted for as a
bundle of transactions: * 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 asa bundle of transactions the individual transactions shall be accounted as “disposal of a portion of an interest in asubsidiary which does not lead to loss of control” and “disposal of a portion of an interest in a subsidiary whichlead to loss of control”. When the transactions are regarded as a bundle of transactions 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.
7. Joint arrangement classification and accounting treatment for joint operations
In accordance with the Company’s rights and obligation under a joint arrangement the Company classifies joint
arrangements into: joint ventures and joint operations.The Company confirms the following items related to the share of interests in its joint operations and in
accordance with the provisions of the relevant accounting standards for accounting treatment:
(1) Recognize the assets held solely by the Company and recognize assets held jointly by the Company in
appropriation to the share of the Company;
(2) Recognize the obligations assumed solely by the Company and recognize obligations assumed jointly by the
Company in appropriation to the share of the Company;
(3) Recognize revenue from disposal of the share of joint operations of the Company;
(4) Recognize fees solely occurred by Company;
(5) Recognize fees from joint operations in appropriation to the share of the Company.
8. Recognition standards for cash and cash equivalent
Cash refers to stock cash savings available for paid at any time; cash and cash equivalent refers to the cash held
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.
114无锡威孚高科技集团股份有限公司2021年年度报告全文
9. Foreign currency business and conversion
The occurred foreign currency transactions are converted into the recording currency in accordance with the
middle rate of the market exchange rate published by the People's Bank of China on the transaction date. There into
the occurred foreign currency exchange or transactions involved in the foreign currency exchange are converted in
accordance with the actual exchange rate in the transactions.At the balance sheet date the account balance of the foreign currency monetary assets and liabilities is converted
into the recording currency amount in accordance with the middle rate of the market exchange rate published by
the People's Bank of China on the transaction date. The balance between the recording currency amount converted
according to exchange rate at the balance sheet date and the original recording currency amount is disposed as the
exchange gains or losses. There into the exchange gains or losses occurred in the foreign currency loans related to
the purchase and construction of fixed assets are disposed according to the principle of capitalization of borrowing
costs; the exchange gains and losses occurred during the start-up are included in the start-up costs; the rest is
included in the current financial expenses.At the balance sheet date the foreign currency non-monetary items measured with the historical costs are
converted in accordance with the middle rate of the market exchange rate published by the People's Bank of China
on the transaction date without changing its original recording currency amount; the foreign currency non-monetary
items measured with the fair value are converted in accordance with the middle rate of the market exchange rate
published by the People's Bank of China on the fair value dateand the generated exchange gains and losses are
included in the current profits and losses as the gains and losses from changes in fair value.The following displays the methods for translating financial statements involving foreign operations into the
statements in RMB: The asset and liability items in the balance sheets for overseas operations are translated at the
spot exchange rates on the balance sheet date. Among the owners’ equity items the items other than
“undistributed profits” are translated at the spot exchange rates of the transaction dates. The income and expense
items in the income statements of overseas operations are translated at the average exchange rates of the
transaction dates.The exchange difference arising from the above mentioned translation are recognized in other
comprehensive income and is shown separately under owner’ equity in the balance sheet; such exchange
difference will be reclassified to profit or loss in current year when the foreign operation is disposed according to
the proportion of disposal.The cash flows of overseas operations are translated at the average exchange rates on the dates of the cash flows.The effect of exchange rate changes on cash is presented separately in the cash flow statement.
10. Financial instrument
Financial instrument is the contract that taken shape of the financial asses for an enterprise and of the financial
liability or equity instrument for other units.
(1) Recognition and termination of financial instrument
A financial asset or liability is recognized when the group becomes a party to a financial instrument contract.
115无锡威孚高科技集团股份有限公司2021年年度报告全文
The recognition of a financial assets shall be terminated if it meets one of the following conditions:
* the contractual right to receive the cash flow of the financial assets terminates; and
* the financial assets is transferred and the company transfers substantially all the risks and rewards of ownership
of the financial asset to the transferring party;
* the financial asset was transferred and control although the company has neither transferred nor retained almost
all the risks and rewards of the ownership of a financial asset it relinquishes control over the financial asset.If all or part of the current obligations of a financial liability has been discharged the financial liability or part of it
is terminated for recognition. When the Company (debtor) and the creditor sign an agreement to replace the existing
financial liabilities with new financial liabilities and the new financial liabilities and the existing financial liabilities
are substantially different from the contract terms terminated the recognition of the existing financial liabilities and
recognize the new financial liabilities at the same time.Financial assets are traded in the normal way and their accounting recognition and terminated the recognition of
proceed on a trade date basis.
(2) Classification and measurement of financial assets
At the initial recognition according to the business model of managing financial assets and the contractual cash
flow characteristics of financial assets the Company classifies the financial assets into the financial assets
measured at amortized cost the financial assets measured at fair value and whose changes are included in other
comprehensive income and the financial assets measured at fair value and whose changes are included in current
profit or loss. Financial assets are measured at fair value at initial recognition but if the receivables or receivables
financing arising from the sale of goods or the provision of services do not include a significant financing
component or do not consider a financing component that does not exceed one year it shall be initially measured
in accordance with the transaction value. For financial assets measured at fair value and whose changes are
included in the current profit or loss related transaction costs are directly included in the current profit and loss;
for other types of financial assets related transaction costs are included in the initially recognized amount.The business model for managing financial assets refers to how the Company manages financial assets to generate
cash flows. The business model determines whether the cash flow of financial assets managed by the Company is
based on contract cash flow selling financial assets or both. The Company determines the business model for
managing financial assets based on objective facts and based on the specific business objectives of financial assets
management determined by key management personnel.The Company evaluates the contractual cash flow characteristics of financial assets to determine whether the
contractual cash flows generated by the relevant financial assets on a specific date are only payments for the
principal and the interest based on the outstanding principal amount. The principal is the fair value of the financial
assets at initial recognition; the interest includes the time value of money the credit risk associated with the
outstanding principal amount for a specific period and other basic borrowing risks costs and consideration of profit.In addition the Company evaluates the contractual terms that may result in changes in the time distribution or the
amount of contractual cash flows of the financial assets to determine whether they meet the requirements of the
above contractual cash flow characteristics.
116无锡威孚高科技集团股份有限公司2021年年度报告全文
Only when the Company changes its business model of managing financial assets all affected financial assets are
reclassified on the first day of the first reporting period after the business model changes otherwise the financial
assets are not allowed to be reclassified after initial recognition.* Financial assets measured at amortized cost
The Company classifies the financial assets that meet the following conditions and haven’t been designated as
financial assets measured at fair value and whose changes are included in current profit or loss as financial assets
measured at amortized cost:
A. the group's business model for managing the financial assets is to collect contractual cash flows; and
B. the contractual terms of the financial assets stipulate that cash flow generated on a specific date is only paid for
the principal and interest based on the outstanding principal amount.After initial recognition such financial assets are measured at amortized cost by using the effective interest method.Gains or losses arising from financial assets which are measured at amortized cost and are not a component of any
hedging relationship are included in current profit or loss when being terminated for recognition amortized by
effective interest method or impaired.* Financial assets measured at fair value and whose changes are included in other comprehensive income
The Company classifies the financial assets that meet the following conditions and haven’t been designated as
financial assets measured at fair value and whose changes are included in current profit or loss as financial assets
measured at fair value and whose changes are included in other comprehensive income:
A. the Group's business model for managing the financial assets is targeted at both the collection of contractual
cash flows and the sale of financial assets; and
B. the contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only the
payment of the principal and the interest based on the outstanding principal amount.After initial recognition such financial assets are subsequently measured at fair value. Interests impairment losses
or gains and exchange gains and losses calculated by using the effective interest method are included in profit or loss
for the period and other gains or losses are included in other comprehensive income. When being terminate for
recognition the accumulated gains or losses previously included in other comprehensive income are transferred
from other comprehensive income and included in current profit or loss.* Financial assets measured at fair value and whose changes are included in current profit or loss
Except for the above financial assets measured at amortized cost and measured at fair value and whose changes are
included in other comprehensive income the Company classifies all other financial assets as financial assets
measured at fair value and whose changes are included in current profit or loss. In the initial recognition in order to
eliminate or significantly reduce accounting mismatch the Company irreversibly designates part of the financial
assets that should be measured at amortized cost or measured at fair value and whose changes are included in the
other comprehensive income as the financial assets measured at fair value and whose changes are included in
current profit or loss.After the initial recognition such financial assets are subsequently measured at fair value and the gains or losses
(including interests and dividend income) are included in the current profit and loss unless the financial assets are
117无锡威孚高科技集团股份有限公司2021年年度报告全文
part of the hedging relationship.However for non-trading equity instrument investments the Company irreversibly designates them as the financial
assets that are measured at fair value and whose changes are included in other comprehensive income in the initial
recognition. The designation is made based on a single investment and the relevant investment is in line with the
definition of equity instruments from the issuer's perspective. After initial recognition such financial assets are
subsequently measured at fair value. Dividend income that meets the conditions is included in profit or loss and
other gains or losses and changes in fair value are included in other comprehensive income. When it is terminated
for recognition the accumulated gains or losses previously included in other comprehensive income are transferred
from other comprehensive income and included in retained earnings.
(3) Classification and measurement of financial liabilities
The financial liabilities of the Company are classified as financial liabilities measured at fair value and whose
changes are included in current profit or loss and financial liabilities measured at amortized cost at the initial
recognition. For financial liabilities that are not classified as financial liabilities measured at fair value and whose
changes are included in current profit or loss the related transaction expenses are included in the initial recognition
amount.* Financial liability measured by fair value and with variation reckoned into current gains/losses
Financial liability measured by fair value and with variation reckoned into current gains/losses including tradable
financial liability and the financial liabilities that are designated as fair value in the initial recognition and whose
changes are included in current profit or loss. For such financial liabilities the subsequent measurement is based on
fair value and the gains or losses arising from changes in fair value and the dividends and interest expenses related
to these financial liabilities are included in current profit or loss.* Financial liability measured by amortized cost
Other financial liabilities are subsequently measured at amortized cost by using the effective interest method. The
gain or loss arising from recognition termination or amortization is included in current profit or loss.* Distinctions between financial liabilities and equity instruments
Financial liabilities are liabilities that meet one of the following conditions:
A. Contractual obligations to deliver cash or other financial assets to other parties.B. Contractual obligations to exchange financial assets or financial liabilities with other parties under potentially
adverse conditions.C. Non-derivative contracts that must be settled or that can be settled by the company's own equity instruments in
the future and the enterprise will deliver a variable amount of its own equity instruments according to the contract.D. Derivative contracts that must be settled or that can be settled by the company's own equity instruments in the
future except for derivatives contracts that exchange a fixed amount of cash or other financial assets with a fixed
amount of their own equity instruments.An equity instrument is a contract that proves it has a residual equity in the assets of an enterprise after deducting all
liabilities.
118无锡威孚高科技集团股份有限公司2021年年度报告全文
If the Company cannot unconditionally avoid performing a contractual obligation by delivering cash or other
financial assets the contractual obligation is consistent with the definition of financial liability.If a financial instrument is required to be settled or can be settled by the Company's own equity instruments it is
necessary to consider whether the Company's own equity instruments used to settle the instrument are a substitute
for cash or other financial assets or to make the instrument holder enjoy the residual equity in the assets of the issuer
after deducting all liabilities. In the former case the instrument is the Company's financial liability; if it is the latter
the instrument is the Company's equity instrument.
(4) Fair value of financial instruments
The company uses valuation techniques that are applicable under current circumstances and that have sufficient
available data and other information support to determine the fair value of related financial assets and financial
liabilities. The company divides the input values used by valuation techniques into the following levels and uses
them in sequence:
* The first-level input value is the unadjusted quotation of the same assets or liabilities that can be obtained on the
measurement date in the active market;
* The second-level input value is the direct or indirect observable input value of the relevant assets or liabilities
other than the first-level input value including quotations of similar assets or liabilities in an active market;
quotations of same or similar assets or liabilities in an active market; other observable input value other than
quotations such as interest rate and yield curves that are observable during the normal quote interval;
market-validated input value etc.;
* The third-level input value is the unobservable input value of the relevant assets or liabilities including the
interest rate that cannot be directly observed or cannot be verified by observable market data stock volatility future
cash flow of the retirement obligation assumed in the business combination and financial forecasting made by its
own data etc.
(5) Impairment of financial assets
On the basis of expected credit losses the Company performs impairment treatment on financial assets measured
at amortized cost and creditors’ investment etc. measured at fair value and whose changes are included in other
comprehensive income and recognize the provisions for loss.* Measurement of expected credit losses
Expected credit loss refers to the weighted average of credit losses of financial instruments weighted by the risk of
default. Credit loss refers to the difference between all contractual cash flows that the Company discounts at the
original actual interest rate and are receivable in accordance with contract and all cash flows expected to be
received that is the present value of all cash shortages. Among them for the purchase or source of financial
assets that have suffered credit impairment the Company discounts the financial assets at the actual interest rate
adjusted by credit.When measuring expected credit losses the Company individually evaluates credit risk for financial assets with
significantly different credit risks such as receivables involving litigation and arbitration with the other party or
receivables having obvious indications that the debtor is likely to be unable to fulfill its repayment obligations
119无锡威孚高科技集团股份有限公司2021年年度报告全文
and so on.Except for the financial assets that separately assess the credit risks the Company classified the account
receivable according to their characteristic of risks calculated the expected credit losses on basis of portfolio.Basis for determining the portfolio as follow:
A - Note receivable
Note receivable 1: bank acceptance
Note receivable 2: trade acceptance
B - Account receivable
Account receivable 1: receivable from clients
Account receivable 2: receivable from internal related party
C- Receivable financing
Receivable financing 1: bank acceptance
Receivable financing 2: trade acceptance
D - Other account receivables
Other account receivables 1: receivable from internal related party
Other account receivables 2: receivable from others
As for the note receivable account receivable receivable financing and other account receivable classified in
portfolio by referring to the experience of historical credit loss the expected credit loss is calculated by
combining the current situation and the forecast of future economic conditions.Except for the financial assets adopting simplified metering method the Company assesses at each balance sheet
date whether its credit risk has increased significantly since initial recognition. If credit risk has not increased
significantly since initial recognition it is in the first stage the Company measures the loss provisions based on
the amount equivalent to the expected credit loss in the next 12 months; if the credit risk has increased
significantly since initial recognition but no credit impairment has occurred it is in the second stage the Company
measures the loss provisions based on the amount equivalent to the expected credit loss for the entire duration; if
credit impairment occurs after initial recognition it is in the third stage the Company measures the loss
provisions based on the amount equivalent to the expected credit loss for the entire duration.For financial
instruments with low credit risks at the balance sheet date the Company assumes that their credit risks have not
increased significantly since initial recognition.The Company evaluates the expected credit losses of financial instruments based on individual items and
portfolios. When assessing expected credit losses the Company considers reasonable and evidence-based
information about past events current conditions and forecasts of future economic conditions.When the Company no longer reasonably expects to be able to fully or partially recover the contractual cash flow
of a financial asset the Company directly writes down the book balance of the financial asset.* Assessment of a significant increase in credit risk:
The Company determines the relative changes in default risk of the financial instrument occurred in the expected
120无锡威孚高科技集团股份有限公司2021年年度报告全文
duration and assess whether the credit risks of financial instrument has increased significantly since the initial
recognition by comparing the risk of default of the financial instrument on the balance sheet date with the risk of
default of financial instrument on the initial recognition date. When determining whether the credit risk has
increased significantly since the initial recognition the Company considers reasonable and evidence-based
information that can be obtained without unnecessary additional costs or effort including forward-looking
information. The information considered by the Company includes:
A. The debtor fails to pay the principal and interest according to the contractual maturity date;
B. Serious worsening of external or internal credit rating (if any) of the financial instruments that have occurred or
are expected;
C. Serious deterioration of the debtor’s operating results that have occurred or are expected;
D. Changes in existing or anticipated technical market economic or legal circumstances that will have a material
adverse effect on the debtor's ability to repay the company.Based on the nature of financial instruments the Company assesses whether credit risk has increased significantly
on the basis of a single financial instrument or combination of financial instruments. When conducting an
assessment based on a combination of financial instruments the Company can classify financial instruments based
on common credit risk characteristics such as overdue information and credit risk ratings.The Company believes that financial assets are subject to default in the following circumstances:
The debtor is unlikely to pay the full amount to the Company and the assessment does not consider the Company to
take recourse actions such as realizing collateral (if held).* Financial assets with credit impairment
On the balance sheet date the Company assesses whether the credit of financial assets measured at amortized cost
and the credit of debt investments measured at fair value and whose changes are included in other comprehensive
income has been impaired. When one or more events that adversely affect the expected future cash flows of a
financial asset occur the financial asset becomes a financial asset that has suffered credit impairment. Evidence that
credit impairment has occurred in financial assets includes the following observable information:
A. The issuer or the debtor has significant financial difficulties;
B. The debtor breaches the contract such as default or overdue repayment of interest or principal;
C. The Company gives concessions to the debtor that will not be made in any other circumstances for economic or
contractual considerations relating to the financial difficulties of the debtor;
D. The debtor is likely to go bankrupt or carry out other financial restructurings;
E. The financial difficulties of the issuer or the debtor have caused the active market of the financial asset to
disappear.* Presentation of expected credit loss provisions
In order to reflect the changes in the credit risk of financial instruments since the initial recognition the Company
re-measures the expected credit losses on each balance sheet date and the resulting increase or reversal of the loss
provisions shall be included in current profit and loss as impairment losses or gains. For financial assets measured at
amortized cost the loss provisions are written off against the book value of the financial assets listed in the balance
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sheet; for debt investments measured at fair value and whose changes are included in other comprehensive income
the Company recognizes the loss provisions in other comprehensive income and does not deduct the book value of
the financial asset.* Write-off
If the Company no longer reasonably expects that the financial asset contract cash flow can be fully or partially
recovered directly write down the book balance of the financial asset. Such write-downs constitute the termination
of recognition for related financial assets. This usually occurs when the Company determines that the debtor has no
assets or sources of income to generate sufficient cash flow to repay the amount that will be written down. However
according to the Company's procedures for recovering the due amount the financial assets that have been written
down may still be affected by the execution activities.If the financial assets that have been written down are recovered afterwards they shall be included in the profit or
loss of the period being recovered as the reversal of the impairment loss
(6) Transfer of financial assets
The transfer of financial assets refers to the transfer or delivery of financial assets to the other party (the transferee)
other than the issuer of the financial assets.For financial assets that the Company has transferred almost all risks and rewards of ownership of financial assets to
the transferee terminate the recognition of the financial assets; if almost all the risks and rewards of ownership of
financial assets have been retained do not terminate the recognition of the financial assets.If the Company has neither transferred nor retained almost all the risks and rewards of ownership of financial assets
dispose as following situations: If the control of the financial assets is abandoned terminate the recognition of the
financial assets and determine the resulting assets and liabilities. If the control of the financial assets is not
abandoned determine the relevant financial assets according to the extent to which they continue to be involved in
the transferred financial assets and determine the related liabilities accordingly.
(7) Balance-out between the financial assets and liabilities
As the Group has the legal right to balance out the financial liabilities by the net or liquidation of the financial
assets the balance-out sum between the financial assets and liabilities is listed in the balance sheet. In addition
the financial assets and liabilities are listed in the balance sheet without being balanced out.
11. 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.
12.Account receivable
Account receivable 1: receivable from clients
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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.
13. 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(including one year) from the
date of acquisition. Relevant accounting policy found more in 10. Financial Instrument in Note V.
14.Other account receivables
Determination method of expected credit loss and accounting 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.
15.Inventory
(1) Classification of inventories
The Company’s inventories are categorized into stock materials product in process and stock goods etc.
(2) Pricing for delivered inventories
The cost of inventory at the time of acquisition and delivery is calculated according to the standard cost method
and the difference in cost that it should bear is carried forward at the end of the period and the standard cost is
adjusted to the actual cost.
(3) Recognition evidence for net realizable value of inventories and withdrawal method for inventory impairment
provision
Inventories as at period-end are priced at the lower of costs and net realizable values; at period end on the basis of
overall clearance about inventories inventory impairment provision is withdrew for uncollectible part of costs of
inventories which result from destroy of inventories out-of-time of all and part inventories or sales price
lowering than cost. Inventory impairment provision for stock goods and quantity of raw materials is subject to the
difference between costs of single inventory item over its net realizable value. As for other raw materials with
large quantity and comparatively low unit prices inventory impairment provision is withdrawn pursuant to
categories.As for finished goods commodities and materials available for direct sales their net realizable values are
determined by their estimated selling prices less estimated sales expenses and relevant taxes. For material
inventories held for purpose of production their net realizable values are determined by the estimated selling
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prices of finished products less estimated costs estimated sales expenses and relevant taxes accumulated till
completion of production. As for inventories held for implementation of sales contracts or service contracts their
net realizable values are calculated on the basis of contract prices. In the event that inventories held by a company
exceed order amount as agreed in sales contracts net realizable values of the surplus part are calculated on the
basis of normal sale price.
(4) Inventory system
Perpetual Inventory System is adopted by the Company and takes a physical inventory.
(5) Amortization of low-value consumables and wrappage
* Low-value consumables
The Company adopts one-off amortization method to amortize the low-value consumables.* Wrappage
The Company adopts one-off amortization method to amortize the wrappage at the time of receipt.
16.Contract assets
The Company presents the contract assets or contract liabilities in the balance sheet based on the relationship
between the performance obligation and the customer’s payment.Recognition method and standard of contract assets: contract assets refer to the right of a company to receive
consideration after transferring goods or providing services to customers and this right depends on other factors
besides the passage of time. The company's unconditional (that is only depending on the passage of time) right to
collect consideration from customers are separately listed as receivables.Method for determining expected credit losses of contract assets: the method for determining expected credit
losses of contract assets is consistent with the method for determining expected credit losses of accounts
receivable.Accounting treatment method of expected credit losses of contract assets: if the contract assets are impaired the
company shall debit the "asset impairment loss" subject and credit the "contract asset impairment provision"
subject according to the amount that should be written down. When reversing the provision for asset impairment
that has already been withdrawn make opposite accounting entries.
17.Assets held for sale
The Company classifies non-current assets or disposal groups that meet all of the following conditions as
held-for-sale: according to the practice of selling this type of assets or disposal groups in a similar transaction the
non-current assets or disposal group can be sold immediately at its current condition; The sale is likely to occur
that is the Company has made resolution on the selling plan and obtained definite purchase commitment the
selling is estimated to be completed within one year. Those assets whose disposal is subject to approval from
relevant authority or supervisory department under relevant requirements are subject to that approval.
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Where the Company loses control over its subsidiary due to disposal of investment in the subsidiary whether or
not the Company retains part equity investment after such disposal investment in the subsidiary shall be classified
in its entirety as held for sale in the separate financial statement of the parent company subject to that the
investment in the subsidiary proposed to be disposed satisfies the conditions for being classified as held for sale
and all the assets and liabilities of the subsidiary shall be classified as held for sale in consolidated financial
statement.The purchase commitment identified refers to the legally binding purchase agreement entered into between the
Company and other parties which sets out certain major terms relating to transaction price time and adequately
stringent punishment for default which render an extremely minor possibility for material adjustment or
revocation of the agreement.Assets held for sale are measured at the lower of heir carrying value and fair value less selling expense. If the
carrying value is higher than fair value less selling expense the excess shall be recognized as impairment loss and
recorded in profit or loss for the period and allowance for impairment shall be provided for in respect of the
assets. In respect of impairment loss recognized for disposal group held for sale carrying value of the goodwill in
the disposal group shall be deducted first and then deduct the carrying value of the non-current assets within the
disposal group applicable to this measurement standard on a pro rata basis according to the proportion taken by
their carrying value.If the net amount of fair value of non-current assets held for sale less sales expense on subsequent balance sheet
date increases the amount previously reduced for accounting shall be recovered and reverted from the impairment
loss recognized after the asset is classified under the category of held for sale with the amount reverted recorded
in profit or loss for the period. Impairment loss recognized before the asset is classified under the category of held
for sale shall not be reverted.If the net amount of fair value of the disposal group held for sale on the subsequent
balance sheet date less sales expenses increases the amount reduced for accounting in previous periods shall be
restored and shall be reverted in the impairment loss recognized in respect of the non-current assets which are
applicable to relevant measurement provisions after classification into the category of held for sale with the
reverted amount charged in profit or loss for the current period. The written-off carrying value of goodwill shall
not be reverted.The non-current assets in the non-current assets or disposal group held for sale is not depreciated or amortized
and the debt interests and other fees in the disposal group held for sale continue to be recognized.If the non-current assets or disposal group are no longer classified as held for sale since they no longer meet the
condition of being classified as held for sale or the non-current assets are removed from the disposal group held
for sale they will be measured at the lower of the following:
(i)The amount after their book value before they are classified as held for sale is adjusted based on the
depreciation amortization or impairment that should have been recognized given they are not classified as held
for sale;
(ii) The recoverable amount.
