无锡威孚高科技集团股份有限公司2022年年度报告全文
WEIFU HIGH-TECHNOLOGY GROUP CO. LTD.ANNUAL REPORT 2022
April 2023
1无锡威孚高科技集团股份有限公司2022年年度报告全文
Section I. Important Notice Contents and Interpretation
Board of Directors Board of Supervisory all directors supervisors and senior executives of Weifu
High-Technology Group Co. Ltd. (hereinafter referred to as the Company) hereby confirm that
there are no any fictitious statements misleading statements or important omissions carried in this
report and shall take all responsibilities individual and/or joint for the reality accuracy and
completion of the whole contents.Wang Xiaodong Principal of the Company and Ou Jianbin person in charger of accounting works
and accounting organ (accounting principal) hereby confirm that the Financial Report of 2022
Annual Report is authentic accurate and complete.All directors have attended the 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.Internal control major defect warning
□Applicable □Not applicable
Gongzheng Tianye Certified Public Accountants(SGP) issued the audit report for the company with
an unqualified opinion with highlighted paragraphs which involves material deficiencies in non-
financial reporting 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 “prospects for thefuture development” under the “Management Discussion and Analysis” in the Report and investors
are advised to check them out.
2无锡威孚高科技集团股份有限公司2022年年度报告全文
The profit distribution plan that was deliberated and approved by the Board Meeting is: based on
total share capital of 983173293 distributed 1.00 yuan (tax included) bonus in cash for every 10-
share hold by all shareholders 0 share bonus issued (tax included) and no transfer of capital reserve
into share capital. When the profit distribution plan is implemented if there is a change in the total
amount of shares entitled to profit distribution the total amount of shares entitled to profit
distribution on the equity registration date at the time of implementation of the distribution plan
shall be adjusted based on the principle of unchanged distribution proportion.The Report is prepared in Chinese and English respectively. In the event of any discrepancy
between the two versions the Chinese version shall prevail.
3无锡威孚高科技集团股份有限公司2022年年度报告全文
Content
Section I. Important Notice Contents and Interpret....2
Section II Company Profile and Main Financial Inde....8
Section III Discussion and Analysis of the Managem...12
Section IV. Corporate Governance ....................40
Section V. Environmental and Social Responsibility...60
Section VI. Important Matters .......................67
Section VII. Changes in Shares and Particulars abo...81
Section VIII. Preferred Stock .......................89
Section IX. Corporate Bonds .........................90
Section X. Financial Report .........................91
4无锡威孚高科技集团股份有限公司2022年年度报告全文
Documents Available for Reference
I. Financial statement carrying the signatures and seals of person in charge of the company principal of the
accounting works and person in charge of accounting organ (accounting supervisor);
II. Original audit report with the seal of accounting firm and signature and seal of the CPA;
III. Original documents of the Company and manuscripts of public notices that disclosed in the website designated
by CSRC in the reporting period;
IV. Text of the Annual Report 2022 containing the signature of the legal representative of the Company;
V. Place for preparation: Office of the BOD of the Company
5无锡威孚高科技集团股份有限公司2022年年度报告全文
Interpretation
Items Refers to Contents
Company The Company WFHT Refers to WEIFU HIGH-TECHNOLOGY GROUP CO. LTD.Weifu Group Refers to Wuxi Weifu Group Co. Ltd.Wuxi Industry Group Refers to Wuxi Industry Development Group Co. Ltd.Robert Bosch Robert Bosch
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.VHIT Refers to VHIT S.p.A. Società Unipersonale
VHCN 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.Shinwell Automobile Refers to Shinwell Automobile Technology (Wuxi) Co. Ltd.Guokai Metal Refers to Wuxi Guokai Metal Resources Co. Ltd.CSRC Refers to China Securities Regulatory Commission
SZSE Refers to Shenzhen Stock Exchange
Gongzheng Tianye Certified Public Accountants (Special
Gongzheng Tianye Refers to
General Partnership)
6无锡威孚高科技集团股份有限公司2022年年度报告全文
The reporting period Refers to From Jan. 1 2022 to Dec. 31 2022
7无锡威孚高科技集团股份有限公司2022年年度报告全文
Section II Company Profile and Main Financial Indexes
I. Company information
Short form of the stock WFHT Su Weifu-B Stock code 000581 200581
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in Chinese) 无锡威孚高科技集团股份有限公司
Short form of the Company (in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
8无锡威孚高科技集团股份有限公司2022年年度报告全文
III. Information disclosure and preparation place
Website of the Stock Exchange
where the annual report of the Shenzhen Stock Exchange(http://www.szse.cn/)
Company is disclosed
Media and Website where the
China Securities Journal; Securities Times; and Juchao
annual report of the Company is
Website(http://www.cninfo.com.cn)
disclosed
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
No change
listing (if applicable)
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.Previous changes of controlling Weifu Group and Wuxi Industry Group are wholly state-owned
shareholders (if applicable) 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 reporting period
□ Applicable □ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable □ Not applicable
VI. Main accounting data and financial indexes
Whether the Company is required to retrospectively adjust or restate prior year’s accounting data
□ Yes □ No
Year-on-year
202220212020
increase(+)/decrease(-)
Operation income (RMB) 12729634917.03 13682426710.95 -6.96% 12883826306.60
Net profit attributable to shareholders
118819836.302575371419.80-95.39%2772769377.96
of the listed company(RMB)
Net profit attributable to shareholders
of the listed company after deducting 119966549.62 2544559926.75 -95.29% 2089986086.10
non-recurring gains and losses(RMB)
9无锡威孚高科技集团股份有限公司2022年年度报告全文
Net cash flows arising from operating
-2575742649.43627712593.41-510.34%781811234.01
activities (RMB)
Basic earnings per share (RMB/Share) 0.09 2.57 -96.50% 2.79
Diluted earnings per share
0.092.57-96.50%2.79
(RMB/Share)
Weighted average ROE 0.64% 13.67% -13.03% 15.78%
Year-on-year
Year-end of 2022 Year-end of 2021 Year-end of 2020
increase(+)/decrease(-)
Total assets (RMB) 28528913065.01 27970858427.84 2.00% 27350695388.21
Net assets attributable to shareholder of
17696679170.7219398607689.65-8.77%18282017990.66
listed company (RMB)
The lower of the company’s net profit before or after deduction of non-recurring profit (gain)/loss for the last three financial years is
negative and the audit report for the latest year indicates that there is uncertainty about the company’s ability to continue as a going
concern
□Yes □No
The lower of the net profit before or after deduction of non-recurring profit (gain)/loss is negative
□Yes □No
VII. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable □ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable □ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.VIII. Quarterly main financial index
In RMB
Q1 Q2 Q3 Q4
Operation income 4322024211.55 2815148646.42 2607800533.18 2984661525.88
Net profit attributable to shareholders
720738423.95370388056.13175558437.23-1147865081.01
of the listed company
Net profit attributable to shareholders
of the listed company after deducting 736298585.98 391110353.55 210509494.30 -1217951884.21
non-recurring gains and losses
Net cash flows arising from operating
-797509772.69-1696472272.20-814584807.48732824202.94
activities
10无锡威孚高科技集团股份有限公司2022年年度报告全文
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
The Company has retroactively adjusted the data disclosed in the First Quarter Report Semi-annual Report and Third Quarter Report
the specific reasons for adjustment can be found in “Announcement on Correction of Previous Accounting Errors” disclosed by the
Company on the designated website of Shenzhen Stock Exchange on April 28 2023.IX. Items and amounts of extraordinary(non-recurring) profit (gains)/loss
□Applicable □Not applicable
In RMB
Item 2022 2021 2020 Note
Gains/losses from the disposal of non-current
asset (including the write-off that accrued for -148566.90 -12350725.86 10719959.77
impairment of assets)
Governmental grants reckoned into current
gains/losses (except for those with normal
operation business concerned and conform to the
111917334.7771274511.67146475795.26
national policies & regulations and are
continuously enjoyed at a fixed or quantitative
basis according to certain standards)
Profit and loss of assets delegation on others’
1236142.582425.40271684174.09
investment or management
Except for the effective hedging operations
related to normal business operation of the
Company the gains/losses of fair value changes
from holding the trading financial assets and
-145070562.29-29889140.23375102546.00
trading financial liabilities and the investment
earnings obtained from disposing the trading
financial asset trading financial liability and
financial assets available for sale
reversal of provision for depreciation of account
receivable which was singly taken depreciation 1265113.45 8976264.09 3078424.43
test
Other non-operating income and expenditure
39799099.77130837.12-3090715.87
except for the aforementioned items
Less: Impact on income tax 1952583.99 4345456.60 116175046.47
Impact on minority shareholders’ equity
8192690.712987222.545011845.35
(post-tax)
Total -1146713.32 30811493.05 682783291.86 --
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
11无锡威孚高科技集团股份有限公司2022年年度报告全文
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 industry in which the Company operates falls into the automotive parts manufacturing industry which is closely related to the
development of the automotive industry. In 2022 facing the triple pressures of reduced demand unmet supply and weakened
expectations the auto industry overcame the impact of many unfavorable factors stepped out of the mid-year fluctuations and
uncertainties and continued to maintain a recovery in growth with steady increases in auto production and sales throughout the year.In 2022 the Company's automobile production and sales completed 27.021 million and 26.864 million units respectively with an
yoy increase of 3.4% and 2.1% respectively.
