WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
WEIFU HIGH-TECHNOLOGY GROUP CO. LTD.ANNUAL REPORT 2023
April 2024
1WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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 and Rong Bin person in charger of accounting works
and Wu Junfei person in charge of accounting organ (accounting principal) hereby confirm that the
Financial Report of 2023 Annual Report is authentic accurate and complete.All directors have attended the BoD Meeting for the Report deliberation.Non standard audit opinion reminder
□Applicable □Not applicable
Gongzheng Tianye Certified Public Accountants (SGP) issued the audit report for the Company
with an unqualified opinion with highlighted paragraphs the Board of Directors and the Board of
Supervisors of the Company have explained the relevant matters in detail please read carefully.The forward-looking statements with future plans involved in the Report do not constitute a
substantial commitment for investors. Investors and related parties should maintain sufficient risk
awareness and investors are advised to exercise caution of investment risks.Main risks that the Company may face in future operation are described in the “Prospect of futuredevelopment of the Company” under the “Discussion and Analysis of the Management” in the
Report and investors are advised to check them out.The profit distribution plan that was deliberated and approved by the Board Meeting is: Based on
total share capital of 977162793 distributed 10.00 yuan (tax included) bonus in cash for every 10-
share held by all shareholders 0 share bonus issued (tax included) and no transfer of capital reserve
into share capital. When the profit distribution plan is implemented if there is a change in the total
amount of shares entitled to profit distribution the total amount of shares entitled to profit
distribution on the equity registration date at the time of implementation of the distribution plan
2WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
shall be adjusted based on the principle of unchanged distribution proportion.The Report is prepared in Chinese and English respectively. In the event of any discrepancy
between the two versions the Chinese version shall prevail.
3WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Content
Section I. Important Notice Contents and Interpret... 2
Section II Company Profile and Main Financial Inde... 7
Section III Discussion and Analysis of the Managem.. 11
Section IV. Corporate Governance ................... 37
Section V. Environmental and Social Responsibility.. 56
Section VI. Important Matters ...................... 63
Section VII. Changes in Shares and Particulars abo.. 78
Section VIII. Preferred Stock ...................... 86
Section IX. Corporate Bonds ........................ 87
Section X. Financial Report ........................ 88
4WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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 firm and signature and seal of the CPA;
III. Original documents of the Company and manuscripts of public notices that were disclosed in the website
designated by CSRC in the reporting period;
IV. Text of the Annual Report 2023 containing the signature of the legal representative of the Company;
V. Place for preparation: BoD office of the Company.
5WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Interpretation
Items Refers to Contents
Company The Company WFHT Refers to WEIFU HIGH-TECHNOLOGY GROUP CO. LTD.Weifu Group Refers to Wuxi Weifu Group Co. Ltd.Wuxi Industry Group Refers to Wuxi Industry Development Group Co. Ltd.Robert Bosch Robert Bosch
Refers to Robert Bosch Co. Ltd ROBERT BOSCH GMBH
Company
RBCD Refers to Robert Bosch Powertrain Ltd.WUXI WEIFU LIDA CATALYTIC CONVERTER CO.WFLD Refers to
LTD.WFJN Refers to NANJING WFJN CO. LTD.NINGBO WFTT TURBOCHARGING TECHNOLOGY
WFTT Refers to
CO.LTD.WFCA Refers to WUXI WEIFU CHANG AN CO.LTD.WUXI WEIFU MASHAN FUEL INJECTION
WFMA Refers to
EQUIPMENT CO. LTD.WFTR Refers to WUXI WEIFU INTERNATIONAL TRADE CO.LTD.WUXI WEIFU SCHMITTER POWERTRAIN
WFSC Refers to
COMPONENTS CO.LTD.WFAM Refers to WUXI WFAM PRECISION MACHINERY CO.LTD.WFDT Refers to WUXI WEIFU E-DRIVE TECHNOLOGIES CO. LTD.WUXI WEIFU AUTOSMART SEATING SYSTEM CO.WFAS Refers to
LTD.SPV Refers to Weifu Holding ApS
IRD Refers to IRD Fuel Cells A/S
Borit Refers to Borit NV
WFQL Refers to Wuxi Weifu Qinglong Power Technology Co. Ltd.VHIO Refers to VHIT S.p.A. Società Unipersonale
VHWX Refers to VHIT Automotive Systems(Wuxi) Co.Ltd
Lezhuo Bowei Refers to Lezhuo Bowei Hydraulic Technology (Shanghai) Co. Ltd
WFEC Refers to Wuxi WFECal Catalysts. Co. Ltd.WFPM Refers to Wuxi Weifu Precision Machinery Manufacturing Co. Ltd
Zhonglian Electronics Refers to Zhonglian Automobile Electronics Co. Ltd.Auto Link Refers to Wuxi Chelian Tianxia Information Technology Co. Ltd
Changchun Xuyang Refers to Changchun Xuyang Weifu Automotive Parts Technology Co. Ltd
Guokai Metal Refers to Wuxi Guokai Metal Resources Co. Ltd.CSRC Refers to China Securities Regulatory Commission
SZSE Refers to Shenzhen Stock Exchange
Gongzheng Tianye Certified Public Accountants (Special
Gongzheng Tianye Refers to
General Partnership)
The reporting period Refers to From Jan. 1 2022 to Dec. 31 2022
6WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Section II Company Profile and Main Financial Indexes
I. Company information
Short form of the stock WFHT Su Weifu-B Stock code 000581 200581
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in Chinese) 无锡威孚高科技集团股份有限公司
Short form of the Company (in威孚高科
Chinese)
Foreign name of the Company (if
WEIFU HIGH-TECHNOLOGY GROUP CO.LTD.applicable)
Short form of foreign name of the
WFHT
Company (if applicable)
Legal representative 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
Registrations add.Wuxi; 3. No.139 Xixie Road Xinwu District Wuxi; 4. No.13 Xinhua Road Xinwu
District Wuxi)
Code for registrations add 214028On May 25 1994 registered address of the Company changed to “Lot 46 NationalHigh-Tech Industrial Development Zone Wuxi” instead of “No.107 Renmin WestRoad Wuxi”; on December 9 2008 registered address changed to “No.5 HuashanRoad New District Wuxi” instead of“Lot 46 National High-Tech IndustrialHistorical changes of registered address Development Zone Wuxi”; on June 12 2019 registered address changed to “No.5Huashan Road Xiwu District Wuxi (production & operation place:1. No.8 Huashan
Road Xinwu District Wuxi; 2. No.17 Changjiang Road Xinwu District Wuxi; 3.No.139 Xixie Road Xinwu District Wuxi; 4. No.13 Xinhua Road Xinwu DistrictWuxi)”
Offices add. No.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
7WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
III. Information disclosure and preparation place
Website of the Stock Exchange where the
Shenzhen Stock Exchange(http://www.szse.cn/)
annual report of the Company is disclosed
Media and Website where the annual China Securities Journal; Securities Times; and Juchao
report of the Company is disclosed Website(http://www.cninfo.com.cn)
Preparation place for annual report Office of the Board of Directors
IV. Registration changes of the Company
Organization code 91320200250456967N
Changes of main business since listing (if applicable) No change
Controlling shareholder of the Company was Weifu Group before
2009. and controlling shareholder changed to Wuxi Industry
Group since 31 May 2009 due to the merge of Weifu Group by
Wuxi Industry Group. Weifu Group and Wuxi Industry Group are
Previous changes of controlling shareholders (if applicable) wholly state-owned companies of Wuxi State-owned Assets
Supervision & Administration Commission of State Council
therefore the actual controller of the Company turns to Wuxi
State-owned Assets Supervision & Administration Commission of
State Council.V. Other relevant information
CPA engaged by the Company
Name of CPA 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 the reporting period
□ Applicable □ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in the reporting period
□ Applicable □ Not applicable
VI. Main accounting data and financial indexes
Whether the Company is required to retrospectively adjust or restate prior year’s accounting data
□ Yes □ No
Year-on-year
202320222021
increase(+)/decrease(-)
Operation income (RMB) 11093141950.98 12729634917.03 -12.86% 13682426710.95
Net profit attributable to shareholders of
1837291259.68118819836.301446.28%2575371419.80
the listed company(RMB)
Net profit attributable to shareholders of
the listed company after deducting non- 1597321239.86 119966549.62 1231.47% 2544559926.75
recurring gains and losses(RMB)
Net cash flows arising from operating
1626249911.90-2575742649.43163.14%627712593.41
activities (RMB)
Basic earnings per share (RMB/Share) 1.88 0.09 1988.89% 2.57
Diluted earnings per share (RMB/Share) 1.88 0.09 1988.89% 2.57
Weighted average ROE 9.92% 0.64% 9.28% 13.67%
8WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Year-on-year
Year-end of 2023 Year-end of 2022 Year-end of 2021
increase(+)/decrease(-)
Total assets (RMB) 28081087791.81 28528913065.01 -1.57% 27970858427.84
Net assets attributable to shareholder of
19399892671.7817696679170.729.62%19398607689.65
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 reporting 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 reporting period.VIII. Quarterly main financial index
In RMB
Q1 Q2 Q3 Q4
Operation income 3144363323.69 2985285723.71 2212553381.53 2750939522.05
Net profit attributable to shareholders
414774676.43533986183.12373315787.47515214612.66
of the listed company
Net profit attributable to shareholders
of the listed company after deducting 355542161.23 475336090.14 365662980.94 400780007.55
non-recurring gains and losses
Net cash flows arising from operating
545452710.09544508527.3341786089.96494502584.52
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
9WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
In RMB
Item 2023 2022 2021 Note
Gains/losses from the disposal of non-current asset
(including the write-off that accrued for impairment of 126538939.67 -148566.90 -12350725.86
assets)
Governmental grants reckoned into current gains/losses
(except for those with normal operation business
concerned and conform to the national policies &
31251345.14111917334.7771274511.67
regulations and are enjoyed at a fixed basis according
to certain standards and continuously affect the
gains/losses of the company)
Except for effective hedging business related to the
normal operation of the company the fair value gains
and losses arising from the holding of financial assets
23096322.48-145070562.29-29889140.23
and financial liabilities by non-financial enterprises as
well as the gains and losses arising from the disposal of
financial assets and financial liabilities
Gains/losses of assets delegation on others’ investment
94647509.981236142.582425.40
or management
Reversal of provision for depreciation of account
5862949.671265113.458976264.09
receivable which was singly taken depreciation test
Gains/losses from debt reorganization -323525.00
Other non-operating income and expenditure except for
22253986.9039799099.77130837.12
the aforementioned items
Accounts receivable collected in the current period
63149.93
while written off in previous years
Less: Impact on income tax 40956611.82 1952583.99 4345456.60
Impact on minority shareholders’ equity (post-tax) 22464047.13 8192690.71 2987222.54
Total 239970019.82 -1146713.32 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
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
10WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Section III Discussion and Analysis of the Management
I. Industrial information of the Company within the reporting period
The Company shall comply with the disclosure requirements of the automobile manufacturing-related industry in the Guidelines for
Self-regulation of Listed Companies on Shenzhen Stock Exchange No. 3 - Disclosure of Industry Information
The company is in the industry of auto parts manufacturing. 2023 was the first year of economic recovery and development although
the automobile industry was disturbed by multiple factors such as the purchase tax of fuel vehicles at the beginning of the year and
the withdrawal of new energy vehicles from the state subsidy and price war under the support of national and local policies to
promote consumption and stabilize growth as well as the high growth of new energy vehicles and exports the annual sales presented
a "ascending and gradually improving trend" and achieved rapid growth. In 2023 the automobile production and sales in China were
30.161 million and 30.094 million respectively with a year-on-year increase of 11.6% and 12.0% and the production and sales
exceeded 30 million for the first time hitting a record high.
1. Commercial vehicle market situation
In 2023 under the background of economic recovery consumption recovery increasing logistics demand the oil and gas price
difference supported the outbreak of gas heavy trucks coupled with the elimination of national standard IV vehicles and the Belt and
Road policy and the Russia-Ukraine conflict to boost export growth showing a recovery growth trend throughout the year. In 2023
the production and sales of commercial vehicles were 4.037 million and 4.031 million respectively with a year-on-year increase of
26.8% and 22.1% the annual export was 770000 with a year-on-year increase of 32.2%.
In terms of production and sales of different models in 2023 the production and sales of trucks were 3.539 million with a year-on-
year increase of 27.4% and 22.4%. The production and sales of passenger cars were 498000 and 492000 respectively with a year-
on-year increase of 22.5% and 20.6%.In terms of segment models among the varieties of truck all models achieved double-digit year-on-year growth of which heavy
trucks increased most significantly. The sales of heavy trucks was 911000 with a year-on-year increase of 35.6%; the sales of
medium trucks was 107000 with a year-on-year increase of 12.0%; the sales of light trucks was 1.895 million with a year-on-year
increase of 17.1% year on year; the sales of mini trucks was 626000 with a year-on-year increase of 23.6%. Among the varieties of
passenger car the sales of light passenger cars presented rapid growth medium and light passenger cars increased slightly. Among
them the sales of large passenger cars was 54000 with a year-on-year increase of 4.0%; the sales of medium passenger cars was
38000 with a year-on-year increase of 3.8%; the sales of light passenger cars was 400000 with a year-on-year increase of 25.1%.
In 2023 the commercial vehicle market was still dominated by traditional fuels with diesel vehicles and gasoline vehicles
accounting for 52.6% and 31.9% of the annual commercial vehicle market respectively; new energy vehicles (pure electric plug-in
hybrid fuel cell) accounted for about 10.7% of which pure electric vehicles accounted for the highest which was 10.2%; other
alternative fuels accounted for only 0.19%; gas vehicles accounted for 4.7% with a year-on-year increase of 3.3% under the support
of the increase in oil and gas price difference and the prominent advantage of operating cost.
2. Passenger car market situation
In 2023 the passenger car market was affected by factors such as policy switching and industry price competition at the beginning of
the year and market demand fell significantly. However under the frequent emergence of national and local consumption boost
policies driven by new energy and exports the sales was gradually increased maintaining the double growth of production and sales
11WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
throughout the year which played an important role in stabilizing the basic condition of automobile consumption. The production
and sales of passenger cars were 26.124 million and 26.063 million with a year-on-year increase of 9.6% and 10.6% respectively.The exports reached 4.14 million with a year-on-year increase of 63.7%. Supported by continuous improvement of product
competitiveness new energy penetration and rapid growth of exports the annual market share of independent brands reached 56%.
3. New energy vehicle market situation
The price war was spreading under the trend of diversified supply of automobile enterprises and continuous reduction of raw material
prices coupled with the effect of policies such as the extension of purchase tax reduction and new energy vehicles going to the
countryside the new energy vehicle market continued to expand. In 2023 the production and sales were 9.587 million and 9.495
million respectively with a year-on-year increase of 35.8% and 37.9% respectively and the market share reached 31.6% with a
year-on-year increase of 5.9%. Among them the sales of pure electric vehicles was 6.685 million with a year-on-year increase of
24.6%; the sales of plug-in hybrid vehicles was 2.804 million with a year-on-year increase of 84.7%; the sales of fuel cell vehicles
was 6 thousand with a year-on-year increase of 72.0%.
4. Off-road vehicle market situation
In 2023 the macroeconomic repair was not as expected the real estate industry continued to slump the demand for infrastructure
was weak but the overseas market performed well and the construction machinery industry maintained overall growth; agricultural
machinery improved on the back of a rebound in farming demand. In 2023 the sales of diesel internal combustion engines for
construction machinery was 893000 with a year-on-year increase of 8.6%; the sales of diesel internal combustion engines for
agricultural machinery was 1.556 million with a year-on-year increase of 22.4%.(Note: The above industry data sources are China Association of Automobile Manufacturers CNWORLD China Internal
Combustion Engine Industry Association)
5. Matching between company operation and the industry
In 2023 the operating conditions of the company basically matched the development of the industry. Affected by the macroeconomic
environment intensifying competition in the automobile industry declining prices of precious metals outstanding performance of
natural gas heavy trucks and export markets the company achieved operating income of 11.093 billion yuan during the reporting
period with a year-on-year decrease of 12.86%. The net profit attributable to shareholders of listed companies was 1.837 billion yuan
with a year-on-year increase of 1446.28%.II. Major Business of the Company within the reporting period
The Company shall comply with the disclosure requirements of the automobile manufacturing-related industry in the Guidelines for
Self-regulation of Listed Companies on Shenzhen Stock Exchange No. 3 - Disclosure of Industry Information.(I) Main business engaged by the Company
The main business of the company is the research and development production and sales of core automotive parts and currently has
four business segments including energy conservation and emission reduction green hydrogen energy intelligent electric industrial
and other. During the reporting period the main products sold were diesel fuel injection system exhaust aftertreatment system air
intake system core parts of fuel cells core parts of electric drive systems core parts of thermal management systems cabin core
parts core parts of brake systems etc.
1. Diesel fuel injection system including high pressure oil pump high pressure oil rail injector filter and other products widely
used in diesel engines of all levels of power supporting various trucks buses construction machinery marine agricultural
machinery generator sets and can meet the national standard VI off-road stage IV emission regulations leading in the product
12WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
variety production scale market share. While doing a good job in supporting domestic engines some products are exported to the
Americas Southeast Asia the Middle East and other regions.
2. Exhaust aftertreatment system including diesel purifier gasoline purifier natural gas purifier muffler catalyst and other products
can meet the national VI standard off-road stage IV emission regulations with leading technical level market scale and production
capacity in China widely used in traditional power & plug-in hybrid passenger vehicles commercial vehicles off-road machinery
and other fields and can provide strong support for product upgrading and renewal of OEMs.
3. Air intake system including diesel supercharger gasoline supercharger natural gas supercharger and other products can meet the
national VI off-road stage IV emission regulations with the scope of application covering commercial vehicles traditional power &
plug-in hybrid passenger vehicles construction machinery agricultural machinery generator sets and other fields and can support
the major domestic OEMs and automobile manufacturers .
4. Core parts of fuel cells including membrane electrode bipolar plate (graphite metal) catalyst and BOP critical parts (such as
valves pumps air compressor critical parts) and other products mainly support domestic and foreign hydrogen fuel cell stack and
system manufacturers and energy storage enterprises.
5. Core parts of electric drive systems including motor shaft end cover water jacket and other products mainly support domestic
and foreign new energy passenger car enterprises or electric drive system manufacturers.
6. Core parts of thermal management systems including electronic oil pump electronic water pump thermostat and other products
mainly support domestic and foreign new energy passenger vehicles commercial vehicle enterprises.
7. Cabin core parts including car seat assembly seat skeleton electric long slide shock absorber and other products mainly support
domestic mainstream commercial vehicles passenger car enterprises.
8. Core parts of brake systems including mechanical vacuum pump and other products mainly support domestic and foreign
mainstream passenger car enterprises.(II) Operation model of the companyThe Company follows the business philosophy of “Making Fine Products Creating Famous Brands and Achieving Common Growthin Values” and implements the business model of unified management by the parent company and decentralized production by the
subsidiaries. The parent company is responsible for formulating strategic development plans and business objectives and providing
unified management guidance and assessment to the subsidiaries in terms of finance major personnel management core raw
materials quality control technology development etc. Subsidiaries arrange production based on the order management model of the
market which not only enables the subsidiaries to maintain uniform product quality but also facilitates timely understanding of
customer demands and saving logistics costs so as to improve the economic efficiency of the Company by maintaining the timeliness
of product production and supply.Production and operation of vehicle manufacturing during the reporting period
□Applicable □Not Applicable
Production and operation of auto parts during the reporting period
□ Applicable □ Not applicable
Unit: Ten thousand pieces
Capacity Sales volume
Same Year-on-year Same Year-on-year Current Current
period of increase/decrease period of increase/decrea
period period
last year (+/-) last year se(+/-)
By components
Fuel management system-
202.55182.1911.17%199.35217.79-8.47%
multi-cylinder pumps
Fuel management system- 242.71 148.23 63.73% 217.50 184.20 18.08%
13WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
fuel injector
After-treatment system -
46.7655.51-15.75%43.9061.55-28.68%
diesel purifier
After-treatment system -
366.81282.6829.76%342.79309.0810.91%
gasoline purifier
Air management system –
97.8181.7319.68%90.3680.6612.03%
turbocharger
Brake system - vacuum pump 737.68 - 734.32 -
By vehicle facilities
By after-sale service market
Fuel management system-
0.280.32-10.52%0.290.41-30.96%
multi-cylinder pumps
Fuel management system-
0.290.61-53.28%0.080.60-86.49%
fuel injector
Air management system –
1.121.074.31%1.161.141.30%
turbocharger
Other classification
By domestic area
Fuel management system-
202.83182.5111.13%199.63218.20-8.51%
multi-cylinder pumps
Fuel management system-
243.00148.8063.30%217.58184.8017.74%
fuel injector
After-treatment system –
413.57338.1922.29%386.69370.634.33%
purifier
Air management system –
98.9382.8019.48%91.5281.8011.88%
turbocharger
Brake system - vacuum pump 249.34 - 248.00 -
By oversea area
Brake system - vacuum pump 488.34 - 486.32 -
Explanation of reasons for a year-on-year change of 30% or more
□ Applicable □ Not applicable
The rapid growth in production of fuel injectors and gasoline purifiers is mainly due to the growth of market orders.Sales model of spare parts
The Company adheres to the customer-centric approach and applies flexible marketing strategies and standardized development
procedures to satisfy the demands of different types of customers ensure the smooth implementation of customer development plans
and strive for more customers and a larger market share. The Company has established a mechanism for strategic customer visits
with senior management visiting customers or receiving visits from customers on a regular basis holding high-level strategic
meetings special cooperation exchanges and other activities. The Company implements special management for strategic customers
and establishes a four-in-one collaborative organization consisting of the responsible leaders key account managers marketing
department and business divisions to do a good job of customer demand analysis and management customer satisfaction survey and
analysis etc. Meanwhile the Company optimizes business processes by means of information technology to enhance the speed of
response to customer demands and assists customer relationship management through modern technological tools such as call
centers customer data warehouses business intelligence mobile devices and web conferencing. The Company promotes
collaborative marketing of existing businesses and new businesses strengthens communication and cooperation with existing
business customers in new businesses and actively expands new customers and develops potential customers.The Company engages in auto finance business
□Applicable □Not Applicable
The Company engages in business related to new energy automobile
□ Applicable □ Not applicable
Production and operation of new energy vehicles and parts
In RMB
14WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Category Capacity Output Sales volume Sales revenue
Core components for hydrogen fuel cells 2530000 pieces 713200 pieces 733300 pieces 106464546.51
Core parts for E-drive 3820000 pieces 2670000 pieces 2627000 pieces 358065220.36
Exhaust (PEHV) cleaner 886000 pieces 326000 pieces 270400 pieces 930875527.74
Intake(PHEV) supercharger 150000 pieces 120000 units 107000 units 97621470.00
III. Analysis on Core Competitiveness
The Company shall comply with the disclosure requirements of the automobile manufacturing-related industry in the Guidelines for
Self-regulation of Listed Companies on Shenzhen Stock Exchange No. 3 - Disclosure of Industry Information.
1. Industry and brand advantages. Established in 1958 with more than sixty years of development the Company has become a
renowned manufacturer of auto parts in China and has established long-term and stable cooperation with major domestic OEMs and
vehicle manufacturers. The existing core auto parts products such as automotive fuel injection system exhaust gas after-treatment
system air intake system and core parts of hydrogen fuel cell have strong market competitiveness and high market shares. The
Company is a leading enterprise in the internal combustion engine industry of China and ranked 35th on the 2023 Top 100 Chinese
Automotive Parts Enterprises.
2. Technology and product advantages. The Company is a national high-tech enterprise with scientific research platforms such as
National Enterprise Technology Center National High Technology Research and Development Program Achievement
Industrialization Base Postdoctoral Research Station Jiangsu Provincial Postgraduate Workstation as well as several provincial
engineering technology research centers provincial engineering laboratories and other R&D institutions which mainly focus on fuel
injection system for vehicles exhaust gas after-treatment system air intake system hydrogen fuel cell intelligent network thermal
management system and other businesses for technological innovation and product development. The Company has acquired a
number of key core technologies with the technical indicators of its main products at the leading level in the industry. In recent years
the Company has made key strategic layout in the fields of green hydrogen energy and intelligent electric power established the
Institute of New Energy and Netlink Technology and formed product technology research and development capabilities in hydrogen
fuel cell core components research and development capabilities for renewable energy hydrogen production core parts of E-drive
thermal management system components intelligent perception modules and other product technologies.
3. Management and manufacturing advantages. The Company features a perfect organizational structure management system and
process as well as a financial sharing platform which can realize the effective migration and stable operation of organization and
personnel business and accounting; The Company has built a human resource information system platform so as to guarantee the
timely and accurate standardization of basic data of organization personnel salary and attendance; The Company has established a
procurement sharing system which enables the interconnection of information between enterprises and suppliers that enables closed-
loop management of the procurement process; The Company has implemented Weifu Production System (WPS) with lean concept
and established an overall process quality management system with relatively strong manufacturing quality assurance cost control
and product delivery capabilities. With the focus on smart manufacturing the Company has continued to build a smart factory with
Weifu characteristics and promote the application of cloud computing and 5G network which can strongly support the future
business development of the Company.
4. Marketing and service advantages. The Company features a stable professional and experienced marketing team which can
provide targeted support and services based on customer demands as well as cordial customer relationships. With regard to long-
term strategic customers the Company has established a four-in-one marketing coordination group consisting of responsible leaders
key account managers marketing departments and business divisions and regular visits among the management of the companies to
promote communication and cooperation. The Company has a relatively complete after-sales service system and has built an after-
sales service network intelligent service platform and set up special maintenance technical service stations nationwide to regularly
train end-users in the use of maintenance and fault analysis and judgment so as to provide customers with fast timely and
professional all-round after-sales services.
15WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
5. Talent team advantages. The management team of the Company has extensive experience in the auto parts industry with excellent
industry reputation. The Company attaches importance to the growth of employees as well as the development of core talents. With
years of accumulation the Company has deposited a group of professional and high-quality management and technical talents and
established a reasonable talent echelon which provides a strong guarantee of human resources for the long-term and stable
development of the Company. The human resource management system of the Company is relatively comprehensive and the
continuously optimized human resource management system has provided a fair platform for career development of employees to
realize their values. The Company attaches importance to the service and care for employees and aims to enhance the service
experience of employees through the construction of employee self-help platform to create a working environment with warmth and
a sense of belonging.
6. International cooperation advantages. The Company is committed to the core automotive parts industry and has long been
cooperating with strategic partners at home and abroad in depth. The Company has been cooperating with industry giant Robert
Bosch Company since 1984 and has established a long-term and stable cooperation relationship with Bosch and continuously
expanded cooperation in new business areas and the cooperation model between the two sides has become an industry model.Meanwhile the Company has built joint ventures with Autocam in the United States and Schmidt in Germany and cooperates
closely in the field of high-end precision manufacturing. By long-term cooperation with renowned enterprises in Europe and the
United States the Company has cultivated a group of middle and senior management and technical personnel with international
communication abilities international visions and familiarity with international standards and has mastered R&D process design
quality control and production management capabilities with international advanced levels which has promoted favorable
development of the business of the Company as well as international business and market development.
7. Excellent corporate culture with the mission of “Better Life Powered by Quality and Intelligence” and the vision of “CentennialWeifu Expert in Core Auto Parts Industry” the Company has practiced the core values of “Focus Innovation Commitment andIntegration” while adopting the enterprise spirit of “Being Practical Being Courageous Being Cooperative and Being Pioneering”.The Company has been building a culture system of “Quality and Intelligence” with “Quality” and “Intelligence” as the twin engines
of the corporate culture which reflect the adherence to the original intention and the pursuit of the future. The excellent corporate
culture has provided strong support for the continued operational excellence of the Company and its growth into a trustworthy and
respected industrial expert thereby playing an active role in the achievement of the strategic goals of the Company.IV. Main business
1. Overview
2023 is the 65th anniversary of Weifu. In the face of complex and severe macroeconomic situation and competitive pressure in the
automotive industry the Company closely adhered to the “14th Five-Year Plan” development objective implemented the annual
work policy of "aiming at strategic goals making efforts for management improvement and being devoted to the cultivation of new
business". All employees worked together resisted the pressure continuously improved the quality of operation and ensured the
smooth operation of the company. During the reporting period the Company achieved operating income of 11.093 billion yuan with
a year-on-year decrease of 12.86%; the net profit attributable to shareholders of listed companies was 1.837 billion yuan with a year-
on-year increase of 1446.28%; the total assets were 28.081 billion yuan with a year-on-year decrease of 1.57%; the net assets
attributable to shareholders of listed companies were 19.399 billion yuan with a year-on-year increase of 9.62%.Main work carried out by the company during the reporting period:
1. Consolidate market advantages of core business and strengthen market development for new business
The product market share of core business maintained advantages: In terms of fuel system products the annual sales of common rail
pumps exceeded 1.45 million increasing steadily; the annual sales of VE distribution pumps was nearly 390000; benefiting from the
growth of the export market the annual sales of mechanical pumps were nearly 170000 maintaining the growth. In terms of
aftertreatment system products: Gasoline purifiers presented outstanding performance in the hybrid passenger car market with
annual sales of nearly 2.8 million and year-on-year increase of nearly 30%; the annual sales of diesel purifiers exceeded 260000
16WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
with the market share and competitiveness steadily increased and key customer share in some off-road markets exceeding 50%; the
annual sales of natural gas purifiers exceeded 60000 with a year-on-year increase exceeding 150%. In terms of air intake system
products the annual sales of four-cylinder diesel superchargers reached a record high of nearly 580000 continuing to maintain the
first position in market share in the industry in China; mass production of gasoline superchargers was achieved in a number of
domestic head passenger car customer projects with the annual sales of more than 260000 continuing to maintain growth; six-
cylinder superchargers were selected for a number of diesel and alternative fuel projects of domestic key customers.Market development for new business has achieved positive results: the VH business at home and abroad that the company acquired
in 2022 has been promoted smoothly and the vacuum pump and electronic oil pump products have made positive progress
especially the special electronic oil pump products have been selected for a number of designated projects of domestic and foreign
head passenger car and commercial vehicle customers and have achieved batch production. The business volume of electric drive
core parts maintained high growth the annual sales of motor shaft products reached nearly 1.4 million with a year-on-year increase
of nearly 150%. The construction of three major bases of hydrogen fuel cell business in the world has been steadily advanced and
the business volume maintained steady growth. 4D imaging radar products reached strategic cooperation with KargoBot and Arbe
and the sample delivery and road testing were completed; the company has reached strategic cooperation with Shanxi Anshu
Intelligent Technology to promote the commercial application in the field of smart mines; at the same time the company carried out
test verification with a number of OEMs.
2. Promote the efficient development of main products and accelerate the development of new products
Efficient and clean internal combustion power products: Completed the B sample performance test of 2000bar products in GP project
and several customer engine tests; completed the engine performance test of the key components of the diesel-natural gas dual fuel
injection system; initiated the pre-research of high pressure direct injection technology of alternative fuel cylinder and the
experimental research of hydrogen internal combustion engine injection technology and obtained the development projects of key
customers; completed the development mass production and supply of CB6-25 two-cylinder high pressure pump; completed VP
system off-road stage IV product upgrade; completed the B sample development of hybrid high-efficiency gasoline supercharger
platform and realized the batch production of variable nozzle turbochargers for gasoline engines of key customers; completed key
customer project acquisition and batch production and supply of the second generation platform products of six-cylinder diesel and
natural gas engine supercharger; completed D sample development of heavy-duty light-duty and off-road stage IV diesel purifiers
and realized batch production of several customer projects.Green hydrogen energy and intelligent electric products: In terms of core parts of hydrogen fuel cells completed the domestic
production capacity construction and trial production of 1.1 million membrane electrodes per year; completed the first phase of
production capacity construction and trial production of metal bipolar plate in China; completed the function test of bottle valve and
pressure reducing valve of the high-pressure hydrogen subsystem; achieved stable supply of hydrogen ejector and isolation valve of
the low-pressure hydrogen subsystem; started small-batch supply of exhaust valves and electric superchargers. In terms of renewable
energy hydrogen production realized the equipment integration and demonstration operation of the first set of 100-kilowatt PEM
electrolytic water hydrogen production system. In terms of thermal management realized batch supply of electronic oil pump for
electric drive; realized small batch supply of electronic thermostats for cell stack; completed C sample development of electronic
water pumps for medium power cell stack. In terms of situation awareness completed the construction and acceptance of the radar
production line in the cabin; completed the design and trial production of short range radar prototype; completed B sample design
and customer sample delivery of barrier gate radar; completed B sample design verification and cost reduction protocol design of 4D
imaging forward radar.
3. Build a strategic planning operation system and promote the layout of new business investment cooperation
Strategic planning: Completed the mid-term review of the 14th Five-Year strategic plan of the company; combined with radar PEM
electrolytic water hydrogen production thermal management hydraulic and other business dynamically studied and formulated
relevant strategic planning and action plans; completed the planning of Huishan Intelligent Industrial Park and Hydrogen Energy
Industrial Park and promoted research on coating capacity and intelligent manufacturing. In terms of investment cooperation:
Focused on promoting the industrialization process of radar business initiated independent operation and actively pursued
17WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
cooperation with strategic partners; accelerated investment cooperation in the seat business smoothly expanded the passenger car
customer market and promoted the large-scale development of the seat business; continuously promote the further cooperation with
the existing strategic partners in the posttreatment catalyst and new materials business and extended to the development of new
energy and new materials through the new cooperation platform; actively pursued strategic cooperation in new business areas such as
PEM electrolytic water hydrogen production and high pressure hydrogen storage and deepened investment cooperation in wheel hub
motor business. At the same time strengthened the post-investment management of participating enterprises such as Auto Link and
Weifu Precision Machinery and further research on strategic actions.
4. Strengthen quality and safety management and steadily promote project construction
Achieved steady improvement of quality level of core business products and zero kilometer fault of some products was less than
10PPM; carried out full coverage and quality improvement on-site verification of all elements of the key processes in a normalized
and stratified manner; promoted the comprehensive promotion and systematic application of measurement management
standardization; continuously promoted the information construction of manufacturing system and awarded the first national
intelligent manufacturing demonstration factory in Wuxi City. Integrated and launched the EHS information supervision platform
and production safety intelligent visual operation center; initiated the construction of the energy management platform project and
successfully passed the ISO50001 energy management system review. Advanced the R&D building and plot 103 project in an
orderly manner and completed the preparatory work for the construction of the Hydrogen Energy Industrial Park. Initiated the
construction of the procurement platform project and continuously improved the digital capacity of supply chain management;
advanced the promotion implementation of intelligent manufacturing and standardization of system modules completed the pilot
promotion of some standardized modules and complete the pilot promotion of intelligent warehouse management system; promoted
data service and analysis projects continuously improved the data management construction of each business segment and mined
the value of data. Explored the localized application of innovative technologies and fully built Weifu industry Internet platform.
5. Consolidate the quality of enterprise operation and improve the efficiency of operation and management
Strengthened the monitoring and analysis of operation seriously carried out deviation correction and closed loop of operation and
promoted the integration of business plans and budgets. Excavated technology to reduce costs refined category management
strategies established electronic category procurement channels improved procurement specialization and integrated new business
planning; further strengthened the analysis and disposal of slow-moving inventory reviewed and gave early warning of production
scheduling and focused on the control of long-cycle materials. Continuously promoted the construction of intelligent finance
optimized intelligent reports and management cockpit launched profitability analysis system and promoted product cost
optimization and improvement; launched the procurement expenditure contract management system and improved the efficiency of
contract management process. Carried out special inspection of internal control identified problems followed up the implementation
and closed loop of rectification; organized the re-learning and publicity of relevant systems and processes enhanced the risk control
awareness of all staff and continuously optimized the internal control system. Optimized the allocation of human resources adjusted
the structure of talent team and improved the efficiency of personnel; focused on promoting major strategic cooperation projects and
strategic emerging business personnel allocation and expanded talent introduction channels; explored overseas talent exchange and
training models formulated security mechanisms and promoted the construction of international talent echelons.
2.Revenue and cost
(1) Composition of operation revenue
In RMB
20232022
Year-on-year
Ratio in Ratio in increase(+)/de
Amount operation Amount operation crease(-)
revenue revenue
Total operation revenue 11093141950.98 100% 12729634917.03 100% -12.86%
18WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
By industry
Automotive components 10926750670.90 98.50% 12333099421.87 96.88% -11.40%
Other business 166391280.08 1.50% 396535495.16 3.12% -58.04%
By product
Automotive fuel management system 5077092133.74 45.76% 5556437665.29 43.65% -8.63%
Automotive after-treatment system 3409054236.79 30.73% 5757095151.92 45.22% -40.79%
Air management system 662890661.90 5.98% 567829177.40 4.46% 16.74%
Other automotive components 1777713638.47 16.03% 451737427.26 3.55% 293.53%
Other business 166391280.08 1.50% 396535495.16 3.12% -58.04%
By region
Domestic 9497551219.78 85.62% 11917440065.87 93.62% -20.31%
Foreign 1595590731.20 14.38% 812194851.16 6.38% 96.45%
By sales model
Direct sale 11093141950.98 100.00% 12729634917.03 100.00% -12.86%
(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
Year-on-year
Year-on-year Year-on-year
Gross increase(+)/de
increase(+)/decrea increase(+)/de
Operation revenue Operation cost profit crease(-) of
se(-) of operation crease(-) of
ratio gross profit
revenue operation cost
ratio
By industry
Automotive 10926750670.9
9083184521.7716.87%-11.40%-14.78%3.29%
components 0
By product
Automotive fuel
management 5077092133.74 3908250189.19 23.02% -9.24% -12.57% 2.72%
system
Automotive after-
3409054236.792982136889.9512.52%-40.79%-43.47%4.15%
treatment system
Air management
662890661.90514254765.4422.42%16.74%9.84%4.87%
system
Other automotive
1777713638.471678542677.195.58%301.01%252.64%13.23%
components
By region
Domestic sales 9331159939.70 7615983251.26 18.38% -19.01% -24.32% 5.73%
Foreign sales 1595590731.20 1467201270.51 8.05% 96.45% 146.86% -18.77%
By sales mode
10926750670.9
Direct sales 9083184521.77 16.87% -11.40% -14.78% 3.29%
0
In case of changes in the statistical caliber of principal business data in the reporting period the Company will refer to the principal
business data after adjustment in recent 1 year:
□Applicable □Not Applicable
19WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
(3) Whether the Company’s revenue from physical sales is greater than its revenue from labor services
□ Yes □ No
Year-on year
Industries Item Unit 2023 2022
increase(+)/decrease(-)
Sales volume In 10 thousand sets 199.63 218.20 -8.51%
Fuel management system- multi-cylinder
Output In 10 thousand sets 202.83 182.51 11.13%
pumps
Storage In 10 thousand sets 5.51 2.31 138.53%
Sales volume In 10 thousand suits 217.58 184.80 17.74%
Fuel management system- fuel injector Output In 10 thousand suits 243.00 148.80 63.31%
Storage In 10 thousand suits 41.42 16.00 158.88%
Sales volume In 10 thousand pieces 386.69 370.63 4.33%
After-treatment system - purifier Output In 10 thousand pieces 413.57 338.19 22.29%
Storage In 10 thousand pieces 75.73 48.56 55.95%
Sales volume In 10 thousand sets 91.52 81.80 11.88%
Air management system -turbocharger Output In 10 thousand sets 98.93 82.80 19.48%
Storage In 10 thousand sets 25.60 18.00 42.22%
Sales volume In 10 thousand sets 734.32
Brake system - vacuum pump Capacity In 10 thousand sets 737.68
Inventory In 10 thousand sets 16.17
Description for relevant year-on-year data changing over 30%
□ Applicable □ Not applicable
Market demand and customer share rose resulting in an increase in year-end inventory.