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18. Long-term equity investment
Long-term equity investments refer to long-term equity investments in which the Company has control joint
control or significant influence over the invested party. Long-term equity investment without control or joint
control or significant influence of the Group is accounted for as available-for-sale financial assets or financial
assets measured by fair value and with variation reckoned into current gains/losses. As for other accounting
policies found more in “10. Financial instrument” in Note V.
(1) Determination of initial investment cost
Investment costs of the long-term equity investment are recognized by the follow according to different way of
acquirement:
* 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 resulted 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 treat as “transactions in a basket”. If they belong to “transactions in a basket” these transactions will
be accounted for a transaction in obtaining control. If they are not belong to “transactions in a basket” 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 the long-term equity investment obtained by business combination not under the same control the fair
value of the assets involved the equity instruments issued and the liabilities incurred or assumed on the
transaction date plus the combined cost directly related to the acquisition is used as the initial investment cost of
the long-term equity investment. The identifiable assets of the combined party and the liabilities (including
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contingent liabilities) assumed by the combined party on the combining date are all measured at fair value
regardless of the amount of minority shareholders’ equity. The amount of the combined cost exceeding the fair
value of the identifiable net assets of the combined party obtained by the Company is recorded as goodwill and
the amount below the fair value of the identifiable net assets of the combining party is directly recognized in the
consolidated income statement.(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 “transactions in a basket”. If they belong to
“transactions in a basket” these transactions will be accounted for a transaction in obtaining control. If they are
not belong to “transactions in a basket” 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. For previously held equity investment classified as
available-for-sale financial asset the difference between its fair value and carrying amount as well as the
accumulated movement in fair value previously included in the other comprehensive income shall be transferred
to profit or loss for the current period.)
* Long-term investments obtained through other ways:
A. Initial investment cost of long-term equity investment obtained through cash payment is determined according
to actual payment for purchase;
B. Initial investment cost of long-term equity investment obtained through issuance of equity securities is
determined at fair value of such securities;
C. Initial investment cost of long-term equity investment (exchanged-in) obtained through exchange with
non-monetary assets which is of commercial nature is determined at fair value of the assets exchanged-out;
otherwise determined at carrying value of the assets exchanged-out if it is not of commercial nature;
D. Initial investment cost of long-term equity investment obtained through debt reorganization is determined at
fair value of such investment.
(2) Subsequent measurement on long-term equity investment
* Presented controlling ability on invested party the investment shall use cost method for measurement.* Long-term equity investments with joint control (excluding those constitute joint ventures) or significant
influence on the invested party are accounted for using equity method.Under the equity method where the initial investment cost of a long-term equity investment exceeds the
investor’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 profit or loss for the current period and the cost of the long term equity investment shall be adjusted
accordingly.Under the equity method investment gain and other comprehensive income shall be recognized based on the
Group’s share of the net profits or losses and other comprehensive income made by the invested party
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respectively. Meanwhile the carrying amount of long-term equity investment shall be adjusted. The carrying
amount of long-term equity investment shall be reduced based on the Group’s share of profit or cash dividend
distributed by the invested party. In respect of the other movement of net profit or loss other comprehensive
income and profit distribution of invested party the carrying value of long-term equity investment shall be
adjusted and included in the capital reserves. The Group shall recognize its share of the invested party’s net profits
or losses based on the fair values of the invested party’s individual separately identifiable assets at the time of
acquisition after making appropriate adjustments thereto. In the event of in-conformity between the accounting
policies and accounting periods of the invested party and the Company the financial statements of the invested
party shall be adjusted in conformity with the accounting policies and accounting periods of the Company.Investment gain 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 gain or loss arising from inter-group transactions shall be eliminated by the
portion attributable to the Company. Investment gain shall be recognized accordingly. However any unrealized
loss arising from inter-group transactions between the Group and an invested party is not eliminated 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 included in profit or loss for the current period. 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 included in profit or loss for the current period. In the event
that the Company acquired an asset which formed an operation from its associates or joint ventures relevanttransaction shall be accounted for in accordance with “Accounting Standards for Business Enterprises No. 20“Business combination”. All profit or loss related to the transaction shall be accounted for.The Group’s share of net losses of the invested party shall be recognized to the extent that the carrying amount of
the long-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
estimated obligation assumed shall be provided for and charged to the profit or loss as investment loss for the
period. Where the invested party is making profits in subsequent periods the Group shall resume recognizing its
share of profits after setting off against the share of unrecognized losses.* Acquisition of minority interest
Upon the preparation of the consolidated financial statements since acquisition of minority interest increased of
long-term equity investment which was compared to fair value of identifiable net assets recognized which are
measured based on the continuous measurement since the acquisition date (or combination date) of subsidiaries
attributable to the Group calculated according to the proportion of newly acquired shares the difference of which
recognized as adjusted capital surplus capital surplus insufficient to set off impairment and adjusted retained
earnings.
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* Disposal of long-term equity investments
In these consolidated financial statements for disposal of a portion of the long-term equity investments in a
subsidiary without loss of control the difference between disposal cost and disposal of long-term equity
investments relative to the net assets of the subsidiary is charged to the owners’ equity. If disposal of a portion of
the long-term equity investments in a subsidiary by the parent company results in a change in control it shall beaccounted for in accordance with the relevant accounting policies as described in Note V.-6 “Preparation Methodof the Consolidated Financial Statements”.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 profit or loss in the current period.In respect of long-term equity investment accounted for using equity method with the remaining equity interest
after disposal also accounted for using 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 for the
movement of other owners’ equity (excluding net profit or loss other comprehensive income and profit
distribution of invested party) shall be transferred to profit or loss for the current period on pro rata basis.In respect of long-term equity investment accounted for using cost method with the remaining equity interest after
disposal also accounted for cost equity method other comprehensive income measured and reckoned under equity
method or financial instrument before control of the invested party unit acquired 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 and shall be transferred to profit or loss for the current period on pro rata
basis; among the net assets of invested party unit recognized by equity method (excluding net profit or loss other
comprehensive income and profit distribution of invested party) shall be transferred to profit or loss for the current
period on pro rata basis.In the event of loss of control over invested party due to partial disposal of equity investment by the Group in
preparing separate financial statements the remaining equity interest which can apply common control or impose
significant influence over the invested party after disposal shall be accounted for using equity method. Such
remaining equity interest shall be treated as accounting for using equity method since it is obtained and
adjustment was made accordingly. For remaining equity interest which cannot apply common control or impose
significant influence over the invested party after disposal it 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 control shall be included in profit or loss for the current period. In respect of other
comprehensive income recognized using equity method or the recognition and measurement standard of financial
instruments before the Group obtained 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. 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 profit or loss for the current period at the time when the control over
invested party is lost. Of which for the remaining equity interest after disposal accounted for using equity method
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other comprehensive income and other owners’ equity shall be transferred on pro rata basis. For the remaining
equity interest after disposal accounted for using the recognition and measurement standard of financial
instruments other comprehensive income and other owners’ equity shall be fully transferred.In the event of loss of common control or significant influence over invested party due to partial disposal of equity
investment by the Group the remaining equity interest 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 profit or loss for the current
period. 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 profit or loss for the
current period 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 “transactions in a basket” 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 and the carrying amount of the corresponding
long-term equity investment of disposed equity interest 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.
(3) Impairment test method and withdrawal method for impairment provisionFound more in Note V-25.”impairment of long-term assets”
(4) Criteria of Joint control and significant influence
Joint control is the Company’s contractually agreed sharing of control over an arrangement which relevant
activities of such arrangement must be decided by unanimously agreement from parties who share control. All the
participants or participant group whether have controlling over such arrangement as a group or not shall be judge
firstly than judge that whether the decision-making for such arrangement are agreed unanimity by the participants
or not.Significant influence is the power of the Company to participate in the financial and operating policy decisions of
an invested party but to fail to control or joint control the formulation of such policies together with other
parties.While recognizing whether have significant influence by invested party the potential factors of voting
power as current convertible bonds and current executable warrant of the invested party held by investors and
other parties shall be thank over.
19.Investment real estate
Measurement model of investment real estate
Cost measurement
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Depreciation or amortization
Investment real estate is stated at cost. During which the cost of externally purchased properties
held-for-investment includes purchasing price relevant taxes and surcharges and other expenses which are
directly attributable to the asset. Cost of self construction of properties held for investment is composed of
necessary expenses occurred for constructing those assets to a state expected to be available for use. Properties
held for investment by investors are stated at the value agreed in an investment contract or agreement but those
under contract or agreement without fair value are stated at fair value.The Company adopts cost methodology amid subsequent measurement of properties held for investment while
depreciation and amortization is calculated using the straight-line method according to their estimated useful lives.The basis of provision for impairment of properties held for investment is referred to Note V- “25.Impairment oflong-term assets”
20. Fixed assets
(1) Recognition conditions
Fixed assets refer to the tangible assets for production of products provision of labor lease or operation with a
service life excess one year and has more unit value.
(2) Depreciation methods
Category Depreciation method Years of depreciation Scrap value rate Yearly depreciation rate
House and Building Straight-line depreciation 20~35 5 2.71~4.75
Machinery equipment Straight-line depreciation 10 5 9.50
Transportation equipment Straight-line depreciation 4~5 5 19.00~23.75
Electronic and other
Straight-line depreciation 3～10 5 9.50～31.67
equipment
For the fixed assets with impairment provision the depreciation amount shall be calculated after deducting the
accumulated amount of impairment provision for fixed assets
(3) Recognition basis valuation and depreciation method for financial lease assets 【For year 2020】
The Company affirms those that conform to below one or several criteria as the finance lease fixed assets:
* Agreed in the lease contract (or made a reasonable judgment according to the correlated conditions on the lease
commencement date) the ownership of lease fixed assets can be transferred to the Company after the expiry of
the lease period;
* The Company has the option to purchase or lease the fixed assets and the purchase price is estimated to be
much less than the fair value of the lease of fixed assets when exercises the options so whether the Company will
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exercise the option can be reasonably determined on the lease commencement date;
* Even though the fixed asset ownership is not transferred the lease term accounts for 75% of the service life of
the lease fixed assets;
* The present value of the Company’s of minimum lease payment on the lease commencement date is equivalent
to 90% or more of the fair value of the lease fixed assets on the lease commencement date; the present value of the
leaser’s of minimum lease payment on the lease commencement date is equivalent to 90% or more of the fair
value of the lease fixed assets on the lease commencement date;
* The leased assets with special properties can only be used by the Company without major modifications. The
fixed assets rented by finance leases is calculated as the book value according to the lower one between the fair
value of leased assets on the lease commencement date and the present value of the minimum lease payments.
(4) The impairment test method and provision for impairment of fixed assetsThe impairment test method and provision for impairment of fixed assets found more in Note V-25.“Impairmentof long-term assets”.
21.Construction in progress
From the date on which the fixed assets built by the Company come into an expected usable state the projects
under construction are converted into fixed assets on the basis of the estimated value of project estimates or
pricing or project actual costs etc. Depreciation is calculated from the next month. Further adjustments are made
to the difference of the original value of fixed assets after final accounting is completed upon completion of
projects.The basis of provision for impairment of properties held for construction in process is referred to Note V-“25.Impairment of long-term assets”
22. Borrowing costs
(1) Recognition of capitalization of borrowing costs
Borrowing costs comprise interest occurred amortization of discounts or premiums ancillary costs and exchange
differences in connection with foreign currency borrowings. The borrowing costs of the Company which incur
from the special borrowings occupied by the fixed assets that need more than one year (including one year) for
construction development of investment properties or inventories or from general borrowings are capitalized and
recorded in relevant assets costs; other borrowing costs are recognized as expenses and recorded in the profit or
loss in the period when they are occurred. Relevant borrowing costs start to be capitalized when all of the
following three conditions are met:
* Capital expenditure has been occurred;
* Borrowing costs have been occurred;
* Acquisition or construction necessary for the assets to come into an expected usable state has been carried out.
(2) Period of capitalization of borrowing costs
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Borrowing costs arising from purchasing fixed asset investment real estate and inventory and occurred after such
assets reached to its intended use of status or sales than reckoned into assets costs while satisfy the above
mentioned capitalization condition; capitalization of borrowing costs shall be suspended and recognized as current
expenditure during periods in which construction of fixed assets investment real estate and inventory are
interrupted abnormally when the interruption is for a continuous period of more than 3 months until the
acquisition construction or production of the qualifying asset is resumed; capitalization shall discontinue when
the qualifying asset is ready for its intended use or sale the borrowing costs occurred subsequently shall reckoned
into financial expenses while occurring for the current period.
(3) Measure of capitalization for borrowing cost
In respect of the special borrowings borrowed for acquisition construction or production and development of the
assets qualified for capitalization the amount of interests expenses of the special borrowings actually occurred in
the period less interest income derived from unused borrowings deposited in banks or less investment income
derived from provisional investment are recognized.With respect to the general borrowings occupied for acquisition construction or production and development of
the assets qualified for capitalization the capitalized interest amount for general borrowings is calculated and
recognized by multiplying a weighted average of the accumulated expenditure on the assets in excess of the
expenditure on the some assets of the special borrowings by a capitalization rate for general borrowings. The
capitalization rate is determined by calculation of the weighted average interest rate of the general borrowings.
23. Right-of-use assets
The right-of-use asset refers to the right of the Company as the lessee to use the leased asset during the lease
term.On the commencement date of the lease term the Company recognizes the right-of-use assets for leases other than
short-term leases and leases of low-value assets. Right-of-use assets are initially measured at cost. The cost
includes the initial measurement amount of the lease liability; the lease payments made on or before the
commencement date of the lease term deduct the relevant amount of the lease incentive already enjoyed if there is
a lease incentive; the initial direct expenses incurred by the lessee; the cost expected to be incurred by the lessee to
dismantle and remove the leased assets restore the site where the leased assets locate or restore the leased assets
to the condition agreed upon in the lease terms but this does not include the cost attributable to the production of
inventory.The Company subsequently uses the straight-line method to depreciate the right-of-use assets. If it can be
reasonably determined that the ownership of the leased asset can be obtained at the expiration of the lease term
the Company shall accrue depreciation over the remaining useful life of the leased asset. If it cannot be reasonably
determined that the ownership of the leased asset can be obtained at the expiration of the lease term the Company
shall accrue depreciation within the shorter of the lease term and the remaining useful life of the leased asset.When the recoverable amount is lower than the book value of the right-of-use asset the Company shall write
down its book value to the recoverable amount.
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24. Intangible assets
(1) Measurement use of life and impairment testing
* Measurement of intangible assets
The intangible assets of the Company including land use rights patented technology and non-patents technology
etc.The cost of a purchased intangible asset shall be determined by the expenditure actually occurred and other related
costs.The cost of an intangible asset contributed by an investor shall be determined in accordance with the value
stipulated in the investment contract or agreement except where the value stipulated in the contract or agreement
is not fair.The intangible assets acquired through exchange of non-monetary assets which is commercial in substance is
carried at the fair value of the assets exchanged out; for those not commercial in substance they are carried at the
carrying amount of the assets exchanged out.The intangible assets acquired through debt reorganization are recognized at the fair value.* Amortization methods and time limit for intangible assets:
Land use right of the company had average amortization by the transfer years from the beginning date of transfer
(date of getting land use light); Patented technology non-patented technology and other intangible assets of the
Company are amortized by straight-line method with the shortest terms among expected useful life benefit years
regulated in the contract and effective age regulated by the laws. The amortization amount shall count in relevant
assets costs and current gains/losses according to the benefit object.As for the intangible assets as trademark with uncertain benefit terms amortization shall not be carried.Impairment testing methods and accrual for depreciation reserves for the intangible assets found more in Note
V-“25.Impairment of long-term assets”.
(2)Internal accounting policies relating to research and development expenditures
Expenses incurred during the research phase are recognized as profit or loss in the current period; expenses
incurred during the development phase that satisfy the following conditions are recognized as intangible assets
(patented technology and non-patents technology):
* It is technically feasible that the intangible asset can be used or sold upon completion;
* there is intention to complete the intangible asset for use or sale;
* The products produced using the intangible asset has a market or the intangible asset itself has a market;
* there is sufficient support in terms of technology financial resources and other resources in order to complete
the development of the intangible asset and there is capability to use or sell the intangible asset;
* the expenses attributable to the development phase of the intangible asset can be measured reliably.
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If the expenses incurred during the development phase did not qualify the above mentioned conditions such
expenses incurred are accounted for in the profit or loss for the current period.The development expenditure
reckoned in gains/losses previously shall not be recognized as assets in later period. The capitalized expenses in
development stage listed as development expenditure in balance sheet and shall be transfer as intangible assets
since such item reached its expected conditions for service.
25. Impairment of long-term assets
The Company will judge if there is any indication of impairment as at the balance sheet date in respect of
non-current non-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 according to 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 based on the best available information. Costs of disposal are expenses attributable to disposal of the asset
including legal fee relevant tax and surcharges transportation fee and direct expenses incurred to prepare the
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 using an appropriately
selected discount rate. Provisions for 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 Group shall determine the
recoverable amount of the asset group to which the asset belongs. The asset group is the smallest group of assets
capable of generating cash flows independently.For the purpose of impairment testing the carrying amount of goodwill presented separately in the financial
statements shall be allocated to the asset groups or group of assets benefiting from synergy of business
combination. If the recoverable amount is less than the carrying amount the Group shall recognize an impairment
loss. The amount of impairment loss shall first reduce the carrying amount of any goodwill allocated to the asset
group or set of asset groups and then reduce the carrying amount of other assets (other than goodwill) within the
asset group or set of asset groups pro rata on the basis of the carrying amount of each asset.An impairment loss recognized on the aforesaid assets shall not be reversed in a subsequent period in respect of
the part whose value can be recovered.
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26. Long-term deferred expenses
Long-term expenses to be amortized of the Company the expenses that are already charged and with the beneficial
term of more than one year are evenly amortized over the beneficial term. For the long-term deferred expense
items cannot benefit the subsequent accounting periods the amortized value of such items is all recorded in the
profit or loss during recognition.
27. Contract liability
The Company lists the obligation to transfer goods or provide labor services to customers for the consideration
received or receivable from customers as contractual liabilities such as the amount that the company has received
before the transfer of the promissory goods.
28. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when the staff providing service to the Company the short-term remuneration actual
occurred shall recognized as liability and reckoned into current gains/losses. During the accounting period when
staff providing service to the Company the actual short-term compensation occurred shall recognized as liabilities
and reckoned into current gains/losses except for those in line with accounting standards or allow to reckoned
into capital costs; the welfare occurred shall reckoned into current gains/losses or relevant asses costs while
actually occurred. The employee compensation shall recognize as liabilities and reckoned into current gains/losses
or relevant assets costs while actually occurred. The employee benefits that belong to non-monetary benefits are
measured in accordance with the 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 rule 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 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 included 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 enterprise established for providing post-employment benefits to employees.Thereinto the defined contribution plan refers to the post-employment benefits plan that the enterprise doesn’t
undertake the obligation of payment after depositing the fixed charges to the independent fund; the defined benefit
plans refers to post-employment benefits plans except the defined contribution plan.
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(3)Accounting treatment for retirement benefits
When the Company terminates the employment relationship with employees before the end of the employment
contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy the
Company shall recognize employee compensation liabilities arising from compensation for staff dismissal and
included in profit or loss for the current period when the Company cannot revoke unilaterally compensation for
dismissal due to the cancellation of labor relationship plans and 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 some conditions the supplementary retirement benefits belong to the defined benefit plans
and the defined benefitliability 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 in
accordance with the expected accumulated welfare unit method by the independent actuary by adopting the
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.
29. Lease liability
Substantial On the commencement date of the lease term the Company recognizes the present value of the unpaid
lease payments as lease liabilities. Lease payments include the following five items: fixed payments and
in-substance fixed payments if there is a lease incentive deduct the amount related to the lease incentive; variable
lease payments that depend on an index or ratio which are determined at the initial measurement according to the
index or ratio determination on the commencement date of lease term; exercise price for a purchase option
provided that the lessee is reasonably certain that the option shall be exercised; payments for exercising the option
to terminate the lease provided that the lease term reflects that the lessee shall exercise the option to terminate the
lease option; estimated payments due based on guaranteed residual value provided by the lessee.When calculating the present value of lease payments the interest rate implicit in the lease is used as the discount
rate. If the interest rate implicit in the lease cannot be determined the company’s incremental borrowing rate is
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used as the discount rate. The Company calculates the interest expense of the lease liability in each period of the
lease term according to the fixed periodic interest rate and includes it in the current profit and loss unless it is
otherwise stipulated to be included in the cost of the relevant assets. Variable lease payments that are not included
in the measurement of lease liabilities are included in the current profit and loss when they are actually incurred
unless otherwise stipulated to be included in the cost of the relevant assets. After the commencement date of the
lease term when there is a change in the in-substance fixed payment or a change in the estimated amount payable
for the guaranteed residual value or a change in the index or ratio used to determine the lease payment or a
change in the evaluation results of the purchase option renewal option or termination option or when the actual
exercise situation changes the Company shall re-measure the lease liability according to the present value of the
changed lease payments.
30. Accrual liability
(1) Recognition principle
An obligation related to a contingency such as guarantees provided to outsiders pending litigation or arbitration
product warranties redundancy plans onerous contracts reconstructing expected disposal of fixed assets etc.shall be recognized as an estimated liability when all of the following conditions are satisfied:
* the obligation is a present obligation of the Company;
* it is Contingent that an outflow of economic benefits will be required to settle the obligation;
* the amount of the obligation can be measured reliably.
(2) Measurement method: Measure on the basis of the best estimates of the expenses necessary for paying off the
contingencies
31. Share-based payment
The Company’s share-based payment is a transaction that grants equity instruments or assumes liabilities
determined on the basis of equity instruments in order to obtain services provided by employees or other parties.The Company’s share-based payment is classified as equity-settled share-based payment and cash-settled
share-based payment.
(1) Equity-settled share-based payment and equity instruments
Equity-settled share-based payment in exchange for services provided by employees shall be measured at the fair
value of the equity instruments granted to employees. If the Company uses restricted stocks for share-based
payment employees contribute capital to subscribe for stocks and the stocks shall not be listed for circulation or
transfer until the unlocking conditions are met and unlocked; if the unlocking conditions specified in the final
equity incentive plan are not met the Company shall repurchase the stocks at the pre-agreed price. When the
Company obtains the payment for the employees to subscribe for restricted stocks it shall confirm the share
capital and capital reserve (share capital premium) according to the obtained subscription money and at the same
time recognize a liability in full for the repurchase obligation and recognize treasury shares. On each balance sheet
date during the waiting period the Company makes the best estimate of the number of vesting equity instruments
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based on the changes in the latest obtained number of vested employees whether they meet the specified
performance conditions and other follow-up information. On this basis the services obtained in the current period
are included in related costs or expenses based on the fair value on the grant date and the capital reserve shall be
increased accordingly.For share-based payments that cannot be vested in the end costs or expenses shall not be recognized unless the
vesting conditions are market conditions or non-vesting conditions. At this time regardless of whether the market
conditions or the non-vesting conditions are met as long as all non-market conditions in the vesting conditions are
met it is deemed as vesting.If the terms of equity-settled share-based payment are modified at least the services obtained should be confirmed
in accordance with the unmodified terms. In addition any modification that increases the fair value of the equity
instruments granted or a change that is beneficial to employees on the modification date is recognized as an
increase in services received.If the equity-settled share payment is canceled it will be treated as an accelerated vesting on the cancellation day
and the unconfirmed amount will be confirmed immediately. If an employee or other party can choose to meet the
non-vesting conditions but fails to meet within the waiting period it shall be treated as cancellation of
equity-settled share-based payment. However if a new equity instrument is granted and it is determined on the
date of grant of the new equity instrument that the new equity instrument granted is used to replace the cancelled
equity instrument the granted substitute equity instruments shall be treated in the same way as the modification of
the original equity instrument terms and conditions.
(2) Cash-settled share-based payment and equity instruments
Cash-settled share-based payments are measured at the fair value of the liabilities calculated and determined on
the basis of shares 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 periodand 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 profit and loss.
32. Revenue
Accounting policies used in revenue recognition and measurement
1)Revenue recognition principle
On the starting date of the contract the company evaluates the contract identifies each individual performance
obligation contained in the contract and determines whether each individual performance obligation is performed
within a certain period of time or at a certain point in time.
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When one of the following conditions is met it belongs to the performance obligation within a certain period of
time otherwise it belongs to the performance obligation at a certain point in time: * The customer obtains and
consumes the economic benefits brought by the company's performance while the company performs the contract;
* The customer can control the goods or services under construction during the company’s performance; * The
goods or services produced during the company’s performance have irreplaceable uses and the company has the
right to collect payment for the performance part that has been completed so far during the entire contract period.For performance obligations performed within a certain period of time the company recognizes revenue in
accordance with the performance progress during that period. When the performance progress cannot be
reasonably determined if the cost incurred is expected to be compensated the revenue shall be recognized
according to the amount of the cost incurred until the performance progress can be reasonably determined.For
performance obligations performed at a certain point in time revenue is recognized at the point when the
customer obtains control of the relevant goods or services. When judging whether the customer has obtained
control of the goods the company considers the following signs:* The company has the current right to receive
payment for the goods that is the customer has the current payment obligation for the goods; * The company has
transferred the legal ownership of the goods to the customer that is the customer has the legal ownership of the
goods; * The company has transferred the goods to the customer in kind that is the customer has physically
taken possession of the goods; * The company has transferred the main risks and rewards of the ownership of the
goods to the customer that is the customer has obtained the main risks and rewards of the ownership of the goods;
* The customer has accepted the goods; * Other signs that the customer has obtained control of the goods.