1. Market Conditions of Commercial Vehicle
In 2022 the demand for commercial vehicles was overdrawn by environmental protection and overloading control policies including
factors such as oil prices being at a high level which slowed down the overall demand for commercial vehicles. In 2022 the
Company's production and sales of commercial vehicle completed 3.185 million and 3.30 million units respectively with an yoy
decrease of 31.9% and 31.2%.In terms of production and sales by vehicle type in 2022 truck production and sales were 2778000 units and 2893000 units down
33.4% and 32.6% on a year-on-year basis respectively; Passenger car production and sales were 407000 units and 408000 units
down 19.9% and 19.2% on a year-on-year basis respectively;
In terms of subdivided models among the truck segments the productions and sales of heavy medium light and mini trucks
declined to varying degrees with the most significant decline in heavy trucks. The sales of heavy trucks amounted to 671900 units
down 52% on a year-on-year basis; The sales of medium trucks amounted to 95700 units down 46% on a year-on-year basis; The
sales of light trucks amounted to 1.6181 million units down 23% on a year-on-year basis; The sales of mini trucks amounted to
506900 units down 16% on a year-on-year basis. Among the bus segments the production and sales of large buses showed
relatively rapid growth while the production and sales of medium buses and light buses were in decline. The sales of large buses
amounted to 51500 units up 7% on a year-on-year basis; The sales of medium buses amounted to 36800 units down 19% on a
year-on-year basis; The sales of light buses amounted to 319600 units down 22% on a year-on-year basis.
2. Market Conditions of Commercial Vehicle
In 2022 passenger cars realized relatively fast growth driven by policies such as stabilizing growth and promoting consumption
contributing significantly to the modest annual growth. Despite the factors such as chip shortage due to the purchase tax incentives
and rapid growth of new energy sector the sales of domestic passenger car market this year showed a characteristic of "U-shaped
reversal significant increase". Passenger car production and sales were completed 23836000 units and 23563000 million units up
11.2% and 9.5% on a year-on-year basis an increase of over 7% above the industry average.
3. Market Conditions of New Energy Vehicle
Under the dual effects of policy and market in 2022 new energy vehicles continued to grow in an explosive manner with production
and sales reaching 7058000 units and 6887000 units respectively up 96.9% and 93.4% on a year-on-year basis with a market
share of 25.6% 12.1% higher than the previous year. In particular the sales of pure electric vehicles amounted to 5365000 units an
12无锡威孚高科技集团股份有限公司2022年年度报告全文
increase of 81.6% on a year-on-year basis; The sales of plug-in hybrid vehicles amounted to 1518000 units up 1.5 times on a year-
on-year basis; The sales of fuel cell vehicles amounted to 3 000 units up 1.1 times on a year-on-year basis;
4. Market Conditions of Off-road Vehicle
According to the requirements in the modification order of the Emission Limits and Measurement Methods for Exhaust Pollutants
from Diesel Engines for Non-road Mobile Machinery (China Stage III and IV) (GB20891-2014) and the Technical Requirements for
Pollutant Emission Control of Non-road Diesel Mobile Machinery (HJ1014-2020) issued and implemented by the Ministry of
Ecology and Environment on December 28 2020 from December 1 2022 all production import and sales of off-road mobile
machinery below 560KW (including 560KW) and its installed diesel engines shall satisfy the requirements of the Stage IV emission
standards.In 2022 as affected by factors such as the slowdown in macroeconomic growth the lack of effective project commencement rate as
well as the adjustment of agricultural machinery subsidy policies the off-road market demand for construction machinery and
agricultural machinery decreased. In 2022 the sales of diesel internal combustion engines for construction machinery amounted to
837000 units down 20.12% on a year-on-year basis; In 2022 the sales of diesel internal combustion engines for agricultural
machinery amounted to 1.222 million units down 16.55% on a year-on-year basis.(Note: The above industry data are sourced from the China Association of Automobile Manufacturers cvworld.cn and the China
Internal Combustion Engine Industry Association)
5. Matching of Company Operations with Industry
In 2022 the operation of the Company matched the development of the industry. Under the influence of multiple unfavorable factors
such as the decline in demand in the commercial vehicle market and the overall economic slowdown the Company realized
operating income of RMB 12.730 billion during the reporting period down 6.96% from the same period last year and net profit
attributable to shareholders of the listed company of RMB 0.119 billion down 95.39% from the same period last year.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 Company is engaged in the research and development production and sales of core automotive parts and components. During
the reporting period the main products are diesel fuel injection system products exhaust gas after-treatment system products and air
intake system products. Meanwhile the core components of the fuel cell products of the company have been produced and marketed
in small batches.
1. The diesel fuel injection system products are widely applied to diesel engines of all grades of power to support various types of
trucks buses construction machinery marine agricultural machinery generator sets etc. The products can satisfy the National VI
and Off-road Stage IV emission regulations for vehicles and are in the leading position within the industry in terms of product
variety production scale market share etc. While making efforts to match with domestic main engines some products have been
exported to America Southeast Asia the Middle East and other regions.
2. Exhaust after-treatment system products can satisfy the National VI and Off-road Stage IV emission regulations for vehicles. The
products are in the leading position domestically in terms of technology level market scale and production capacity and are widely
used in the fields of passenger cars commercial vehicles off-road machinery etc. which can provide strong support for the product
upgrading of main engine manufacturers.
13无锡威孚高科技集团股份有限公司2022年年度报告全文
3. Intake system products (superchargers) can satisfy the National VI Off-road Stage IV emission regulations for vehicles the
application range covers multiple fields such as commercial vehicles passenger cars construction machinery agricultural machinery
and generator sets providing support for major domestic OEMs and vehicle manufacturers.
4. The core components of fuel cells including membrane electrode graphite bipolar plate metal bipolar plate and key BOP
components are used for supporting domestic and overseas fuel cell reactor and system manufacturers.(II) Business 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
Year-on-year Year-on-year Current Same period Same period
increase/decrease( Current period increase/decrease(
period of last year of last year
+/-)+/-)
By components
Fuel management
system- multi- 182.19 279 -34.70% 217.80 284.8 -23.53%
cylinder pumps
Fuel management
148.20216.7-31.61%184.20189.6-2.85%
system- fuel injector
After-treatment
4958-15.52%6144.437.39%
system - purifier
Air management
81.7387.5-6.60%80.790.5-10.83%
system -turbocharger
By vehicle facilities
After-treatment
289.192861.12%309.63263.617.46%
system - purifier
By after-sales service market
Fuel management
system- multi- 0.32 1.0 -68.00% 0.40 1.2 -66.67%
cylinder pumps
Fuel management
0.600.3100.00%0.600.450.00%
system- fuel injector
Air management
1.071.5-28.67%1.11.5-26.67%
system -turbocharger
By region
Domestic areas
Fuel management
system- multi- 182.51 280 -34.82% 218.20 286 -23.71%
cylinder pumps
Fuel management 148.80 217 -31.43% 184.80 190 -2.74%
14无锡威孚高科技集团股份有限公司2022年年度报告全文
system- fuel injector
After-treatment
338.19344-1.69%370.6330820.33%
system - purifier
Air management
82.8089-6.97%81.892-11.09%
system -turbocharger
Explanation of reasons for a year-on-year change of 30% or more
□ Applicable □ Not applicable
In 2022 subject to the impact of a number of unfavorable factors such as the macroeconomic downturn and the overdraft of demand
in early switching of the National V to National VI environmental protection and overload control policies the domestic commercial
vehicle market was running at a low level. Under the combined influence of industry cyclical adjustment and sluggish market
demands the production and sales volume of the main products of the Company such as fuel injection system and air intake system
decreased to a certain extent over the same period last year.Sales model of spare parts
The Company adheres to the customer-centric approach and applies flexible marketing strategies and standardized development
procedures to satisfy the demands of different types of customers ensure the smooth implementation of customer development plans
and strive for more customers and a larger market share. The Company has established a mechanism for strategic customer visits
with senior management visiting customers or receiving visits from customers on a regular basis holding high-level strategic
meetings special cooperation exchanges and other activities. The Company implements special management for strategic customers
and establishes a four-in-one collaborative organization consisting of the responsible leaders key account managers marketing
department and business divisions to do a good job of customer demand analysis and management customer satisfaction survey and
analysis etc. Meanwhile the Company optimizes business processes by means of information technology to enhance the speed of
response to customer demands and assists customer relationship management through modern technological tools such as call
centers customer data warehouses business intelligence mobile devices and web conferencing. The Company promotes
collaborative marketing of existing businesses and new businesses strengthens communication and cooperation with existing
business customers in new businesses and actively expands new customers and develops potential customers.The Company engages in auto finance business
□Applicable □Not Applicable
The Company engages in business related to new energy automobile
□ Applicable □ Not applicable
Production and operation of new energy vehicles and parts
In RMB
Category Capacity Output Sales volume Sales revenue
Core components for hydrogen fuel
1500000 pieces 901000 pieces 845000 pieces 83178778.24
cells
Core parts for E-drive 2120000 pieces 1713000 pieces 1695000 pieces 189144908.67
Exhaust (PEHV) cleaner 120000 pieces 40000 pieces 36000 pieces 483320000.00
Intake(PHEV) supercharger 150000 units 81000 units 75000 units 71466238.00
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
15无锡威孚高科技集团股份有限公司2022年年度报告全文
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 in China as well as a Top 30 Enterprise in the auto parts
industry in China.