(4) Performance of significant sales contracts major procurement contract entered into by the Company
up to the current reporting period
□ Applicable □ Not applicable
(5) Composition of operation cost
Classification of industries and products
In RMB
20232022
Ratio in Ratio in Year-on-year Industries Item
Amount operation Amount operation increase(+)/decrease(-)
cost cost
Automotive
Direct material 6555172710.12 72.17% 8095497519.84 75.95% -19.03%
components
Automotive
Labor cost 1032120288.45 11.36% 929458806.34 8.72% 11.05%
components
Automotive
Depreciation 365295186.48 4.02% 343934013.85 3.23% 6.21%
components
Automotive Varieties of
1130596336.7212.45%1289391589.8812.10%-12.32%
components consumption
In RMB
2023 2022 Year-on-year
Products Item Ratio in Ratio in
Amount Amount increase(+)/decrease(-)
operation operation
20WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
cost cost
Fuel management
Direct material 2254464928.67 57.68% 2825991694.28 63.81% -20.22%
system
Fuel management
Labor cost 609871806.26 15.60% 645954393.05 14.59% -5.59%
system
Fuel management
Depreciation 253355374.61 6.48% 224295673.29 5.06% 12.96%
system
Fuel management Varieties of
790558079.6520.23%732339489.3716.54%7.95%
system consumption
After-treatment
Direct material 2667691488.46 89.46% 4565803028.05 86.55% -41.57%
system
After-treatment
Labor cost 47234645.82 1.58% 149342308.89 2.83% -68.37%
system
After-treatment
Depreciation 27439285.16 0.92% 72074926.36 1.37% -61.93%
system
After-treatment Varieties of
239771470.518.04%488030494.279.25%-50.87%
system consumption
Air management
Direct material 449083528.19 87.34% 410313252.05 87.64% 9.45%
system
Air management
Labor cost 33448206.33 6.50% 31326998.91 6.69% 6.77%
system
Air management
Depreciation 17304418.13 3.36% 16459950.43 3.52% 5.13%
system
Air management Varieties of
14418612.792.80%10070533.762.15%43.18%
system consumption
Other automotive
Direct material 1183932764.80 70.53% 293389545.46 60.33% 303.54%
components
Other automotive
Labor cost 341565630.04 20.35% 102835105.49 21.15% 232.15%
components
Other automotive
Depreciation 67196108.58 4.00% 31103463.77 6.40% 116.04%
components
Other automotive Varieties of
85848173.775.11%58951072.4712.12%45.63%
components consumption
(6) Whether there was a change in the scope of consolidation during the reporting period
□Yes No
(7) Major changes or adjustment in business product or service of the Company in the reporting Period
□ Applicable □Not applicable
(8) Major sales and main suppliers
Major sales clients of the Company
Total top five clients in sales (RMB) 4875550091.28
Proportion in total annual sales volume for top five clients 43.95%
Ratio of the related party sales in total annual sales from top five clients 32.03%
Information of top five clients of the Company
Proportion in total annual
Serial No. Name Sales (RMB)
sales
1 Robert Bosch Company 1878794642.29 16.94%
2 RBCD 1673734280.25 15.09%
3 Client 1 517223548.99 4.66%
4 Client 2 451962380.68 4.07%
21WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
5 Client 3 353835239.07 3.19%
Total -- 4875550091.28 43.95%
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) 2211016690.60
Proportion in total annual purchase amount for top five suppliers 24.57%
Ratio of the related party purchase in total annual purchase amount from top five suppliers 16.07%
Information of top five suppliers of the Company
Ratio in annual total
Serial No. Suppliers Purchasing amount (RMB)
purchasing amount
1 WFEC 956576727.30 10.63%
2 Supplier 1 596707260.00 6.63%
3 RBCD 267248230.21 2.97%
4 Robert Bosch Company 222259377.33 2.47%
5 Supplier 2 168225095.76 1.87%
Total -- 2211016690.60 24.57%
Other notes of main suppliers of the Company
□ Applicable □ Not applicable
WFEC RBCD and Robert Bosch Company are the Company’s related parties. 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. Expense
In RMB
Year-on-year
2023 2022 Note of major changes
increase(+)/decrease(-)
Sales expenses 230571186.60 189528090.71 21.66%
Administration
612096726.09586386474.324.38%
expenses
Mainly due to the decrease in loan
Financial expenses 48040932.65 82327615.76 -41.65%
interest
R&D expenses 667871159.95 581488711.88 14.86%
4. R&D investment
□Applicable □ Not applicable
Expected impact on the
Projects Purpose Progress Goals to be achieved future development of
the Company
R&D the technology
Resulting a core
Development and for In progress some component products Promotes the market
application of the core alternative(hydrogen，models have entered for clean fuel injection share of clean fuel
components of clean natural gas etc)
system and apply to the products in the future
fuel injection system traditional fuel customer application.market
injection system
22WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Development on the
Development and Resulting the products
common-rail pump
application on the that meets the Euro VII Enhance the existing
products that meets the In progress some
common-rail pump emission standards for products and extend
Euro VII emission models have entered
products to meet the automotive diesel the life of traditional
standards for customer application.Euro VII emission engines and apply to products
automotive diesel
standard the market
engines
Development and Resulting the diesel
Development on the In progress some
application on the fuel injection parts Enhance the existing
diesel fuel injection models have entered
diesel fuel injection products that meets the products and extend
parts products that customer application
parts products to meet
meets the off-road T4 off-road T4 emission the life of traditional
the off-road T4 and are in the stage of
emission standards standards and apply to products
emission standards adaptive design.the market
Development and Resulting the passenger
Development on the
application on the car after-treatment Enhance the existing
passenger car after-
passenger car after- Have been batch products that meets the products and extend
treatment products that
treatment products to
meets the National VI produced National VI emission the life of traditional
meet the National VI
emission standards standards and apply to products
emission standards
the market
In progress some
Development and
Development on the Resulting the passenger
application on the models have already
commercial vehicle car after-treatment Enhance the existing
commercial vehicle entered customer
after-treatment products that meets the products and extend
after-treatment applications and a
products that meets the
products to meet the Euro VII emission the life of traditional
Euro VII emission small number have
Euro VII emission standards and apply to products
standards been supplied in small
standards the market
batches.Development and
Development on the Resulting the after-
application on the Enhance the existing
after-treatment treatment products that
after-treatment Have been batch products and extend
products that meets the meets the off-road T4
products to meet the
off-road T4 emission produced emission standards and the life of traditional
off-road T4 emission
standards apply to the market products
standards
Develop exhaust Through the
systems to meet the In progress some development of high
requirements of models have already reliability in the hot
Development of insulation capacity entered customer end and new Enhance the existing
exhaust system reduction cost applications and a technologies for products and extend
technology for hybrid reduction and high small number of silencers develop post- the life of traditional
vehicles noise reduction models have started to treatment products products
performance in hybrid be supplied in small satisfying hybrid
and extended range batches. vehicle models and are
projects applied in the market
Development and Resulting the
Development on the
application on the supercharger products Enhance the existing
supercharger products
supercharger products Have been batch for gasoline engine that products and extend
for gasoline engine that
for gasoline engine to meets the National VI the life of traditional
meets the National VI produced
meet the National VI emission standards and products
emission standards
emission standards put them on the market
In progress some
Development and models have already Resulting the
Development on the
application on the entered customer supercharger products Enhance the existing
supercharger products
supercharger products applications and a for diesel engine that products and extend
for diesel engine that
for diesel engine to small number of meets the National VI the life of traditional meets the Euro VII
meet the Euro VII
emission standards models have started to
emission standards and products
emission standards put them on the market
be supplied in small
batches.Development and Development on the In progress some Resulting the Enhance the existing
application on the supercharger products supercharger products products and extend
models have already
supercharger products for natural gas engine for natural gas engine the life of traditional
for natural gas engine that meets the National entered customer that meets the National products
23WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
to meet the National VI VI emission standards applications and a VI emission standards
emission standards small number of and put them on the
market
models have started to
be supplied in small
batches.The project is
completed and some
models have entered Enhance the existing
Development and
Development on the customer applications.Resulting the
products fit in with
application of the supercharger products
supercharger for They are equipped with new application
supercharger for for automotive
automotive incremental
automotive incremental a series of well-known
scenarios and extend
incremental engine and
engine brand products in the the life of traditional engine put them on the market
products
industry and are
starting to be supplied
in batch.In progress some
models have already Enhance the existing
Development and
entered customer Develop hybrid engine products fit in with
application of Develop turbochargers
applications and a supercharger products new application
turbochargers for for hybrid engines in
small number of for vehicles and put scenarios and extend
hybrid engines in vehicles
models have started to them into the market the life of traditional
vehicles
be supplied in small products
batches.Development on the In progress relevant Resulting a large-scale Main direction of the
Development and
core materials (one products have achieved production of core emerging business of
application on the core
membrane & two small production and materials for the the Company in the
materials of hydrogen
plates catalyst)of
fuel cell have entered customer
hydrogen fuel cells and future and new
hydrogen fuel cell application put them on the market business growth points
In progress the
relevant products have
Development and Development on the been produced in small Resulting a large-scale Main direction of the
application on BOP BOP key component batches and have production of BOP key emerging business of
key component (valve pumps etc.) entered customer component products of the Company in the
products of hydrogen products of hydrogen applications. A small hydrogen fuel cells and future and new
fuel cells fuel cells amount of models have put them on the market business growth points
been supplied in small
batch.In progress the Main direction of the
Development and Develop new energy
Develop new energy relevant products have emerging business of
application of electric vehicle electric drive
vehicle electric drive been mass-produced the Company in the
drive components for components products
components products and have entered future and new
new energy vehicles and put on market
customer applications. business growth points
Main direction of the
Development and Develop intelligent Develop intelligent
In progress the sample emerging business of
application of perception core module perception core module
of relevant products the Company in the
intelligent perception products (millimeter products and put on
have been delivered. future and new
core module products wave radar) market
business growth points
Commercial vehicles
have achieved batch
production and
Main direction of the
Development and application in multiple Enhance market
Develop and promotion emerging business of
integration of projects and passenger recognition and
of intelligent seat the Company in the
intelligent seat cars have obtained continuously expand
products future and new
products multiple projects. They market scale.business growth points
are currently in the
research and
development stage and
24WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
will soon be put into
production and
application.Development of Main direction of the
Development and In the research and
mechanical Develop innovative emerging business of
promotion of development stage
components related to products and put on the Company in the
intelligent seat there are already
intelligent seat market future and new
products potential customers
products business growth points
Main direction of the
Development and Resulting the hydraulic
Development on In progress some emerging business of
application on core system core component
hydraulic system core products have been the Company in the
component products of products and put them
component products applied in batch future and new hydraulic system on the market
business growth points
Some products have
entered the stage of Main direction of the
Development and Resulting the brake
Development on brake mass production and emerging business of
application on core system core component
system core component delivery while for the Company in the
component products of products and put them
products future and new
brake system others the company is on the market
communicating with business growth points
customers
In progress some
equipment has been
Improve the
Development and used by customers for Resulting the technological
Development on
application of the manufacturing and intelligent capabilities in field of
intelligent
intelligent testing and new manufacturing intelligent
manufacturing
manufacturing
equipment equipment design has
equipment and put manufacturing and
equipment been carried out them on the market creating economic
benefits
according to
requirements.Personnel of R&D
2023 2022 Change ratio
Number of R&D (person) 1258 1232 2.11%
Ratio of number of R&D 21.84% 20.92% 0.92%
Education background
Undergraduate 697 708 -1.55%
Master 279 240 16.25%
Age composition
Under 30 446 328 35.98%
30~40512649-21.11%
Investment of R&D
2023 2022 Change ratio
R&D investment (RMB) 667871159.95 581488711.88 14.86%
R&D investment/Operation revenue 6.02% 4.57% 1.45%
Capitalization of R&D investment (RMB) 0.00 0.00 0.00%
Capitalization of R&D investment/R&D investment 0.00% 0.00% 0.00%
Reasons and effects of significant changes in composition of the R&D personnel
□Applicable □Not applicable
The reason of great changes in the proportion of total R&D investment accounted for operation income than last year
□ Applicable □ Not applicable
Reason for the great change in R&D investment capitalization rate and rational description
□ Applicable □ Not applicable
25WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
5. Cash flow
In RMB
Item 2023 2022 Year-on-year growth rate
Subtotal of cash inflow arising from
12367352240.1116421144267.50-24.69%
operating activities
Subtotal of cash outflow arising from
10741102328.2118996886916.93-43.46%
operating activities
Net cash flows arising from operating
1626249911.90-2575742649.43163.14%
activities
Subtotal of cash inflow from investing
5806265016.9312081224107.55-51.94%
activities
Subtotal of cash outflow from investing
4595753280.528485283459.06-45.84%
activities
Net cash flows arising from investing
1210511736.413595940648.49-66.34%
activities
Subtotal of cash inflow from financing
2696375308.644817002243.34-44.02%
activities
Subtotal of cash outflow from financing
5769684317.114681832516.8423.24%
activities
Net cash flows arising from financing
-3073309008.47135169726.50-2373.67%
activities
Net increase of cash and cash equivalents -215130910.41 1183098668.09 -118.18%
Main reasons for y-o-y major changes in aspect of relevant data
□ Applicable □ Not applicable
1. The net cash flow arising from operating activities increased yoy mainly due to the platform trade cash outflow in the same period
last year;
2. The net cash flow arising from generated from investment activities decreased by 2.385 billion yuan yoy mainly due to changes in
the financial management structure and the decrease in scale during the reporting period;
3. The net cash flow arising from financing activities decreased by 3.208 billion yuan yoy. For the cash inflow arising from financing
activities in the reporting period borrowings reduced by 2.00 billion yuan; For the cash outflow arising from financing activities
repayment of loans rose by 3.00 billion yuan yoy and dividends decreased by 1.5 billion yuan.Reasons of major difference between the cash flow of operation activity in the reporting period and net profit of the Company
□ Applicable □ Not applicable
V. Analysis of the non-main business
□Applicable □Not applicable
In RMB
Ratio in
Amount Cause description Whether be sustainable
total profit
The joint ventures RBCD and
Investment earnings mainly form the
Zhonglian Electronics have stable
Investment two joint ventures (RBCD and
1701990058.24 87.99% production and operation so the
earnings Zhonglian Electronics) with stock
investment returns can be
participated by the Company
sustained and stable
Gain/loss of fair
9767646.640.50%
value changes
Asset
-331275532.54-17.13%
impairment
Non-operating
17111807.240.88%
income
Non-operating 4411191.85 0.23%
26WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
expense
VI. Assets and liability analysis
1. Major changes of assets composition
In RMB
Year-end of 2023 Year-begin of 2023 Ratio
Ratio in Ratio in changes Note of major changes
Amount Amount
total assets total assets (+/-)
Monetary funds 2274771699.14 8.10% 2389551930.76 8.38% -0.28%
Account
3857539958.2013.74%3127490177.2510.96%2.78%
receivable
Inventory 2068533030.94 7.37% 2283119656.27 8.00% -0.63%
Investment real
46926716.490.17%49296869.730.17%0.00%
estate
Long-term
equity 5947633507.07 21.18% 6282818108.96 22.02% -0.84%
investment
Fixed assets 3969574102.87 14.14% 3769984185.94 13.21% 0.93%
Construction in
564605931.902.01%509105587.491.78%0.23%
progress
Right-of-use
48832472.850.17%41865100.380.15%0.02%
assets
Short-term
838889557.51 2.99% 3604376527.82 12.63% -9.64% Repay loans
borrowings
Contract
77686881.240.28%94850083.230.33%-0.05%
Liability
Long-term
299800000.001.07%238000000.000.83%0.24%
borrowings
Lease liability 37733196.51 0.13% 31589277.20 0.11% 0.02%
Provision for
Goodwill 122316819.20 0.44% 237682375.72 0.83% -0.39%
impairment of goodwill
Foreign assets account for a relatively high proportion
□Applicable □Not applicable
2. Assets and liability measured by fair value
□Applicable Not applicable
In RMB
Devalu
Accumulati
ation
Changes of ve changes
of Amount of Amount of
Amount at the fair value of fair Other changes Amount at period-
Item withdra purchase in the sale in the
beginning period gains/losses value (+-) end
wing in period period
in this period reckoned
the
into equity
period
Financial assets
1.Trading
financial -
2337700000.018963715
asset(excluding 4045429568.87 9762106.38 3007417254.0 3195837265.02
06.20
derivative 3
financial assets)
2.Other equity
instrument 677790690.00 677790690.00
investment
3.Receivable
1918368845.21-256618895.751661749949.46
financing
-
Subtotal of 2337700000.0 18963715
6641589104.089762106.383264036149.75535377904.48
financial assets 0 6.20
8
27WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
-
2337700000.018963715
Above total 6641589104.08 9762106.38 3264036149.7 5535377904.48
06.20
8
Financial
747115.75-747115.750.00
liabilities
Other changes: Maturity redemption
Whether there have major changes on measurement attributes for main assets of the Company in the report period or not
□ Yes □No
3.The assets rights restricted till end of the reporting period
In RMB
Item Book value at period-end Restriction reason
Monetary funds 22174151.94 Dollar margin for foreign exchange contracts
Monetary funds 7902000.00 IRD performance bond
Monetary funds 210720.00 Mastercard earnest money
Monetary funds 4000.00 ETC freezing
Note receivable 97820000.00 Notes pledge for bank acceptance
Receivable financing 568256134.85 Notes pledge for bank acceptance
Receivable 14581430.53 Pledge to obtain loans
Total 710948437.32
VII. Investment analysis
1. Overall situation
□Applicable □Not applicable
2. Major equity investment obtained in the reporting period
□ Applicable □ Not applicable
3. Major non-equity investment in progress in the reporting period
□ Applicable □ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable □Not applicable
In RMB
Book Current Cumul
Accoun value at gain/lo ative Profit
Initial Current Book
Code of Short ting the ss of fair Current and loss Accoun
Variety of invest purchas value at Capital
securiti form of measur beginni fair value sales in the ting
securities ment e the end of Source
es securities ement ng of value change amount Reportin subject
cost amount the period
model the change s in g Period
period s equity
Domestic Measur
19920 78834 - - Trading
and ed by 767567 Own
600841 SNAT 8000. 732.0 2078 20780 financia
foreign fair 16.00 fund
00 0 016.00 16.00 l asset
stocks value
28WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Domestic Measur
Miracle 69331 66693 Trading
and ed by 4380 43803 710739 Own
002009 Automati 500.0 600.0 financia
foreign fair 300.00 00.00 00.00 fund
on 0 0 l asset
stocks value
Other
Domestic Measur
Guolian 12000 18660 18909 non
and ed by 3571 35717 108400 Own
601456 Securitie 000.0 8914. 6700. current
foreign s fair 786.00 86.00 0.00 fund
0 00 00 financia
stocks value
l assets
Domestic Measur
Lifan Trading
and 62845 ed by 48516 14328 62845 14328. Own
601777 Technolo financia
foreign gy .00 fair .34 .66 .00 66 fund
l asset
stocks value
Domestic Measur
Trading
and Zoyte 61326 ed by 46241 15196 47761 15196. Own
000980 financia
foreign Auto 5.48 fair 4.48 .72 1.20 72 fund
l asset
stocks value
3326418963
590359035148914
Total 281215610.48 -- 8176. 0.00 0.00 7156. -- --
595.3895.38616.00
8220
Disclosure date of 2012-03-24
securities investment
approval of the Board 2013-06-04
(2) Derivative investment
□ Applicable □ Not applicable
There is no derivative investment during the reporting period.
5. Application of raised proceeds
□ Applicable □ Not applicable
There is no application of raised proceeds during the reporting period.VIII. Sales of major assets and equity
1.Sales of major assets
□ Applicable □ Not applicable
No major assets were sold during the reporting period.
2. Sales of major equity
□ Applicable □ Not applicable
IX. Analysis of the main controlling and participating companies
□ Applicable □ Not applicable
Main subsidiary and participating enterprises with over 10% influence on net profit of the Company
In RMB
Company Operating Operating
Type Main business Register capital Total assets Net assets Net profit
name revenue profit
29WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
After-treatment 5476474238. 2785367797. 3605313446. 217659495 232172143
WFLD Subsidiary 502596300.00
system products 91 04 67 .26 .48
Fuel management 1563336557. 1157841673. 661256020.1 181227419 164076571
WFJN Subsidiary 346286825.80
system products 28 30 7 .10 .71
Equity
Fuel management USD 1651006152 8109015591. 1326958630 29988239 29711770
RBCD participation
system products 382500000.00 5.44 15 9.56 19.91 35.99
enterprise
Equity
Zhonglian Gasoline system 8432987196. 8420473903. 20475994 20404436
participation 600620000.00 30337704.69
Electronics products 13 85 16.43 63.38
enterprise
Subsidiary acquired and disposed in the reporting period
□ Applicable □ Not applicable
Explanation of the main controlling and participating companies
X. Structured subject controlled by the Company
□ Applicable □ Not applicable
XI. Prospect of future development of the Company
(I) Future development strategy of the Company
Based on corporate vision “expert of hundred years in automobile core parts industry” during the “14th Five-Year Plan” period the
Company will continue to adhere to the strategic policy of “internationalization autonomy and multi-dimensional” accelerate the
“double-engine drive” strategy of “optimizing and upgrading existing core businesses breaking through and blocking strategicemerging businesses” and form “Energy saving and emission reduction” “Green hydrogen energy” “Intelligent electric” and “Othercore components”.
(1) Energy saving and emission reduction as the existing core business segment of the Company contains three major business areas
of high pressure fuel injection system After-treatment system and turbocharging. The Company has positioned new increments
actively promoted business transformation and upgrading maintained its industry leading position and maintained organic business
growth. Under the general trend of low carbon and energy saving the Company will seize the strategic opportunity of upgrading
emission regulations expedited the expansion of the market of products related to ordinary hybrid and plug-in hybrid and intensify
the cooperation with joint venture brands and head of new car-making forces to further increase the market share of products; The
Company will focus on high efficiency energy saving (including plug-in hybrid) clean alternative fuel (natural gas methanol
hydrogen etc.) fuel after-treatment and turbocharging etc. during product development strengthen key technology product
development capabilities enhance forward engineering capabilities and system integration as well as application development
capabilities; In addition the Company will consolidate and improve its process operation ability and improve its cost and quality
control ability.
(2) Green hydrogen energy is an important strategic direction for the transformation of the Company's business structure. The
Company will focus on the core components of hydrogen fuel cells and hydrogen production from renewable energy in the middle
and upper reaches of the hydrogen energy industry chain building core competitiveness and realizing large-scale business growth.
1. In terms of the business of core components of hydrogen fuel cell the Company will based on the core technical capabilities of
core materials (membrane electrode graphite bipolar plate and metal bipolar plate) and key components of BOP that have been
acquired and constructed at present accelerate the establishment and operation of organizational planning promote the construction
of three major bases in the world and realize the small-scale market applications.* Enhance global engineering capability. The Company will actively promote the construction of engineering centers in Asia-Pacific
Europe and North America strengthen investment continuously improve the level of engineering technology especially the research
and development and application of product technology and quickly realize the batch production of customer market projects.
30WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
* Expand global business functions. The Company will 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 the sharing of strategic
resources and efficient and coordinated market expansion among centers and business segments actively expand international and
domestic customers continuously deepen the cooperative relationship with strategic partners strategic customers and major
customers and promote the large-scale application of the market.* Enhance global manufacturing capability. Accelerate the capacity building of manufacturing centers in Asia-Pacific Europe and
North America with the goals of global production capacity of 8000000 membrane electrodes 9000000 graphite bipolar plates
4000000 metal bipolar plates and 100000 BOP key parts during 2021-2025; Among them the target production capacity of Asia
Pacific (China) is 4000000 membrane electrodes 5000000 graphite bipolar plates 2000000 metal bipolar plates and 100000
BOP key parts.* Strengthen strategic coordination and resource integration. Based on the platform of Hydrogen Energy Division strengthen global
business strategic coordination and resource integration. In particular in terms of the construction of the Asia Pacific base the
Company will integrate the business related to the core components of hydrogen fuel cells strengthen the cooperation with various
strategic partners establish a joint venture company WFQL to develop the application supply chain manufacturing sales and
service of products for the Asia Pacific market mainly in China.
2. In terms of hydrogen production from renewable energy based on the current core component technologies such as membrane
electrodes and graphite/metal bipolar plates as well as the R&D testing and verification capabilities of PEM electrolytic water
reactors the Company has focused on cultivating and incubating PEM electrolytic water hydrogen production system and equipment
technologies to realize product market applications.* Focus on the implementation of the demonstrative line project. Complete the construction of Phase I and Phase II of the PEM
electrolytic water hydrogen production demonstration line and achieve the overall solution design and implementation service
capabilities for electrolytic water hydrogen production.* Actively acquire key technology capabilities. Explore external technology and industrial investment cooperation opportunities
expedite independent R&D and build key technology capabilities such as electric reactors system equipment design development
and integration. Develop and incubate a number of low-power system equipment products in niche sectors (hydrogen production) and
develop high-power system equipment technologies and products applicable to energy storage and hydrogen refueling stations.* Expand market application projects. Vigorously extend the customers and markets endeavor to realize the application of small
power system equipment and shape small batch market application actively participate in the large-scale renewable energy hydrogen
production demonstration projects and reach domestic leading enterprises in the industry to explore cooperation opportunities.
(3) Intelligent electric segment Focus on the four major business areas of core components of electric drive system thermal
management system and core components core modules for intelligent sensing as well as core components in the cabin shape core
competitiveness in market technology and intelligent manufacturing and realize business transformation and growth in scale.
1. Core components of electric drive system: based on the understanding of core automotive parts system R&D capabilities and high-
end intelligent manufacturing capabilities develop the core electric drive parts business and promote market scale as well as the
forward-looking layout of the wheel hub motor technology of the Company cultivate and incubate in all aspects and realize market
applications of products.* For electric drive core parts take motor shaft water jacket end cover etc. as the entry point extend to other core parts enrich the
product catalogue and shape the supply capabilities of key products; Based on extensive practical experience accumulated through
cooperation with renowned domestic electric drive enterprises make breakthroughs with key new energy vehicle enterprise
customers especially high-end new power establish deep strategic cooperation and promote the diversified development of strategic
customers.* Expedite the product technology optimization of wheel motors realize the penetration to passenger car scenario and promote the
construction of assembly capacity to establish batch production capabilities.
31WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
2. For thermal management system and core components take electronic oil pump as the entry point rely on the group-based
technology market and manufacturing platform advantages of the Company fully promote the development and application of key
components such as integrated pumps valves heat exchangers as well as strategic products of thermal management system and
further proactively seek the development in other application scenarios such as energy storage.* Realize the breakthrough of high-end customers and in-depth strategic cooperation of customers. To actively penetrate mature
mainstream high-end customers in China and Europe by leveraging the overseas technology and product accumulation of VH
acquired by the Company complete technology validation and shape the first batch of product supply; Actively explore global
customer resources such as OEM and electric drive system integrators of self-research electric drive/thermal management system
converge channel resources integration capabilities and make breakthroughs in key strategic customers.* Synchronize global R&D and actively extend product portfolio. Promote global resource planning and layout construct global
synchronous R&D capability realize global synchronous R&D synergy further expand product series actively launch the
development and supply capabilities of core components for thermal management system-level solutions and extend products such
as integrated pumps valves and heat exchangers.* Upgrade global batch production and supply capabilities. Reinforce the construction of global supply chain system capabilities in
Europe and China integrate the intelligent manufacturing elements of the Company and achieve large-scale production and supply
capabilities.
3. Intelligent perception core module
For core module of intelligent sensing business strategically focus on millimeter wave radar offer customized radar modules and
sensing solutions penetrate from basic scenarios and cultivate capabilities meanwhile aim at high-end application market for
autonomous driving.* Build core competencies and achieve commercial breakthroughs. Build a market-oriented independent business operation team
with industry competitiveness complete the development testing and production line construction of 3D/4D product platforms
achieve commercialization breakthroughs and seek opportunities for expanding investment mergers and acquisitions and deep
cooperation with strategic partners.* Focus on improving segmented markets and industrial scale. Focusing on segmented scenarios such as trunk logistics integrating
resources with localized service capabilities as the core building large-scale industrialization capabilities and enhancing
commercialization capabilities through resource integration and support with strategic partners forming independent business units
for commercial operation.* The ability to transform the main scene and form system solution. The accumulated resources from segmented scenes are
transformed into the main scene establishing a system supply capability of radar and domain control combination forming market
competitiveness and customer combination and improving data closed-loop accumulation with the ability to provide multi-sensor
fusion solution services.
4. Core components in the cabin
Focus on core components in the cabins of which take the initiative to enter the medium and high-end commercial vehicle market
develop a competitive edge with differentiated products of high performance high quality high cost performance accelerate the
development of industrial scale and extend to the medium and high-end passenger car market; Establish the capabilities of systematic
design and testing of seating products improve technical innovation capabilities develop towards networking and intelligence and
align with the demands of intelligent cockpit scenes. Meanwhile the Company will leverage its cooperation with smart cockpit
partners to engage in the business field of smart cockpit based on domain control technology and endeavor to seek and expand
business opportunities related to smart cockpit.
(4) For other core components segments the Company will further promote the business transformation and upgrading of hydraulic
systems and their core components core components of braking systems intelligent manufacturing equipment post-marketing and
trading and actively explore the layout of cutting-edge technologies and markets in line with the strategic orientation of the
development of the Company to achieve an increase in business volumes. In particular for the hydraulic system and core
32WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
components as the main strategic development direction of the Company jointly expand the market of walking hydraulics and
industrial hydraulics by establishing a joint venture with Bosch Rexroth. Meanwhile integrate the strategic resources of the overall
value chain process of both sides continue to establish a more cost advantage better performance faster response time and
comprehensive competitiveness and continue to promote the strategic business layout and development of hydraulic systems and
core components.The Company will further deepen the management plan budget management and performance management systems under the
guidance of strategies implement differentiated control and governance implement efficient inter-segment business synergy
accelerate the training of strategic core talents and improve the operation and management capabilities during the strategic
transformation period in a comprehensive manner to satisfy the medium and long-term strategic development demands of the
Company.(II) Priority tasks for 2024
1. Continuously promoting the operation of the strategic system and effectively ensuring the layout of new businesses
Promote the implementation of the 14th Five Year Plan with a focus on implementing several improvement suggestions from the
mid-term evaluation; Deepen the planning of new business directions such as hydraulic and thermal management and seek new
strategic development opportunities for the company; Follow up and implement strategic planning around potential strategic projects
such as radar car seats and hydrogen storage. Promote the implementation of projects for independent operation of intelligent
perception services accelerate investment and cooperation with strategic partners in the seat business and advance investment and
development in the new stage of the seat business; Promote investment cooperation in important potential strategic businesses such
as high-pressure hydrogen storage and continue to follow up on post investment cooperation and strategic investment actions for
projects such as Auto Link and WFPM etc.
2. Continuously improving product market performance and fully expanding market share
In terms of fuel injection systems ensure the delivery of common rail pump orders ensure the market share of VE pumps
continuously explore incremental markets and ensure the export of mechanical pumps and supply to special markets; Promote the
supply of GP products in key customer projects. In terms of post-processing systems promote the expansion of market business in
hybrid passenger vehicles natural gas commercial vehicles pickup trucks non road vehicles etc. and complete project iteration
continuation and new project batch production. In terms of intake system steadily increasing the market share of existing customers
for four cylinder gasoline turbochargers and accelerating the development of new customers for hybrid projects. Focusing on the
expansion of four cylinder variable nozzle turbochargers and special series diesel turbochargers projects; Accelerate the mass
production of multiple key customer projects for six cylinder turbochargers and further expand the market for alternative fuels.Relying on the "the Belt and Road" strategy consolidate and expand overseas markets aim at domestic market opportunities reserve
after-sales products in advance actively develop large fleet businesses and seek new growth points; Continuously seeking domestic
customer cooperation opportunities and obtaining demonstration projects for hub motor products; strive to complete key customer
projects for mass production of fuel cell components such as membrane electrodes graphite bipolar plates metal bipolar plates and
hydrogen supply components and actively seek new project opportunities; Realize the supply of gate radar and cabin radar projects
complete technical verification and product delivery for multiple customer projects and verify the 4D radar target list client; Find
more passenger car customer projects for automotive seat products.
3. Continuously conquering core technologies of new products and assisting in breakthroughs in the new product market
Efficient internal combustion power products completed the development of a 2000 bar upgrade platform for the GP system and
completed engine tests for top customers achieving small-scale supply; Complete the development and small-scale supply of sample
C for the dual fuel injector project; Complete the standard durability verification and engine performance verification of the methanol
cylinder high-pressure injection system oil pump platform; Complete the pre research of low-pressure direct injection technology for
hydrogen internal combustion engine injectors and ignite the engine; Conduct research on ammonia injection system technology;
Complete batch supply release of CB6-25 single cylinder high-pressure pump. Accelerate the application of post-treatment hybrid
exhaust systems expand export projects accelerate the pre research of non road low-cost technology route projects National Seven
post-treatment and alternative fuel post-treatment systems. Focus on promoting the acquisition and development of four stage fuel
33WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
consumption and hybrid technology roadmap projects for four cylinder turbochargers strengthening the development of efficient six
cylinder turbochargers for internal combustion engines optimizing and improving alternative fuel turbochargers and obtaining and
mass producing key customer projects.In terms of core materials for hydrogen fuel cells follow up with customers plan and develop high-performance catalysts
simultaneously and complete the development of second-generation high-performance membrane electrodes; Develop gas diffusion
layer products and complete the construction of incubation production lines; Complete the development of high-pressure valve and
hydrogen circulation pump B samples; Complete the verification of the second-generation low-pressure valve platform; Complete the
reliability verification of the air bearing the core component of the air compressor. In terms of thermal management systems strive
for new customer projects for thermostats and electronic water pumps and achieve mass production; Complete the development of
electronic oil pump samples for 120W and above 200W. In the field of PEM electrolysis water hydrogen production industrial
production demonstration application of a hundred kilowatt level hydrogen production system has been completed and research on a
megawatt level electrolysis cell platform has been initiated. In terms of situational awareness system complete the designated
customer project for in cabin radar and achieve mass production; Complete gate radar product testing and deliver in small batches;
Complete the development and small batch delivery of 3D angle radar B samples; Complete coal safety certification and application
implementation of mining radar; Targeted and small-scale delivery of projects to new radar clients before completing 4D imaging;
Complete the development of 4D imaging angle radar B samples.
4. Continuously creating a quality culture atmosphere comprehensively promoting intelligent manufacturing applications
Optimize the quality management system architecture quality manual and external audit improvement experience management;
Promote the application of special feature screening methods and quality valve evaluation mechanisms; Continuously improve
process compliance by combining layered process audits Q11 and full process element management and evaluation. Continuously
promote lean production management deepen continuous improvement of systems and workshops and implement refined analysis
and management of labor costs. Continuously improving the research and application capabilities of intelligent manufacturing
accelerating the comprehensive implementation of the company's intelligent manufacturing blueprint; Pilot manufacturing of big data
application scenarios establishment of industrial mechanism business models and exploration of data value.The R&D building project and the construction of the sixth phase of the 103 plot factory building project have been delivered on
schedule and the preliminary design of the hydrogen energy industry park has been completed; Complete the pilot construction of
the energy management platform and continue to promote green office. Benchmark the environmental health and safety
management system optimize compliance control of major safety risks and special equipment and improve the investigation of
hidden dangers in sudden environmental accidents. Strengthen grid management rely on EHS information supervision platform and
on-site hierarchical control achieve hierarchical responsibility implementation and normalize and refine control.
5. Continuously strengthening excellent operational management working together to promote high-quality development
Comprehensively promote the construction of organizational functions authorization and institutional process systems in the
business unit continuously promote the deep integration of business plans and budgets strengthen business monitoring analysis and
organizational performance management and promote the platformization of project management. Continuously strengthening the
ability to respond to tax risks; Optimize the prediction of peak and valley values of funds and improve the efficiency of fund
utilization; Implement measures to optimize and improve the profitability of key customers and products and continuously enhance
the company's profitability. Coordinate the construction of supplier management platforms strengthen investment in technology cost
reduction projects and focus on improving the quality level and delivery capacity of new energy procurement component suppliers;
Focusing on supplier sourcing cultivation assistance and exit management focusing on slow flow generation monitoring and
disposal strengthening order review material risk assessment and the ability to dispose of long-term stagnant materials. Promote
digital business transformation and achieve the launch of supplier management platforms; Promote the application of standardized
modules in intelligent manufacturing and continuously build analytical capabilities for big data; Improve the information security
system and accelerate the application of artificial intelligence technology in manufacturing and business scenarios. Carry out
knowledge and concept sharing comprehensively promote special internal control inspections in key areas and core links and
conduct internal control self inspections in business units; Focus on carrying out legal revisions to the articles of association of
34WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
domestic subsidiaries and provide legal services for major projects and businesses. Strengthen the introduction of key project
technical talents and core high-level talents improve the talent development mechanism promote personnel structure adjustment
and optimize the layout of core business talents; Strengthen the construction of international talent capacity formulate overseas talent
selection standards and training plans; Promote the construction of special capabilities for key functions and key business positions of
"three airlines and one craftsman"; Comprehensively plan long-term incentives for core talents deepen new business incentive
models and optimize employee performance systems.(III) Possible risks and countermeasures
1. Macroeconomic and market risks
Currently the macroeconomic and market conditions are still complex and challenging with the automobile industry still facing
relatively high pressure. In case of a decline in demand from the automotive industry the production operation and profit level of the
Company will be affected to a certain extent.Countermeasures: The Company will constantly monitor macroeconomic and industry development trends consolidate its existing
business market presence actively expand new business and strive to improve its core competitiveness and overall anti-risk
capabilities.
2. Operation management and control risks
With the acceleration of the international layout of the Company and the expansion of the scope of strategic new business especially
in the field of new energy the management span is relatively large with potential operational management and investment risks.Countermeasures: The Company will continuously improve and optimize internal management improve processes and further
regulate management and control operational risks; Reinforce the control of international business and accelerate the construction of
international talent team to satisfy the strategic development demands of the enterprise.
3. Risk of raw material price fluctuation
The main raw materials of the Company include steel aluminum precious metals etc. of various grades the continuous increase of
their prices will pose the risk of cost increase to the Company.Countermeasures: The Company will actively improve its market forecasting capabilities plan production capacity in advance and
reasonably control raw material inventories to reduce the exposure to raw material price fluctuations while continuously optimizing
supply chain management strengthening the vertical integration capability of the industry chain and transferring part of the risks
through cost control measures and product price adjustments so as to reduce the impact of raw material price fluctuations on
performance.
4. Risks related to financial instruments
The major financial instruments of the Company include monetary funds structured deposits receivables investments in equity
instruments financial products borrowings payables etc. In the process of operation the Company is exposed to risks related to
financial instruments including credit risks market risks and liquidity risks.Countermeasures: Identify and analyze various risks exposed to the Company establish appropriate risk tolerance thresholds and
manage risks monitor various risks in a timely manner ensure that risks are controlled within limits minimize the negative impact
of risks on the operating performance of the Company and maximize the interests of shareholders and other investors.XII. Reception of investigation communication and interview during the reporting period
□Applicable □ Not applicable
Reception
Reception Reception Reception Reception Main content talked about Index of basic situation
object
time place mode Object and materials provided of research
type
For details please refer to
Conference the Record of Investor
Febuary 6 Field Institutional room of the Institution Relations Activities http://www.cninfo.com.cn
2023 research investor
Company disclosed by the Company
on Juchao Website (No.
35WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
2023-001)
For details please refer to
the Record of Investor
Conference
Febuary 8 Field Institutional Relations Activities
room of the Institution http://www.cninfo.com.cn
2023 research investor disclosed by the Company
Company
on Juchao Website (No.
2023-001)
From January Interactive Answered 65 questions
Basic company
1 2023 to platform of Written online through the
Other Other information and view of
December 31 investor inquiry interactive platform for
the market
2023 relationship investor relations
From January
Basic company 1371 telephone
1 2023 to Company
Telephoning Other Other information and view of communications with
December 31 tel.the market investors
2023
XIII. Implementation of the Action Plan for “Double Improvement of Quality and Return”
Whether the company discloses the Action Plan for “Double Improvement of Quality and Return”
□Yes □No
36WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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 Corporate Governance for Listed Companies Rules Governing the Listing of
shares on Shenzhen Stock Exchange and Guidelines on Self-Regulation of Listed Companies of Shenzhen Stock Exchange No. 1 -
Standardized Operation of Main board listed company continued to improve and enhance legal person governance structure and
internal control system thus to standardize its operation.The actual status of corporate governance 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. During the reporting period the company revised its Articles of
Association twice twice prepared the Operating Rules for Related Party Transaction Management and optimized and improved
multiple internal control documents; Organized multiple promotional and learning activities related to internal control systems and
processes shared the concept and knowledge of risk internal control enhanced the risk control awareness of all employees and
continuously optimized the company's internal control 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 significant decisions and takes responsible for the general meeting of stockholders; the
company sets up the general manager according to law to preside over the company’s daily production and operation and
management organize and implement the resolutions of the 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 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 2023
Internal Control Evaluation Report on www.cninfo.com.cn which is the information disclosure website designated by SZSE.Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance for
listed company from CSRC
37WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
□ Yes □No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governance
for listed company from CSRC.II. Independence of the Company relative to controlling shareholder and the actual controller
in ensuring the Company’s assets personnel finance organization and businesses
1. Business: the company has a complete independent research and development procurement production and sales systems the
main business does not have horizontal competition with the controlling shareholders. The business is absolutely separated.
2. Personnel: the company has mutual independence with its controlling shareholders in labor personnel and salary management;
there is no mixed operation and management with the controlling shareholders. The company’s general manager vice general
manager financial administrator secretary of the board and senior executives don’t hold any position in the shareholders’ units.
3. Assets: the company's assets are independent and complete the property relations with the controlling shareholders are clear.
4. Organization: the company has established organization completely independent from its controlling shareholders the duty and
authority of the company’s shareholders’ meeting board of directors board of supervisors and management level are clearly defined
the internal management system can operate independently.
5. Finance: the company has set up an independent financial department established the independent financial accounting system and
financial management system opened the independent bank account and paid taxes separately according to law.III. Horizontal competition
□ Applicable □ Not applicable
IV. Annual shareholders’ general meeting and extraordinary shareholders’ general meeting
held during the reporting period
1. Annual shareholders’ general meeting during the reporting period
Ratio of
investor
Ordinal number of meeting Type Date Date of disclosure Resolution of meeting
participati
on
（www.cninfo.com.cn)(Notice No.: 2023-026)
Annual general meeting of 2022 AGM 40.58% May 26 2023 May 27 2023 published on Juchao
Website(www.cninfo.com.cn)
(Notice No.: 2023-036)
1st extraordinary general Extraordinary published on Juchao
39.77% June 19 2023 June 20 2023
meeting of 2023 general meeting Website(www.cninfo.com.cn)
2. Request for extraordinary shareholders’ general meeting by preferred stockholders whose voting rights
restore
□ Applicable □Not applicable
38WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
V. Directors supervisors and senior officers
1. Basic information
Amount Amount
Shares
of shares of shares Shares held Reasons for
Ge Work Start dated held at Other
Ag End date of increased decreased at period- increase or
Name nd Title ing of office period- changes
e office term in this in this end decrease of
er status term begin (share)
period period (Share) shares
(Share)
(Share) (Share)
The
company
bought back
Curre and
Wang
M ntly May 28 May 19 canceled the
Xiaodon 57 Chairman 420781 120000 300781
ale in 2020 2024 restricted
g
office shares
which were
granted but
not lifted
Curre
Kirsch
M Vice ntly May 20 May 19
Christop 62 0 0
ale chairman in 2021 2024
h
office
The
company
bought back
Curre and
Vice
Xu M ntly May 28 May 19 canceled the
52 chairman 363000 105000 258000
Yunfeng ale in 2020 2024 restricted
GM
office shares
which were
granted but
not lifted
Curre
ntly June 19 May 19
Director
in 2023 2024
Feng M office
5465192
Zhiming ale Curre
ntly May 19
Vice GM June 1 2023
in 2024
office
Curre
Chen M ntly March 7 May 19
62 Director 0 0
Yudong ale in 2012 2024
office
Curre
Fe
Zhao ntly May 20 May 19
m 42 Director 0 0
Hong in 2021 2024
ale
office
Curre
Huang M ntly May 20 May 19
39 Director 0 0
Rui ale in 2021 2024
office
Curre
Fe
Yu Independent ntly June 27 May 19
m 60 0 0
Xiaoli Director in 2018 2024
ale
office
Curre
Xing M Independent ntly May 20 May 19
6900
Min ale Director in 2021 2024
office
Curre
Fe
Feng Independent ntly May 20 May 19
m 50 0 0
Kaiyan Director in 2021 2024
ale
office
Curre
Pan M Independent ntly May 20 May 19
5200
Xinggao ale Director in 2021 2024
office
Chairman of Curre
Ma M the ntly May 20 May 19
4900
Yuzhou ale Supervisory in 2021 2024
Committee office
Curre
Chen M May 28 May 19
51 Supervisor ntly 1000 1000
Ran ale 2020 2024
in
39WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
office
Curre
Fe
Liu ntly May 20 May 19
m 38 Supervisor 0 0
Songxue in 2021 2024
ale
office
Curre
Xu M ntly May 28 May 19
49 Deputy GM 280000 84000 196000
Sheng ale in 2020 2024
office
Curre
Rong M ntly May 28 May 19
48 Deputy GM 280000 84000 196000
Bin ale in 2020 2024
office
Deputy GM Curre
The
Liu M and ntly May 28 May 19
48 280000 84000 196000 Company
Jinjun ale Secretary of in 2020 2024
repurchased
the Board office
and
Curre
canceled the
M Chief ntly May 28 May 19
Li Gang 53 280000 84000 196000 restricted
ale engineer in 2020 2024
shares
office
which were
Leav
March 7 June 19 granted but
Director e
2012 2023 not lifted
office
Ou M Executive
5729000084000206000
Jianbin ale deputy GM Leav
March 7 March 5
and e
20122024
financial office
manager
Leav
Miao M April 16 May 26
60 Deputy GM e 290000 168000 122000
Yuming ale 2003 2023
office
Total -- -- -- -- 2484781 0 813000 1736973 --
During the reporting period whether there was any departure of directors and supervisors and dismissal of Senior Executives
Yes □No
1. On May 27 2023 the Company disclosed the “Notice on the Retirement and Resignation of Senior Management Personnel”. Mr.
Miao Yuming applied to resign from the position of deputy GM of the company as he reached the statutory retirement age.According to relevant regulations Mr. Miao Yuming’s resignation report took effect from the date of delivery to the company’s
board of directors.
2. The Company held the 17th meeting of the 10th session of the Board of Directors on June 1 2023 and convened 2023 the firstextraordinary shareholders meeting on June 19 2023 deliberating and approving the “Proposal on Dismissing the Non- IndependentDirectors” and approving to dismiss the position of Mr. Ou Jianbin as a non independent director.Changes of directors supervisors and senior executives
Applicable □ Not applicable
Name Title Type Date Reason
The company's shareholders proposed to dismiss the
Ou Jianbin Director Leave office June 19 2023
director's position
Miao Yuming Deputy GM Be dismissed May 26 2023 Retire
Feng Zhiming Deputy GM Be employed June 1 2023
Feng Zhiming Director Be elected June 19 2023
2. Post-holding
Professional background major working experience and present main responsibilities in Company of directors supervisors and
senior executive
Mr. Wang Xiaodong 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.
40WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Mr. Kirsch Christoph born in October 1961 German nationality Master’s degree. He previously served as R&D engineer product
manager and key account sales manager of the diesel system division in Robert Bosch Group GM of Bosch Automotive Diesel
System Co. Ltd senior vice president of the commercial vehicle business Bosch Diesel System Division the executive vice
president of production & quality in United Automotive Electronic Systems Co. Ltd(UAES) executive vice president of production
& quality gasoline system division of Bosch Group the executive vice president of commercial vehicle & off-road business the
solution business division of RBCD representing the Bosch Automotive and Intelligent Mobility Asia Pacific Board. Currently he
serves as BMS in Robert Bosch Group and the vice chairman of the Company.Mr. 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. Feng Zhiming born in November 1969 Chinese nationality member of the CPC Master’s degree in Business Administration
and a senior engineer. He has served as the deputy manager of the Power Branch of Wuxi Weifu Group Co. Ltd. the Director and
Deputy Chief Engineer of the Engineering Department of Wuxi Weifu Group Co. Ltd. the Director of the Engineering Procurement
Department of WFHT the General Manager of WFMA the general manager and Chairman of Wuxi Xidong Technology Industrial
Park Co. Ltd. the general manager of Wuxi Hongyuan Electromechanical Technology Co. Ltd. the Office Director of Wuxi
Industry Development Group Co. Ltd and the Chairman and General Manager of Jiangsu Taiji Industrial New Materials Co. Ltd.He is currently the director and deputy general manager of the company.Mr. Chen Yudong 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 and president of Bosch (China) Investment Ltd. Now he
serves as the part-time consultant of China affairs of the BOD of BOSCH and the director of the Company.Ms. Zhao Hong born in September 1981 Chinese nationality and no permanent residence abroad member of the CPC Bachelor’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 director of operations and employee supervisor 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 the director of the Company.Ms. Yu Xiaoli born in January 1963 Chinese nationality and no permanent residence abroad member of the CPC and Ph.D. She 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 the professor at the
School of Energy Engineering of Zhejiang University and the doctoral supervisor the chairman of the Society of Automotive
Engineers of Zhejiang the director of Zhejiang Bozhong Automobile Technology Co. Ltd. the independent director of Zhejiang
Wanding Precision Technology Co. Ltd (unlisted) the independent director of Xuelong Group Co. Ltd. and independent director of
Zhejiang Xinchai Electric Co. Ltd. and the independent director of the Company.Mr. Xing Min born in January 1954 Chinese nationality and no permanent residence abroad member of the CPC Bachelor’s degree
a professor-level senior engineer. He worked as the secretary of the Party Committee of China Heavy Machinery Corporation
secretary of the Party Committee and GM of China Machine Tool Corporation. Now he is the executive vice president and secretary
41WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
general of China Internal Combustion Engine Industry Association the independent director of Changchai Company Limited the
director of Anhui Aikelan Environmental Protection Co. Ltd and the independent director of the Company.Ms. Feng Kaiyan born in October 1973 Chinese nationality and no permanent residence abroad member of the CPC a Bachelor’s
degree Certified Public Accountant and senior accountant. She worked as the accounting for Wuxi Production Materials Corporation
and Wuxi Geological & Mining Information Service Center. Currently she is the chief accountant of Wuxi Donghua Accounting
Firms Co. Ltd the responsible person of the Sunan Branch Jiangsu Fuhua Engineering Cost Consulting Co. Ltd the independent
director of yuancheng Cable Co. Ltd the independent director of Kangxin New Material Co. Ltd the president of Wuxi Bankruptcy
Administrator Association and the independent director of the Company.Mr. Pan Xinggao born in June 1971 Chinese nationality and no permanent residence abroad a Bachelor’s degree and a lawyer. He
served as a lawyer of Shandong Jinan Quancheng Laws Firm a lawyer of Beijing Zhongyin Law Firm and lawyer of Beijing
Zhonglun Jingtong Laws Firm. Now he is the Partner of Beijing Tongshang Law Firm the independent director of Huarui Traffic
Technology Co. Ltd and independent director of the Company.Mr. 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 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 senior engineer. She worked as the product testing engineer and product design engineer in technical center of the
Company. Currently she is the secretary general of the Science & Technology Association of the Company and Supervisor of the
Company.Mr. Xu Sheng born in March 1974 Chinese nationality and no permanent residence abroad member of the CPC graduate degree
holds a master’s degree and a senior engineer. He once served as secretary of the party committee of the company’s party committee
work department deputy director of the office of the general manager of the company deputy secretary of the party branch and
deputy factory manager of the company’s injector parts branch HSE manager of Bosch Automotive Diesel System Co. Ltd. senior
manager of BPS director of MOE5 and assistant general manager of the company. He is currently the deputy GM of the Company.Mr. 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
42WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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
□Applicable □ Not applicable
Received
End date
Position in Start dated of remuneration from
Name Name of shareholding entity of office
shareholding entity office term shareholding entity
term
(Y/N)
Kirsch Christoph ROBERT BOSCH GMBH BMS April 1 2023 Y
Part-time consultant
Bosch (China) Investment January 1
Chen Yudong of China affairs of Y
Ltd. 2024
BOSCH Group
Wuxi Industry Development
Zhao Hong Operation director April 19 2021 Y
Group Co. Ltd.Wuxi Industry Development Employee September 8
Zhao Hong Y
Group Co. Ltd. supervisor 2023
Wuxi Industry Development GM of investment
Huang Rui May 1 2021 Y
Group Co. Ltd. banking department
Post-holding in other unit
□Applicable □ Not applicable
Start dated
Position in other End date of Received remuneration
Name Name of other entities of office
entities office term from other entities (Y/N)
term
Professor and doctoral
Yu Xiaoli Zhejiang University 1985-08-01 Y
supervisor
Society of Automotive
Yu Xiaoli Chairman 2015-06-01 N
Engineers of Zhejiang
Zhejiang Bozhong Automobile
Yu Xiaoli Director 2008-04-01 N
Technology Co. Ltd
Yu Xiaoli Xuelong Group Co. Ltd Independent director 2022-09-15 2025-09-14 Y
Zhejiang Wanding Precision
Yu Xiaoli Independent director 2019-11-01 Y
Technology Co. Ltd
Yu Xiaoli Zhejiang Xinchai Co. Ltd Independent director 2022-09-22 Y
Executive vice
China Internal Combustion
Xing Min president and secretary 2008-08-01 Y
Engine Industry Association
general
Anhui Aikelan Environmental
Xing Min Director 2021-11-22 2024-11-21 Y
Protection Co. Ltd
Feng Wuxi Donghua Accounting
Chief accountant 1998-10-01 Y
Kaiyan Firms Co. Ltd
Jiangsu Fuhua Engineering Cost
Feng
Consulting Co. Ltd - Sunan Responsible person 2020-07-16 N
Kaiyan
Branch
Feng
Yuancheng Cable Co. Ltd. Independent director 2019-11-22 Y
Kaiyan
Feng
Kangxin New Material Co. Ltd Independent director 2023-04-20 2026-01-03 Y
Kaiyan
Feng Wuxi Bankruptcy Administrator
President 2024-01-07 N
Kaiyan Association
43WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Pan
Beijing Tongshang Law Firm Partner 2007-10-01 Y
Xinggao
Pan Huarui Transportation
Independent director 2022-02-26 Y
Xinggao Technology Co. Ltd
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 of directors supervisors and senior executives
Decision-making procedures recognition basis and payment for directors supervisors and senior executives
1. Decision-making procedure: the remuneration committee of the Board shall make proposals according to completion status of 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 150000 yuan per person/year (tax included) and the
traveling expense occurred by them arising from attending the Company’s board meeting general meetings and relevant activities
will be reimbursed according to the actual conditions.