2)Revenue measurement principle
* The company measures revenue based on the transaction price allocated to each individual performance
obligation. The transaction price is the amount of consideration that the company expects to be entitled to receive
due to the transfer of goods or services to customers and does not include payments collected on behalf of third
parties and payments expected to be returned to customers.* If there is variable consideration in the contract the company shall determine the best estimate of the variable
consideration according to the expected value or the most likely amount but the transaction price including the
variable consideration shall not exceed the amount of cumulatively recognized revenue that is unlikely to be
significantly turned back when the relevant uncertainty is eliminated.* If there is a significant financing component in the contract the company shall determine the transaction price
based on the amount payable that the customer is assumed to pay in cash when obtaining the control of the goods
or services. The difference between the transaction price and the contract consideration shall be amortized by the
effective interest method during the contract period. On the starting date of the contract if the company expects
that the customer pays the price within one year after obtaining control of the goods or services the significant
financing components in the contract shall not be considered.* If the contract contains two or more performance obligations the company will allocate the transaction price to
each individual performance obligation based on the relative proportion of the stand-alone selling price of the
goods promised by each individual performance obligation on the starting date of the contract.
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Differences in accounting policies for revenue recognition due to different operating models for the same type of
business
N/A
33. Government grants
(1) Types
Government grants are transfer of monetary assets or non-monetary assets from the government to the Group at
no consideration. Government grants are classified into government grants related to assets and government grants
related to income.As for the assistance object not well-defined in government’s documents the classification criteria for
assets-related or income-related grants are as: whether the grants turn to long-term assets due to purchasing for
construction or other means.
(2) Recognition and measure
The government grants shall be recognized while meet the additional conditions of the grants and amount is
actually can be obtained.If a government grant is in the form of a transfer of monetary asset the item shall be measured at the amount
received or receivable. If a government grant is in the form of a transfer of non-monetary asset the item shall be
measured at fair value. If the fair value can not be reliably acquired than measured by nominal amount.
(3) Accounting treatment
A government grant related to an asset shall be recognized as deferred income and reckoned into current
gains/losses according to the depreciation process in use life of such assets.A government grant related to income if they making up relevant expenses and losses for later period than
recognized deferred income and should reckoned into current gain/loss during the period while relevant expenses
are recognized; if they making up relevant expenses and losses that occurred than reckoned into current
gains/losses.A government grant related to daily operation activity of the Company should reckoned into other income; those
without related to daily operation activity should reckoned into non-operation income and expenses.The financial discount funds received by the Company shall write down relevant borrowing costs.
34. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets or deferred income tax liabilities are realized based on the difference between the
carrying values of assets and liabilities and their taxation bases (as for the ones did not recognized as assets and
liability and with taxation basis recognized in line with tax regulations different between tax base and its book
value) at the tax rates applicable in the periods when the Company recovers such assets or settles such liabilities.
(2) Deferred income tax assets are realized to the extent that it is probable to obtain such taxable income which is
used to set off the deductible temporary difference. As at the balance sheet date if there is obvious evidence
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showing that it is probable to obtain sufficient taxable income to set off the deductible temporary difference in
future periods deferred income tax assets not realized in previous accounting periods shall be realized.
(3) On balance sheet date re-review shall be made in respect of the carrying value of deferred income tax assets.
If it is impossible to obtain sufficient taxable income to set off the benefits of deferred income tax assets in future
periods then the carrying value of deferred income tax assets shall be reduced accordingly. If it is probable to
obtain sufficient taxable income then the amount reduced shall be switched back.
(4) Current income tax and deferred income tax considered as income tax expenses or incomes reckoned into
current gains/losses excluding the follow income tax:
* Enterprise combination;
* Transactions or events recognized in owner’s equity directly
35. Lease
(1)Accounting for operating lease
Accounting policies applicable from January 1 2021
Lease refers to a contract in which the lessor transfers the right to use assets to the lessee for consideration within
a certain period of time. On the commencement date of the contract the company evaluates whether the contract
is a lease or includes a lease. If one party in the contract transfers the right to control the use of one or more
identified assets within a certain period in exchange for consideration the contract is a lease or includes a lease. If
the contract includes multiple separate leases at the same time the company will split the contract and conduct
accounting treatment for each separate lease. If the contract includes both the leased and non leased parts the
lessee and the lessor shall separate the leased and non leased parts.
(1) The company as lessee
For the general accounting treatment of the company as the lessee see note V 23 "right to use assets" and note V
29 "lease liabilities".
For short-term leases with a lease term of no more than 12 months and low value asset leases with a lower value
when a single asset is new the company chooses not to recognize the right to use assets and lease liabilities and
the relevant rental expenses are included in the current profit and loss or the cost of relevant assets according to
the straight-line method in each period of the lease term.If the lease changes and meets the following conditions at the same time the company will treat the lease change
as a separate lease for Accounting: the lease change expands the lease scope by adding the right to use one or
more leased assets; The increased consideration is equivalent to the amount adjusted according to the conditions
of the contract at the separate price for most of the expansion of the lease scope. If the lease change is not
accounted for as a separate lease on the effective date of the lease change the company will re allocate the
consideration of the contract after the change re determine the lease term and re measure the lease liability
according to the present value calculated by the lease payment after the change and the revised discount rate.
(2) The company as lessor
On the lease commencement date the company classifies leases that have substantially transferred almost all the
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risks and rewards related to the ownership of the leased assets as financial leases and all other leases are operating
leases.
1) Operating lease
During each period of the lease term the company recognizes the lease receipts as rental income according to the
straight-line method and the initial direct expenses incurred are capitalized amortized on the same basis as the
recognition of rental income and included in the current profit and loss by stages. The variable lease payments
obtained by the company related to operating leases that are not included in the lease receipts are included in the
current profits and losses when actually incurred.
2) Finance lease
On the beginning date of the lease term the company recognizes the financial lease receivables according to the
net amount of the lease investment (the sum of the unsecured residual value and the present value of the lease
collection not received on the beginning date of the lease term discounted according to the embedded interest rate
of the lease) and terminates the recognition of the financial lease assets. During each period of the lease term the
company calculates and recognizes the interest income according to the interest rate embedded in the lease. The
amount of variable lease payments obtained by the company that are not included in the measurement of net lease
investment shall be included in the current profit and loss when actually incurred.
(3) Sale leaseback
The company evaluates and determines whether the asset transfer in the sale and leaseback transaction is a sale in
accordance with the accounting standards for Business Enterprises No. 14 - revenue.
1) The company as lessee
If the asset transfer in the sale and leaseback transaction is sales the company measures the right to use assets
formed by the sale and leaseback according to the part of the book value of the original assets related to the right
to use obtained by the leaseback and only recognizes the relevant gains or losses on the rights transferred to the
lessor.If the asset transfer in the sale and leaseback transaction does not belong to sales the company will continue to
recognize the transferred asset recognize a financial liability equal to the transfer income and carry out
accounting treatment for the financial liability in accordance with the accounting standards for Business
Enterprises No. 22 - recognition and measurement of financial instruments.
2) The company as lessor
If the asset transfer in the sale and leaseback transaction belongs to sales the company will conduct accounting
treatment for asset purchase in accordance with other applicable accounting standards for business enterprises
and accounting treatment for asset lease in accordance with accounting standards for Business Enterprises No. 21
- leasing.If the asset transfer in the sale and leaseback transaction does not belong to sales the company does not recognize
the transferred asset but recognizes a financial asset equal to the transfer income and carries out accounting
treatment for the financial asset in accordance with the accounting standards for Business Enterprises No. 22 -
recognition and measurement of financial instruments.Accounting policy applied in 2020
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Accounting for operating lease
The rental fee paid for renting the properties by the Company are amortized by the straight-line method and
reckoned in the current expenses throughout the lease term without deducting rent-free period. The initial direct
costs related to the lease transactions paid by the company are reckoned in the current expenses.When the lessor undertakes the expenses related to the lease that should be undertaken by the Company the
Company shall deduct the expenses from the total rental costs share by the deducted rental costs during the lease
term and reckon in the current expenses.Rental obtained from assets leasing during the whole leasing period without rent-free period excluded shall be
amortized by straight-line method and recognized as leasing revenue. The initial direct costs paid with leasing
transaction concerned are reckoned into current expenditure; the amount is larger is capitalized when incurred
and accounted for as profit or loss for the current period on the same basis as recognition of rental income over the
entire lease period.When the Company undertakes the expenses related to the lease that should be undertaken by the lessor the
company shall deduct the expenses from the total rental income and distribute by the deducted rental costs during
the lease term.
(2) Accounting treatment for financing lease
Accounting policy applied in 2020
Accounting for financing lease
Assets lease-in by financing: On the beginning date of the lease the entry value of leased asset shall be at the
lower of the fair value of the leased asset and the present value of minimum lease payment at the beginning date
of the lease. Minimum lease payment shall be the entry value of long-term accounts payable with difference
recognized as unrecognized financing expenses.Unrecognized financing expenses shall be reckoned in financial
expenses and amortized and using effective interest method during the leasing period. The initial direct costs
incurred by the Company shall be reckoned into value of assets lease-in.Finance leased assets: on the lease commencement date the company affirms the balance among the finance lease
receivables the sum of unguaranteed residual value and its present value as the unrealized financing income and
recognizes it as the rental income during the period of receiving the rent. For the initial direct costs related to the
rental transaction the company reckons in the initial measurement of the finance lease receivables and reduces
the amount of income confirmed in the lease term.
36. Other major accounting policy and estimation
In the process of applying the Company's accounting policies due to the inherent uncertainty of business activities
the Company needs to judge estimate and assume the book value of the report items cannot be accurately
measured. These judgments estimates and assumptions are made on the basis of the historical experience of the
Company’s management and by considering other relevant factors which shall impact the reported amounts of
income expenses assets and liabilities and the disclosure of contingent liabilities on the balance sheet date.
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However the actual results caused by the estimated uncertainties may differ from the management's current
estimates of the Company so as to carry out the significant adjustments to the book value of the assets or liabilities
to be affected.The Company regularly reviews the aforementioned judgments estimates and assumptions on the basis of
continuing operations the changes in accounting estimates only affect the current period of which the impacts are
recognized in the current period; the changes in accounting estimates not only affect the current period but also the
future periods of which the impacts are recognized in the current and future periods.On the balance sheet date the important areas of the financial statements that the Company needs to judge estimate
and assume are as follows:
(1) Provision for bad debts
The Company has used the expected credit loss model to assess the impairment of financial instruments. The
application of the expected credit loss model requires significant judgement and estimates and must consider all
reasonable and evidence-based information including forward-looking information.In making such judgments
and estimates the Company infers the expected changes in debtors’ credit risks based on historical repayment data
combined with economic policies macroeconomic indicators industry risks and other factors.
(2) Inventory falling price reserves
According to the inventory accounting policies the Company measures by the comparison between the cost and
the net realizable value if the cost is higher than the net realizable value and the old and unsalable inventories the
Company calculates and withdraws the inventory impairment. The inventory devalues to the net realizable value
by evaluating the inventory’s vendibility and net realizable value. To identify the inventory impairment the
management needs to obtain the unambiguous evidences and consider the purpose to hold the inventory and
judge and estimate the impacts of events after the balance sheet date. The actual results and the differences
between the previously estimated results shall affect the book value of inventory and the provision or return of the
inventory impairment during the period estimated to be changed.
(3) Preparation for the impairment of non-financial & non-current assets
The Company checks whether the non-current assets except for the financial assets may decrease in value at the
balance sheet date. For the intangible assets with indefinite service life in addition to the annual impairment test
the impairment test is also needed when there is a sign of impairment. For the other non-current assets except for
the financial assets the impairment test is needed when it indicates that the book amounts may not be recoverable.When the book value of the asset or group of assets exceeds its recoverable amount i.e. the higher between the net
amount by subtracting the disposal costs from the fair value and the present value of expected future cash flows it
indicates the impairment.As for the net amount by subtracting the disposal costs from the fair value refer to the sales agreement price
similar to the assets in the fair trade or the observable market price and subtract the incremental costs
determination directly attributable to the disposal of the asset.When estimating the present value of the future cash flow the Company needs to make significant judgments to
the output price and related operating expenses of the asset (or asset group) and the discount rate used for
145无锡威孚高科技集团股份有限公司2021年年度报告全文
calculating the present value. When estimating the recoverable amount the Company shall adopt all the relevant
information can be obtained including the prediction related to the output price and related operating expenses
based on the reasonable and supportable assumptions.The Company tests whether its business reputation decreases in value every year which requires to estimating the
present value of the asset group allocated with goodwill or the future cash flow combined by the asset group.When estimating the present value of the future cash flow the Company needs to estimate the future cash flows
generated by the asset group or the combination of asset group and select the proper discount rate to determine the
present value of the future cash flows.
(4) Depreciation and amortization
The Company depreciates and amortizes the investment property fixed assets and intangible assets according to
the straight-line method in the service life after considering the residual value. The Companyregularly reviews the
service life to determine the depreciation and amortization expense amount to be reckoned in each reporting period.The service life is determined by the Company based on the past experience of similar assets and the expected
technological updating. If the previous estimates have significant changes the depreciation and amortization
expense shall be adjusted in future periods.
(5) Fair value of financial instrument
Financial instruments that do not have active markets to provide quotes need to use valuation techniques to
determine fair value.Valuation techniques include the latest transaction information discounted cash flow methods
and option pricing models.The Company has established a set of work processes to ensure that qualified personnel
are responsible for the calculation verification and review of fair value.The valuation model used by the
Company uses the market information as much as possible and uses the Company-specific information as little as
possible.It should be noted that part of the information used in the valuation model requires management’s
estimation (such as discount rate target exchange rate volatility etc.).The Company regularly reviews the above
estimates and assumptions and makes adjustments if necessary.
(6) Income tax
In the Company’s normal business activities the final tax treatment and calculation of some transactions have
some uncertainties. Whether some projects can be disbursed from the cost and expenses before taxes requires
needs to get approval from the tax authorities. If the final affirmation of these tax matters differs from the initially
estimated amount the difference shall have an impact on its current and deferred income taxes during the final
identification period.
37.Changes of important accounting policy and estimation
(1)Changes of important accounting policies
√Applicable □Not applicable
Content and reasons for changes in accounting policies Approval process Note
Implementation of new leasing standard Deliberated and approved by AGM of 2020
146无锡威孚高科技集团股份有限公司2021年年度报告全文
Implementation of new leasing standard:
The Ministry of Finance issued the revised Accounting Standards for Business Enterprise No.21- Lease in December 2018. the
Company has implemented the new leasing standards from January 1 2021. For the contracts existing prior to the date of first
implementation the Company has chosen not to re-assess whether they are leases or contains a leases. The Company adjusted the
amount of retained earnings and other related items in financial statements at the beginning of the year of initial implementation
based on the cumulative effect of initial implementation without adjusting the information for comparable period.Main effects of implementing the new leasing standard on financial statement as of January 1 2021 are as follows:
Consolidated financial statement: In RMB
Item 2020-12-31 Impact amount 2021-1-1
Fixed assets 2882230191.08 -11878720.71 2870351470.37
Right-of-use assets -- 33192094.14 33192094.14
Non-current liability due within one year 36914242.02 4570870.79 41485112.81
Lease liability -- 22604755.70 22604755.70
Long-term payable 39479218.17 -5862253.06 33616965.11
Financial statement of parent company: In RMB
Item 2020-12-31 Impact amount 2021-1-1
Right-of-use assets -- 1710935.83 1710935.83
Lease liability -- 1269864.48 1269864.48
Non-current liability due within one year -- 441071.35 441071.35
(2) Changes of important accounting estimations
□ Applicable √ Not applicable
(3) Adjustment the financial statements at the beginning of the first year of implementation of new leasing
standards since 2021
√Applicable □Not applicable
Whether need to adjust the items in balance sheet at the beginning of the year
√Yes □No
Consolidate balance sheet
In RMB
Item 2020-12-31 2021-01-01 Adjustments
Current assets:
Monetary funds 1963289832.33 1963289832.33
Settlement provisions
Capital lent
Trading financial asset 3518432939.10 3518432939.10
147无锡威孚高科技集团股份有限公司2021年年度报告全文
Derivative financial assets
Note receivable 1657315723.56 1657315723.56
Account receivable 2824780352.41 2824780352.41
Receivable financing 1005524477.88 1005524477.88
Account paid in advance 151873357.76 151873357.76
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivables 54209580.88 54209580.88
Including: Interest receivable
Dividend receivable 49000000.00 49000000.00
Buying back the sale of financial assets
Inventory 2877182174.64 2877182174.64
Contract assets
Assets held for sale
Non-current asset due within one year
Other current assets 2137921113.61 2137921113.61
Total current assets 16190529552.17 16190529552.17
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivables
Long-term equity investment 4801488290.97 4801488290.97
Other equity instrument investment 285048000.00 285048000.00
Other non-current financial assets 1805788421.00 1805788421.00
Investment real estate 20886681.62 20886681.62
Fixed assets 2882230191.08 2870351470.37 -11878720.71
Construction in progress 243795493.04 243795493.04
Productive biological assets
Oil and gas assets
Right-of-use assets 33192094.14 33192094.14
Intangible assets 454412947.69 454412947.69
Development expenses
148无锡威孚高科技集团股份有限公司2021年年度报告全文
Goodwill 257800696.32 257800696.32
Long-term deferred expenses 15062171.09 15062171.09
Deferred income tax assets 198393501.50 198393501.50
Other non-current assets 195259441.73 195259441.73
Total non-current assets 11160165836.04 11181479209.47 21313373.43
Total assets 27350695388.21 27372008761.64 21313373.43
Current liabilities:
Short-term borrowings 302238600.05 302238600.05
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable 2462592372.82 2462592372.82
Account payable 4100984240.39 4100984240.39
Account received in advance 4071236.87 4071236.87
Contract liability 81717387.25 81717387.25
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 332421811.82 332421811.82
Taxes payable 67493690.29 67493690.29
Other account payable 361556257.42 361556257.42
Including: Interest payable 4862.22 4862.22
Dividend payable
Commission charge and commission payable
Reinsurance payable
Liability held for sale
Non-current liability due within one year 36914242.02 41485112.81 4570870.79
Other current liabilities 222871087.33 222871087.33
Total current liabilities 7972860926.26 7977431797.05 4570870.79
Non-current liabilities:
Insurance contract reserve
Long-term loans 3050640.97 3050640.97
149无锡威孚高科技集团股份有限公司2021年年度报告全文
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 22604755.70 22604755.70
Long-term account payable 39479218.17 33616965.11 -5862253.06
Long-term wages payable 181980293.94 181980293.94
Accrual liability
Deferred income 328204476.73 328204476.73
Deferred income tax liabilities 30653933.12 30653933.12
Other non-current liabilities
Total non-current liabilities 583368562.93 600111065.57 16742502.64
Total liabilities 8556229489.19 8577542862.62 21313373.43
Owner’s equity:
Share capital 1008950570.00 1008950570.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 3294242368.28 3294242368.28
Less: Inventory shares 303627977.74 303627977.74
Other comprehensive income 13916619.47 13916619.47
Reasonable reserve 2333490.03 2333490.03
Surplus public reserve 510100496.00 510100496.00
Provision of general risk
Retained profit 13756102424.62 13756102424.62
Total owner’ s equity attributable to parent company 18282017990.66 18282017990.66
Minority interests 512447908.36 512447908.36
Total owner’ s equity 18794465899.02 18794465899.02
Total liabilities and owner’ s equity 27350695388.21 27372008761.64 21313373.43
Explanation on adjustment
The Ministry of Finance issued the revised Accounting Standards for Business Enterprise No.21- Lease in December 2018. the
Company has implemented the new leasing standards from January 1 2021. For the contracts existing prior to the date of first
implementation the Company has chosen not to re-assess whether they are leases or contains a leases. The Company adjusted the
amount of retained earnings and other related items in financial statements at the beginning of the year of initial implementation
based on the cumulative effect of initial implementation without adjusting the information for comparable period.Balance sheet of parent company
150无锡威孚高科技集团股份有限公司2021年年度报告全文
In RMB
Item 2020-12-31 2021-01-01 Adjustments
Current assets:
Monetary funds 1157684053.05 1157684053.05
Trading financial asset 3452348980.19 3452348980.19
Derivative financial assets
Note receivable 422246979.39 422246979.39
Account receivable 982782279.22 982782279.22
Receivable financing
Account paid in advance 75650090.49 75650090.49
Other account receivable 197335714.63 197335714.63
Including: Interest receivable 897777.78 897777.78
Dividend receivable
Inventories 725276241.43 725276241.43
Contract assets
Assets held for sale
Non-current assets maturing within one year
Other current assets 2057772839.50 2057772839.50
Total current assets 9071097177.90 9071097177.90
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 5978128303.88 5978128303.88
Investment in other equity instrument 209108000.00 209108000.00
Other non-current financial assets 1805788421.00 1805788421.00
Investment real estate
Fixed assets 1758198856.53 1758198856.53
Construction in progress 154741266.85 154741266.85
Productive biological assets
Oil and gas assets
Right-of-use assets 1710935.83 1710935.83
Intangible assets 208112706.57 208112706.57
Research and development costs
151无锡威孚高科技集团股份有限公司2021年年度报告全文
Goodwill
Long-term deferred expenses
Deferred income tax assets 76508392.85 76508392.85
Other non-current assets 117013906.01 117013906.01
Total non-current assets 10307599853.69 10309310789.52 1710935.83
Total assets 19378697031.59 19380407967.42 1710935.83
Current liabilities:
Short-term borrowings 102088888.89 102088888.89
Trading financial liability
Derivative financial liability
Notes payable 448901718.36 448901718.36
Account payable 1265845068.26 1265845068.26
Accounts received in advance
Contract liability 6209575.73 6209575.73
Wage payable 216870819.60 216870819.60
Taxes payable 32974322.59 32974322.59
Other accounts payable 339096991.12 339096991.12
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liability due within one year 441071.35 441071.35
Other current liabilities 182611991.54 182611991.54
Total current liabilities 2594599376.09 2595040447.44 441071.35
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 1269864.48 1269864.48
Long-term payable
Long term employee compensation payable 176245345.03 176245345.03
Accrued liabilities
Deferred income 285714239.98 285714239.98
Deferred income tax liabilities
152无锡威孚高科技集团股份有限公司2021年年度报告全文
Other non-current liabilities
Total non-current liabilities 461959585.01 463229449.49 1269864.48
Total liabilities 3056558961.10 3058269896.93 1710935.83
Owners’ equity:
Share capital 1008950570.00 1008950570.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 3407732016.61 3407732016.61
Less: Inventory shares 303627977.74 303627977.74
Other comprehensive income
Special reserve
Surplus reserve 510100496.00 510100496.00
Retained profit 11698982965.62 11698982965.62
Total owner’s equity 16322138070.49 16322138070.49
Total liabilities and owner’s equity 19378697031.59 19380407967.42 1710935.83
Explanation on adjustment
The Ministry of Finance issued the revised Accounting Standards for Business Enterprise No.21- Lease in December 2018. the
Company has implemented the new leasing standards from January 1 2021. For the contracts existing prior to the date of first
implementation the Company has chosen not to re-assess whether they are leases or contains a leases. The Company adjusted the
amount of retained earnings and other related items in financial statements at the beginning of the year of initial implementation
based on the cumulative effect of initial implementation without adjusting the information for comparable period.
(4) Retrospective adjustment of early comparison data description when initially implemented the new
leasing standards since 2021
□ Applicable √ Not applicable
38. Other
Nil
VI. Taxation
1. Major taxes and tax rates
Tax Basis Tax rate
The output tax is calculated based on the taxable income and 25%(IRDDenmark)
VAT VAT is calculated based on the difference after deducting the 21%(BoritBelgium) 13% 9% 6%
input tax available for deduction for the current period Collection rate 5%
153无锡威孚高科技集团股份有限公司2021年年度报告全文
City maintaining &
Turnover tax payable 7%、5%
construction tax15% 20%、21%（IRD America、BoritCorporation income tax Taxable income America） 22%（IRDDenmark） 25%
（BoritBelgium）
Educational surtax Turnover tax payable 5%
Disclose reasons for different taxpaying body
Taxpaying body Income tax rate
WFMA WFCA WFTR WFSC WFAS WFLD(Nanchang) WFDT Borit 25%
The Company WFJN WFLD WFTT WFLD(Chongqing) WFAM 15%
WFLD(Wuhan) 20%
IRD America Borit America 21%
SPV、IRD 22%
2. Tax incentives
The Company WFJN WFLD and WFTT are accredited as a high-tech enterprise in 2020 and enjoy a preferential
income tax rate of 15% from 1 January 2020 to 31 December 2022. WFAM is accredited as a high-tech enterprise
in 2021 and enjoy a preferential income tax rate of 15% from 1 January 2021 to 31 December 2023.According to the “Continuation of the Enterprise Income Tax Policies for Western Development ” No.23 (Year of
2020) issued together by Ministry of Finance SAT and NDRC from January 1 2011 to December 31 2030 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
2021 WFLD (Chongqing) paid its corporate income tax at the tax rate of 15%.
In 2021 Weifu Leader (Wuhan) met the standards of small and low-profit enterprises and the part of taxable
income that did not exceed 1 million Yuan was included in the taxable incomeat a reduced rate of 12.5% and the
corporate income tax was paid at the tax rate of 20%; while the part of the taxable income exceeding 1 million
Yuan but not exceeding 3 million Yuan was included in the taxable income at a reduced rate of 50% and the
corporate income tax was paid at the tax rate of 20%.
