Weifu High-Technology Group Co. Ltd.First Quarterly Report 2021

April 2021

Section I. Important Notes

Board of Directors and the Supervisory Committee of Weifu High-Technology

Group Co. Ltd. (hereinafter referred to as the Company) and its directors

supervisors and senior executives should guarantee the reality accuracy and

completion of the quarterly report there are no any fictitious statements

misleading statements or important omissions carried in this report and shall

take legal responsibilities individual and/or joint.

All Directors are attended the Board Meeting for Quarterly Report deliberation

Wang Xiaodong Principal of the Company; Ou Jianbin Person in Charge of

Accounting Works and Person in Charge of Accounting Organ (Accounting

Supervisor) hereby confirm that the Financial Report of the First Quarterly

Report is authentic accurate and complete.Section II. Company Profile

I. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data

□Yes √ No

Current Period Same period of last year

Changes of this period over same

period of last year

Operating income (RMB) 4700158675.54 2772108717.43 69.55%

Net profit attributable to shareholders of

the listed company (RMB)

861572997.00 549996717.72 56.65%

Net profit attributable to shareholders of

the listed company after deducting

non-recurring gains and losses (RMB)

932554535.06 495225376.36 88.31%

Net cash flow arising from operating

activities (RMB)

-229541250.49 319204809.86 -171.91%

Basic earnings per share (RMB/Share) 0.87 0.55 58.18%

Diluted earnings per share (RMB/Share) 0.87 0.55 58.18%

Weighted average ROE 4.61% 3.18% 1.43%

End of this period End of last period

Changes of this period-end over

same period-end of last year

Total assets (RMB) 28619573993.66 27350695388.21 4.64%

Net assets attributable to shareholder of

listed company (RMB)

19143233995.51 18282017990.66 4.71%

Items of non-recurring gains and losses

√ Applicable □ Not applicable

In RMB

Item

Amount from year-begin

to period-end

Note

Gains/losses from the disposal of non-current asset (including the write-off that

accrued for impairment of assets)

1676181.25

Governmental subsidy reckoned into current gains/losses (not including the subsidy

enjoyed in quota or ration according to national standards which are closely

relevant to enterprise’s business)

10247700.49

Gains/losses of fair value changes from holding the transaction financial asset

derivative financial assets transaction financial liability and derivative financial

liability and investment earnings obtained from disposing the transaction financial

-94934860.22

asset derivative financial assets transaction financial liability derivative financial

liability and other debt investment except for the effective hedging business related

to normal operation of the Company

Other non-operating income and expenditure except for the aforementioned items -2546.17

Less: impact on income tax -12454718.08

Impact on minority shareholders’ equity (post-tax) 422731.49

Total -70981538.06 --

Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies

Offering Their Securities to the Public --- Extraordinary Profit/loss and the items defined as recurring profit (gain)/loss according to

the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their

Securities to the Public --- Extraordinary Profit/loss explain reasons

□ Applicable √ Not applicable

In reporting period the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of

extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to

the Public --- Extraordinary Profit/loss

II. Total number of shareholders at the end of this report period and top ten shareholders

1. Common and preferred stockholders with voting rights recover and the top ten share-holding

In Share

Total common shareholders at the end

of report period

63444

Total preferred stockholders with voting rights

recover at the end of report period (if applicable)

0

Top ten shareholders

Shareholder’s name

Nature of

shareholder

Proportion

of shares

held

Amount of shares

held

Amount of

restricted

shares

held

Number of share

pledged/frozen

State of

share

Amount

Wuxi Industry Development Group Co.Ltd.State-owned

corporate

20.22% 204059398

ROBERT BOSCH GMBH Foreign corporate 14.16% 142841400

Hong Kong Securities Clearing Company Foreign corporate 6.36% 64216612

BBH BOS S/A FIDELITY FD - CHINA

FOCUS FD

Foreign corporate 1.60% 16093515

Central Huijin Assets Management Co.

Ltd.State-owned

corporate

1.27% 12811200

Basic Pension Insurance Fund- 1003 Other 1.09% 10968106

Huatai Financial Holdings (Hong Kong)

Limited－Client fund

Foreign corporate 0.79% 7999998

FIDELITY INVMT TRT FIDELITY

INTL SMALL CAP FUND

Foreign corporate 0.73% 7339586

Monetary Authority of Macao - own fund Foreign corporate 0.55% 5521441

Haitong Securities Co. Ltd.State-owned

corporate

0.50% 5001101

Top ten shareholders with unrestricted shares held

Shareholder’s name

Amount of

unrestricted shares

held

Type of shares

Type Amount

Wuxi Industry Development Group Co. Ltd. 204059398 RMB common shares 204059398

ROBERT BOSCH GMBH 142841400

RMB common shares 115260600

Domestically listed

foreign shares

27580800

Hong Kong Securities Clearing Company 64216612 RMB common shares 64216612

BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 16093515

Domestically listed

foreign shares

16093515

Central Huijin Assets Management Co. Ltd. 12811200 RMB common shares 12811200

Basic Pension Insurance Fund- 1003 10968106 RMB common shares 10968106

Huatai Financial Holdings (Hong Kong) Limited－Client fund 7999998 RMB common shares 7999998

FIDELITY INVMT TRT FIDELITY INTL SMALL CAP FUND 7339586

Domestically listed

foreign shares

7339586

Monetary Authority of Macao - own fund 5521441 RMB common shares 5521441

Haitong Securities Co. Ltd. 5001101 RMB common shares 5001101

Note of related relationship among the above shareholders and

concerted actors

Among the top ten shareholders the Company knew there has

no associated relationship between Wuxi Industry Development

Croup Co. Ltd. the first largest shareholder of the Company

and other shareholders; and they do not belong to the consistent

actionist regulated by the Management Measure of Information

Disclosure on Change of Shareholding for Listed Company.