3. Actual payment: remuneration of directors supervisors and senior 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 of directors supervisors and senior executives in the reporting period
In ten thousand yuan
Total remuneration Whether remuneration
Post-holding
Name Gender Age Title obtained from the obtained from related party
status Company (before taxes) of the Company (Y/N)
Wang Currently in
Male 57 Chairman 91 N
Xiaodong office
Kirsch Currently in
Male 62 Vice chairman 0 Y
Christoph office
Xu Currently in
Male 52 Vice ChairmanGM 82 N
Yunfeng office
Feng Currently in
Male 54 Director vice GM 32 N
Zhiming office
Chen Currently in
Male 62 Director 0 Y
Yudong office
Currently in
Zhao Hong Female 42 Director 0 Y
office
Currently in
Huang Rui Male 39 Director 0 Y
office
Currently in
Yu Xiaoli Female 60 Independent director 15 N
office
Currently in
Xing Min Male 69 Independent director 15 N
office
Feng Currently in
Female 50 Independent director 15 N
Kaiyan office
Pan Currently in
Male 52 Independent director 15 N
Xinggao office
44WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Chairman of the Currently in
Ma Yuzhou Male 49 63 N
Supervisory Committee office
Currently in
Chen Ran Male 51 Supervisor 57 N
office
Liu Currently in
Female 38 Supervisor 22 N
Songxue office
Currently in
Xu Sheng Male 49 Deputy GM 63 N
office
Currently in
Rong Bin Male 48 Deputy GM 63 N
office
Deputy GM Secretary Currently in
Liu Jinjun Male 48 63 N
of the Board office
Currently in
Li Gang Male 53 Deputy GM 63 N
office
Miao
Male 60 Deputy GM Leave office 0 Y
Yuming
Director executive
Ou Jianbin Male 57 deputy GM and Leave office 63 N
financial principle
------722--
Explanation of other situations
□Applicable □Not applicable
VI. Responsibility performance of directors during the reporting period
1.Meetings held by BOD during the reporting period
Date of Disclosure
Meeting Meeting resolution
meeting date
The Notice of the Resolution of 15th meeting of 10th session of the BOD
The 15th meeting of 10th
2023-02-24 2023-02-28 (Notice No.: 2023-005) published on Juchao Website
session of the BOD
(www.cninfo.com.cn)
The Notice of the Resolution of 16th meeting of 10th session of the BOD
The 16th meeting of 10th
2023-04-26 2023-04-28 (Notice No.: 2023-009) published on Juchao Website
session of the BOD
(www.cninfo.com.cn)
The Notice of the Resolution of 17th meeting of 10th session of the BOD
The 17th meeting of 10th
2023-06-01 2023-06-02 (Notice No.: 2023-029) published on Juchao Website
session of the BOD
(www.cninfo.com.cn)
The Notice of the Resolution of 18th meeting of 10th session of the BOD
The 18th meeting of 10th
2023-08-03 2023-08-04 (Notice No.: 2023-040) published on Juchao Website
session of the BOD
(www.cninfo.com.cn)
The 19th meeting of 10th The Resolution of 19th meeting of 19th session of the BOD (not required
session of the BOD 2023-08-18 for announcement according to relevant regulations)
The Notice of the Resolution of 20th meeting of 10th session of the BOD
The 20th meeting of 10th
2023-10-23 2023-10-25 (Notice No.: 2023-044) published on Juchao Website
session of the BOD
(www.cninfo.com.cn)
The Notice of the Resolution of 21th meeting of 10th session of the BOD
The 21th meeting of 10th
2023-11-14 2023-11-16 (Notice No.: 2023-051) published on Juchao Website
session of the BOD
(www.cninfo.com.cn)
2. Attendance of directors at board meetings and shareholders’ general meetings
Attendance of directors to board meeting and shareholders’ general meeting
Times of Times of Times of Absent the Times of
Times of Times of
Director Board attending the entrusted Meeting for attend the Presence Absence
meeting Board presence the second general
45WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
supposed to Meeting by time in a row meeting
attend in the communicati (Y/N)
on
report period
Wang
7 2 5 N 2
Xiaodong
Kirsch
7 0 7 N 2
Christoph
Xu Yunfeng 7 2 5 N 2
Ou Jianbin 3 1 2 N 0
Chen Yudong 7 0 7 N 2
Zhao Hong 7 2 5 N 2
Huang Rui 7 2 5 N 2
Yu Xiaoli 7 1 6 N 2
Xing Min 7 1 6 N 2
Feng Kaiyan 7 1 6 N 2
Pan Xinggao 7 1 6 N 2
Feng
4 1 3 N 0
Zhiming
Explanation of not attending the board meeting in person for two consecutive times: Nil
3. Objection for relevant events from directors
Directors come up with objection about Company’s relevant matters
□ Yes □ No
No directors come up with objection about Company’s relevant matters in the reporting period
4. Other explanation on responsibility performance of directors
The opinions from directors have been adopted
□ Yes □ 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.VII. Special committees under the BOD during the reporting period
Numb Other Specific
Important
er of perfor circumstanc
Committee Date of comments and
Members meetin Meeting content mance es of the
name meeting suggestions
gs of
made objection (if
held duties applicable)
The 10th Wang The Strategy
Consideration of the Strategic
session of Xiaodong 2023- Committee
1 Vision of the Company’s N/A N/A
Strategy Kirsch 04-26 verified and
Future Development
Committee Christoph deliberated on
46WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Xu Yunfeng the matters
Xing Min strictly in terms
Yu Xiaoli of the Rules of
Work of
Strategy
Committee of
the Board and
relevant laws
and regulations
relevant
proposals are
unanimously
agreed.Consideration of the (1) The
Proposal Report on Remuneration
Remuneration Assessment for Committee
Senior Executives and Payout verified and
2023- for year of 2022; deliberated on
N/A N/A
04-26 (2) Proposal on Buy-back and the matters
Cancellation of the Restricted strictly in terms
The 10th Stocks Partially Granted of the Rules of
Yu Xiaoli
Session of under 2020 Restricted Stock Work of
Feng Kaiyan 2
Remuneratio Incentive Plan Remuneration
Huang Rui
n Committee Committee of
the Board and
Consideration of the Proposal
relevant laws
on Buying Back and
2023- and regulations
Canceling Part Restricted N/A N/A
10-23 relevant
Stocks and Adjusting Buy-
proposals are
back Prices
unanimously
agreed.Consideration of the (1) 2022
Annual Report and its
Summary;
(2) Proposal on Provision for
Impairment;
(3) Proposal on Correction of
The Audit
Accounting Errors in the
Committee
Previous Period;
verified and
(4) 2022 Financial Final
deliberated on
Account Report;
the matters
(5) the Summary Report on
strictly in terms
Audit Work for the Year 2022;
The 10th of the Rules of
Feng Kaiyan (6) 2022 Internal Control
session of 2023- Work of Audit
Pan Xinggao 3 Evaluation Report; N/A N/A
Audit 04-26 Committee of
Zhao Hong (7) Proposal on Carrying out
Committee the Board and
Bill Pool Business;
relevant laws
(8) Proposal on the Estimated
and regulations
Total Amount of Daily
relevant
Related Party Transactions in
proposals are
2023;
unanimously
(9) Proposal on the Estimated
agreed.External Guarantee Amount
for 2023;
(10) Proposal on Entrusting
Wealth Management with
Free Idle Funds;
(11) Deliberation of the
47WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Proposal on Hiring Audit
Institution for Financial
Reports for the Year 2023;
(12) Deliberation of the
Proposal on Hiring an Internal
Control Evaluation Audit
Institution for the Year 2023;
(13). Review of the First
Quarter Report 2023
Consideration of the Semi-
2023- Annual Report of 2023 (full-
N/A N/A
08-18 text) and Summary of Semi-
Annual Report 2023
2023- Consideration of the Third
N/A N/A
10-23 Quarter Report of 2023
The Nominating
Committee
verified and
deliberated on
the matters
strictly in terms
Consideration of the
of the Rules of
The 10th Pan (1) Proposal on the
Work of
session of XingaoXing 2023- Appointment of Deputy
1 Nominating N/A N/A
Nominating Min Chen 06-01 General Managers;
Committee of
Committee Yudong (2) Proposal on By-election of
the Board and
Non-independent Directors
relevant laws
and regulations
relevant
proposals are
unanimously
agreed.VIII. Works of Supervisory Committee
Does the Supervisory Committee discover any risks in the company during its supervisory activities during the reporting period
□ Yes □ No
The Supervisory Committee has no objections to the supervisory matters during the reporting period.IX. Particulars of workforce
1.Number of employees professional composition and education background
The total number of current employees at year end (person) 2636
The total number of current employees to receive pay (person) 3123
Retired employee’ s expenses borne by the parent Company
5759
and main subsidiaries (person)
The total number of current employees at year end (person) 5759
The total number of current employees to receive salaries
0
(person)
Professional composition
Category of professional composition Number of professional composition(person)
Production personnel 3348
48WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Sales personnel 167
Technical personnel 1455
Financial personnel 92
Administrative personnel 697
Total 5759
Education background
Category of education background Numbers(person)
Master degree and above 542
Undergraduate 1724
Junior college 1065
Technical secondary school 437
High school 512
Other 1479
Total 5759
2. Remuneration policy
The company further improves its performance management and salary management system closely aligns with the company's
strategy and business plan fully leverages the guiding and driving role of goals closely links the total salary with the company's
operating results and fully leverages incentive effectiveness. Meanwhile the company further leverages the role of incentive funds
strengthens the promotion and incentive efforts of major innovation and development projects encourages patent applications and
plays a positive role in promoting the achievement of the company's strategic goals. The company pays social insurance for all
employees and continues to implement employee pension and medical accident commercial insurance to maximize employee
motivation and creativity. Besides the company has established a long-term service award to encourage employees to serve the
company for the long term stabilize the workforce attract high-quality talents and provide talent security for the realization of the
company's strategy.
3.Training plan
The company actively promotes the construction of a strategic talent team based on the “San Hang Yi Jiang” talent training system
and deeply develops the job competency of employees. According to the requirements of the company's international business
development explore and prepare international talent development and training plans promote the digital transformation of key
positions provide technical ability enhancement training through online and offline integration and improve the cultivation of
intelligent high skilled talents based on the “Master Studio”. Strengthen internal knowledge sharing focus on training effectiveness
conversion comprehensively enhance employee job competency and business technical ability and help the company upgrade its
talent capabilities.
4. Labor outsourcing
□ Applicable □Not applicable
X. Profit distribution plan and transfer of capital reserve into share capital
Formulation implementation and adjustment of profit distribution policy in particular the cash dividend policy during the reporting
period
49WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
□ Applicable □ Not applicable
1. Cash dividend policy: carry out bonus distribution according to the regulations of Articles of Association.
2. During the reporting period the Company implemented the profit distribution for year of 2022 based on the shares which exclude
the buy-back shares on buy-back account (25000000 A-stock) from total share capital 1002579793 shares distributed 1 yuan (tax
included) cash dividend for every 10 shares held without capitalization from capital reserves. The plan was completed in July 2023.The implementation of the Company’s cash dividend policy is in compliance with the provisions of Articles of Association relevant
decision-making procedures are complete and fully listen to the views of independent directors and small & medium shareholders
and maintain the legitimate rights and interests of small & medium shareholders.Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article of Association (Y/N): Y
Well-defined and clearly dividend standards and proportion (Y/N): Y
Completed relevant decision-making process and mechanism (Y/N): Y
Independent directors perform duties completely and play a proper role (Y/N): Y
If the company does not distribute cash dividends specific reasons should be disclosed as well as the
Not applicable
measures to be taken next to enhance investor returns:
Small & medium shareholders have opportunity to express opinions and demands totally and their legal
Y
rights are fully protected (Y/N):
Condition and procedures are compliance and transparent while the cash dividend policy adjusted or
Not applicable
changed (Y/N):
The Company earnings during the reporting period and profit available for distribution to shareholders from parent company is
positive but no cash dividend distribution plan has been proposed
□ Applicable □Not applicable
Profit distribution and capitalization of capital reserves during the reporting period
□Applicable □Not applicable
Number of bonus shares per 10 shares (Share) 0
Dividend payout per 10 shares (Yuan) (Tax included) 10.00
Equity base of distribution plan (Share) 977162793
Cash dividend amount(Yuan) (Tax included) 977162793.00
Cash dividend by other ways (share buy-back included) (RMB) 71917549.61
Total cash dividends(Include other ways) (Yuan) 1049080342.61
Profits available for distribution (RMB) 12253874983.95
Proportion of the total cash dividend (other ways included) in
100%
total profit distribution
Cash dividend situation this time
Other
Detail explanation on profit distribution or capitalization from capital reserves
The company's 2023 annual profit distribution plan: based on the 977162793 shares which exclude the buy-back shares on buy-
back account (25000000 A-stock) from total share capital 1002162793 shares (According to the provisions of the The
Company Law of the People's Republic of China the listed company does not have the right to participate in the profit distribution
and the conversion of the capital reserve into the share capital by repurchasing the shares held by the company through the special
securities account) distributing 10.00 yuan (tax included) cash dividend for every 10 shares held no bonus shares without
capitalization from capital reserves. The remaining undistributed profit is carried forward to the next year. The total amount of
cash dividend to be paid is 977162793 yuan (tax included). If the total share capital of the Company changes before the
implementation of the distribution plan the Company will be allocated according to the principle of unchanged distribution
proportion and adjustment of the total amount of distribution. The independent directors of the Company expressed their
50WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
independent opinions and agreed to the above proposal. The profit distribution plan will be submitted for consideration at the 2023
Annual General Meeting.XI. Implementation of the company’s stock incentive scheme employee stock ownership plan
or other employee incentives
□Applicable □Not applicable
1. Stock incentive
On October 12 2020 the Company held the 17th meeting of the 9th session of BOD 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 AssessmentManagement Measures for Restricted Stock Incentive Plan Implementation” and “Proposal to Request the Shareholders’ GeneralMeeting to Authorized BOD to Fully Handle Matters Regarding Stock Incentive”.On November 12 2020 the Company held the 21st meeting of 9th session of the BOD as authorized by the second extraordinaryshareholders’ general meeting of 2020 deliberated and approved the “Proposal on Adjusting the List of Incentive Objects of theRestricted Stock Incentive Plan and the Number of Rights Granted” and the “Proposal on the First Grant of Restricted Stocks toIncentive Objects of the 2020 Restricted Stock Incentive Plan”. The BOD considers that conditions for the initial grant of 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
82020.
On October 22 2021 the Company held the 5th meeting of 10th session of the BOD to deliberate and approve 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. 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.On December 7 2022 the Company held the 14th meeting of 10th session of the BOD and deliberated and passed the Proposal on
the Achievement of the Conditions for the Release of Restricted Shares in the First Restricted Period of the 2020 Restricted Stock
Incentive Plan the Proposal on Adjustment of the Buy-back Price on Restricted Stock Incentive Plan for year of 2020 and the
Proposal on Buy-back and Cancellation of the Restricted Stocks Partially Granted without Circulation for year of 2020. It agreed to
apply for the release of 7632000 restricted stocks granted to 581 incentive recipients and decided to buy-back and cancel 430000
restricted shares held by 23 incentive recipients that had been granted but not yet unlocked. On December 16 2022 the shares
released from this restricted sale were formally available for circulation. As of February 16 2023 the Company completed the buy-
back and cancellation procedures for the aforementioned 430000 shares at Shenzhen branch of China Securities Depository and
Clearing Co. Ltd. After this cancellation the number of incentive recipients granted for the first time by the Company's restricted
stock incentive plan in 2020 was adjusted from 590 to 568 holding 11187000 restricted stock in total.On April 26 2023 the company held the 16th meeting of the 10th session of Board of Directors and approved the Proposal on Buy-
Back and Cancellation of Partial Restricted Stocks in 2020 Restricted Stock Incentive Plan. It was decided to buy back and cancel a
total of 5593500 restricted stocks that had been granted to 568 incentive recipients but did not meet the conditions for lifting
restrictions. As of June 16 2023 the company has completed the repurchase and cancellation procedures for the above-mentioned
51WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
shares at Shenzhen Branch of China Securities Depository and Clearing Corporation Limited. After this cancellation there were 568
incentive recipients firstly granted with restricted stocks under 2020 restricted stock incentive plan holding a total of 5593500.00
shares of restricted stock.On October 23 2023 the company held the 20th meeting of the 10th session of Board of Directors and approved the Proposal on
Buy-back and Cancellation of the Restricted Stocks Partially Granted in 2020 Restricted Stock Incentive Plan. It was decided to buy
back and cancel a total of 417000 restricted stocks that have been granted to 33 incentive recipients but do not meet the conditions
for lifting restrictions. As of December 19 2023 the company has completed the buy-back and cancellation procedures for the
above-mentioned shares at the Shenzhen branch of China Securities Depository and Clearing Corporation Limited. After this
cancellation there were 535 incentive recipients firstly granted with restricted stocks under 2020 restricted stock incentive plan
holding a total of 5176500.00 shares of restricted stock.Equity incentive received by directors and senior executives
□ Applicable □ Not applicable
In share
Nu Exerci
Numb mbe se Numb
er of r of price er of
Numb Numb
new stoc of the new Grant
er of er of Numb Marke Number Number
stock k stock Number restric price
stock stock er of t value of of
option exer exerci of ted of
option exerci stock at end restricte restricte
s cise sed shares shares restric
s held sable option of the d shares d shares
Name Title grante d during unlocke grante ted
at during s held Period held at held at
d duri the d during d shares
beginn the at end (RMB beginnin end of
during ng reporti the during (RMB
ing of reporti of the /Share g of the the
the the ng period the /Share
the ng period ) period period
reporti repo period reporti )
year period
ng rting (RMB ng
period peri /Share period
od )
Wang
Xiaodon Chairman 15.07 240000 120000 15.48 120000
g
Vice
Xu
Chairman 15.07 210000 105000 15.48 105000
Yunfeng
GM
Xu
Deputy GM 15.07 168000 84000 15.48 84000
Sheng
Rong
Deputy GM 15.07 168000 84000 15.48 84000
Bin
Deputy GM
Liu
Secretary of 15.07 168000 84000 15.48 84000
Jinjun
the Board
Chief
Li Gang 15.07 168000 84000 15.48 84000
engineer
Director
Ou executive
Jianbin( vice
15.071680008400015.4884000
Leave president
office) and head of
finance
Miao
Yuming(
Deputy GM 15.07 168000 168000 15.48 0
Leave
office)
145800
Total -- 0 0 0 0 -- 0 -- 813000 0 -- 645000
0
Assessment mechanism and incentive condition of the senior executives
52WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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 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.
2. Implementation of employee stock ownership plan
□Applicable □Not applicable
3. Other employee incentives
□Applicable □Not applicable
XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
This year the Company further strictly followed the Basic Norms for Enterprise Internal Control and its supporting guidelines
starting from comprehensively strengthening the internal control of the Company and its subsidiaries combined with changes in
business scale business scope internal control measures and methods and conducted in-depth self-examination and self correction.The Company comprehensively sorted out optimized and improved the systems and processes of new business/project management
authorization management supplier and customer management contract and seal management fund management and related party
transaction management in various business areas. The Company invited external risk control experts to conduct specialized risk
control training for relevant personnel further enhanced risk control management capabilities increased the Company’s risk
assessment and control efforts at all levels and continuously promoted the construction of the Company's risk control system and
risk warning mechanism.
2. Details of major defects in internal control identified during the reporting period
□Yes □No
XIII. Management and controls on subsidiaries during the reporting period
Problems
Integration Countermeasures Resolution Follow-up
Name Integration plans encountered in
progress taken progress resolution plan
integration
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
53WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
XIV. Internal control self-assessment report or internal control audit report
1. Self-assessment Report of Internal Control
Disclosure date of full internal control assessment report 2024-04-16
For more details please refer to the Self-assessment Report of
Disclosure index of full internal control assessment report Internal Control for 2023 published on in Juchao Website
(www.cninfo.com.cn) appointed by Shenzhen Stock Exchange
The proportion of total assets of units included in the
evaluation scope to the total assets of the company's 100%
consolidated financial statements
The proportion of operating income of units included in the
evaluation scope to the operating income of the company's 100%
consolidated financial statements
Defects recognition criteria
Category Financial Reports Non-financial Reports
See details in (II) Basis for assessment of See details in (II) Basis for assessment of
internal controls and defect recognition internal controls and defect recognition
criteria of internal controls of III criteria of internal controls of III
Qualitative criteria Assessment of Internal Controls in 2023 Assessment of Internal Controls in 2023
Annual Internal Control Self-Assessment Annual Internal Control Self-Assessment
Report disclosed on www.cninfo.com.cn Report disclosed on www.cninfo.com.cn
dated April 16 2024. dated April 16 2024.See details in (II) Basis for assessment of See details in (II) Basis for assessment of
internal controls and defect recognition internal controls and defect recognition
criteria of internal controls of III criteria of internal controls of III
Quantitative standard Assessment of Internal Controls in 2023 Assessment of Internal Controls in 2023
Annual Internal Control Self-Assessment Annual Internal Control Self-Assessment
Report disclosed on www.cninfo.com.cn Report disclosed on www.cninfo.com.cn
dated April 16 2024. dated April 16 2024.Number of senior defects in financial
0
reports
Number of senior defects in non-
0
financial reports
Number of important defects in financial
0
reports
Number of important defects in non-
0
financial reports
2. Audit report of internal control
□Applicable □ Not applicable
Deliberations in Internal Control Audit Report
Audit institute considers that: according to relevant regulations and Basic Internal Control Standards for Enterprise Weifu High-
Technology Group Co. Ltd. in all major aspects keeps an efficiency of internal control of financial report dated December 31
2023.
Disclosure details of audit report of internal control Disclosed
Disclosure date of audit report of internal control (full-text) 2024-04-16
For more details please refer to the Audit Report of Internal Control
Index of audit report of internal control (full-text) for year of 2023 published on Juchao website (www.cninfo.com.cn)
appointed by Shenzhen Stock Exchange
Opinion type of auditing report of IC Standard unqualified opinions
Whether the non-financial report had major defects (Y/N) N
Carried out modified opinion for internal control audit report from CPA
□Yes □No
The internal control audit report issued by CPA has concerted opinion with self-evaluation report issued from the Board
54WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
□ Yes □ No
XV. Rectification of self-examination problems in special governance actions in listed
company
Nil
55WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Section V. Environmental and Social Responsibility
I. Major environmental issues
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department
□Yes □ No
Policies and industry standards related to environmental protection
Wuxi Weifu High-Tech Group Co. Ltd. and its subsidiaries diligently fulfill environmental protection policies and guidelines at all
levels during production and operation strictly comply with related national environmental protection laws and regulations such as
Environmental Protection Law of the People's Republic of China Environmental Impact Assessment Law of the People's Republic of
China Air Pollution Prevention and Control Law of the People's Republic of China Water Pollution Prevention and Control Law of
the People's Republic of China Solid Waste Pollution Prevention and Control Law of the People's Republic of China Noise
Pollution Prevention and Control Law of the People's Republic of China Energy Conservation Law of the People's Republic of
China Cleaner Production Promotion Law of the People's Republic of China Environmental Protection Tax Law of the People's
Republic of China Measures for the Management of Hazardous Waste Transfer Regulations on Environmental Protection of
Construction Projects Regulations on the Administration of Emission Permits as well as related local environmental protection
management rules and regulations regularly collect newly promulgated laws and regulations on ecological and environmental
protection at all levels and perform compliance evaluation transformation by combining with production reality to ensure
compliance with the law at all times in the production and operation of the Company.In the process of production the Company has constructed comprehensive waste gas and waste water treatment facilities and solid
waste storage facilities in strict accordance with the requirements of related standards such as Standards for Comprehensive Sewage
Discharge Water Quality Standards for Sewage Discharge into Urban Sewers Comprehensive Emission Standards for Air
Pollutants and Pollution Control Standards for Hazardous Waste Storage and guaranteed stable operation in an effort to minimize
the negative impact of production and operation on the ecological environment.Administrative licenses for environmental protection
All the construction projects of Wuxi Weifu High-Tech Group Co. Ltd. and its subsidiaries have been prepared with environmental
impact reports (forms) and have been approved by the local ecological and environmental authorities and all have obtained emission
permits (registrations) in accordance with the requirements of laws and regulations and the emission permits (registrations) to expire
in 2023 have been changed or renewed in a timely manner thereby effectively achieving licensed emission and legal and compliant
emission. Discharge Permit of Wuxi Weifu High-Tech Group Co. Ltd. valid period: from March 27 2023 to March 26 2028;
Discharge Permit of Nanjing Weifu Jinning Co. Ltd. valid period: From September 24 2022 to September 23 2027; Discharge
Permit of Wuxi Weifu Chang’an Co. Ltd. valid period: from December 31 2020 to December 30 2023.Industry emission standards and the specific situation of pollutant emissions involved in production and business activities
Standard
Main Name
Numb for
polluta of main Total
er of Distribut emission Excess
nts and pollutan Emission Total emissi
Company/Subs Emission emissi ion of of ive
specifi ts and concentration/st emissi ons
idiary mode on emission pollutant emissi
c specific rength ons approv
outlet outlets s on
polluta pollutan ed
s impleme
nts ts
nted
Chemical After being Chemical oxygen Water Chemica Chemic
WFMS
Water oxygen treated by the demand 48mg/l Quality l oxygen al
sewage
WFHT pollutan demand company's 1 ammonia nitrogen Standards demand oxygen NA
discharge
ts ammonia sewage 3.24mg/l total for Sewage 23.948 demand
outlet
nitrogen treatment phosphorus Discharged tons 78 tons
56WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
total station it is 0.144mg/l total into Urban ammoni ammoni
nitrogen connected to nitrogen 7.32mg/l Sewers a a
total the municipal petroleum 0.47mg/l (GB/T3196 nitrogen nitrogen
phosphor sewage pipeline 2-2015) 3.342 7.8 tons
us network for tons total
petroleu discharge total phospho
m phospho rus 0.52
rus tons
0.053 total
tons nitrogen
total 10.4
nitrogen tons
4.135 petroleu
tons m 1.95
petroleu tons
m 0.259
tons
Chemic
al
Chemica
oxygen
l oxygen
demand
demand
≤
4.515
19.0125
tons
tons
ammoni
ammoni
After being a
Chemical a
treated by the Water nitrogen
oxygen Chemical oxygen nitrogen
company's Quality 0.506
demand demand 86mg/l ≤ 1.416
sewage Standards tons
ammonia WFAC ammonia nitrogen tons
Water treatment for Sewage total
nitrogen sewage 9.64mg/l total total
WFHT pollutan station it is 1 Discharged nitrogen NA
petroleu discharge nitrogen 32.8mg/l nitrogen
ts connected to into Urban 1.722
m total outlet total phosphorus ≤
the municipal Sewers tons
nitrogen 2.84mg/l 2.2422
sewage pipeline (GB/T3196 0.149
petroleu petroleum 1mg/l tons
network for 2-2015) tons of
m total
discharge total
phospho
phospho
rus ≤
rus
0.2627
0.053
tons
tons of
petroleu
petroleu
m ≤
m
0.5935
tons
Organized 5
emissions of machining
Integrated
exhaust gas workshop
Non Emission
after being s 10 heat
Air methane Standards
adsorbed by an treatment 2.265 2.523
WFHT pollutan total 19 2.6mg/m3 for Air NA
oil mist workshop tons tons
t hydrocar Pollutants
processor and s and 4
bons (GB16297-
secondary assembly
1996)
activated workshop
carbon s
Non Organized Comprehe
4.73mg/m3
Air methane emissions of nsive
4 in 101 5.24mg/m3 0.5088 1.5529
WFHT pollutan total exhaust gas 4 Emission NA
workshop 5.53mg/m3 tons tons
t hydrocar after being Standards
5.7mg/m3
bons adsorbed by an for Air
57WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
oil mist Pollutants
processor and (GB16297-
secondary 1996)
activated
carbon
Organized
emissions of Comprehe
exhaust gas nsive
Non
after being Emission
Air methane 2 in
adsorbed by an 2.51mg/m3 Standards 0.2713
WFHT pollutan total 2 workshop NA NA
oil mist 2.2mg/m3 for Air tons
t hydrocar 103
processor and Pollutants
bons
secondary (GB16297-
activated 1996)
carbon
Organized
emissions of Comprehe
exhaust gas nsive
Non
after being Emission
Air methane 1 in
adsorbed by an Standards 0.1878
WFHT pollutan total 1 workshop 3.26mg/m3 NA NA
oil mist for Air tons
t hydrocar 104
processor and Pollutants
bons
secondary (GB16297-
activated 1996)
carbon
Organized
emissions after 1 heat
Emission
ammonia spray treatment
Standard
Air tower workshop
for Odor 0.048 0.071
WFHT pollutan Ammonia adsorption+sec 2 and 1 0.94mg/m3 NA
Pollutants tons tons
t ondary sewage
(GB14554-
activated treatment
93)
carbon station
adsorption
Integrated
Emission
Organized 2 heat
Air Standards
Particulat emissions after treatment 1.2mg/m3 0.0085 0.048
WFHT pollutan 2 for Air NA
e matter bag dust workshop 1.3mg/m3 tons tons
t Pollutants
removal s
(GB16297-
1996)
Hazardou
s waste
such as
waste oil
waste
emulsion
cleaning
Entrust a
waste Not
Solid legally Not Not 931.7 3958.2
WFHT liquid applica Not applicable NA
waste qualified unit applicable applicable tons tons
grinding ble
for disposal
wheel
ash
sewage
pre-
treatment
sludge
oily filter
58WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
cartridges
etc
Chemic
Chemica al
l oxygen oxygen
demand demand
is 6.708 35.018
tons tons
suspend suspend
Chemical After being ed solids ed
oxygen treated by the Water are 1.17 solids
Chemical oxygen
demand company's Quality tons 26.263
demand 86mg/L
ammonia sewage Standards ammoni tons
suspended solids
Water nitrogen treatment Sewage for Sewage a ammoni
15mg/L ammonia
WFCA pollutan total station it is 1 discharge Discharged nitrogen a NA
nitrogen 5.64mg/L
ts phosphor connected to outlet into Urban is 0.439 nitrogen
total phosphorus
us total the municipal Sewers tons 2.626
0.07mg/L total
nitrogen sewage pipeline (GB/T3196 total tons
nitrogen 6.01mg/L
suspende network for 2-2015) phospho total
d solids discharge rus is phospho
0.0055 rus
tons 0.438
and total tons
nitrogen and total
is 0.468 nitrogen
tons 3.502
tons
Chemica
l oxygen
After being demand
treated by the Water 7.3 tons
company's Chemical oxygen Quality ammoni
Chemical sewage demand 93mg/L Standards a
Water oxygen treatment Sewage ammonia nitrogen for Sewage nitrogen Not
WFJN pollutan demand station it is 1 discharge 17mg/L total Discharged 1.3 tons applicab NA
ts ammonia connected to outlet phosphorus 0.38 into Urban total le
nitrogen the municipal mg/L petroleum 1 Sewers phospho
sewage pipeline mg/L (GB/T3196 rus 0.03
network for 2-2015) tons
discharge petroleu
m 0.008
tons
Hazardou
s waste
such as
waste oil
oily
sludge
grinding
Entrust Not Not
Solid wheel Not Not
WFJN qualified units applica Not applicable 403 tons applicab NA
waste ash applicable applicable
for disposal ble le
empty
drums
activated
carbon
filter
cartridges
etc
59WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Treatment of pollutants
The company mainly focuses on mechanical processing and generates oil mist exhaust gas (non methane total hydrocarbons). The oil
mist exhaust gas generated in WFAC101 workshop is treated by the high-efficiency oil mist purifier and discharged into the
workshop. After being treated by the secondary activated carbon adsorption device on the roof the oil mist exhaust gas is discharged
through four 15m-high exhaust funnels; The oil mist exhaust gas generated in WFAC103 workshop is treated by an efficient oil mist
purifier and a secondary activated carbon adsorption device and then discharged through two 15m-high exhaust funnels. The oil mist
exhaust gas generated in WFAC104 workshop is treated by an efficient oil mist purifier and a secondary activated carbon adsorption
device and discharged through one 15 meter high exhaust pipe; The oil mist exhaust gas generated in the WFMS machining
workshop is treated by a high-efficiency oil mist purifier and a secondary activated carbon adsorption device and then discharged
through four 15m-high exhaust funnels; The cleaning exhaust gas (non methane total hydrocarbons) is treated by an efficient oil mist
purifier and a secondary activated carbon adsorption device and then discharged through two 15m-high exhaust funnels; Quenching
exhaust gas (non methane total hydrocarbons) is treated by an efficient oil mist purifier and discharged through three 15m-high
exhaust funnels; The test exhaust gas (non methane total hydrocarbons) is treated by an efficient oil mist purifier and discharged
through a 15m-high exhaust funnels; The shot blasting exhaust gas (particulate matter) is treated by a bag filter and discharged
through two 15m-high exhaust funnels; The waste gas (ammonia methanol non methane total hydrocarbons) generated by the
carbon nitrogen co infiltration process is treated by an acid spray tower and a secondary activated carbon adsorption device and then
discharged through a 15 meter high exhaust pipe; The carburized exhaust gas (non methane total hydrocarbons) is treated by a fire
curtain combustion and secondary activated carbon adsorption device and then discharged through six 15m-high exhaust funnels;
After being treated by a secondary activated carbon adsorption device the waste gas from drying and solidifying adhesive (non
methane total hydrocarbons tin and its compounds) is discharged through two 15m-high exhaust funnels; The waste gas (ammonia
hydrogen sulfide) from the sewage station is adsorbed and treated by dry chemical filtration media and discharged through a 15
meter high exhaust pipe. The remaining waste gas is discharged unorganized in the workshop. The company has built a
comprehensive sewage treatment station with a designed processing capacity of 1600m3/day in the WFMS plant area. After the
production wastewater is regulated by an air flotation tank it is discharged into the biochemical system of the sewage station together
with the domestic wastewater treated by septic tanks and oil separators for treatment. The treated wastewater is connected to the
municipal pipe network for standard discharge; One production wastewater treatment station with a designed processing capacity of
120m3/day and one domestic wastewater treatment station with a designed processing capacity of 200m3/day have been constructed
in the WFAC factory area. After being regulated by an air flotation tank and treated by biochemical treatment the production
wastewater is discharged together with the treated domestic wastewater into the sewage discharge outlet. The treated wastewater is
connected to the municipal pipeline network for standard discharge.WFCA has built a sewage treatment station with a designed treatment capacity of about 300m3/d in the factory. After being adjusted
by the air flotation tank the production wastewater is discharged into the biochemical system of the sewage station for treatment
together with the domestic sewage treated by septic tanks and grease traps and the treated sewage is discharged via the municipal
pipe network according to the standard.WFJN has built a set of industrial sewage treatment station with a designed treatment capacity of about 150m3/d and a domestic
sewage treatment station with a treatment capacity of about 450m3/d in the factory area. After being adjusted by the air flotation tank
the industrial wastewater will be discharged into the biochemical system of the sewage station together with the domestic sewage
treated by septic tanks and grease traps for treatment and the treated sewage will be discharged via the municipal pipe network
according to the standard.Emergency plan for environmental emergencies
The Company and its subsidiaries have compiled the Emergency Plan for Sudden Environmental Events in accordance with the
standards and specifications combined with the actual production situation of the Company and have filed it after the review
organized by relevant local departments and revised it on schedule. During the reporting period the Company carried out
comprehensive emergency plan drills and special emergency plan drills according to the annual emergency drill plan and
summarized and evaluated the drills and improved the corresponding emergency measures.
60WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Environmental self-monitoring program
During the reporting period the Company and its subsidiaries have compiled the Environmental Self-monitoring Plan for 2023 in
accordance with relevant management requirements and norms and passed the review and filing by local ecological and
environmental authorities. According to the requirements of the scheme a qualified third party agency has been entrusted to monitor
the company's waste gas waste water and noise on a regular basis. All monitoring data have been disclosed on national and local
self-monitoring platforms in accordance with the Measures for Self-monitoring and Information Disclosure of State Key Monitoring
Enterprises (Trial) and supervised by the public. The monitoring data are in line with national and local standards and there is no
excessive discharge found.The investment in environmental governance and protection and the relevant situation of paying environmental protection
tax
The Company and its subsidiaries have set up complete environmental protection treatment facilities in accordance with the
requirements of the EIA reply and the current environmental management requirements and reached the discharge standard of all air
pollutants and water pollutants. The Company has built compliant storage facilities to store solid wastes and entrusted qualified units
for disposal running at the leading level in the industry in terms of investment in environmental protection. During the reporting
period the Company and its subsidiaries have paid environmental protection taxes on a quarterly basis in accordance with the
requirements of laws and regulations.Measures to reduce carbon emissions during the reporting period and effects
□Applicable □Not applicable
Saving resources and reducing consumption is an important part of the Company's core values. On the one hand it is beneficial to
improve the efficiency of the Company but also to improve the utilization rate of resources in the whole society. Therefore the
Company continues to improve the utilization of resources through technological innovation vigorously promote energy
conservation and emission reduction and strive to achieve green production. The Company's existing main business is focused on
automobile energy saving and emission reduction. At present all the Company's main products have met the emission regulations
being implemented by the country and the Company is actively storing products that meet the requirements of more stringent
emission regulations. At the same time in recent years the Company has accelerated the promotion of green hydrogen energy
intelligent electric and other new energy business layout and development contributing to the realization of carbon peak carbon
neutral goal.Administrative penalties for environmental problems during the reporting period
The impact on the production The company’s
Company or Reason for Violation Punishment
and operation of listed rectification
subsidiary name punishment situation results
companies measures
NA NA NA NA NA NA
Other information about the environment that shall be disclosed
During the reporting period the Company and its subsidiaries have regularly filled in the implementation reports (quarterly reports
and annual reports) of pollutant discharge permits in accordance with national and local laws and regulations. All air pollutants and
water pollutants have been released in accordance with the standards and hazardous wastes have been disposed of by qualified units
and the transfer slip system has been strictly implemented.Other
Not applicable
II. Social responsibility
For details please refer to the Social Responsibility Report for Year of 2023 released by the Company on the same day on Juchao
Website (www.cninfo.com.cn)
61WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
III. Consolidating and expanding the achievements of poverty alleviation and rural
revitalization
During the reporting period the Company has actively fulfilled its social responsibilities demonstrated its commitment to the times
established a favorable corporate image and made positive contributions to the promotion of sustainable and high-quality economicand social development. In the initiative of “Ten Thousand Enterprises Linked with Ten Thousand Villages to Jointly Take the Roadof Revitalization” the Company paired up with Maohua Village in Taihua Town Yixing. The Company has integrated the
procurement of agricultural products for employee welfare and team-building activities for employees with support for the
development and revitalization of Maohua Village and has engaged in joint building and exchange activities with Maohua Village
with three batches of agricultural products from Maohua Village purchased during the year.
62WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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 reporting period
2. For assets or projects of the Company which keeps profitable forecast during the reporting period
description reasons for reaching the original profitable forecast
□ Applicable □Not applicable
II. Occupation of the non-operational funds of the listed company by controlling shareholders
and its related party
□ Applicable □ Not applicable
No non-operational funds of the listed company have been occupied by the controlling shareholders and its related party in the
reporting period.III. External guarantee out of the regulations
□ Applicable □ Not applicable
No external guarantee out of the regulations occurred in the reporting period.IV. Statement on the latest “modified audit report” by BOD
□ Applicable □ Not applicable
On April 26 2023 Gongzheng Tianye Certified Public Accountants (Special General Partnership) issued an unqualified audit report
on the company’s financial report for the year 2022 with emphasis on certain matters.
(1) Emphasize the matters involved in the paragraph
As shown in XVIII-7. Major transaction and events influencing investor’ decision the security organs have launched a criminal
investigation on the case that WFTR was defrauded by contracts in its "platform trade" business. At present the case is in the stage of
transferring for review and prosecution and the outcome of the case is uncertain in the future.
(2) Explanation of changes and disposal of the matters involved
From January 1 2023 to the disclosure date of this report RMB199235800 of other receivables received was received. In addition
the company is also fully cooperating with the public security organs in the recovery of stolen goods and damages. However as the
matter is in the stage of transferring for review and prosecution by the public security organs the company will fulfill its disclosure
obligations in a timely manner according to the progress of subsequent case investigations.
63WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
V. Explanation from Board of Directors Supervisory Committee and Independent Directors
(if applicable) for “Qualified Opinion” that issued by CPA
Applicable □ Not applicable
For details refer to the announcement disclosed by the company in Juchao Website (www.cninfo.com.cn) on the same day.VI. Explanation of the changes in accounting polices accounting estimates or correction of
significant accounting errors compared with the financial report of the previous year
□ Applicable □ Not applicable
On November 30 2022 the Ministry of Finance issued Interpretation No. 16 of the Enterprise Accounting Standards
(CK[2022]No.31) which stipulated that “deferred income tax related to assets and liabilities arising from individual transactionsshall not be subject to the accounting treatment of initial recognition exemption”. This regulation shall come into effect on January 1
2023. Our company has made corresponding changes to the accounting policy changes in accordance with the above requirements.
Please refer to “Section X. Financial Report” and “V-36 (1) Significant Accounting Policy Changes” in this report for details.VII. Comparing with last year’s financial report explain changes in the scope of consolidated
statement
□Applicable □ Not applicable
There are no changes in the scope of consolidated statement of the Company in the reporting period.VIII. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
Gongzheng Tianye Certified Public Accountants (Special
Name of domestic accounting firm
General Partnership)
Remuneration for domestic accounting firm 193
Continuous life of auditing service for domestic accounting firm 32
Name of domestic CPA Gu Zhi Zhang Qianqian
Continuous life of auditing service for domestic accounting firm Gu Zhi (3 year) Zhang Qianqian (4 year)
Re-appointed accounting firms in this reporting period
□Yes □No
Appointment of internal control auditing accounting firm financial consultant or sponsor
□ Applicable □ Not applicable
After deliberation at the 2022 Annual General Meeting of Shareholders of the Company the Company employed Gongzheng Tianye
as the Company’s internal control auditing accounting firm in 2023. The Company paid the internal control auditing accounting firm
250000 yuan during the reporting period.
IX. Particular about delisting after annual report disclosed
□ Applicable □ Not applicable
64WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
X. Bankruptcy reorganization
□ Applicable □Not applicable
No bankruptcy reorganization for the Company in the reporting period
XI. Major litigation and arbitration
□Applicable □ Not applicable
No significant litigation or arbitration matters for the company in the reporting period.XII. Penalty and rectification
□ Applicable □ Not applicable
Investigation
Disclosure
Name Type Reason and punishment Conclusion Disclosure resource
date
types
1. Inaccurate
disclosure of financial
information Jiangsu
2. Failure to fulfill Securities The Company
related party Regulatory disclosed on the
transaction review China Securities Bureau issued a Juchao Information
WFHT Other procedures and Regulatory warning letter Network
disclosure obligations Commission (Administrative (www.cninfo.com.c
March 28in accordance with takes regulatory n) “Announcement
2024
regulations administrative measures) and on Receiving a
3. No disclosure of regulatory recorded in the Warning Letter from
2022 performance measures integrity file of Jiangsu Securitiesforecast the securities Regulatory Bureau”
Wang and futures (No.2024-005)
Director
Xiaodong Failure to diligently market
Xun Yunfeng Director fulfill responsibilities
Ou Jianbin Other
Failure to disclose the Official website of
2022 performance SZSE “DecisionWFHT Other forecast in accordance on Giving Notice
with regulations in Disciplined by Circulate a of Criticism and
March 27
time the stock notice of Punishment to
2024
Wang Failure to fulfill duties exchange criticism Wuxi Weifu High
Director
Xiaodong and fulfill obligations tech Group Co.Xun Yunfeng Director of honesty and Ltd. and relativeOu Jianbin Other diligence objects”
Explanation of rectification situation:
□ Applicable □ Not applicable
After receiving the warning letter from Jiangsu Securities Regulatory Bureau the Company attaches great importance to it earnestly
learns from its lessons strengthens the study of relevant laws and regulations normative documents strengthens information
disclosure management improves the level of standardized operation and prevents such incidents from happening again. The
Company and relevant personnel have submitted a written rectification report to the Jiangsu Securities Regulatory Bureau as required.
65WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
XIII. Integrity of the Company its controlling shareholders and actual controllers
□ Applicable □ Not applicable
XIV. Major related party transaction
1. Related party transaction involved with daily operation
□Applicable □ Not applicable
Wheth
er
Conte Related Cleari
Type Relate Propor Trading over Availa
nt of party ng
of Pricin d tion in limit the ble
Relate Relati relate transactio form Date of Index of
relate g party simila approve appro simila
d onshi d n amount for disclosu disclosu
d princi transa r d (in 10 ved r
party p party (in 10 related re re
transa ple ction transa thousan limite marke
transa thousand transa
ction price ctions d yuan) d or t price
ction yuan) ction
not
(Y/N)
Procu Procu
remen remen Fair Accor Announ
Assoc
t of t of marke ding cement
WFP iated Marke Marke 2023-
goods goods t 4166.98 0.46% 5600 N to the No.:
M enterp t price t price 04-28
rise and and pricin contra 2023-
servic servic g ct 017
es es
Assoc
iated
enterp
rise Procu Procu
contro remen remen Fair Accor Announ
lling t of t of marke ding cement
RBC subsid Marke Marke 2023-
goods goods t 26696.50 2.97% 38000 N to the No.:
D iary t price t price 04-28
of and and pricin contra 2023-
Rober servic servic g ct 017
t es es
Bosch
Comp
any
Procu Procu Announ
Joint remen remen Fair Accor cement 2023-
ventur t of t of marke ding No.:
WFE Marke 10.61 Marke 04-28
e of goods goods t 95532.57 105100 N to the 2023-
C
WFL t price % t price 2023-and and pricin contra 017、
D 11-16 servic servic g ct 2023-
es es 053
Secon
d Procu Procu
Rober larges remen remen Fair Accor Announ
t t t of t of marke ding cement
Marke Marke 2023-
Bosch shareh goods goods t 19940.45 2.22% 30000 N to the No.:
t price t price 04-28
Comp older and and pricin contra 2023-
any of the servic servic g ct 017
Comp es es
any
Chang Joint Procu Procu Fair Accor Announ
Marke Marke 2023-
chun ventur remen remen marke 0 0.00% 150 N ding cement
Xuya e of t price t price 04-28 t of t of t to the No.:
66WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
ng WFL goods goods pricin contra 2023-
D and and g ct 017
servic servic
es es
Holdi
Procu Procu
ng
subsid remen remen Fair Accor
Guok iary t of t of marke ding
Marke Marke
ai of goods goods t 1586.70 0.18% 0 Y to the
Metal Wuxi t price t price and and pricin contra
Indust servic servic g ct
ry
es es
Group
Procu Procu
remen remen Fair Accor Announ
Assoc
Lezhu t of t of marke ding cement
iated Marke Marke 2023-
o goods goods t 0 0.00% 100 N to the No.:
enterp t price t price 04-28
Bowei and and pricin contra 2023-
rise
servic servic g ct 017
es es
Holdi
ng
comp
any of Procu Procu
Wuxi remen remen Fair Accor
FALC Indust t of t of marke ding
Marke Marke
ONT ry goods goods t 5.06 0.00% 0 Y to the
t price t price
ECH Devel and and pricin contra
opme servic servic g ct
nt es es
Group
Co.Ltd.Holdi
ng
comp
any of Procu Procu
Wuxi remen remen Fair Accor
Indust t of t of marke ding
Marke Marke
HLA ry goods goods t 51.53 0.01% 0 Y to the
t price t price
Devel and and pricin contra
opme servic servic g ct
nt es es
Group
Co.Ltd.Sales Sales
Fair Accor Announ
Assoc of of
marke ding cement
WFP iated goods goods Marke Marke 2023-
t 53.22 0.00% 500 N to the No.:
M enterp and and t price t price 04-28
rise pricin contra 2023-servic servic
g ct 017
es es
Assoc
iated Sales Sales Fair Accor Announ
enterp of of
marke ding cement
RBC rise goods goods Marke 167373.4 15.09 Marke 2023-
t 300000 N to the No.:
D contro and and t price 3 % t price 04-28
lling pricin contra 2023-servic servic
subsid g ct 017
es es
iary
67WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
of
Rober
t
Bosch
Comp
any
Sales Sales
Joint Fair Accor Announof of
ventur marke ding cement
WFE goods goods Marke Marke 2023-
e of t 729.04 0.07% 900 N to the No.:
C
WFL and and t price t price 04-28 pricin contra 2023-
D servic servic g ct 017
es es
Secon
d
Sales Sales
Rober larges Fair Accor Announ
of of
t t marke ding cement
goods goods Marke 186872.8 16.85 Marke 2023-
Bosch shareh t 219305 N to the No.:
and and t price 0 % t price 04-28
Comp older pricin contra 2023-
servic servic
any of the g ct 017
es es
Comp
any
Sales Sales
Joint Fair Accor Announ
Chang of of
ventur marke ding cement
chun goods goods Marke Marke 2023-
e of t 101.12 0.01% 500 N to the No.:
Xuya and and t price t price 04-28
WFL pricin contra 2023-
ng servic servic
D g ct 017
es es
Sales Sales
Fair Accor Announ
Assoc of of
Lezhu marke ding cement
iated goods goods Marke Marke 2023-
o t 969.54 0.09% 2000 N to the No.:
enterp and and t price t price 04-28
Bowei pricin contra 2023-
rise servic servic
g ct 017
es es
Procu Fair Accor Announ
Assoc
remen marke ding cement
WFP iated Other Marke Marke 2023-
t of t 18.60 200 N to the No.:
M enterp s t price t price 04-28
rise fixed pricin contra 2023-
assets g ct 017
Assoc
iated
enterp
rise Payab
contro le Fair Accor Announ
lling
techni marke ding cement
RBC subsid Other Marke Marke 2023-
cal t 0 50 N to the No.:
D iary s t price t price 04-28
of servic pricin contra 2023-
Rober e fees g ct 017
t etc
Bosch
Comp
any
Assoc
Paym
iated
enterp ent of Fair Accor Announ
rise techni
marke ding cement
RBC contro Other cal Marke Marke 2023-
t 0 150 N to the No.:
D lling s comm t price t price 04-28
subsid pricin contra 2023-ission
iary g ct 017
fees
of
Rober etc
68WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
t
Bosch
Comp
any
Assoc
iated
enterp
rise
contro Procu Fair Accor Announ
lling
remen marke ding cement
RBC subsid Other Marke Marke 2023-
t of t 28.32 450 N to the No.:
D iary s t price t price 04-28
of fixed pricin contra 2023-
Rober assets g ct 017
t
Bosch
Comp
any
Assoc
iated
enterp
rise
contro Provi Fair Accor Announ
lling de marke ding cement
RBC subsid Other techni Marke Marke 2023-
t 0 250 N to the No.:
D iary s cal t price t price 04-28
of pricin contra 2023-servic
Rober g ct 017
es etc
t
Bosch
Comp
any
Assoc
iated
enterp
rise
contro Fair Accor Announ
lling Recei
marke ding cement
RBC subsid Other vable Marke Marke 2023-
t 23.40 0 Y to the No.:
D iary s lease t price t price 04-28
of pricin contra 2023-fees
Rober g ct 017
t
Bosch
Comp
any
Secon
Paym
d
ent of
Rober larges Fair Accor Announ
techni
t t marke ding cement
Other cal Marke Marke 2023-
Bosch shareh t 251.75 300 N to the No.:
s comm t price t price 04-28
Comp older pricin contra 2023-
ission
any of the g ct 017
fees
Comp
etc
any
Secon
d
Rober larges Procu Fair Accor Announ
t t remen marke ding cement
Other Marke Marke 2023-
Bosch shareh t of t 2033.73 1000 N to the No.:
s t price t price 04-28
Comp older fixed pricin contra 2023-
any of the assets g ct 017
Comp
any
69WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Secon
d
Rober larges Fair Accor Announ
Recei
t t marke ding cement
Other vable Marke Marke 2023-
Bosch shareh t 0 250 N to the No.:
s lease t price t price 04-28
Comp older pricin contra 2023-
fees
any of the g ct 017
Comp
any
Secon
d
Recei
Rober larges Fair Accor Announ
vable
t t marke ding cement
Other kineti Marke Marke 2023-
Bosch shareh t 0 80 N to the No.:
s c t price t price 04-28
Comp older pricin contra 2023-
energ
any of the g ct 017
y fees
Comp
any
Secon
d
Provi
Rober larges Fair Accor Announ
de
t t marke ding cement
Other techni Marke Marke 2023-
Bosch shareh t 260.14 400 N to the No.:
s cal t price t price 04-28
Comp older pricin contra 2023-
servic
any of the g ct 017
es
Comp
any
Secon
d
Payab
Rober larges Fair Accor
le
t t marke ding
Other techni Marke Marke
Bosch shareh t 1006.67 0 Y to the
s cal t price t price
Comp older pricin contra
servic
any of the g ct
e fees
Comp
any
Payab
Joint Fair Accor Announle
ventur marke ding cement
WFE Other techni Marke Marke 2023-
e of t 3.34 20 N to the No.:
C
WFL s cal t price t price 04-28 pricin contra 2023-
D servic g ct 017
e fees
Provi
Joint Fair Accor Announde
ventur marke ding cement
WFE Other techni Marke Marke 2023-
e of t 0 30 N to the No.:
C
WFL s cal t price t price 04-28 pricin contra 2023-
D servic g ct 017
es
Joint Fair Accor AnnounRecei
ventur marke ding cement
WFE Other vable Marke Marke 2023-
e of t 200.66 250 N to the No.:
C
WFL s lease t price t price 04-28 pricin contra 2023-
D fees g ct 017
Joint Payab Fair Accor Announ
ventur
WFE Other le marke Marke ding Marke 2023- cement
e of 121.76 150 N
C
WFL s kineti t t price to the t price 04-28 No.:
D c pricin contra 2023-
70WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
energ g ct 017
y fees
Joint Fair AccorSales
ventur marke ding
WFE Other of Marke Marke
e of t 25.3 0 Y to the
C
WFL s fixed t price t price pricin contra
D asset g ct
Fair Accor Announ
Assoc Recei
Lezhu marke ding cement
iated Other vable Marke Marke 2023-
o t 271.59 250 N to the No.:
enterp s lease t price t price 04-28
Bowei pricin contra 2023-
rise fees
g ct 017
Recei
Fair Accor Announ
Assoc vable
Lezhu marke ding cement
iated Other kineti Marke Marke 2023-
o t 0.00 80 N to the No.:
enterp s c t price t price 04-28
Bowei pricin contra 2023-
rise energ
g ct 017
y fees
Provi
Fair Accor
Assoc de
Lezhu marke ding
iated Other techni Marke Marke
o t 11.03 0 Y to the
enterp s cal t price t price
Bowei pricin contra
rise servic
g ct
es
Holdi
Procu
Urban ng
remen Fair Accor
public comp
t of marke ding
delive any of Other Marke Marke
cafete t 207.41 0 Y to the
ry Wuxi s t price t price
ria pricin contra
Holdi Indust
ingred g ct
ng ry
ients
Group
The
Provi
parent Fair Accor
Wuxi de
comp marke ding
Indust Other techni Marke Marke
any of t 16.06 0 Y to the
ry s cal t price t price
the pricin contra
Group servic
WFH g ct
es
T
Holdi
ng
Procu Fair Accor
comp
remen marke ding
Wuxi any of Other Marke Marke
t of t 60.22 0 Y to the
IoT Wuxi s t price t price
fixed pricin contra
Indust
assets g ct
ry
Group
508618.9
Total -- -- -- 706065 -- -- -- -- --
2
Detail of sales return with major
Not applicable
amount involved
Deliberated and approved by 2022 general meeting of shareholders of the Company it is estimated that
Report the actual implementation the total amount of daily related party transactions for the year 2023 will be 7060.65 million yuan and
of the daily related transactions the actual total amount of daily related party transactions during the reporting period is
which were projected about their 5086189200yuan. By category it is expected that the amount of goods and services purchased from
total amount by types during the related parties in 2023 will not exceed 1789.50 million yuan and the actual amount incurred during the
reporting period (if applicable)
reporting period is 1479797900 yuan; 2. It is expected that the sales of goods and services to related
parties in 2023 will not exceed 5232.05 million yuan and the actual amount incurred during the
71WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
reporting period is 3560991500 yuan; 3. It is expected that other related party transactions with
related parties in 2023 will not exceed 39.10 million yuan and the actual amount incurred during the
reporting period is 45399800 yuan.Reasons for major differences
between trading price and market Not applicable
reference price (if applicable)
2. Related party transactions of assets or acquisition and sold
□ Applicable □ Not applicable
No related party transactions of assets or equity acquisition and sold occurred during the reporting period
3. Related party transactions of mutual investment outside
□ Applicable □Not applicable
No related party transactions of mutual investment outside occurred during the reporting period.