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 intelligent netlink new energy thermal management system components etc.
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 the 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.
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 Compan 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
16无锡威孚高科技集团股份有限公司2022年年度报告全文
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. Analysis of Main Businesses
1. Overview
In 2022 facing the complicated and severe macroeconomic situation and the pressure of the downward development of the
automobile industry the Company has closely followed the development objectives of the 14th Five-Year Plan implemented theannual work policy of “Targeting Strategic Targets Improving Business Quality Consolidating Management System andAccelerating the Implementation of New Industries” and all employees have made concerted efforts to overcome difficulties and
actively taken measures to cope with various challenges and the comprehensive economic operation indicators of the Company have
been superior to the industry average. During the report period the operating income of the company reached RMB 12.730 billion
6.96% lower than that in previous year; the net profit owned by the shareholders of the listed company reached RMB 0.119 billion
95.39% lower than that in the same period of previous year; the total assets of the Company was RMB 28.529 billion with an yoy
increase of 2%; the net margin belonging to shareholders of listed companies was RMB 17.697 billion with an yoy decrease of
8.77%.
Major work performed by the Company during the reporting period:
1. Join hands and overcome difficulties to maintain overall stability in revenue scale
Facing the complicated environment and changes in the industry the Company has actively expanded its projects in the domestic key
customer market while seizing the business in the overseas export market to achieve an overall stable revenue scale. Fuel injection
system products: The annual sales of common rail pumps exceeded 1350000 units; VE distribution pump sales amounted to nearly
400000 units; Benefiting from the growth of the export market the annual sales of mechanical pumps exceeded 160000 units up 22%
on a year-on-year basis. Post-treatment system products: The annual sales of gasoline purifier exceeded 2170000 sets and the
annual sales of diesel purifier exceeded 250000 sets with the market share and competitiveness of the products being steadily
improved. A number of core customer projects have been completed and approved for production in the T4 off-road market with
business volume rising rapidly; The hybrid vehicle market has been expanding strongly with several customer projects achieving
batch production. Air intake system products: The annual sales of four-cylinder diesel supercharger exceeded 520000 units and
continued to maintain the position of the first domestic market share of the industry. The annual sales of gasoline supercharger
exceeded 220000 units doubling on a year-on-year basis and a number of domestic leading new energy vehicle customer projects
have been acquired and gradually achieved batch production. The annual sales of motor shaft products of the Company exceeded
560000 pieces realizing a four-fold increase on a year-on-year basis. The Company has achieved bulk supply to internationally
leading new energy vehicle customers and continued to acquire projects from a number of leading customers. The business volumes
of hydrogen fuel cell components such as “one membrane and two plates” and BOP key components have grown steadily and
breakthroughs have been achieved in several customer projects.
17无锡威孚高科技集团股份有限公司2022年年度报告全文
2. The Company has promoted the efficient development of its main products and expedited the research and deployment of
new industry products
Efficient and clean internal combustion power products: For the GP electronically controlled fuel system the Company has
completed the application development of some models of key customers and realized small batch delivery and completed the
development of Sample A of 2200bar system and Sample C of CB6-25 high-pressure pump; The Company has completed the T4
announcement for all source machines of the 12 off-road manufacturers of the VP system. The Company has completed the
development of the Sample D of the second generation platform of the six-cylinder supercharger WT04/05 and the small batch
delivery of key customer projects; The Company has completed the batch production and delivery of four-cylinder superchargers for
eight key commercial vehicle customers. The Company has completed the development of Sample B of the light diesel platform and
Sample C of the heavy diesel platform of the post-treatment system; The Company has completed the transformation of 80 post-
treatment products for customers of passenger car independent brands. The Company has completed the development of the Sample
B of the mechanical part of the variable valve system and the Sample A of the controller; The Company has completed the batch
delivery of 17 displacement products for 3 platforms of hydraulic pumps.Hydrogen energy and intelligent electric products: The Company has completed the development of Sample C of platinum carbon
catalysts and the construction of platinum carbon and platinum alloy catalyst production lines; The Company has completed the batch
delivery of hydrogen injector hydrogen isolation valve and hydrogen safety valve for low pressure hydrogen subsystem as well as
the first batch of samples for hydrogen circulation pump for customers; The Company has completed the development of Sample A
and partial reliability testing of the high-pressure hydrogen subsystem; The Company has realized the delivery of electric booster
customer samples in the air subsystem; For hydrothermal management system the Company has completed the development of
Sample A for electronic water pump and thermostat and the supply of samples to customers. The Company has completed the
construction of a 100 kW level PEM electrolytic water hydrogen production demonstration line for renewable energy hydrogen
production system. The Dongfeng Fengshen E70 equipped with the wheel hub motor product of the Company is the first wheel hub
motor model in the world to obtain the type approval notice for passenger cars and has already satisfied the requirements for mass
production. The Company has completed the development of Sample C for throw radar and Sample B for in-cabin radar; The 4D
imaging radar products have been awarded the mainline logistics project.
3. The strategic planning system is running and the investment layout of new industries is accelerated
In terms of strategic planning the Company has completed the optimization and release of the company’s strategic blueprint forming
a new strategic pattern of all-round development of four major sectors namely the energy saving and emission reduction green
hydrogen energy smart electric power and other core components. The Company has implemented the annual review and evaluation
of strategic planning promoted the communication and docking between functions and businesses and released the planning revision
plan of major business segments through the Company's strategic special committee. The Company has established a strategic
research organization promoted the investigation and preliminary planning of thermal management system and core components
and completed the strategic special research work such as hydrogen production from electrolyzed water hydrogen fuel cells
electrification of commercial vehicles and alternative fuels. The Company has actively promoted the government docking work
related to planned land use and industrial subsidies.In terms of investment cooperation the Company has signed a strategic cooperation agreement with Bosch Rexroth and established
Lezhuo Bowei joint venture company; The Company has completed the signing of the merger and acquisition project of vacuum
pump and electronic oil pump and has delivered the project smoothly; The Company has completed the planning of three global
hydrogen business bases and the review and approval of related investment projects actively implemented the capacity construction
projects of membrane electrodes and bipolar plates realized strategic cooperation with ROBERT BOSCH Company and Xinwu
District Government of Wuxi City and established Wuxi Weifu Qinglong Power Technology Co. Ltd.. The Company has actively
promoted the preliminary work of investment cooperation related to 4D imaging millimeter wave radar and PEM water electrolysis
hydrogen production projects. The Company has completed the formulation of post-evaluation management measures for equity
investment projects and established a normalized post-investment evaluation mechanism.
4. Strengthen quality and safety management promote the construction of intelligent information
18无锡威孚高科技集团股份有限公司2022年年度报告全文
The Company has realized stable improvement in the zero-kilometer level of core products and maintained the zero-kilometer fault
of common rail products ≤ 10 ppm; The Company has deepened the application of Q11 quality tools and the hierarchical
normalization evaluation of all process elements; The Company has carried out design review experimental design quality house
tool training and project pilot of failure mode; The Company has promoted the standardization of online measurement management
system and coding and identification of measuring instruments; The Company has carried out continuous improvement of the
Group's 25 value stream systems and completed 154 improvement projects; Three business divisions have completed the launch of
the process module of the product life cycle management platform and the standardization and update of the working hours quota.The Company has steadily promoted the construction of the R&D building and successfully completed the construction projects
such as motor shaft workshop VHCN workshop WFQL workshop and the transformation of Class A laboratory for hydrogen
production by proton exchange membrane. The Company has completed the external audit and certification of ISO50001 energy
management system; The Company has optimized the environmental health and safety information supervision platform and
implement normalized supervision for large risk points; The Company has maintained zero major casualty and fire incident
throughout the year. The Company's Automotive Diesel System Division has successfully passed the four-level evaluation of
national intelligent manufacturing capability maturity; The SAP S4 HANA upgrade project has been officially launched and the
process management system project digital collaborative office platform and defect machine vision inspection project have been
completed and put into operation; The expansion of data service platform architecture and the construction of real-time computing
platform have been steadily promoted and it has been promoted and applied in cooperation with intelligent manufacturing projects;
The construction of information technology service management system has been initially completed and the operation and
maintenance service platform was officially put into use; The Company has completed the design of software R&D and operation
and maintenance management system built the basic software R&D platform and realized the launch of the hybrid cloud
management and control platform.
5. Consolidate the quality of enterprise operation and improve the efficiency of operation and management
The Company has promoted the construction of process management system in R&D domain marketing domain and administrative
domain initially completed the closed loop of long-term mechanism of process complete the design of business unit organization
and operation mechanism promoted the pilot operation of precision manufacturing business unit and completed the centralized
management of major innovation incentive projects of the company. The Company has re-planned the procurement business system
from three aspects: supplier management daily procurement management and logistics management and completed the second stage
adjustment of the company's procurement organization reform. The Company has promoted the implementation of the optimization
of supplier classification methods and performance evaluation for direct and indirect materials and further standardized supplier
management. The Company has completed the preliminary storage planning of the company and determined the step-by-step
implementation roadmap. The Company has deepened its asset management measures optimized the efficiency of operating assets
closely monitored asset risks and continued to promote the special audit management of "foreign capital"; The Company has
strengthened the ability of cost control refine the granularity of cost and promoted the systematization of cost analysis. The
Company has strengthened the integration of risk control compliance elements into the system process review and completed special
internal control tests and evaluations such as marketing domain-credit control information technology-information security. The
Company has paid emphasis on promoting the introduction of strategic new business R&D talents and completed the construction of
WFQL’s core talent team; The Company has continued to build a talent development system of “San Hang Yi Jiang” and develop
quality models of key positions such as marketing and technology; Facing the strategic new business the Company has actively
explored the incentive mechanism with more market competitiveness; continuously optimized the salary model and improve the
project incentive mechanism according to the business characteristics. The second phase of the personnel information system has
been put into operation further improving the digital management ability of human resources.