3. Other
VII. Notes to major items in consolidated financial statements
1. Monetary funds
Unit: RMB/CNY
Item Ending balance Opening balance
154无锡威孚高科技集团股份有限公司2021年年度报告全文
Cash on hand 150438.79 507.66
Cash in bank 1864868497.94 1905945511.04
Other Monetary funds 31044328.96 57343813.63
Total 1896063265.69 1963289832.33
Including: Total amount saving aboard 69969414.25 33723245.25
Total amount with restriction on use for mortgage
31044328.9657343813.63
pledge or freeze
Other explanation
The ending balance of other monetary funds includes bank acceptance bill deposit 17459061.33 yuan Mastercard deposit
194220.00 yuan frozen dividends 4044016.40 yuan and the foreign exchange contract margin is 9347031.23 yuan. The frozen
dividend of 4044016.40 yuan represents the part of dividends distributed by SDEC (stock code:600841) and Miracle Automation
(stock code:002009) from 2017 to 2021 held by the Company as financial assets available for sale. According to the notices
numbered Yue 03MC [2016]2490 and Yue 03MC [2016]2492 served by Guangdong Shenzhen Intermediate People’s Court these
dividends were frozen.
2. Trading financial asset
Unit: RMB/CNY
Item Ending balance Opening balance
Financial assets measured at fair value and
whose changes are included in current 6076436069.42 3518432939.10
profit or loss
Including:
SDEC 153643308.00 140395956.00
Miracle Automation 113793600.00 47712300.00
Lifan Technology 77802.11
Financial products 0 3330324683.10
Foreign exchange contract 74734940.30
Other debt instruments and equity
5734186419.01
instruments investment
Including:
Total 6076436069.42 3518432939.10
3. Note receivable
(1) Classification of notes receivable
Unit: RMB/CNY
Item Ending balance Opening balance
155无锡威孚高科技集团股份有限公司2021年年度报告全文
Bank acceptance bill 968022652.08 1312571695.46
Trade acceptance bill 148527534.13 344744028.10
Total 1116550186.21 1657315723.56
Unit: RMB/CNY
Ending balance Opening balance
Bad debt Bad debt
Book balance Book balance
reserve reserve
Category Book Book
Accr Accru
Amo value Amou value
Amount Ratio ual Amount Ratio al
unt nt
ratio ratio
Including:
Note receivable with
1116550186.211165501657315
bad debt provision 100.00% 1657315723.56 100.00%
1186.21723.56
accrual on portfolio
Including:
Portfolio 1: bank 9680226 1312571
968022652.0886.70%1312571695.4679.20%
acceptance bill 52.08 695.46
Portfolio 2: trade 1485275 3447440
148527534.1313.30%344744028.1020.80%
acceptance bill 34.13 28.10
1116550186.211165501657315
Total 100.00% 1657315723.56 100.00%
1186.21723.56
Statement of the basis for determining the combination:
On December 31 2020 the company accrued bad debt provisions according to the expected credit losses for the entire duration bank
acceptance bills and trade acceptance bill do not need to accrue bad debt provisions.The company believed that the bank acceptance
bills held did not have significant credit risk and would not cause significant losses due to bank defaults.The trade acceptance bill
held by the Company did not have significant credit risk because these bills were mainly issued by large state-owned enterprises and
listed companies with good reputation and based on historical experience there had been no major defaults so they did not accrue
bad debt provisions for the receivable bank acceptance bills and trade acceptance bill.If the provision for bad debts of note receivable is made in accordance with the general model of expected credit losses please refer to
the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √ Not applicable
(2) Bad debt provision accrual collected or switch back
Provision for bad debts in the current period:
□ Applicable √ Not applicable
(3) Notes receivable already pledged by the Company at the end of the period
Unit: RMB/CNY
156无锡威孚高科技集团股份有限公司2021年年度报告全文
Item Amount pledge at period-end
Bank acceptance bill 655932358.60
Trade acceptance bill 71998451.45
Total 727930810.05
(4) Notes endorsement or discount and undue on balance sheet date
Unit: RMB/CNY
Item Amount derecognition at period-end Amount not derecognition at period-end
Bank acceptance bill 209012512.01
Trade acceptance bill 299864.89
Total 209312376.90
(5) Notes transfer to account receivable due for failure implementation by drawer at period-end
Unit: RMB/CNY
Item Amount transfer to account receivable at period-end
Trade acceptance bill 7300000.00
Total 7300000.00
Other explanation
The trade acceptance bill that the company transferred to the accounts receivable due to in 2018 the failure of the drawer to perform the
agreement at the end of the period were the bills of the subsidiaries controlled by Baota Petrochemical Group Co. Ltd. and the bills
accepted by Baota Petrochemical Group Finance Co. Ltd. (hereinafter referred to as “BDbills”); In 2018 the amount transferred to
account receivable was 7 million yuan and 1.7 million yuan has been recovered in 2019 and an increase of 2 million yuan was
added in 2020.
(6) Note receivable actually written-off in the period
Nil
4. Account receivable
(1) Classification of account receivable
Unit: RMB/CNY
Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Category Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
157无锡威孚高科技集团股份有限公司2021年年度报告全文
Account receivable
with bad debt 613611 613611 8036209 8036209
2.87%100.00%2.74%100.00%
provision accrual on 42.44 42.44 5.35 5.35
a single basis
Including:
Account receivable
with bad debt 207698 231865 2053800 2847529 2274904 28247803
97.13%1.12%97.26%0.80%
provision accrual on 6857.82 64.05 293.77 398.11 5.70 52.41
portfolio
Including:
21383484547720538002927891103111128247803
Total 100.00% 3.95% 100.00% 3.52%
8000.2606.49293.77493.4641.0552.41
Bad debt provision accrual on single basis: RMB 61361142.44
Unit: RMB/CNY
Ending balance
Name
Book balance Bad debt reserve Accrual ratio Accrual causes
Have difficulty in
Hubei Meiyang Auto Industry Co. Ltd. 20139669.45 20139669.45 100.00%
collection
Have difficulty in
Hunan Leopaard Auto Co. Ltd. 8910778.54 8910778.54 100.00%
collection
Have difficulty in
BD bills 7300000.00 7300000.00 100.00%
collection
Linyi Zotye Automobile components Have difficulty in
6193466.776193466.77100.00%
Manufacturing Co. Ltd. collection
Have difficulty in
Tongling Ruineng Purchasing Co. Ltd. 4320454.34 4320454.34 100.00%
collection
Brilliance Automotive Group Holdings Have difficulty in
3469091.333469091.33100.00%
Co. Ltd. collection
Zhejiang Zotye Auto Manufacturing Co. Have difficulty in
3217763.273217763.27100.00%
Ltd. collection
Have difficulty in
Dongfeng Chaoyang Diesel Co. Ltd. 1951447.02 1951447.02 100.00%
collection
Jiangsu Kawei Auto Industrial Group Co. Have difficulty in
1932476.261932476.26100.00%
Ltd. collection
Jiangsu Jintan Automobile Industry Co. Have difficulty in
1059798.431059798.43100.00%
Ltd. collection
Have difficulty in
Tianjin Leiwo Engine Co. Ltd. 1018054.89 1018054.89 100.00%
collection
158无锡威孚高科技集团股份有限公司2021年年度报告全文
Have difficulty in
Other custom 1848142.14 1848142.14 100.00%
collection
Total 61361142.44 61361142.44 -- --
Bad debt provision accrual on portfolio: RMB 23186564.05
Unit: RMB/CNY
Ending balance
Name
Book balance Bad debt reserve Accrual ratio
Within 6 months 1931412052.09
6 months to one year 119054169.59 11905416.94 10.00%
1-2 years 16418405.74 3283681.15 20.00%
2-3 years 3507940.74 1403176.30 40.00%
Over 3 years 6594289.66 6594289.66 100.00%
Total 2076986857.82 23186564.05 --
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses please refer
to the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √ Not applicable
By account age
Unit: RMB/CNY
Account age Book balance
Within one year (One year included) 2050737706.77
Including: within 6 months 1931412052.09
6 months to one year 119325654.68
1-2 years 18459228.41
2-3 years 25770931.96
Over 3 years 43380133.12
3-4 years 43380133.12
Total 2138348000.26
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual in the period:
Unit: RMB/CNY
Amount changed in the period
Category Opening balance Collected or Ending balance
Accrual Written-off Other
reversal
Bad debt
103111141.051857333.456229404.6214157037.63-34325.7684547706.49
provision
159无锡威孚高科技集团股份有限公司2021年年度报告全文
Total 103111141.05 1857333.45 6229404.62 14157037.63 -34325.76 84547706.49
Important bad debt provision collected or switch back: Nil
(3) Account receivable actual charge off in the Period
Unit: RMB/CNY
Item Amount charge off
Jiangxi Dorcen Automobile Industry Co. Ltd. 3867632.16
Changchun FAW Sihuan Engine Manufacturing Co. Ltd 1755724.70
Wuxi Kaipu Machinery Co. Ltd. 1713322.55
Jiangxi Dorcen Automobile Co. Ltd. 1338959.01
Mianyang Xinchen Power Machinery Co. Ltd. 1268437.72
Fujian Zhao’an Country Minyue Bianjie Agricultural Machinery Automobile Components Co. Ltd. 1111007.12
Penglai Branch of Beiben Truck Group Co. Ltd. 678390.63
Guangxi Nanning Kai yuan Auto Parts Co. Ltd. 666203.00
Changzhou Borui Oil Pump & Nozzle Co. Ltd. 646437.00
Retail enterprise 1110923.74
Total 14157037.63
Major charge-off for the major receivable: Nil
(4) Top 5 receivables at ending balance by arrears party
Unit: RMB/CNY
Ending balance of Ratio in total ending balance of account Ending balance of bad debt
Name
account receivable receivables reserve
Custom 1 289459996.19 13.54% 80832.31
Robert Bosch Company 236685486.17 11.07% 426203.85
Custom 3 140266272.68 6.56% 599358.62
Custom 4 133236949.33 6.23% 7142200.43
Custom 5 131705063.69 6.16% 1141038.44
Total 931353768.06 43.56%
(5) Account receivable derecognition due to financial assets transfer
Nil
160无锡威孚高科技集团股份有限公司2021年年度报告全文
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Nil
5. Receivable financing
Unit: RMB/CNY
Item Ending balance Opening balance
Bill receivable- bank acceptance bill 713017014.50 1005524477.88
Total 713017014.50 1005524477.88
Increase and decrease in current period and changes in fair value of receivables financing
□ Applicable √ Not applicable
If the bad debt provision for account receivable is calculated and withdrawn according to the general model of expected credit loss
please refer to the disclosure method of other account receivables in aspect of impairment provision:
□ Applicable √ Not applicable
Other explanation:
During the management of enterprise liquidity the company will discount or endorse transfers before the maturity of some bills the
business model for managing bills receivable is to collect contractual cash flows and sell the financial asset so it is classified as
financial assets measured at fair value and whose changes are included in other comprehensive income which is listed in receivables
financing.
6. Account paid in advance
(1) Account age of account paid in advance
Unit: RMB/CNY
Ending balance Opening balance
Account age
Amount Ratio Amount Ratio
Within one year 172019278.72 96.61% 146877271.37 96.71%
1-2 years 3318636.20 1.86% 2799827.49 1.84%
2-3 years 1140843.34 0.64% 1254109.33 0.83%
Over 3 years 1580491.73 0.89% 942149.57 0.62%
Total 178059249.99 -- 151873357.76 --
Explanation on reasons of failure to settle on important advance payment with age over one year:
Nil
(2) Top 5 account paid in advance at ending balance by prepayment object
Total year-end balance of top five account paid in advance by prepayment object amounted to 88572262.16 yuan takes 49.74
percent of the total advance payment at year-end.
161无锡威孚高科技集团股份有限公司2021年年度报告全文
7. Other account receivables
Unit: RMB/CNY
Item Ending balance Opening balance
Dividend receivable 49000000.00
Other account receivables 17908078.54 5209580.88
Total 17908078.54 54209580.88
(1) Interest receivable
1) Category of interest receivable
Nil
2) Significant overdue interest
Nil
3) Accrual of bad debt provision
□ Applicable √ Not applicable
(2) Dividend receivable
1) Category of dividend receivable
Unit: RMB/CNY
Item (or invested enterprise) Ending balance Opening balance
Wuxi WFEC Catalyst Co. Ltd. 49000000.00
Total 49000000.00
2) Important dividend receivable with account age over one year
Nil
(3) Other account receivables
1) Other account receivables classification by nature
Unit: RMB/CNY
Nature Ending book balance Opening book balance
Intercourse funds from units 1991247.85
162无锡威孚高科技集团股份有限公司2021年年度报告全文
Cash deposit 6212842.61 5650143.62
Staff loans and petty cash 555076.61 766301.05
Social security and provident fund paid 10547050.70
Other 1952403.17 1651737.93
Total 21258620.94 8068182.60
2) Accrual of bad debt provision
Unit: RMB/CNY
Phase I Phase II Phase III
Expected credit Expected credit losses for Expected credit losses for
Bad debt reserve Total
losses over next 12 the entire duration (without the entire duration (with
months credit impairment occurred) credit impairment occurred)
Balance on Jan. 1 2021 2826778.32 31823.40 2858601.72
Balance of Jan. 1 2021
————————
in the period
Current accrual 493305.68 493305.68
Current written-off 1365.00 1365.00
Balance on Dec. 31 2021 3318719.00 31823.40 3350542.40
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √ Not applicable
By account age
Unit: RMB/CNY
Account age Book balance
Within one year (One year included) 15539862.54
Within 6 months 15439862.54
6 months to one year 100000.00
1-2 years 3004533.40
2-3 years 80.00
Over 3 years 2714145.00
3-4 years 2714145.00
Total 21258620.94
3) Bad debt provision accrual collected or switch back
Bad debt provision accrual in the period:
Unit: RMB/CNY
163无锡威孚高科技集团股份有限公司2021年年度报告全文
Amount changed in the period
Opening
Category Collected or Ending balance
balance Accrual Written-off Other
reversal
Bad debt
2858601.72493305.681365.003350542.40
provision
Total 2858601.72 493305.68 1365.00 3350542.40
Including the important bad debt provision switch back or collected in the period: nil
4) Other receivables actually written-off during the reporting period
Unit: RMB/CNY
Item Amount charge off
Other sporadic 1365.00
Note of important other receivables of written-off: Nil
5) Top 5 other receivables at ending balance by arrears party
Unit: RMB/CNY
Ending
Ratio in total ending
balance of
Enterprise Nature Ending balance Account age balance of other
bad debt
receivables
reserve
Ningbo Jiangbei High-Tech Industry Park
Deposit margin 1767000.00 Over 3 years 8.31% 1767000.00
Development Construction Co. Ltd.Within 6
Wuxi China Resources Gas Co. Ltd. Deposit margin 1346300.00 months 1-2 6.33% 205200.00
years
Current
Autocam (China) Auto Parts Co. Ltd. 1298252.55 Within 6 months 6.11%
accounts
Zhenkunxing Industrial Supermarket
Deposit margin 1000000.00 1-2 years 4.70% 200000.00
(Shanghai) Co. Ltd.Current
Robert Bosch Company 692995.30 Within 6 months 3.26%
accounts
Total -- 6104547.85 -- 28.71% 2172200.00
6) Other account receivables related to government grants
Nil
164无锡威孚高科技集团股份有限公司2021年年度报告全文
7) Other receivable for termination of confirmation due to the transfer of financial assets
Nil
8) The amount of assets and liabilities that are transferred other receivable and continued to be involved
Nil
8. Inventory
(1) Category of inventory
Unit: RMB/CNY
Ending balance Opening balance
Inventory Inventory
depreciation depreciation
reserve or reserve or
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment of impairment of
contract contract
performance performance
costs costs
Stock materials 693636748.61 84791307.00 608845441.61 584188987.86 73833368.32 510355619.54
Goods in process 406224039.14 18593866.28 387630172.86 415445852.86 14589096.65 400856756.21
Finished goods 2578635721.74 129714961.12 2448920760.62 2124817656.18 158847857.29 1965969798.89
Total 3678496509.49 233100134.40 3445396375.09 3124452496.90 247270322.26 2877182174.64
(2) Inventory depreciation reserve or provision for impairment of contract performance costs
Unit: RMB/CNY
Current increased Current decreased
Item Opening balance Switch back or Ending balance
Accrual Other Other
write-off
Stock materials 73833368.32 40167342.95 -468345.51 28741058.76 84791307.00
Goods in process 14589096.65 12204540.06 8199770.43 18593866.28
Finished goods 158847857.29 82062784.53 -269665.42 110926015.28 129714961.12
Total 247270322.26 134434667.54 -738010.93 147866844.47 233100134.40
* Net realizable value of the inventory refers to: during the day-to-day activities results of the estimated sale price less costs which
are going to happen by estimation till works completed sales price estimated and relevant taxes.* Accrual basis for inventory depreciation reserve:
Cash on hand Accrual basis for inventory impairment Specific basis for recognition
165无锡威孚高科技集团股份有限公司2021年年度报告全文
provision
Materials in stock The materials sold due to finished goods Results from the estimated sale price of such inventory less the cost
manufactured its net realizable value is what will happen estimated sales expenses and relevant taxes till the
lower than the book value goods completed
Goods in process The goods in process sold due to Results from the estimated sale price of such inventory less the cost
finished goods manufactured its net what will happen estimated sales expenses and relevant taxes till the
realizable value is lower than the book goods completed
value
Cash on hand Accrual basis for inventory impairment Specific basis for recognition
provision
* Reasons of write-off for inventory falling price reserves:
Cash on hand Reasons of write-off
Materials in stock Used for production and the finished goods are realized sales
Goods in process Goods in process completed in the Period and corresponding finished goods are realized sales in the Period
Finished goods Sales in the Period
(3) Explanation on capitalization of borrowing costs at ending balance of inventory
Nil
(4) Assets completed without settlement from construction contract at period-end
Nil
9. Other current assets
Unit: RMB/CNY
Item Ending balance Opening balance
Structured deposits 1925000000.00
Receivable export tax rebates 6457803.72 5286965.71
VAT refund receivable 3985115.26
Prepaid taxes and VAT retained 204700549.12 200524304.70
Input tax to be deducted and certification 6274.43 178073.42
Other 5171179.97 6931769.78
Total 220320922.50 2137921113.61
10. Long-term equity investments
Unit: RMB/CNY
The Opening Current changes (+ -) Ending Ending
166无锡威孚高科技集团股份有限公司2021年年度报告全文
invested balance Investme Other Cash balance balance
entity (book value) Additi nt comprehe dividend (book of
Capital Other
onal gain/loss nsive or profit Impairme value) depreciati
reducti equity Other
invest recognize income announce nt accrual on
on change
ment d under adjustmen d to reserves
equity t issued
I. Joint venture
II. Associated enterprise
Wuxi WFEC
677317176.215155798000007944898
Catalyst Co. 16885.14
2878.680.0040.10
Ltd.Robert
Bosch 280058970 1097650 5581255 3340114
Powertrain 9.40 070.35 44.30 235.45
Ltd.Zhonglian
Automobile 123754885 3398269 1988000 1378575
Electronic 6.31 29.46 00.00 785.77
Co. Ltd.Wuxi Weifu
Precision
74854070.6-547779663800030000004601427
Machinery
58.38.000.002.27
Manufacturi
ng Co. Ltd.Shinwell
Automobile
29886-683885.
Technology 982750.11
5.0110
(Wuxi) Co.Ltd.Changchun
Xuyang
Weifu
10195728.2153091.71034881
Automobile
219.93
components
Technology
Co. Ltd.Precors 5901 -87249.6 -468665. 5345878
GmbH 794.22 3 61 .98
167无锡威孚高科技集团股份有限公司2021年年度报告全文
Wuxi
Chelian
15000
Tianxia -694404 1430559
0000.
Information 4.38 55.62
00
Technology
Co. Ltd.
15590
48014882929886163959266380008849255-468665.5717944
Subtotal 1794. 16885.14
0.975.01892.71.0044.3061788.12
22
15590
48014882929886163959266380008849255-468665.5717944
Total 1794. 16885.14
0.975.01892.71.0044.3061788.12
22
Other explanation
Explanation on those holding less than 20% of the voting rights but with significant influence:
(1) Precors GmbH:
Wholly-owned subsidiary of the Company - Borit holds 8.11% equity of Precors GmbH Borit appointed a director to Precors GmbH.Though the representative Borit can participate in the operation policies formulation of Precors GmbH and thus exercise a
significant influence over Precors GmbH.
(2) Wuxi Chelian Tianxia Information Technology Co. Ltd. (Hereinafter referred to as "Chelian Tianxia"):
The Company holds 8.8295% equity of Chelian Tianxia and appointed a director to Chelian Tianxia. Though the representative the
Company can participate in the operation policies formulation of Chelian Tianxi and thus exercise a significant influence over
Chelian Tianxi.
11. Other equity instrument investment
Unit: RMB/CNY
Item Ending balance Opening balance
Wuxi Xidong Science & Technology Industrial Park 5000000.00 5000000.00
Beijing Zhike Industry Investment Holding Group Co.
75940000.0075940000.00
Ltd.Rare earth Catalysis Innovation Research Institute
4108000.004108000.00
(Dongying) Co. Ltd.
Wuxi Xichang Microchip Semi-Conductor 200000000.00 200000000.00
Total 285048000.00 285048000.00
Disclosure of the non-trading equity instrument investment item by item
Nil
12. Other non-current financial assets
Unit: RMB/CNY
168无锡威孚高科技集团股份有限公司2021年年度报告全文
Item Ending balance Opening balance
Guolian Securities 208795178.00 326848122.00
Tradable financial assets holding for over one year 0 1467000000.00
Investments in other debt instruments and equity
1482000000.0011940299.00
instruments held for more than one year
Total 1690795178.00 1805788421.00
13. Investment real estate
(1) Investment real estate measured by cost
√ Applicable □ Not applicable
Unit: RMB/CNY
Construction in
Item House and Building Land use right Total
progress
I. original book value
1.Opening balance 65524052.61 65524052.61
2.Current increased
(1) outsourcing
(2) Inventory\fixed
assets\construction in process transfer-in
(3) increased by combination
3.Current decreased
(1) disposal
(2) other transfer-out
4.Ending balance 65524052.61 65524052.61
II. Accumulated depreciation and
accumulated amortization
1.Opening balance 44637370.99 44637370.99
2.Current increased 1498935.06 1498935.06
(1) accrual or amortization 1498935.06 1498935.06
3.Current decreased
(1) disposal
(2) other transfer-out
4.Ending balance 46136306.05 46136306.05
III. Depreciation reserves
1.Opening balance
169无锡威孚高科技集团股份有限公司2021年年度报告全文
2.Current increased
(1) accrual
3. Current decreased
(1) disposal
(2) other transfer-out
4.Ending balance
IV. Book value
1.Ending Book value 19387746.56 19387746.56
2.Opening Book value 20886681.62 20886681.62
(2) Investment real estate measured at fair value
□ Applicable √ Not applicable
(3) Investment real estate without property certification held
Nil
14. Fixed assets
Unit: RMB/CNY
Item Ending balance Opening balance
Fixed assets 2932210452.51 2870351470.37
Total 2932210452.51 2870351470.37
(1) Fixed assets
Unit: RMB/CNY
House and Machinery Transportation Electronic and other
Item Total
Building equipment equipment equipment
I. original book value:
1.Opening balance 1584594589.53 3331362060.16 30281281.50 532011701.70 5478249632.89
2.Current increased 34390390.58 272796414.41 6970031.67 195616134.81 509772971.47
(1) Purchase 10668713.03 833555.11 11502268.14
(2) Construction in
34390390.58254759762.246970031.67194782579.70490902764.19
progress transfer-in
(3) increased by
combination
170无锡威孚高科技集团股份有限公司2021年年度报告全文
(4) Financial lease
7367939.147367939.14
transfer in
3.Current decreased 48746495.67 55051289.67 4478807.10 12149268.75 120425861.19
(1) disposal or scrapping 48746495.67 55051289.67 4478807.10 12149268.75 120425861.19
4.Conversion of foreign
-8818494.71-1150246.45-9968741.16
currency financial statement
5.Ending balance 1570238484.44 3540288690.19 32772506.07 714328321.31 5857628002.01
II. Accumulated depreciation
1.Opening balance 420143043.64 1785173380.76 22602310.15 291068729.12 2518987463.67
2.Current increased 47866276.19 213842643.95 2036120.68 141308325.34 405053366.16
(1) accrual 47866276.19 206474704.81 2036120.68 141308325.34 397685427.02
(2) Financial lease
7367939.147367939.14
transfer in
3.Current decreased 28184090.54 41378900.85 4234247.04 9021470.45 82818708.88
(1) disposal or scrapping 28184090.54 41378900.85 4234247.04 9021470.45 82818708.88
4.Conversion of foreign
-5554362.21-977399.51-6531761.72
currency financial statement
5.Ending balance 439825229.29 1952082761.65 20404183.79 422378184.50 2834690359.23
III. Depreciation reserves
1.Opening balance 81771072.40 73319.90 7066306.55 88910698.85
2.Current increased 3682648.26 3682648.26
(1) accrual 3682648.26 3682648.26
3.Current decreased 911787.05 954369.79 1866156.84
(1) disposal or scrapping 911787.05 954369.79 1866156.84
4.Ending balance 84541933.61 73319.90 6111936.76 90727190.27
IV. Book value
1.Ending Book value 1130413255.15 1503663994.93 12295002.38 285838200.05 2932210452.51
2.Opening Book value 1164451545.89 1464417607.00 7605651.45 233876666.03 2870351470.37
(2) Temporarily idle fixed assets
Nil
(3) Fixed assets acquired by operating lease
Nil
171无锡威孚高科技集团股份有限公司2021年年度报告全文
(4) Fixed assets without property certification held
Unit: RMB/CNY
Item Book value Reasons for without the property certification
Plant and office building of Weifu Chang’an 32262206.56 Still in process of relevant property procedures
Other explanation
Decreased in the Period including the scrap reduction (original value: 47038726.49 yuan accumulated depreciation 27155173.49
yuan) from WFHT Xinan Branch Plant No.1 Workshop (XI Fang Quan Zheng Zi No.WX1000475970-1 ). Due to the business
development requirement according to the investment filing certificate (Xi Xing Xing Shen Tou Bei No.: [2021]961) issued by
Administrative Approval Bureau of Wuxi Xinwu District and the Granted Administrative License Decision Letter (Xi Gong (Zhi)
Zhun Jue Zi No.: [2022]001) issued by Wuxi Municipal Public Security Bureau the Company intends to demolish the building by
explosives and rebuild to a R&D building the building was scrapped in the current period.