4. Contact of related party credit and debt
□Applicable □ Not applicable
Is there any non operating related debt and debt transaction
□ Yes □No
Receivable debt from related parties
Is there
Beginnin Amount
any Increase Interest in Ending
Related g received
Related Cause of occupatio in current Interest current balance(’
relationsh balance(’ in current
party formation n of non period(’0 rate period(’0 0000
ip 0000 period(’0
operating 000 yuan) 000 yuan) yuan)
yuan) 000 yuan)
funds
Company
controlled
by the
older
Hebei
brother of
Machiner - -
the
y and its 212548.7 212548.7
former
related 8 8
director/s
parties
enior
managem "platform
ent of the trade" N
company business
Hebei 201522.4 195847.0
5675.38
Jinda 3 5
Companie
Hebei s 143675.7 143675.7
Deshuang controlled 2 2
Hebei by Hebei
Machiner 60940.49 60940.49 Lanpai
y
Hebei
47925.3347925.33
Mianzhuo
72WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
241515.1235839.8
Total 5675.38
91
For details on the impact on the company's operating results and financial
The impact of related debt on the Company's
condition please refer to the description of ""Provision for expected credit
operating results and financial condition
losses on other receivables formed by “platform trade” business"”
Note1: Hebei Machinery refers to Hebei Machinery Import and Export Co. Ltd. Hebei Jinda refers to Hebei Jinda Import and
Export Co. Ltd. Hebei Lanpai refers to Hebei Lanpai Technology Co. Ltd. Hebei Mianzhuo refers to Hebei Mianzhuo
Electromechanical Equipment Sales Co. Ltd. Hebei Deshuang refers to Hebei Deshuang Trading Co. Ltd.Note2: According to the principle of substance over form the company did not treat Weifu International Trade's "platform trade"
business as a normal trade business but accounted for it as a fund receipt and payment. Because Hebei Jinda Hebei Deshuang Hebei
Lanpai and Hebei Mianzhuo are controlled by Hebei Machinery based on the business essence of "platform trade" business WFTR
listed the difference between the "purchase payment" paid by WFTR to Hebei Jinda Hebei Deshuang Hebei Lanpai and Hebei
Mianzhuo based on "platform trade" business and the "sales payment" received from Hebei Machinery 2358398084.78 yuan as
other receivables including: The "sales payment" received from Hebei Machinery is presented as a negative number. As of
December 31 2023 the Company has made a bad debt provision of 1448358922.04 yuan for the balance of other receivables; The
bad debt provision balance is calculated by 80.10% which is the proportion of other receivables balance of Hebei Machinery and its
controlled companies 2415151888.80 yuan to other receivables balance of WFTR's "platform trade" business portfolio
2741499131.95 yuan as of December 31 2022 multiply the bad debt provision for other accounts receivable balances in WFTR’s
"platform trade" business portfolio 1644068，327.93 yuan.
5. Contact with the related finance companies
□ Applicable □ Not applicable
There are no deposits loans credits or other financial business between the finance companies with associated relationship 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
There were no other significant related party transactions during the reporting period of the company.XV. Significant contract and implementations
1. Trusteeship contract and leasing
(1) Trusteeship
□ Applicable □ Not applicable
No trusteeship occurred during the reporting period
73WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
(2) Contracting
□ Applicable □ Not applicable
No contract occurred during the reporting period
(3) Leasing
□ Applicable □ Not applicable
No leasing occurred during the reporting period
2. Significant guarantee
□ Applicable □ Not applicable
In ten thousand yuan
The Company’ guarantee towards subsidiaries
Disclosu
re date
of
Actual Guarant
announc Guara Count
Name of Actual guaran Fulfill eed by
ement nteed Guarant Collat er
guarante occurring teed Guarantee period ed or related
related amou ee type eral Guara
ed object date amoun not parties
to the nt ntee
t or not
guarante
ed
amount
From the date of
execution of the main
contract up to the two
years from the date of
Joint expiry of the
2022-12- 2022-12- liability performance period of
VHWX 1000 1000 N N N N
09 12 guarante the obligations under
e the main contract or
December 30 2026
(inclusive whichever is
the earlier)
Joint Three years from the
2023-04- 5500 2023-07- liability date of receipt of the
VHIO 7784 N N N N
28 0 13 guarante guarantee by the Italian
e tax bureau
To be individually
calculated according to
each financing provided
Wuxi
by the creditor to the
Weifu
Joint debtor under the main
Autosma
2023-04- 2023-08- liability contract for each
rt 4000 462 N N N N
28 26 guarante financing the guarantee
Seating
e period is three years
System
from the expiration date
Co. Ltd.of the debt performance
period under that
financing
VHIO 2023-04- 5500 2023-11- 5309 Joint N N Six months from the N N
74WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
28 0 16 liability maturity date of each
guarante guaranteed debt but no
e later than June 30 2028
Approved total guaranteed amount towards the Total actual amount occurred towards subsidiaries
8400013555
subsidiaries within the reporting period （B1） within the reporting period （B2）
Approved total guaranteed amount towards the Total actual guarantee balance towards subsidiaries at
8500014555subsidiaries at the year end B3） the year end （B4）
Guarantee of subsidiaries to subsidiaries
Total amount of the company’s guarantee(total of the top three)
Total actual
Approved total
guaranteed
amount guaranteed
amount occurred
within the reporting 84000 13555
within the
period
reporting period
（A1+B1+C1）
（A2+B2+C2）
Approved total Actual total
amount guaranteed guarantee balance
8500014555
at the year end at the year end
（A3+B3+C3） （A4+B4+C4）Proportion of actual total guaranteed
0.75%
amount (A4+B4+C4) to net assets
Including:
Explanation of situations where there is
guarantee liability or evidence indicating
the possibility of joint and several
(Not involved)
repayment liability for unexpired guarantee
contracts during the reporting period (if
any)
Explanation of providing guarantees to
external parties in violation of prescribed (Not involved)
procedures (if any)
Specific description for using the guarantee by complex method: Nil
3. Trusted cash asset management
(1) Trust financing
□ Applicable □ Not applicable
Trust financing during the reporting period
In ten thousand yuan
Amount with impairment accrued for the
Capital Amount Outstanding Overdue
Type overdue financial products which has not
sources occurred balance amount
been recovered
Bank financial
Own funds 78450 64000 0 0
products
Securities financial
Own funds 77000 42000 0 0
products
Trust financial
Own funds 126550 42054 0 0
products
Other type Own funds 114231 92712 0 0
Total 396231 240766 0 0
75WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Details of the single major amount or high-risk trust investment with low security poor fluidity
□ Applicable □ Not applicable
In ten thousand yuan
Trustee Trustee Type Amo So Sta En Ca Criteria Referen Anticipate Actual Actual Amou Wheth Whethe Summa
instituti type unt urc rt d pit for ce d income gains/lo collecte nt of er r has ry of
on r e dat dat al fixing annual (if sses in d reserv appro entrust the
name of e e inv reward rate of applicable period gains/lo e for ved by finance items
fun est return ) sses in devalu legal plan in and
ds me period ation proce the related
nt of dure future query
pur withdr (Y/N) index
pos awing (if
e (if applica
applic ble)
able)
2023-
Str Referen Referen
04-
uct ce ce
Guarant O 20 20 28(Ann
ure annual annual
eed 8780 wn 23- 24- 2.60%- ouncem
Bank Bank d rate of 853.42 275.87 rate of Yes Yes
floating 0 fun 01- 04- 2.91% ent
de return return
income d 10 01 No.:202
pos by the by the
3-
its contract contract
018）
Ca
sh 2023-
Referen Referen
ma 04-
Non- ce ce
O 20 20 na 28(Ann
guarant annual annual
7567 wn 23- 23- ge 2.00%- ouncem
Bank Bank eed rate of 165.68 183.83 rate of Yes Yes
0 fun 02- 12- me 2.5% ent
floating return return
d 02 29 nt No.:202
income by the by the
pro 3-
contract contractdu 018）
cts
As
set
Ma
na
ge
2023-
me Referen Referen
04-
Non- nt ce ce
O 20 20 28(Ann
guarant Pla annual annual
Securiti Securiti 2500 wn 23- 25- 9.00%- 4019.4 ouncem
eed n rate of 7219.38 rate of Yes Yes
es es 0 fun 01- 02- 15.9% 3 ent
floating be return return
d 06 10 No.:202
income nef by the by the
3-
ici contract contract
018）
ary
Ce
rtif
ica
te
Co 2023-
Referen Referen
lle 04-
Non- ce ce
O 20 20 cti 28(Ann
guarant annual annual
4000 wn 23- 23- ve 3.40%- 4374.1 ouncem
Trust Trust eed rate of 107.4 rate of Yes Yes
0 fun 02- 03- tru 3.70% 3 ent
floating return return
d 09 31 st No.:202
income by the by the
pla 3-
contract contractn 018）
Other Other Non- O Pri Referen 2.60%- 608.44 Referen Yes Yes 2023-
76WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
guarant wn vat ce 2.91% ce 04-
eed fun e annual annual 28(Ann
floating d eq rate of rate of ouncem
income uit return return ent
y by the by the No.:202
fun contract contract 3-d 018）
pro
du
cts
2284
Total -- -- -- -- -- -- 8345.88 9461.7 -- -- -- --
70
It is expected that the principal of entrusted financial management fails to recover or there are other situations leading to impairment
in entrusted financial management
□ Applicable □ Not applicable
(2) Entrusted loans
□ Applicable □ Not applicable
The company had no entrusted loans in the reporting period.
4. Other significant contract
□ Applicable □ Not applicable
The company had no other significant contract in the reporting period.XVI. Explanation on other material matters
□Applicable Not applicable
There are no other significant matters that need to be explained during the reporting period of the company.XVII. Material matters of subsidiary of the Company
Applicable □ Not applicable
On April 13 2023 the company disclosed the Announcement on the Receipt of Case Registration Notice and Major Risk Warning
from Public Security Organs by the Company’s wholly-owned Subsidiary WFTR. At present the case is in the the stage of
transferring for review and prosecution.
77WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Section VII. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
Before the change Change during the year(+/-)) After the change
Public
New
Bon reserve
sharProporti us transfer Proporti
Amount es Other Subtotal Amount
on shar into on issu
es share
ed
capital
I. Restricted shares 12021836.00 1.19% -6370606.00 -6370606.00 5651230.00 0.56%
1. State-owned shares
2. State-owned legal
person’s shares
3. Other domestic
12021836.001.19%-6370606.00-6370606.005651230.000.56%
shares
Including: Domestic
legal person’s shares
Domestic natural
12021836.001.19%-6370606.00-6370606.005651230.000.56%
person’s shares
4. Foreign shares
Including: Foreign legal
person’s shares
Foreign natural person’s
shares
II. Unrestricted shares 996581457.00 98.81% -69894.00 -69894.00 996511563.00 99.44%
1. RMB ordinary shares 824201457.00 81.72% -69894.00 -69894.00 824131563.00 82.24%
2. Domestically listed
172380000.0017.09%172380000.0017.20%
foreign shares
3. Overseas listed
foreign shares
4. Others
III. Total shares 1008603293.00 100.00% -6440500.00 -6440500.00 1002162793.00 100.00%
Reasons for share changed
□Applicable □Not applicable
1. During the reporting period the Company bought back and canceled a total of 6440500 shares of restricted stock that had been
granted but not unlocked in three installments resulting in changes in stocks subjects to limited sales conditions;
2. During the reporting period some directors supervisors and senior executives of the company underwent adjustments resulting in
changes in the lock in shares of senior executives leading to changes in stocks subject to limited and unlimited sales conditions.Approval status of share changes
□Applicable □Not applicable
1. On December 7 2022 the Company held the 14th meeting of the 10th session of the Board of Directors deliberated and approved
the Proposal on Buy-back and Cancellation of 2020 Partially Restricted Stocks that Have Been Granted but Not Unlocked. It was
agreed to buy back and cancel 430000 shares of restricted stocks held by 23 incentive recipients that have been granted but not yet
78WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
unlocked. As of February 16 2023 the company has completed the repurchase and cancellation procedures for the above-mentioned
shares at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.
2. On April 26 2023 the Company held the 16th meeting of the 10th session of Board of Directors and approved the Proposal on
Buy-back and Cancellation of Partial Restricted Stocks under 2020 Restricted Stock Incentive Plan. It was agreed to buy back and
cancel a total of 5593500 restricted stocks that had been granted to 568 incentive recipients but did not meet the conditions for
lifting restrictions. As of June 16 2023 the company has completed the buy-back and cancellation procedures for the above-
mentioned shares at the Shenzhen branch of China Securities Depository and Clearing Corporation Limited.
3. On October 23 2023 the Company held the 20th meeting of the 10th session of the Board of Directors and approved the Proposal
on Repurchase and Cancellation of Partial Restricted Stocks and Adjustment of Buy-back Prices. It agreed to buy-back and cancel
417000 shares of restricted stocks held by 33 incentive recipients that have been granted but not yet unlocked. As of December 18
2023 the company has completed the buy-back and cancellation procedures for the above-mentioned shares at the Shenzhen branch
of China Securities Depository and Clearing Corporation Limited.
4. On May 27 2023 the Company disclosed a notice on the retirement and resignation of senior management personnel. Mr. Miao
Yuming applied to resign from the position of deputy GM of the company due to reaching the statutory retirement age. According to
relevant regulations the resignation report took effect from the date of delivery to the company's board of directors.
5. On June 1 2023 the Company held the 17th meeting of the 10th Board of Directors and approved the Proposal on Appointment of
Deputy General Manager and Proposal on the by-election of non-independent directors. It was agreed to appoint Mr. Feng Zhiming
as the deputy GM of the company and to elect him as the non-independent director of the 10th session of the Board of Directors. On
June 19 2023 the company held its first extraordinary general meeting of shareholders deliberated and approved the Proposal on the
By-election of Non-independent Directors.Ownership transfer of share changed
□Applicable □Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and the reporting period
□ Applicable □ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable □ Not applicable
2. Changes of lock-up stocks
□Applicable □Not applicable
In Share
Restricted
Opening shares Shares Ending
Shareholders shares increased released in shares Restricted reasons Date for released
restricted in the Period restricted
Period
Lock-up shares held by senior
Wang
315586 120000 195586 executives and Restricted Stock June 16 2023
Xiaodong
Incentive Plan for year of 2020
Lock-up shares held by senior
Xu Yunfeng 272250 105000 167250 executives and Restricted Stock June 16 2023
Incentive Plan for year of 2020
Lock-up shares held by senior
Feng Zhiming 48894 48894 NA
executives
Lock-up shares held by senior
Ou Jianbin 217500 84000 133500 June 16 2023
executives and Restricted Stock
79WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Incentive Plan for year of 2020
Lock-up shares held by senior June 16 2023
Miao Yuming 217500 21000 168000 70500
executives December 18 2023
Lock-up shares held by senior
Rong bin 210000 84000 126000 executives and Restricted Stock June 16 2023
Incentive Plan for year of 2020
Lock-up shares held by senior
Liu Jinjun 210000 84000 126000 executives and Restricted Stock June 16 2023
Incentive Plan for year of 2020
Lock-up shares held by senior
Li Gang 210000 84000 126000 executives and Restricted Stock June 16 2023
Incentive Plan for year of 2020
Lock-up shares held by senior
Xu Sheng 210000 84000 126000 executives and 2020 Restricted June 16 2023
Stock Incentive Plan
February 16 2023
Middle Restricted Stock Incentive Plan
10159000 5627500 4531500 June 16 2023
management for the year 2020
December 18 2023
Total 12021836 69894 6440500 5651230 --
Note: In the aforesaid table shares released in this reporting period refer to the number of granted but not released
from restricted sales which were bought back and canceled by the Company.II. Securities issuance and listing
1. Security offering (without preferred stock) in the Reporting Period
□ Applicable □ Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets and
liability structure
□ Applicable □ Not applicable
During the reporting period the Company has repurchased and cancelled 6440500 shares of 2020 restricted stock that have been
granted but not unlocked. Total share capital of the Company comes to 1002162793 shares from 1008603293 shares.
3. Current internal staff shares
□ Applicable □ Not applicable
III. Particulars about shareholders and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
In Share
Total Total
common preference Total preference
stock shareholders shareholders with voting
Total common stock
sharehol with voting rights recovered at end of
shareholders in 65078 64523 0 0
ders at rights last month before annual
reporting period-end
end of recovered at report disclosed (refer to
last end of Note 8)
month reporting
80WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
before period (refer
annual to Note 8)
report
disclose
d
Particulars about shares held above 5% by shareholders or top ten shareholders
Information of
Proporti Total Number
Nature of Changes in Amount of shares pledged
Full name of on of shareholders of lock-up
sharehold report un-lock up tagged or frozen
Shareholders shares at the end of stocks
er period stock held State of Amou
held report period held
share nt
Wuxi Industry State-
Not
Development Group owned 20.36% 204059398 0 0 204059398 0
Co. Ltd. corporate applicable
ROBERT BOSCH Foreign Not
14.25%142841400001428414000
GMBH corporate applicable
Hong Kong
Foreign Not
Securities Clearing 1.77% 17702321 -1960917 0 17702321 0
corporate
Company applicable
Not
NSSF-413 Other 1.02% 10230000 120000 0 10230000 0
applicable
Basic Pension
Not
Insurance Fund- Other 0.76% 7641693 3117337 0 7641693 0
1003 applicable
FIDELITY INVMT
TRT FIDELITY Foreign Not
0.72%7210386347000072103860
INTL SMALL CAP corporate applicable
FUND
BBH BOS S/A
Foreign Not
FIDELITY FD - 0.70% 7053913 -6952402 0 7053913 0
corporate applicable
CHINA FOCUS FD
Guolian An Fund -
China Pacific Life
Insurance Co. Ltd.- Dividend
Insurance - Guolian
Not
An Fund - China Other 0.69% 6887979 3885265 0 6887979 0
applicable
Pacific Life Stock
Relative Yield
(Dividend) Single
Asset Management
Plan
Tianan Life
Insurance Co. Ltd. Not
Other 0.52% 5257824 5257824 0 5257824 0
- Traditional applicable
Products
Domestic
Not
Xie Zuogang natural 0.51% 5132967 0 0 5132967 0
applicable
person
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. the first largest shareholder of the Company and other
relationship among the aforesaid shareholders; and they do not belong to the persons acting in concert regulated by the
shareholders Management Measure of Information Disclosure on Change of Shareholding for Listed
Company.Description of the above
N/A
shareholders in relation to
81WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
delegate/entrusted voting rights
and abstention from voting rights.Special note on the repurchase As of Dec. 31 2023 the repurchase special securities account of Weifu High-Technology
account among the top 10 Group Co. Ltd has 25000000 shares of ordinary A-Share hereby stated that in accordance
shareholders (refer to Note 10) with relevant requirement they are not included in the top 10 shareholders of the Company.Particular about top ten shareholders with un-lock up stocks held
Amount of un-lock up Shares held
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 foreign 27580800
shares
RMB common
Hong Kong Securities Clearing Company 17702321 17702321
shares
RMB common
NSSF-413 10230000 10230000
shares
RMB common
Basic Pension Insurance Fund- 1003 7641693 7641693
shares
Domestically
FIDELITY INVMT TRT FIDELITY INTL SMALL CAP FUND 7210386 listed foreign 7210386
shares
Domestically
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 7053913 listed foreign 7053913
shares
Guolian An Fund - China Pacific Life Insurance Co. Ltd. -
RMB common
Dividend Insurance - Guolian An Fund - China Pacific Life Stock 6887979 6887979
shares
Relative Yield (Dividend) Single Asset Management Plan
RMB common
Tianan Life Insurance Co. Ltd. - Traditional Products 5257824 5257824
shares
Domestically
Xie Zuogang 5132967 listed foreign 5132967
shares
Among the aforesaid shareholders there has no associated relationship between
Expiation on associated relationship or Wuxi Industry Development Croup Co. Ltd. the first lagest shareholder of the
consistent actors within the top 10 un-lock up
Company and other shareholders; and they do not belong to the persons acting in
shareholders and between top 10 un-lock up
shareholders and top 10 shareholders concert regulated by the Management Measure of Information Disclosure on
Change of Shareholding for Listed Company.Explanation on top 10 shareholders involving
NA
margin business (if applicable) (refer to note 4)
The top 10 shareholders participating in the lending of shares through refinancing business
□Applicable □ Not applicable
Changes in top 10 shareholders compared to last reporting period
□Applicable □ Not applicable
Unit: share
Changes in top 10 shareholders compared to last period
The number of shares held in
At the end of the period
New/Exiting the ordinary account and credit
the number of shares
Full name of shareholders shareholder in account of shareholders at the
lent through refinancing
current period end of the period as well as the
and not yet repaid
shares lent through refinancing
82WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
and not yet repaid
Ratio in Ratio in
Total quantity total Total quantity total
shares shares
Guolian An Fund - China Pacific Life Insurance
Co. Ltd. - Dividend Insurance - Guolian An Fund - New
00.00%00.00%
China Pacific Life Stock Relative Yield (Dividend) shareholder
Single Asset Management Plan
Tianan Life Insurance Co. Ltd. - Traditional New
00.00%00.00%
Products shareholder
Shanghai Chongyang Strategic Investment Co. Exiting
00.00%00.00%
Ltd. - Chongyang Strategic Yingzhi Fund shareholder
Exiting
Fei Guohua 0 0.00% 0 0.00%
shareholder
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.
2. Controlling shareholder of the Company
Nature of controlling shareholders: local state-owned holding
Type of controlling shareholders: legal person
Controlling Legal person/person
Date of foundation Organization code Main operation business
shareholders in charge of the unit
External investment
with own funds;
housing rental services;
self-operation and
acting as an agent for
the import & export of
various commodities
Wuxi Industry
and technologies
Development Group Yao Zhiyong 1995-10-05 913202001360026543
(except for commodities
Co. Ltd.and technologies that
restricted or prohibited
for import & export by
the State) domestic
trading (restricted and
prohibited projects by
the State excluded)
Equity of other 1. The majority shareholder of the Company Wuxi Industry Group is the controlling shareholder of
Wuxi Taiji Industry Corporation Limited (stock code: 600667) and hold 30.42% stakes of the latter.domestic/oversea listed
2. The majority shareholder of the Company Wuxi Industry Group directly holds 15.65% stakes of
company controlled by
Wuxi New Hongtai Electrical Technology Co. Ltd. (Stock Code: 603016) and indirectly holds
the controlling
12.26% stakes of Wuxi New Hongtai Electrical Technology Co. Ltd. (Stock Code: 603016) through
shareholder as well as
Wuxi Guosheng Asset Management Co. Ltd actually controlled by it.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
83WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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 Main operation
Name of actual controlling shareholders
charge of the unit foundation code business
The State-owned Assets Supervision &
State-owned Assets
Administration Commission of Wuxi Zhang Jianchun ~
management
Municipality of Jiangsu Province
Equity of domestic/oversea listed company
control by actual controller in the report Not applicable
period
Changes of actual controller in the reporting period
□ Applicable □ Not applicable
No changes of actual controllers for the Company in the reporting period.Property right and controlling relationship between the actual controller and the Company is as follow
Wuxi State-owned Assets Supervision & Department of Finance of
Administration Commission of State
Council Jiangsu province
100%
Wuxi Guofa Capital Operation 59.62% 4.41%
Co. Ltd.
35.97%
Wuxi Industry Development Group Co. Ltd.
20.36%
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
84WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Corporate Legal
Registered
sharehold person/person in Establishment date Main business or management activity
capital
ers charge of unit
Development manufacture and distribution of
products technologies systems solutions and
service performance especially in mobile
electrical engineering electronics mechanical
engineering mechanics metals and other materials
medicine logistics communications and
information technology including solutions based
on data and related fields. The Company’s goal is
to further perform regionally based and business-
ROBERT Bettina
related services.BOSCH Holzwarth 1886-11-15 1.2 billion euros
The Company may directly or indirectly enter into
GMBH Nora Kristin Klug various business transactions to achieve this goal.In order to achieve the goal the Company can
establish acquire and participate in business
activities in any form permitted by law or carry out
business activities through them and organize under
unified management. The Company may restrict
some of the activities described in paragraph 1
above or hold and manage their participating
interests.
6. Restriction on shares reduction for controlling shareholders actual controllers restructuring side and
other undertakings entities
□ Applicable □ Not applicable
IV. The specific implementation of shares buy-back during the reporting period
Implementation progress of shares buy-back
□ Applicable □ Not applicable
The proportion
of repurchased
Proportion Proposed buy- shares to the
Disclosure Number of Proposed Repurchased
to total back amount Share buy-back underlying
time of the shares buy- buy-back quantity
share (ten thousand purpose stocks involved
plan back (shares) period (shares)
capital yuan) in the equity
incentive plan
(if any)
Not exceeding
Not higher
RMB 725 Intended for
than From
Not higher million implementing
250000002022-04-
April 19 than 2.48% (inclusive) employee stock
and not lower 15 to 25000000
2022 and lower and not less ownership plans
than 2023-04-
than 1.24% than RMB or equity
1250000014
362.5 million incentive plans
shares
(inclusive)
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable □ Not applicabl
85WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Section VIII. Preferred Stock
□ Applicable □ Not applicable
The Company had no preferred stock in the the reporting period.
86WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Section IX. Corporate Bonds
□ Applicable □ Not applicable
87WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Section X. Financial Report
I. Audit report
Type of audit opinion Unqualified opinion with highlighted paragraphs
Signing date of audit report April 15 2024
Name of audit institute Gongzheng Tianye Certified Public Accountants (Special General Partnership)
Serial of Auditing Report Su Gong W【2024】No. A366
Name of CPA Gu Zhi Zhang Qianqian
Auditor’s Report
Su Gong W【2024】No. A366
To the Shareholders of Weifu High-Technology Group Co. Ltd.:
1. Auditing opinions
We have audited the financial statement under the name of Weifu High-Technology Group Co. Ltd. (hereinafter
referred to as WFHT) including the consolidated and parent Company’s balance sheet of 31 December 2023 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 2023 and its operation results and cash flows for the year
ended.
2. Basis of opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Ourresponsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of theFinancial Statements” section of the auditor’s report. We are independent of the Company in accordance with 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.
3. Highlighted paragraphs
We remind users of financial statements to pay attention: As described in Note XVIII-7 "Major transaction and
events influencing investor’s decision" WFHT’s Wholly-owned subsidiary WFTR's "platform trade" business
contract fraud is in the stage of transferring for review and prosecution there is still uncertainty about the outcome
of the case in the future.This paragraph does not affect the published audit opinion.
4. Key audit matters
Key audit matters are those matters that in our professional judgment were of most significance in our audit of
88WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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.The key audit issues identified in our audit are as follows:
(1) Revenue recognition
1) Matter description
As described in Note V-31 “Revenue” and Note VII-47 “Operating income and cost” carried in the financial
statement WFHT achieved an operation revenue of CNY 11.093 billion for year of 2023. 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 WFHT management (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) Understand the key internal controls related to revenue recognition evaluate the design of these controls
determine whether they are implemented and test the operational effectiveness of the relevant internal controls;
(2) Review sales contracts to understand main contract terms or conditions and evaluate the appropriateness of
revenue recognition 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.
(2) Provision for expected credit losses of WFTR's "platform trade" business portfolio in other receivables
1) Matter description
As described in Note XVIII-7 "Major transaction and events influencing investor’s decision" As of December 31
2023 the book balance of other receivables formed by WFTR due to "platform trade" contract fraud was CNY
2.5423 billion and an expected credit loss of CNY 1.6441 billion has been provisioned. The management has
made a comprehensive judgment based on information from relevant authorized departments the recoverable
amount of the "platform trade" business portfolio debt has not undergone significant changes compared to the end
of the previous year and there is no need for further provision or significant reversal of its expected credit losses.Due to the significant accounting estimates and judgments made by management in relation to the recoverable
amount of claims in the "platform trade" business portfolio which is significant to the financial statements we
89WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
have identified the provision for expected credit losses in the "platform transaction" business portfolio in other
receivables as a key audit matter.
2) The solution to the matter in auditing
(1) Obtain the accounting estimation method and results of the management's provision of expected credit losses
for the debt portfolio of the "platform trade" business asking the sources of significant judgments made by the
management regarding the recoverability amount of the debt portfolio of the "platform trade" business compare
and analyze the changes in the basis of the recoverability amount of the debt portfolio of the "platform trade"
business compared to the end of the previous year and evaluate its rationality;
(2) Conduct interviews to authorized departments based on the sources of estimates made by management verify
the authenticity and reliability of the sources and verify the changes in the basis for the recoverable amount
compared to the end of the previous year and the reasons for such changes;
(3) Based on the information obtained from interviews to the related authorized departments conduct interviews
to the main "customers" and "suppliers" of the "platform trade" business to evaluate the authenticity of relevant
evidence;
(4) Re execute the calculation program based on the recoverable amount of debt in the "platform trade" business
portfolio and compare it with the estimated results of management further judgment on whether the
management's conclusion regarding the expected credit loss of the "platform trade" business portfolio debt does
not require further provision or significant reversal is reasonable.
(5) Check whether information related to "platform trade" business has been appropriately presented and disclosed
in the financial statements.
5. Other information
The management of WFHT is responsible for other information which includes the information covered in the
Company’s 2023 annual report excluding the financial statement and our audit report.Our audit opinions on the financial statements do not cover other information and we do not issue any form 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
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 in this regard we have no matters to report.
6. 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
90WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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.
7. Responsibilities of the auditor for the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free 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
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
91WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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 2024
92WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
II. Financial Statement
Statement in Financial Notes are carried in RMB
1. Consolidated Balance Sheet
Prepared by Weifu High-Technology Group Co. Ltd.Dec. 31 2023
In RMB
Item Dec. 31 2023 Jan. 1 2023
Current assets:
Monetary funds 2274771699.14 2389551930.76
Settlement provisions
Capital lent
Trading financial assets 2391487144.96 2718820654.87
Derivative financial assets
Note receivable 144976174.84 135559024.27
Account receivable 3857539958.20 3127490177.25
Receivable financing 1661749949.46 1918368845.21
Accounts paid in advance 76202271.16 94323853.87
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 919684126.81 1264507456.47
Including: Interest receivable
Dividend receivable 147000000.00
Buying back the sale of financial assets
Inventories 2068533030.94 2283119656.27
Contract assets
Assets held for sale
Non-current asset due within one year
Other current assets 325909383.11 430547201.24
Total current assets 13720853738.62 14362288800.21
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
93WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Long-term equity investment 5947633507.07 6282818108.96
Investment in other equity instrument 677790690.00 677790690.00
Other non-current financial assets 804350120.06 1326608914.00
Investment real estate 46926716.49 49296869.73
Fixed assets 3969574102.87 3769984185.94
Construction in progress 564605931.90 509105587.49
Productive biological asset
Oil and gas asset
Right-of-use assets 48832472.85 41865100.38
Intangible assets 484834882.53 487627987.92
Expense on research and development
Goodwill 122316819.20 237682375.72
Long-term expenses to be apportioned 24714632.10 28586235.84
Deferred income tax asset 311912955.07 275627772.45
Other non-current asset 1356741223.05 479630436.37
Total non-current asset 14360234053.19 14166624264.80
Total assets 28081087791.81 28528913065.01
Current liabilities:
Short-term loans 838889557.51 3604376527.82
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability 747115.75
Note payable 1759062642.60 1411089606.00
Account payable 3668850423.29 3454601023.60
Accounts received in advance 2911439.65 3633878.33
Contractual liability 77686881.24 94850083.23
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 334810352.56 317434386.24
Taxes payable 56581082.49 54586315.53
Other account payable 108893486.63 198990948.23
Including: Interest payable
Dividend payable
Commission charge and commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one year 38084321.10 14285348.90
94WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Other current liabilities 257139908.60 211763779.77
Total current liabilities 7142910095.67 9366359013.40
Non-current liabilities:
Insurance contract reserve
Long-term loans 299800000.00 238000000.00
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 37733196.51 31589277.20
Long-term account payable 28035082.11 30785082.11
Long-term wages payable 129844482.80 154093044.28
Accrued liability 38016428.52 10106268.87
Deferred income 188773622.29 223123978.78
Deferred income tax liabilities 37752122.87 40149550.99
Other non-current liabilities
Total non-current liabilities 759954935.10 727847202.23
Total liabilities 7902865030.77 10094206215.63
Owner’s equity:
Share capital 1002162793.00 1008603293.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital reserve 3308170140.96 3398368567.63
Less: inventory shares 533289512.24 541623002.63
Other comprehensive income 54156915.97 -911310.13
Reasonable reserve 3641439.97 2119800.95
Surplus public reserve 510100496.00 510100496.00
Provision of general risk
Retained profit 15054950398.12 13320021325.90
Total owner’ s equity attributable to parent company 19399892671.78 17696679170.72
Minority interests 778330089.26 738027678.66
Total owner’ s equity 20178222761.04 18434706849.38
Total liabilities and owner’ s equity 28081087791.81 28528913065.01
Legal representative: Wang Xiaodong
Person in charge of accounting works: Rong Bin
Person in charge of accounting institute: Wu Junfei
95WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
2. Balance Sheet of Parent company
In RMB
Item Dec. 31 2023 Jan. 1 2023
Current assets:
Monetary funds 714826120.43 823574329.53
Trading financial assets 2251060973.85 2693150975.20
Derivative financial assets
Note receivable 23523055.70 29575852.04
Account receivable 1384059380.88 906808283.22
Receivable financing 227811949.87 216462262.44
Accounts paid in advance 45875061.25 56037892.68
Other account receivable 1370649392.28 1472102439.27
Including: Interest receivable 842323.12 206325.34
Dividend receivable
Inventories 549696080.27 571571431.95
Contract assets
Assets held for sale
Non-current assets maturing within one year
Other current assets 11054042.33 107462112.82
Total current assets 6578556056.86 6876745579.15
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 8008012424.29 8369843351.10
Investment in other equity instrument 601850690.00 601850690.00
Other non-current financial assets 804350120.06 1326608914.00
Investment real estate 34453448.06 35584279.11
Fixed assets 2376023503.55 2251495050.80
Construction in progress 218670126.54 251304655.41
Productive biological assets
Oil and natural gas assets
Right-of-use assets 4290695.37 6061693.75
Intangible assets 220397330.28 209246490.17
Research and development costs
Goodwill
Long-term deferred expenses 3759490.67 6895352.43
Deferred income tax assets 109441564.66 109624761.50
Other non-current assets 731758973.92 168744695.04
96WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Total non-current assets 13113008367.40 13337259933.31
Total assets 19691564424.26 20214005512.46
Current liabilities
Short-term borrowings 480490722.23 2121354415.53
Trading financial liability
Derivative financial liability 737424.50
Notes payable 365959174.48 251867652.05
Account payable 1166435681.25 1048268519.52
Accounts received in advance
Contract liability 8548593.06 6564332.93
Wage payable 168228976.90 166314985.33
Taxes payable 5327449.07 6048505.30
Other accounts payable 216435787.01 926276130.15
Including: Interest payable 1123734.04 835069.83
Dividend payable
Liability held for sale
Non-current liabilities due within one year 28000984.47 4306935.71
Other current liabilities 38294705.54 102322311.03
Total current liabilities 2477722074.01 4634061212.05
Non-current liabilities:
Long-term loans 299800000.00
Bonds payable
Including: preferred stock
Perpetual capital securities
Lease liability 1836800.62 2690812.43
Long-term account payable
Long term employee compensation payable 95678717.83 121683760.89
Accrued liabilities 10709925.00 13750.00
Deferred income 160462135.18 198149511.20
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 568487578.63 322537834.52
Total liabilities 3046209652.64 4956599046.57
Owners’ equity:
Share capital 1002162793.00 1008603293.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital reserve 3412506010.91 3515005861.23
Less: Inventory shares 533289512.24 541623002.63
97WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Other comprehensive income
Special reserve
Surplus reserve 510100496.00 510100496.00
Retained profit 12253874983.95 10765319818.29
Total owner’s equity 16645354771.62 15257406465.89
Total liabilities and owner’s equity 19691564424.26 20214005512.46
3. Consolidated Profit Statement
In RMB
Item 2023 2022
I. Total operating income 11093141950.98 12729634917.03
Including: Operating income 11093141950.98 12729634917.03
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 10773357152.61 12526691966.36
Including: Operating cost 9150312640.74 11016385488.80
Interest expense
Commission charge and commission expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Tax and extras 64464506.58 70575584.89
Sales expense 230571186.60 189528090.71
Administrative expense 612096726.09 586386474.32
R&D expense 667871159.95 581488711.88
Financial expense 48040932.65 82327615.76
Including: Interest expenses 95145829.10 107737432.78
Interest income 40360794.63 41020724.48
Add: other income 97464970.76 112665397.27
Investment income (Loss is listed with “-”) 1701990058.24 1849145500.50
Including: Investment income on affiliated company and
1596392131.721636986684.96
joint venture
The termination of income recognition for
financial assets measured by amortized cost(Loss is listed with “-”)
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listed
with “-”)
Income from change of fair value (Loss is listed
9767646.64-157622752.09
with “-”)Loss of credit impairment (Loss is listed with “- -4402449.07 -1645881142.40
98WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
”)
Losses of devaluation of asset (Loss is listed
-331275532.54-181610433.12
with “-”)
Income from assets disposal (Loss is listed with
128314484.531986804.53
“-”)
III. Operating profit (Loss is listed with “-”) 1921643976.93 181626325.36
Add: Non-operating income 17111807.24 5699768.04
Less: Non-operating expense 4411191.85 7711660.06
IV. Total profit (Loss is listed with “-”) 1934344592.32 179614433.34
Less: Income tax expense 21195062.23 -11331574.91
V. Net profit (Net loss is listed with “-”) 1913149530.09 190946008.25
(i) Classify by business continuity
1.continuous operating net profit (net loss listed with “-”) 1913149530.09 190946008.25
2.termination of net profit (net loss listed with “-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent company 1837291259.68 118819836.30
2.Minority shareholders’ gains and losses 75858270.41 72126171.95
VI. Net after-tax of other comprehensive income 55068226.10 35835034.47
Net after-tax of other comprehensive income attributable to owners of
55068226.1035835034.47
parent company
(i) Other comprehensive income items which will not be
-1189898.59-399165.06
reclassified subsequently to profit of loss
1.Changes of the defined benefit plans that re-measured -1189898.59 -399165.06
2.Other comprehensive income under equity method that cannot be
transfer to gain/loss
3.Change of fair value of investment in other equity instrument
4.Fair value change of enterprise's credit risk
5.Other
(ii) Other comprehensive income items which will be reclassified
56258124.6936234199.53
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
56258124.6936234199.53
financial statements
7.Other
Net after-tax of other comprehensive income attributable to minority
shareholders
VII. Total comprehensive income 1968217756.19 226781042.72
Total comprehensive income attributable to owners of parent
1892359485.78154654870.77
Company
Total comprehensive income attributable to minority shareholders 75858270.41 72126171.95
VIII. Earnings per share:
(i) Basic earnings per share 1.88 0.09
(ii) Diluted earnings per share 1.88 0.09
99WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Legal Representative: Wang Xiaodong
Person in charge of accounting works: Rong Bin
Person in charge of accounting institute: Wu Junfei
4. Profit Statement of Parent Company
In RMB
Item 2023 2022
I. Operating income 3568007626.04 3864504995.80
Less: Operating cost 2860201219.79 3263994952.63
Taxes and surcharge 26020608.91 21016396.56
Sales expenses 37348009.82 24032764.17
Administration expenses 317148490.36 312390634.03
R&D expenses 256555205.86 215942706.30
Financial expenses 43029546.08 -47492346.99
Including: interest expenses 70100281.69 75002506.86
Interest income 22232354.69 123450262.42
Add: other income 60045052.24 78660020.95
Investment income (Loss is listed with “-”) 1551999553.88 1698892386.70
Including: Investment income on affiliated Company and joint
1372133258.691427651731.23
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 “-”) 9325222.30 -157794622.92
Loss of credit impairment (Loss is listed with “-”) 599535.81 -1645695111.31
Losses of devaluation of asset (Loss is listed with “-”) -71109221.75 -94397143.24
Income on disposal of assets (Loss is listed with “-”) 8262258.43 208706.65
II. Operating profit (Loss is listed with “-”) 1586826946.13 -45505874.07
Add: Non-operating income 978746.24 236560.76
Less: Non-operating expense 1204343.16 1624603.88
III. Total profit (Loss is listed with “-”) 1586601349.21 -46893917.19
Less: Income tax 288204.25 -24338482.27
IV. Net profit (Net loss is listed with “-”) 1586313144.96 -22555434.92(i)continuous operating net profit (net loss listed with ‘-”) 1586313144.96 -22555434.92(ii) termination of net profit (net loss listed with ‘-”)
V. Net after-tax of other comprehensive income
(I) Other comprehensive income items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined benefit plans that re-measured
2.Other comprehensive income under equity method that cannot be
transfer to gain/loss
3.Change of fair value of investment in other equity instrument
100WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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 1586313144.96 -22555434.92
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item 2023 2022
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 11815615875.97 12431900362.84
Net increase of customer deposit and interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from other financial institution
Cash received from original insurance contract fee
Net cash received from reinsurance business
Net increase of insured savings and investment
Cash received from interest commission charge and commission
Net increase of capital borrowed
Net increase of returned business capital
Net cash received by agents in sale and purchase of securities
Write-back of tax received 247423811.65 306395040.32
Other cash received concerning operating activities 304312552.49 3682848864.34
Subtotal of cash inflow arising from operating activities 12367352240.11 16421144267.50
Cash paid for purchasing commodities and receiving labor service 8080288216.69 10077477240.02
Net increase of customer loans and advances
Net increase of deposits in central bank and interbank
Cash paid for original insurance contract compensation
Net increase of capital lent
Cash paid for interest commission charge and commission
101WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 1566762591.01 1384027081.31
Taxes paid 421031865.46 580286995.87
Other cash paid concerning operating activities 673019655.05 6955095599.73
Subtotal of cash outflow arising from operating activities 10741102328.21 18996886916.93
Net cash flows arising from operating activities 1626249911.90 -2575742649.43
II. Cash flows arising from investing activities:
Cash received from recovering investment 3313684345.66 10740023339.08
Cash received from investment income 2327386986.20 1183837077.82
Net cash received from disposal of fixed intangible and other long-
146353685.0720576391.79
term assets
Net cash received from disposal of subsidiaries and other units 136787298.86
Other cash received concerning investing activities 18840000.00
Subtotal of cash inflow from investing activities 5806265016.93 12081224107.55
Cash paid for purchasing fixed intangible and other long-term assets 1113912460.11 1152415535.85
Cash paid for investment 3455088494.14 7116445479.00
Net increase of mortgaged loans
Net cash received from subsidiaries and other units obtained 13716100.33 70190329.71
Other cash paid concerning investing activities 13036225.94 146232114.50
Subtotal of cash outflow from investing activities 4595753280.52 8485283459.06
Net cash flows arising from investing activities 1210511736.41 3595940648.49
III. Cash flows arising from financing activities
Cash received from absorbing investment 125000000.00
Including: Cash received from absorbing minority shareholders’
125000000.00
investment by subsidiaries
Cash received from loans 2696375308.64 4692002243.34
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 2696375308.64 4817002243.34
Cash paid for settling debts 5372848659.59 2328551163.70
Cash paid for dividend and profit distributing or interest paying 232202783.52 1761911157.57
Including: Dividend and profit of minority shareholder paid by
40453107.5854977987.52
subsidiaries
Other cash paid concerning financing activities 164632874.00 591370195.57
Subtotal of cash outflow from financing activities 5769684317.11 4681832516.84
Net cash flows arising from financing activities -3073309008.47 135169726.50
IV. Influence on cash and cash equivalents due to fluctuation in exchange
21416449.7527730942.53
rate
V. Net increase of cash and cash equivalents -215130910.41 1183098668.09
Add: Balance of cash and cash equivalents at the period -begin 2277117604.82 1094018936.73
VI. Balance of cash and cash equivalents at the period -end 2061986694.41 2277117604.82
6. Cash Flow Statement of Parent Company
In RMB
102WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Item 2023 2022
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 2992755592.93 3542749700.01
Write-back of tax received 125190524.09 184495154.77
Other cash received concerning operating activities 77926649.97 47404163.66
Subtotal of cash inflow arising from operating activities 3195872766.99 3774649018.44
Cash paid for purchasing commodities and receiving labor service 1844781220.30 2601006413.32
Cash paid to/for staff and workers 663056090.53 707858677.98
Taxes paid 141072774.09 209864912.81
Other cash paid concerning operating activities 253804167.34 186707374.55
Subtotal of cash outflow arising from operating activities 2902714252.26 3705437378.66
Net cash flows arising from operating activities 293158514.73 69211639.78
II. Cash flows arising from investing activities:
Cash received from recovering investment 2492465818.32 7606003001.77
Cash received from investment income 2060589193.54 1230308621.08
Net cash received from disposal of fixed intangible and other long-
14663395.447573333.23
term assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 326061324.33 1345164876.69
Subtotal of cash inflow from investing activities 4893779731.63 10189049832.77
Cash paid for purchasing fixed intangible and other long-term assets 641672060.41 676750590.56
Cash paid for investment 2112142787.05 5495846939.59
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities 223723855.14 4200652968.77
Subtotal of cash outflow from investing activities 2977538702.60 10373250498.92
Net cash flows arising from investing activities 1916241029.03 -184200666.15
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans 1795000000.00 2765016400.00
Other cash received concerning financing activities 300000000.00 668810047.94
Subtotal of cash inflow from financing activities 2095000000.00 3433826447.94
Cash paid for settling debts 3107144800.00 926483000.00
Cash paid for dividend and profit distributing or interest paying 153437599.42 1660892442.17
Other cash paid concerning financing activities 1137043447.66 426203919.97
Subtotal of cash outflow from financing activities 4397625847.08 3013579362.14
Net cash flows arising from financing activities -2302625847.08 420247085.80
IV. Influence on cash and cash equivalents due to fluctuation in exchange
3332858.579734626.92
rate
V. Net increase of cash and cash equivalents -89893444.75 314992686.35
Add: Balance of cash and cash equivalents at the period -begin 803410185.18 488417498.83
VI. Balance of cash and cash equivalents at the period -end 713516740.43 803410185.18
103WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
7. Statement of Change in Owners’ Equity(Consolidated)
Current Period
In RMB
2023
Owners’ equity attributable to the parent Company
Other
equity instrument
Item Perpe Other Provisi Minority Total owners’
Less:
Share tual comprehe Reasonabl Surplus on of interests equity
Prefe Capital reserve Inventory Retained profit Other Subtotal
capital capit nsive e reserve reserve general
rred Other shares
al income risk
stock
secur
ities
I. Balance at the -
1008603233983685654162300211980510100491332002131769667917380276718434706849.