19无锡威孚高科技集团股份有限公司2022年年度报告全文
2.Revenue and cost
(1) Composition of operation revenue
In RMB
2022 2021 Year-on-
year
Ratio in operation Ratio in operation increase(+
Amount Amount
revenue revenue )/decrease
(-)
Total operation
12729634917.03100%13682426710.95100%-6.96%
revenue
By industry
Automotive
12333099421.8796.88%13184138129.8896.36%-6.46%
components
Other business 396535495.16 3.12% 498288581.07 3.64% -20.42%
By product
Automotive fuel
6007572425.9547.19%6025368344.7144.04%-0.30%
management system
Automotive after-
5757697818.5245.23%6511015127.5547.59%-11.57%
treatment system
Air management
567829177.404.46%647754657.624.73%-12.34%
system
Other business 396535495.16 3.12% 498288581.07 3.64% -20.42%
By region
Domestic 11917440065.87 93.62% 13304186980.94 97.24% -10.42%
Foreign 812194851.16 6.38% 378239730.01 2.76% 114.73%
By sales model
Direct sale 12729634917.03 100.00% 13682426710.95 100.00% -6.96%
(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
Gross Year-on-year
increase(+)/decrease increase(+)/decr
Operation revenue Operation cost profit increase(+)/decrease
(-) of operation ease(-) of gross
ratio (-) of operation cost
revenue profit ratio
By industry
Automo
tive
12333099421.8710658281929.9113.58%-6.46%-1.52%-4.33%
compon
ents
By product
Automo
tive fuel
manage 6007572425.95 4910467473.94 18.26% -0.30% 7.98% -6.26%
ment
system
Automo
5757697818.525279643720.828.30%-11.57%-9.15%-2.45%
tive
20无锡威孚高科技集团股份有限公司2022年年度报告全文
after-
treatme
nt
system
Air
manage
567829177.40468170735.1517.55%-12.34%0.98%-10.88%
ment
system
By region
Domest
11520904570.7110063929347.3812.65%-10.03%-3.74%-5.71%
ic sales
Foreign
812194851.16594352582.5326.82%114.73%61.82%23.93%
sales
By sales mode
Direct
12333099421.8710658281929.9113.58%-6.46%0.00%-4.33%
sales
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
(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 2022 2021
increase(+)/decrease(-)
Sales
In 10 thousand sets 218.20 286.00 -23.71%
Fuel management system- multi-cylinder volume
pumps Output In 10 thousand sets 182.51 280.00 -34.82%
Storage In 10 thousand sets 2.31 38.00 -93.92%
Sales
In 10 thousand suits 184.80 190.00 -2.74%
volume
Fuel management system- fuel injector Output In 10 thousand suits 148.80 217.00 -31.43%
Storage In 10 thousand suits 16.00 52.00 -69.23%
Sales In 10 thousand
370.63308.0020.33%
volume pieces
In 10 thousand
After-treatment system - purifier Output 338.19 344.00 -1.69%
pieces
In 10 thousand
Storage 48.56 81.00 -40.05%
pieces
Sales
In 10 thousand sets 81.80 92.00 -11.09%
volume
Air management system -turbocharger Output In 10 thousand sets 82.80 89.00 -6.97%
Storage In 10 thousand sets 18.00 17.00 5.88%
Description for relevant year-on-year data changing over 30%
□ Applicable □ Not applicable
Affected by the decrease in market demand the production and sales of fuel injection system products decreased compared with last
year; Due to the reduction of market demand and the requirements of the company's production planning and inventory control
management the inventory of fuel injection system products and after treatment system products decreased significantly year-on-
year during the reporting period.
21无锡威孚高科技集团股份有限公司2022年年度报告全文
(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
20222021
Year-on-year
Industries Item Ratio in Ratio in
Amount operation Amount operation increase(+)/decrease(-)
cost cost
Automotive
Direct material 8095497519.84 75.95% 9048058229.72 83.60% -10.53%
components
Automotive
Labor cost 929458806.34 8.72% 790874802.43 7.31% 17.52%
components
Automotive
Depreciation 343934013.85 3.23% 257633922.53 2.38% 33.50%
components
Automotive Varieties of 1289391589.88 12.10% 726033566.22 6.71% 77.59%
components consumption
In RMB
2022 2021 Year-on-year
Products Item Ratio in Ratio in operation increase(+)/decrease(-
Amount operation Amount
cost )
cost
Fuel
Direct
management 3115518946.44 63.45% 3080614222.05 67.74% 1.13%
material
system
Fuel
management Labor cost 748680992.35 15.25% 676106197.66 14.87% 10.73%
system
Fuel
management Depreciation 255349057.28 5.20% 214171045.70 4.71% 19.23%
system
Fuel
Varieties of
management 790918477.87 16.10% 576787018.40 12.68% 37.12%
consumption
system
After-
Direct
treatment 4569665321.35 86.55% 5554787086.57 95.59% -17.73%
material
system
After-
treatment Labor cost 149450815.08 2.83% 90930353.55 1.56% 64.36%
system
After-
treatment Depreciation 72125006.14 1.37% 27076236.77 0.47% 166.38%
system
After-
Varieties of
treatment 488402578.25 9.25% 138506106.63 2.38% 252.62%
consumption
system
Air
Direct
management 410313252.05 87.64% 412656921.10 89.01% -0.57%
material
system
Air
management Labor cost 31326998.91 6.69% 23838251.22 5.14% 31.41%
system
Air
Depreciation 16459950.43 3.52% 16386640.06 3.53% 0.45%
management
22无锡威孚高科技集团股份有限公司2022年年度报告全文
system
Air
Varieties of
management 10070533.76 2.15% 10740441.19 2.32% -6.24%
consumption
system
(6) Whether there was a change in the scope of consolidation during the reporting period
□Yes □No
Changes in the
Name of Contribution
scope of Acquisition manner of equity
enterprise ratio
consolidation
Jointly funded and established by the Company with its wholly-owned subsidiaries
Increase in IRD FUEL CELLS A/S BORIT NV as well as ROBERT BOSCH
WFQL 75.00%
consolidation scope INTERNATIONALE BETEILIGUNGEN AG and Wuxi High-Tech Zone New
Dynamic Industrial Development Fund (Limited Partnership)
Increase in A wholly-owned subsidiary purchased by the Company through SPV in cash in the
VHIT 100.00%
consolidation scope current period
Increase in
VHCN Wholly owned subsidiary purchased in cash by the Company in the current period 100.00%
consolidation scope
(7) Major changes or adjustment in business product or service of the Company in Reporting Period
□ Applicable □Not applicable
(8) Major sales and main suppliers
Major sales clients of the Company
Total top five clients in sales (RMB) 4715798936.72
Proportion in total annual sales volume for top five clients 37.04%
Ratio of the related party sales in total annual sales from top five clients 29.03%
Information of top five clients of the Company
Proportion in total annual
Serial Name Sales (RMB)
sales
1 RBCD 2220345511.60 17.44%
2 Robert Bosch Company 1475458231.00 11.59%
3 Client 1 376978411.80 2.96%
4 Client 2 358805398.60 2.82%
5 Client 3 284211383.72 2.23%
Total -- 4715798936.72 37.04%
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) 2903660303.77
Proportion in total annual purchase amount for top five suppliers 25.40%
Ratio of the related party purchase in total annual purchase amount from top 7.66%
23无锡威孚高科技集团股份有限公司2022年年度报告全文
five suppliers
Information of top five suppliers of the Company
Ratio in annual total
Serial Suppliers Purchasing amount (RMB)
purchasing amount
1 Client 1 1147286046.48 10.04%
2 WFEC 575378265.05 5.03%
3 Client 2 593414524.51 5.19%
4 RBCD 301077307.73 2.63%
5 Client 3 286504160.00 2.51%
Total -- 2903660303.77 25.40%
Other notes of main suppliers of the Company
□ Applicable □ Not applicable
The Company has association with WFEC and RBCD. 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
2021 2020 Note of major changes
increase(+)/decrease(-)
Mainly due to the continuous optimization
of product quality management and the
Sales expenses 189528090.71 264651432.56 -28.39%
reduction of three guarantee fees for
customers
Administration
586386474.32611872150.24-4.17%
expenses
Financial
82327615.76 20063248.84 310.34% Mainly due to the increase in loan interest
expenses
R&D expenses 581488711.88 595406951.64 -2.34%
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
component products Promotes the market
application of the core alternative(hydrogen ， In progress customerfor clean fuel injection share of clean fuel
components of clean natural gas etc) project is progressing system and apply to the products in the future
fuel injection system traditional fuel
market
injection system
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
common-rail pump In progress customer emission standards for products and extend
Euro VII emission
products to meet the project is progressing automotive diesel the life of traditional
standards for
Euro VII emission engines and apply to products
automotive diesel
standard the market
engines
Development and
Development on the In progress some Resulting the diesel
application on the Enhance the existing
diesel fuel injection projects of customers fuel injection parts
diesel fuel injection products and extend
parts products that have been put into products that meets the
parts products to meet
meets the off-road T4 the life of traditional
the off-road T4 mass production.In off-road T4 emission
emission standards products
emission standards progress some projects standards and apply to
24无锡威孚高科技集团股份有限公司2022年年度报告全文
of customers have been the market
put into mass
production.Development and Resulting the passenger
Development on the
application on the In progress and some car after-treatment Enhance the existing
passenger car after-
passenger car after- models are in customer products that meets the products and extend
treatment products that
treatment products to
meets the National VI application already and National VI emission the life of traditional
meet the National VI
emission standards have been supplied. standards and apply to products
emission standards
the market
Development and
Development on the Resulting the passenger
application on the In progress and some
commercial vehicle car after-treatment Enhance the existing
commercial vehicle models are in customer
after-treatment products that meets the products and extend
after-treatment application and have
products that meets the
products to meet the Euro VII emission the life of traditional
Euro VII emission been supplied in small
Euro VII emission standards and apply to products
standards batches
standards the market
Development and
Development on the Resulting the after-
application on the Enhance the existing
after-treatment In progress and some treatment products that
after-treatment products and extend
products that meets the models are in customer meets the off-road T4
products to meet the