(5) Disposal of fixed assets
Nil
15. Construction in progress
Unit: RMB/CNY
Item Ending balance Opening balance
Construction in progress 387429933.08 243795493.04
Total 387429933.08 243795493.04
(1) Construction in progress
Unit: RMB/CNY
Ending balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Technical transformation
88688772.8588688772.85123249079.40123249079.40
of parent company
Lot 103 phase V of the
89599174.4289599174.426892365.506892365.50
parent company
WFMS rebuilding of the
12185858.7412185858.74
parent company
Technical transformation
72318870.7972318870.7920720304.9720720304.97
of WFAM
Technical transformation
13368288.8113368288.8127031547.2527031547.25
of WFLD
172无锡威孚高科技集团股份有限公司2021年年度报告全文
Technical transformation
23293601.3923293601.399649568.919649568.91
of Denmark RID
Other project 87975366.08 87975366.08 56252627.01 56252627.01
Total 387429933.08 387429933.08 243795493.04 243795493.04
(2) Changes of major projects under construction
Unit: RMB/CNY
Accumul including
Proporti
Fixed ated : interest Interest
Other on of
assets amount capitaliz capitaliz
Budg Opening Current decrease Ending project
Item transfer-i Progress of ed ation Source of funds
et balance increased d in the balance investme
n in the interest amount rate of
Period nt in
Period capitaliz of the the year
budget
ation year
Technical The
transformati 123249 221500 256060 886887 company
on of parent 079.40 314.38 620.93 72.85 accumulates
company funds
Lot 103 The
phase V of 689236 827068 895991 company
the parent 5.50 08.92 74.42 accumulates
company funds
WFMS The
rebuilding of 121858 121858 company
the parent 58.74 58.74 accumulates
company funds
Technical The
transformati 207203 867205 351219 723188 company
on of 04.97 43.66 77.84 70.79 accumulates
WFAM funds
The
Technical
270315 637710 774342 133682 company
transformati
47.25 39.52 97.96 88.81 accumulates
on of WFLD
funds
Technical
The
transformati
964956 138830 239036. 232936 company
on of
8.91 69.18 70 01.39 accumulates
Denmark
funds
RID
Total 187542 480767 368855 299454 -- -- --
173无锡威孚高科技集团股份有限公司2021年年度报告全文
866.03634.40933.43567.00
(3) The provision for impairment of construction projects
Nil
(4) Engineering materials
Nil
16. Right-of-use assets
Unit: RMB/CNY
Item Building Mechanical equipment Total
I. Original book value:
1.Opening balance 18125393.02 31516312.24 49641705.26
2.Current increased 76187.97 76187.97
3.Current decreased 7367939.14 7367939.14
(1) Transfer to own assets 7367939.14 7367939.14
4. Conversion of foreign
-520709.01-2460648.22-2981357.23
currency financial statement
5.Ending balance 17604684.01 21763912.85 39368596.86
II. Accumulated depreciation
1.Opening balance 16449611.12 16449611.12
2.Current increased 4210378.53 4462084.23 8672462.76
(1) Accrual 4210378.53 4462084.23 8672462.76
3.Current decreased 7367939.14 7367939.14
(1) Disposal
(2) Transfer to own
7367939.147367939.14
assets
4. Conversion of foreign
-69622.12-1464321.34-1533943.46
currency financial statement
5.Ending balance 4140756.41 12079434.87 16220191.28
III. Depreciation reserves
1.Opening balance
2.Current increased
(1) Accrual
3.Current decreased
174无锡威孚高科技集团股份有限公司2021年年度报告全文
(1) Disposal
4.Ending balance
IV. Book value
1.Ending Book value 13463927.60 9684477.98 23148405.58
2.Opening Book value 18125393.02 15066701.12 33192094.14
17. Intangible assets
(1) Intangible assets
Unit: RMB/CNY
Non-patent Computer Trademark and
Item Land use right Patent Total
technology software trademark license
I. original book value
1.Opening balance 381012520.44 185079328.12 97684862.76 41597126.47 705373837.79
2.Current increased 15000000.00 25984798.36 40984798.36
(1) Purchase 25984798.36 25984798.36
(2) internal R&D
(3) increased by
combination
(4) Shareholders'
15000000.0015000000.00
capital contribution
3.Current decreased 369011.14 245278.06 614289.20
(1) disposal 369011.14 245278.06 614289.20
4.Conversion of
foreign currency -17820986.51 -272175.84 -18093162.35
financial statement
5.Ending balance 381012520.44 181889330.47 123152207.22 41597126.47 727651184.60
II. accumulated
amortization
1.Opening balance 95252939.06 55078092.67 74273958.37 9709000.00 234313990.10
2.Current increased 8364798.97 15043622.40 19051784.98 42460206.35
(1) accrual 8364798.97 15043622.40 19051784.98 42460206.35
3.Current
245278.06245278.06
decreased
(1) disposal 245278.06 245278.06
175无锡威孚高科技集团股份有限公司2021年年度报告全文
4.Conversion of
foreign currency -5917361.13 -200392.48 -6117753.61
financial statement
5.Ending balance 103617738.03 64204353.94 92880072.81 9709000.00 270411164.78
III. Depreciation
reserves
1.Opening balance 16646900.00 16646900.00
2.Current increased
(1) accrual
3.Current
decreased
(1) disposal
4.Ending balance 16646900.00 16646900.00
IV. Book value
1.Ending Book
277394782.41117684976.5330272134.4115241226.47440593119.82
value
2.Opening Book
285759581.38130001235.4523410904.3915241226.47454412947.69
value
(2) Land use right without property certification held
Nil
18. Goodwill
(1) Original book value of goodwill
Unit: RMB/CNY
The invested Current increased Current decreased
entity or Purchase price Translation of
Opening Formed by
matters recovered in foreign Ending balance
balance business Disposal
forming the current currency
combination
goodwill period statements
Merged with
1784086.791784086.79
WFTT
Merged with
256016609.53-1136214.91-25409465.66229470928.96
Borit
Total 257800696.32 -1136214.91 -25409465.66 231255015.75
176无锡威孚高科技集团股份有限公司2021年年度报告全文
(2) Goodwill depreciation reserves
Other explanation
1) Goodwill formed by the merger of WFTT:
In 2010 the Company controlling and combine WFTT by increasing the capital the goodwill is the number that combination cost
greater than the fair value of identical net assets of WFTT. At the end of the period the company conducted an impairment test on
goodwill to estimate the present value of future cash flows and the recoverable amount of the goodwill-related asset group that is to
estimate the present value of future cash flow based on the management's financial budget for the next five years and the discount rate
of 14.78% the cash flow of the year after the five years of financial budget has remained stable. The asset group identified during the
goodwill impairment test did not change.The key parameters determined by the goodwill impairment test are as follows: The current value of the expected future cash flow of
the asset group related to goodwill is measured by using 20%~24% of gross profit margin and 4%~14% of the operating income growth
rate in the forecast period as key parameters. The management determines these parameters based on historical conditions prior to the
forecast period and forecasts of market development. After the above tests the company's goodwill does not need to make provisions
for impairment.
2) Goodwill formed by the merger of Borit:
In 2020 the company acquired 100.00% equity of Borit in the form of cash purchase the goodwill was the part that the cost of the
merger was greater than the fair value share of the identifiable net assets of Borit.According to the “Assets Appraisal Report”
(Wanlong PBZi (2022) No. 40016) issued by Wanlong (Shanghai) Assets Appraisal Co. Ltd appointed by the Company the
recoverable value of the assets group where the goodwill of the merged with Borit is 423300000 yuan higher than the carrying
value of 288969900 yuan and there is no impairment loss of goodwill.
19. Long-term deferred expenses
Unit: RMB/CNY
Amortized in the
Item Opening balance Current increased Other decrease Ending balance
Period
Remodeling costs etc. 15062171.09 5043070.27 4800457.79 15304783.57
Total 15062171.09 5043070.27 4800457.79 15304783.57
20. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets that are not offset
Unit: RMB/CNY
Ending balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Unrealized profit from
65251129.5510531677.1919551845.383457610.51
insider transactions
Bad debt provision 87681266.17 13383420.21 104259030.38 15779756.63
Inventory depreciation 224955223.94 37688819.01 225684043.14 35799261.60
177无锡威孚高科技集团股份有限公司2021年年度报告全文
reserve
Depreciation reserves of
57218038.148677481.5055397599.688523566.97
fixed assets
Depreciation reserves of
16646900.002497035.0016646900.002497035.00
intangible assets
Other equity instrument
10000000.001500000.00
investment
Deferred income 295502674.12 44620545.44 323924836.18 48935725.44
Payable salary accrued
1236037621.62188472847.67981477549.10151813641.23
expenses etc.Depreciation assets
54047597.498868412.3489867140.2314608530.41
amortization difference
Deductible loss of
53658338.0511465129.699703095.172425773.79
subsidiary
Equity incentive 80742533.73 12498678.30 6330515.63 987908.92
Fiscal and tax differences
378997.8472554.36
for leasing business
Total 2172120320.65 338776600.71 1842842554.89 286328810.50
(2) Deferred income tax liabilities that are not offset
Unit: RMB/CNY
Ending balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
The difference between
the fair value and
taxation basis of WFTT 10660027.75 1599004.14 11271189.48 1690678.40
assets in a merger not
under the same control
The difference between
the fair value and
taxation basis of IRD 68854748.78 15148044.73 86905585.08 19119228.72
assets in a merger not
under the same control
The difference between
the fair value and
taxation basis of Borit 25246551.70 6311637.91 39376104.10 9844026.00
assets in a merger not
under the same control
178无锡威孚高科技集团股份有限公司2021年年度报告全文
Change of fair value of
transaction financial 318337329.74 47794985.96 366808362.19 55023506.38
asset
Accelerated depreciation
294934456.0848772268.60211571729.7632911802.62
of fixed assets
Total 718033114.05 119625941.34 715932970.61 118589242.12
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
Unit: RMB/CNY
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
-96528406.14242248194.57-87935309.00198393501.50
assets
Deferred income tax
-96528406.1423097535.20-87935309.0030653933.12
liabilities
(4) Details of unrecognized deferred income tax assets
Unit: RMB/CNY
Item Ending balance Opening balance
Bad debt reserve 216982.72 1710712.39
Inventory depreciation reserve 8144910.46 21586279.12
Loss from subsidiary 279247744.04 193713240.35
Depreciation reserves of fixed assets 33509152.13 33513099.17
Other equity instrument investment 13600000.00 46600000.00
Equity incentive 2304871.81 154321.87
Total 337023661.16 297277652.90
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
Unit: RMB/CNY
Maturity year Ending amount Opening amount Note
2021 12343844.69 Subsidiaries have operating losses
2022 3781066.93 3781066.93 Subsidiaries have operating losses
2023 1171973.53 1171973.53 Subsidiaries have operating losses
179无锡威孚高科技集团股份有限公司2021年年度报告全文
2024 18520699.71 18520699.71 Subsidiaries have operating losses
2025 12151503.80 12151503.80 Subsidiaries have operating losses
2026 22596818.84 Subsidiaries have operating losses
No expiration period 221025681.23 145744151.69 Overseas subsidiaries have operating losses
Total 279247744.04 193713240.35 --
21. Other non-current assets
Unit: RMB/CNY
Ending balance Opening balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Engineering equipment
267941354.57267941354.57195259441.73195259441.73
paid in advance
Total 267941354.57 267941354.57 195259441.73 195259441.73
22. Short-term borrowings
(1) Category of short-term borrowings
Unit: RMB/CNY
Item Ending balance Opening balance
Guaranteed Loan 72197000.00
Credit loan 1264241086.57 301958184.49
Bill financing 100000000.00
Accrued interest 1520119.98 280415.56
Total 1437958206.55 302238600.05
Explanation of short-term loan classification:
Nil
(2) Overdue short-term loans without payment
Nil
23. Note payable
Unit: RMB/CNY
Category Ending balance Opening balance
180无锡威孚高科技集团股份有限公司2021年年度报告全文
Bank acceptance bill 1760032216.30 2462592372.82
Total 1760032216.30 2462592372.82
Notes expired at year-end without paid was 0.00 yuan.Other notes:：
RMB 17459061.33 was paid as margin for issuing the above bank acceptance draft and RMB 919286331.63 was pledged as notes
receivable.
24. Account payable
(1) Account payable
Unit: RMB/CNY
Item Ending balance Opening balance
Within 1 year 3066299727.36 3986993867.21
1-2 years 64962570.18 87605077.14
2-3 years 52067026.49 13824720.43
Over three years 23324378.56 12560575.61
Total 3206653702.59 4100984240.39
(2) Important account payable with account age over one year
Nil
25. Accounts received in advance
(1) Accounts received in advance
Unit: RMB/CNY
Item Ending balance Opening balance
Within 1 year 2854518.96 4071236.87
Total 2854518.96 4071236.87
(2) Important accounts received in advance with account age over one year
Nil
26. Contract liabilities
Unit: RMB/CNY
Item Ending balance Opening balance
181无锡威孚高科技集团股份有限公司2021年年度报告全文
Within 1 year 132406102.56 77554320.04
1-2 years 2681086.39 2763605.96
2-3 years 132196.85 255602.59
Over three years 1208250.59 1143858.66
Total 136427636.39 81717387.25
27. Wage payable
(1) Wage payable
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
I. Short-term compensation 184226322.31 1229954965.30 1206358955.94 207822331.67
II. Post-employment welfare- defined
49931097.42150090291.23179742081.3420279307.31
contribution plans
III. Dismissed welfare 1645271.32 2676526.08 3076470.31 1245327.09
IV. Incentive funds paid within a
84150000.0057021506.6447291506.6493880000.00
year
V. Other short-term
welfare-Housing subsidies
12469120.774081359.92-111055.9416661536.63
employee benefits and welfare
funds
Total 332421811.82 1443824649.17 1436357958.29 339888502.70
(2) Short-term compensation
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
1. Wages bonuses allowances and subsidies 155323190.62 994247266.99 952393522.71 197176934.90
2. Welfare for workers and staff 112.35 80637346.71 80565400.14 72058.92
3. Social insurance 17498085.68 58614929.34 75920323.29 192691.73
Including: Medical insurance 14251442.15 48718750.94 62797587.59 172605.50
Work injury insurance 1661670.58 5184089.01 6829106.29 16653.30
Maternity insurance 1584972.95 4712089.39 6293629.41 3432.93
4. Housing accumulation fund 1016187.00 76572294.01 76931607.01 656874.00
5. Labor union expenditure and
10367089.5618254550.9519010410.589611229.93
personnel education expense
182无锡威孚高科技集团股份有限公司2021年年度报告全文
6. Other short-term compensation -
21657.101628577.301537692.21112542.19
social security
Total 184226322.31 1229954965.30 1206358955.94 207822331.67
(3) Defined contribution plans
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
1. Basic endowment
29844835.64101322089.03130750479.61416445.06
premium
2. Unemployment
912529.163441267.284328263.0025533.44
insurance
3. Enterprise annuity 19173732.62 45326934.92 44663338.73 19837328.81
Total 49931097.42 150090291.23 179742081.34 20279307.31
Other explanation:
1. Reclassification of long-term staff remuneration payable:
An amount of 72763011.53 yuan is recorded in post office benefits - defined benefit plan and incentive fund payable within one
year which represents the difference between the incentive fund of 111770000.00 yuan expected to be paid in 2022 and the
beginning balance of incentive fund payable within one year post office benefits-defined benefit plan and the actual amount paid in
this period.
2. Other short-term benefits- housing allowance employee incentive and welfare fund: have -111055.94 yuan paid in the period
mainly because the amount of housing allowance refunded from employees received by the enterprise during the period was greater
than the amount of housing allowance paid during the period.
3. 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. The relevant expenditure isincluded in current profit or loss or cost of relevant assets when occurs. Found more of enterprise annuity in Note XVI-4.” Annuityplan”
4. Dismiss welfare
The wages payable resulted from the implementation of inner retirement plan the amount paid in the year 905359.22 yuan
re-classified into the wage payable from long-term wages payable.
28. Taxes payable
Unit: RMB/CNY
Item Ending balance Opening balance
Value-added tax 24533584.80 28744351.90
183无锡威孚高科技集团股份有限公司2021年年度报告全文
Corporation income tax 2317331.81 21458320.79
Individual income tax 3528037.22 7184934.79
City maintaining & construction tax 1750188.23 1983996.80
Educational surtax 1250134.44 1417140.56
Other (including stamp tax and local funds) 6726372.38 6704945.45
Total 40105648.88 67493690.29
29. Other account payable
Unit: RMB/CNY
Item Ending balance Opening balance
Interest payable 6184.14 4862.22
Dividends payable 25671100.00
Other accounts payable 334228033.32 361551395.20
Total 359905317.46 361556257.42
(1) Interest payable
Unit: RMB/CNY
Item Ending balance Opening balance
Other 6184.14 4862.22
Total 6184.14 4862.22
Major overdue interest: Nil
(2) Dividend payable
Unit: RMB/CNY
Item Ending balance Opening balance
Common stock dividend 25671100.00
Total 25671100.00
(3) Other account payable
1) Classification of other accounts payable according to nature of account
Unit: RMB/CNY
Item Ending balance Opening balance
184无锡威孚高科技集团股份有限公司2021年年度报告全文
Deposit and margin 24601774.89 12759592.29
Social insurance and reserves funds that
1695074.098853543.93
withholding
Intercourse funds of unit 33562145.98 30982145.98
Restricted stock repurchase obligations 269101020.00 302479200.00
Other 5268018.36 6476913.00
Total 334228033.32 361551395.20
2) Significant other payable with over one year age
Unit: RMB/CNY
Item Ending balance Reasons for non-repayment or carry-over
Nanjing Jidian Industrial Group Co. Ltd. 4500000.00 Intercourse funds
Restricted stock repurchase business 269101020.00 Restricted stock repurchase business
Total 273601020.00 --
30. Non-current liabilities due within one year
Unit: RMB/CNY
Item Ending balance Opening balance
Long-term borrowings due within one year 27744527.80 33271589.84
Lease payments due within one year 6318273.66 8186856.30
Interest payable 25972.22 26666.67
Total 34088773.68 41485112.81
31. Other current liabilities
Unit: RMB/CNY
Item Ending balance Opening balance
Rebate payable 198936922.68 213477951.00
Pending sales tax 14032348.87 9393136.33
Total 212969271.55 222871087.33
Changes in short-term bonds payable: Nil
32. Long-term borrowings
(1) Category of Long-term borrowings
Unit: RMB/CNY
185无锡威孚高科技集团股份有限公司2021年年度报告全文
Item Ending balance Opening balance
Guaranteed loan 3050640.97
Total 3050640.97
Explanation of long-term loan classification: Nil
33. Lease liability
Unit: RMB/CNY
Item Ending balance Opening balance
Lease Payments 15795469.25 22604755.70
Total 15795469.25 22604755.70
34. Long-term account payable
Unit: RMB/CNY
Item Ending balance Opening balance
Long-term account payable 13750000.00 15351883.00
Special accounts payable 18265082.11 18265082.11
Total 32015082.11 33616965.11
(1) Long-term account payable listed by nature
Unit: RMB/CNY
Item Ending balance Opening balance
Hi-tech Branch of Nanjing Finance Bureau (note * ) Financial support funds (2006) 1250000.00
Hi-tech Branch of Nanjing Finance Bureau (note * ) Financial support funds (2007) 1230000.00 1230000.00
Loan transferred from treasury bond (note * ) 339090.00
Hi-tech Branch of Nanjing Finance Bureau (note * ) Financial support funds (2008) 2750000.00 2750000.00
Hi-tech Branch of Nanjing Finance Bureau (note * ) Financial support funds (2009) 1030000.00 1030000.00
Hi-tech Branch of Nanjing Finance Bureau (note * ) Financial support funds (2010) 960000.00 960000.00
Hi-tech Branch of Nanjing Finance Bureau (note * ) Financial support funds (2011) 5040000.00 5040000.00
Hi-tech Branch of Nanjing Finance Bureau (note * ) Financial support funds (2013) 2740000.00 2740000.00
Total 13750000.00 15339090.00
Other explanation:
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 20 July 2006 to 20 July 2021.Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.This support fund
has expired fifteen years in the current period so it is transferred to other income.
186无锡威孚高科技集团股份有限公司2021年年度报告全文
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 17 September 2007 to 17
September 2022. Provided that the operation period in the zone is less than 15 years financial supporting capital will be
reimbursed.Note * : Loan transferred from treasury bond: WFJN received 1.87 million yuan of special funds from budget of the central
government and 3.73 million yuan of special funds from budget of the local government. The non-operating income transferred in
was 1.87 million yuan in 2011 which was confirmed not to return the Company paid back special funds of 3.73 million yuan to the
local government in 11 years since 2012 the Company paid the principal of 339090.00 yuan the year fully repaid as of the
period-end.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 10 November 2008 to 10 November
2023. 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 27 October 2009 to 27 October 2024.Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.Note * : 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 27 December 2010 to 27 December
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 28 December 2011 to 28 December
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 18 December 2013 to 18 December
2028. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.
(2) Special accounts payable
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance Cause of formation
Removal compensation
18265082.1118265082.11
of subsidiary WFJN
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 Xuanwu District Nanjing City 19.7067 million yuan in total are
compensate 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 31 December 2021.