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement

dealing in reporting period

□ Yes √ No

The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back

agreement dealing in reporting period.

2. Total shareholders with preferred stock held at Period-end and shares held by top ten shareholders with

preferred stock held

□ Applicable √ Not applicable

Section III. Significant Events

I. Changes in the main financial data and financial indicators during the reporting period and

the reasons

√ Applicable □ Not applicable

(i) Changes and reasons of items in balance sheet：

1. Accounts receivable in the period-end increased 1377.87 million yuan by comparing with end of last year with

48.78 percent up mainly due to the increase in sales revenue during the reporting period;

2. Advance payment in the period-end increased 52.69 million yuan by comparing with end of last year with

34.69 percent up mainly due to the increase in purchases during the reporting period;

3. Other receivables in the period-end decreased 18.02 million yuan by comparing with end of last year with 33.25

percent down mainly due to the recovery of dividends receivable during the reporting period;

4. Other non-current financial assets in the period-end decreased 540.44 million yuan by comparing with end of

last year with 29.93 percent down mainly due to the more than one year wealth management maturity during the

reporting period;

5. Deferred income tax assets in the period-end increased 78.39 million yuan by comparing with end of last year

with 39.51 percent up mainly due to the prepayment of corporate income tax for the investment income and the

gains and losses of fair value changes during the reporting period;

6. Short-term loan in the period-end increased 433.10 million yuan by comparing with end of last year with

143.30 percent up mainly due to the increase in bank borrowings during the reporting period;

7. Contract liabilities in the period-end decreased 39.17 million yuan by comparing with end of last year with

47.93 percent down mainly due to the settlement of advance payment during the reporting period;

8. Wages payable in the period-end decreased 160.09 million yuan by comparing with end of last year with 48.16

percent down mainly because paying the employee performance rewards in the reporting period;

9. Taxes payable in the period-end increased 166.03 million yuan by comparing with end of last year with 245.99

percent up mainly due to the increase in quarterly prepayment of corporate income tax during the reporting

period;

10. Non-current liabilities due within one year in the period-end decreased 12.32 million yuan by comparing with

end of last year with 33.36 percent down mainly because the loan repayment at maturity in the reporting period;

11. Other comprehensive income in the period-end decreased 18.89 million yuan mainly due to the conversion

difference of foreign currency statements;

(ii) Changes and reasons of items in profit and loss statement：

1. Operating income in the period increased 1928.05 million yuan from a year earlier with 69.55 percent up

mainly due to the rapid growth of the company’s three major system businesses;

2. Operating cost in the period increased 1604.61 million yuan from a year earlier with 71.30 percent up mainly

due to the rapid growth of the company’s three major system businesses;

3. R&D expenses in the period increased 44.2 million yuan from a year earlier with 59.15 percent up mainly

because investment in research and development increased during the reporting period;

4. Investment income in the period increased 191.74 million yuan from a year earlier with 52.87 percent up

mainly because the income from joint stock enterprise increased;

5. Gains from changes in fair value in the period decreased 86.54 million yuan from a year earlier mainly because

the fair value of other equity investment such as Guolian Securities etc. declined from a year earlier;

6. The total profit in the period increased 348.68 million yuan from a year earlier with 58.84 percent up mainly

because benefiting from the boom in the automotive industry especially the commercial vehicle market the

company's main products are booming in production and sales;

(iii) Changes and reasons of items in cash flow statement：

1. Net cash flow arising from operation activity in the period decreased 548.75 million yuan from a year earlier

mainly because the increase in sales revenue and the payment due date has not arrived;

2. Net cash flow arising from investment activity decreased 395.47 million yuan from a year earlier mainly

because the wealth management business has not expired and the cash inflow declined;

3. Net cash flow arising from financing activity increased 707.17 million yuan from a year earlier mainly due to

the payment in 2020 caused by the repurchase of A shares by means of centralized bidding and the bank

borrowings during the reporting period increased.II. Analysis and explanation of significant events and their influence and solutions

√ Applicable □ Not applicable

Parts of the joint-stock enterprise’s equity held by the Company freeze

1. On 6 March 2017 the Company received a legal documents mail from Shenzhen Intermediate people’s Court

in Guangdong Province (hereinafter referred to as Shenzhen Intermediate Court). Pursuit to the legal documents

the plaintiff- China Cinda Asset Management Co. Ltd. Shenzhen Branch bring a suit against eight defendants (the

Company included) and the third party-Shenzhen Hejun Venture Holding Co. Ltd. (“Hejun Company” for short)

for damaged the interests of corporate creditors totally two cases for suits. Shenzhen Intermediate Court accepted

the case and issued the Civil Order of (2016) Yue 03 MC No.2490 and (2016) Yue 03 MC No. 2492 that is the

property under the name of eight defendants are being seal up detain or freeze-up totally amounted as 217

million Yuan. Ended as the reporting period the 4.71 million shares of Miracle and 11739102 shares of SDEC

held by the Company are being freeze-up. First trial are carried on 24 September 2017 and further session to be

advised from the Court.