off-road T4 emission application already emission standards and the life of traditional
off-road T4 emission
standards apply to the market products
standards
Development and Resulting the
Development on the In progress and some
application on the supercharger products Enhance the existing
supercharger products models are in customer
supercharger products for gasoline engine that products and extend
for gasoline engine that application already
for gasoline engine to meets the National VI the life of traditional
meets the National VI and have been supplied
meet the National VI emission standards and products
emission standards in small batch.emission standards put them on the market
Development and Resulting the
Development on the
application on the supercharger products Enhance the existing
supercharger products In progress and
supercharger products for diesel engine that products and extend
for diesel engine that customer project is in
for diesel engine to meets the National VI the life of traditional
meets the Euro VII progress.meet the Euro VII emission standards and products
emission standards
emission standards put them on the market
Resulting the
Development and
Development on the supercharger products
application on the Enhance the existing
supercharger products In progress and some for natural gas engine
supercharger products products and extend
for natural gas engine models are in customer that meets the National
for natural gas engine the life of traditional
that meets the National application already VI emission standards
to meet the National VI products
VI emission standards and put them on the
emission standards
market
Enhance the existing
Development and Resulting the
Development on the products fit in with
application of the In progress and some supercharger products
supercharger for new application
supercharger for customers are supplied for automotive
automotive incremental scenarios and extend
automotive incremental batches incremental engine and
engine the life of traditional
engine put them on the market
products
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 have entered customer hydrogen fuel cells and future and new
fuel cell
hydrogen fuel cell application put them on the market business growth points
Development and Development on the In progress relevant Resulting a large-scale Main direction of the
application on BOP BOP key component products have achieved production of BOP key emerging business of
key component (valve pumps etc.) small production and component products of the Company in the
products of hydrogen products of hydrogen have entered customer hydrogen fuel cells and future and new
fuel cells fuel cells application put them on the market business growth points
Resulting development
Development and Development on E- In progress relevant Main direction of the
on the E-drive
application of the E- drive component products have been emerging business of
components products
drive components (motor shaft motor mass-produced and the Company in the
for new energy
products for new case etc. ) products for have been supplied in future and new
vehicles and put them
energy vehicles new energy vehicles batch. business growth points
on the market
Development and Development on In progress sample Resulting the Main direction of the
application of intelligent sensing core delivery of relevant intelligent sensing core emerging business of
25无锡威孚高科技集团股份有限公司2022年年度报告全文
intelligent sensing core module products products have been module products and the Company in the
module products (milliliter-wave radar) achieved and been put them on the market future and new
applied pilot in some business growth points
projects.In progress some Main direction of the
Development and products have entered Resulting the smart emerging business of
Development on smart
application of smart customer applications seating products and the Company in the
seating products
seating products and have been supplied put them on the market future and new
in small batch 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 entered the Company in the
component products of products and put them
component products customer applications future and new
hydraulic system on the market
business growth points
Main direction of the
Development and Resulting the brake
Development on brake In progress some emerging business of
application on core system core component
system core component products have entered the Company in the
component products of products and put them
products customer applications future and new
brake system on the market
business growth points
Improve the
Development and Resulting the technological
Development on
application of the In progress some intelligent capabilities in field of
intelligent
intelligent products have entered manufacturing intelligent
manufacturing
manufacturing customer applications equipment and put manufacturing and
equipment
equipment them on the market creating economic
benefits
Personnel of R&D
2022 2021 Change ratio
Number of R&D (person) 1232 1112 10.79%
Ratio of number of R&D 20.92% 20.82% 0.10%
Education background
Undergraduate 708 679 4.27%
Master 240 207 15.94%
Age composition
Under 30 328 289 13.49%
30~4064957013.86%
Investment of R&D
2022 2021 Change ratio
R&D investment (RMB) 581488711.88 595406951.64 -2.34%
R&D investment/Operation revenue 4.57% 4.35% 0.22%
Capitalization of R&D investment
0.000.00
(RMB)
Capitalization of R&D
0.00%0.00%
investment/R&D investment
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
26无锡威孚高科技集团股份有限公司2022年年度报告全文
5.Cash flow
In RMB
Item 2022 2021 Year-on-year growth rate
Subtotal of cash inflow arising from
16421144267.5015691750941.154.65%
operating activities
Subtotal of cash outflow arising from
18996886916.9315064038347.7426.11%
operating activities
Net cash flows arising from operating
-2575742649.43627712593.41-510.34%
activities
Subtotal of cash inflow from investing
12081224107.5519393979375.09-37.71%
activities
Subtotal of cash outflow from investing
8485283459.0619422030926.39-56.31%
activities
Net cash flows arising from investing
3595940648.49-28051551.30
activities
Subtotal of cash inflow from financing
4817002243.341717278897.47180.50%
activities
Subtotal of cash outflow from financing
4681832516.842154807351.77117.27%
activities
Net cash flows arising from financing
135169726.50-437528454.30
activities
Net increase of cash and cash equivalents 1183098668.09 149072918.03 693.64%
Main reasons for y-o-y major changes in aspect of relevant data
□ Applicable □ Not applicable
1. Net cash flows arising from operating activities decreased y-o-y mainly due to the platform trade cash outflow during the year;
2. Net cash flows arising from investing activities increased y-o-y mainly due to the increase in operating cash demand required the
reduction of the scale of financial management and the investment outflow decreased during the year;
3. Net cash flows arising from financing activities increased y-o-y mainly due to: Financing inflows during the reporting period were
dominated by a RMB 3 billion increase in borrowing during the year; Financing outflows mainly for loan repayment increased 1.8
billion dividend increased outflow 200 million equity repurchase 400 million during the year.Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company
□ Applicable □ Not applicable
Mainly due to the increased profit from investment income and net cash outflow from platform business.V. Analysis of the non-main business
□Applicable □Not applicable
In RMB
Ratio in total
Amount Cause description Whether be sustainable
profit
Investment earnings
mainly form the two The joint ventures RBCD and
joint ventures (RBCD Zhonglian Electronics have stable
Investment earnings 1849145500.50 1029.51% and Zhonglian production and operation so the
Electronics) with stock investment returns can be
participated by the sustained and stable
Company
Gain/loss of fair
-157622752.09-87.76%
value changes
Asset impairment -181610433.12 -101.11%
Non-operating
5699768.043.17%
income
27无锡威孚高科技集团股份有限公司2022年年度报告全文
Non-operating
7711660.064.29%
expense
VI. Assets and liability analysis
1. Major changes of assets composition
In RMB
Year-end of 2021 Year-begin of 2021
Ratio
Ratio in Ratio in
changes Note of major changes
Amount total Amount total
(+/-)
assets assets
Monetary funds 2389551930.76 8.38% 1896063265.69 6.78% 1.60%
The newly acquired companies
VHIT and VHCN are included
Account
3127490177.25 10.96% 2053800293.77 7.34% 3.62% in the consolidated statements
receivable
and seasonal fluctuation of
orders
Mainly due to a decrease in
Inventory 2283119656.27 8.00% 3445396375.09 12.32% -4.32% inventory consumption and
finished products
Investment real
49296869.730.17%19387746.560.07%0.10%
estate
Long-term
equity 6282818108.96 22.02% 5717944788.12 20.44% 1.58%
investment
Fixed assets 3769984185.94 13.21% 2932210452.51 10.48% 2.73%
Mainly due to the increase of
Construction in
509105587.49 1.78% 387429933.08 1.39% 0.39% equipment and engineering
progress
investment
Right-of-use Mainly due to the increase in
41865100.380.15%23148405.580.08%0.07%
assets leasing of production plants
Mainly due to the increase in
Short-term
3604376527.82 12.63% 1437958206.55 5.14% 7.49% platform trade business
borrowings
borrowing
Contract Mainly due to lending liability
94850083.230.33%136427636.390.49%-0.16%
liability maturing
Long-term Mainly for the subsidiary
238000000.000.83%0.00%0.83%
borrowings borrowing
Mainly due to the increase in
Lease liability 31589277.20 0.11% 15795469.25 0.06% 0.05%
leasing of production plants
Foreign assets account for a relatively high proportion
□Applicable □Not applicable
2. Assets and liability measured by fair value
□Applicable □ Not applicable
In RMB
Accumulat
Devaluati Amou
Changes of fair ive
on of Amount of nt of
Amount at the value changes of Other changes Amount at
Items withdraw purchase in the sale in
beginning period gains/losses in fair value (+-) period-end
ing in the period the
this period reckoned
period period
into equity
Financial assets
1.Trading
financial 7692496307.12 -140249770.47 6719441525.14 - 4045429568.