187无锡威孚高科技集团股份有限公司2021年年度报告全文
35. Long-term wages payable
(1) Long-term wages payable
Unit: RMB/CNY
Item Ending balance Opening balance
I.Post-employment benefits - Defined benefit plan net liabilities
II. Dismiss welfare 4829589.69 5734948.91
III. Other long-term welfare 103482333.50 176245345.03
Total 108311923.19 181980293.94
36. Deferred income
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance Cause of formation
Government grand 328204476.73 21400035.18 51551644.35 298052867.56
Total 328204476.73 21400035.18 51551644.35 298052867.56 --
Item with government grants involved:
Unit: RMB/CNY
Amount
reckoned Amount Cost
Other Assets
Opening New grants in reckoned into reduction
Item chang Ending balance related/Inco
balance in the Period non-operat other income in the
es me related
ion in the period period
revenue
Industrialization project
for injection VE pump
system with Assets
electronically controlled 1442000.56 721000.30 721000.26 related/Inco
high pressure for me related
less-emission diesel
used
Appropriation on
reforming of production
line technology and Assets
7100000.00781651.386318348.62
R&D ability of common related
rail system for diesel by
distributive high-voltage
Fund of industry Income
642169.73642169.73
upgrade (2012) related
Fund of industry Income
60520000.0060520000.00
upgrade (2013) related
Appropriation on central
Assets
basic construction 714285.73 714285.73
related
investment
R&D and
industrialization of the
high-pressure variable Assets
5327618.881510144.213817474.67
pump of the common related
rail system of diesel
engine for automobile
Research institute of Assets
1213727.21565067.04648660.17
motor vehicle exhaust related
188无锡威孚高科技集团股份有限公司2021年年度报告全文
after-treatment
technology
Fund of industry Income
36831000.0036831000.00
upgrade (2014) related
New-built assets
compensation after the 104085274.4 Assets
20950845.4683134428.94
removal of parent 0 related
company
Fund of industry Income
40000000.0040000000.00
upgrade (2016) related
Guiding capital for the
technical reform from Assets
6595319.831537652.505057667.33
State Hi-Tech Technical related
Commission
Implementation of the
variable cross-section Assets
7362788.751480000.045882788.71
turbocharger for diesel related
engine
Demonstration project
Assets
for intelligent 849099.60 196718.10 652381.50
related
manufacturing
The 2nd batch of
provincial special funds
for industry Assets
5000000.001553649.883446350.12
transformation of related
industrial and
information in 2019
Municipal technological
Assets
reform fund allocation 4770000.00 626593.93 4143406.07
related
in 2020
Strategic cooperation
agreement funding for
Assets
key enterprise of smart 4060000.00 700000.00 309130.41 4450869.59
related
manufacturing in
high-tech zone
The 3rd batch of
provincial special funds
for industry 13500000. Assets
13500000.00
transformation of 00 related
industrial and
information in 2021
-245 Assets
7445481.1
Other 41691192.04 19962735.64 445.9 28928491.58 related/Inco
5
7 me related
-245
328204476.721645481.
Total 51551644.35 445.9 298052867.56
315
7
Other explanation:
(1) Appropriation on industrialization project of electrical control and high voltage jet VE system of low emissions diesel: in
September 2009 WFJN signed “Project Contract of Technology Outcome Transferring Special Capital in Jiangsu Province” with
Nanjing Technical Bureau according to which WFJN received appropriation 6.35 million yuan in 2009 4.775 million yuan received
in 2010 and 0.875 million yuan received in 2011. According to the contract the attendance date of this project was: from October of
2009 to March of 2012. This contract agreed 62% of newly increased investment in project would be spent in fixed assets investment
which are belongs to the government grand with assets/income concerned. In 2013 accepted by the science & technology agency of
Jiangsu Province and 4789997.04 yuan with income related was reckoned into current operation revenue directly; the 7210002.96
yuan with assets related was amortized during the predicted service period of the assets and 721000.30 yuan amortized in the
Period.
(2) The appropriation for research and development ability of distributive high-pressure common rail system for diesel engine use
and production line technological transformation project: according to XCJ No. [2010] 59 the Company has received special funds
of 7.1 million yuan appropriated by Finance Bureau of Wuxi New District in 2011 and used for the Company’s research and
189无锡威孚高科技集团股份有限公司2021年年度报告全文
development ability of distributive high-pressure common rail system for diesel engine use and production line technological
transformation project; this appropriation belongs to government grants related to assets amount of 781651.38 yuan was reversed
based on the depreciation schedule of the related assets during the period.
(3) Industry upgrading funds (2012): In accordance with the document Xi Xin Guanjing Fa [2012] No.216 and Document Xi Xin
Guancai Fa [2012] No. 85 the Company received funds of 60.4 million yuan appropriated for industry upgrading this year. Current
write off: 642169.73 yuan.
(4) Industry upgrading funds (2013): In accordance with the document Xi Xin Guan Jing Fa [2013] No.379 Xi Xin Guan Jing Fa
[2013] No.455 Xi Xin Guan Cai Fa [2013] No.128 and Xi Xin Guan Cai Fa [2013] No.153 the Company received funds of 60.52
million yuan appropriated for industry upgrading in 2013.
(5) Appropriation for investment of capital construction from the central government: In accordance with the document Xi Caijian
[2012] No.43 the Company received appropriation of 5 million yuan for investment of capital construction from the central
government in 2012. The project has passed the acceptance check in current period this appropriation should be amortized within the
surplus service life of current assets and amortization amount of current period is 714285.73 yuan.
(6) R&D and industrialization of the high pressure variable pump of the common rail system of diesel engine for automobile: the
Company received appropriated for the project in 2013 with 8.05 million yuan in line with documents of Xi Ke Ji [2013] No.186 Xi
Ke Ji [2013] No.208 Xi Cai Gong Mao [2013] No.104 Xi Cai Gong Mao [2013] No.138 Xi Ke Ji [2014] No.125 Xi Cai Gong
Mao [2014] No.58 Xi Ke Ji [2014] No. 246 and Xi Cai Gong Mao [2014] No.162. Received 3 million yuan in 2014 and 0.45 million
yuan in 2015; and belongs to government grant with assets concerned and shall be amortized according to the depreciation process
amount of 1510144.21 yuan amortizes in the year.
(7) Vehicle exhaust after-treatment technology research institute project: in 2012 the subsidiary WFLD has applied for equipment
purchase assisting funds to Wuxi Huishan Science and Technology Bureau and Wuxi Science and Technology Bureau for the vehicle
exhaust after-treatment technology research institute project. This declaration has been approved by Wuxi Huishan Science and
Technology Bureau and Wuxi Science and Technology Bureau in 2012 and the company has received appropriation of 2.4 million
yuan in 2012 and received appropriation of 1.6 million yuan in 2013. This appropriation belongs to government grants related to
assets and will be amortized according to the depreciation process amount of 565067.04 yuan amortizes in the year.
(8) Industry upgrading funds (2014): In accordance with the document Xi Xin Guan Jing Fa [2014] No.427 and Xi Xin Guan Cai Fa
[2014] No.143 the Company received funds of 36.831 million yuan appropriated for industry upgrading in 2014.
(9) New-built assets compensation after the removal of parent company: policy relocation compensation received by the Company
and will be amortized according to the depreciation of new-built assets amount of 20950845.46 yuan amortizes in the year.
(10) Fund of industry upgrade (2016): In accordance with the document Xi Xin Guan Jing Fa [2016] No.585 and Xi Xin Fa [2016]
No.70 the Company received funds of 40 million yuan appropriated for industry upgrading in 2016.
(11) Guiding capital for the technical reform from State Hi-Tech Technical Commission: In accordance with the document Xi Jing
Xin ZH [2016] No.9 and Xi Cai GM [2016] No.56 the Company received a 9.74 million yuan for the guiding capital of technical
reform (1st batch) from Wuxi for year of 2016 and belongs to government grant with assets concerned and shall be amortized
according to the depreciation process amount of 1537652.50 yuan amortize in the year.
(12) Implementation of the variable cross-section turbocharger for diesel engine: In accordance with the document YCZ Fa[2016]
NO.623 and “Strong Industrial Base Project Contract for year of 2016” subsidiary WFTT received a specific subsidy of 16.97
million yuan (760000 yuan received in the period) the fund supporting strong industrial base project (made-in-China 2025) of
central industrial transformation and upgrading 2016 from Ministry of Industry and Information Technology; and belongs to
government grant with assets concerned and shall be amortized according to the depreciation process amount of 1480000.04 yuan
amortize in the year.
(13) Demonstration project for intelligent manufacturing: under the Notice Relating to Selection of the Intelligent Manufacturing
Model Project in Huishan District in 2016 (HJXF[2016]No.36) a fiscal subsidy of 3000000 yuan was granted by relevant
government authority in Huishan district to our subsidiary WFLD in 2017 to be utilized for transformation and upgrade of WFLD’s
190无锡威孚高科技集团股份有限公司2021年年度报告全文
intelligent manufacturing facilities. This subsidy belongs to government grant related to assets which shall be amortized based on the
depreciation progress of the assets. Amortization for the year amounts to 196718.10 yuan.
(14) The 2nd batch of provincial special funds for industry transformation of industrial and information in 2019: according to XCGM
[2019] No. 121 the Company received a special fund of 5 million yuan in 2020 this subsidy was related to the "Weifu
High-Technology New Factory Internet Construction" projects and belonged to government grants related to assets. and shall be
amortized according to the depreciation process amount of 1553649.88 yuan amortize in the year.
(15) Municipal technological reform fund allocation in 2020: according to XGXZH [2020] No. 16 the Company received 4.77
million yuan of municipal technological transformation fund project allocation in 2020 which was related to key technological
transformation projects and belonged to government grants related to assets. and shall be amortized according to the depreciation
process amount of 626593.93 yuan amortize in the year.
(16) Strategic cooperation agreement funding for key enterprise of smart manufacturing in high-tech zone: according to XXGXF
[2020] No. 61 the Company received a related grant of 4.06 million yuan in 2020 0.7 million yuan received in the Period this grant
was related to the intelligent transformation project and belonged to the government grants related to assets. and shall be amortized
according to the depreciation process amount of 309130.41 yuan amortize in the year.
(17) The 3rd batch of provincial special funds for industry transformation of industrial and information in 2021: according to the
SCGM [2021] No.92 the government grant 13.5 million yuan received in the Period was for the research development and
industrialization of membrane electrodes for high-performance automotive proton exchange membrane fuel cells which was an
assets related government grants.
37. Share capital
In RMB
Change during the year (+ -)
Shares
Opening balance New shares transferred Ending balance
Bonus share Other Subtotal
issued from capital
reserve
Total shares 1008950570.00 -291000.00 -291000.00 1008659570.00
Other explanation:
Decreased in share capital was due to the buy-back and cancellation of 291000 restricted shares initially granted under
the Restricted Shares Incentive Plan for year of 2020.
38. Capital reserve
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Capital premium (Share
3242767917.783777729.063238990188.72
capital premium)
Other Capital reserve 51474450.50 80879533.60 132353984.10
Total 3294242368.28 80879533.60 3777729.06 3371344172.82
Other explanation including changes in the period and reasons for changes;
(1) Share capital premium has 3777729.06 yuan decreased in the Period mainly because the 291000 shares for restricted shares
191无锡威孚高科技集团股份有限公司2021年年度报告全文
incentive plan were repurchased and cancellation by the Company the difference between repurchase costs of 4068180.00 yuan and
share capital of 291000.00 yuan amounted to 3777180.00 yuan and handling fee for repurchase of 549.06 yuan.
(2) Other Capital reserve has 80879533.60 yuan increased in the Period mainly including two parts: * the 74241533.60 yuan
after deducted 2321034.44 yuan attributable to minority from 76562568.04 yuan the expenses of share-based payment settled by
equity; and * for the equity incentive implemented by associate of the Company -- Wuxi Weifu Precision Machinery Manufacturing
Co. Ltd. the Company is entitled to 6638000.00 yuan in proportion to the shareholdings.
39. Treasury stock
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Stock repurchases 1148777.74 1148777.74
Repurchase obligation of restricted
302479200.0033378180.00269101020.00
stock incentive plan
Total 303627977.74 33378180.00 270249797.74
Other explanations including changes in the current period and explanations of the reasons for the changes:
Repurchase obligation of restricted stock incentive plan: has 33378180.00 yuan decreased in the Period mainly including two parts:
* the 29310000.00 yuan cash dividends received by restricted stock incentive recipients during the period; and * 4068180.00
yuan is the repurchase and cancellation of 291000 restricted shares granted but not yet unlocked by the Company as treasury stock
forfeited due to the departure and health of employee’s .
40. Other comprehensive income
Unit: RMB/CNY
Current period
Less:
Less: written written in
in other other
comprehensi comprehe
ve income in nsive
Less:
Account previous income in Belong to Belong to
Opening incom Ending
Item before period and previous parent minority
balance e tax balance
income tax in carried period and company after shareholder
expens
the year forward to carried tax s after tax
e
gains and forward to
losses in retained
current earnings in
period current
period
I. Other comprehensive income
that cannot be reclassified to 16885.14 16008.80 876.34 16008.80
profit or loss
Other comprehensive income
that cannot be transferred to profit 16885.14 16008.80 876.34 16008.80
or loss under the equity method
II. Other comprehensive income
1391661-50678972.-50678972.-3676235
items which will be reclassified
9.4787873.40
subsequently to profit or loss
Conversion difference of foreign 1391661 -50678972. -50678972. -3676235
currency financial statement 9.47 87 87 3.40
1391661-50662087.-50662964.-3674634
Total other comprehensive income 876.34
9.4773074.60
192无锡威孚高科技集团股份有限公司2021年年度报告全文
Other explanation including the adjustment on initial recognition for arbitrage items that transfer from the effective part of cash flow
hedge profit/loss: Nil
41. Reasonable reserve
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Safety production costs 2333490.03 22714778.27 24336052.99 712215.31
Total 2333490.03 22714778.27 24336052.99 712215.31
Other explanation including changes and reasons for changes:
(1) Instructions for the withdrawing of special reserves (safe production cost): According to the CQ [2012] No. 16 - Administrative
Measures on the Withdrawing and Use of Enterprise Safety Production Expenses 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 safety production costs including the safety production costs accrual by the Company in line with regulations
and the parts enjoy by shareholders of the Company in safety production costs accrual by subsidiary in line with regulations.
42. Surplus reserve
Unit: RMB/CNY
Item Opening balance Current increased Current decreased Ending balance
Statutory surplus reserves 510100496.00 510100496.00
Total 510100496.00 510100496.00
Other explanation including changes and reasons for changes:
Withdrawal of the statutory surplus reserves: Pursuit to the Company Law and Article of Association the Company extracted
statutory surplus reserve on 10 percent of the net profit. No more amounts shall be withdrawal if the accumulated statutory surplus
reserve takes over 50 percent of the registered capital.
43. Retained profit
Unit: RMB/CNY
Item Current period Last period
Retained profits at the end of last year before
13756102424.6212076443635.56
adjustment
Retained profits at the beginning of the year after
13756102424.6212076443635.56
adjustment
Add: The net profits belong to owners of patent
2575371419.802772769377.96
company of this period
Less: Common dividend payable 1513341439.50 1093241270.00
193无锡威孚高科技集团股份有限公司2021年年度报告全文
Less: Withdraw employee rewards and welfare
4081359.922525946.49
funds
Add: Net effect of disposal other equity
736332.862656627.59
instrument investment
Retained profit at period-end 14814787377.86 13756102424.62
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
44. Operating income and cost
Unit: RMB/CNY
Current period Last Period
Item
Income Cost Income Cost
Main operating 13184138129.88 10822600520.90 12430431489.90 10124574480.95
Other business 498288581.07 397767192.67 453394816.70 304709961.02
Total 13682426710.95 11220367713.57 12883826306.60 10429284441.97
Whether the lower of the audited net profit before and after deduction of non-recurring gains and losses is negative
□Yes √No
45. Operating tax and extras
Unit: RMB/CNY
Item Current period Last Period
City maintaining & construction tax 19681944.17 22768800.74
Educational surtax 14058531.57 16259673.98
Property tax 17669096.06 16993056.48
Land use tax 4507402.14 4516628.41
Vehicle use tax 27218.52 29923.52
Stamp duty 3834974.65 4508905.03
Other taxes 477566.62 246793.71
Total 60256733.73 65323781.87
194无锡威孚高科技集团股份有限公司2021年年度报告全文
46. Sales expenses
Unit: RMB/CNY
Item Current period Last Period
Salary and fringe benefit 56098840.97 58727035.03
Consumption of office materials and business travel charge 9301927.42 9260423.14
Warehouse charge 17101049.13 24982242.41
Three guarantees and quality cost 138960972.56 272364223.21
Business entertainment fee 28210881.07 25842735.05
Other 14977761.41 15176786.26
Total 264651432.56 406353445.10
47. Administration expenses
Unit: RMB/CNY
Item Current period Last Period
Salary and fringe benefit 322167980.30 295394722.09
Depreciation charger and long-term assets amortization 71899617.49 65638800.42
Consumption of office materials and business travel charge 24870963.21 16772265.23
Incentive fund 187658444.76
Share-based payment 48352297.07 3878656.31
Other 144581292.17 213481533.82
Total 611872150.24 782824422.63
46. R&D expenses
Unit: RMB/CNY
Item Current period Last Period
Technological development expenses 595406951.64 532581209.78
Total 595406951.64 532581209.78
49. Financial expenses
Unit: RMB/CNY
Item Current period Last Period
Interest expenses 38698621.09 11466886.33
Note discount interest expenses 19837754.67 8075178.10
195无锡威孚高科技集团股份有限公司2021年年度报告全文
Less: interest income 41478845.32 51622216.58
Gains/losses from exchange -1982034.19 5138503.01
Handling charges 4987752.59 3663347.30
Total 20063248.84 -23278301.84
50. Other income
Unit: RMB/CNY
Sources of income generated Current period Last Period
Government grants with routine operation activity concerned 71274511.67 80342497.11
VAT instant refund 2460.01
Total 71276971.68 80342497.11
51. Investment income
Unit: RMB/CNY
Item Current period Last Period
Income of long-term equity investment calculated based on equity 1632117748.78 1659752704.14
Investment income from disposal of long-term equity investments 8701134.99
Investment income from holding financial assets available for sales 314664249.00 683211.60
Income from financial products 0 263460954.90
Other -959296.18 40908817.93
Total 1954523836.59 1964805688.57
52. Income from change of fair value
Unit: RMB/CNY
Sources Current period Last Period
Changes in the fair value of wealth management products -380318.88 8223219.19
Changes in the fair value of the stocks of listed companies
held-excluding the stocks of listed companies that are included in -38709334.89 375102546.00
other equity instrument investments
Changes in fair value of foreign exchange contracts -1180680.04
Total -40270333.81 383325765.19
196无锡威孚高科技集团股份有限公司2021年年度报告全文
53. Credit impairment loss
Unit: RMB/CNY
Item Current period Last Period
Bad debt loss 4059750.80 -11184647.60
Total 4059750.80 -11184647.60
54. Assets impairment loss
Unit: RMB/CNY
Item Current period Last Period
I. Loss of inventory falling price and loss of contract
-134434667.54-142400798.47
performance cost impairment
II. Impairment loss of fixed assets -3682648.26 -36436674.38
Total -138117315.80 -178837472.85
55. Income from assets disposal
Unit: RMB/CNY
Sources Current period Last Period
Income from disposal of non-current assets 6580346.41 12962146.98
Losses from disposal of non-current assets -2648002.34 -1507738.38
Total 3932344.07 11454408.60
56. Non-operating income
Unit: RMB/CNY
Amount reckoned into current
Item Current period Last Period
non-recurring gains/losses
Periodic reduction or exemption of part of
60373772.69
social insurance premiums
Periodic reduction of kinetic energy costs 5759525.46
Liquidated damages and compensation
397361.84397361.84
income
Other 258840.23 333723.47 258840.23
Total 656202.07 66467021.62 656202.07
government grants included in the current profit and loss: Nil
197无锡威孚高科技集团股份有限公司2021年年度报告全文
57. Non-operating expense
Unit: RMB/CNY
Amount reckoned into current
Item Current period Last Period
non-recurring gains/losses
Donation 237041.06 3107003.70 237041.06
Non-current assets disposal losses 24984204.92 738248.83 24984204.92
Including: loss of fixed assets scrap 24615193.78 738248.83 24615193.78
Loss on scrapping of intangible assets 369011.14 369011.14
Other 288323.89 313635.64 288323.89
Total 25509569.87 4158888.17 25509569.87
Other notes: The loss of fixed assets scrapped in this period includes the reduction of workshop No. 1 of WFHT Xinan Branch. (No.WX1000475970-1). Due to the business development needs of the company according to the investment project record certificate
issued by the Administrative Examination and Approval Bureau of Xinwu District of Wuxi city (Xi Xinhang Review and Investment
Preparation [2021] no. 961) and the decision of administrative Approval issued by the Public Security Bureau of Wuxi City (Xi Gong
(Zhi) Zhunjuezi [2022]001) the company plans to demolish the house in the form of blasting and rebuild it into a RESEARCH and
development building so the house will be scrapped in this period.
58. Income tax expense
(1) Income tax expense
Unit: RMB/CNY
Item Current period Last Period
Payable tax in current period 140397942.05 170925337.68
Adjusted the previous income tax 941390.84 -2349322.00
Increase/decrease of deferred income tax assets -54019435.84 -54432577.63
Increase/decrease of deferred income tax liability 3675792.90 66072310.95
Total 90995689.95 180215749.00
(2) Adjustment on accounting profit and income tax expenses
Unit: RMB/CNY
Item Current period
Total profit 2740360366.10
Income tax measured by statutory/applicable tax rate 411054054.92
Impact by different tax rate applied by subsidies -4538497.57
Adjusted the previous income tax 941390.84
198无锡威孚高科技集团股份有限公司2021年年度报告全文
Impact by non-taxable revenue -246008927.64
Impact on cost expenses and losses that unable to deducted 6100407.95
Impact by the deductible losses of the un-recognized previous deferred income tax -28736658.75
The deductible temporary differences or deductible losses of the un-recognized deferred income tax
18038494.97
assets in the Period
Impact on additional deduction -63047657.53
Other -2806917.24
Income tax expense 90995689.95
59. Other comprehensive income
See Note VII. 40 “Other comprehensive income”
60. Items of ash flow statement
(1) Other cash received in relation to operation activities
Unit: RMB/CNY
Item Current period Last Period
Interest income 41478845.32 52277269.56
Government grants 40118348.47 41044012.67
Margin on operation bill 3237920.90
Other 1333448.30 9252536.29
Total 86168562.99 102573818.52
(2) Other cash paid in relation to operation activities
Unit: RMB/CNY
Item Current period Last Period
Cash cost 628017019.32 840363837.09
Other 20190804.06 59565319.82
Total 648207823.38 899929156.91
(3) Cash received from other investment activities
Unit: RMB/CNY
Item Current period Last Period
Received the disposal payment 10654092.89
199无锡威孚高科技集团股份有限公司2021年年度报告全文
Received investment funds in transit at the end of 2019 30448157.81
Intercourse funds of unit 24000000.00
The contingent consideration received for the purchase of Borit’s equity 1136214.91
Other 544552.00
Total 1680766.91 65102250.70
(4) Cash paid related with investment activities
Unit: RMB/CNY
Item Current period Last Period
Margin paid by L/C for purchase of equipment 587241.00
Intercourse funds of unit 13992067.94
Total 14579308.94
(5) Other cash received in relation to financing activities
Unit: RMB/CNY
Item Current period Last Period
Borrowings received by WFLD 5470000.00 5470000.00
Borrowings received by IRD 260135.13
Total 5470000.00 5730135.13
(6) Cash paid related with financing activities
Unit: RMB/CNY
Item Current period Last Period
Account paid for purchasing minority equity of IRD 48507056.85
National debt paid transfer to loans 339090.00 351298.00
Borrowing return by WFLD 5470000.00
Lease payments 7718867.54 375886.28
Repurchase of A shares 400017180.33
Shares repurchase and cancellation for restricted
4068729.06
stock incentive plan and handling charge
Total 17596686.60 449251421.46
200无锡威孚高科技集团股份有限公司2021年年度报告全文
61. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
Unit: RMB/CNY
Supplementary information Current period Last Period
1. Net profit adjusted to cash flow of operation activities: -- --
Net profit 2649364676.15 2822735930.56
Add: Assets impairment provision 134057565.00 190022120.45
Depreciation of fixed assets consumption of oil assets and
399184362.08390748987.16
depreciation of productive biology assets
Depreciation of right-of-use assets 8672462.76
Amortization of intangible assets 42460206.35 37146026.79
Amortization of long-term deferred expenses 4800457.79 12637958.88
Loss from disposal of fixed assets intangible assets and other
-3932344.07-11454408.60
long-term assets (gain is listed with “-”)
Losses on scrapping of fixed assets (gain is listed with “-”) 24984204.92 738248.83
Gain/loss of fair value changes (gain is listed with “-”) 40270333.81 -383325765.19
Financial expenses (gain is listed with “-”) 31368748.20 17798991.04
Investment loss (gain is listed with “-”) -1944475801.41 -1957024490.66
Decrease of deferred income tax asset ((increase is listed with “-”) -54019435.84 -54432577.63
Increase of deferred income tax liability (decrease is listed with “-”) 3675792.90 66072310.95
Decrease of inventory (increase is listed with “-”) -723297146.60 -591321045.44
Decrease of operating receivable accounts (increase is listed with “-”) 1615814968.48 -1326286166.68
Increase of operating payable accounts (decrease is listed with “-”) -1676121153.69 1562204812.18
Other 74904696.58 5550301.37
Net cash flows arising from operating activities 627712593.41 781811234.01
2. Material investment and financing not involved in cash flow -- --
Conversion of debt into capital
Switching Company bonds due within one year
financing lease of fixed assets
3. Net change of cash and cash equivalents: -- --
Balance of cash at period end 1094018936.73 944946018.70
Less: Balance of cash equivalent at year-begin 944946018.70 820498653.85
Add: Balance at year-end of cash equivalents
Less: Balance at year-begin of cash equivalents
Net increase of cash and cash equivalents 149072918.03 124447364.85
201无锡威孚高科技集团股份有限公司2021年年度报告全文
(2) Net cash payment for the acquisition of a subsidiary in the period
Nil
(3) Net cash received from the disposal of subsidiaries
Nil
(4) Constitution of cash and cash equivalent
Unit: RMB/CNY
Item Ending balance Opening balance
I. Cash 1094018936.73 944946018.70
Including: Cash on hand 150438.79 507.66
Bank deposit available for payment at any time 1093868497.94 944945511.04
II. Balance of cash and cash equivalents at the
1094018936.73944946018.70
period-end
Other explanation:
The difference between bank deposits available for payment at any time and the bank deposits in Note VII. 1 "Monetary Funds" is the
company's fixed deposits in the bank.