end of the last 911310.1
year 93.00 7.63 2.63 0.95 6.00 25.90 70.72 8.66 38
3
Add: Changes of
accounting
policy
Error correction
of the last period
Other
II. Balance at the -
1008603233983685654162300211980510100491332002131769667917380276718434706849.
beginning of this 911310.1
year 93.00 7.63 2.63 0.95 6.00 25.90 70.72 8.66 38
3
III. Increase/ - - -
Decrease in this 550682 152163 173492907 170321350 40302410. 1743515911.6
year (Decrease is 6440500.0 90198426.6 8333490.3 26.10 9.02 2.22 1.06 60 6
listed with “-”) 0 7 9
(i) Total
55068218372912518923594875858270.1968217756.1
comprehensive
income 26.10 9.68 5.78 41 9
(ii) Owners’ - - - -
4072852.9
devoted and 6440500.0 103260862. 8333490.3 101367872. -97295019.45
decreased capital 4
078939
1.Common -
71917549.5000000.0
shares invested 71917549.6 -66917549.61
by shareholders 61 0
2.Capital
invested by
holders of other
equity
104WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
instruments
3. Amount
reckoned into - -
owners equity 30009672.7 30009672.7 -929399.14 -30939071.92
with share-based
88
payment
---
4. Other 6440500.0 73251190.0 80251040. 559350.00 2252.08 561602.08
0000
---
(III) Profit
distribution 102362187. 102362187. 40453107. -142815295.04
464658
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
provisions
3. Distribution - - -
for owners (or 97757979.3 97757979.3 40453107. -138211086.88
shareholders)
0058
4. Other -4604208.16 -4604208.16 -4604208.16
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with surplus
reserve
4.Carry-over
retained earnings
from the defined
benefit plans
5.Carry-over
retained earnings
from other
comprehensive
income
6. Other
(V) Reasonable
reserve 152163 1521639.02 201878.14 1723517.16
105WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
9.02
1. Withdrawal in 307685 30768590.8 3311493.5
the report period 34080084.35 90.85 5 0
2. Usage in the 292469 29246951.8 3109615.3
report period 32356567.19 51.83 3 6
(VI)Others 13062436.11 13062436.11 622516.69 13684952.80
IV. Balance at
1002162733081701453328951541569364143510100491505495031939989267783300820178222761.
the end of the
report period 93.00 0.96 2.24 15.97 9.97 6.00 98.12 71.78 9.26 04
Last Period
In RMB
2022
Owners’ equity attributable to the parent Company
Other
equity instrument
Item Perpe Other Provisi Minority Total owners’
Less:
Share tual comprehe Reasonabl Surplus on of
interests equity Prefe Capital reserve Inventory Retained profit Other Subtotal
capital capit nsive e reserve reserve general
rred Other shares
al income risk
stock
secur
ities
I. Balance at the -1008659 33713441 2702497 712215. 5101004 14814787 19398607 5640940 1996270175
end of the last 367463
year 570.00 72.82 97.74 31 96.00 377.86 689.65 65.82 5.47
44.60
Add: Changes of
accounting
policy
Error correction
of the last period
Other
II. Balance at the -1008659 33713441 2702497 712215. 5101004 14814787 19398607 5640940 1996270175
beginning of this 367463
year 570.00 72.82 97.74 31 96.00 377.86 689.65 65.82 5.47
44.60
III. Increase/ - - -
Decrease in this - 27024394. 2713732 358350 140758 1739336
year (Decrease is 14947660 17019285 152799490656277.00 81 04.89 34.47 5.64 12.84
listed with “-”) 51.96 18.93 .09
(i) Total 358350 118819836 154654870 7212617 226781042.7
comprehensive
income 34.47 .30 .77 1.95 2
(ii) Owners’ - -- 27024394. 2713732 1308266
devoted and 244405087 113578476.2
decreased capital 56277.00 81 04.89 10.83.085
106WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
1.Common - -3978045 1300000
shares invested 397804542 267804542.6
by shareholders 42.63 00.00.633
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into 28116895. 28116895. 826610.8
owners equity 28943506.38
with share-based 55 55 3
payment
--
-125282560125282560.0
4. Other 1092500.7 1264313
56277.00.000
437.74
----
(III) Profit
distribution 16135858 16135858 2930688 1642892775
88.2688.267.52.78
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
provisions
3. Distribution - - - -
for owners (or 16090596 16090596 2930688 1638366556
shareholders)
68.8068.807.52.32
--
4. Other 4526219.4 4526219.4 -4526219.46
66
(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
107WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
benefit plans
5.Carry-over
retained earnings
from other
comprehensive
income
6. Other
(V) Reasonable 140758 1407585.6 287717.5
reserve 1695303.22 5.64 4 8
1. Withdrawal in 260870 26087086. 2700074.
the report period 28787160.37 86.34 34 03
2. Usage in the 246795 24679500. 2412356.
report period 27091857.15 00.70 70 45
(VI)Others
IV. Balance at -1008603 33983685 5416230 211980 5101004 13320021 17696679 7380276 1843470684
the end of the 911310.report period 293.00 67.63 02.63 0.95 96.00 325.90 170.72 78.66 9.38
13
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Period
In RMB
2023
Other equity instrument
Item Perpetu
Other
Reason
al Less: Inventory comprehe OtShare capital Preferre Capital reserve able Surplus reserve Retained profit Total owners’ equity
capital Other shares nsive her
d stock reserve
securiti income
es
I. Balance at
the end of the 1008603293.00 3515005861.23 541623002.63 510100496.00 10765319818.29 15257406465.89
last year
Add: Changes
of accounting
policy
Error
correction of
the last period
Other
II. Balance at
the beginning 1008603293.00 3515005861.23 541623002.63 510100496.00 10765319818.29 15257406465.89
of this year
III. Increase/ -6440500.00 -102499850.32 -8333490.39 1488555165.66 1387948305.73
108WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Decrease in
this year
(Decrease is
listed with “-”)
(i) Total
comprehensive 1586313144.96 1586313144.96
income
(ii) Owners’
devoted and
decreased -6440500.00 -104190261.92 -8333490.39 -102297271.53
capital
1.Common
shares invested 71917549.61 -71917549.61
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity -30939071.92 -30939071.92
with share-
based payment
4. Other -6440500.00 -73251190.00 -80251040.00 559350.00
(III) Profit
distribution -97757979.30 -97757979.30
1. Withdrawal
of surplus
reserves
2. Distribution
for owners (or -97757979.30 -97757979.30
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
109WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
earnings from
the defined
benefit plans
5.Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal 6474
in the report 505.0 6474505.00
period
0
6474
2. Usage in the
report period 505.0 6474505.00
0
(VI)Others 1690411.60 1690411.60
IV. Balance at
the end of the 1002162793.00 3412506010.91 533289512.24 510100496.00 12253874983.95 16645354771.62
report period
Last Period
In RMB
2022
Other equity instrument
Other
Item Perpetu ReasonLess: Inventory comprehe Ot
Share capital al Capital reserve able Surplus reserve Retained profit Total owners’ equity
Preferre shares nsive her
capital Other reserve
d stock income
securiti
es
I. Balance at
the end of the 1008659570.00 3487154855.59 270249797.74 510100496.00 12396934922.01 17132600045.86
last year
Add: Changes
of accounting
policy
Error
correction of
the last period
Other
II. Balance at
the beginning 1008659570.00 3487154855.59 270249797.74 510100496.00 12396934922.01 17132600045.86
of this year
110WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
III. Increase/
Decrease in
this year -56277.00 27851005.64 271373204.89 -1631615103.72 -1875193579.97
(Decrease is
listed with “-”)
(i) Total
comprehensive -22555434.92 -22555434.92
income
(ii) Owners’
devoted and
decreased -56277.00 27851005.64 271373204.89 -243578476.25
capital
1.Common
shares invested 397804542.63 -397804542.63
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity 28943506.38 28943506.38
with share-
based payment
4. Other -56277.00 -1092500.74 -126431337.74 125282560.00
(III) Profit
distribution -1609059668.80 -1609059668.80
1. Withdrawal
of surplus
reserves
2. Distribution
for owners (or -1609059668.80 -1609059668.80
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
111WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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 6791
in the report 507.4 6791507.46
period
6
6791
2. Usage in the
report period 507.4 6791507.46
6
(VI)Others
IV. Balance at
the end of the 1008603293.00 3515005861.23 541623002.63 510100496.00 10765319818.29 15257406465.89
report period
112WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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.On May 27 2009 Weifu Group satisfied the consideration arrangement by dispatching 0.5 shares for each 10 shares based on the
number of circulating A share as prior to Share Merger Reform according to the aforesaid Share Merger Reform with an aggregate
of 14039979 shares dispatched. Subsequent to implementation of dispatch of consideration shares Weifu Group then held
100021999 shares of the Company representing 17.63% of the total share capital of the Company.
Pursuant to the document (XGZQ(2009)No.46) about Approval for Merger of Wuxi Weifu Group Co. Ltd. by Wuxi Industry
Development Group Co. Ltd. issued by the State-owned Assets Supervision and Administration Commission of Wuxi City
Government Wuxi Industry Development Group Co. Ltd. (hereinafter referred to as Wuxi Industry Group) acquired Weifu Group.After the merger Weifu Group was then revoked and its assets and credits & debts were transferred to be under the name of Wuxi
Industry Group. Accordingly Wuxi Industry Group 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
113WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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 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 December 31 2013.Deliberated and approved by the company’s first extraordinary general meeting in 2015 the company has repurchased 11250422
shares of A shares from August 26 2015 to September 8 2015 and 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 meeting of 10th session of the 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.After deliberation and approved by the 8th meeting of 10th session of the BOD for year of 2022 the 56277 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 July 8 2022; the paid-in capital (equity) of the
Company comes to 1008603293.00 yuan after changed.In 2023 deliberated and approved by the 14th 16th and 20th meetings of the 10th session of the Board of Directors the company
bought back and canceled 430000 5593500 and 417000 restricted shares granted for the first time under the 2020 Restricted
Stock Incentive Plan. The company completed the cancellation procedures for the bought back shares on February 16 2023 June 16
2023 and December 18 2023 at the Shenzhen branch of China Securities Depository and Clearing Corporation Limited. The
company's paid in capital (share capital) after the change was RMB 1002162793.00.
2. Registered place organization structure and head office of the Company
Registered place and head office of the Company: No.5 Huashan Road Xinwu District Wuxi
Unified social credit code: 91320200250456967N
The Company sets up Shareholders’ General Meeting the Board of Directors (BOD) and the Board of Supervisors (BOS) .The Company sets up Administration Department Technology Centre organization & personnel department Office of the Board
compliance department IT department Strategy & new business Department market development department Party-masses
Department Finance Department Purchase 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 Borit NV VHIO etc.
3. Business nature and major operation activities of the Company
Operation scope of parent company: Technology development and consulting service in the machinery industry; manufacture 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
114WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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 was approved by the Board of Directors for reporting dated April 15 2024.
5. Unless otherwise stated in the notes to these financial statements the following company names are
abbreviated as follows:
Name of subsidiary Short name of subsidiary
Nanjing WFJN Co. Ltd. WFJN
Wuxi Weifu Lida Catalytic Converter Co. Ltd. WFLD
Wuxi Weifu Mashan Fuel Injection Equipment Co. Ltd. WFMA
Wuxi Weifu Chang’an Co. Ltd. WFCA
Wuxi Weifu International Trade Co. Ltd. WFTR
Wuxi Weifu Schmitter Powertrain Components Co. Ltd. WFSC
Ningbo WFTT Turbocharging Technology Co. Ltd. WFTT
Wuxi WFAM Precision Machinery Co. Ltd. WFAM
WFLD
Wuxi Weifu Lida Catalytic Converter(Wuhan) Co. Ltd.(Wuhan)
WFLD
Weifu Lida (Chongqing) Automotive Components Co. Ltd.
(Chongqing)
WFLD
Nanchang Weifu Lida Automotive Components Co. Ltd.(Nanchang)
Wuxi Weifu Autosmart Seating System Co. Ltd. WFAS
Wuxi Weifu E-drive Technologies Co. Ltd. WFDT
Wuxi Weifu Qinglong Power Technology Co. Ltd. WFQL
VHIT Automotive Systems(Wuxi) Co.Ltd VHWX
Weifu Holding ApS SPV
IRD Fuel Cells A/S IRD
IRD FUEL CELLS LLC IRD America
Borit NV Borit
Borit Inc. Borit America
VHIT S.p.A VHIO
IV. Basis of Preparation of Financial Statements
1. Preparation base
The financial statements are stated in compliance with Accounting Standard for Business Enterprises –Basic Norms issued by the
Ministry of Finance the specific accounting rules revised and issued dated Feb. 15 2006 and later the Application Instruments ofAccounting Standards and interpretation on Accounting standards and other relevant regulations (together as “Accounting Standardsfor Business Enterprise”) as well as the Compilation Rules for Information Disclosure by Companies Offering Securities to the
115WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Public No.15 – General Provision of Financial Report (Amended in 2023) issued by CSRC in respect of the actual transactions and
proceedings on a basis of ongoing operation.In line with relevant regulations of Accounting Standards of Business Enterprise accounting of the Company is on Accrued basis.Except for certain financial instruments the financial statement measured on historical cost. Assets have impairment been found
corresponding depreciation reserves shall Accrued according to relevant rules.
2. Going concern
The Company comprehensively assessed the available information and there are no obvious factors that impact sustainable operation
ability of the Company within 12 months since end of the reporting period.V. Major Accounting Policies and Estimation
Specific accounting policies and estimation attention:
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 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.“Changes of important accounting policies 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 December 31 2023 such as
financial status operation achievements and cash flow for the year of 2023.
2. Accounting period
Accounting period of the Company consist of annual and mid-term mid-term refers to the reporting period shorter than one annual
accounting year. The company adopts Gregorian calendar as accounting period namely form each January 1 to December 31.
3. Business cycles
Normal business cycle is the period from purchasing assets used for process by the Company to the cash and cash equivalent
achieved. The Company’s normal business cycle was one-year (12 months).
4. Recording currency
The Company’s recording currency is the RMB yuan.
5. Method for determining importance criteria and selection criteria
□Applicable □ Not applicable
Item Importance criteria
116WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Important prepayments with an aging Prepayment with aging over 1 year accounting for more than 10% of the total prepaid amount
of over 1 year and with an amount greater than 15 million yuan
Important construction in progress The budget for a single project is greater than 80 million yuan
Important accounts payable with an Account payable with aging over 1 year accounting for more than 10% of the total accounts
aging of over 1 year payable and with an amount greater than 80 million yuan
Other important payables with aging Other payables with aging over 1 year accounting for more than 10% of the total other
of over 1 year payables and an amount greater than 15 million yuan
Important contract liabilities with Contract liabilities with aging over 1 year account for more than 10% of the total contract
aging of over 1 year liabilities and the amount greater than 15 million yuan
The net assets of subsidiaries account for more than 5% of the net assets in the consolidated
Important non-wholly-owned
financial statements or the net profit of subsidiaries accounts for more than 10% of the net
subsidiaries
profit in the consolidated financial statements
The book value of long-term equity investments in an invested entity accounts for more than
5% of the net assets in the consolidated financial statements and the amount exceeds 1 billion
Important joint ventures or associates
yuan or the investment gains/losses under the equity method account for more than 10% of the
net profits in the consolidated financial statements and the amount exceeds 100 million yuan
6. 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. The balance of net asset’s book value acquired by combining
party and combine consideration paid (or total book value of the shares issued) shall be used to adjust capital reserve (share
premium); if the capital reserve (share premium) is not enough for deducted the retained earnings shall be adjusted. directly
expenses occurred for enterprise combination the combining party shall reckon expenses directly occurring for enterprise
combination into current gains/losses at the time of occurrence. Combination day is the date when the combining party obtains
controlling rights from the combined party.
(2) Combine not under the same control
A business combination not involving entities under common control is a business combination in which all of the combining entities
are not ultimately controlled by the same party or parties both before and after the combination. As a purchaser the 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 shall be 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.
117WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
7. Criteria for judging control and preparation method for consolidated financial statement
(1) Criteria for judging control
The consolidation scope of the consolidated financial statements is determined based on control. Control refers to the company
having the power over the invested entity enjoying variable returns through participating in related activities of the invested entity
and having the ability to use the power over the invested entity to influence its return amount. When changes in relevant facts and
circumstances result in changes in the relevant elements involved in the definition of control the company will conduct a
reassessment.When determining whether to include a structured entity in the scope of consolidation our company takes into account all facts and
circumstances including evaluating the purpose and design of the establishment of the structured entity identifying the types of
variable returns and evaluating whether to control the structured entity by participating in its related activities and assuming some or
all of the variability of returns.
(2) Preparation method for consolidated financial statements
(1) Recognition principle of consolidation scope
On basis of the financial statement of the parent company and owned subsidiaries prepared consolidated statement in line 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) 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 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
118WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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 thesubsidiary’s current consolidated income attributable to the minority interests is listed as the “total consolidated income attributableto the minority shareholders” item under the total consolidated income item in the consolidated income statement. If there 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 Measurement.The company shall determine whether loss of control arising from disposal in a series of transactions should be regarded as package
deal. When the economic effects and terms and conditions of the disposal transactions meet one or more of the following situations
the transactions shall normally be accounted for as package deal: * The transactions are entered into after considering the mutual
consequences of each individual transaction; * The transactions need to be considered as a whole in order to achieve a deal in
commercial sense;* The occurrence of an individual transaction depends on the occurrence of one or more individual transactions in
the series; * The result of an individual transaction is not economical but it would be economical after taking into account of other
transactions in the series. When the transactions are not regarded as package deal the individual transactions shall be accounted as
“disposal of a portion of an interest in a subsidiary which does not lead to loss of control” and “disposal of a portion of an interest ina subsidiary which lead to loss of control”. When the transactions are regarded as package deal the transactions shall be accounted as
a single disposal transaction; however the difference between the consideration received from disposal and the share of net assets
disposed in each individual transaction before loss of control shall be recognized as other comprehensive income and reclassified as
profit or loss arising from the loss of control when control is lost.
8. 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;
119WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
(4) Recognize fees solely occurred by Company;
(5) Recognize fees from joint operations in appropriation to the share of the Company.
9. Recognition standards for cash and cash equivalent
Cash refers to stock cash savings available for paid at any time; cash and cash equivalent refers to the cash held by the Company
with short terms (expired within 3 months since purchased) and liquid and easy to transfer as known amount and investment with
minor variation in risks.
10. Foreign currency business and conversion
For foreign currency transactions convert the foreign currency amount into the accounting base currency amount.At the initial recognition of foreign currency transactions the foreign currency amount shall be converted into the accounting base
currency amount with the spot exchange rate on the transaction date. On the balance sheet date the foreign currency monetary items
shall be converted with the spot exchange rate on the balance sheet date. The settlement and monetary item discount differences
arising from this are recognized in the current period's profit and loss except for the differences arising from foreign currency special
borrowings related to the acquisition and construction of assets that meet capitalization conditions and are treated according to the
principle of borrowing cost capitalization. Foreign currency non-monetary items measured at historical cost shall be still converted
with the exchange rate used at the initial recognition without changing their accounting base currency amount. Foreign currency non-
monetary items measured at fair value shall be converted with the spot exchange rate on the fair value determination date and the
resulting differences are recognized in the current period’s profit and loss. The subsequent difference shall be booked into current
profit or loss or other comprehensive income in terms of the feature of non-monetary items.The following displays the methods for translating financial statements involving foreign operations into the statements in RMB: 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.
11. Financial instrument
Financial instrument is the contract that forms the financial asses for an enterprise and forms the financial liability or equity
instrument for other units.
(1) Classification and initial measurement
The company recognizes a financial asset or liability when it becomes a party to a financial instrument contract.
1) Classification and initial measurement of financial assets
At the initial recognition according to the business model of managing financial assets and the contractual cash flow 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
120WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
fair value and whose changes are included in current profit or loss.Financial assets are measured at fair value for the initial recognition but if the receivables or receivables financing arising from the
sale of goods or the provision of services do not include a significant financing component or the financing component that does not
exceed one year isn’t considered it shall be initially measured at the transaction value.For financial assets measured at fair value and whose changes are included in the current profit or loss related transaction costs 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.
2)Classification and initial measurement of financial liabilities
The financial liabilities of the Company are classified as financial liabilities measured at fair value and whose changes are included 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.
(2) Subsequent measurement
1) The subsequent measurement of financial assets depends on their classification:
* Financial assets measured at amortized cost
The Company classifies the financial assets that meet the following conditions and are not designated as financial assets measured 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 will be only used to pay for the
principal and interest based on the outstanding principal amount.After initial recognition such financial assets are measured at amortized cost with the effective interest method. Gains or 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 are not 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 used to pay for 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 with the effective interest method are included in profit or loss for the period and other gains or
losses are included in other comprehensive income. At the time of derecognition the accumulated gains or losses previously included
in other comprehensive income shall be carried forward from other comprehensive income to 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
121WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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 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.
2) The subsequent measurement of financial liabilities depends on their classification：
* Financial liabilities measured at fair value and with variation reckoned into current gains/losses
Financial liabilities measured at fair value and with variation reckoned into current gains/losses include tradable financial liabilities
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 at amortized cost
Other financial liabilities are subsequently measured at amortized cost with the effective interest method. The gain or loss arising
from de-recognition or amortization is included in current profit or loss.
(3) Transfer and derecognition of financial instruments
1) Transfer and derecognition of financial assets
For financial assets that the Company has transferred almost all risks and rewards of ownership of financial assets to the transferee
terminate the recognition of the financial assets; if almost all the risks and rewards of ownership of financial assets have 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.For those who continue to be involved by providing financial guarantees for the transferred financial assets the assets formed by
further involvement shall be recognized based on the lower of the book value of the financial assets and the amount of financial
guarantees. The financial guarantee amount refers to the highest amount of consideration received that will be required to be repaid.
2) General principles for derecognition of financial instruments
If the following conditions are met the company will derecognize the financial assets (or a portion of financial assets or a group of
similar financial assets) that is charge off them from their accounts and balance sheets:
* The right to receive cash flows from financial assets has expired;
122WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
* The right to receive cash flows from financial assets has been transferred or assume the obligation to timely and fully pay the cash
flows received to the third party under a “pass-through agreement”; and (a) substantially transferred almost all the risks and rewards
of ownership of the financial asset or (b) relinquished control over the financial asset even though substantially neither transferred
nor retained almost all the risks and rewards of ownership of the financial asset.In case the liability for financial liabilities has been fulfilled revoked or expired such financial liabilities shall be derecognized. If
the existing financial liability is replaced by another financial liability with substantially different terms by the same creditor or if the
terms of the existing liability are substantially modified such replacement or modification shall be treated as derecognition of the
original liability and recognition of new liability and the difference shall be booked into the current period’s profit and loss.The financial assets which are bought or sold in a conventional manner shall be recognized or derecognized according to the
accounting on the transaction date. Buying and selling financial assets in a conventional manner refers to the purchase or sale of
financial assets in accordance with contractual provisions and the terms of the contract stipulate that financial assets are delivered
according to the time schedule usually determined by regulations or market practices. The trading day refers to the date on which the
company promises to buy or sell financial assets.
(4) Balance-out between the financial assets and liabilities
As the company has the legal right to balance out the financial liabilities by the net or liquidation of the financial assets the balance-
out sum between the financial assets and liabilities is listed in the balance sheet. In addition the financial assets and liabilities are
listed in the balance sheet without being balanced out.
(5) Fair value of financial instruments
For financial instruments with active markets their fair value shall be determined based on their quoted prices in the active market.For financial instruments that do not have an active market their fair value shall be determined with valuation techniques. At the
time of valuation the company adopts valuation techniques that are applicable in the current situation and have sufficient available
data and other information support selects input values that are consistent with the asset or liability characteristics considered by
market participants in the transaction of related assets or liabilities and uses relevant observable input values as much as possible
and use unobservable input values when relevant observable input values cannot be obtained or are not feasible.
(6) Impairment of financial instruments
Based on expected credit losses the company withdraws provisions for impairment loss and recognizes credit impairment losses for
financial assets measured at amortized cost debt instrument investments measured at fair value with changes recognized in other
comprehensive income and financial guarantee contracts.For accounts receivable bills receivable and accounts receivable financing that do not contain significant financing components the
company adopts a simplified measurement method to measure the provision for impairment losses based on the expected credit loss
amount in the entire existence period.For accounts receivable notes receivable and accounts receivable financing that contain significant financing components the
company chooses to use a simplified measurement method to measure the provision for losses based on the expected credit loss
amount equivalent to the entire existence period.For financial assets other than those using simplified measurement methods mentioned above the Company assesses on each
balance sheet date whether their credit risk has significantly increased since initial recognition. If credit risk has not significantly
increased since initial recognition and is in the first stage the Company measures loss provisions based on the expected amount of
credit loss in the next 12 months; If credit risk has significantly increased since initial recognition but credit impairment has not
yet occurred and is in the second stage the company measures the provision for losses at an amount equivalent to the expected
credit loss for the entire existence period; Financial instruments that have experienced credit impairment since initial recognition
are in the third stage and the company measures the provisions for impairment loss based on expected credit losses over the entire
existence period.
123WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
For financial instruments with lower credit risk on the balance sheet date the Company assumes that their credit risk has not
significantly increased since initial recognition and measures loss provisions based on expected credit losses over the next 12 months.Except for accounts receivable that are individually assessed for credit risk our company divides other accounts receivable into
several portfolios based on credit risk characteristics and calculates expected credit losses on the basis of these combinations.Accounts receivable that are individually assessed for credit risk such as those in dispute with the other party or involved in
litigation or arbitration; there are clear indications that the debtor may not be able to fulfill their repayment obligations for accounts
receivable etc.Due to similar credit risk characteristics no provision for bad debts is made for accounts receivable between companies within the
scope of our consolidated financial statements that have no impairment in a single test.Except for separately evaluating credit risk accounts receivable the company divides accounts receivable into different portfolios
based on common risk characteristics and evaluates credit risk on the basis of the portfolio. The specific basis for determining
different portfolios and methods for measuring expected credit losses are as follows:
Item Basis for determining the portfolio Specific methods for measuring expected credit losses
For accounts receivable within six months the company
does not provide for expected credit losses; In addition the
Accounts receivable company believes that the credit risk of the bank acceptance
financing - bank acceptance Bank acceptance bill bills it holds is relatively low and will not cause significant
bill portfolio losses due to bank defaults. Therefore the expected credit
losses shall not be measured for the corresponding
receivables financing bank acceptance portfolio.For accounts receivable within six months the company
does not provide for expected credit losses; In addition the
credit risk of the commercial acceptance bills held by our
Accounts receivable - company is relatively low as these bills are mainly issued
commercial acceptance bill Commercial acceptance bill by reputable automobile manufacturers. Based on historical
portfolio experience there have been no significant defaults.Therefore the company doesn’t measure expected credit
losses for the portfolio of accounts receivable and
commercial acceptance bills
Accounts receivable other than
accounts receivable from internal
Accounts Receivable -
related parties and those for which Measure expected credit losses based on aging
Customer Portfolio
credit impairment losses have been
individually provisioned
Other receivables except for accounts Based on historical credit loss experience combined with
Other receivables - receivable from internal related parties current conditions and predictions of future economic
accounts receivable other and accounts for which credit conditions the expected credit loss is calculated by default
portfolio impairment losses have been risk exposure and the expected credit loss rate for the next
individually provisioned 12 months or the entire duration.For accounts receivable that are measured for expected credit losses based on their aging their aging is calculated continuously from
the initial recognition date of the debt. The corresponding provision ratio for expected credit losses at different aging stages is as
follows:
Aging Provision ratio (%)
Within 6 months --
6 months - 1 year 10.00
1 - 2 years 20.00
2 -3 years 40.00
Over three years 100.00
12. Note receivable
Note receivable 1: bank acceptance bill
124WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Note receivable 2: commercial acceptance bill
The Company calculates expected credit losses by referring to historical credit loss experience taking into account current conditions
and forecasts of the future economic situation.
13. Account receivable
Account receivable 1: receivable from clients
Account receivable 2: receivable from internal related party
The Company calculates expected credit losses by referring to historical credit loss experience taking into account current conditions
and forecasts of the future economic situation.
14. Receivable financing
The note receivable and account receivable which are measured at fair value and whose changes are included in other comprehensive
income are classified as receivables financing within one year(inclusive) from the date of acquisition. Refer to more relevant
accounting policies in NoteV. 11. “Financial Instrument”.
15. Other account receivables
Determination method of expected credit loss and accounting treatment
Other account receivables 1: receivable from internal related party
Other account receivables 2: receivable from others
The Company calculates expected credit losses by referring to historical credit loss experience taking into account current conditions
and forecasts of the future economic situation.
16. Contract assets
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” account and credit the “contract asset impairment provision” account 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. 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.
125WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
(3) Recognition evidence for net realizable value of inventories and withdrawal method for inventory impairment provision
Inventories 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 withdrawn 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 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
The company adopts a perpetual inventory system and conducts regular physical inventory checks.
(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.
18. Assets held for sale
The Company classifies non-current assets or disposal groups that meet all of the following conditions as held-for-sale: according 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.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 their 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 firstly deduct the carrying value of the goodwill in the disposal group 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
126WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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 assets 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.
19. 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 at fair value and with variation reckoned into
current gains/losses. As for other accounting policies found more in Note V -11. “Financial instrument”.
(1) Determination of initial investment cost
Investment costs of the long-term equity investment are recognized by the follow according to different way of acquirement:
* For a long-term equity investment acquired through a business combination involving enterprises under common control the
initial investment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of the owner’s
equity under the consolidated financial statements of the ultimate controlling party on the date of combination. The difference
between the initial cost of the long-term equity investment and the cash paid non-cash assets transferred as well as the book value of
the debts borne by the absorbing party shall offset against the capital reserve. If the capital reserve is insufficient to offset the
retained earnings shall be adjusted. If the consideration of the merger is satisfied by issue of equity securities the initial investment
cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of the owner’s equity under the
consolidated financial statements of the ultimate controlling party on the date of combination. With the total face value of the shares
issued as share capital the difference between the initial cost of the long-term equity investment and total face value of the shares
issued shall be used to offset against the capital reserve. If the capital reserve is insufficient to offset the retained earnings shall be
adjusted. For business combination resulting in an enterprise under common control by acquiring equity of the absorbing party under
common control through a stage-up approach with several transactions these transactions will be judged whether they shall be
treated as “package deal”. If they belong to “package deal” these transactions will be accounted for a transaction in obtaining control.If they are not belonging to “package deal” the initial investment cost of the long-term equity investment shall be the absorbing
party’s share of the carrying amount of the owner’s equity under the consolidated financial statements of the ultimate controlling
party on the date of combination. The difference between the initial cost of the long-term equity investment and the aggregate of the
carrying amount of the long-term equity investment before merging and the carrying amount the additional consideration paid for
further share acquisition on the date of combination shall offset against the capital reserve. If the capital reserve is insufficient to
offset the retained earnings shall be adjusted. Other comprehensive income recognized as a result of the previously held equity
investment accounted for using equity method on the date of combination or recognized for available-for-sale financial assets will not
127WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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 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 “package deal”. If they belong to “package deal” these transactions will be accounted for a transaction in obtaining control. If they
are not belonging to “package deal” the initial investment cost of the long-term equity investment accounted for using cost method
shall be the aggregate of the carrying amount of equity investment previously held by the acquire and the additional investment cost.For previously held equity accounted for using equity method relevant other comprehensive income will not be accounted for. 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 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
128WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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 itsassociates or joint ventures relevant transaction shall be accounted for in accordance with “Accounting Standards for BusinessEnterprises No. 20 “Business combination”. All profit or loss related to the transaction shall be accounted for.The Group’s share of net losses of the invested party shall be recognized to the extent that the carrying amount of the long-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.* 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 be accounted for in accordance with the relevant accounting policies as described in
Note V-7. “Criteria for judging control and preparation method for consolidated financial statement”.On disposal of a long-term equity investment otherwise the difference between the carrying amount of the investment and the 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
129WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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 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 “package deal” each transaction shall be accounted for as a single transaction of
disposing equity investment of subsidiary and loss of control. The difference between the disposal consideration for each transaction
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) 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. When determining whether there is joint
control firstly judge whether all the participants or participant group have controlling over such arrangement as a group or not and
then judge whether the decision-making for such arrangement are agreed unanimity by the participants or not.Significant influence is the power of the Company to participate in the financial and operating policy decisions of an invested party
but to fail to control or joint control the formulation of such policies together with other parties. When determining whether
significant influence can be exerted on the invested entity 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 considered.
130WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
20. Investment real estate
Measurement model of investment real estate
Cost measurement
Depreciation or amortization
Investment real estate is stated at cost. The cost of externally purchased properties held-for-investment includes purchasing price
relevant taxes and surcharges and other expenses which are directly attributable to the asset. Cost of self construction of 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 investment real estate is subsequently measured by the Company with cost method. The depreciation and amortization is
calculated with the straight-line method on the basis of their estimated useful lives.
21. Fixed assets
(1) Recognition conditions
Fixed assets refer to the tangible assets for production of products provision of labor lease or operation with a service life longer
than one year and higher unit value.
(2) Depreciation methods
Category Depreciation method Years of depreciation Scrap value rate Yearly depreciation rate
Permanent ownership land Straight-line depreciation Indefinite No depreciation
House and building Straight-line depreciation 20~35 5% 2.71~4.75
Machinery equipment Straight-line depreciation 10 5% 9.50
Transportation equipment Straight-line depreciation 4~5 5% 19.00~23.75
Electronic and other equipment Straight-line depreciation 3～10 5% 9.50～31.67
For the fixed assets with impairment provision the depreciation amount shall be calculated after deducting the accumulated amount
of impairment provision for fixed assets
The Company shall review the useful life estimated net residual value and depreciation method of fixed assets at least at the end of
each fiscal year and make necessary adjustments.
22. Construction in progress
From the date on which the fixed assets built by the Company come into an expected usable state the construction in progress 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.
23. Borrowing cost
(1) Recognition of capitalization of borrowing cost
Borrowing costs comprise interest occurred amortization of discounts or premiums ancillary costs and exchange differences in
131WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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
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) Measurement 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 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.
24. Intangible assets
(1) Service life and its determination basis estimate amortization method or review procedure
(1) Service life and its determination basis estimate amortization method or review procedure
* Measurement of intangible assets
The intangible assets of the Company include land use rights patented technology and non-patents technology etc.The cost of a purchased intangible asset shall be determined by the expenditure actually occurred and other related costs.The cost of an intangible asset contributed by an investor shall be determined in accordance with the value stipulated in 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:
The land use rights of the company shall be amortized on an average basis over the transfer period from the date of transfer (the date
of obtaining the land use rights); Patented technology non-patented technology and other intangible assets of the Company are
132WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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.Our company shall review the useful life and amortization method of intangible assets at least at the end of each fiscal year and
make necessary adjustments.
(2) The collection scope and related accounting treatment methods of R&D expenditure
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.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
133WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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.
26. Long-term deferred expense
Long-term expenses to be amortized of the Company implies the expenses that are already charged and with the beneficial term 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 provides service to the Company the short-term remuneration actual occurred shall be
recognized as liability and be reckoned into current gains/losses. During the accounting period when staff provides service to the
Company the actual short-term compensation occurred shall be recognized as liabilities and be reckoned into current gains/losses
except for those in line with accounting standards or being allowed to be reckoned into capital costs; the welfare occurred shall be
reckoned into current gains/losses or relevant assets costs at the time of actual occurrence. The employee compensation shall be
recognized as liabilities and be reckoned into current gains/losses or relevant assets costs at the time of actual occurrence. The
employee benefits that belong to non-monetary benefits are measured at fair value; the social insurances including the medical
insurance work-injury insurance and maternity insurance and the housing fund that the enterprise pays for the employees as well as
the labor union expenditure and employee education funds withdrawn by relevant provisions should be calculated and determined as
the corresponding compensation amount and determined the corresponding liabilities in accordance with the specified withdrawing
basis and proportion and be reckoned in the current profits and losses or relevant asset costs in the accounting period that the
employees provide services.
(2) Accounting treatment for post-employment benefit
The post-employment benefit includes the defined contribution plans and defined benefit plans. Post-employment benefits plan refers
to the agreement about the post-employment benefits between the enterprise and employees or the regulations or measures the
enterprise established for providing post-employment benefits to employees. The defined contribution plan refers to the post-
employment benefits plan that the enterprise doesn’t undertake the obligation of payment after depositing the fixed charges to the
independent fund; the defined benefit plans refers to post-employment benefits plans except the defined contribution plan.
(3) Accounting treatment for retirement benefits
In case the Company terminates the employment relationship with employees before the end of the employment contracts or 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
134WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Company cannot revoke unilaterally compensation for dismissal due to the cancellation of labor relationship plans and employee
redundant proposals; and the Company recognize cost and expenses related to payment of compensation for dismissal and
restructuring whichever is earlier.The early retirement plan shall be accounted for in accordance with the accounting principles for
compensation for termination of employment. The salaries or wages and the social contributions to be paid for the employees who
retire before schedule from the date on which the employees stop rendering services to the scheduled retirement date shall be
recognized (as compensation for termination of employment) in the current profit or loss by the Group if the recognition principles
for provisions are satisfied.
(4) Accounting treatment for other long-term employee benefits
Except for the compulsory insurance the Company provides the supplementary retirement benefits to the employees satisfying
certain conditions the supplementary retirement benefits belong to the defined benefit plans and the defined benefit liability
confirmed on the balance sheet is the value by subtracting the fair value of plan assets from the present value of defined benefit
obligation. The defined benefit obligation is annually calculated with the expected accumulated welfare unit method by the
independent actuary on the basis of treasury bond rate with similar obligation term and currency. The service charges related to the
supplementary retirement benefits (including the service costs of the current period the previous service costs and the settlement
gains or losses) and the net interest are reckoned in the current profits and losses or other asset costs the changes generated by
recalculating the net liabilities of defined benefit plans or net assets should be reckoned in other consolidated income.
29. Accrued liability
(1) Recognition principle
An obligation related to a contingency such as guarantees provided to outsiders pending litigation or arbitration product warranties
redundancy plans onerous contracts reconstructing expected disposal of fixed assets etc. shall be recognized as an 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
30. 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 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
135WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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 period and the fair
value of the liabilities assumed to increase the corresponding liabilities. On each balance sheet date and settlement date before the
settlement of the relevant liabilities the fair value of the liabilities is remeasured and the changes are included in the current profit
and loss.
31. Revenue
(1) Accounting policies used in revenue recognition and measurement
1)Revenue recognition principle
On the starting date of the contract the company evaluates the contract identifies each individual performance obligation 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.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
in progress 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
136WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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 received 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.
(2) The Company's criteria for the recognition of commodity income and specific criteria for the recognition time:
The Company's domestic sales revenue recognition time: The company shall deliver the goods according to the agreement of the
order and check with the buyer the goods received and inspected by the buyer from the previous reconciliation date to the current
reconciliation date. After the check by both parties the risks and rewards shall be transferred to the buyer. The Company shall issue
invoices to the buyer according to the varieties quantities and amounts confirmed by the reconciliation and confirm the realization of
sales income on the reconciliation date.The Company's foreign sales revenue recognition time: after the completion of the customs audit the company in accordance with
the export date specified in the customs declaration to confirm the realization of sales revenue.Differences in accounting policies for revenue recognition due to different operating models for the same type of business
Nil
32. Government grants
(1) Types
Government grants are transfer of monetary assets or non-monetary assets from the government to the Group at no consideration.Government grants are classified into government grants related to assets and government grants related to income.As for the assistance object not well-defined in government’s documents the classification criteria for assets-related or income-
related grants are as: whether the grants turn to long-term assets due to purchasing for construction or other means.
(2) Recognition and measure
The government grants shall be recognized while meet the additional conditions of the grants and amount is actually can be obtained.If a government grant is in the form of a transfer of monetary asset the item shall be measured at the amount received or receivable.If a government grant is in the form of a transfer of non-monetary asset the government grant shall be measured at fair value and it
shall be measured by nominal amount in case the fair value can not be reliably acquired.
137WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
(3) Accounting treatment
The 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.The government grant related to income which is used to make up relevant expenses and losses for later period shall be recognized as
deferred income and be reckoned into current gain/loss during the period while relevant expenses are recognized; The government
grant related to income which is used to make up relevant expenses and losses that occurred shall be reckoned into current
gains/losses.The government grant related to daily operation activity of the Company should be reckoned into other income; those without related
to daily operation activity should be reckoned into non-operation income and expenses.The financial discount funds received by the Company shall be used to write down relevant borrowing costs.
33. Deferred income tax assets/Deferred income tax liabilities
The company adopts the balance sheet debt method to calculate deferred income tax based on the temporary difference between the
book value and tax basis of assets and liabilities on the balance sheet date as well as the temporary difference between the book
value and tax basis of items that have not been recognized as assets and liabilities but can be determined according to tax laws.All types of taxable temporary differences are recognized as deferred income tax liabilities unless: * taxable temporary differences
arise in the following transactions: initial recognition of goodwill or initial recognition of assets or liabilities arising from a single
transaction with the following characteristics: the transaction is not a business merger. When the transaction occurs it neither affects
accounting profits nor taxable income or deductible losses and the initially recognized assets and liabilities do not result in equal
taxable temporary differences and deductible temporary differences; * For taxable temporary differences related to investments in
subsidiaries joint ventures and associates the timing of the reversal of such temporary differences can be controlled and it is likely
that such temporary differences will not be reversed in the foreseeable future.For deductible temporary differences that can be carried forward deductible loss in future years or deduce taxes the Company
recognizes deferred income tax assets based on the future taxable income that is likely to be obtained to offset the deductible
temporary differences deductible losses and tax deductions that can be carried forward to future years unless: * the deductible
temporary differences arise from a single transaction that is not a business merger. The transaction does not affect accounting profits
or taxable income or deductible losses at the time of occurrence and the initially recognized assets and liabilities do not result in
equivalent taxable temporary differences or deductible temporary differences. * For deductible temporary differences related to
investments in subsidiaries joint ventures and associates such temporary differences are likely to be reversed in the foreseeable
future and are likely to receive taxable income to be used to offset such temporary differences.On the balance sheet date the company measures deferred income tax assets and liabilities in accordance with tax laws and
regulations at the applicable tax rate during the expected period of asset recovery or liability settlement and reflects the tax impact
of the expected method of asset recovery or liability settlement on the balance sheet date.On the balance sheet date the company reviews the book value of deferred income tax assets. If it is likely that sufficient taxable
income will not be available in the future to offset the benefits of deferred income tax assets the book value of deferred income tax
assets will be written down. On the balance sheet date the Company reassesses unconfirmed deferred income tax assets and
recognizes deferred income tax assets to the extent that sufficient taxable income is likely to be available for the reversal of all or part
of the deferred income tax assets.When the following conditions are met simultaneously deferred income tax assets and deferred income tax liabilities are presented at
the net amount after offsetting: having the legal right to settle current income tax assets and current income tax liabilities at the net
amount; Deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same tax collection
and management department on the same taxable entity or on different taxpayers. However in the period during which significant
138WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
deferred income tax assets and deferred income tax liabilities are reversed in the future the involved taxpayers intend to settle the
current income tax assets and liabilities on a net basis or acquire assets and settle debts simultaneously.
34. Lease
Lease refers to a contract in which the lessor transfers the right to use assets to the lessee for consideration within a certain period 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
On the commencement date of the lease term the company recognizes leases with a lease term not exceeding 12 months and
excluding purchase options as short-term leases; Leases with lower value when a single leased asset is considered a brand new asset
are recognized as low value asset leases.If the company subleases or expects to sublease leased assets the original lease is not recognized as a low value asset lease.For all short-term leases and low value asset leases the Company recognizes lease payments in the relevant asset cost or current
profit and loss on a straight-line basis during each period of the lease term.Except for the simplified short-term leases and low value asset leases mentioned above the Company recognizes the right-of-use
assets and lease liabilities for leases on the commencement date of the lease term.
1) Right-of-use assets
The right-of-use asset refers to the right of the lessee to use the leased asset during the lease term.On the commencement date of the lease term the right-of-use asset is initially measured at cost. This cost includes:
* The initial measurement amount of lease liabilities; * If the lease payment is made on or before the start date of the lease term and
the relevant amount of the lease incentive already enjoyed shall be deducted in case there is a lease incentive; * The initial direct
expenses incurred by the lessee; * The expected cost incurred by the lessee in dismantling and removing the leased asset restoring
the site where the leased asset is located or restoring the leased asset to the state agreed upon in the lease terms. The company
recognizes and measures the cost in accordance with the recognition standards and measurement methods for estimated liabilities as
detailed in Note V-29 “Accrued liability”. The aforementioned costs incurred for the production of inventory will be included in the
inventory cost.The depreciation of right-of-use assets is classified and provisioned with the straight-line method. In case it can reasonably determine
that ownership of the leased asset will be obtained upon the expiration of the lease term the depreciation rate shall be determined
based on the category of the right-of-use asset and the estimated net residual value rate within the expected remaining useful life of
the leased asset; In case it cannot reasonably determine that ownership of the leased asset will be acquired upon the expiration of the
lease term the depreciation rate shall be determined based on the category of the right-of-use asset during the shorter of the lease
term and the remaining useful life of the leased asset.