28无锡威孚高科技集团股份有限公司2022年年度报告全文
asset(exclud 10226258492.9 87
ing
derivative 2
financial
assets)
2.Other
equity 677790690.0
instrument 285048000.00 392742690.00 0
investment
3.Receivabl 1918368845.
e financing 713017014.50 1205351830.71 21
4.Foreign
exchange 74734940.30 214239287.50 -288974227.80
contracts
Subtotal of
-6641589104.financial 8765296261.92 -140249770.47 7326423502.64
assets 9309880890.01 08
-6641589104.Above total 8765296261.92 -140249770.47 7326423502.64
9309880890.0108
Financial
liabilities 0.00 747115.75 747115.75
Other changes: Maturity redemption
Whether there have major changes on measurement attributes for main assets of the Company in report period or not
□ Yes □No
3.The assets rights restricted till end of the period
In RMB
Item Book value at period-end Restriction reason
Monetary funds 18840000.00 Dollar margin for foreign exchange contracts
Monetary funds 24368385.65 Cash deposit paid for bank acceptance
Monetary funds 7487250.00 IRD performance bond
Monetary funds 199660.00 Cash deposit for Mastercard
Monetary funds 180000.00 Court freezing
Monetary funds 5000.00 ETC freezing
Note receivable 82908186.94 Notes pledge for bank acceptance
Receivable financing 530337600.45 Notes pledge for bank acceptance
Total 664326083.04
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
29无锡威孚高科技集团股份有限公司2022年年度报告全文
□ Applicable □Not applicable
In RMB
Cumu
Book Curre
Cod Short Account Current lative Curre Book
Varie value at nt Profit and Capit
e of form Initial ing gain/loss fair nt value at
ty of the purch loss in the Accountin al
sec of investmen measure of fair value sales the end
secur beginning ase Reporting g subject Sourc
uriti securiti t cost ment value chang amou of the
ities of the amou Period e
es es model changes es in nt period
period nt
equity
Dom
estic
and Measure - - Trading
600 1992080 1536433 78834 Own
forei SNAT d by fair 7480857 7480857 financial
841 00.00 08.00 732.00 fund
gn value 6.00 6.00 asset
stock
s
Dom
estic
Miracl
and Measure - - Trading
002 e 6933150 1137936 66693 Own
forei d by fair 4710000 4710000 financial
009 Autom 0.00 00.00 600.00 fund
gn value 0.00 0.00 asset
ation
stock
s
Dom
estic
and Guolia Measure - - Trading
601 n 1200000 2087951 186608 Own
forei Securit d by fair 2218626 2218626 financial 456 0.00 78.00 914.00 fund
gn ies value 4.00 4.00 asset
stock
s
Dom
estic
and Lifan Measure Trading
601 - - 48516. Own
forei Techno 62845.00 d by fair 77802.11 financial
777 logy 29285.77 29285.77 34 fund
gn value asset
stock
s
Dom
estic
and Measure Trading
000 Zoyte 613265.4 6132 1795 462414 Own
forei d by fair 28699.00 28699.00 financial
980 Auto 8 65.48 50.00 .48 fund
gn value asset
stock
s
--
2812156476309861321795332648
Total -- 1440954 0.00 1440954 -- --
10.4888.1165.4850.00176.82
26.7726.77
Disclosure date of 2012-03-24
securities investment
approval of the Board 2013-06-04
Note: 1) SDEC was renamed into SNAT during the reporting period; 2) the financial asset investment to Zoyte Auto was generated
by the conversion of accounts receivable by WFLD into equity.
(2) Derivative investment
□ Applicable □ Not applicable
There is no derivative investment during the reporting period.
30无锡威孚高科技集团股份有限公司2022年年度报告全文
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 Main Register Operating Operating
Type Total assets Net assets Net profit
name business capital revenue profit
After-
treatment 502596300. 6281611332.7 2551419127.2 5937549034.4
WFLD Subsidiary
system 253317797.71 265352997.31 00 2 5 2
products
Fuel
manageme 346286825. 1435778324.4 1054213332.1
WFJN Subsidiary
nt system 732361563.72 87436633.69 83150768.43 80 2 9
products
Equity Fuel USD
participatio manageme 18847559360. 10037249721. 13443929728. 3210134490. 3059444530.RBCD
n nt system 382500000. 81 72 58 05 82
enterprise products 00
Zhonglia Equity
Gasoline
n participatio 600620000. 7798719691.4 7790030240.4 1880653975. 1876187641.system
Electroni n 26913563.07
products 00 7 7 53 39
cs enterprise
Subsidiary acquired and disposed in the Period
□ Applicable □ Not applicable
Method of acquiring and disposing of
Subsidiary
subsidiaries during the reporting Impact on overall production operation and performance
name
period
WFQL is mainly engaged in R&D production and sales of core components
for hydrogen fuel cells. The establishment of this subsidiary has no significant
WFQL Investment establishment
impact on the overall production operation and performance of the Company
during the reporting period.VHCN is mainly engaged in R&D production and sales of automotive
component products. The acquisition of this subsidiary has no significant
VHCN Cash acquisition
impact on the overall production operation and performance of the company
during the reporting period.Explanation of the main controlling and participating companies
31无锡威孚高科技集团股份有限公司2022年年度报告全文
During the reporting period due to the impact of macroeconomic and commercial vehicle market downturn the operating revenue
operating profit and net profit of WFLD WFJN and RBCD all declined in varying degree y-o-y.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” “smart electric” and “other coreparts”.
(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 post-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.* 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
32无锡威孚高科技集团股份有限公司2022年年度报告全文
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.
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.
33无锡威孚高科技集团股份有限公司2022年年度报告全文
* 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 sensing 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.* Expand multi-scene applications and progressively evolve to high-end applications. Take the initiative to enter the non-vehicle
radar field extend the radar application in the intelligent cockpit field simultaneously quickly achieve the market application of 3D
radar products and take the vehicle ADAS 3D radar as an opportunity to progressively penetrate the vehicle market accumulate the
vehicle scene technology and penetrate the vehicle autonomous driving application scene upon the maturity of 4D radar technology.* Technology accumulation and capability maturity for high-end product technology breakthroughs. Intensify the key technology
and R&D capabilities of millimeter wave radars establish a large-scale production capacity of 3D radars for ADAS while expediting
the R&D progress of 4D radar products and making technical breakthroughs on high-end products to progressively realize the
commercialization of ADAS 4D radars.* Deepen industry chain cooperation and realize large-scale growth. Actively pursue potential strategic investment cooperation in
global industry chain focus on integration of millimeter wave radar module link become a standardized radar module supplier and
shape large-scale business growth.
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
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.
34无锡威孚高科技集团股份有限公司2022年年度报告全文
(II) Priority tasks for 2023
Facing the volatile and severe macroeconomic conditions as well as the development trend of automobile market in 2023 the
Company will closely follow the development target of “14th Five-year Plan” implement the annual operation guideline of “Aimingat Strategic Objectives Committed to Operation Enhancement and New Business Cultivation” actively address the new changes and
challenges in the industry solidly perform the key tasks adhere to seeking progress amidst stability and promote the high-quality
transformation and development of the Company.
1. Improve the operation quality of strategic system promote the layout of new business investment
Further improve the operation quality of strategic system strengthen the dynamic assessment and optimization of the strategic
planning for laid business; The Company will continuously improve the organization and management ability of strategic special
research and strengthen the planning and implementation of new business. The Company will actively promote the millimeter-wave
radar and hydraulic business investment cooperation projects continue to promote the capacity-building investment projects of the
three global bases of green hydrogen energy business and promote the in-depth cooperation of projects invested in smart electric
business. The Company will actively explore and practice the formation of post-investment governance structure and system with
Weifu characteristics and comprehensively promote post-investment integration and governance. The Company will strengthen the
incubation function of new business promoted it in the form of project system accelerate the cultivation of millimeter wave radar
PEM electrolyzed water to produce hydrogen and other businesses and strengthen the operation management of post-investment
projects.