62. Note of the changes of owners’ equity
Explain the items and amount at period-end adjusted for “Other” at end of the last year: nil
63. Assets with ownership or use right restricted
Unit: RMB/CNY
Item Ending Book value Restriction reason
Note receivable 727930810.05 Notes pledge for bank acceptance
Monetary funds 9347031.23 Forex Contracts USD Margin
Monetary funds 17459061.33 Cash deposit paid for bank acceptance
Monetary funds 4044016.40 Court freeze
Monetary funds 194220.00 Mastercard deposit
Receivables financing 191355521.58 Notes pledge for bank acceptance
In accordance with the civil ruling No.(2016)Y03MC2490 and No.(2016)
Y03MC2492 of Guangdong Shenzhen Intermediate People's Court the
property with the value of 217 million yuan under the name of the Company
Trading financial asset 252667176.66 and other seven respondents and the third party Shenzhen Hejun Chuangye
Holdings Co. Ltd. (Hereinafter referred to as Hejun Company) was frozen. As
of the end of the reporting period 4.71 million shares of Miracle Automation
and 11739102 shares of SDEC held by the Company were frozen.Total 1202997837.25 --
202无锡威孚高科技集团股份有限公司2021年年度报告全文
64. Item of foreign currency
(1) Item of foreign currency
Unit: RMB/CNY
Closing balance of foreign
Item Rate of conversion Ending RMB balance converted
currency
Monetary funds -- --
Including: USD 4635313.91 6.3757 29553370.90
EUR 3523091.48 7.2197 25435663.56
HKD 16665233.07 0.8176 13625494.56
DKK 47357072.54 0.9711 45988453.14
Account receivable -- --
Including: USD 3189026.92 6.3757 20332278.93
EUR 1194637.24 7.2197 8624922.48
HKD
JPY 6317177.00 0.0554 349971.61
DKK 11962185.67 0.9711 11616478.50
Long-term borrowings -- --
Including: USD
EUR
HKD
Other account receivables
Including: DKK 1930131.18 0.9711 1874350.39
Short-term borrowings
Including: USD 1213620.00 6.3757 7737677.03
EUR 26679517.79 7.2197 192618114.59
Account payable
Including: USD 454364.11 6.3757 2896889.26
EUR 2144276.32 7.2197 15481031.74
JPY 31215120.00 0.0554 1729317.65
DKK 9175001.10 0.9711 8909843.57
Other account payable
Including: DKK 76815.40 0.9711 74595.43
Non-current liabilities due within
one year
Including: EUR 380142.19 7.2197 2744512.57
203无锡威孚高科技集团股份有限公司2021年年度报告全文
(2) Explanation on foreign operational entity including as for the major foreign operational entity
disclosed main operation place book-keeping currency and basis for selection; if the book-keeping
currency changed explain reasons
√ Applicable □ Not applicable
Subsidiary of the Company IRD was established in Denmark in 1996. The 66% equity of IRD were required by the Company in cash
in April 2019 and in October 2020 increasing the shareholding to 34.00% by cash purchase. After the increase in holdings the
company acquired 100.00% of the company's equity. Book-keeping currency of IRD was Danish krone and IRD mainly engaged in
the R&D production and sales of fuel cell components.Subsidiary Borit was established in Belgium in 2010. the Company acquired 100% equity of Borit by cash acquisition in November
2020. Borit is denominated in Euro and engaged in the R&D production and sales of fuel cell components.
65. Government grants
(1) Government grants
Unit: RMB/CNY
Amount reckoned in
Category Amount Item
current gain/loss
Deferred income
Annual output of 150000 gasoline engine turbochargers 200000.00 416105.36
other income
Strategic cooperation agreement funding for key enterprise Deferred income
700000.00309130.41
of smart manufacturing in high-tech zone other income
Deferred income
Borit R&D grants 822830.04 1411156.80
other income
Deferred income
Wind2H 425268.54 425268.54
other income
Deferred income
FIT-4-AMANDA 723598.73 723598.73
other income
Deferred income
Anione 191020.47 897126.79
other income
Deferred income
3 R 526428.36 526428.36
other income
Deferred income
ECOethylene 2666335.01 1322854.33
other income
The third batch of provincial-level industrial and
13500000.00 Deferred income
information industry transformation special funds in 2021
Deferred income
2020 District Modernization Industry Development Fund 1890000.00 177548.52
other income
2020 Financial Support Fund for Investment Promotion
3740400.00 Other income 3740400.00
Enterprises
Special subsidy for provincial business development in
2551200.00 Other income 2551200.00
2021
Service charge for three agencies 1540317.23 Other income 1540317.23
204无锡威孚高科技集团股份有限公司2021年年度报告全文
Jiangbei District People's Government on Commending the
1450000.00 Other income 1450000.00
2020 Economic Innovation and Development Award
Guiding funds for intelligent transformation and
1500000.00 Other income 1500000.00
technological transformation
Job stabilization subsidy 1297349.42 Other income 1297349.42
BORIT withholding refund 991481.10 Other income 991481.10
Special funds to subsidize municipal enterprises after R&D
401200.00 Other income 401200.00
investment
2021 Enterprise New Apprenticeship Work Subsidy 573000.00 Other income 573000.00
2019 "Taihu Talent Program" project support fund
390000.00 Other income 390000.00
allocation
Subsidy funds for manufacturing individual champions
300000.00 Other income 300000.00
specializing in new small giants
subsidy for protype 250000.00 Other income 250000.00
Patent grant 220000.00 Other income 220000.00
District-level rewards for smart workshops 200000.00 Other income 200000.00
Nanjing Jiangbei New District High-tech Enterprise
200000.00 Other income 200000.00
Cultivation Award
Wuxi Binhu District Innovation Award Fund 160000.00 Other income 160000.00
2021 Science and Technology Innovation Fund 150000.00 Other income 150000.00
Jiangsu Postdoctoral Innovation Practice Base was selected
150000.00 Other income 150000.00
for funding in 2020
To honor Nanchang's 2019 annual work incentive funds for
150000.00 Other income 150000.00
cultivating industrial enterprises above designated size
Nanchang Newly-added corporate subsidies in 2019 150000.00 Other income 150000.00
2018-2020 Development Zone Talent Policy Continuous
241000.00 Other income 241000.00
Subsidy
Special funds for high-quality provinces and high-quality
110000.00 Other income 110000.00
districts in 2019
Postdoctoral pit-stop funding 100000.00 Other income 100000.00
Other 1656919.57 Other income 1656919.57
Total 40118348.47
(2) Government grants rebate
□ Applicable√ Not applicable
66. Other
Nil
205无锡威孚高科技集团股份有限公司2021年年度报告全文
VIII. Changes of consolidation scope
1. Enterprise combine not under the same control
(1) Enterprise combines not under the same control occurred in the period
Nil
(2) Combination cost and goodwill
Nil
(3) Identifiable assets and liability on purchasing date under the purchaser
Nil
(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) Notes relating to the purchase date or the end of the period in which the merger consideration or the
fair value of the purchasee’s identifiable assets and liabilities cannot be reasonable determined
Nil
(6) Other explanations
Nil
2. Enterprise combine under the same control
(1) Business combinations 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 the merger date
Nil
206无锡威孚高科技集团股份有限公司2021年年度报告全文
3. Reverse purchase
Nil
4. Disposal of subsidiaries
Whether there is a single disposal of an investment in a subsidiary that resulted in a loss of control
□ Yes √ No
Whether there is a step-by-step disposal of investment in a subsidiary through multiple transactions and loss of control during the
period
□ Yes √ No
5. Other reasons for consolidation range changed
Nil
6. Other
Nil
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Main Share-holding ratio
Registered
Subsidiary operation Business nature Acquired way
place Directly Indirectly
place
Spare parts of Enterprise combines under
WFJN Nanjing Nanjing 80.00%
internal-combustion engine the same control
Automobile exhaust purifier Enterprise combines under
WFLD Wuxi Wuxi 94.81%
muffler the same control
Spare parts of
WFMA Wuxi Wuxi 100.00% Investment
internal-combustion engine
Spare parts of
WFCA Wuxi Wuxi 100.00% Investment
internal-combustion engine
Enterprise combines under
WFTR Wuxi Wuxi Trading 100.00%
the same control
Spare parts of
WFSC Wuxi Wuxi 66.00% Investment
internal-combustion engine
WFTT Ningbo Ningbo Spare parts of 98.83% 1.17% Enterprise combines not
207无锡威孚高科技集团股份有限公司2021年年度报告全文
internal-combustion engine under the same control
Spare parts of Enterprise combines not
WFAM Wuxi Wuxi 51.00%
internal-combustion engine under the same control
Automobile exhaust purifier
WFLD (Wuhan) Wuhan Wuhan 60.00% Investment
muffler
WFLD Chongqin Automobile exhaust purifier
Chongqing 100.00% Investment
(Chongqing) g muffler
WFLD Automobile exhaust purifier
Nanchang Nanchang 100.00% Investment
(Nanchang) muffler
WFAS Wuxi Wuxi Smart car equipment 66.00% Investment
Enterprise combines not
WFDT Wuxi Wuxi Hub Motor 80.00%
under the same control
SPV Denmark Denmark Investment 100.00% Investment
Enterprise combines not
IRD Denmark Denmark Fuel cell components 100.00%
under the same control
Enterprise combines not
IRD America America America Fuel cell components 100.00%
under the same control
Enterprise combines not
Borit Belgium Belgium Fuel cell components 100.00%
under the same control
Enterprise combines not
Borit America America America Fuel cell components 100.00%
under 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
(2) Important non-wholly-owned subsidiary
Unit: RMB/CNY
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% 19273102.63 13970282.31 205874656.33
WFSC 34.00% 4363973.17 20911190.87
WFLD 5.19% 12062050.43 134688907.88
WFAM 49.00% 38432716.54 25671100.00 190028914.77
Total 74131842.77 39641382.31 551503669.85
Explanation on holding ratio different from the voting right ratio for minority shareholders: nil
208无锡威孚高科技集团股份有限公司2021年年度报告全文
(3) Main finance of the important non-wholly-owned subsidiary
Unit: RMB/CNY
Ending balance Opening balance
Subsidia Non-curr Non-curr Non-curr Non-curr
Current Total Current Total Current Total Current Total
ry ent ent ent ent
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
116324312639147588403140390656442206118287293436147631433667422939475961
WFJN
4507.43160.973668.40636.2272.06308.286680.02809.973489.99329.3414.58243.92
216066463027262369200467200467213435475338260968212812212812
WFSC
879.2441.60620.84446.49446.49154.5938.59993.18487.33487.33
450322135461585783355832214800357980494203121090615294420672284249423514
WFLD
3903.304615.108518.401743.4142.251785.669786.727784.807571.522685.6330.257615.88
413380483832897212450194599321510126323378427175750553325074635483388623
WFAM
063.83825.41889.24211.9062.99374.89083.30823.65906.95838.8192.29231.10
629591219738849330461212120477473260666172197905864078517827134267531254
Total
5353.809343.084696.884038.02877.301915.329704.634257.013961.647341.11237.124578.23
Unit: RMB/CNY
Current period Last Period
Cash flow Cash flow
Total Total
Subsidiary Operation from Operation from
Net profit comprehensi Net profit comprehensi
Income operation Income operation
ve income ve income
activity activity
825822469.96549390.596549390.579645579.9685608389.110875256.110875256.42395588.5
WFJN
064474344441
350165714.12839649.712839649.738135056.2252434907.14694274.814694274.8
WFSC -2270586.10
106686599
652726856337097184.337114070.-323189683.642784470245276849.245276849.41415937.0
WFLD
4.439610231.0088883
641120626.81627198.481627198.453533412.7485081038.50518929.750518929.786836060.4
WFAM
6122309550
834437737528113423.528130308.-151875634.785096903421365310.421365310.168376999.
Total
4.206882256.17969684
(4) Significant restrictions on the use of enterprise group assets and pay off debts of the enterprise group
Nil
209无锡威孚高科技集团股份有限公司2021年年度报告全文
(5) Financial or other supporting offers to the structured entity included in consolidated financial statement
range
Nil
2. Transaction that has owners’ equity shares changed in subsidiary but still with controlling rights
(1) Owners’ equity shares changed in subsidiary
Nil
(2) Impact on minority’s interest and owners’ equity attributable to parent company
Nil
3. Equity in joint venture and associated enterprise
(1) Important joint venture and associated enterprise
Share-holding ratio Accounting
treatment on
Main
Joint venture or associated Registered investment for
operation Business nature
enterprise place Directly Indirectly joint venture and
place
associated
enterprise
Wuxi WFECal Catalysts. Co. Ltd. Wuxi Wuxi Catalyst 49.00% Equity method
Internal-combustion
Robert Bosch Powertrain Ltd. Wuxi Wuxi 32.50% 1.50% Equity method
engine accessories
Zhonglian Automobile Electronics Internal-combustion
Shanghai Shanghai 20.00% Equity method
Co. Ltd. engine accessories
Wuxi Weifu Precision Machinery Internal-combustion
Wuxi Wuxi 20.00% Equity method
Manufacturing Co. Ltd. engine accessories
Shinwell Automobile Technology Automobile
Wuxi Wuxi 45.00% Equity method
(Wuxi) Co. Ltd. components
Changchun Xuyang Weifu
Automobile
Automobile components Changchun Changchun 34.00% Equity method
components
Technology Co. Ltd.Precors GmbH Germany Germany Fuel cell parts 8.11% Equity method
Wuxi Chelian Tianxia Information
Wuxi Wuxi Telematics services 8.83% Equity method
Technology Co. Ltd.Holding shares ratio different from the voting right ratio:
Nil
210无锡威孚高科技集团股份有限公司2021年年度报告全文
Has major influence with less 20% voting rights hold or has minor influence with over 20% (20% included) voting rights hold:
(1) Precors GmbH:
Wholly-owned subsidiary of the Company - Borit holds 8.11% equity of Precors Borit appointed a director to Precors. Though the
representative Borit can participate in the operation policies formulation of Precors and thus exercise a significant influence over
Precors.
(2) Chelian Tianxia:
The Company holds 8.8295% equity of Chelian Tianxia and appointed a director to Chelian Tianxia. Though the representative the
Company can participate in the operation policies formulation of Chelian Tianxi and thus exercise a significant influence over
Chelian Tianxi.
(2) Main financial information of the important joint venture
Nil
(3) Main financial information of the important associated enterprise
Unit: RMB/CNY
Ending balance/Current period Opening balance/Last Period
Zhonglian Zhonglian
WFEC RBCD WFEC RBCD
Automobile Automobile
Current assets 14697384325.8 11965249225.1
4359756878.8871871241.064446438334.10201344601.39
72
Non -current
344385727.943080929311.516819520183.89363513166.842995027302.845985689857.38
assets
17778313637.314960276527.9
Total assets 4704142606.82 6891391424.95 4809951500.94 6187034458.77
86
Current liabilities 2858118635.51 8623318592.84 2970685.68 3251776146.44 7423648562.76 3687897.36
Non-current
224616134.382578140.19175895402.902638609.61
liabilities
Total liabilities 3082734769.89 8623318592.84 5548825.87 3427671549.34 7423648562.76 6326506.97
Minority interests
Attributable to
parent company
1621407836.939154995044.546885842599.081382279951.607536627965.206180707951.80
shareholders’
equity
Share of net
assets calculated
794489840.103112698315.151377168519.82677317176.282562453508.171236141590.36
by shareholding
ratio
Adjustment
matters
211无锡威孚高科技集团股份有限公司2021年年度报告全文
--Goodwill 267788761.35 1407265.96 267788761.35 1407265.96
--Unrealized
profit of internal -40372840.77 -29652559.84
trading
--Other -0.28 -0.01 -0.28 -0.01
Book value of
equity investment
794489840.103340114235.451378575785.77677317176.282800589709.401237548856.31
in associated
enterprise
Fair value of
equity investment
for the affiliates
with
consideration
publicly
15712821656.315742669081.6
Operation income 7595559889.80 24479957.39 7458886474.12 23790158.00
21
Net profit 432505306.32 3237912797.87 1699134647.28 296484991.05 3511327740.19 1538581105.06
Net profit from
discontinued
operations
Other
comprehensive 34459.46
income
Total
comprehensive 432539765.78 3237912797.87 1699134647.28 296484991.05 3511327740.19 1538581105.06
income
Dividends
received from
associated 98000000.00 558125544.30 198800000.00 1801681159.00 331400000.00
enterprise in the
year
Other explanation
Adjustment item for other “-0.28”: the differential tail;
(4) Financial summary for non-important Joint venture and associated enterprise
Unit: RMB/CNY
Ending balance/Current period Opening balance/Last Period
Joint venture: -- --
212无锡威孚高科技集团股份有限公司2021年年度报告全文
Amount based on share-holding ratio -- --
Associated enterprise: -- --
Total book value of investment 204764926.80 86032548.98
Amount based on share-holding ratio -- --
--Net profit -13039885.78 13773166.19
-- Other comprehensive income
--Total comprehensive income -13039885.78 13773166.19
(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 conduct joint operation
Nil
5. Structured body excluding in consolidate financial statement
Relevant explanations for structured entities not included in the scope of the consolidated financial statements: nil
6. Other
Nil
X. Risk related with financial instrument
Main financial instrument of the Company including monetary funds structured deposits account receivable
equity instrument 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
213无锡威孚高科技集团股份有限公司2021年年度报告全文
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.
1. Credit Risk
Credit risk refers to the risk that one party of a financial instrument fails to perform its obligations and resulting
in the financial loss of other party. The company's credit risk mainly comes from monetary funds structured
deposits note receivable account receivable 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 farif 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.
2. Market risk
Market risk of the financial instrument refers to the fair value of financial instrument or future cash flow due to
fluctuations in the market price changes and produce mainly includes the IRR FX risk and other price risk.
(1) Interest rate risk (IRR)
IRR refers to the fluctuate risks on Company’s financial status and cash flow arising from rates changes in market.IRR of the Company mainly related with the bank loans. In order to lower the fluctuate of IRR the Company in
214无锡威孚高科技集团股份有限公司2021年年度报告全文
line with the anticipative change orientation choose floating rate or fixed rate that is the rate in future period will
goes up prospectively than choose fixed rate; if the rate in future period will decline prospectively than 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.
(2) Foreign exchange (FX) risk
FX risks refer to the losses arising from exchange rate movement. The FX risk sustain by the Company mainly
related with the USD EUR SF JPY HKD DKK except for the USD EUR SF JPY HKD and DKK carried out
for the equipment purchasing of parent company and Autocam material purchasing of parent company technical
service and trademark usage costs of parent company the import and export of Weifu International Trade
operation of IRD and operation of Borit other main business of the Company are pricing and settle with RMB
( yuan). In consequence of 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 31st December 2021 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 31st December 2021:
Cash on hand Ending foreign
Convert rate Ending RMB balance converted Ratio in assets (%)
currency balance
Monetary funds
Including: USD 4635313.91 6.3757 29553370.90 0.11
EUR 3523091.48 7.2197 25435663.56 0.09
HKD 16665233.07 0.8176 13625494.56 0.05
DKK 47357072.54 0.9711 45988453.14 0.16
Account receivable
Including: USD 3189026.92 6.3757 20332278.93 0.07
EUR 1194637.24 7.2197 8624922.48 0.03
JPY 6317177.00 0.0554 349971.61 0.00
DKK 11962185.67 0.9711 11616478.50 0.04
Other account receivables
Including: DKK 1930131.18 0.9711 1874350.39 0.01
Total ratio in assets 0.56
* Foreign currency liability of the Company till end of 31st December 2021:
Cash on hand Ending foreign
Convert rate Ending RMB balance converted Ratio in assets(%)
currency balance
Short-term borrowings
Including: USD 1213620.00 6.3757 7737677.03 0.10
EUR 26679517.79 7.2197 192618114.59 2.41
215无锡威孚高科技集团股份有限公司2021年年度报告全文
Account payable
Including: USD 454364.11 6.3757 2896889.26 0.04
EUR 2144276.32 7.2197 15481031.74 0.19
JPY 31215120.00 0.0554 1729317.65 0.02
DKK 9175001.10 0.9711 8909843.57 0.11
Other account payable
Including: DKK 76815.40 0.9711 74595.43 0.00
Non-current liabilities due
within one year
Including: EUR 380142.19 7.2197 2744512.57 0.03
Total ratio in liabilities 2.90
* 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 10th session of 8th BOD the Company exercise entrust
financing with the self-owned idle capital; therefore the Company has the risks of collecting no principal due toentrust financial products default. Aims at such risk the Company formulated a “Management Mechanism ofCapital Financing” and well-defined the authority approval investment decision-making calculation
management and risk controls for the entrust financing in order to guarantee a security funds and prevent
investment risk efficiently. In order to lower the adverse impact from unpredictable factors the Company choose
short-term and medium period for investment and investment product’s term is up to 3 years in principle; in
variety of investment the Company did not invest for the stocks derivative products security investment fund
and the entrust financial products aims at security investment as well as other investment with securities
concerned.
3. Liquidity risk
Liquidity risk refers to the capital shortage risk occurred during the clearing obligation implemented by 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.
216无锡威孚高科技集团股份有限公司2021年年度报告全文
XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
Unit: RMB/CNY
Ending fair value
Item
First-order Second-order Third-order Total
I. Sustaining measured by fair value -- -- -- --
(I) Transaction financial asset 267514710.11 74734940.30 5734186419.01 6076436069.42
1.Financial assets measured at fair
value and whose changes are 267514710.11 74734940.30 5734186419.01 6076436069.42
included in current profit or loss
(1) Investment in debt instruments
(2) Investment in equity instruments 267514710.11 5734186419.01 6001701129.12
(3) Foreign exchange contract 74734940.30 74734940.30
(II) Other equity instrument
285048000.00285048000.00
investment
(III) Receivables financing 713017014.50 713017014.50
(IV) Other non current financial
208795178.00208795178.00
assets - financial products
(V) Other non current financial
assets - equity instrument 1482000000.00 1482000000.00
investment
Total liability sustaining measured
267514710.11283530118.308214251433.518765296261.92
by fair value
II. Non-persistent measure -- -- -- --
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on
first-order
On 31 December 2021 the financial assets available for sale-equity instrument investment held by the Company refers to the SDEC
(stock code: 600841) Miracle Automation (Stock code: 002009) and Lifan Technology (Stock Code: 601777) determining basis of
the market price at period-end refers to the closing price of 31 December 2021.
3. The qualitative and quantitative information for the valuation technique and critical parameter that
sustaining and non-persistent measured by fair value on second-order
On 31 December 2021 other non-current financial assets-equity instrument investment held by the Company refers to the Guolian
Securities (stock code: 601456) determining basis of the market price at period-end refers to the closing price and liquidity discounts
of 31 December 2021.
217无锡威孚高科技集团股份有限公司2021年年度报告全文
The trading financial assets sustaining measured by fair value refers to the swap contracts and forward exchange contracts the fair
value measurement is based on the fair value of swap contracts and forward exchange contracts offered by the banks that entered into
the contracts.
4. The qualitative and quantitative information for the valuation technique and critical parameter that
sustaining and non-persistent measured by fair value on third-order
(1) Financing of accounts receivable
For this part of financial assets the Company uses discounted cash flow valuation techniques to determine its fair value. Among them
important unobservable input values mainly include discount rate and contractual cash flow maturity period. The cash flow with a
contract expiration period of 12 months (inclusive) shall not be discounted and the cost shall be regarded as its fair value.
(2) Fair value of other equity instrument investments - changes in fair value are included in other comprehensive income
For this part of financial assets due to the lack of market liquidity the Company adopts replacement cost method to determine their
fair value. Among them the important unobservable input values mainly include the financial data of the invested company.
(3) Fair value of investment in other debt instruments and equity instruments
For this part of financial assets the company uses discounted cash flow valuation technology to determine. Among them the
important unobtainable input values mainly include expected annual return rate and risk coefficient.