2)Lease liability
Lease liabilities shall be initially measured at the present value of the lease payments that have not yet been paid on the
commencement date of the lease term. The lease payment amount includes the following five items: * fixed payment amount and
substantial fixed payment amount. If there is a lease incentive the relevant amount of the lease incentive shall be deducted; *
Variable lease payments depending on index or ratio; * The exercise price of the purchase option provided that the lessee
reasonably determines that the option will be exercised; * The amount to be paid for exercising the option to terminate the lease
provided that the lease term reflects that the lessee will exercise the option to terminate the lease; * The expected amount to be paid
139WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
based on the residual value of the guarantee provided by the lessee.When calculating the present value of lease payments the interest rate implicit in the lease is used as the discount rate. If the interest
rate implicit in the lease cannot be determined the company’s incremental borrowing rate is 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.
(2) The company as lessor
On the lease commencement date the company classifies leases that have substantially transferred almost all the 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 lease receipts is recognized by the company as rental income with 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 booked in the current profits and losses when actually incurred.
2) Finance lease
On the beginning date of the lease term the financial lease receivables is recognized by the company according to the net amount 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) Accounting treatment of lease changes
1) Lease change as a separate lease
If there is a change in lease and the following conditions are met simultaneously the company will treat the lease change as a
separate lease for accounting treatment: * 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 individual price for the expansion of the lease scope adjusted according to
the situation of the contract.
2) Lease change not treated as a separate lease
* the company as the lessee
On the effective date of the lease change the company re-determines the lease term and uses the revised discount rate to discount the
revised lease payment amount in order to remeasure the lease liability. When calculating the present value of lease payments after
changes the implicit interest rate of the remaining lease period is used as the discount rate; If the implicit interest rate of the
remaining lease term cannot be determined the incremental loan interest rate on the effective date of the lease change shall be used
as the discount rate.Regarding the impact of the lease liability adjustment mentioned above distinguish the following situations for accounting treatment:
A. If the lease change results in a reduction in the lease scope or lease term the book value of the right-of-use assets shall be reduced
and the relevant gains/losses arising from partial or complete termination of the lease shall be recognized in the current profit and
loss;
140WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
B. For other lease changes the book value of the right-of-use assets shall be adjusted accordingly.* The company as the lessor
If there is a change in the operating lease the company will treat it as a new lease for accounting treatment from the effective date of
the change. The advance receipts or receivable lease payments related to the lease before the change are considered as the new lease
payments.If the change in financing lease is not accounted for as a separate lease the Company will treat the changed lease as follows: if the
lease change takes effect on the lease commencement date and the lease will be classified as an operating lease the Company will
treat it as a new lease from the effective date of the lease change and use the net lease investment before the effective date of the
lease change as the book value of the leased asset; If the lease change takes effect on the lease commencement date and the lease
will be classified as a financing lease the company will conduct accounting treatment in accordance with the provisions on
modifying or renegotiating the contract.
(4) Sale leaseback
The company evaluates and determines whether the asset transfer in the sale leaseback transaction is a sale in accordance with the
accounting standards for Business Enterprises No. 14 - revenue.
1) The company as lessee
If the asset transfer in the sale leaseback transaction is a sale the company measures the right-to-use assets formed by the sale 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 leaseback transaction is not a sale the company will continue to recognize the transferred asset and
meanwhile 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 leaseback transaction is a sale 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 leaseback transaction is not a sale 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.
35. Other major accounting policy and estimation
Nil
36. Changes of important accounting policies and estimation
(1) Changes of important accounting policies
□Applicable □Not applicable
(1) Significant accounting policy changes
Accounting treatment for deferred income tax related to assets and liabilities arising from individual transactions not subject to initial
recognition exemption:
On November 30 2022 the Ministry of Finance issued the Interpretation No. 16 of the Accounting Standards for Enterprises
(CK[2022] No. 31 hereinafter referred to as “Interpretation No. 16”).
According to Interpretation No. 16 for individual transactions that are not business combinations and do not affect accounting profits
or taxable income (or deductible losses) at the time of transaction and the initially recognized assets and liabilities result in equal
141WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
taxable temporary differences and deductible temporary differences (including leasing transactions in which the lessee initially
recognizes the lease liability and books it in the right-of-use asset on the lease term start date as well as transactions in which the
lessee recognizes the expected liability and books it in the cost of related assets due to abandonment obligations of fixed assets etc.)
the provisions exempting the initial recognition of deferred income tax liabilities and deferred income tax assets are not applicable.Enterprises should recognize the corresponding deferred income tax liabilities and deferred income tax assets separately in
accordance with Accounting Standards for Enterprises No. 18- Income Tax and other relevant provisions at the time of transaction.This regulation will come into effect since January 1 2023. For individual transactions that apply this regulation that occur between
the beginning and the implementation date of the earliest period in which this regulation is first implemented in financial statements
the lease liabilities and the right-of-use assets recognized at the beginning of the earliest period in financial statements due to the
application of this regulation in individual transactions as well as the expected liabilities and corresponding assets related to
abandonment obligations if there are taxable temporary differences and deductible temporary differences the company shall make
adjustments in accordance with this regulation. The implementation of this regulation will not have any impact on the amounts of
each account in the company’s financial statements as of January 1 2023 but will have an impact on the presentation of the notes to
the financial statements as of January 1 2023 as follows:
Note 20 to the consolidated financial statements: Deferred tax assets/deferred tax liabilities:
(1) Deferred tax assets that have not been offset:
December 31 2022 Affected amount January 1 2023
Deductible Deductible Deductible
Item Deferred tax Deferred tax Deferred tax
temporary temporary temporary
assets assets assets
differences differences differences
Lease liabilities 1345462.74 234721.68 13227441.18 2578204.66 14572903.92 2812926.34
(2) Deferred income tax liabilities that have not been offset
December 31 2022 Affected amount January 1 2023
Taxable Taxable Taxable
Item Deferred tax Deferred tax Deferred tax
temporary temporary temporary
liabilities liabilities liabilities
differences differences differences
Right-of-use
----13227441.182578204.6613227441.182578204.66
assets
(3) Deferred tax assets or liabilities presented as net after offsetting:
December 31 2022 Affected amount January 1 2023
Ending
Offset between Offset amount
balance of Balance of
deferred income Offset amount between deferred Opening balance of
Item deferred deferred income tax assets and between deferred income tax assets deferred income tax
income tax tax assets or
liabilities offset income tax assets and liabilities at assets or liabilities
assets or liabilities after
at the end of the and liabilities the beginning of after offsetting
liabilities offset
period the period
after offset
Deferred
126261238.77275627772.452578204.66--128839443.43275627772.45
tax assets
Deferred
126261238.7740149550.992578204.66--128839443.4340149550.99
tax liability
Note to the main items in the financial statements of the parent company: Nil.
(2) Changes of important accounting estimation
□Applicable □ Not applicable
(3) Implementation of new accounting standards adjustment for the first time starting from 2023 and
implementation of relevant financial statement items at the beginning of the year for the first time
□Applicable □Not applicable
142WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
37. Significant accounting judgments and estimates
In the process of applying the Company’s accounting policies due to the inherent uncertainty of business activities the Company
needs to judge estimate and assume the book value of the entries of financial statements which 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. 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 shall be 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 uses 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 depreciation reserve
According to the inventory accounting policy the company measures inventory at the lower of cost and net realizable value. For
inventory with costs higher than net realizable value as well as obsolete and unsold inventory the inventory depreciation reserve
shall be made. The inventory devalues to the net realizable value by evaluating the inventory’s vendibility and net realizable value.To identify the inventory impairment the management needs to obtain the unambiguous evidences and consider the purpose to 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 and 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 calculating the present value. When
estimating the recoverable amount the Company shall adopt all relevant information obtained including the prediction related to the
143WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
output price and related operating expenses based on the reasonable and supportable assumptions.The Company tests whether its business reputation decreases in value every year which requires to estimate the present value of 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 with the straight-line method in
the service life after considering the residual value. The Company regularly 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
For financial instruments that there is no active market to provide quotes valuation techniques shall be used to determine fair value.Valuation techniques include the latest transaction information discounted cash flow methods and option pricing models 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 applies the market information as much as possible and applies
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.
38. Others
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) 22%(VHIO，VAT VAT is calculated based on the difference after deducting the Italy)21%(BoritBelgium) 13% 9%
input tax available for deduction for the current period 6% Collection rate 5%
City maintaining &
Turnover tax payable 7%5%
construction tax
15%20%21%22%25%24%+
Corporation income tax Taxable income
regional tax 3.9%
Educational surtax Turnover tax payable 5%
Disclose reasons for different taxpaying objects:
144WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Taxpaying body Income tax rate
The Company WFJN WFLD WFTT WFMA WFAM WFSC WFSC WFLD(Chongqing) 15%
WFLD(Wuhan) WFLD(Nanchang) 20%
IRD America Borit America 21%
IRD(Denmark) 22%
WFCA WFTR WFDT WFQL VHWX WFAS Borit(Belgium) 25%
VHIO(Italy) 24% + Regional tax 3.9%
2. Tax incentives
The Company WFJN WFLD WFTT and WFMA are recognized as high-tech enterprises in 2023 and enjoy a preferential income
tax rate of 15% from January 1 2023 to December 31 2025. WFAM is recognized as a high-tech enterprise in 2021 and will enjoy a
preferential income tax rate of 15% from January 1 2021 to December 31 2023. WFSC is recognized as a high-tech enterprise in
2022 and will enjoy a preferential income tax rate of 15% from January 1 2022 to December 31 2024.
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 the year of 2023 WFLD (Chongqing) paid its corporate income tax at the tax rate of
15%.
In 2023 WFLD (Wuhan) WFLD (Nanchang) was a qualified small and low-profit enterprises. According to the Announcement on
Further Supporting the Development of Small and Micro Enterprises and Individual Businesses Related to Tax Policies
(Announcement No. 12 of the Ministry of Finance and the State Administration of Taxation in 2023) the taxable income of small
and micro profit enterprises will be calculated at a reduced rate of 25% and the enterprise income tax policy will be paid at a tax rate
of 20% which will be extended until December 31 2027.
3. Other
Nil
VII. Notes to major items in consolidated financial statements
1. Monetary funds
In RMB
Item Ending balance Opening balance
Cash on hand 6343.24 51818.51
Cash in bank 2241980351.17 2304848889.90
Other Monetary funds 32785004.73 84651222.35
Total 2274771699.14 2389551930.76
Including: total amount of funds deposited overseas 126839309.52 324409336.06
Other explanation
The ending balance of other monetary fund includes RMB 22174151.94 deposited in the bank acceptance deposit Mastercard
earnest money RMB 210720.00 in-transit dividends RMB 1309380.00 IRD performance bond RMB 7902000.00 in-transit
145WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
foreign exchange fund RMB 1184752.79 and ETC freezing RMB 4000.00. The in-transit dividends RMB 1309380.00 was a
portion of the dividend distributed by Miracle Automation (002009) a trading financial asset held by the company from 2017 to
2023 which was not transferred to the company’s current account due to account issues.
2. Trading financial asset
In RMB
Item Ending balance Opening balance
Financial assets measured at fair value and whose changes are
2391487144.962718820654.87
included in current profit or loss
Including:
SNAT 76756716.00 78834732.00
Miracle Automation 71073900.00 66693600.00
Lifan Technology 48516.34
Toyze Auto 462414.48
Other debt and equity instrument investments 2243656528.96 2572781392.05
Including：
Total 2391487144.96 2718820654.87
3. Note receivable
(1) Classification of notes receivable
In RMB
Item Ending balance Opening balance
Trade acceptance bill 144976174.84 135559024.27
Total 144976174.84 135559024.27
(2) Classification of accrued bad debt reserve
In RMB
Ending balance Opening balance
Bad debts Bad debts
Book balance Book value
Categor reserve reserve
y
Accru Book value Accru Book value
Amou Amou
Amount Ratio ed Amount Ratio ed
nt nt
ratio ratio
Includin
g:
Note
receivab
le with
bad debt
144976174100.00144976174135559024100.00135559024
provisio
n .84 % .84 .27 % .27
accrued
on
portfolio
Includin
g:
146WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Portfolio
1: bank
acceptan
ce bill
Portfolio
2: trade 144976174 100.00 144976174 135559024 100.00 135559024
acceptan .84 % .84 .27 % .27
ce bill
144976174100.00144976174135559024100.00135559024
Total.84%.84.27%.27
If the provision for bad debts of note receivable is made in accordance with the general model of expected credit losses:
□Applicable □Not applicable
(3) Bad debt provision accrued collected or reversal
Provision for bad debts in the current period:
□ Applicable □ Not applicable
(4) Notes receivable already pledged by the Company at the end of the period
In RMB
Item Amount pledge at period-end
Commercial acceptance bill 97820000.00
Total 97820000.00
(5) Notes endorsement or discount and undue on balance sheet date
Nil
(6) Note receivable actually charged off in the period
Nil
(7) Notes transfer to account receivable due for failure implementation by drawer at period-end
In RMB
Item Amount transfer to account receivable at period-end
Commercial acceptance bill 4270595.02
Other explanation
The commercial 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 BD Petrochemical Group Co. Ltd. and
the bills accepted by BD Petrochemical Group Finance Co. Ltd. (hereinafter referred to as “BD bills”).
4. Account receivable
(1) By account age
In RMB
Aging Ending book balance Opening book balance
Within one year (One year included) 3841921162.54 3118871487.62
Including: within 6 months 3732178445.50 3025753558.24
147WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
6 months to one year 109742717.04 93117929.38
1-2 years 26336964.64 19350208.92
2-3 years 13723160.78 8919358.15
Over 3 years 57510391.30 59823351.18
3-4 years 5607074.80 20264074.06
4-5 years 19615877.12 26120004.96
> 5 years 32287439.38 13439272.16
Total 3939491679.26 3206964405.87
(2) Accrued of bad debt provision
In RMB
Ending balance Opening balance
Book balance Bad debt reserve Book Book balance Bad debt reserve
Category
Accru value Accru Book
Amount Ratio Amount ed Amount Ratio Amount ed
value
ratio ratio
Account
receivable
with bad
debt
53281843.53281843.100.057806705.5780670100.0
provision 1.35% 1.80%
accrued 03 03 0% 14 5.14 0%
on a
single
basis
Including:
Account
receivable
with bad 3857
debt 38862098 98.65 28669878. 31491577 98.20 2166752 3127490
0.74%53990.69%
provision 36.23 % 03 00.73 % 3.48 177.25
accrued 58.20
on
portfolio
Including:
3857
39394916100.081951721.32069644100.079474223127490
Total 2.08% 5399 2.48%
79.260%0605.870%8.62177.25
58.20
Bad debt provision accrued on single basis: 53281843.03
In RMB
Openin balance Ending balance
Name Bad debt Bad debt
Book balance Book balance Accrued ratio Accrued causes
reserve reserve
Hubei Meiyang
Auto Industry 20139669.45 20139669.45 17610371.91 17610371.91 100.00% Difficult to recover
Co. Ltd.Hunan
Leopaard Auto 8367245.47 8367245.47 8077361.13 8077361.13 100.00% Difficult to recover
Co. Ltd.BD bills 7201691.00 7201691.00 4270595.02 4270595.02 100.00% Difficult to recover
Linyi Zotye
Automobile 6193466.77 6193466.77 6193466.77 6193466.77 100.00% Difficult to recover
Components
148WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Manufacturing
Co. Ltd.Tongling
Ruineng
4320454.34 4320454.34 4320454.34 4320454.34 100.00% Difficult to recover
Purchasing Co.Ltd.Brilliance
Automotive
Group 3469091.33 3469091.33 3469091.33 3469091.33 100.00% Difficult to recover
Holdings Co.Ltd.Dongfeng
Chaoyang 1823262.64 1823262.64 1823262.64 1823262.64 100.00% Difficult to recover
Diesel Co. Ltd.Jiangsu Kawei
Auto Industrial 1932476.26 1932476.26 1932476.26 1932476.26 100.00% Difficult to recover
Group Co. Ltd.Jiangsu Jintan
Automobile
1059798.43 1059798.43 1059798.43 1059798.43 100.00% Difficult to recover
Industry Co.Ltd.Tianjin Levol
Engine Co. 1018054.89 1018054.89 1018054.89 1018054.89 100.00% Difficult to recover
Ltd.Other clients 2281494.56 2281494.56 3506910.31 3506910.31 100.00% Difficult to recover
Total 57806705.14 57806705.14 53281843.03 53281843.03
Bad debt provision Accrued on portfolio: 28669878.03
In RMB
Ending balance
Name
Book balance Bad debt reserve Accrued ratio
Within 6 months 3730857043.84
6 months to one year 108718559.21 10871855.93 10.00%
1-2 years 26336964.64 5267392.93 20.00%
2-3 years 12944398.96 5177759.59 40.00%
Over 3 years 7352869.58 7352869.58 100.00%
Total 3886209836.23 28669878.03
Explanation on determining the basis for this portfolio:
The provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses:
□ Applicable □ Not applicable
(3) Bad debt provision accrued collected or reversal
Bad debt provision accrued in the period:
In RMB
Amount changed in the period
Opening
Category Collected or Ending balance
balance Accrued Charged off Other
reversal
Bad debt
79474228.625788060.033464139.3843813.01197384.8081951721.06
provision
Total 79474228.62 5788060.03 3464139.38 43813.01 197384.80 81951721.06
(4) Account receivable actually charged off in the Period
In RMB
149WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Item Amount charged off
Account receivable actually charged off 43813.01
(5) Top five receivables and contract assets at ending balance by arrears party
In RMB
Ending
Ending
balance of Ratio in total ending
balanc
Ending balance of account balance of account Ending balance of reserve for
Name e of
account receivable receivable receivables and contract bad debts and contract assets
contrac
and contract assets
t assets
assets
RBCD 686424501.80 17.43% 1017817.82
Robert Bosch
596846772.5615.15%782592.70
Company
Client 3 337776101.99 8.57% 1651960.47
Client 4 200972141.72 5.10% 76326.16
Client 5 127691257.56 3.24% 7633344.34
Total 1949710775.63 49.49% 11162041.49
5. Receivable financing
(1) Category of receivable financing
In RMB
Item Ending balance Opening balance
Bill receivable- bank acceptance bill 1661749949.46 1918368845.21
Total 1661749949.46 1918368845.21
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.
(2) Notes receivable already pledged by the Company at period-end：
In RMB
Item Amount pledge at period-end
Bank acceptance bill 568256134.85
Commercial acceptance bill
Total 568256134.85
(3) Notes endorsement or discount and undue on balance sheet date
In RMB
Amount not derecognized at period-
Item Amount derecognized at period-end
end
Bank acceptance bill 258965040.65
Commercial acceptance bill
150WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Total 258965040.65
(4) Receivable financing actually charged off in current period
Nil
(5) Increase/decrease of receivable financing and changes in fair value of receivable financing in current
period
Nil
(6) Other explanation
Nil
6. Other account receivables
In RMB
Item Ending balance Opening balance
Dividend receivable 147000000.00
Other account receivables 919684126.81 1117507456.47
Total 919684126.81 1264507456.47
(1) Interest receivable
1) Category of interest receivable
Nil
2) Significant overdue interest
Nil
3) Accrued of bad debt provision
□Applicable □Not applicable
4) Bad debt provision accrued collected or reversal
Nil
5) Interest receivable actually charged off in current period
Nil
151WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
(2) Dividend receivable
1) Category of dividend receivable
In RMB
Item (or invested enterprise) Ending balance Opening balance
Wuxi WFEC Catalyst Co. Ltd. 147000000.00
Total 147000000.00
2) Important dividend receivable with account age over one year
3) Accrued of bad debt provision
□Applicable □Not applicable
4) Bad debt provision accrued collected or reversal in current period
5) Dividend receivable actually charged off in current period
(3) Other accounts receivable
1) By nature
In RMB
Nature Ending book balance Opening book balance
Intercourse funds from units 4084594.65 1894818.08
Cash deposit 10215094.41 9087881.41
Staff loans and petty cash 904305.07 1823842.27
Social security and provident fund paid 12537832.68 11341820.83
WFTR “platform trade” business portfolio 2542263370.70 2741499131.95
Other 38770.10 66663.56
Total 2570043967.61 2765714158.10
2) By aging
In RMB
Aging Ending book balance Opening book balance
Within one year (One year included) 18850121.91 2758812664.93
Within 6 months 18448595.63 1919096046.09
6 months to one year 401526.28 839716618.84
1-2 years 2544896026.07 1358405.20
2-3 years 954984.11 2962710.00
Over 3 years 5342835.52 2580377.97
3-4 years 4524432.51 1987937.97
4-5 years 801603.01 0.00
Over 5 years 16800.00 592440.00
152WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Total 2570043967.61 2765714158.10
3) Accrued of bad debt provision
□Applicable □Not applicable
Expected credit loss general model for provision of bad debt reserves:
In RMB
Phase I Phase II Phase III
Expected credit losses for Expected credit losses for
Bad debt reserve Expected credit losses the entire duration the entire duration (with Total
over next 12 months (without credit credit impairment
impairment occurred) occurred)
Balance on Jan. 1
4106646.901644100054.731648206701.63
2023
Balance of Jan. 1 2023
in the period
Current accrued 3055915.03 3055915.03
Current reversal 977386.61 977386.61
Other changes 74610.75 74610.75
Balance on Dec. 31
6259786.071644100054.731650359840.80
2023
Classification basis and bad debt provision ratio for each stage
Change of book balance of loss provision whose amount has major changes in the period
□ Applicable □ Not applicable
4) Bad debt provision accrued collected or reversal
Bad debt provision accrued in the period:
In RMB
Change in current period
Category Opening balance Collected or Ending balance
Accrued Charged off Other
reversal
Bad debt
1648206701.633055915.03977386.6174610.751650359840.80
provision
Total 1648206701.63 3055915.03 977386.61 74610.75 1650359840.80
5) Other accounts actually charged off during the reporting period
Nil
6) Top 5 other accounts receivable at ending balance by arrears party
In RMB
Ratio in total
ending balance of Ending balance of
Enterprise Nature Ending balance Aging
other accounts bad debt reserve
receivables
WFTR “platform trade” See “Other
2542263370.70 1-2 years 98.92% 1644068327.93business portfolio explanation”
Robert Bosch Company Intercourse 2500307.00 Within 1 0.10%
153WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
funds from units year
Wuxi China Resources Gas Over 3
Deposit margin 1364750.00 0.05% 1364750.00
Co. LTD years
Zhenkunxing Industrial
Over 3
Supermarket (Shanghai) Co. Deposit margin 1000000.00 0.04% 1000000.00
years
LTD
With 1
BYD Deposit margin 900000.00 0.03%
year
Total 2548028427.70 99.14% 1646433077.93
Other explanation: For details of WFTR “platform trade” business portfolio please refer to the description in Note-XVIII- 7 “OtherSignificant Transactions and Matters Affecting Investors' Decisions”. The ending balance of WFTR’s “platform trade” business
portfolio balance include the balance of other receivables listed in Note-XIV. 6(3).
7) Listed as other receivables due to centralized fund management
Nil
7. Account paid in advance
(1) By aging
In RMB
Ending balance Opening balance
Aging
Amount Ratio Amount Ratio
Within one year 56627071.44 74.31% 88207782.70 93.51%
1-2 years 17692490.92 23.22% 5066837.28 5.37%
2-3 years 1879201.90 2.47% 778819.68 0.83%
Over 3 years 3506.90 0.00% 270414.21 0.29%
Total 76202271.16 94323853.87
Explanation on the reasons why prepayments with an aging of over 1 year and significant amounts were not settled in a timely
manner: Nil
(2) Top 5 accounts paid in advance at ending balance by prepayment object
In RMB
Prepayment ending Proportion to the total ending balance of
Enterprise
balance prepayments (%)
State Grid Jiangsu Electric Power Co. Ltd. Wuxi
11142648.7014.62
Power Supply Branch
AIDA ENGINEERING 9206995.00 12.08
Daye Special Steel Co. Ltd 5838762.94 7.66
CITIC Taifu Steel Trading Co. Ltd 5583484.29 7.33
Shanghai Baogang Trading Co. Ltd 3382034.68 4.44
Total 35153925.61 46.13
8. Inventory
Whether the Company need to comply with disclosure requirements in the real estate industry:
154WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
No
(1) Category of inventory
In RMB
Ending balance Opening balance
Inventory Inventory
Item
Book balance depreciation Book value Book balance depreciation Book value
reserve reserve
Stock
590057187.69116560014.49473497173.20796941337.63160326360.21636614977.42
materials
Goods in
463097639.2030595290.34432502348.86437653321.2331641606.69406011714.54
process
Finished
1336512057.06173978548.181162533508.881382835104.89142342140.581240492964.31
goods
Total 2389666883.95 321133853.01 2068533030.94 2617429763.75 334310107.48 2283119656.27
(2) Inventory depreciation reserve or provision for impairment of contract performance costs
In RMB
Current increase Current decrease
Item Opening balance Translation of foreign Reversal or Ending balance
Accrued Other
currency statements write-off
Stock
160326360.2150809350.00812321.7795388017.49116560014.49
materials
Goods in
31641606.6913255762.45583073.3014885152.1030595290.34
process
Finished
142342140.58141101760.51273331.29109738684.20173978548.18
goods
Total 334310107.48 205166872.96 1668726.36 220011853.79 321133853.01
* The net realizable value of inventory refers to the estimated selling price of inventory in daily activities minus the estimated
costs to be incurred until completion estimated sales expenses and related taxes.* Accrued basis for inventory depreciation reserve:
Accrued basis for inventory impairment
Cash on hand Specific basis for recognition
provision
The materials sold due to finished goods Results from the estimated sale price of such inventory less the cost
Materials in stock manufactured its net realizable value is what will happen estimated sales expenses and relevant taxes till the
lower than the book value goods completed
The goods in process sold due to
Results from the estimated sale price of such inventory less the cost
finished goods manufactured its net
Goods in process what will happen estimated sales expenses and relevant taxes till the
realizable value is lower than the book
goods completed
value
Accrued basis for inventory impairment
Cash on hand Specific basis for recognition
provision
* Reasons of inventory depreciation reserves written off in current period:
Cash on hand Reasons of written off
Materials in stock Used for production and the finished goods are realized sales
Goods in process Goods in process 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) Explanation of the current amortization amount of contract performance cost
Nil
155WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
(5) Other credit investment maturing within one year
Nil
9. Other current assets
In RMB
Item Ending balance Opening balance
Receivable export tax rebates 9103488.70 14325020.52
VAT refund receivable 114079600.14 25444657.63
Prepaid taxes and VAT retained 173908288.11 364556192.43
Input tax to be deducted and certification 2162292.69 1192752.68
Other 26655713.47 25028577.98
Total 325909383.11 430547201.24
10. Other equity instrument investment
In RMB
Reasons for
Gains Losses
Accumula Accumula designating
recogniz recogniz
ted gains ted losses Divide fair value
ed in ed in
recognize recognize nd measureme
other other
d in other d in other income nt with
compreh compreh
Opening comprehe comprehe recogni changes
Item Ending balance ensive ensive nsive nsive zed in recognized
balance income income
income at income at this in other
for the for the
the end of the end of period comprehen
current current
this period this period sive
period period
income
Non-
Wuxi Xichang trading
Microchip equity
592742690.00592742690.00
Semi- instrument
Conductor investment
s
Non-
trading
equity
Other 85048000.00 85048000.00
instrument
investment
s
Total 677790690.00 677790690.00
Sub-item disclosure of current non-trading equity instrument investments
In RMB
Reasons for
Amount of Reasons for
defining fair transferring
other value other
comprehensive measurement
Dividends Accumulated Accumulated comprehensive
Item income with changes income to
income gains losses
transferred to recognized in retained
retained other earnings
comprehensive
earnings
income
156WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Wuxi Xichang Non-trading
Microchip equity
Not applicable
Semi- instrument
Conductor investments
Non-trading
equity
Other Not applicable
instrument
investments
11. Long-term equity investment
In RMB
Current changes (+/ -)
Ending
Openin
Opening Other Cash Investment Ending balance g
Investe balance of Additio Capit compre dividend Impair
balance gain/loss Other
balance of
d entity impairmen nal al hensive or profit ment Oth
(book recognized equity
(book depreci
t provision invest reduc income announce Accrue er under change value) ation value) ment tion adjust d to d
equity reserves
ment issued
I. Joint venture
II. Associated enterprise
8245281965884911994117600915511
WFEC
809.896.35541.20000.00847.44
3659730153
1029151167360
RBCD 61310. 07291.
455.575474.71
9783
Zhongli
1559416855
an 40808873 282000
13314.02046.
Electro 2.68 000.00
0573
nic
--
5482941464
WFPM 11779921. 15856
812.51195.65
1995.67
Changc
96217-90828
hun
34.83538911.0423.79
Xuyang
390
Precors 55179 28759 - 85874
712.
GmbH 24.56 94.14 197141.96 89.62
88
Auto 169145 10247396 32882 182680
Link 202.15 .31 59.15 857.61
-
11000-
Lezhuo 137 89496
0000.020489295
Bowei 50.0 954.40
0.60
0
628281128737659476
Subtota 16110708 13697 207320
18108.5994.1962.33507.
l 11.12 104.68 5474.71
9648807
628281128737659476
1611070813697207320
Total 18108. 5994.1 962. 33507.
11.12104.685474.71
9648807
Note:：
Wuxi Weifu Precision Machinery Manufacturing Co. Ltd. was renamed into Wuxi Weifu Precision Machinery Manufacturing
Company Limited on Feburary 28 2024.Explanation on those holding less than 20% of the voting rights but with significant influence:
Wuxi Chelian Tianxia Information Technology Co. Ltd. (hereinafter referred to as “Auto Link”)
The Company holds 9.6372% equity of Auto Link and appointed a director to Auto Link. Though the representative the Company
can participate in the operation policies formulation of Auto Link and thus exercise a significant influence over Auto Link.The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□Applicable □Not applicable
157WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
The recoverable amount is determined based on the present value of expected future cash flows
□Applicable □Not applicable
12. Other non-current financial assets
In RMB
Item Ending balance Opening balance
Guolian Securities 1084000.00 186608914.00
Investments in other debt instruments and equity
803266120.061140000000.00
instruments held for more than one year
Total 804350120.06 1326608914.00
Other explanation: Nil
13. Investment real estate
(1) Investment real estate measured by cost
□ Applicable □ Not applicable
In RMB
House and Construction in
Item Land use right Total
Building progress
I. Original book value
1.Opening balance 97691776.27 97691776.27
2.Current increased
(1) Outsourcing
(2) Inventory\fixed
assets\construction in process
transfer-in
(3) Increased by combination
3.Current decreased 2364090.24 2364090.24
(1) Disposal 2364090.24 2364090.24
(2) Other transfer-out
4.Ending balance 95327686.03 95327686.03
II. Accumulated depreciation and
accumulated amortization
1.Opening balance 48394906.54 48394906.54
2.Current increased 2299230.53 2299230.53
(1) Accrued or amortization 2299230.53 2299230.53
3.Current decreased 2293167.53 2293167.53
(1) Disposal 2293167.53 2293167.53
(2) Other transfer-out
4.Ending balance 48400969.54 48400969.54
III. Depreciation reserves
1.Opening balance
2.Current increased
(1) Accrued
3. Current decreased
(1) Disposal
(2) Other transfer-out
158WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
4.Ending balance
IV. Book value
1.Ending Book value 46926716.49 46926716.49
2.Opening Book value 49296869.73 49296869.73
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□Applicable □Not applicable
The recoverable amount is determined based on the present value of expected future cash flows
□Applicable □Not applicable
(2) Investment real estate measured at fair value
□ Applicable □ Not applicable
(3) Converted into investment real estate and measured at fair value: Nil
(4) Investment real estate without property certification held: Nil
14. Fixed assets
In RMB
Item Ending balance Opening balance
Fixed assets 3969574102.87 3769984185.94
Disposal of fixed assets
Total 3969574102.87 3769984185.94
(1) Fixed assets
In RMB
House and Machinery Transportation Electronic and
Item Land Total
Building equipment equipment other equipment
I. Original book
value:
1.Opening 1934526060. 4613504836. 7663427739.
38612263.181046301287.1630483292.05
balance 96 29 64
2.Current
89391390.28427272709.176381131.81210102119.29733147350.55
increased
(1) Purchase 364604.28 9056652.41 14344915.25 23766171.94
(2) Construction
in progress 89026786.00 418216056.76 6381131.81 195757204.04 709381178.61
transfer-in
(3)Increased by
combination
3.Current
955274.7559944842.113200574.0138613164.29102713855.16
decreased
(1) Disposal or
955274.7559944842.113200574.0138613164.29102713855.16
scrapping
4.Conversion of
foreign currency
9145379.1826069448.48246984.2318609850.231792007.0855863669.20
financial
statement
2032107555.5006902151.8349724904.
5.Ending balance 42039805.21 1236400092.39 32275299.13
678323
II. Accumulated
depreciation
1.Opening 2470972225. 3693503392.
536810138.4921621368.25664099659.92
balance 66 32
159WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
2.Current
65701668.30306039806.952743926.07153201005.59527686406.91
increased
(1) Accrued 65701668.30 306039806.95 2743926.07 153201005.59 527686406.91
3.Current
636001.2653285381.971358113.3326616861.9481896358.50
decreased
(1) Disposal or
636001.2653285381.971358113.3326616861.9481896358.50
scrapping
4.Conversion of
foreign currency
3304279.6217949887.191105.2814270712.6935525984.78
financial
statement
2741676537.4174819425.
5.Ending balance 605180085.15 23008286.27 804954516.26
8351
III. Depreciation
reserves
1.Opening
14097320.49148903639.0173319.9021710795.1115155086.87199940161.38
balance
2.Current
502006.79502006.79
increased
(1) Accrued 502006.79 502006.79
3.Current
5366.681046191.48163374.041214932.20
decreased
(1) Disposal or
5366.681046191.48163374.041214932.20
scrapping
4.Conversion of
foreign currency
828599.733644352.76740272.36890915.036104139.88
financial
statement
5.Ending balance 14920553.54 152003807.08 73319.90 22287693.43 16046001.90 205331375.85
IV. Book value
1.Ending Book 1412006916. 2113221806. 3969574102.
18958199.04409157882.7016229297.23
value 98 92 87
2.Opening Book 1383618601. 1993628971. 3769984185.
16917575.03360490832.1315328205.18
value 98 62 94
(2) Temporarily idle fixed assets: Nil
(3) Fixed assets acquired by operating lease: Nil
(4) Fixed assets without property certification held
In RMB
Reasons for without the property
Item Book value
certification
Still in process of relevant property
Plant and office building of WFCA 30437612.45
procedures
(5) Impairment testing of fixed assets
□Applicable □Not applicable
(6) Disposal of fixed assets
Other explanation: Nil
15. Construction in progress
In RMB
Item Ending balance Opening balance
Construction in progress 564605931.90 509105587.49
160WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Total 564605931.90 509105587.49
(1) Construction in progress
In RMB
Ending balance Opening balance
Item Depreciatio Depreciation
Book balance Book value Book balance Book value
n reserves reserves
Renovation of Xinan
148242724.841493029.4
Branch No. 1 workshop 148242724.89 41493029.41
of the company 9 1
Lot 103 phase VI 7509742.36 7509742.36
Production line and
391286034.9386221995.0386221995.
equipment under 184615.38 391101419.56
installation and debugging 4 2 02
Sporadic construction and 41326068.8
5265721.925265721.9241326068.85
installation projects 5
Software and system
40064494.2
under installation and 12486323.17 12486323.17 40064494.21
debugging 1
564790547.2509105587.4509105587.
Total 184615.38 564605931.90
8949
(2) Changes of major construction in progress
In RMB
includi
Accum
Propor ng: Interes
Fixed ulated
Other tion of interes t
Openi Curren assets amoun
Bu decrea Ending project t capital Source
ng t transfe Progre t of
Item dge sed in balanc invest capital ization of
balanc increas r-in in ss interes
t the e ment ized rate of funds
e ed the t
Period in amoun the
Period capital
budget t of the year
ization
year
Renovatio The
n of Xinan Compa
Branch ny’s
41493 106749 148242 accumu
No. 1 35.06% 35.06%
lated
workshop 029.41 695.48 724.89
funds
of the
company
The
Compa
Lot 103 75097 75097 ny’s
9%9%
phase VI 42.36 42.36 accumu
lated
funds
41493114259155752
Total
029.41437.84467.25
(3) The provision for impairment of construction projects
In RMB
Opening Reason for
Item Current increase Current decrease Ending balance
balance withdrawal
Equipment Equipment debugging
184615.38184615.38
installation acceptance failed
Total 184615.38 184615.38 --
(4) Impairment testing of construction in progress
□Applicable □Not applicable
161WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
(5) Engineering material
Other explanation: Nil
16. Right-of-use assets
(1) Right-of-use assets
In RMB
Item Building Mechanical equipment Total
I. Original book value:
1.Opening balance 34416049.86 25021445.63 59437495.49
2.Current increased 19076134.73 1030006.72 20106141.45
(1)Increased lease 19076134.73 1030006.72 20106141.45
3.Current decreased 533688.55 533688.55
(1) Disposal 533688.55 533688.55
4. Conversion of foreign
1454205.70948261.182402466.88
currency financial statement
5.Ending balance 54412701.74 26999713.53 81412415.27
II. Accumulated depreciation
1.Opening balance 11035938.99 6536456.12 17572395.11
2.Current increased 9820732.13 5049925.02 14870657.15
(1) Accrued 9820732.13 5049925.02 14870657.15
3.Current decreased 533688.55 533688.55
(1) Disposal 533688.55 533688.55
4. Conversion of foreign
382978.91287599.80670578.71
currency financial statement
5.Ending balance 20705961.48 11873980.94 32579942.42
III. Depreciation reserves
1.Opening balance
2.Current increased
(1) Accrued
3.Current decreased
(1) Disposal
4.Ending balance
IV. Book value
1.Ending Book value 33706740.26 15125732.59 48832472.85
2.Opening Book value 23380110.87 18484989.51 41865100.38
(2) Impairment testing of right-of-use assets
□Applicable □Not applicable
Other explanation: Nil
17. Intangible assets
(1) Intangible assets
In RMB
Trademark
Patented and non
Item Land use right Computer software and trademark Total
patented technologies
license
I. Original book value
1.Opening balance 381867130.62 247735742.07 156331661.37 41597126.47 827531660.53
2.Current increased 5000000.00 58288088.04 63288088.04
(1) Purchase 3880588.41 3880588.41
162WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
(2) Internal R&D
(3) Increased by
combination
(4)Transfer from
construction in 54407499.63 54407499.63
progress
(5) Shareholders’
5000000.005000000.00
capital contribution
3.Current decreased 8922112.00 894373.20 9816485.20
(1)Disposal or
8922112.00894373.209816485.20
scrapping
4.Conversion of foreign
currency financial 12457935.72 1138252.40 13596188.12
statement
5.Ending balance 372945018.62 265193677.79 214863628.61 41597126.47 894599451.49
II. Accumulated
amortization
1.Opening balance 112319506.81 82143152.44 118642946.06 9709000.00 322814605.31
2.Current increased 8106024.88 22663087.20 42059366.96 72828479.04
(1)Accrued
(2)Amortization 8106024.88 22663087.20 42059366.96 72828479.04
3.Current decreased 7410097.90 894373.20 8304471.10
(1)Disposal 7410097.90 894373.20 8304471.10
4.Conversion of foreign
currency financial 4816986.79 493908.13 5310894.92
statement
5.Ending balance 113015433.79 109623226.43 160301847.95 9709000.00 392649508.17
III. Depreciation
reserves
1.Opening balance 442167.30 16646900.00 17089067.30
2.Current increased
(1)Accrued
3.Current decreased
(1)Disposal
4.Conversion of foreign
currency financial 25993.49 25993.49
statement
5.Ending balance 468160.79 16646900.00 17115060.79
IV. Book value
1.Ending Book value 259929584.83 155570451.36 54093619.87 15241226.47 484834882.53
2.Opening Book value 269547623.81 165592589.63 37246548.01 15241226.47 487627987.92
The proportion of intangible assets formed through internal R&D of the company to the balance of intangible assets at the end of
this period.
(2) Land use right without property certification held
Other explanation: Nil
(3) Impairing test of intangible assets
□Applicable □Not applicable
18. Goodwill
(1) Original book value of goodwill
In RMB
163WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
The invested entity Current increased Current decreased
Opening
or matters forming
balance Formed by business Translation of foreign
Ending balance
goodwill Disposal
combination currency statements
Merged with WFTT 1784086.79 1784086.79
Merged with Borit 235898288.93 13067389.94 248965678.87
Total 237682375.72 13067389.94 250749765.66
(2) Goodwill depreciation reserve
In RMB
Current increased Current decreased
The invested entity or Opening
Formed by business Translation of foreign Ending balance matters forming goodwill balance Disposal
combination currency statements
Merged with WFTT
Merged with Borit 125422037.41 3010909.05 128432946.46
Total 125422037.41 3010909.05 128432946.46
(3) Related information of asset group or asset portfolio of the goodwill
Is consistent
Name Component and basis for asset group or asset portfolio Operation branch and basis with previous
year
Long term assets related to the merger of WFTL’s goodwill; Automotive intake system
The management made it clear that this asset group will be product division; Category
WFTT Yes
used and operated independently of other assets and will of asset group output
generate cash inflows independently products
Long term assets related to the merger of Borit’s goodwill; The
Other automotive parts
management made it clear that this asset group will be used and
Borit divisions; Category of asset Yes
operated independently of other assets and will generate cash
group output products
inflows independently
Changes in asset group or asset portfolio
Other explanation: Nil
(4) Specific method of determining the recoverable amount
For asset groups with signs of impairment the Company estimates the recoverable amount of the asset group based on the higher
of its fair value minus disposal expenses and the present value of expected future cash flows; For asset groups with no signs of
impairment the company determines the recoverable amount of the asset group based on the present value of its expected future
net cash flows.The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□Applicable □Not applicable
In RMB
Method of
Recoverable Depreciation determining fair Key Basis to determine
Item Book value
amount amount value and disposal parameters key parameters
expense
Market Average value of
Borit 350313045.41 224891008.00 125422037.41 Market method
multiplier comparable
164WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
company
Total 350313045.41 224891008.00 125422037.41
The recoverable amount is determined based on the present value of expected future cash flows
□Applicable □Not applicable
In RMB
Basis for
determining
The year Key parameters Key
key
Recoverable Depreciation limited of the for the parameters
Item Book value parameters
amount amount prediction prediction for the stable
for the
period period period
stable
period
Based on
Income
Income growth prudence
growth rate:
rate: 3% -16%; consider a
0%; Profit
Profit margin: stable
WFTT 178481237.44 230519591.10 5 years margin:
3% -5%; period of
4.33%;
Discount rate is income
Discount rate
12.88% growth of
is 12.88%
0%
Total 178481237.44 230519591.10
Reasons for significant discrepancies between the aforementioned information and the information or external information used in
previous years' impairment testing: Nil
Reasons for significant discrepancies between the information used in the company's previous annual impairment tests and the
actual situation of the current year: Nil
(5) Completion of performance commitments and corresponding impairment of goodwill
When goodwill is formed there is a performance commitment and the reporting period or the previous period is within the
performance commitment period
□Applicable □Not applicable
Other explanation: Nil
19. Long-term deferred expense
In RMB
Amortized in the
Item Opening balance Current increase Other decrease Ending balance
Period
Decoration
28586235.843490177.617361781.3524714632.10
expense etc.Total 28586235.84 3490177.61 7361781.35 24714632.10
20. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets that are not offset
In RMB
Ending balance Opening balance
Item Deductible Deferred income tax Deductible temporary Deferred income tax
temporary difference assets difference assets
Unrealized profit from
58038282.1610362240.1043939348.598056161.37
insider transactions
165WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Deductible loss 1021893078.26 153283961.74 942706826.57 142138790.82
Bad debt provision 82811787.71 12593312.59 79078766.93 11972961.27
Inventory depreciation
286016361.3045423673.61299752548.9346412618.47
reserve
Depreciation reserves of
95427114.1116503823.1070008612.2112701929.36
fixed assets
Depreciation reserve of
184615.3827692.31
construction in progress
Depreciation reserves of
16646900.002497035.0016646900.002497035.00
intangible assets
Deferred income 182861766.95 27634668.38 222850907.79 33668167.75
Payable salary accrued
787779009.37148065821.58849436667.00139593056.66
expenses etc.Depreciation assets
21482750.973311127.1025570352.824153581.52
amortization difference
Equity incentive 3066582.11 459987.32
Lease liability 50855198.17 11460004.56 14572903.92 2812926.34
Changes in fair value 17858685.16 2678802.77
Total 2621855549.54 433842162.84 2567630416.87 404467215.88
(2) Deferred income tax liabilities that are not offset
In RMB
Item Ending balance Opening balance
Taxable temporary Deferred income Taxable temporary Deferred income
differences tax liabilities differences tax liabilities
The difference between the fair value
and taxation basis of WFTT assets in a 9724500.55 1458675.07 10192264.15 1528839.60
merger not under the same control
The difference between the fair value
and taxation basis of IRD assets in a 54330413.17 11952690.89 61131061.24 13448833.47
merger not under the same control
The difference between the fair value
and taxation basis of Borit assets in a 19310735.89 4827683.93 21378918.49 5344729.59
merger not under the same control
The difference between the fair value
and taxation basis of VH business in a 53064614.54 12735507.49 59291649.88 14229995.98
merger not under the same control
Change in fair value of transaction
8339996.551259587.67161415403.7824226534.89
financial asset
Accelerated depreciation of fixed assets 761694832.59 116424109.44 700548497.31 107631856.23
Right-of-use assets 48832472.85 11023076.15 13227441.18 2578204.66
Total 955297566.14 159681330.64 1027185236.03 168988994.42
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
Ending balance of Trade-off between the Opening balance of
Trade-off between the
deferred income tax deferred income tax deferred income tax
Item deferred income tax
assets or liabilities after assets and liabilities at assets or liabilities after
assets and liabilities
off-set period-begin off-set
Deferred income tax
121929207.77311912955.07128839443.43275627772.45
assets
Deferred income tax
121929207.7737752122.87128839443.4340149550.99
liabilities
(4) Details of unrecognized deferred income tax assets
In RMB
166WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Item Ending balance Opening balance
Bad debt reserve 1649499774.15 1648602163.32
Inventory depreciation reserve 35117491.71 34557558.55
Loss from subsidiary 845349190.11 529884134.82
Depreciation reserves of fixed assets 109904261.74 129931549.17
Depreciation reserves of intangible assets 468160.79 442167.30
Other equity instrument investment 13600000.00 13600000.00
Wages payable withholding expense etc. 4572812.40
Total 2658511690.90 2357017573.16
(5) Deductible losses of unrecognized deferred income tax assets expired in following years
In RMB
Maturity year Ending amount Opening amount Note
Operating loss occurs in
20232380501.89
domestic subsidiaries
Operating loss occurs in
20243792427.2912087441.12
domestic subsidiaries
Operating loss occurs in
202512140693.5412140693.54
domestic subsidiaries
Operating loss occurs in
202646418486.8446418486.83
domestic subsidiaries
Operating loss occurs in
2027126802486.76160833781.13
domestic subsidiaries
Operating loss occurs in
2028 and the following years 101104099.31
domestic subsidiaries
Operating loss occurs in
No expiration date 555090996.37 296023230.31
overseas subsidiaries
Total 845349190.11 529884134.82
21. Other non-current assets
In RMB
Ending balance Opening balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Engineering
equipment paid in 232894913.95 232894913.95 239775014.10 239775014.10
advance
Contract
11333809.1011333809.1019855422.2719855422.27
acquisition cost
Large deposit
certificates with a 1112512500.0 1112512500.0
220000000.00220000000.00
maturity of more 0 0
than one year
1356741223.01356741223.0
Total 479630436.37 479630436.37
55
22. Assets with ownership or use right restricted
In RMB
Ending Opening
Item Restricti Restriction Book Restricti
Book balance Book value Book value Restriction reason
on type reason balance on type
167WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Notes pledge
Monetary Cash 24368385. 24368385. Cash Notes pledge for
22174151.94 22174151.94 for bank
funds deposit 65 65 deposit bank acceptance
acceptance
Notes pledge
Bill 82908186. 82908186. Notes pledge for
97820000.00 97820000.00 Pledge for bank Pledge
receivable 94 94 bank acceptance
acceptance
IRD
Monetary Cash 7487250.0 7487250.0 Cash IRD performance
7902000.00 7902000.00 performance
funds deposit 0 0 deposit bond
bond
Cash deposit
Monetary Cash Cash Cash deposit for
210720.00 210720.00 for 199660.00 199660.00
funds deposit deposit Mastercard
Mastercard
Monetary Cash Cash
4000.00 4000.00 ETC freezing 5000.00 5000.00 ETC freezing
funds deposit deposit
Monetary 18840000. 18840000. Cash Forex Contracts
funds 00 00 deposit USD Margin
Monetary
180000.00 180000.00 Freezing Court freezing
funds
Receivabl Notes pledge
568256134.8 568256134.8 Cash 53033760 53033760 Cash Notes pledge for
es for bank
5 5 deposit 0.45 0.45 deposit bank acceptance
financing acceptance
Account Cash Pledge to
16201589.4814581430.53
receivable deposit obtain loans
712568596.2710948437.36643260866432608
Total
723.043.04
23. Short-term borrowings
(1) Category of short-term borrowings
In RMB
Item Ending balance Opening balance
Guaranteed loan 3000000.00 89074800.00
Credit loan 818592983.28 3511504373.65
Factory financing 16201589.48
Accrued interest 1094984.75 3797354.17
Total 838889557.51 3604376527.82
(2) Overdue short-term loans without payment
The total amount of overdue and unpaid short-term loans at the end of this period is 0.00 yuan
24. Derivative financial liabilities
In RMB
Item Ending balance Opening balance
Forward settlement and sales of foreign exchange 747115.75
Total 747115.75
168WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
25. Note payable
(1) Note payable
In RMB
Category Ending balance Opening balance
Bank acceptance bill 1759062642.60 1411089606.00
Total 1759062642.60 1411089606.00
Other explanation:
To issue the above-mentioned bank acceptance bill the Company paid a deposit of 22174151.94 yuan pledge notes receivable
and accounts receivable financing of 660076134.85 yuan.