2. Stabilize the Company’s position in the industry by main business accelerate market breakthrough by new products
Fuel injection system: Ensure the order delivery rate and market share of common rail pumps; for VE pumps actively respond to the
T4 market competition pattern and deeply dig into the market increment; for GP electronic control products ensure the supply of
existing customers and obtain key projects of core customers; for high-pressure fuel rail of gasoline continue to explore new markets
and increase market share. Post-processing system: Accelerate the development of hybrid and high-end self-owned brand passenger
car market and seek new growth points; Steadily promote core customer projects in commercial vehicle market; Rapidly increase the
market shares of core customers in off-road T4 products. Air intake system: In aspect of gasoline supercharger fully expand the
hybrid passenger car market and promote the batch production of core customer projects; For the four-cylinder diesel supercharger
continue to obtain key projects of core customers and gradually increase the market share of each host customer; For the six-cylinder
diesel supercharger stabilize the existing customer share and ensure the batch production of new customer projects. Relying on the
national “the belt and road initiative” strategy consolidate and expand existing overseas markets and enhance international trade
business.Accelerate the acquisition of new business new customers and new projects and promote the cooperation of strategic partners in
new business areas. Actively explore the market of electric drive core parts products and achieve rapid growth in business volume;
For the thermal management system realize the batch supply of electronic oil pumps for leading enterprises of new energy vehicles.As to the “one membrane and two plates” products complete the first-phase production capacity construction completed realize
domestic supply of the catalyst membrane electrode and bipolar plate products in small batches in China and complete the
development of B sample development for battery cells. As to the hydrogen safety valves realize mass production complete the
development of sample C for tailgate valve and the high-voltage platforms and complete the development of sample B for low-
voltage platform of hydrogen circulating pump; Realize small batch production of 35MPa high-pressure hydrogen valves and
complete sample B development for 70MPa high-pressure hydrogen valves; Complete the development of sample B for core
components of air compressor and electric supercharger and complete the development of sample C for the electronic water pump
and electronic thermostat and realize supply in small batches. For self-made 100 kW PEM demonstration line of hydrogen
production from electrolyzed water complete the construction and put into operation. Complete C sample development and small
batch supply for in-cabin radars and realize small batch delivery for 4D imaging radar customer project.
3. Strengthen quality management and intelligent manufacturing and promote engineering construction and safety
guarantee
35无锡威孚高科技集团股份有限公司2022年年度报告全文
Improve the mechanism of developing quality valves and optimize the management of special characteristics. Deepen the vertical
deepening and horizontal broadening of Q11 quality basic criteria and improve the effectiveness of process total factor maturity
assessment and the coverage of core key processes. Consolidate the quality improvement project check the operation results link the
application of tools and methods and realize hierarchical frequency control. Focus on the main after-sales quality problems and zero-
kilometer customer complaints and cooperate with customers to analyze and improve the special system. Further promote lean
production management promote the optimization of bottleneck process rhythm optimize equipment management system and
improve equipment operation efficiency. Continuously improve the R&D and application capabilities of intelligent manufacturing
and accelerate the full implementation of the intelligent manufacturing blueprint; Improve the automation level of advanced
manufacturing processes and promote the construction of information platforms and explore intelligent technologies and big data
applications. Advance the R&D building project as planned and complete the preliminary design of the new energy industrial park;
Build an energy management platform and continue to promote energy-saving and environmental protection green office; Take
prevention management as the starting point and implement the responsibility of safety subject; Carry out the evaluation and
certification of the first-class enterprise of safety production standardization; Through the integration of environmental health and
safety information supervision platform and AI safety monitoring optimize and improve the visual management and control of safety.
4. Promote continuous improvement of management performance and reinforce strategic talent team building
Advance the research planning and implementation of the differentiated organization and control models deeply optimize the logical
alignment of business plans with strategies and budgets and continue to promote the application and expansion of process
mechanisms in procurement R&D and marketing domains with the support of process business platforms. Deepen the construction
of the park management committee by taking the service platform as a carrier. Establish a sharing platform for direct material
procurement systematically advance the unification and standardization of procurement business processes and information sharing
across the Group and enable integrated procurement supply chain management. Deepen the technology for cost reduction refine the
category management strategies integrate new business planning and launch new business supply chains in advance. Regularly
manage the inventory classification analysis alignment and disposal of slow-moving products. Make proper storage planning
refinement refine in batches according to multi-dimensional in conjunction with the own development needs of the division and
clarify the objectives. Promote the highly efficient operation of the trinity of risk control compliance internal audit as well as the
three risk prevention and control management mechanisms construct a special evaluation of major and important defects and a
mechanism to trace back the responsibility of risk control promote the implementation and continuous optimization of the contract
management system and improve the legal risk control of the investment and M&A projects of the Company. Accelerate talent
allocation and strengthen the layout of new strategic business talents with the aim of building a strategy-led talent team; Accomplish
talent allocation and personnel training for major strategic cooperation projects according to business demands; Optimize
construction of overall career development channels for employees and further promote piloting of talent sharing mechanism. Based
on the development of quality and ability of key positions continue to promote the construction of the “San Hang Yi Jiang” talent
development system; Explore international talent exchange training programs to satisfy the strategic development demands of
enterprises; Reinforce the innovation of talent mechanism and further explore the methods of business evaluation and incentive in
R&D field. Based on the human resources information system platform continue to explore the value of human resources data to
further promote management optimization and improve the efficiency of human resources services.(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
36无锡威孚高科技集团股份有限公司2022年年度报告全文
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
Main content talked
Reception Reception Reception Reception Reception Index of basic situation of
about and materials
time place mode object type Object research
provided
For details please
refer to the Record
Conference of Investor Relations
January 12 Institutional
room of the Telephoning Institution Activities disclosed http://www.cninfo.com.cn
2022 investor
Company by the Company on
Juchao Website (No.
2022-001)
For details please
refer to the Record
Conference of Investor Relations
January 13 Field Institutional room of the Institution Activities disclosed http://www.cninfo.com.cn
2022 research investor
Company by the Company on
Juchao Website (No.
2022-002)
For details please
refer to the Record
Conference of Investor Relations
January Institutional
room of the Telephoning Institution Activities disclosed http://www.cninfo.com.cn
20 2022 investor
Company by the Company on
Juchao Website (No.
2022-003)
For details please
Conference
February 9 Institutional refer to the Record
room of the Telephoning Institution http://www.cninfo.com.cn
2022 investor of Investor Relations
Company
Activities disclosed
37无锡威孚高科技集团股份有限公司2022年年度报告全文
by the Company on
Juchao Website (No.
2022-004)
For details please
refer to the Record
Conference of Investor Relations
April 19 Institutional
room of the Telephoning Institution Activities disclosed http://www.cninfo.com.cn
2022 investor
Company by the Company on
Juchao Website (No.
2022-005)
For details please
refer to the Record
of Investor Relations
May 11 WeChat
Other Other Other Activities disclosed http://www.cninfo.com.cn
2022 Applet
by the Company on
Juchao Website (No.
2022-006)
For details please
refer to the Record
Conference of Investor Relations
June 16 Institutional room of the Telephoning Institution Activities disclosed http://www.cninfo.com.cn
2022 investor
Company by the Company on
Juchao Website (No.
2022-007)
For details please
refer to the Record
Conference of Investor Relations
June 17 Institutional
room of the Telephoning Institution Activities disclosed http://www.cninfo.com.cn
2022 investor
Company by the Company on
Juchao Website (No.
2022-007)
For details please
refer to the Record
Conference of Investor Relations
August 23 Institutional
room of the Telephoning Institution Activities disclosed http://www.cninfo.com.cn
2022 investor
Company by the Company on
Juchao Website (No.
2022-008)
For details please
refer to the Record
Conference of Investor Relations
December Institutional room of the Telephoning Institution Activities disclosed http://www.cninfo.com.cn
28 2022 investor
Company by the Company on
Juchao Website (No.
2022-009)
For details please
refer to the Record
Conference of Investor Relations
December Institutional
room of the Telephoning Institution Activities disclosed http://www.cninfo.com.cn
30 2022 investor
Company by the Company on
Juchao Website (No.
2022-009)
January 1 Interactive
Basic company Answered 163 questions
to platform of Written
Other Other information and online through the interactive
December investor inquiry
view of the market platform for investor relations
31 2022 relationship
38无锡威孚高科技集团股份有限公司2022年年度报告全文
January 1
Basic company 532 telephone
to
Company tel. Telephoning Other Other information and communications with the
December
view of the market investors
312022
39无锡威孚高科技集团股份有限公司2022年年度报告全文
Section IV. Corporate Governance
I. Corporate governance of the Company
During the reporting period the Company earnestly implemented the Basic Internal Control Standards for
Enterprise and its guidance in strict accordance to the requirements of laws administrative regulations
department provisions and normative documents as Company Law Securities Law Code of 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.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.
40无锡威孚高科技集团股份有限公司2022年年度报告全文
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 2021 Internal Control Evaluation Report on
www.cninfo.com.cn which is the information disclosure website designated by Shenzhen Stock Exchange.Is there any difference between the actual condition of corporate governance and relevant regulations about
corporate governance for listed company from CSRC
□ Yes □No
There are no differences between the actual condition of corporate governance and relevant regulations about
corporate governance for listed company from CSRC.II. Independence of the Company relative to controlling shareholder and the actual controller
in ensuring the Company’s assets personnel finance organization and businesses
1. Business: the company has a complete independent research and development procurement production and
sales systems the main business does not have horizontal competition with the controlling shareholders. The
business is absolutely separated.
2. Personnel: the company has mutual independence with its controlling shareholders in labor personnel and
salary management; there is no mixed operation and management with the controlling shareholders. The
company’s general manager vice general manager financial administrator secretary of the board and senior
executives don’t hold any position in the shareholders’ units.
3. Assets: the company's assets are independent and complete the property relations with the controlling
shareholders are clear.