5. Continuous third-level fair value measurement items adjustment information between the opening and
closing book value and sensitivity analysis of unobservable parameters
Nil
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
218无锡威孚高科技集团股份有限公司2021年年度报告全文
XII. 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
Wuxi 5289262000 20.23% 20.23%
Group state-owned assets
Explanation on parent company of the enterprise
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 State-owned Assets Supervision & Administration Commission of Wuxi Municipality of
Jiangsu Province.Other explanation:
Nil
2. Subsidiary of the EnterpriseFound more in Note IX. 1.” Equity in subsidiary”
3. Joint venture and associated enterprise
Found more in Note IX.3. “Equity in joint venture and associated enterprise”
Other associated enterprise or joint ventures which has related transaction with the Company in the period or occurred previous:
Nil
4. Other Related party
Other Related party Relationship with the Enterprise
Robert Bosch Company Second largest shareholder of the Company
Guokai Metals Enterprises controlled by the parent company
Key executive Director supervisor and senior executive of the Company
5. Related transaction
(1) Goods purchasing labor service providing and receiving
Goods purchasing/labor service receiving
219无锡威孚高科技集团股份有限公司2021年年度报告全文
Unit: RMB/CNY
Whether more than
Content of related Approved transaction
Related party Current period the transaction limit Last Period
transaction limit
(Y/N)
WFPM Goods and labor 49839916.90 42000000.00 Y 34570825.03
RBCD Goods and labor 359903131.37 335000000.00 Y 29740591.61
WFEC Goods 823962918.45 1650000000.00 N 3051418777.65
Robert Bosch
Goods and labor 216576637.98 215000000.00 Y 150855622.37
Company
Changchun Xuyang Goods 1712596.87 Y
Shinwell Automobile Goods 1000000.00 N 1733572.01
Guokai Metals Goods 57991174.20 Y
Goods sold/labor service providing
Unit: RMB/CNY
Related party Content of related transaction Current period Last Period
WFPM Goods and labor 29501561.74 6092391.01
RBCD Goods and labor 3137245415.70 2961684269.09
WFEC Goods and labor 7630155.96 29663885.81
Robert Bosch Company Goods and labor 1224350229.77 860611502.90
Shinwell Automobile Goods 29250.79 103329.66
Changchun Xuyang Goods and labor 21436170.70
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
As a lessor for the Company:
Unit: RMB/CNY
Lessee Assets type Lease income recognized in the Period Lease income recognized at last Period
WFEC Workshop 1683130.70 2508057.00
Explanation on related lease
WFLD entered into the house leasing contract with WFEC as for the plant locates at No.9 Linjiang Road Wuxi Xinwu district
owed by WFLD rent-out to WFEC agreements are made as: the rental from 1 January 2021 to 31 December 2021 was 1683130.70
yuan due to the reduction in leased space.
220无锡威孚高科技集团股份有限公司2021年年度报告全文
(4) Related guarantee
Nil
(5) Related party’s borrowed/lending funds
Unit: RMB/CNY
Related party Loan amount Start date Maturity Note
Borrowing
Wuxi Industry This year WFLD received borrowed funds
5470000.002021-07-292022-07-21
Group from Wuxi Industry Group.Lending
This year WFLD received 5.47 million yuan of borrowed funds from Wuxi Industrial Group and repaid 5.47 million yuan of
borrowed funds from Wuxi Industrial Group
(6) Related party’s assets transfer and debt reorganization
Nil
(7) Remuneration of key manager
Unit: RMB/CNY
Item Current period Last Period
Remuneration of key manager 26170000.00 16986000.00
(8) Other related transactions
Related party Name Current period Last Period
WFPM Payable for technical services -- 54783.81
WFPM Purchase of fixed assets -- 145200.00
RBCD Payable for technical services 455591.30 184740.27
RBCD Purchase of fixed assets 528378.37 447692.06
RBCD Technology royalties paid etc. 2332313.62 295419.00
Robert Bosch Company Technology royalties paid etc. 5577508.74 5072260.23
Robert Bosch Company Purchase of fixed assets 927851.05 22927889.53
WFEC Purchase of fixed assets 20353.98 30000.00
WFEC Payable for technical services 450000.00 64433.96
WFEC Sales of fixed assets -- 9426.00
WFEC Provide technical services etc. 873420.02 --
221无锡威孚高科技集团股份有限公司2021年年度报告全文
6. Receivable/payable items of related parties
(1) Receivable item
Unit: RMB/CNY
Ending balance Opening balance
Item Related party
Book balance Bad debt reserve Book balance Bad debt reserve
Account receivable WFPM 1233084.39 160565.87
Account receivable RBCD 48954455.60 56805.74 549543387.12
Robert Bosch
Account receivable 236685486.17 426203.85 205738695.62 84473.87
Company
Other account Robert Bosch
692995.30
receivables Company
Account receivable Changchun Xuyang 995215.93
Account receivable WFEC 6212780.39 642390.75
Other account
WFEC 49000000.00
receivables
Robert Bosch
prepayments 539263.12 2970930.93
Company
Other non-current Robert Bosch
9932547.00
assets Company
(2) Payable item
Unit: RMB/CNY
Item Related party Ending book balance Opening book balance
Account payable WFPM 11634159.55 12959303.46
Other account payable WFPM 29000.00 29000.00
Account payable WFEC 299939408.63 850384640.88
Account payable RBCD 33418536.50 7178387.17
Account payable Robert Bosch Company 16412385.58 5370249.46
Account payable Shinwell Automobile 19320.30
Account payable Guokai Metals 2.86
Other current liabilities RBCD 120466375.78 169620804.78
Other current liabilities WFPM 74778.76
Other current liabilities Robert Bosch Company 39165.98
222无锡威孚高科技集团股份有限公司2021年年度报告全文
Other account payable Wuxi Industry Group 5476184.14 5474862.22
Other account payable Guokai Metals 2717849.00
Contract liability WFPM 619469.03
Contract liability RBCD 0.36 0.36
Contract liability Robert Bosch Company 796325.77 18094.85
7. Undertakings of related party
Nil
8. Other
Nil
XIII. Share-based payment
1. Overall situation of share-based payment
√ Applicable □ Not applicable
Unit: RMB/CNY
Total amount of various equity instruments granted by the company in
0.00
the current period
Total amount of various equity instruments exercised by the company in
0.00
the current period
Total amount of various equity instruments invalidated by the company in
4504680.00
the current period
The grant price is 15.48 yuan per share; the exercise time
is from the first trading day 24 months after the
completion of the registration of the restricted stocks
The scope of the exercise price of the stock options issued by the granted in the first tranche to the last trading day within
company at the end of the period and the remaining period of the contract 60 months from the date of completion of the
registration of the restricted stock granted in the first
tranche so the remaining period of the contract is 3
years and 11 months.The scope of the exercise price of other equity instruments issued by the
N/A
company at the end of the period and the remaining period of the contract
2. Share-based payment settled by equity
√ Applicable □ Not applicable
Unit: RMB/CNY
Method for determining the fair value of equity instruments on the Determine based on the closing price of the restricted stock on
223无锡威孚高科技集团股份有限公司2021年年度报告全文
grant date the grant date
Basis for determining the number of vesting equity instruments Unlocking conditions
Reasons for the significant difference between estimate in the
Not Applicable
current period and estimate in the prior period
Cumulative amount of equity-settled share-based payments
83047405.54
included in the capital reserve
Total amount of expenses confirmed by equity-settled share-based
76562568.04
payments in the current period
Other explanations
Other explanations:
This restricted stock incentive plan has been reviewed and approved by the company's second extraordinary general meeting of
shareholders in 2020. The overview of this restricted stock incentive plan is as follows:
(1) Stock source: the company's A-share common stock repurchased from the secondary market.
(2) Grant date: November 12 2020.
(3) Grant objects and number of grants: 19540000 restricted stocks were granted to 601 incentive objects of the company and its
subsidiaries.
(4) Grant price: 15.48 yuan/share.
(5) Grant registration completion date: December 4 2020.
(6) Lifting the restrictions on sales:
Unlock period Unlock time Ratio of unlocked quantity
to granted quantity
Phase I unlocked Starting from the first trading day 24 months after the completion of the registration
of the first grant and ending on the last trading day within 36 months
Phase II unlocked Starting from the first trading day 36 months after the completion of the registration
of the first grant and ending on the last trading day within 48 months
Phase III unlocked Starting from the first trading day 48 months after the completion of the registration
of the first grant and ending on the last trading day within 60 months
(7) Performance appraisal requirements at the company level:
Unlock conditions Performance appraisal requirements
1. the weighted average ROE for year of 2021 is not less than 10%;
2. the growth rate of self-operating profit in 2021 will not be less than 6% compared with the year of
The first batch of unlock
2019 the absolute amount will not be less than 845 million yuan;
conditions
3. the cash dividends for year of 2021 shall be no less than 50% of the profit available for distribution
of the current year.The second batch of unlocking 1. the weighted average ROE for year of 2022 is not less than 10%;
conditions 2. the growth rate of self-operating profit in 2022 will not be less than 12% compared with the year of
2019 the absolute amount will not be less than 892 million yuan;
3. the cash dividends for year of 2022 shall be no less than 50% of the profit available for distribution
of the current year.The third batch of unlocking 1. the weighted average ROE for year of 2023 is not less than 10%;
conditions 2. the growth rate of self-operating profit in 2023 will not be less than 20% compared with the year of
224无锡威孚高科技集团股份有限公司2021年年度报告全文
2019 the absolute amount will not be less than 958 million yuan;
3. the cash dividends for year of 2023 shall be no less than 50% of the profit available for distribution
of the current year.Other explanation: self-operating profit refers to the net profit attributable to the owners of the parent company after deducting
non-recurring gains and losses and deducting the investment income from RBCD and CNEMS.
3. Share-based payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of share-based payment
Nil
5. Other
Nil
XIV. Undertakings or contingency
1. Important undertakings
Important undertakings on balance sheet date
Nil
2. Contingency
(1) Contingency on balance sheet date
Nil
(2) For the important contingency not necessary to disclosed by the Company explained reasons
The Company has no important contingency that need to disclosed
(3) 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
225无锡威孚高科技集团股份有限公司2021年年度报告全文
3. Other
Nil
XV. Events after balance sheet date
1. Important non adjustment matters
Nil
2. Profit distribution
Unit: RMB/CNY
Profit or dividend plans to distributed 1613765268.80
Profit or dividend declare to distributed which have been approved 1613765268.80
3. Sales return
Nil
4. Other events after balance sheet date
On February 7 2022 the Company held the 7th session of 10th BOD to deliberated and approved the Proposal
on Acquisition of Equity and Related Transactions. The Company intends to purchase the VHIT S.p.A. ocietà
Unipersonale and its wholly-owned subsidiary - 100% equity of VHIT Automotive Systems(Wuxi) Co. Ltd held
by Robert Bosch S.p.A. Società Unipersonale for a consideration of approximately 60 million euros. Upon
transaction completion VHIT and VHCN will included in the consolidate statement of the Company.XVI. Other important events
1. Previous accounting errors collection
Nil
2. Debt restructuring
Nil
3. Assets replacement
Nil
226无锡威孚高科技集团股份有限公司2021年年度报告全文
4. Pension plan
The Enterprise Annuity Plan under the name of WFHT has deliberated and approved by 8th session of 7th 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 total 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 percent 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 reporting 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
The Company mainly engaged in the manufacture of fuel system of internal combustion engine and fuel cell
components products auto components muffler and purifier etc. based on the product segment the Company
determine three reporting segments as auto fuel injection system and fuel cell components air management
system and automotive post processing system. Accounting policy for the three reporting segments are shares the
227无锡威孚高科技集团股份有限公司2021年年度报告全文
same policy state in Note V
Segment assets exclude transaction financial asset other account receivables-dividend receivable other
non-current financial assets other equity instrument investment long term equity investment and other
undistributed assets since these assets are not related to products operation.
(2) Financial information for reportable segment
Unit: RMB/CNY
Add:
undistributed
assets and profits
and losses such as
investment or
Automotive fuel Product segment Product segment
income debt
injection system of automotive of air
Item instrument and Offset of segment Total
and fuel cell parts post processing management
equity instrument
product division system system
investment or its
holding and
disposal income
accounted by
equity method
Operating income 6614355862.92 6627678374.59 679279175.80 238886702.36 13682426710.95
Operating cost 5014698591.79 5912290423.73 484489294.01 191110595.96 11220367713.57
Total Profit 657306321.47 118725331.77 50122583.72 1914222928.04 16798.90 2740360366.10
Net profit 589576060.81 133353803.04 52794682.10 1873652613.41 12483.21 2649364676.15
Total assets 13748963807.8
9524779508.574688890555.65919986689.80911762134.0727970858427.84
9
Total liabilities 4105047118.96 3610393608.66 499348559.69 -184141.69 206448473.25 8008156672.37
(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
Not applicable
(4) Other explanations
Nil
7. Major transaction and events makes influence on investor’s decision
Nil
228无锡威孚高科技集团股份有限公司2021年年度报告全文
8. Other
Nil
XVII. Principal notes of financial statements of parent company
1. Account receivable
(1) Classification of account receivable
Unit: RMB/CNY
Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Category Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Account receivable
with bad debt 780394 780394 1110712 1110712
1.42%100.00%1.11%100.00%
provision accrual on 5.24 5.24 3.51 3.51
a single basis
Including:
Account receivable
with bad debt 540453 349595 5369578 9858821 3099860 98278227
98.58%0.65%98.89%0.31%
provision accrual on 844.97 4.75 90.22 39.36 .14 9.22
portfolio
Including:
Including:
32400134959532050558363296309986083322976
receivables from 59.10% 1.08% 83.89% 0.37%
494.504.7539.7526.26.146.12
customers
Receivables from
2164522164523149552514955251
internal related 39.48% 15.00%
350.4750.4713.103.10
parties
54825711299853695789969892142069898278227
Total 100.00% 2.06% 100.00% 1.42%
790.2199.9990.2262.873.659.22
Bad debt provision accrual on single basis: RMB 7803945.24
Unit: RMB/CNY
Ending balance
Name Bad debt
Book balance Accrual ratio Accrual causes
reserve
Have difficulty in
BD bills 7300000.00 7300000.00 100.00%
collection
229无锡威孚高科技集团股份有限公司2021年年度报告全文
Have difficulty in
Tianjin Leiwo Engine Co. Ltd. 503945.24 503945.24 100.00%
collection
Total 7803945.24 7803945.24 -- --
Bad debt provision accrual on portfolio: RMB 3495954.75
Unit: RMB/CNY
Ending balance
Name
Book balance Bad debt reserve Accrual ratio
Within 6 months 306383472.02
6 months to one year 13797094.52 1379709.43 10.00%
1-2 years 1883035.50 376607.10 20.00%
2-3 years 330423.74 132169.50 40.00%
Over 3 years 1607468.72 1607468.72 100.00%
Total 324001494.50 3495954.75 --
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses please refer
to the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √ Not applicable
By account age
Unit: RMB/CNY
Account age Book balance
Within one year (One year included) 531511454.98
Including: within 6 months 499628726.55
6 months to one year 31882728.43
1-2 years 7004497.53
2-3 years 330423.74
Over 3 years 9411413.96
3-4 years 9411413.96
Total 548257790.21
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual in the period:
Unit: RMB/CNY
Amount changed in the period
Category Opening balance Collected or Ending balance
Accrual Written-off Other
reversal
Bad debt
14206983.65431630.573338714.2311299899.99
provision
230无锡威孚高科技集团股份有限公司2021年年度报告全文
Total 14206983.65 431630.57 3338714.23 11299899.99
Important bad debt provision collected or switch back: nil
(3) Account receivable actual charge off in the Period
Unit: RMB/CNY
Item Amount charge off
Wuxi Kaipu Machinery Co. Ltd. 1126236.40
Fujian Zhao’an Country Minyue Bianjie Agricultural Machinery
1111007.12
Automobile Components Co. Ltd.Changzhou Borui Oil Pump & Nozzle Co. Ltd. 646437.00
Other customers 455033.71
Total 3338714.23
Major charge-off for the major receivable: nil
(4) Top 5 receivables at ending balance by arrears party
Unit: RMB/CNY
Ending balance of account Ratio in total ending balance of Ending balance of bad debt
Name
receivable account receivables reserve
WFSC 79968096.84 14.59%
WFLD 55684351.21 10.16%
RBCD 46501776.95 8.48% 56805.74
Custom 4 41026419.35 7.48% 1092323.65
WFTR 40840838.10 7.45%
Total 264021482.45 48.16% --
(5) Account receivable derecognition due to financial assets transfer
Nil
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Nil
2. Other account receivables
Unit: RMB/CNY
Item Ending balance Opening balance
231无锡威孚高科技集团股份有限公司2021年年度报告全文
Interest receivable 113055.56 897777.78
Dividend receivable 26718900.00
Other account receivables 177293562.07 196437936.85
Total 204125517.63 197335714.63
(1) Interest receivable
1) Category of interest receivable
Unit: RMB/CNY
Item Ending balance Opening balance
Interest receivable of unified-borrowing &
113055.56897777.78
unified-lending
Total 113055.56 897777.78
2) Significant overdue interest
Nil
3) Accrual of bad debt provision
□ Applicable √ Not applicable
(2) Dividend receivable
1) Category of dividend receivable
Unit: RMB/CNY
Item (or invested enterprise) Ending balance Opening balance
WFAM 26718900.00
Total 26718900.00
2) Important dividend receivable with account age over one year
Nil
3) Accrual of bad debt provision
□ Applicable √ Not applicable
232无锡威孚高科技集团股份有限公司2021年年度报告全文
(3) Other account receivables
1) Other account receivables classification by nature
Unit: RMB/CNY
Nature Ending book balance Opening book balance
Staff loans and petty cash 400080.00 483650.21
Balance of related party in the consolidate
169746521.72194745396.72
scope
Margin 1518640.00 1030340.00
Social security and provident fund paid 5926527.66 256334.00
Other 9364.69 7200.00
Total 177601134.07 196522920.93
2) Accrual of bad debt provision
Unit: RMB/CNY
Phase I Phase II Phase III
Expected credit Expected credit losses for Expected credit losses for
Bad debt reserve Total
losses over next 12 the entire duration (without the entire duration (with
months credit impairment occurred) credit impairment occurred)
Balance of Jan. 1 2021 84984.08 84984.08
Balance of Jan. 1 2021
————————
in the period
Current accrual 222587.92 222587.92
Balance on Dec. 31 2021 307572.00 307572.00
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √ Not applicable
By account age
Unit: RMB/CNY
Account age Book balance
Within one year (One year included) 142516992.35
Within 6 months 137416992.35
6 months to one year 5100000.00
1-2 years 20493906.00
2-3 years 14552695.72
Over 3 years 37540.00
233无锡威孚高科技集团股份有限公司2021年年度报告全文
3-4 years 37540.00
Total 177601134.07
3) Bad debt provision accrual collected or switch back
Bad debt provision accrual in the period:
Unit: RMB/CNY
Amount changed in the period
Opening
Category Collected or Ending balance
balance Accrual Written-off Other
reversal
Bad debt provision 84984.08 222587.92 307572.00
Total 84984.08 222587.92 307572.00
Including the important bad debt provision switch back or collected in the period: nil
4) Other receivables actually written-off during the reporting period
Nil
5) Top 5 other receivables at ending balance by arrears party
Unit: RMB/CNY
Ratio in total ending
Ending balance of
Enterprise Nature Ending balance Account age balance of other
bad debt reserve
receivables
Balance of related party in
WFLD 100000000.00 Within 1 year 56.31%
the consolidate scope
Balance of related party in
WFCA 54193906.00 Within 2 years 30.51%
the consolidate scope
Balance of related party in
WFMA 15552615.72 Within 3 years 8.76%
the consolidate scope
Zhenkunxing
Industrial
Margin 1000000.00 1-2 years 0.56% 200000.00
Supermarket
(Shanghai) Co. Ltd.Employee Loans and
Wang Xiaojin 400000.00 Within 2 years 0.23% 70000.00
Reserve Funds
Total -- 171146521.72 -- 96.37% 270000.00
234无锡威孚高科技集团股份有限公司2021年年度报告全文
6) Other account receivables related to government grants
Nil
7) Other receivable for termination of confirmation due to the transfer of financial assets
Nil
8) The amount of assets and liabilities that are transferred other receivable and continued to be involved
Nil
3. Long-term equity investments
Unit: RMB/CNY
Ending balance Opening balance
Depreciati Depreciati
Item
Book balance on Book value Book balance on Book value
reserves reserves
Investment for subsidiary 2106415908.37 2106415908.37 1978302303.40 1978302303.40
Investment for associates
4760866320.194760866320.193999826000.483999826000.48
and joint venture
Total 6867282228.56 6867282228.56 5978128303.88 5978128303.88
(1) Investment for subsidiary
Unit: RMB/CNY
Changes in Current Period Ending
The invested Opening balance Ending balance balance of
Additional Negative Provision for
entity (book value) Other (book value) depreciation
Investment Investment impairment loss
reserves
WFJN 179208759.14 6765271.87 185974031.01
WFLD 460845639.39 8122707.00 468968346.39
WFMA 168847702.38 2150549.94 170998252.32
WFCA 221046402.93 1732387.50 222778790.43
WFTR 32908992.35 1015537.50 33924529.85
WFSC 50244628.12 906018.74 51150646.86
WFTT 235185028.12 2927137.50 238112165.62
WFAM 82454467.99 82454467.99
WFDT 53887039.61 228994.92 54116034.53
235无锡威孚高科技集团股份有限公司2021年年度报告全文
SPV 493673643.37 104265000.00 597938643.37
Total 1978302303.40 128113604.97 2106415908.37
(2) Investment for associates and joint venture
Unit: RMB/CNY
Current changes (+ -) Endin
g
Other Othe balan
Opening Addit Capit Investment compre r Cash dividend Impair Ending ce of
balance (book ional al gain/loss hensive equit or profit ment balance (book depre
Enterprise Other
value) invest reduc recognized income y announced to accrua value) ciatio
ment tion under equity adjustm chan issued l n
ent ge reserv
es
I. Joint venture
II. Associated enterprise
2687524679.1039367216.4-533502358.3193389537
RBCD
53352.44
Zhonglian
1237548856.-198800000.1378575785
Automobi 339826929.46
3100.77
le
6638
-30000000.0
WFPM 74752464.64 -5545423.28 000. 45845041.36
0
00
1500
Chelian 143055955.6
0000-6944044.38
Tianxia 2
0.00
3999826000.4760866320
Subtotal
48.19
15006638
3999826000.1366704678.2-762302358.4760866320
Total 0000 000.
48352.19
0.0000
(3) Other explanations
Nil
236无锡威孚高科技集团股份有限公司2021年年度报告全文
4. Operating income and cost
Unit: RMB/CNY
Current period Last Period
Item
Income Cost Income Cost
Main business 4392019155.83 3267569244.02 4164444997.29 2955881019.87
Other business 440321634.62 337773263.46 371972806.50 280430592.86
Total 4832340790.45 3605342507.48 4536417803.79 3236311612.73
5. Investment income
Unit: RMB/CNY
Item Current period Last Period
Investment income from holding transaction
309089065.06683211.60
financial asset
Investment income in subsidiaries 82600029.25 62995075.18
Investment income in joint ventures and
1366704678.231457471604.06
associated enterprises
Investment income of financial products 0 258702394.98
Other 36907117.60
Total 1758393772.54 1816759403.42
6. Other
Nil
XVIII. Supplementary Information
1. Current non-recurring gains/losses
√ Applicable □ Not applicable
Unit: RMB/CNY
Item Amount Note
Gains/losses from the disposal of non-current asset -12350725.86
Governmental grants reckoned into current gains/losses (except for those with normal
operation business concerned and conform to the national policies & regulations and are 71274511.67
continuously enjoyed at a fixed or quantitative basis according to certain standards)
Profit and loss of assets delegation on others’ investment or management 2425.40
237无锡威孚高科技集团股份有限公司2021年年度报告全文
Except for the effective hedging operations related to normal business operation of the
Company the gains/losses of fair value changes from holding the trading financial assets and
-29889140.23
trading financial liabilities and the investment earnings obtained from disposing the trading
financial asset trading financial liability and financial assets available for sale
Switch back of provision for depreciation of account receivable which was singly taken
8976264.09
depreciation test
Other non-operating income and expenditure except for the aforementioned items 130837.12
Less: Impact on income tax 4345456.60
Impact on minority shareholders’ equity 2987222.54
Total 30811493.05 --
Specific information on other items of profits/losses that qualified the definition of non-recurring profit(gain)/loss
□Applicable √Not applicable
The Company does not have other items of profits/losses that qualified the definition of non-recurring profit(gain)/loss
Information on the definition of non-recurring profit(gain)/loss that listed in the Q&A Announcement No.1 on Information Disclosure
for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss as the recurring
profit(gain)/loss
□Applicable √Not applicable
2. ROE and earnings per share
Earnings per share
Profits during report period Weighted average ROE Basic earnings per share Diluted earnings per
(RMB/Share) share (RMB/Share)
Net profits belong to common stock stockholders of the
13.67%2.572.57
Company
Net profits belong to common stock stockholders of the
13.51%2.542.54
Company 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
238无锡威孚高科技集团股份有限公司2021年年度报告全文
(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
(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:
Wang Xiaodong
19 April 2022
239
沪公网安备31011802005267号