2. The company has applied to Futian People's Court of Shenzhen for compulsory liquidation with Hejun

Company. A Civil Ruling Paper is carried by Futian People's Court of Shenzhen (2017) Yue 0304 QS No.5 that is:

implemented compulsory liquidation on Hejun Company. The Company will fully engage with the Court for

relevant liquidation works completed guarantee legitimate interest of the Company.Overview Disclosure date Query index for interim notice

Parts of the joint-stock

enterprise’s equity held by

the Company freeze

March 8 2017 (Notice No. 2017-002) Published on Juchao Website (www.cninfo.com.cn)

December 6 2017 (Notice No. 2017-023) Published on Juchao Website (www.cninfo.com.cn)

Implementation progress of shares buy-back

□ Applicable √ Not applicable

Implementation progress of the reduction of repurchases shares by centralized bidding

□ Applicable √ Not applicable

III. Commitments non-performance over due in reporting period from committed parties as

actual controller shareholders related party acquirer and the Company

□Applicable √Not applicable

No the above mentioned commitment occurred in the period.IV. Securities Investment

√ Applicable □ Not applicable

In RMB

Variety

of

securitie

s

Cod

e of

secu

rities

Shor

t

form

of

secu

rities

Initial

investment cost

Acc

ount

ing

mea

sure

ment

mod

el

Book value at the

beginning of the

period

Current

gain/loss of fair

value changes

Cumulat

ive fair

value

changes

in equity

Curr

ent

purc

hase

amo

unt

Curr

ent

sales

amo

unt

Prof

it

and

loss

in

the

Rep

orti

ng

Peri

od

Book value at the

end of the period

Account

ing

subject

Capita

l

Source

Domesti

c and

foreign

stocks

6008

41

SDE

C

199208000.00

Mea

sure

d by

fair

valu

e

140395956.00 -7922436.00 132473520.00

Trading

financial

assets

Own

funds

Domesti

c and

foreign

stocks

0020

09

Mira

cle

Auto

mati

on

69331500.00

Mea

sure

d by

fair

valu

e

47712300.00 -3579600.00 44132700.00

Trading

financial

assets

Own

funds

Domesti

c and

foreign

stocks

6014

56

Guol

ian

Secu

rities

12000000.00

Mea

sure

d by

fair

valu

e

326848122.00 -83432824.22 243415297.78

Trading

financial

assets

Own

funds

Total 280539500.00 -- 514956378.00 -94934860.22 0.00 0.00 0.00 0.00 420021517.78 -- --

Disclosure date of

securities

investment approval

by the Board

March 24 2012

June 4 2013

2. Derivative investment

□ Applicable √ Not applicable

No derivative investment in the Period.V. Progress of investment projects with raised funds

□ Applicable √ Not applicable

VI. Prediction of business performance from January – June 2021

Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the

warning of its material change compared with the corresponding period of the last year and explanation on reason

□ Applicable √ Not applicable

VII. Major contracts for daily operations

□ Applicable √ Not applicable

VIII. Trust financing

√ Applicable □ Not applicable

In 10 thousand Yuan

Specific type Sources of funds Amount occurred Undue balance Overdue amount

Financing products Own funds 65300 65300 0

Financial products of securities firms Own funds 82000 82000 0

Trust financial products Own funds 289280 284580 0

Other type Own funds 67770 67770 0

Total 504350 499650 0

Details of the single major amount or high-risk trust investment with low security poor fluidity and non-guaranteed

√ Applicable □ Not applicable

In 10 thousand Yuan

Truste

e

institut

ion r

name

Trustee

type

Type

Amou

nt

Sou

rce

of

fun

ds

Start

date

End

date

Capita

l

invest

ment

purpos

e

Criteria for

fixing

reward

Referen

ce

annual

rate of

return

Anticipat

ed

income

(if

applicabl

e)

Actual

gains/los

ses in

period

Actual

collect

ed

gains/l

osses

in

period

Amo

unt

of

reser

ve

for

deva

luati

on

of

with

draw

ing

(if

appli

cabl

e)

Whe

ther

appr

oved

by

legal

proc

edur

e

(Y/

N)

Whet

her

has

entru

st

finan

ce

plan

in the

futur

e

Summ

ary of

the

items

and

relate

d

query

index

(if

applic

able)

Bank Bank

Non-gu

arantee

d

floatin

g

income

1300

Ow

ned

fun

d

March 2

2021

May

26

2021

Financ

ial

produc

ts

Contractual

Performanc

e

Benchmark

3.55% 10.75 0

Collec

ted

accord

ing to

the

contra

ct

Y Y

Notic

e No.:

2020-

015

Securit

ies

trader

Securit

ies

trader

Non-gu

arantee

d

floatin

g

income

18000

Ow

ned

fun

d

January

12 2021

Septem

ber 14

2021

Collec

tive

assets

manag

ement

plan

Contractual

Performanc

e

Benchmark

4.7%

-5%

544.96 265.16

Collec

ted

accord

ing to

the

contra

ct

Y Y

Trust Trust

Non-gu

arantee

d

floatin

g

income

33880

Ow

ned

fun

d

January

8 2021

January

29

2023

Collec

tion

trust

plan

Contractual

Performanc

e

Benchmark

5.8%

-7.4%

3190.71 2922.76

Collec

ted

accord

ing to

the

contra

ct

Y Y

Other Other

Non-gu

arantee

10000

Ow

ned

February

Februar

y 8

Fund

produc

Contractual

Performanc

6% 660 439.57

Collec

ted

Y Y

d

floatin

g

income

fun

d

8 2021 2023 ts e

Benchmark

-7.5% accord

ing to

the

contra

ct

Total 63180 -- -- -- -- -- -- 4406.42 3627.49 -- 0 -- -- --

Entrust financial expected to be unable to recover the principal or impairment might be occurred

□ Applicable √ Not applicable

IX. External security against the rules

□ Applicable √ Not applicable

The Company has no external security against the rules in the Period

X. Controlling shareholders' and its related party's non-business capital occupying of the

listed company

□ Applicable √ Not applicable

There are no controlling shareholders' and its related party's non-business capital occupying of the listed company.XI. Registration form for receiving research communication and interview in the report

period

√ Applicable □ Not applicable

Date

Reception

location

Method

Type of

investors

Object

Main content and

information provided

Index for the interview

and research

1 Jan. 2021 to 31

Mar. 2021

Interactive

platform

（http://irm.p5w.net/dqhd/sichuan/）

Written

inquiries

Other Other

Basic condition of the

Company and views

on market

The Company

answered 55 questions

for investors online

through the investor

relations interactive

platform(http://irm.p5w.net/dqhd/sichuan/)

1 Jan. 2021 to 31

Mar. 2021

Telephone

Telephone

communication

Other Other

Basic condition of the

Company and views

on market

Communicate with

investors by telephone

more than 50

Section IV. Financial Statement

I. Financial statement

1. Consolidate balance sheet

Prepared by Weifu High-Technology Group Co. Ltd

March 31 2021

In RMB

Items March 31 2021 March 31 2020

Current assets:

Monetary fund 1950302133.22 1963289832.33

Settlement provisions

Capital lent

Trading financial assets 4183535346.48 3518432939.10

Derivative financial assets

Note receivable 1267852573.12 1657315723.56

Account receivable 4202650005.87 2824780352.41

Receivable financing 966202570.80 1005524477.88

Accounts paid in advance 204563267.35 151873357.76

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance receivable

Other account receivable 36186729.31 54209580.88

Including: Interest receivable

Dividend receivable 49000000.00

Buying back the sale of financial assets

Inventories 2330883346.58 2877182174.64

Contractual assets

Assets held for sale

Non-current asset due within one year

Other current assets 2255163156.12 2137921113.61

Total current assets 17397339128.85 16190529552.17

Non-current assets:

Loans and payments on behalf

Debt investment

Other debt investment

Long-term account receivable

Long-term equity investment 5315842700.20 4801488290.97

Investment in other equity instrument 285048000.00 285048000.00

Other non-current financial assets 1265345215.64 1805788421.00

Investment real estate 20505724.03 20886681.62

Fixed assets 2897748447.32 2882230191.08

Construction in progress 234085166.44 243795493.04

Productive biological asset

Oil and gas asset

Right-of-use assets 20752240.26

Intangible assets 439784832.52 454412947.69

Expense on Research and Development

Goodwill 247617947.81 257800696.32

Long-term expenses to be apportioned 15470211.17 15062171.09

Deferred income tax asset 276786130.60 198393501.50

Other non-current asset 203248248.82 195259441.73

Total non-current asset 11222234864.81 11160165836.04

Total assets 28619573993.66 27350695388.21

Current liabilities:

Short-term loans 735340793.39 302238600.05

Loan from central bank

Capital borrowed

Trading financial liability

Derivative financial liability

Note payable 2047595491.70 2462592372.82

Account payable 4458273913.80 4100984240.39

Accounts received in advance 659924.15 4071236.87

Contractual liability 42550289.65 81717387.25

Selling financial asset of repurchase

Absorbing deposit and interbank deposit

Security trading of agency

Security sales of agency

Wage payable 172333790.05 332421811.82

Taxes payable 233520293.75 67493690.29

Other account payable 385816384.06 361556257.42

Including: Interest payable 4862.22 4862.22

Dividend payable

Commission charge and commission payable

Reinsurance payable

Liability held for sale

Non-current liabilities due within one year 24598290.18 36914242.02

Other current liabilities 252136307.16 222871087.33

Total current liabilities 8352825477.89 7972860926.26

Non-current liabilities:

Insurance contract reserve

Long-term loans 2928163.67 3050640.97

Bonds payable

Including: Preferred stock

Perpetual capital securities

Lease liability 16973079.38

Long-term account payable 33616965.11 39479218.17

Long-term wages payable 181980293.94 181980293.94

Accrual liability

Deferred income 317812460.63 328204476.73

Deferred income tax liabilities 28608655.87 30653933.12

Other non-current liabilities

Total non-current liabilities 581919618.60 583368562.93

Total liabilities 8934745096.49 8556229489.19

Owner’s equity:

Share capital 1008950570.00 1008950570.00

Other equity instrument

Including: Preferred stock

Perpetual capital securities

Capital public reserve 3313084469.55 3294242368.28

Less: Inventory shares 303627977.74 303627977.74

Other comprehensive income -4969906.17 13916619.47

Reasonable reserve 2020922.25 2333490.03

Surplus public reserve 510100496.00 510100496.00

Provision of general risk

Retained profit 14617675421.62 13756102424.62

Total owner’ s equity attributable to parent company 19143233995.51 18282017990.66

Minority interests 541594901.66 512447908.36

Total owner’ s equity 19684828897.17 18794465899.02

Total liabilities and owner’ s equity 28619573993.66 27350695388.21

Legal Representative: Wang Xiaodong

Person in charge of accounting works: Ou Jianbin

Person in charge of accounting institute: Ou Jianbin

2. Balance Sheet of Parent Company

In RMB

Items March 31 2021 March 31 2020

Current assets:

Monetary funds 983274686.88 1157684053.05

Trading financial assets 4103851493.42 3452348980.19

Derivative financial assets

Note receivable 353024807.87 422246979.39

Account receivable 1468857154.84 982782279.22

Receivable financing

Accounts paid in advance 151939963.25 75650090.49

Other account receivable 254546727.96 197335714.63

Including: Interest receivable 88888.89 897777.78

Dividend receivable

Inventories 531764778.73 725276241.43

Contractual assets

Assets held for sale

Non-current assets maturing within one year

Other current assets 2178291267.24 2057772839.50

Total current assets 10025550880.19 9071097177.90

Non-current assets:

Debt investment

Other debt investment

Long-term receivables

Long-term equity investments 6537007129.39 5978128303.88

Investment in other equity instrument 209108000.00 209108000.00

Other non-current financial assets 1265345215.64 1805788421.00

Investment real estate

Fixed assets 1778869124.48 1758198856.53

Construction in progress 127625569.23 154741266.85

Productive biological assets

Oil and natural gas assets

Right-of-use assets 1658263.91

Intangible assets 203648944.54 208112706.57

Research and development costs

Goodwill

Long-term deferred expenses

Deferred income tax assets 154152471.86 76508392.85

Other non-current assets 142576019.60 117013906.01

Total non-current assets 10419990738.65 10307599853.69

Total assets 20445541618.84 19378697031.59

Current liabilities

Short-term borrowings 202088888.89 102088888.89

Trading financial liability

Derivative financial liability

Notes payable 451652613.73 448901718.36

Account payable 1427430948.22 1265845068.26

Accounts received in advance

Contractual liability 40885036.81 6209575.73

Wage payable 110865477.66 216870819.60

Taxes payable 189526864.28 32974322.59

Other accounts payable 330102501.07 339096991.12

Including: Interest payable

Dividend payable

Liability held for sale

Non-current liabilities due within one year

Other current liabilities 191372545.67 182611991.54

Total current liabilities 2943924876.33 2594599376.09

Non-current liabilities:

Long-term loans

Bonds payable

Including: preferred stock

Perpetual capital securities

Lease liability 1712209.91

Long-term account payable

Long term employee compensation payable 176245345.03 176245345.03

Accrued liabilities

Deferred income 278769782.98 285714239.98

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 456727337.92 461959585.01

Total liabilities 3400652214.25 3056558961.10

Owners’ equity:

Share capital 1008950570.00 1008950570.00

Other equity instrument

Including: preferred stock

Perpetual capital securities

Capital public reserve 3427166622.84 3407732016.61

Less: Inventory shares 303627977.74 303627977.74

Other comprehensive income

Special reserve

Surplus reserve 510100496.00 510100496.00

Retained profit 12402299693.49 11698982965.62

Total owner’s equity 17044889404.59 16322138070.49

Total liabilities and owner’s equity 20445541618.84 19378697031.59

3. Consolidated Profit Statement

In RMB

Item Current period Last period

I. Total operating income 4700158675.54 2772108717.43

Including: Operating income 4700158675.54 2772108717.43

Interest income

Insurance gained

Commission charge and commission income

II. Total operating cost 4190477422.75 2506487031.40

Including: Operating cost 3855189876.70 2250580448.11

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 20115723.32 13130773.59

Sales expense 54746637.36 49792031.77

Administrative expense 143194220.17 132550468.46

R&D expense 118939760.37 74735427.38

Financial expense -1708795.17 -14302117.91

Including: Interest expenses 3628147.53 2579711.49

Interest income 8923810.05 18022664.17

Add: other income 10247700.49 9216894.95

Investment income (Loss is listed with “-”) 554425152.91 362685321.28

Including: Investment income on affiliated company and

joint venture

514354409.23 301761925.15

The termination of income recognition for financial assets

measured by amortized cost(Loss is listed with “-”)

-341449.81 -191797.71

Exchange income (Loss is listed with “-”)

Net exposure hedging income (Loss is listed with “-”)

Income from change of fair value (Loss is listed with “-”) -88743815.39 -2206725.01

Loss of credit impairment (Loss is listed with “-”) -1809614.35 7480599.59

Losses of devaluation of asset (Loss is listed with “-”) -44249622.45 -47389892.81

Income from assets disposal (Loss is listed with “-”) 1944581.28 70300.91

III. Operating profit (Loss is listed with “-”) 941495635.28 595478184.94

Add: Non-operating income 61113.14 93384.30

Less: Non-operating expense 332059.34 3028718.52

IV. Total profit (Loss is listed with “-”) 941224689.08 592542850.72

Less: Income tax expense 51082560.29 38745274.61

V. Net profit (Net loss is listed with “-”) 890142128.79 553797576.11

(i) Classify by business continuity

1.continuous operating net profit (net loss listed with “-”) 890142128.79 553797576.11