(2) The total amount of unpaid notes receivable at the end of the period is 0 yuan.
26. Account payable
(1) Account payable
In RMB
Item Ending balance Opening balance
Operating expenses such as labor or
3547366822.233202009901.75
goods payable
Accounts payable for engineering
121483601.06252591121.85
equipment
Total 3668850423.29 3454601023.60
(2) Significant accounts payable over one year or overdue
Other explanation: Nil
27. Other account payable
In RMB
Item Ending balance Opening balance
Other accounts payable 108893486.63 198990948.23
Total 108893486.63 198990948.23
(1) Interest payable
Nil
(2) Dividend payable
Nil
(3) Other account payable
1) By nature
In RMB
Item Ending balance Opening balance
Deposit and margin 13422590.66 15452400.65
169WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Social insurance and reserves funds that
1282686.661967741.92
withholding
Intercourse funds of unit 25512145.98 25512145.98
Restricted stock repurchase obligations 63567420.00 138495060.00
Payable unpaid investment funds 13308176.65
Other 5108643.33 4255423.03
Total 108893486.63 198990948.23
2) Significant other payable over one year or overdue
In RMB
Item Ending balance Reasons for not repaying or carry-over
Ningbo Jiangbei High-tech Industrial Park
19026000.00 Intercourse funds
Development and Construction Co. Ltd
Restricted stock repurchase business 63567420.00 Restricted stock repurchase business
Total 82593420.00
28. Accounts received in advance
(1) Accounts received in advance
In RMB
Item Ending balance Opening balance
Within 1 year 2911439.65 3633878.33
Total 2911439.65 3633878.33
(2) Significant accounts receivable in advance whose aging is over 1 year or overdue: Nil
29. Contract liabilities
In RMB
Item Ending balance Opening balance
Within one year 63409595.72 60916157.84
1-2 years 3625754.55 31275903.90
2-3 years 8677954.57 1518759.78
Over three years 1973576.40 1139261.71
Total 77686881.24 94850083.23
30. Wage payable
(1) Wage payable
In RMB
Item Opening balance Current increased Current decreased Ending balance
I. Short-term compensation 241874758.99 1360126274.45 1333519922.47 268481110.97
II. Post-employment welfare-
27678116.81217004551.50216890672.0127791996.30
defined contribution plans
III. Dismissed welfare 973200.33 1317459.95 1326154.17 964506.11
IV. Incentive funds paid within one
30740000.009475043.0622015043.0618200000.00
year
170WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
V. Other short-term welfare-
Housing subsidies employee 16168310.11 4604208.16 1399779.09 19372739.18
benefits and welfare funds
Total 317434386.24 1592527537.12 1575151570.80 334810352.56
* Explanation of the current increase in incentive funds paid within one year:
The incentive fund paid within one year has increased by 9475043.06 yuan in the current period which is due to the reclassification
of long-term employee compensation payable to employee compensation payable the reclassification amount is determined based on
the company's future payment plan.* Explanation of the dismissed welfare
Dismissal benefits refer to the employee compensation payable formed by the internal retirement plan implemented by the company
the expected amount to be paid in the following year is reported under the undergraduate project.
(2) Short-term compensation
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Wages bonuses allowances and
228262797.861109739091.021083836037.69254165851.19
subsidies
2. Welfare for workers and staff 77988085.29 77988085.29
3. Social insurance 279543.63 58086131.45 58042437.08 323238.00
Including: Medical insurance 242824.57 45982995.55 45957179.46 268640.66
Work injury insurance 27398.20 6521781.05 6508696.96 40482.29
Maternity insurance 9320.86 5581354.85 5576560.66 14115.05
4. Housing accumulation fund 785727.00 84368651.34 84284320.34 870058.00
5. Labor union expenditure and
9960112.9916258839.4216482847.279736105.14
personnel education expense
Other short-term compensation - social
2586577.5113685475.9312886194.803385858.64
security
Total 241874758.99 1360126274.45 1333519922.47 268481110.97
(3) Define contribution plans
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Basic endowment
6829377.95166179217.39164485029.848523565.50
premium
2. Unemployment
36478.414130074.004119344.2947208.12
insurance
3. Enterprise annuity 20812260.45 46695260.11 48286297.88 19221222.68
Total 27678116.81 217004551.50 216890672.01 27791996.30
Other explanation:
Post-employment welfare- defined contribution plans:
The Company participates in the pension insurance and unemployment insurance plans established by government authorities by
laws a certain percentage of the social security fee regulated by the government will pay by the Company monthly for the plans.Other than the aforesaid monthly contribution the Company takes no further payment obligation. The relevant expenditure isincluded in current profit or loss or cost of relevant assets when occurs. Found more of enterprise annuity in Note XVIII-4 “Annuityplan”.
31. Tax payable
In RMB
Item Ending balance Opening balance
171WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Value-added tax 8011069.82 27961474.84
Corporation income tax 30183553.14 7847731.79
Individual income tax 7904270.96 6846289.60
City maintaining & construction tax 568820.85 1546043.92
Educational surtax 410526.96 1105937.33
Other (including stamp tax and local
9502840.769278838.05
funds)
Total 56581082.49 54586315.53
32. Non-current liabilities due within one year
In RMB
Item Ending balance Opening balance
Long-term borrowings due within one
24700000.002000000.00
year
Lease payments due within one year 13122001.66 12044793.34
Interest payable 262319.44 240555.56
Total 38084321.10 14285348.90
33. Other current liabilities
In RMB
Item Ending balance Opening balance
Rebate payable 253258241.31 201734082.52
Pending sales tax 3881667.29 8815298.56
Undue bill endorsed/discounted 1214398.69
Total 257139908.60 211763779.77
Changes in short-term bonds payable: Nil
34. Long-term borrowings
(1) Category of long-term borrowings
In RMB
Item Ending balance Opening balance
Credit loan 299800000.00 238000000.00
Total 299800000.00 238000000.00
35. Lease liability
In RMB
Item Ending balance Opening balance
Lease payments 37733196.51 31589277.20
Total 37733196.51 31589277.20
Other explanation: Nil
172WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
36. Long-term account payable
In RMB
Item Ending balance Opening balance
Long-term account payable 9770000.00 12520000.00
Special accounts payable 18265082.11 18265082.11
Total 28035082.11 30785082.11
(1) Long-term account payable listed by nature
In RMB
Item Ending balance Opening balance
Hi-tech Branch of Nanjing Finance Bureau (note * ) Financial support funds
2750000.00
(2008)
Hi-tech Branch of Nanjing Finance Bureau (note * ) Financial support funds
1030000.001030000.00
(2009)
Hi-tech Branch of Nanjing Finance Bureau (note * ) Financial support funds
960000.00960000.00
(2010)
Hi-tech Branch of Nanjing Finance Bureau (note * ) Financial support funds
5040000.005040000.00
(2011)
Hi-tech Branch of Nanjing Finance Bureau (note * ) Financial support funds
2740000.002740000.00
(2013)
Total 9770000.00 12520000.00
Other explanation:
Note to long-term accounts payable
Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is
allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from November 17 2008 to November
17 2023. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed. This
support capital has been in use for 15 years in this period so it has been transferred to other income.Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is
allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from October 27 2009 to October 27
2024. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.
Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is
allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from December 27 2010 to December 27
2025. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.
Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is
allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from December 28 2011 to December 28
2026. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.
Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is
allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from December 18 2013 to December 18
2028. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.
(2) Special accounts payable
In RMB
Opening Current Current Cause of
Item Ending balance
balance increased decreased formation
Removal compensation of
18265082.1118265082.11
subsidiary WFJN
Total 18265082.11 18265082.11
173WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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
were compensated including operation losses from lessee 1.4416 million yuan in total. The above compensation was received in
last period and is making up for the losses from lessee and the above lands and property have not been collected up to December
312023.
37. Long-term wages payable
(1) Long-term wages payable
In RMB
Item Ending balance Opening balance
I.Post-employment benefits - Defined
21238891.6220380744.73
benefit plan net liabilities
II. Dismiss welfare 12926873.35 12028538.66
III. Other long-term welfare 95678717.83 121683760.89
Total 129844482.80 154093044.28
(2) Changes in defined benefit plan
Present value of defined benefit plan
In RMB
Item Current period Last period
I. Opening balance 20380744.73 19594011.39
II. Cost of defined benefit plan booked into
783750.5838706.27
current profit and loss
1.Current service cost 783750.58 38706.27
III. Cost of defined benefit plan booked into
1664679.09399165.06
other comprehensive income
1.Actuarial gains (losses are represented by “-
1664679.09399165.06
”)
IV. Other changes -1590282.78 348862.01
1.Welfare paid -2780181.37 -345481.69
2.Translation difference of foreign currency
1189898.59694343.70
statements
V. Ending balance 21238891.62 20380744.73
Other explanation:
According to relevant regulations in Italy the Trattamento di Fine Rapporto (TFR) system is established. VHIO shall calculate and
offer severance to employees in accordance with employees’ employment period and taxable base salary when they leave or are
dismissed. The plan predicts future cash outflows at the inflation rate and determines its present value at the discount rate. The
above-mentioned benefit plan poses actuarial risks to VHIO mainly including interest rate risk and inflation risk. The decrease in
interest rates will lead to an increase in the present value of the defined benefit plan obligations. In addition the present value of
benefit plan obligations is related to the future payment standards of the plan which are determined based on inflation rates.Therefore an increase in inflation rate will also lead to an increase in planned liabilities.
174WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
38. Estimated debts
In RMB
Item Ending balance Opening balance Formation cause
Product quality assurance 26946035.59 8695322.61
Payable rebates 10709925.00
Investment losses in joint ventures 13750.00
Environmental protection commitment 301008.27 1150543.24
Pending dispute and litigation 59459.66 246653.02
Total 38016428.52 10106268.87
39. Deferred income
In RMB
Item Opening balance Current increased Current decreased Ending balance Cause of formation
Government grant 223123978.78 26727836.90 61078193.39 188773622.29
Total 223123978.78 26727836.90 61078193.39 188773622.29 --
Other explanation:
Item with government grants involved:
In RMB
Amount Translation
Assets
Opening New grants in reckoned into of foreign Ending
Items of liabilities related/Income
balance the Period other income in currency balance
related
the period statements
Appropriation for
research and
development ability of
distributive high-
pressure common rail 5536697.24 -- 781651.40 -- 4755045.84 Assets related
system for diesel engine
use and production line
technological
transformation project
Fund of industry
18710191.69 -- 11457713.56 -- 7252478.13 Income related
upgrade (2013)
R&D and
industrialization of the
high-pressure variable
2699860.97 -- 1012586.51 -- 1687274.46 Assets related
pump of the common
rail system of diesel
engine for automobile
Research institute of
motor vehicle exhaust
117789.93 -- 95763.54 -- 22026.39 Assets related
after-treatment
technology
Fund of industry
36831000.00 -- -- 36831000.00 Income related
upgrade (2014)
New-built assets
compensation after the
63443087.73 -- 18616741.70 -- 44826346.03 Assets related
removal of parent
company
Fund of industry
40000000.00 -- -- 40000000.00 Income related
upgrade (2016)
175WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Guiding capital for the
technical reform from
3787113.97 -- 1214425.00 -- 2572688.97 Assets related
State Hi-Tech Technical
Commission
Implementation of the
variable cross-section
4254433.18 -- 1548680.15 -- 2705753.03 Assets related
turbocharger for diesel
engine
Demonstration project
for intelligent 431887.80 -- 180038.20 -- 251849.60 Assets related
manufacturing
The 2nd batch of
provincial special funds
for industry
1849844.13 -- 1200987.63 -- 648856.50 Assets related
transformation of
industrial and
information in 2019
Municipal technological
reform fund allocation 3527096.61 -- 615897.08 -- 2911199.53 Assets related
in 2020
Strategic cooperation
agreement funding for
key enterprise of smart 3374618.86 -- 833156.76 -- 2541462.10 Assets related
manufacturing in high-
tech zone
The 3rd batch of
provincial special funds
for industry
13500000.00 -- 9554476.19 -- 3945523.81 Assets related
transformation of
industrial and
information in 2021
2023 Wuxi Industrial
Transformation and -- 10000000.00 998752.96 -- 9001247.04 Assets related
Upgrading Fund
Technical renovation
and capacity
optimization project for
-- 2000000.00 323880.62 -- 1676119.38 Assets related
annual production of
150000 sets of
turbochargers
Assets
Other 25060356.67 14584244.26 12643442.09 143592.64 27144751.48 related/Income
related
Total 223123978.78 26584244.26 61078193.39 143592.64 188773622.29
Other explanation:
(1) 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 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
development ability of distributive high-pressure common rail system for diesel engine use and production line technological
transformation project; this appropriation was asset-related government grant and 781651.40 yuan was written off based on the
depreciation schedule of the related assets during the period.
(2) Industry upgrading funds (2013): In accordance with the document Xi Xin Guan Jing Fa [2013] No.379 Xi Xin Guan Jing Fa
[2013] No.455 Xi Xin Guan Cai Fa [2013] No.128 and Xi Xin Guan Cai Fa [2013] No.153 the Company received funds of 60.52
million yuan appropriated for industry upgrading in 2013 and amount of 11457713.56 yuan was written off in the year.
(3) R&D and industrialization of the high pressure variable pump of the common rail system of diesel engine for automobile: the
Company received 8.05 million yuan appropriated for the project in 2013 in line with documents of Xi Ke Ji [2013] No.186 Xi Ke Ji
[2013] No.208 Xi Cai Gong Mao [2013] No.104 Xi Cai Gong Mao [2013] No.138 Xi Ke Ji [2014] No.125 Xi Cai Gong Mao
[2014] No.58 Xi Ke Ji [2014] No. 246 and Xi Cai Gong Mao [2014] No.162. The company received 8.05 million yuan 3 million
176WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
yuan and 0.45 million yuan respectively in 2013 2014 and 2015; such funds were asset-related government grant and shall be
written off according to the depreciation process amount of 1012586.51 yuan was written off in the year.
(4) Vehicle exhaust after-treatment technology research institute project: in 2012 the subsidiary WFLD 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 was approved by Wuxi Huishan Science and
Technology Bureau and Wuxi Science and Technology Bureau in 2012 and the company received appropriation of 2.4 million yuan
in 2012 and received appropriation of 1.6 million yuan in 2013. Such funds were asset-related government grants and shall be
written off according to the depreciation process and amount of 95763.54 yuan was written off in the year.
(5) Industry upgrading funds (2014): In accordance with the document Xi Xin Guan Jing Fa [2014] No.427 and Xi Xin Guan Cai
Fa [2014] No.143 the Company received funds of 36.831 million yuan appropriated for industry upgrading in 2014.
(6) New-built assets compensation after the removal of parent company: policy relocation compensation received by the Company
and will be written off according to the depreciation of new-built assets amount of 18616741.70 yuan was written off in the year.
(7) Fund of industry upgrade (2016): In accordance with the document Xi Xin Guan Jing Fa [2016] No.585 and Xi Xin Fa [2016]
No.70 the Company received funds of 40 million yuan appropriated for industry upgrading in 2016.
(8) Guiding capital for the technical reform from State Hi-Tech Technical Commission: In accordance with the document Xi 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 written off
according to the depreciation process amount of 1214425.00 yuan was written off in the year.
(9) Implementation of the variable cross-section turbocharger for diesel engine: In accordance with the document YCZ Fa[2016]
No.623 and “Strong Industrial Base Project Contract for year of 2017” subsidiary WFTT received a specific subsidy of 16.97
million yuan in 2016 and of 760000 yuan in 2018 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; It belongs to
government grant with assets concerned and shall be written off according to the depreciation process. Amount of 1548680.15
yuan was written off in the year.
(10) 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
intelligent manufacturing facilities. This subsidy belongs to government grant related to assets which shall be written off based on the
depreciation progress of the assets. Amount of 180038.20 yuan was written off in the year.
(11) 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 written
off according to the depreciation process amount of 1200987.63 yuan was written off in the year.
(12) Municipal technological reform fund allocation in 2020: according to XGXZH [2020] No. 16 the Company received 4.77
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 written off according to the depreciation
process. Amount of 615897.08 yuan was written off in the year.
(13) Strategic cooperation agreement funding for key enterprise of smart manufacturing in high-tech zone: according to XXGXF
[2020] No. 61 the Company received a related grant of 4.06 million yuan in 2020 and 0.7 million yuan in 2021 this grant was
related to the intelligent transformation project and belonged to the government grants related to assets. and shall be written off
according to the depreciation process amount of 833156.76 yuan was written off in the year.
(14) The 3rd batch of provincial special funds for industry transformation of industrial and information in 2021: according to the
SCGM [2021] No.92 the government grant 13.5 million yuan received in 2021 was for the research development and
industrialization of membrane electrodes for high-performance automotive proton exchange membrane fuel cells which was an
177WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
assets related government grants. According to the depreciation progress of related assets amount of 9554476.19 yuan was written
off in the year.
(15) 2023 Wuxi Industrial Transformation and Upgrading Fund: The government grant 10 million yuan received in 2023 was used
for the company's new motor shaft water jacket injector seat and gasoline rail expansion project which is a government subsidy
related to assets. According to the depreciation progress of related assets amount of 998752.96 yuan was written off in the year.
(16) Technical renovation and capacity optimization project for annual production of 150000 sets of turbochargers: According to
BQJX[2021] No.31 and BQJX[2022]No. 29 documents the subsidiary WFTL received a government subsidy of 2 million yuan in
2023 for the annual production of 150000 sets of turbochargers technology renovation and capacity optimization project. This
subsidy belongs to asset related government grant. According to the depreciation progress of related assets amount of 323880.62
yuan was written off in the year.
40. Share
In RMB
Change during the year (+/-)
Shares
Opening balance New shares Bonus transferred Ending balance
Other Subtotal
issued share from capital
reserve
--
Total
1008603293.006440500.06440500.01002162793.00
shares
00
Other explanation:
Decreased in share capital was due to the buy-back and cancellation of 6440500 restricted shares initially granted under the
Restricted Shares Incentive Plan.
41. Capital reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Capital premium (Share
3318949527.9873251190.003245698337.98
capital premium)
Other capital reserve 79419039.65 13074587.99 30021824.66 62471802.98
Total 3398368567.63 13074587.99 103273014.66 3308170140.96
Other explanation including changes in the period and reasons for changes;
(1) Share capital premium has increased RMB73251190.00 in the period because the 6440500 shares under restricted stock
incentive plan which were unable to be unlocked were canceled by the Company.
(2) The increase of 13074587.99 yuan in other capital reserves in the current period is due to changes in other equity of joint
ventures which the company enjoys in proportion to its shareholding; The decrease of 30021824.66 yuan in other capital
reserves in the current period is composed of two parts: * a net amount of 30009672.78 yuan after deducting 929399.14 yuan
attributable to minority shareholders from the equity settled share payment expenses of 30939071.92 yuan; * The handling fee
for buy backing shares is 12151.88 yuan.
42. Treasury stock
In RMB
Item Opening balance Current increased Current decreased Ending balance
178WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Stock repurchases 397804542.63 71917549.61 469722092.24
Repurchase obligation of restricted stock
143818460.0080251040.0063567420.00
incentive plan
Total 541623002.63 71917549.61 80251040.00 533289512.24
Other explanation including changes in the current period and explanations of the reasons for the changes:
Share buy-back: the increase of 71917549.61 yuan due to share buy-back by way of centralized bidding in 2023;
Repurchase obligation of restricted stock incentive plan: has RMB 80251040.00 decreased in the Period mainly including two
parts: * RMB559350.00 cash dividends received by restricted stock incentive recipients during the period; and * RMB
79691690.00 is the buying back and cancellation of 6440500 restricted shares the first batch of unlocked in the Company’s
restricted stock incentive plan by the Company as treasury stock.
43. Other comprehensive income
In RMB
Current period
Less: written
Less: written
in other
in other
comprehensi
comprehensiv Belong
ve income in
e income in to
Opening previous Less: Belong to Account before previous minorit Ending
Item period and income parent
balance income tax in period and y balance
carried tax company
the year carried shareho
forward to expense after tax
forward to lders
retained
gains and after tax
earnings in
losses in
current
current period
period
I. Other
comprehensive -
-
income that 1189
-383156.26-1189898.59157305
cannot be 898.5
reclassified to 4.85 9
profit or loss
Including:Reme -
-
asure changes in 1189
-399165.06-1189898.59158906
defined benefit 898.5
plans 3.65 9
Other
comprehensive
income that
cannot be
16008.8016008.80
transferred to
profit or loss
under the equity
method
II. Other
comprehensive
income items
5625812455729970.8
which will be -528153.87 56258124.69
reclassified .69 2
subsequently to
profit or loss
Conversion
difference of
5625812455729970.8
foreign currency -528153.87 56258124.69
financial .69 2
statement
Total other 55068226 54156915.9
comprehensive -911310.13 55068226.10 .10 7
179WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
income
44. Reasonable reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Safety production costs 2119800.95 30768590.85 29246951.83 3641439.97
Total 2119800.95 30768590.85 29246951.83 3641439.97
Other explanation including changes and reasons for changes:
(1) Explanation on the withdrawing of special reserves (safe production cost): According to the CZ [2022] No.136- 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 Accrued by the Company in line with regulations
and the parts enjoy by shareholders of the Company in safety production costs Accrued by subsidiary in line with regulations.
45. Surplus reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Statutory surplus
510100496.00510100496.00
reserves
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 withdraws
statutory surplus reserve on 10% of the net profit. No more amounts shall be withdrawal if the accumulated statutory surplus reserve
takes over 50% of the registered capital.
46. Retained profit
In RMB
Item Current period Last period
Retained profits at the end of last year before
13320021325.9014814787377.86
adjustment
Retained profits at the beginning of the year
13320021325.9014814787377.86
after adjustment
Add: The net profits belong to owners of
1837291259.68118819836.30
patent company of this period
Less: Withdraw employee rewards and
4604208.164526219.46
welfare funds
Less: Cash dividends payable 97757979.30 1609059668.80
Retained profit at period-end 15054950398.12 13320021325.90
Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect 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
180WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 yuan
47. Operating income and cost
In RMB
Current period Last Period
Item
Income Cost Income Cost
Main operating 10926750670.90 9083184521.77 12333099421.87 10658281929.91
Other business 166391280.08 67128118.97 396535495.16 358103558.89
Total 11093141950.98 9150312640.74 12729634917.03 11016385488.80
Whether the lower of the audited net profit before and after deduction of non-recurring gains and losses is negative
□Yes □No
Breakdown information of operating income and operating cost:
In RMB
Automotive fuel injection
Automotive
systems and fuel cell Automotive intake system Other automotive
aftertreatment system Total
components product product segment components segment
product segment
Type of contract segment
Operat
Operating Operating Operatin Operating Operating Operating Operating Operating
ing Operating cost
income cost g income cost income cost income cost
income
Classified by
the time of
transfer of
goods
Including:
Main business
Including: 1092
Confirm at a 508074 3913984 340905 2981940 660060994 5095375 1776893 1677722 6750 9083184521.7
certain point in 1962.36 197.78 4236.79 280.48 .40 27.46 477.35 516.05 670.9 7
time 0
Confirm at a
certain time
period
Other business
Including:
1407
Confirm at a 981217 4128164 287523 7542581. 6177719.0 857866.0 7682787. 9845827.
345859527917.48
certain point in 65.05 2.58 18.79 44 2 5 10 41
9.96
time
Confirm at a
certain time
period
2565
2270095093327.2006632032502.474371.9
Rental Income 949128.05 6690. 7600201.49
28.04354.03222
12
1109
5201563960359343981299151566718784151086971784576168756831419150312640.7
Total
4655.45167.713189.61364.14.4765.43264.45343.46950.94
8
181WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Other explanation: Nil
48. Operating tax and extra
In RMB
Item Current period Last Period
City maintaining & construction tax 16905414.53 22771182.73
Educational surtax 12088114.70 16273199.41
Property tax 21212224.67 18009579.96
Land use tax 3992127.78 4517681.71
Vehicle use tax 29435.60 19195.41
Stamp duty 8287007.60 8187585.86
Other taxes 1950181.70 797159.81
Total 64464506.58 70575584.89
49. Administration expenses
In RMB
Item Current period Last Period
Salary and wage related expense 314566474.57 312885696.17
Depreciation charger and long-term
109483887.5180103136.06
assets amortization
Consumption of office materials and
27671402.4720460578.25
business travel charge
Share-based payment -19732503.59 18889058.87
Other 180107465.13 154048004.97
Total 612096726.09 586386474.32
50. Sales expenses
In RMB
Item Current period Last Period
Salary and wage related expense 73662318.04 59134720.55
Consumption of office materials and
12536232.607978020.25
business travel charge
Warehouse charge 21000061.65 12489955.81
Three guarantees and quality cost 88247974.30 73394539.28
Business entertainment fee 14118610.14 16300099.96
Other 21005989.87 20230754.86
Total 230571186.60 189528090.71
51. R&D expenditure
In RMB
Item Current period Last period
Technology development expenditure 667871159.95 581488711.88
Total 667871159.95 581488711.88
182WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
52. Financial expenses
In RMB
Item Current period Last Period
Interest expenses 95145829.10 107737432.78
Less: interest income 40360794.63 41020724.48
Gains/losses from exchange -10232320.08 10099986.41
Handling charges 3488218.26 5510921.05
Total 48040932.65 82327615.76
53. Other income
In RMB
Sources of income generated Current period Last period
Government grants with routine
75786785.30108331768.29
operation activity concerned
VAT instant refund 13900358.81
Tax credit for overseas subsidiaries 6945676.32 3338966.48
Refund of individual income tax
832150.33994662.50
handling fee
Total 97464970.76 112665397.27
Details of government subsidies included in other income:
Subsidy projects Current period Last period Related to assets/income
Industrialization project of electric controlled high-
pressure injection VE pump system for low emission -- 721000.26 Related to assets/income
diesel engines
Jiangsu Province Key Laboratory of Motor Vehicle
140833.00 170000.00 Related to assets/income
Exhaust Pollution Control (Engineering Center)
Funding for Wuxi Key Laboratory 35000.00 70000.00 Related to assets/income
Support Fund for Technical Renovation of Commercial
Vehicle Catalytic Reduction System Packaging Line with 259000.00 259000.00 Related to assets
an Annual Production of 140000 Units (2014)
Annual production of 300000 four cylinder engine
56878.65 96266.37 Related to assets
supercharger technology renovation project
Annual production of 150000 gasoline engine
-- 24239.76 Related to assets
turbochargers project
Depreciation/amortization compensation for newly built
18616741.70 19691341.21 Related to assets
assets after the relocation of the parent company
Technical transformation of catalytic reduction system for
commercial vehicles with an annual output of 180000 233555.56 233555.56 Related to assets
units
Research and industrialization project of high-pressure
variable pump for common rail system of automotive 1012586.51 1117613.70 Related to assets
diesel engine
Intelligent manufacturing demonstration project funds 180038.20 220493.70 Related to assets
Research Institute of Motor Vehicle Exhaust
95763.54 530870.24 Related to assets
Aftertreatment Technology
Implementation plan for variable cross-section
1548680.15 1628355.53 Related to assets
turbochargers in diesel engines
Subsidy for the annual production of 200000 gasoline
276403.68 130825.45 Related to assets
engine turbochargers technology renovation project
Annual production of 150000 gasoline engine 246974.99 282056.24 Related to assets
183WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Subsidy projects Current period Last period Related to assets/income
turbochargers
Technical Transformation Guidance Fund of the National
1214425.00 1270553.36 Related to assets
High tech Management Committee
Industrial upgrading fund 11977713.56 47459608.31 Related to assets
Funding for Wuxi Science and Technology Research and
-- 140000.00 Related to assets/income
Development Institutions in 2015
R&D capability and production line technology
transformation project of distributed high-pressure 781651.40 781651.38 Related to assets
common rail system for diesel engines
Anione 168069.46 264812.57 Related to income
Neptune 147478.34 357572.17 Related to income
Funding for municipal level technological renovation
615897.08 616309.46 Related to assets
projects in 2020
The second batch of provincial special funds for
industrial and information industry transformation in 1200987.63 1596505.99 Related to assets
2019
Borit R&D subsidy -- 35419.76 Related to income
ECOethylene 529630.58 1250899.19 Related to income
Borit withholding’s returning -- 1400901.38 Related to income
Subsidies for stabilizing and expanding positions 2715586.61 3820755.20 Related to income
WFJN financial Support Fund 2750000.00 1230000.00 Related to income
Key technology research and development project for
intelligent management of diesel engine electronic 155154.12 680983.13 Related to income
control fuel system
Selection of Top 50 Enterprises in Jiangbei District
-- 1030000.00 Related to income
Ningbo
Development funds for small and medium-sized
-- 2000000.00 Related to income
enterprises
Special funds for high-quality development -- 1000000.00 Related to income
Strategic Cooperation Agreement Funds for Key
833156.76 1076250.73 Related to income
Intelligent Manufacturing Enterprises in High tech Zone
2021 Industrial Development Funds for Investment
-- 6913300.00 Related to income
Attracting Enterprises in Tongliang District
Training subsidies 143800.00 432575.00 Related to income
Talent policy subsidies 663250.00 1135000.00 Related to income
Special funds for intelligent transformation and digital
2300000.00 Related to income
transformation
2022 Headquarters Enterprise Rewards 1000000.00 Related to income
2020 Wuxi Science and Technology Development Fund 4500000.00 Related to income
Technical renovation awards and guidance funds 1030000.00 Related to income
Wuxi Industrial Transformation and Upgrading Fund 11678229.15 Related to assets/income
Technical Renovation and Capacity Optimization Project
323880.62 Related to assets
for Annual Production of 150000 Turbochargers
Other 8355419.01 8663052.64 Related to assets/income
Total 75786785.30 108331768.29
54. Income from change of fair value
In RMB
184WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Sources Current period Last period
Changes in the fair value of wealth management
3864051.26-12803609.57
products
Changes in the fair value of the stocks of listed
companies held-excluding the stocks of listed
5903595.38-144072026.77
companies that are included in other equity
instrument investments
Changes in fair value of foreign exchange
-747115.75
contracts
Total 9767646.64 -157622752.09
55. Investment income
In RMB
Item Current period Last period
Income of long-term equity investment calculated
1596392131.721636986684.96
based on equity method
Investment income from holding of trading
94704109.98216491612.58
financial assets
Investment income from disposal of trading
13328675.84137682.59
financial assets
Dividend income obtained from other equity
683455.00
instrument investments during the holding period
Income from debt restructuring -323525.00
Gains/losses recognized when financing of
-2111334.30-5153934.63
accounts receivable is terminated for discounting
Total 1701990058.24 1849145500.50
56. Credit impairment loss
In RMB
Item Current period Last period
Bad debt loss of accounts receivable -2323920.65 -227652.91
Bad debt loss of other accounts receivable -2078528.42 -1645653489.49
Total -4402449.07 -1645881142.40
57. Asset impairment loss
In RMB
Item Current period Last period
1. Loss of inventory falling price and loss of
-205166872.96-181610433.12
contract performance cost impairment
2. Impairment loss of fixed assets -502006.79
3. Impairment loss of construction in progress -184615.38
4. Impairment loss of goodwill -125422037.41
Total -331275532.54 -181610433.12
58. Income from assets disposal
In RMB
Sources Current period Last period
Income from disposal of non-current assets 129441950.49 3687970.49
185WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Losses from disposal of non-current assets -1127465.96 -1701165.96
Total 128314484.53 1986804.53
Other explanation: In 2023 the Housing Acquisition Management Office of Qixia District Nanjing City signed the Nanjing State
owned Land Housing Acquisition and Compensation Agreement with its subsidiary WFJN. According to the agreement the land
houses and building attachments of Weifu Jinning located at No. 69 Taiping Village Yanziji Town Qixia District will be
expropriated by the government. The compensation method for expropriation is monetary compensation with a compensation
amount of 119435904.00 yuan which is mainly determined based on the evaluation results issued by the evaluation company. As
of December 31 2023 the Company has delivered the expropriated houses and land in accordance with the agreement and has
also delivered the relevant original house ownership certificates and state-owned land use certificates to the Housing Expropriation
Management Office of Qixia District Nanjing City. In 2023 WFJN has received full compensation.
59. Non-operating income
In RMB
Amount reckoned into current non-
Item Current period Last period
recurring gains/losses
Payables that do not require payment 16309506.68 2048698.72 16309506.68
Price difference for business combinations
3181563.57
not under the same control
Liquidated damages and compensation
28044.25281760.5328044.25
income
Other 774256.31 187745.22 774256.31
Total 17111807.24 5699768.04 17111807.24
60. Non-operating expense
In RMB
Amount reckoned into current non-
Item Current period Last period
recurring gains/losses
Donation 520000.00 5013500.00 520000.00
Non-current assets disposal losses 1776304.86 2135371.43 1776304.86
Including: loss on scrapping of fixed assets 1776304.86 2135371.43 1776304.86
Loss on scrapping of intangible
assets
Other 2114886.99 562788.63 1094335.42
Total 4411191.85 7711660.06 4411191.85
61. Income tax expense
(1) Income tax expense
In RMB
Item Current period Last period
Payable tax in current period 61654852.13 11061046.36
Adjust previous income tax -96623.66 2032113.63
Increase/decrease of deferred income tax assets -29999459.03 -56032739.30
Increase/decrease of deferred income tax liability -10363707.21 31608004.40
Total 21195062.23 -11331574.91
186WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item Current period
Total profit 1934344592.32
Income tax measured by statutory/applicable tax rate 290151688.85
Impact by different tax rate applied by subsidies -11444237.30
Impact from adjusting the previous income tax -96623.66
Impact by non-taxable revenue -241119377.31
Impact on cost expenses and losses that unable to deducted 43791316.04
Impact by the deductible losses of the un-recognized previous deferred income tax -20847787.63
The deductible temporary differences or deductible losses of the un-recognized
27720065.21
deferred income tax assets in the Period
Impact on additional deduction -64268987.24
Other -2690994.73
Income tax expense 21195062.23
62. Other comprehensive income
See Note VII-43“Other comprehensive income”.
63. Items of cash flow statement
(1) Cash received in relation to operation activities
Other cash received in relation to operation activities
In RMB
Item Current period Last period
Interest income 40360794.63 41020724.48
Government grants 38542836.17 32507707.23
Margin on operation bill 5804353.60 170000.00Capital inflow of WFTR “platform
199235761.253604252294.46trade” business portfolio
Other 20368806.84 4898138.17
Total 304312552.49 3682848864.34
Explanation on other cash received in relation to operation activities: Nil
Other cash paid in relation to operation activities
In RMB
Item Current period Last period
Cash cost 653211963.42 571583226.93Capital outflow of WFTR “platform
6345751426.41trade” business portfolio
Other 19807691.63 37760946.39
Total 673019655.05 6955095599.73
Explanation to other cash paid in relation to operation activities: Nil
(2) Cash in relation to investment activities
Other cash received in related to investment activities
In RMB
187WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Item Current period Last period
Recovery of forward foreign exchange
18840000.00
settlement and sales deposit
Total 18840000.00
Significant cash received in related to investment activities: Nil
Explanation on other cash received in related to investment activities: Nil
Cash paid in related to investment activities
In RMB
Item Current period Last period
Deposit paid for the purchase of VHWX 136739145.73
Payment of foreign exchange contract
deposit and loss of foreign exchange 13036225.94 9492968.77
contract
Total 13036225.94 146232114.50
Significant cash paid in related to investment activities: Nil
Explanation on other cash paid in related to investment activities: Nil
(3) Cash in related to financing activities
Other cash paid in related to financing activities
In RMB
Item Current period Last period
Repayment of non-financial enterprise loans 163470112.06
Borrowing return by WFLD 5470000.00
Lease payments 18319242.80 19302140.88
Repurchase of A shares 71917549.61 397804542.63
Shares repurchase for restricted stock incentive plan unlocked 74368290.00 5323400.00
Other 27791.59
Total 164632874.00 591370195.57
Explanation on other cash paid in relation to financing activities: Nil
Changes in liabilities arising from financing activities
□Applicable □Not applicable
In RMB
Current increase Current decrease
Beginning
Item
balance Changes in Changes in Changes in Changes in
Ending balance
cash non-cash cash non-cash
Short-term 3604376527. 2271375308. 5114399759.
77537480.05838889557.51
borrowing 82 64 00
Long-term
238000000.00425000000.00338500000.0024700000.00299800000.00
borrowing
Non-current
liabilities
14285348.9049784362.7725985390.5738084321.10
maturing within
one year
Lease liabilities 31589277.20 23663633.85 4397712.88 13122001.66 37733196.51
3888251153.2696375308.5483282862.1214507075.
Total 150985476.67 37822001.66
92644512
188WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Other Explanation: Current increase in short-term loans - non cash changes including exchange gains and losses - RMB
1811249.94；The current decrease in long-term borrowings and lease liabilities - non cash changes due to reclassification of
amounts due within one year to non current liabilities due within one year.
(4) Explanation on cash flow listed at net amount
Nil
(5) Significant activities and financial impacts that do not involve current cash inflows and outflows but
affect the financial condition of the enterprise or may affect the cash flow of the enterprise in the future
Nil
64. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information Current period Last Period
1. Net profit adjusted to cash flow of operation activities:
Net profit 1913149530.09 190946008.25
Add: Assets impairment provision 335677981.61 1827491575.52
Depreciation of fixed assets consumption of oil assets and depreciation of
529985637.44423381573.22
productive biology assets
Depreciation of right-of-use assets 14870657.15 10487347.35
Amortization of intangible assets 72828479.04 47414586.57
Amortization of long-term deferred expenses 7361781.35 5676279.94
Losses from disposal of fixed assets intangible assets and other long-term assets
-128314484.53-1986804.53
(gains shall be filled in with the sign of “-”)
Losses on scrapping of fixed assets(gains shall be filled in with the sign of “-”) 1791596.04 2135371.43
Gains/losses of fair value changes(gains shall be filled in with the sign of “-”) -9767646.64 157622752.09
Financial expenses(gains shall be filled in with the sign of “-”) 83562038.16 106707239.68
Investment loss (gains shall be filled in with the sign of “-”) -1715570129.25 -1874322320.27
Decrease of deferred income tax asset(increase shall be filled in with the sign of
-29999459.03-56032739.30
“-”)
Increase of deferred income tax liability(decrease shall be filled in with the sign
-10363707.2131608004.40
of “-”)
Decrease of inventory(increase shall be filled in with the sign of “-”) 14264964.67 1073359311.32
Decrease of operating receivable accounts (increase shall be filled in with the
-231126963.47-3936816340.90
sign of “-”)
Increase of operating payable accounts(decrease shall be filled in with the sign of
804259836.29-608366974.35
“-”)
Other -26360199.81 24952480.15
Net cash flows arising from operating activities 1626249911.90 -2575742649.43
2. Major investments and financing activities that do not involve cash receipts
and payments
debt-to-capital
Convertible bonds maturing within one year
Financing to lease fixed assets
3. Net change of cash and cash equivalents:
Balance of cash at period end 2061986694.41 2277117604.82
Less: Balance of cash equivalent at year-begin 2277117604.82 1094018936.73
189WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Add: Balance at year-end of cash equivalents
Less: Balance at year-begin of cash equivalents
Net increase of cash and cash equivalents -215130910.41 1183098668.09
(2) Net cash payment for the acquisition of subsidiaries in the period
In RMB
Amount
Add: Cash or cash equivalents paid in the current period for the
13716100.33
business acquisition that occurred in previous periods
Including:
Net cash payment for the acquisition of subsidiaries 13716100.33
Other explanation: Nil
(3) Net cash received from the disposal of subsidiaries
Nil
(4) Constitution of cash and cash equivalent
In RMB
Item Ending balance Opening balance
I. Cash 2061986694.41 2277117604.82
Including: Cash on hand 6343.24 51818.51
Bank deposit available for
2061980351.172277065786.31
payment at any time
II. Balance of cash and cash equivalents
2061986694.412277117604.82
at the period-end
(5) Items whose application scope is restricted but are still listed as cash and cash equivalents
(6) Monetary items not belonging to cash and cash equivalents
In RMB
Reasons for not belonging to cash
Item Current period Last period
and cash equivalents
Bank deposit-Bank fixed deposits of more than Does not meet the definition of cash
180000000.0060000000.00
3 months and cash equivalents
Other monetary funds- Foreign exchange Does not meet the definition of cash
18840000.00
contract USD margin and cash equivalents
Other monetary funds- Deposit paid for issuing Does not meet the definition of cash
22174151.9424368385.65
bank acceptance bills and cash equivalents
Does not meet the definition of cash
Other monetary funds- IRD performance bond 7902000.00 7487250.00
and cash equivalents
Other monetary funds- Mastercard earnest Does not meet the definition of cash
210720.00199660.00
money and cash equivalents
Does not meet the definition of cash
Other monetary funds- ETC freeze 4000.00 5000.00
and cash equivalents
Does not meet the definition of cash
Other monetary funds- Judicial freeze 180000.00
and cash equivalents
Other monetary funds- Foreign exchange funds Does not meet the definition of cash
1184752.7991750.29
in transit and cash equivalents
Does not meet the definition of cash
Other monetary funds- Dividends in transit 1309380.00 1262280.00
and cash equivalents
Total 212785004.73 112434325.94
Other explanation: Nil
190WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
(7) Notes to other significant activities
65. Note of the changes of owners’ equity
Explain the items and amount at period-end adjusted for “Other” at end of the last year:
In this period the Company did not make any adjustments to the year-end balance of the previous year including the names and
amounts of other items.
66. Item of foreign currency
(1) Item of foreign currency
In RMB
Ending balance of foreign Rate of conversion Ending RMB balance
Item
currency converted
Monetary funds
Including: USD 9668849.38 7.0827 68481559.49
EUR 31497419.60 7.8592 247544520.12
HKD 914138.23 0.90622 828410.35
JPY 7975655.00 0.050213 400481.57
DKK 15008361.83 1.0536 15812810.02
Account receivable
Including: USD 3671490.42 7.0827 26004065.20
EUR 26826563.09 7.8592 210835324.64
HKD
JPY 15066940.00 0.050213 756556.26
DKK 9465657.99 1.0536 9973017.26
Long-term borrowings
Including: USD
EUR
HKD
Other account receivables
Including: EUR 277184.18 7.8592 2178445.91
DKK 2180889.68 1.0536 2297785.37
Account payable
Including: USD 1259805.06 7.0827 8922821.30
EUR 29745541.80 7.8592 233776162.12
JPY 19496400.00 0.050213 978972.73
DKK 23043173.79 1.0536 24278287.91
GBP 2450.00 9.0411 22150.70
CHF 317934.39 8.4184 2676498.87
Other account payable
Including: EUR 13639.91 7.8592 107198.78
DKK 1230912.02 1.0536 1296888.90
Non-current liabilities due
within one year
Including: USD 156484.17 7.0827 1108330.43
EUR 601051.35 7.8592 4723782.77
DKK 1257635.41 1.0536 1325044.67
191WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Leasing liabilities
Including: USD 230805.29 7.0827 1634724.63
EUR 1140990.24 7.8592 8967270.49
DKK 19974012.44 1.0536 21044619.51
(2) Explanation on foreign operational entities including as for the major foreign operational entity
disclosed main operation place book-keeping currency and basis for selection; if the book-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 acquired by the Company in
cash in April 2019. In October 2020 the company acquired the remaining 34.00% equity of IRD in cash thus the Company holds
100% equity of IRD. IRD is denominated in Danish krone and IRD is mainly engaged in R&D production and sales of fuel cell
components.Subsidiary Borit was established in Belgium in 2010. The Company acquired 100% equity of Borit in cash in November 2020. Borit
is denominated in Euro and engaged in R&D production and sales of fuel cell components.Subsidiary VHIO was established in Italy in 2000. The Company acquired 100.00% equity of VHIO in cash in October 2022. The
Company is denominated in Euro and engaged in R&D production and sales of vacuum and hydraulic pumps.