2.termination of net profit (net loss listed with “-”)

(ii) Classify by ownership

1.Net profit attributable to owner’s of parent company 861572997.00 549996717.72

2.Minority shareholders’ gains and losses 28569131.79 3800858.39

VI. Net after-tax of other comprehensive income -18886525.64 1455.41

Net after-tax of other comprehensive income attributable to owners

of parent company

-18886525.64 960.57

(I) Other comprehensive income items which will not be

reclassified subsequently to profit of loss

1.Changes of the defined benefit plans that re-measured

2.Other comprehensive income under equity method that cannot

be transfer to gain/loss

3.Change of fair value of investment in other equity instrument

4.Fair value change of enterprise's credit risk

5. Other

(ii) Other comprehensive income items which will be

reclassified subsequently to profit or loss

-18886525.64 960.57

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

-18886525.64 960.57

7.Other

Net after-tax of other comprehensive income attributable to

minority shareholders

494.84

VII. Total comprehensive income 871255603.15 553799031.52

Total comprehensive income attributable to owners of parent

Company

842686471.36 549997678.29

Total comprehensive income attributable to minority

shareholders

28569131.79 3801353.23

VIII. Earnings per share:

(i) Basic earnings per share 0.87 0.55

(ii) Diluted earnings per share 0.87 0.55

Enterprise combine under the same control in the Period the combined party realized net profit of 0 Yuan before combination and

realized 0 Yuan at last period for combined party

Legal Representative: Wang Xiaodong

Person in charge of accounting works: Ou Jianbin

Person in charge of accounting institute: Ou Jianbin

4. Profit Statement of Parent Company

In RMB

Item Current period Last period

I. Operating income 1743084293.93 1084517709.00

Less: Operating cost 1278601918.95 771517997.02

Taxes and surcharge 13018099.07 8726393.83

Sales expenses 9248782.42 3948899.85

Administration expenses 76440130.45 82724030.24

R&D expenses 45114875.71 38924291.76

Financial expenses -5654292.79 -19548612.65

Including: interest expenses 1515944.44 1138193.78

Interest income 7325496.04 17644344.22

Add: other income 8340003.51 7088433.84

Investment income (Loss is listed with “-”) 488901136.42 347916717.40

Including: Investment income on affiliated Company and

joint venture

448610602.44 297794629.99

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 “-”) -89343709.54 -2145787.43

Loss of credit impairment (Loss is listed with “-”) 431097.69 249448.42

Losses of devaluation of asset (Loss is listed with “-”)

Income on disposal of assets (Loss is listed with “-”) 82080.11 377.30

II. Operating profit (Loss is listed with “-”) 734725388.31 551333898.48

Add: Non-operating income 38700.29 14771.67

Less: Non-operating expense 67111.55 3017869.94

III. Total Profit (Loss is listed with “-”) 734696977.05 548330800.21

Less: Income tax 31380249.18 38048842.34

IV. Net profit (Net loss is listed with “-”) 703316727.87 510281957.87

(i)continuous operating net profit (net loss listed with “-”) 703316727.87 510281957.87

(ii) termination of net profit (net loss listed with “-”)

V. Net after-tax of other comprehensive income

(I) Other comprehensive income items which will not be

reclassified subsequently to profit of loss

1.Changes of the defined benefit plans that re-measured

2.Other comprehensive income under equity method that cannot

be transfer to gain/loss

3.Change of fair value of investment in other equity instrument

4.Fair value change of enterprise's credit risk

5. Other

(II) Other comprehensive income items which will be

reclassified subsequently to profit or loss

1.Other comprehensive income under equity method that can

transfer to gain/loss

2.Change of fair value of other debt investment

3.Amount of financial assets re-classify to other comprehensive

income

4.Credit impairment provision for other debt investment

5.Cash flow hedging reserve

6.Translation differences arising on translation of foreign

currency financial statements

7.Other

VI. Total comprehensive income 703316727.87 510281957.87

VII. Earnings per share:

(i) Basic earnings per share

(ii) Diluted earnings per share

5. Consolidated Cash Flow Statement

In RMB

Item Current period Last period

I. Cash flows arising from operating activities:

Cash received from selling commodities and providing labor services 3191959028.29 2747435787.89

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 7078180.24 6649535.99

Other cash received concerning operating activities 12315475.98 21806760.87

Subtotal of cash inflow arising from operating activities 3211352684.51 2775892084.75

Cash paid for purchasing commodities and receiving labor service 2667753903.41 1907127747.29

Net increase of customer loans and advances

Net increase of deposits in central bank and interbank

Cash paid for original insurance contract compensation

Net increase of capital lent

Cash paid for interest commission charge and commission

Cash paid for bonus of guarantee slip

Cash paid to/for staff and workers 449930340.18 327798155.34

Taxes paid 213203671.15 150583399.33

Other cash paid concerning operating activities 110006020.26 71177972.93

Subtotal of cash outflow arising from operating activities 3440893935.00 2456687274.89