67. Lease
(1) The company as the lessee
Variable lease payments not included in the measurement of lease liabilities
□Applicable □Not applicable
Leasing costs of simplified handling of short-term leasing or leasing costs for low value assets
□Applicable □Not applicable
Leasing cost of simplified handling of short-term leasing or leasing costs for low value assets is 8493394.15 yuan; The total cash
outflow related to leasing is 26928749.23 yuan.The relevant information on the right-of-use assets can be found in NoteVII-16 “Right of use assets”.Situations involving lease sales-back
(2) The company as the lessor
Operating lease with the company as the lessor
□Applicable □Not applicable
In RMB
Item Rental income Including: income related to variable lease payments not included in rental income
Rental of houses and
25656690.12
equipment
Total 25656690.12
Financing lease with the company as the lessor
□Applicable □Not applicable
Annual un-discounted rental income for the next five years
□Applicable □Not applicable
Adjustment table for un-discounted rental income and net lease investments
192WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
(3) Recognize gains/losses arising from financing lease sale with the company as producer or dealer
□Applicable □Not applicable
68. Others
Nil
VIII. R&D expenditure
In RMB
Item Current period Last period
Employee compensation 285889549.54 252383929.03
Direct investment 195791776.44 189668890.73
Depreciation and amortization 117384698.44 95794189.07
Other 68805135.53 43641703.05
Total 667871159.95 581488711.88
Including: expensed R&D expenditure 667871159.95 581488711.88
1. R&D items that meet capitalization conditions: Nil
2. Important outsourced projects under research: Nil
IX. Changes of consolidation scope
1. Enterprise combine not under the same control
(1) Enterprise combines not under the same control occurred in the period
Nil
(2) Consolidation cost and goodwill
Nil
(3) Book value of assets and liabilities of the merged party on the merger date
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 merge date or the end of the period in which the merger consideration or the fair
value of the merged party’s identifiable assets and liabilities cannot be reasonable determined
Nil
(6) Other explanation
Nil
193WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
2. Enterprise combination under the same control
(1) Enterprise combination under the same control that occurred in the current period
Nil
(2) Consolidation cost
Nil
(3) Book value of assets and liabilities of the merged party on the merger date
Nil
3. Reverse purchase
Nil
4. Disposal of subsidiaries
Whether there is a single disposal of an investment in a subsidiary that resulted in a loss of control
□Yes □No
Whether there is a step-by-step disposal of investment in a subsidiary through multiple transactions and loss of control during the
period
□Yes □No
5. Changes in the scope of consolidation due to other reasons
Nil
6. Others
Nil
X. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
In ten thousand yuan
Main
Registered Egistered Share-holding ratio
Subsidiary operation Business nature Acquired way
capital place
place Directly Indirectly
Spare parts of internal- Enterprise combines under the
WFJN 34628.68 Nanjing Nanjing combustion engine 80.00% same control
Automobile exhaust purifier Enterprise combines under the
WFLD 50259.63 Wuxi Wuxi muffler 94.81% same control
Spare parts of internal-
WFMA 16500 Wuxi Wuxi Investment combustion engine 100.00%
Spare parts of internal-
WFCA 21000 Wuxi Wuxi 100.00% Investment combustion engine
Enterprise combines under the
WFTR 3000 Wuxi Wuxi Trading 100.00% same control
194WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Spare parts of internal-
WFSC 7600 Wuxi Wuxi Investment combustion engine 66.00%
Spare parts of internal- Enterprise combines not under
WFTT 11136 Ningbo Ningbo combustion engine 98.83% 1.17% the same control
Spare parts of internal- Enterprise combines not under
WFAM USD3310 Wuxi Wuxi combustion engine 51.00% the same control
Automobile exhaust purifier
WFLD (Wuhan) 1000 Wuhan Wuhan muffler 60.00%
Investment
WFLD Automobile exhaust purifier
5000 Chongqing Chongqing 100.00% Investment (Chongqing) muffler
WFLD Automobile exhaust purifier
Nanchang Nanchang
(Nanchang) 5000 muffler 100.00%
Investment
WFAS 10000 Wuxi Wuxi Smart car equipment 66.00% Investment
Enterprise combines not under
WFDT USD2000 Wuxi Wuxi Hub Motor 80.00% the same control
WFQL 50000 Wuxi Wuxi Fuel cell components 45.00% 30.00% Investment
Enterprise combines not under
VHWX 13400 Wuxi Wuxi Vacuum and hydraulic pump 100.00% the same control
SPV DKK9257 Denmark Denmark Investment 100.00% Investment
Enterprise combines not under
IRD DKK10579 Denmark Denmark Fuel cell components 100.00% the same control
Enterprise combines not under
IRD America USD1201.83 America America Fuel cell components 100.00% the same control
Enterprise combines not under
Borit EUR1183.21 Belgium Belgium Fuel cell components 100.00% the same control
Enterprise combines not under
Borit America USD0.10 America America Fuel cell components 100.00% the same control
Enterprise combines not under
VHIO EUR500 Italy Italy Vacuum and hydraulic pump 100.00% the same control
Explanation on share-holding ratio in subsidiary different from ratio of voting right: Nil
Basis for holding half or less of the voting rights but still controlling the investee and holding more than half of the voting rights
but not controlling the investee: Nil
Basis for inclusion in the scope of consolidation of significant structured entities control: Nil
Basis for determining whether a company is an agent or a principal: Nil
Other explanation: Nil
(2) Important non-wholly-owned subsidiary
In RMB
Dividend announced to
Share-holding ratio of Gains/losses attributable Ending equity of
Subsidiary distribute for minority in
minority to minority in the Period minority
the Period
WFJN 20.00% 32888445.77 11641107.58 231399302.98
WFLD 5.19% 3426727.50 156465455.26
Total 36315173.27 40453107.58 387864758.24
Explanation on holding ratio different from the voting right ratio for minority shareholders: Nil
(3) Main finance of the important non-wholly-owned subsidiary
195WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
In RMB
Ending balance Opening balance
Subs Non- Non-
Non- Current Total Non- Current Total
idiar Current Total current Current Total current
current liabilitie liabilitie current liabilitie liabilitie
y assets assets liabiliti assets assets liabilitiassets s s assets s s
es es
32816
WFJ 800008 763327 156333 372678 405494 858419 577359 143577 346383 35181 381564
414.2
N 834.76 722.52 6557.28 469.77 883.98 058.16 266.26 8324.42 138.63 853.60 992.23
1
2098921807
WFL 388756 158890 547647 265821 267920 486937 141223 628161 351211 373019
867.95518.7
D 4531.99 9706.92 4238.91 6800.87 6668.77 3661.60 7671.12 1332.72 6686.68 2205.47
09
5380625325
468757235223703981303089308470572779198959771738385849411175
Total 282.1 7372.3
3366.757429.440796.195270.641552.752719.766937.389657.149825.317197.70
19
In RMB
Current period Last period
Subsidiar Cash flow Cash flow Total Total
Operation from Operation from
y Net profit comprehensi Net profit comprehensi
Income operation Income operation
ve income ve income
activity activity
661256020.1164076571.164076571.732361563.783150768.483150768.462087338.8
WFJN 7886426.15
771712335
3605313446.232172143.232172143.814222683.5937549034.265352997.265352997.87740237.6
WFLD
674848454231313
4266569466.396248715.396248715.822109109.6669910598.348503765.348503765.149827576.
Total
8419196014747448
(4) Significant restrictions on the use of enterprise group assets and pay off debts of the enterprise group
Nil
(5) Financial or other supporting offers to 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
Other explanation: Nil
3. Equity in joint venture and associated enterprise
(1) Important joint venture and associated enterprise
Share-holding ratio Accounting
Main treatment on
Regist
operat investment for
Joint venture or associated enterprise ered Business nature
ion Indirectl
place Directly joint venture and
place y associated
enterprise
196WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
WFEC Wuxi Wuxi Catalyst 49.00% Equity method
Internal-
RBCD Wuxi Wuxi combustion 32.50% 1.50% Equity method
engine accessories
Internal-
Shang Shang
Zhonglian Electronics. combustion 20.00% Equity method
hai hai
engine accessories
Internal-
WFPM Wuxi Wuxi combustion 20.00% Equity method
engine accessories
Chang Chang Automobile
Changchun Xuyang 34.00% Equity method
chun chun components
Germa Germa Fuel cell
PrecorsGmbH 43.39% Equity method
ny ny components
Telematics 9.6372
Auto Link Wuxi Wuxi Equity method
services %
Shang Shang Automobile
Lezhuo Bowei 50.00% Equity method
hai hai components
Holding shares ratio different from the voting right ratio: Nil
Has major influence with less 20% voting rights hold or has minor influence with over 20% (20% included) voting rights hold:
The Company holds 9.6372% equity of Auto Link and appointed a director to Auto Link. Though the representative the Company
can participate in the operation policies formulation of Auto Link and thus exercise a significant influence over Auto Link.
(2) Main financial information of the important joint venture
Other explanation: Nil
(3) Main financial information of the important associated enterprise
In RMB
Ending balance/Current period Opening balance/Last Period
Zhonglian Zhonglian
WFEC RBCD WFEC RBCD
Electronics Electronics
Current assets 13057353298.2 15426523373.9
3309330261.33156804165.223507976754.16241595079.15
49
Including: cash
and cash 695880608.87 16224264.19 131177239.01 813874175.27 10773921.81 225052854.96
equivalent
Non -current
417489997.173452708227.208276183030.91333764427.433421035986.827557124612.32
assets
16510061525.418847559360.8
Total assets 3726820258.50 8432987196.13 3841741181.59 7798719691.47
41
Current
1402974842.298401045934.297530191.601665411123.818810309639.096171780.23
liabilities
Non-current
455453890.824983100.68493618200.852517670.77
liabilities
Total liabilities 1858428733.11 8401045934.29 12513292.28 2159029324.66 8810309639.09 8689451.00
Minority
interests
Attributable to
parent company 10037249721.7
1868391525.398109015591.158420473903.851682711856.937790030240.47
shareholders’ 2
equity
Share of net
assets
calculated by 915511847.44 2757065300.99 1684094780.77 824528809.90 3412664905.38 1558006048.09
shareholding
ratio
Adjustment
matters
197WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
--Goodwill 267788761.35 1407265.96 267788761.35 1407265.96
--Unrealized
profit of -9546770.23 -20692355.48
internal trading
--Other -0.28 -0.28
Book value of
equity
investment in 915511847.44 3015307291.83 1685502046.73 824528809.90 3659761310.97 1559413314.05
associated
enterprise
Fair value of
equity
investment for
the affiliates
with
consideration
publicly
Operation 13269586309.5 13443929728.5
3925439987.4330337704.694983370807.1526913563.07
income 6 8
Financial
7037634.3983168950.55-4623827.4237298423.01-12919599.29-3814000.75
expense
Income tax
59152017.79287380800.907155753.0543882305.71494166513.514465983.95
expense
Net profit 422428917.15 2994134912.69 2040443663.38 354097545.31 3059444530.82 1876187641.39
Net profit from
discontinued
operations
Other
comprehensive
income
Total
comprehensive 422428917.15 2994134912.69 2040443663.38 354097545.31 3059444530.82 1876187641.39
income
Dividends
received from
associated 117600000.00 1673605474.71 282000000.00 147000000.00 765837710.23 194400000.00
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
In RMB
Ending balance/Current period Opening balance/Last period
Joint venture:
Amount based on share-holding ratio
Associated enterprise:
Total book value of investment 331312321.07 239114674.05
Amount based on share-holding ratio
--Net profit -22757873.48 7198399.91
--Total comprehensive income -22757873.48 7198399.91
Other explanation: Nil
(5) Major limitation on capital transfer ability to the Company from joint venture or associated
enterprise
Nil
198WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
(6) Excess loss occurred in joint venture or associated enterprise
Nil
(7) Unconfirmed commitment with joint venture investment concerned
Nil
(8) Intangible liability with joint venture or associated enterprise investment concerned
Nil
4. Major joint operation
Nil
5. Structured body excluding in consolidated financial statement
Relevant explanations for structured entities not included in the scope of the consolidated financial statements: Nil
6. Other
Nil
XI. Government grant
1. Government grant recognized at report ending in terms of amount receivable
□Applicable □Not applicable
Reasons for not receiving the expected amount of government grants at the expected time point
□Applicable □Not applicable
2. Liabilities involved with government grant
□Applicable □Not applicable
In RMB
Amount
Other
booked into Amount carried
Accounti Opening Current increase in changes in Asset/income
non-business forward to other Ending balance
ng title balance government grant current related
income in income
period
current period
Deferred
124014866.23 16385000.00 44535440.16 95864426.07 Asset related
income
Deferred Asset/income
3404849.87490987.122913862.75
income related
Deferred
95704262.68 10199244.26 16051766.11 143592.64 89995333.47 Income related
income
Total 223123978.78 26584244.26 61078193.39 143592.64 188773622.29
199WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
3. Government grant booked into current gains/losses
□Applicable □Not applicable
In RMB
Accounting title Current period Last period
Other revenue 75786785.30 108331768.29
Other explanation: Nil
XII. Risk related with financial instrument
1. Various risks arising from financial instruments
Main financial instrument of the Company including monetary funds structured deposits account receivable equity instrument
investment financial products loans and account payable etc. more details of the financial instrument can be found in relevant
items of Note V. Risks concerned with the above-mentioned financial instrument and the risk management policy takes for lower the
risks are as follow:
Aims of engaging in the risk management is to achieve equilibrium between the risk and benefit lower the adverse impact on
performance of the Company to minimum standards and maximized the benefit for shareholders and other investors. Base on the
risk management targets the basic tactics of the risk management is to recognized and analyzed the vary risks that the Company
counted established an appropriate risk exposure baseline and caring risk management supervise the vary risks timely and reliably
in order to control the risk in a limited range.In business process the risks with financial instrument concerned happen in front of the Company mainly including credit exposure
market risk and liquidity risk. BOD of the Company takes full charge of the risk management target and policy-making and takes
ultimate responsibility for the target of risk management and policy. Compliance department and financial control department
manager and monitor those risk exposures to ensuring the risks are control in a limited range.
(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 far if the total of the two exceeds the credit limit of the customer the company can only sell to the customer
on the premise of additional approval otherwise the customer must be required to pay the corresponding amount in advance. In
addition for the credit sales that have occurred the company analyzes and audits the monthly statements for risk warning of accounts
200WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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 line with the anticipative
change orientation choose floating rate or fixed rate that is the rate in future period will goes up prospectively then choose fixed
rate; if the rate in future period will decline prospectively 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 operation of Borit and operation of VHIO and 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 2023 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 2023:
Ending foreign Ending RMB balance
Item Convert rate Ratio in assets (%)
currency balance converted
Monetary funds
Including: USD 9668849.38 7.0827 68481559.49 0.24
EUR 31497419.60 7.8592 247544520.12 0.88
HKD 914138.23 0.90622 828410.35 0.00
JPY 7975655.00 0.050213 400481.57
DKK 15008361.83 1.0536 15812810.02 0.06
Account receivable
Including: USD 3671490.42 7.0827 26004065.20 0.09
EUR 26826563.09 7.8592 210835324.64 0.75
JPY 15066940.00 0.050213 756556.26 0.00
DKK 9465657.99 1.0536 9973017.26 0.04
Other account receivables
Including: EUR 277184.18 7.8592 2178445.91 0.01
DKK 2180889.68 1.0536 2297785.37 0.01
Total ratio in assets 2.08
* Foreign currency liability of the Company till end of 31st December 2023:
Ending foreign Ending RMB balance
Item Convert rate Ratio in assets(%)
currency balance converted
Account payable
Including: USD 1259805.06 7.0827 8922821.30 0.11
EUR 29745541.80 7.8592 233776162.12 2.96
JPY 19496400.00 0.050213 978972.73 0.01
201WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Ending foreign Ending RMB balance
Item Convert rate Ratio in assets(%)
currency balance converted
DKK 23043173.79 1.0536 24278287.91 0.31
GBP 2450.00 9.0411 22150.70 0.00
CHF 317934.39 8.4184 2676498.87 0.03
Other account payable
Including: EUR 13639.91 7.8592 107198.78 0.00
DKK 1230912.02 1.0536 1296888.90 0.02
Non-current liabilities due
within one year
Including: USD 156484.17 7.0827 1108330.43 0.01
EUR 601051.35 7.8592 4723782.77 0.06
DKK 1257635.41 1.0536 1325044.67 0.02
Leasing liabilities
Including USD 230805.29 7.0827 1634724.63 0.02
EUR 1140990.24 7.8592 8967270.49 0.11
DKK 19974012.44 1.0536 21044619.51 0.27
Total ratio in liabilities 3.93
* 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 meeting of 8th session of the BOD the Company exercise entrust
financing with the self-owned idle capital; therefore the Company has the risks of collecting no principal due to entrust financial
products default. Aims at such risk the Company formulated the Management Mechanism of Capital Financing and well-defined the
authority to entrust financial management audit process reporting system Choice of trustee daily monitoring and verification and
investigation of responsibility etc. In order to lower the adverse impact from unpredictable factors the Company choose short-term
and medium period for investment and investment product’s term is up to 5 years in principle; The variety of investment includes
bank financial products trust plans of trust companies asset management plans of asset management companies various products
issued by securities companies fund companies and insurance companies etc.
(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.
2. Hedge
(1) Risk management for hedge business
□Applicable □Not applicable
202WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
(2) The company conducts eligible hedging business and applies hedging accounting
Nil
(3) The company conducts hedging business for risk management. It is expected to achieve risk
management goals but has not applied hedging accounting
□Applicable □Not applicable
3. Financial assets
(1) By transfer manner
□Applicable □Not applicable
In RMB
Amount of
Transfer Derecognized Judgment basis for
Nature of transferred financial assets transferred financial
method or not derecognition
asset
Bank acceptance bills in accounts Almost all of its risks and
Bill
receivable financing that have not yet 127359498.05 Derecognized rewards have been
endorsement
matured transferred
Bank acceptance bills in accounts Almost all of its risks and
Bill
receivable financing that have not yet 131605542.60 Derecognized rewards have been
discounting
matured transferred
Unexpired network supply chain "e- Not
Factoring 14581430.53
communication" in accounts receivable derecognized
total 273546471.18
(2) Financial assets derecognized due to transfer
□Applicable □Not applicable
In RMB
Methods of transferring Amount of derecognized Gains/losses related to de-
Item
financial assets financial assets recognition
Accounts receivable financing Bill endorsement 127359498.05
Accounts receivable financing Bill discounting 131605542.60 -2111334.30
Total 258965040.65 -2111334.30
(3) Financial assets which are transferred and involved continuously
□Applicable □Not applicable
In RMB
Methods of transferring Amount of asset continuously Amount of liability
Item
financial assets involved continuously involved
Accounts receivable Factoring 14581430.53 16111371.14
Total 14581430.53 16111371.14
Other explanation: Nil
203WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
XIII. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
Ending fair value
Item
First level Second level Third level Total
I. Sustaining measured at fair value -- -- -- --
1. Financial assets measured at fair value and
whose changes are included in current profit 148914616.00 3046922649.02 3195837265.02
or loss
(I) Trading financial assets 147830616.00 2243656528.96 2391487144.96
(1) Equity instrument investment 147830616.00 147830616.00
(2) Other liability instruments and equity
2243656528.962243656528.96
instrument investment
2. Other non-current financial assets 1084000.00 803266120.06 804350120.06
(1) Equity instrument investment 1084000.00 653266120.06 654350120.06
(2) Other liability instruments and equity
150000000.00150000000.00
instrument investment
(II) Financial assets measured at fair value
and whose changes are included in current 2339540639.46 2339540639.46
profit or loss
1. Receivable financing 1661749949.46 1661749949.46
2. Other equity instrument investment 677790690.00 677790690.00
Total asset sustaining measured by fair value 148914616.00 5386463288.48 5535377904.48
II. Non-persistent measure of fair value -- -- -- --
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on first
level
On 31 December 2023 the financial assets available for sale equity instrument investments held by the Company include SNAT
(stock code: 600841) and Miracle Automation (Stock code: 002009). The fair value at the end of the period is determined at the
closing price as of December 29 2023.On 31 December 2023 the non-current financial assets equity instrument investments held by the Company include Guolian
Securities (stock code: 601456). The fair value at the end of the period is determined at the closing price as of December 29 2023
3. The qualitative and quantitative information for the valuation technique and critical parameter that
sustaining and non-persistent measured by fair value on second level
Nil
4. Continuous and non continuous third level fair value measurement items
(1) Accounts receivable financing
For this portion of financial assets the company uses discounted cash flow valuation techniques to determine their fair value.Among them important unobservable input values mainly include discount rate contract cash flow maturity period etc. Cash
flows with a contract maturity of 12 months or less are not discounted and their fair value is based on cost.
204WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
(2) Other equity instrument investments
For this portion of financial assets due to the lack of market liquidity the company adopts the reset cost method to determine their
fair value. Among them important unobservable input values mainly include financial data of the invested company.
(3) Other debt instruments and equity instrument investments
For this portion of financial assets our company adopts the discounted cash flow valuation technique for determination. Among
them important unobservable input values mainly include expected annualized return risk coefficient etc.
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
XIV. Related party and related party transactions
1. Parent company of the enterprise
Share-holding ratio
Voting right ratio on
Parent company Registration place Business nature Registered capital on the enterprise for
the enterprise
parent company
Wuxi Industry Operation of state-
Wuxi 5496785600 20.36% 20.36%
Group owned assets
Note: On January 18 2024 the registered capital of Wuxi Industrial Group was changed from RMB 5496785600.00 to RMB
5927940200.00.
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).
205WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
(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 Company
For more details of the Company’s subsidiaries please refer to X-1. “Equity in subsidiary”
3. Joint venture and associated enterprise
For more details please refer to Note X.3. “Equity in joint venture and associated enterprise”
Other associated enterprise or joint ventures which has related transaction with the Company in the period or occurred previous:
Nil
4. Other related party
Other related party Relationship with the Company
Robert Bosch Company Second largest shareholder of the Company
Guokai Metal Enterprises controlled by the parent company
Urban Public Distribution Enterprises controlled by the parent company
FAILCONTECH Enterprises controlled by the parent company
Jiangsu Huilian Aluminum Industry Co. Ltd. (hereinafter
Enterprises controlled by the parent company
referred to as “Huilian Aluminum Industry”)
Wuxi IoT Innovation Center Co. Ltd. (hereinafter referred to
Enterprises controlled by the parent company
as “Wuxi IoT”)
Hebei Machinery Import and Export Co. Ltd. (Hereinafter Enterprises controlled by the Company’s former director/senior
referred to as “Hebei Machinery”) management elder brother
Hebei Deshuang Trading Co. Ltd. (Hereinafter referred to as
Enterprises controlled by Hebei Machinery
“Hebei Deshuang”)
Hebei Jinda Import and Export Co. Ltd. (Hereinafter referred
Enterprises controlled by Hebei Machinery
to as “Hebei Jinda”)
Hebei Lanpai Technology Co. Ltd. (Hereinafter referred to as
Enterprises controlled by Hebei Machinery
“Hebei Lanpai”)
Hebei Mianzhuo Electromechanical Equipment Sales Co. Ltd.Enterprises controlled by Hebei Machinery
(Hereinafter referred to as “Hebei Mianzhuo”)
Key executive Director supervisor and senior executive of the Company
Other explanation: Nil
5. Related transaction situation
(1) Goods purchasing labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Whether more than
Content of related Approved
Related party Current period the transaction limit Last Period
transaction transaction limit
(Y/N)
206WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
WFPM Goods and labor 41669848.47 56000000.00 N 52775709.71
RBCD Goods and labor 266965044.36 380000000.00 N 301077307.73
WFEC Goods and labor 955325713.19 1051000000.00 N 575378265.05
Robert Bosch
Goods and labor 199404542.49 300000000.00 N 232163763.73
Company
Changchun
Goods 1500000.00 N 342520.00
Xuyang
Guokai Metal Goods 15867033.58 Y 14516381.84
FAILCONTECH Goods and labor 50600.00 Y
Huilian Aluminum
Goods 515250.00 Y
Industry
Goods sold/labor service providing
In RMB
Related party Content of related transaction Current period Last Period
WFPM Goods and labor 532192.80 980889.25
RBCD Goods and labor 1673734280.25 2220345511.60
WFEC Goods and labor 7290384.61 944537.87
Robert Bosch Company Goods and labor 1868727976.48 1475458231.00
Changchun Xuyang Goods and labor 1011193.02 286036.62
Lezhuo Bowei Goods and labor 9695369.27
Explaination on related transactions in the purchase and sale of goods provision and acceptance of labor services: Nil.
(2) Related trusteeship management/contract & entrust management/ outsourcing
Nil
(3) Related lease
The Company as lessor:
In RMB
Lease income recognized in Lease income recognized at
Lessee Assets type
the Period last Period
WFEC Workshop 2006634.03 2380758.09
RBCD Parking lost 234000.00
Lezhuo Bowei Workshop and equipment 2715935.47
The Company as lessee: Nil
Explanation on related lease
WFLD entered into a house leasing contract with WFEC.The plant locating at No.9 Linjiang Road Wuxi Xinwu District owed by
WFLD was rented out to WFEC. It is agreed that the rental income from January 1 2023 to December 31 2022 was 2006634.03
yuan.WFJN signed a house leasing contract with Lezhuo Bowei. Lezhuo Bowei leases a portion of WFJN’s plant located at No. 12
Liuzhou North Road Pukou District Nanjing City. The lease term is from January 1 2023 to December 31 2024. WFJN has
confirmed the rental income of 2373906.08 yuan for the year 2023; Lezhuo Bowei also rented some equipment from WFJN and
WFJN confirmed equipment rental income of 342029.39 yuan in 2023.
(4) Connected guarantee
Nil
207WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
(5) Related party’s borrowed/lending funds: Nil
(6) Related party’s assets transfer and debt reorganization: Nil
(7) Remuneration of key manager
In RMB
Item Current period Last period
Remuneration of key manager 6620000 6790000
(8) Related transactions of "platform trade" business
Current period Last period
Name of related
parties Received "sales Received "sales Paid "purchase price" Paid "purchase price"
payment" payment"
Hebei Machinery 2125487770.72
Hebei Jinda -56753804.02 2015224288.59
Hebei Deshuang 1436757179.96
Hebei Lanpai 609404930.22
Hebei Mianzhuo 479253260.75
Total -56753804.02 2125487770.72 4540639659.52
Other explaination: Because Hebei Jinda Hebei Deshuang Hebei Lanpai and Hebei Mianzhuo are controlled by Hebei Machinery
based on the business essence of "platform trade" business WFTR listed the difference between the "purchase payment" paid by
WFTR to Hebei Jinda Hebei Deshuang Hebei Lanpai and Hebei Mianzhuo and the "sales payment" received from Hebei Machinery
as other receivables. During the year of 2023 the negative amount of "purchase payment" paid by WFTR to Hebei Jinda is the
"purchase payment" returned by Hebei Jinda
(9) Other related transactions
Related party Contents of item Current period Last Period
WFPM Purchase of fixed assets 186000.00 50000.00
RBCD Purchase of fixed assets 283185.85 4503484.90
RBCD Technology royalties paid etc. -- 1147294.75
Providing of technical
RBCD -- 2053000.00
services etc.Robert Bosch Company Technology royalties paid etc. 2517526.28 2316825.65
Robert Bosch Company Purchase of fixed assets 20337308.56 49061191.70
Providing of technical
Robert Bosch Company 2601403.49 --
services etc.Robert Bosch Company Sales of fixed assets 10066665.81 --
WFEC Payable for technical services 33396.23 102075.47
WFEC Utilities payable 1217617.88 1187817.04
WFEC Provide technical services etc 42169.81
WFEC Selling fixed assets 253046.93 --
Providing of technology
Lezhuo Bowei 110344.34 --
service etc.Purchase canteen ingredients
Urban public distribution 2074056.16 1392464.33
etc
Providing of technology
Wuxi Industry Group 160613.21 --
service etc.Wuxi IOT Purchase of fixed assets 602233.50 --
208WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
6. Receivable/payable items of related parties
(1) Receivable item
In RMB
Ending balance Opening balance
Item Related party
Book balance Bad debt reserve Book balance Bad debt reserve
Account receivable WFPM 170770.59 299389.13 10925.29
Account receivable RBCD 686424501.80 1017817.82 461493652.46 174766.71
Robert Bosch
Account receivable 596846772.56 782592.70 363021724.83 882016.11
Company
Other account Robert Bosch
2500307.00
receivables Company
Changchun
Account receivable 220134.29 5464.91
Xuyang
Account receivable WFEC 1787498.57 514638.29
Other account
WFEC 147000000.00
receivables
Account receivable Lezhuo Bowei 3520841.22
Robert Bosch
Prepayments 5249715.46
Company
Other non-current Robert Bosch
470000.001470000.00
assets Company
Other non-current Wuxi Industry
5452800.005452800.00
assets Group
(2) Payable item
In RMB
Item Related party Ending book balance Opening book balance
Account payable WFPM 15511126.97 17783464.23
Other account payable WFPM 29000.00 29000.00
Account payable WFEC 480670597.42 274115921.53
Account payable RBCD 49028994.76 37603958.72
Account payable Robert Bosch Company 18947846.60 49500046.68
Account payable Guokai Metal 3.12
Other current liabilities RBCD 0.05 0.05
Other current liabilities WFEC 76030.18
Other current liabilities Robert Bosch Company 63572.08
Other account payable Robert Bosch Company 13308176.65
Contract liability RBCD 0.36 0.36
Contract liability Robert Bosch Company 6986398.10 510212.12
Contract liability WFPM 584847.43
(3) Related debts of “platform trade” business
Item Related party Ending balance Opening balance
Other receivables Hebei Machinery -2125487770.72 -2125487770.72
Other receivables Hebei Jinda 1958470484.57 2015224288.59
Other receivables Hebei Deshuang 1436757179.96 1436757179.96
Other receivables Hebei Lanpai 609404930.22 609404930.22
Other receivables Hebei Mianzhuo 479253260.75 479253260.75
Total 2358398084.78 2415151888.80
Note: Because Hebei Jinda Hebei Deshuang Hebei Lanpai and Hebei Mianzhuo are controlled by Hebei Machinery based on the
209WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
business essence of "platform trade" business WFTR listed the difference between the "purchase payment" paid by WFTR to
Hebei Jinda Hebei Deshuang Hebei Lanpai and Hebei Mianzhuo and the "sales payment" received from Hebei Machinery
2358398084.78 yuan as other receivables including: The "sales payment" received from Hebei Machinery is presented as a
negative number. As of December 31 2023 the Company has made a bad debt provision of 1448358922.04 yuan for the balance
of other receivables; The bad debt provision balance is calculated by 80.10% which is the proportion of other receivables balance
of Hebei Machinery and its controlled companies 2415151888.80 yuan to other receivables balance of WFTR's "platform trade"
business portfolio 2741499131.95 yuan as of December 31 2022 multiply the bad debt provision for other accounts receivable
balances in WFTR’s "platform trade" business portfolio 1644068327.93 yuan.
7. Undertakings of related party
Nil
8. Other
Nil
XV. Share-based payment
1. Overall situation of share-based payment
□Applicable □Not applicable
In RMB
Granted in current Executed in current Unlocked in current
Category of Expired in current period period period period
grant object
Quantity Amount Quantity Amount Quantity Amount Quantity Amount
Sales staff 264264.00 6897290.40
Administrative
3507814.0091553945.40
staff
R&D staff 1180287.00 30805490.70
Production staff 641135.00 16733623.50
145990350.0
Total 5593500.00
0
Stock options or other equity instruments issued to the public at the end of the period
□Applicable □Not applicable
Other explanation: Nil
2. Share-based payment settled by equity
□Applicable □Not applicable
In RMB
Determine based on the closing price of the
Method for determining the fair value of equity instruments on the grant date
restricted stock on the grant date
Important parameters for determining the fair value of equity instruments on
Closing price at 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 current period Not applicable
210WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
and estimate in the prior period
Cumulative amount of equity-settled share-based payments included in the
81051840.00
capital reserve
Total amount of expenses confirmed by equity-settled share-based payments
-30939071.92
in the current period
Other explanation: Nil
3. Share-based payment settled by cash
□ Applicable □ Not applicable
4. Current share-based payment expenses
□Applicable □Not applicable
In RMB
Equity settled share based payment Cash settled share based payment
Category of grant object
expenses expenses
Sales staff -1418102.07
Administrative staff -19732503.59
R&D staff -6276034.25
Production staff -3512432.01
Total -30939071.92
Other explanation: Nil
5. Modification and termination of share-based payment
Nil
6. Other
Nil
XVI. Undertakings or contingency
1. Important undertakings
Important undertakings on balance sheet date
Nil
2. Contingency
(1) Contingency on balance sheet date
Guarantee for subsidiaries:
As of December 31 2023 the Company has provided guarantees for all debts arising from the performance of its subsidiaries
VHWX and Shenzhen BYD Supply Chain Management Co. Ltd. with the guarantee amount not exceeding RMB 10.00 million.As of December 31 2023 the Company has provided guarantees of up to RMB 40 million and RMB 55 million respectively for
211WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
its subsidiary Zhixing Seats and its subsidiary VHIO the scope of guarantee includes but is not limited to financing guarantees for
financing business applications (including loans bank acceptance bills foreign exchange derivative transactions letters of credit
guarantees etc.) as well as performance guarantees for daily operations.
(2) For the important contingency not necessary to disclosed by the Company explained 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
3. Other
Nil
XVII. Events Occurring after the Balance Sheet Date
1. Important undertakings
In RMB
The reason for the inability to
The impact on financial condition and
Item Content estimate the number of
operating results
impacts
Issuance of stocks and bonds NA NA NA
Important outbound
NA NA NA
investment
Major debt restructuring NA NA NA
Natural calamities NA NA NA
Significant changes in foreign
NA NA NA
exchange rates
2. Profit distribution
Proposed distribution of dividends per 10 shares(yuan) 10.00
Plan to distribute every 10 bonus shares(share) 0
Proposed allocation of additional shares for every 10
0
shares(share)
The dividend payout for every 10 shares declared after
10.00
review and approval(yuan)
Every 10 dividend shares declared for distribution after
0
review and approval(yuan)
212WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Proposed allocation of additional shares for every 10 shares
0
after review and approval(share)
The company's 2023 annual profit distribution plan: based on the
977162793 shares which exclude the buy-back shares on buy-
back account (25000000 A-stock) from total share capital
1002162793 shares (According to the provisions of the The
Company Law of the People's Republic of China the listed
company does not have the right to participate in the profit
distribution and the conversion of the capital reserve into the share
capital by repurchasing the shares held by the company through the
special securities account) distributing 10.00 yuan (tax included)
cash dividend for every 10 shares held no bonus shares without
Profit distribution plan
capitalization from capital reserves. The remaining undistributed
profit is carried forward to the next year. The total amount of cash
dividend to be paid is 977162793yuan (tax included). If the total
share capital of the Company changes before the implementation of
the distribution plan the Company will be allocated according to
the principle of unchanged distribution proportion and adjustment
of the total amount of distribution. The independent directors of the
Company expressed their independent opinions and agreed to the
above proposal. The profit distribution plan will be submitted for
consideration at the 2023 Annual General Meeting.
3. Return of sales
Nil
XVIII. Other important events
1. Previous accounting errors correction
Nil
2. Debt restructuring
Significant debt restructuring not required to be disclosed by the company in this period
3. Asset replacement
Nil
4. Pension plan
The Enterprise Annuity Plan under the name of WFHT has deliberated and approved by 8th meeting of 7th session of the BOD: in
order to mobilize the initiative and creativity of the employees established a talent long-term incentive mechanism enhance the
cohesive force and competitiveness in enterprise the Company carried out the above mentioned annuity plan since the date of reply
of plans reporting received from labor security administration department. Annuity plans are: the annuity fund are paid by the
enterprise and employees together; the enterprise’s contribution shall not exceed 8% of the gross salary of the employees of the
enterprise per year the combined contribution of the enterprise and the individual employee shall not exceed 12% of the total salary
of the employees of the enterprise. In accordance with the State’s annuity policy the Company will adjuste the economic benefits in
213WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
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 information
(1) Recognition basis and accounting policy for reportable segment
Determine the operating segments in line with the internal organization structure management requirement and internal 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
If two or more operating segments have similar economic characteristics and meet certain conditions they can be merged into one
operating segment.The Company considers the principle of importance and determines the reporting segments based on the operating segments. The
reporting segment of the company is a business unit that provides different products or services or operates in different regions. Due
to the need for different technologies and market strategies in various businesses or regions the company independently manages the
production and operation activities of each reporting segment evaluates their operating results individually and decides to allocate
resources to them and evaluate their performance.
(2) Financial information for reportable segment
In RMB
Automotive fuel Automotive Air Other automotive Offsetting
Item injection system post processing management components between Total
segment system segment system segment products segment segments
3439813189.
Revenue 5201564655.45 667187841.47 1784576264.45 11093141950.98
61
2991515364.
Cost 3960359167.71 510869765.43 1687568343.46 9150312640.74
14
(3) If the company has no reportable segments or is unable to disclose the total assets and liabilities of
each reportable segment it should state the reasons
The Company mainly produces automotive internal combustion engine fuel systems products automotive components silencers
purifiers vacuum and hydraulic pumps and other related products. The Company determines the reporting segments based on
product or service content but due to the mixed operation of related businesses the total assets total liabilities and period expenses
have not been allocated.
214WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
(4) Other explanations
Nil
7. Major transaction and events influencing investor’s decision
(1) The security organs have launched a criminal investigation on the case that WFTR was defrauded by contracts in its “platformtrade” business. (For details please refer to the company's announcement No. 2023-007 disclosed on www.cninfo.com.cn and
other information disclosure websites on April 13 2023). At present the case is in the stage of transferring for review and
prosecution and the outcome of the case is uncertain in the future.
(2) Based on the "platform trade" business’s background transaction chain sales and purchase contract signing transaction
process physical flow and so on the company carefully analyzed and made comprehensive judgment finds that the probability of
this business not belonging to normal trade business is extremely high. In terms of accounting treatment the company follows the
principle of substance over form and does not treat it as normal trade business but according to the receipt and payment of funds
prudently counts as claims and liabilities respectively purchases actually paid to "suppliers" and sales collected from "customers"
Other receivables are reported on a net basis in the financial statements as a "platform trading" portfolio. As of December 31 2023
the balance of the “Platform Trade” business portfolio was RMB2542263400 yuan and an expected credit loss of
RMB1644068300.00 has been provisioned. Based on the comprehensive judgment of information from authorized departments
the company has determined that there has been no significant change in the recoverable amount of debt in the “platform trade”
business portfolio and there is no need for further provision or significant reversal of expected credit losses. The recoverable
amount of debt in the “platform trade” business combination is highly dependent on a series of judicial procedures such as
investigation prosecution trial judgment and execution of the case and the results still have uncertainty.
8. Other
Nil
XIX. Principal notes of financial statements of parent company
1. Account receivable
(1) By account aging
In RMB
Aging Ending book balance Beginning book balance
Within one year(inclusive) 1376943595.48 906775190.29
Including: within six months 1365664197.96 889181770.09
Six months to one year 11279397.52 17593420.20
1-2 years 9348871.78 1173006.18
2-3 years 732334.63 1935713.65
Over three years 6457957.26 8653217.73
3 - 4 years 1522747.95 172796.03
4 - 5 years 101188.83 7881589.10
215WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Over 5 years 4834020.48 598832.60
Total 1393482759.15 918537127.85
(2) Accrued of bad debt provision
In RMB
Ending balance Opening balance
Category Book balance Bad debt reserve Book balance Bad debt reserve Book Book
Accrued Accrued
Amount Ratio Amount value Amount Ratio Amount value
ratio ratio
Account receivable
with bad debt 4774540 4774540 7705636 7705636
0.34%100.00%0.84%100.00%
provision accrued .26 .26 .24 .24
on a single basis
Including:
Account receivable
with bad debt 1388708 4648838 1384059 9108314 4023208 9068082
99.66%0.33%99.16%0.44%
provision accrued 218.89 .01 380.88 91.61 .39 83.22
on portfolio
Including:
Including:
121985746488381215208768218540232087641953
receivables from 87.54% 0.38% 83.63% 0.52%
customers 129.33 .01 291.32 75.70 .39 67.31
Receivables from
1688510168851014261291426129
internal related 12.12% 15.53%
parties 89.56 89.56 15.91 15.91
139348294233781384059918537111728849068082
Total 100.00% 0.68% 100.00% 1.28%
759.15.27380.8827.854.6383.22
Bad debt provision accrued on single basis: 4774540.26
In RMB
Beginning balance Ending balance
Name Book Bad debt Book Bad debt Accrued
Accrued causes
balance reserve balance reserve ratio
Have difficulty in
BD bills 7201691.00 7201691.00 4270595.02 4270595.02 100.00%
collection
Tianjin Leiwo Engine Have difficulty in
503945.24503945.24503945.24503945.24100.00%
Co. Ltd. collection
Total 7705636.24 7705636.24 4774540.26 4774540.26
Bad debt provision accrued on portfolio: 4648838.01
In RMB
Ending balance
Name
Book balance Bad debt reserve Accurual ratio
Within 6 months 1200695320.63
6 months to one year 7548478.39 754847.85 10.00%
1-2 years 9197578.68 1839515.74 20.00%
2-3 years 602128.69 240851.48 40.00%
Over 3 years 1813622.94 1813622.94 100.00%
Total 1219857129.33 4648838.01
Explanation on determining the basis of this portfolio:
In the portfolio* accounts receivable from internal related parties:
Name of related party Amount Ratio of bad debt provision (%)
WFTR 67146422.58 --
216WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
WFSC 62445825.31 --
VHWX 21771307.71
WFLD 8062933.87 --
WFTT 4374383.39 --
WFQL 3737701.70
WFAS 1312515.00
Total 168851089.56 --
If the provision for bad debts of accounts receivable is made according to the general model of expected credit losses:
□Applicable □Not applicable
(3) Bad debt provision accrued collected or reversal
Bad debt provision accrued in the period:
In RMB
Amount changed in the period
Category Opening balance Collected or Ending balance
Accrued Written-off Other
reversal
Bad debt provision 11728844.63 2282334.65 23131.71 9423378.27
Total 11728844.63 2282334.65 23131.71 9423378.27
Important bad debt provision collected or reversal: Nil
(4) Account receivable actual charged off in the Period
In RMB
Item Amount charged off
Jiangsu Nonghua Smart Agricultural Technology Co. Ltd 23131.71
Major charge-off for the major receivable: Nil
(5) Top 5 receivables and contract assets at ending balance by arrears party
In RMB
Ending Ratio in total ending Ending balance of bad
Ending balance of
Ending balance of balance of balance of account debt reserve and
Name account receivable and
account receivable contract receivable and impairment reserve of
contract assets
assets contract assets contract assets
RBCD 686424501.80 686424501.80 49.26% 1017817.82
Robert
Bosch 199928467.18 199928467.18 14.35% 294416.19
Company
Client 3 143735925.57 143735925.57 10.31% 394188.46
WFTR 67146422.58 67146422.58 4.82%
WFSC 62445825.31 62445825.31 4.48%
Total 1159681142.44 1159681142.44 83.22% 1706422.47
2. Other accounts receivable
In RMB
Item Ending balance Opening balance
217WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Interest receivable 842323.12 206325.34
Other account receivables 1369807069.16 1471896113.93
Total 1370649392.28 1472102439.27
(1) Interest receivable
1) Category of interest receivable
In RMB
Item Ending balance Opening balance
Interest receivable of subsidiary 842323.12 206325.34
Total 842323.12 206325.34
2) Significant overdue interest
Other explaination: Nil
3) Accrued of bad debt provision
□Applicable □Not applicable
4) Bad debt provision accrued collected or reversal
Nil
5) Interest receivable actually charged off during the reporting period
Nil
(2) Dividend receivable
1) Category of dividend receivable: Nil
2) Important dividend receivable with account age over one year: Nil
3) Accrued of bad debt provision
□Applicable □Not applicable
4) Bad debt provision accrued collected or reversal
Nil
5) Dividend receivable actually charged off during the reporting period
Nil
(3) Other account receivable
1) Other account receivables classification by nature
In RMB
218WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Nature Ending book balance Opening book balance
Staff loans and petty cash 520080.00 1279080.00
Balance of related party in the
3006132546.933106006521.72
consolidate scope
Security deposit 3920799.33 3738299.33
Social security and provident fund paid 6119110.70 6429166.22
Other 371066.21 16781.83
Total 3017063603.17 3117469849.10
2) By account age
In RMB
Account age Ending book balance Beginning book balance
Within one year (One year included) 365322657.63 3114813019.10
Including: within 6 months 134688758.70 768880846.69
6 months to one year 230633898.93 2345932172.41
1-2 years 2648713049.33 588300.00
2-3 years 218000.00 1300000.00
Over 3 years 2809896.21 768530.00
3-4 years 2032820.00 761330.00
4-5 years 769876.21 0.00
Over five years 7200.00 7200.00
Total 3017063603.17 3117469849.10
3) Accrued of bad debt provision
Provision for bad debts based on the general model of expected credit losses:
In RMB
Phase I Phase II Phase III
Expected credit losses for Expected credit losses for
Bad debt reserve Expected credit the entire duration the entire duration (with Total
losses over next
(without credit credit impairment
12 months
impairment occurred) occurred)
Balance of Jan. 1 2023 1505407.24 1644068327.93 1645573735.17
Balance of Jan. 1 2023 in the
period
Current reversal 1682798.84 1682798.84
Balance on Dec. 31 2023 3188206.08 1644068327.93 1647256534.01
Change of book balance of loss provision with amount has major changes in the period
□Applicable □Not applicable
4) Bad debt provision accrued collected or reversal
Bad debt provision accrued in the period:
In RMB
Amount changed in the period
Opening
Category Collected or Ending balance balance Accrued Written-off Other
reversal
Bad debt 1645573735. 1682798.84 1647256534.
219WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
provision 17 01
1645573735.1647256534.
Total 1682798.84
1701
Including the important bad debt provision reversal or collected in the period: Nil
5) Other receivables actually charged off during the reporting period
Nil
6) Top 5 other receivables at ending balance by arrears party
In RMB
Ratio in total ending
Account Ending balance of
Name of enterprise Nature Ending balance balance of other
age bad debt reserve
receivables
Balance of related
Within 2
WFTR party in the 2838260000.00 94.08% 1644068327.93
consolidate scope year
Balance of related
Within 1
WFCA party in the 96628898.93 3.20%
consolidate scope year
Balance of related
Within 1
IRD party in the 63384448.00 2.10%
year
consolidate scope
Balance of related
Within 1
Borit party in the 7859200.00 0.26%
year
consolidate scope
Zhenkunxing Industrial
Over 3
Supermarket (Shanghai) Security deposit 1000000.00 0.03% 1000000.00
years
Co. Ltd.Total 3007132546.93 99.67% 1645068327.93
7) Those booked into other account receivables due to centralized fund management
Nil
3. Long-term equity investments
In RMB
Ending balance Opening balance
Provision Provision
Item for for
Book balance Book value Book balance Book value
impairme impairme
nt loss nt loss
Investment in
3116879242.193116879242.193080762302.113080762302.11
subsidiary
Investment in
associates and 4891133182.10 4891133182.10 5289081048.99 5289081048.99
joint venture
Total 8008012424.29 8008012424.29 8369843351.10 8369843351.10
(1) Investment in subsidiary
In RMB
220WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Opening Changes in current period
balance Ending
Opening of Provision Ending balance of
Negative Share-
Investee balance (book provision Additional for balance (book depreciati
Investme based
value) for Investment impairme value) on
nt Payment
impairme nt loss reserves
nt loss
-
188389084.3185704551.8
WFJN 2684532.
42
52
-
470853106.5467856451.8
WFLD 2996654.
20
72
-
171807584.7170986195.3
WFMA 821389.3
15
6
-
223351717.0222664737.0
WFCA 686980.0
31
-
WFTR 34067014.70 340503.1 33726511.51
9
-
WFSC 51490044.27 373358.8 51116685.47
0
-
239283022.0238063380.0
WFTT 1219642.
00
00
WFAM 82454467.99 82454467.99
WFDT 54081519.52 -68699.29 54012820.23
119528022345630287.1240910511
SPV.9705.02
WFLD(Chongqi
265832.07-74672.07191160.00
ng)
-
WFAS 878805.00 246915.0 631890.00
0
225000000.0225000000.0
WFQL
00
143559879.9143559879.9
VHWX
99
-
308076230245630287.3116879242
Total 9513346..1105.19
97
(2) Investment in associated enterprises and joint venture
In RMB
Current changes (+/ -)
Opening Ending
opening balance of Ending balance
balance provision Cash Investment balance of Investee
(book for Other dividend gain/loss Other (book depreciat
value) impairment Additional Capital comprehensive or profit Impairment recognized equity Other value) ion
loss investment reduction income announc Accrued under change reserves
adjustment ed to
equity
issued
I. Joint venture
II. Associated enterprise
35057
98606221599762892038
RBCD 46633.
87.079939.06981.78
77
15594
Zhonglian 4080887 282000 1685502
13314.
Electronics 32.68 000.00 046.73
05
--
547754141434
WFPM 11775861 15856
899.021.58.7795.67
221WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
1691451024739328821826808
Auto Link
202.156.3159.1557.61
--
Lezhuo 1100000 8949695
20489291375
Bowei 00.00 4.40
5.600.00
52890-
11000001372133170251881764891133
Subtotal 81048. 1375
00.00258.6963.489939.06182.10
990.00
52890-
11000001372133170251881764891133
Total 81048. 1375
00.00258.6963.489939.06182.10
990.00
(3) Other explanations
Nil
4. Operating income and cost
In RMB
Current period Last period
Item
Income Cost Income Cost
Main business 3398402921.46 2767688522.76 3524971219.66 2995507161.73
Other business 169604704.58 92512697.03 339533776.14 268487790.90
Total 3568007626.04 2860201219.79 3864504995.80 3263994952.63
5. Investment income
In RMB
Item Current period Last Period
Investment income from holding transaction financial asset 89973294.02 201399105.37
Investment income in subsidiaries 76552430.32 69841550.10
Investment income in joint ventures and associated enterprises 1372133258.69 1427651731.23
Investment income obtained from the disposal of trading financial assets 13352570.85
Revenue from debt restructuring -12000.00
Total 1551999553.88 1698892386.70
6. Others
Nil
XX. Supplementary Information
1. Current non-recurring gains/losses
□Applicable □Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset including the offsetting portion of
126538939.67
the provision for impairment of assets that has been provisioned
Governmental grants reckoned into current gains/losses (except for those with normal
operation business concerned and conform to the national policies & regulations and are 31251345.14
continuously enjoyed at a fixed or quantitative basis according to certain standards)
Except for the effective hedging operations related to normal business operation of the
Company the gains/losses of fair value changes from holding the trading financial assets
23096322.48
and trading financial liabilities and the investment earnings obtained from disposing the
trading financial asset trading financial liability and financial assets available for sale
222WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. ANNUAL REPORT 2023
Gains/losses of assets delegation on others’ investment or management 94647509.98
Reserve for impairment of receivables separately tested for impairment transfer back 5862949.67
Gains/losses of debt restructuring -323525.00
Other non-operating income and expenditure except for the aforementioned items etc. 22253986.90
Accounts receivable charged off in previous years and recovered in current year 63149.93
Less: Impact on income tax 40956611.82
Impact on minority shareholders’ equity 22464047.13
Total 239970019.82 --
Specific information on other items of profits/losses that qualified the definition of non-recurring profit(gain)/loss
□Applicable □Not applicable
The Company does not have other items of profits/losses that qualified the definition of non-recurring profit(gain)/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
Weighted Earnings per share
Profits during report period average Basic earnings per Diluted earnings per
ROE share (RMB/Share) share (RMB/Share)
Net profits belong to common stock stockholders of the Company 9.92% 1.88 1.88
Net profits belong to common stock stockholders of the Company
8.63%1.641.64
after deducting nonrecurring gains and losses
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable □ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable □ Not applicable
(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. OtherPlease refer to Note V-36 " Changes of important accounting policies and estimation”.BOD of Weifu High-Technology Group Co. Ltd.Chairman: _______________
16 April 2024
223
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