Net cash flows arising from operating activities -229541250.49 319204809.86

II. Cash flows arising from investing activities:

Cash received from recovering investment 1008396982.59 1783243985.27

Cash received from investment income 89594216.53 201315193.84

Net cash received from disposal of fixed intangible and other long-term

assets

3658655.50 526745.43

Net cash received from disposal of subsidiaries and other units

Other cash received concerning investing activities

Subtotal of cash inflow from investing activities 1101649854.62 1985085924.54

Cash paid for purchasing fixed intangible and other long-term assets 128698656.89 149466109.37

Cash paid for investment 1181800000.00 1649000000.00

Net increase of mortgaged loans

Net cash received from subsidiaries and other units obtained

Other cash paid concerning investing activities

Subtotal of cash outflow from investing activities 1310498656.89 1798466109.37

Net cash flows arising from investing activities -208848802.27 186619815.17

III. Cash flows arising from financing activities

Cash received from absorbing investment

Including: Cash received from absorbing minority shareholders’

investment by subsidiaries

Cash received from loans 450799496.32 46002556.36

Other cash received concerning financing activities

Subtotal of cash inflow from financing activities 450799496.32 46002556.36

Cash paid for settling debts 28557421.48 32282403.79

Cash paid for dividend and profit distributing or interest paying 3506551.74 2150643.04

Including: Dividend and profit of minority shareholder paid by

subsidiaries

Other cash paid concerning financing activities 300007852.84

Subtotal of cash outflow from financing activities 32063973.22 334440899.67

Net cash flows arising from financing activities 418735523.10 -288438343.31

IV. Influence on cash and cash equivalents due to fluctuation in exchange rate -2987157.02 2786773.70

V. Net increase of cash and cash equivalents -22641686.68 220173055.42

Add: Balance of cash and cash equivalents at the period -begin 944946018.70 820498653.85

VI. Balance of cash and cash equivalents at the period -end 922304332.02 1040671709.27

6. Cash Flow Statement of Parent Company

In RMB

Item Current period Last period

I. Cash flows arising from operating activities:

Cash received from selling commodities and providing labor

services

1541310249.92 942284898.63

Write-back of tax received

Other cash received concerning operating activities 8502620.54 16951317.73

Subtotal of cash inflow arising from operating activities 1549812870.46 959236216.36

Cash paid for purchasing commodities and receiving labor

service

1021805390.79 534597972.02

Cash paid to/for staff and workers 266515834.88 183338674.87

Taxes paid 160019869.19 77406224.76

Other cash paid concerning operating activities 53702532.36 40837830.78

Subtotal of cash outflow arising from operating activities 1502043627.22 836180702.43

Net cash flows arising from operating activities 47769243.24 123055513.93

II. Cash flows arising from investing activities:

Cash received from recovering investment 1008396982.59 1704512336.43

Cash received from investment income 40472557.02 199861009.29

Net cash received from disposal of fixed intangible and other

long-term assets

1774195.81 10723.38

Net cash received from disposal of subsidiaries and other units

Other cash received concerning investing activities 59375295.26

Subtotal of cash inflow from investing activities 1050643735.42 1963759364.36

Cash paid for purchasing fixed intangible and other long-term

assets

82715244.63 89137557.78

Cash paid for investment 1263065000.00 1375448157.81

Net cash received from subsidiaries and other units obtained

Other cash paid concerning investing activities 30220000.00

Subtotal of cash outflow from investing activities 1376000244.63 1464585715.59

Net cash flows arising from investing activities -325356509.21 499173648.77

III. Cash flows arising from financing activities

Cash received from absorbing investment

Cash received from loans 100000000.00

Other cash received concerning financing activities 5000000.00 16620000.00

Subtotal of cash inflow from financing activities 105000000.00 16620000.00

Cash paid for settling debts

Cash paid for dividend and profit distributing or interest paying 1515944.44 1138193.78

Other cash paid concerning financing activities 316627852.84

Subtotal of cash outflow from financing activities 1515944.44 317766046.62

Net cash flows arising from financing activities 103484055.56 -301146046.62

IV. Influence on cash and cash equivalents due to fluctuation in

exchange rate

-306155.76 2828957.22

V. Net increase of cash and cash equivalents -174409366.17 323912073.30

Add: Balance of cash and cash equivalents at the period -begin 651188544.53 532115862.26

VI. Balance of cash and cash equivalents at the period -end 476779178.36 856027935.56

II. Explanation on financial statement adjustment

1. Financial statement adjustment at the beginning of the first year when implementation of new leasing

rules from 2021

√ Applicable □Not applicable

Whether to adjust the balance sheet account at the beginning of the year

√ Yes □No

Consolidate balance sheet

In RMB

Item December 31 2020 January 1 2021 Adjustment amount

Current assets:

Monetary fund 1963289832.33 1963289832.33

Trading financial assets 3518432939.10 3518432939.10

Note receivable 1657315723.56 1657315723.56

Account receivable 2824780352.41 2824780352.41

Receivable financing 1005524477.88 1005524477.88

Accounts paid in advance 151873357.76 151873357.76

Other account receivable 54209580.88 54209580.88

Dividend receivable 49000000.00 49000000.00

Inventories 2877182174.64 2877182174.64

Other current assets 2137921113.61 2137921113.61

Total current assets 16190529552.17 16190529552.17

Non-current assets:

Long-term equity investment 4801488290.97 4801488290.97

Investment in other equity instrument 285048000.00 285048000.00

Other non-current financial assets 1805788421.00 1805788421.00

Investment real estate 20886681.62 20886681.62

Fixed assets 2882230191.08 2870351470.37 -11878720.71

Construction in progress 243795493.04 243795493.04

Right-of-use assets 23828070.70 23828070.70

Intangible assets 454412947.69 454412947.69

Goodwill 257800696.32 257800696.32

Long-term expenses to be apportioned 15062171.09 15062171.09

Deferred income tax asset 198393501.50 198393501.50

Other non-current asset 195259441.73 195259441.73

Total non-current asset 11160165836.04 11172115186.03 11949349.99

Total assets 27350695388.21 27362644738.20 11949349.99

Current liabilities:

Short-term loans 302238600.05 302238600.05

Note payable 2462592372.82 2462592372.82

Account payable 4100984240.39 4100984240.39

Accounts received in advance 4071236.87 4071236.87

Contractual liability 81717387.25 81717387.25

Wage payable 332421811.82 332421811.82

Taxes payable 67493690.29 67493690.29

Other account payable 361556257.42 361556257.42

Including: Interest payable 4862.22 4862.22

Non-current liabilities due within one year 36914242.02 36914242.02

Other current liabilities 222871087.33 222871087.33

Total current liabilities 7972860926.26 7972860926.26

Non-current liabilities:

Long-term loans 3050640.97 3050640.97

Lease liability 17811603.05 17811603.05

Long-term account payable 39479218.17 33616965.11 -5862253.06

Long-term wages payable 181980293.94 181980293.94

Deferred income 328204476.73 328204476.73

Deferred income tax liabilities 30653933.12 30653933.12

Total non-current liabilities 583368562.93 595317912.92 11949349.99

Total liabilities 8556229489.19 8568178839.18 11949349.99

Owner’s equity:

Share capital 1008950570.00 1008950570.00

Capital public reserve 3294242368.28 3294242368.28

Less: Inventory shares 303627977.74 303627977.74

Other comprehensive income 13916619.47 13916619.47

Reasonable reserve 2333490.03 2333490.03

Surplus public reserve 510100496.00 510100496.00

Retained profit 13756102424.62 13756102424.62

Total owner’ s equity attributable to parent

company

18282017990.66 18282017990.66

Minority interests 512447908.36 512447908.36

Total owner’ s equity 18794465899.02 18794465899.02

Total liabilities and owner’ s equity 27350695388.21 27362644738.20 11949349.99

Balance Sheet of Parent Company

In RMB

Item December 31 2020 January 1 2021 Adjustment amount

Current assets:

Monetary funds 1157684053.05 1157684053.05

Trading financial assets 3452348980.19 3452348980.19

Note receivable 422246979.39 422246979.39

Account receivable 982782279.22 982782279.22

Accounts paid in advance 75650090.49 75650090.49

Other account receivable 197335714.63 197335714.63

Including: Interest receivable 897777.78 897777.78

Inventories 725276241.43 725276241.43

Other current assets 2057772839.50 2057772839.50

Total current assets 9071097177.90 9071097177.90

Non-current assets:

Long-term equity investments 5978128303.88 5978128303.88

Investment in other equity instrument 209108000.00 209108000.00

Other non-current financial assets 1805788421.00 1805788421.00

Fixed assets 1758198856.53 1758198856.53

Construction in progress 154741266.85 154741266.85

Right-of-use assets 1699807.76 1699807.76

Intangible assets 208112706.57 208112706.57

Deferred income tax assets 76508392.85 76508392.85

Other non-current assets 117013906.01 117013906.01

Total non-current assets 10307599853.69 10309299661.45 1699807.76

Total assets 19378697031.59 19380396839.35 1699807.76

Current liabilities

Short-term borrowings 102088888.89 102088888.89

Notes payable 448901718.36 448901718.36

Account payable 1265845068.26 1265845068.26

Contractual liability 6209575.73 6209575.73

Wage payable 216870819.60 216870819.60

Taxes payable 32974322.59 32974322.59

Other accounts payable 339096991.12 339096991.12

Other current liabilities 182611991.54 182611991.54

Total current liabilities 2594599376.09 2594599376.09

Non-current liabilities:

Lease liability 1699807.76 1699807.76

Long term employee compensation payable 176245345.03 176245345.03

Deferred income 285714239.98 285714239.98

Total non-current liabilities 461959585.01 463659392.77 1699807.76

Total liabilities 3056558961.10 3058258768.86 1699807.76

Owners’ equity:

Share capital 1008950570.00 1008950570.00

Capital public reserve 3407732016.61 3407732016.61

Less: Inventory shares 303627977.74 303627977.74

Surplus reserve 510100496.00 510100496.00

Retained profit 11698982965.62 11698982965.62

Total owner’s equity 16322138070.49 16322138070.49

Total liabilities and owner’s equity 19378697031.59 19380396839.35 1699807.76

2. Retrospective adjustment of the comparative data for initial new leasing rules from 2021

□Applicable √Not applicable

III. Audit report

Whether the 1st quarterly report has been audited or not

□Yes √ No

The 1st quarterly report of the Company was unaudited

Board of Director of

Weifu High-Technology Group Co. Ltd

Chairman: ________

Wang Xiaodong

27 April 2021