4. Organization: the company has established organization completely independent from its controlling
shareholders the duty and authority of the company’s 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
41无锡威孚高科技集团股份有限公司2022年年度报告全文
Ordinal number of Ratio of investor Date of
Type Date Resolution of meeting
meeting participation disclosure
Annual general meeting (Notice No.: 2022-036) published on
AGM 40.82% 2021-05-18 2022-05-19
of 2021 Juchao Website(www.cninfo.com.cn)
Extraord
1st extraordinary general inary (Notice No.: 2022-051) published on
40.90%2022-08-192022-08-20
meeting of 2022 general Juchao Website(www.cninfo.com.cn)
meeting
2. Request for extraordinary shareholders’ general meeting by preferred stockholders whose voting rights
restore
□ Applicable □Not applicable
V. Directors supervisors and senior officers
1. Basic information
Amount Amount Reasons
Start End Shares Shares
of shares of shares for
dated date held at Other held at
Working increased decreased increase
Name Title Gender Age of of period- changes period-
status in this in this or
office office begin (share) end
period period decrease
term term (Share) (Share)
(Share) (Share) of shares
Wang Currently 2020- 2024-
Chairman Male 56
Xiaodong in office 05-28 05-19 420781 420781
Kirsch Vice Currently 2021- 2024-
Male 61
Christoph Chairman in office 05-20 05-19
Vice
Xu Currently 2020- 2024-
Chairman Male 51
Yunfeng in office 05-28 05-19 363000 363000
GM
Director
Executive
Deputy
Ou Currently 2012- 2024-
General Male 56
Jianbin in office 03-07 05-19 290000 290000
Manager and
financing
Charger
Chen Currently 2012- 2024-
Director Male 61
Yudong in office 03-07 05-19
Zhao Currently Fe 2021- 2024-
Director 41
Hong in office male 05-20 05-19
Huang Currently 2021- 2024-
Director Male 38
Rui in office 05-20 05-19
Independent Currently Fe 2018- 2024-
Yu Xiaoli 59
Director in office male 06-27 05-19
Independent Currently 2021- 2024-
Xing Min Male 68
Director in office 05-20 05-19
Feng Independent Currently Fe 2021- 2024-
49
Kaiyan Director in office male 05-20 05-19
Pan Independent Currently 2021- 2024-
Male 51
Xinggao Director in office 05-20 05-19
Chairman of
Ma the Currently 2021- 2024-
Male 48
Yuzhou Supervisory in office 05-20 05-19
Committee
Currently 2020- 2024-
Chen Ran Supervisor Male 50
in office 05-28 05-19 1000 1000
Liu Currently Fe 2021- 2024-
Supervisor 37
Songxue in office male 05-20 05-19
Miao Currently 2003- 2024-
Deputy GM Male 59
Yuming in office 04-16 05-19 290000 290000
Currently 2020- 2024-
Xu Sheng Deputy GM Male 48
in office 05-28 05-19 280000 280000
Currently 2020- 2024-
Rong Bin Deputy GM Male 47
in office 05-28 05-19 280000 280000
Deputy GM Currently 2020- 2024-
Liu Jinjun Male 47
and in office 05-28 05-19 280000 280000
42无锡威孚高科技集团股份有限公司2022年年度报告全文
Secretary of
the Board
Chief Currently 2020- 2024-
Li Gang Male 52
engineer in office 05-28 05-19 280000 280000
Total -- -- -- -- -- -- 2484781 0 0 0 2484781 --
During the reporting period whether there was any departure of directors and supervisors and dismissal of Senior Executives
□Yes □No
Changes of directors supervisors and senior executives
□Applicable □ Not applicable
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.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. Ou Jianbin born in June 1966 Chinese nationality and no permanent residence abroad member of the CPC a
senior college graduated and an accountant. Previously served as Deputy Minister of Financial Department of
Weifu Company Director and deputy GM of subsidiary WFJN Deputy GM and GM of subsidiary WFLD and
supervisor of the Company. Currently he serves as director and standing deputy GM as well as chief of the
financial of the Company.Mr. Chen Yudong born in September 1961 an America citizenship and a Doctor. He previously served as senior
vice president of the gasoline system division of Robert Bosch Group executive vice president of Bosch (China)
43无锡威孚高科技集团股份有限公司2022年年度报告全文
Investment Ltd. Now he serves as President of Bosch (China) Investment Ltd. and Director of the Company.Ms. Zhao Hong born in September 1981 Chinese nationality and no permanent residence abroad member of the
CPC Bachelor’s degree an accountant. She worked as an account in Wuxi Tianyi Membrane Technology
Application Equipment Factory the project auditor of Wuxi Founder Taxation Firm the deputy director of audit
and inspection department director deputy secretary of discipline inspection commission secretary of director
bureau and chief of staff in Wuxi Industry Development Group Co. Ltd. Now she is the secretary to the BOD and
chief operating officer of Wuxi Industry Development Group Co. Ltd and the Director of the Company.Mr. Huang Rui born in December 1984 Chinese nationality and no permanent residence abroad member of the
CPC Master’s degree. He worked as the product manager of Shangde Power senior project manager of Wuxi
Merchants Bureau manager of the Ernst & Young Huaming CPA (Shanghai) deputy GM municipal environment
division of Wuxi Guolian Environmental Energy Group the vice president of investment development department
vice president of investment development department II (presiding over the work) vice president of investment
banking of Wuxi Industry Development Group Co. Ltd. Now he is the GM of investment banking department of
Wuxi Industry Development Group Co. Ltd and Director of the Company.Ms. Yu Xiaoli born in January 1963 Chinese nationality and no permanent residence abroad member of the CPC
Ph.D. a professor she has been teaching at Zhejiang University since 1985. She served as an independent director
of the sixth seventh and ninth of the Board of the Company and the dean of the engineering branch of Zhejiang
University City College. She is currently a professor at Zhejiang University and Doctoral supervisor the chairman
of the Society of Automotive Engineers of Zhejiang an director of Zhejiang Bozhong Automobile Technology
Co. Ltd. and independent director of Zhejiang Yinlun Co. Ltd an independent director of Zhejiang EVTECH
Co. Ltd.and independent director of Zhejiang Fenglong Electric Co. Ltd. and the independent director of the
Company.Mr. Xing Min born in January 1954 Chinese nationality and no permanent residence abroad member of the CPC
Bachelor’s degree a professor-level senior engineer. He worked as the secretary of the Party Committee of China
Heavy Machinery Corporation secretary of the Party Committee and GM of China Machine Tool Corporation.Now he is the executive vice president and secretary general of China Internal Combustion Engine Industry
Association Independent Director of Zhejiang Zhongjian Technology Co. Ltd Independent Director of Jiangsu
Yunyi Electric Co. Ltd. Independent Director of Changchai Company Limited Independent Director of Zhejiang
Xinchai Co. Ltd Director of Anhui Aikelan Environmental Protection Co. Ltd and Independent Director of the
Company.Ms. Feng Kaiyan born in October 1973 Chinese nationality and no permanent residence abroad member of the
CPC a Bachelor’s degree Certified Public Accountant and senior accountant. She worked as the accounting for
Wuxi Production Materials Corporation and Wuxi Geological & Mining Information Service Center. Currently
she is the chief accountant of Wuxi Donghua Accounting Firms Co. Ltd responsible person of the Sunan Branch
Jiangsu Fuhua Engineering Cost Consulting Co. Ltd the independent director of Wuxi Weifeng Technology Co.Ltd independent director of yuancheng Cable Co. Ltd independent director of Kangdexin Composite Material
Group Co. Ltd the external director of Wuxi Urban Construction Development Group Co. Ltd and independent
44无锡威孚高科技集团股份有限公司2022年年度报告全文
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 an engineer. She worked as the product testing engineer and product design engineer in
technical center of the Company. Currently she is the secretary general of the Science & Technology Association
of the Company and Supervisor of the Company.Mr. Miao Yuming born in April 1963 Chinese nationality and no permanent residence abroad member of the CPC
Master’s Degree and senior engineer. He previously served as deputy director and director of sales department and
assistant GM and deputy GM of the Company. Currently he serves as deputy GM of the Company and deputy GM of
RBCD.Mr. Xu Sheng born in March 1974 Chinese nationality and no permanent residence abroad member of the CPC
graduate degree holds a master’s degree and is an engineer. He once served as secretary of the party committee
of the company’s party committee work department deputy director of the office of the general manager of the
company deputy secretary of the party branch and deputy factory manager of the company’s injector parts branch
HSE manager of Bosch Automotive Diesel System Co. Ltd. senior manager of BPS director of MOE5 and
assistant general manager of the company. He is currently the deputy GM of the Company.Mr. Rong Bin born in December 1975 Chinese nationality and no permanent residence abroad member of the CPC
holds a bachelor's degree and is an assistant engineer. He joined the Company in July 1998 and worked as vice
45无锡威孚高科技集团股份有限公司2022年年度报告全文
plant manager of the company's plunger branch deputy manager of the common rail component company deputy
manager and manager of the first manufacturing department of the company's mechanical system business
department assistant to the general manager deputy general manager and general manager of the company's
mechanical system business department and general manager of the automotive diesel system division and
general manager of the mechanical system division. He currently serves as the deputy GM of the Company.Mr. Liu Jinjun born in September 1975 Chinese nationality and no permanent residence abroad member of the
CPC holds a bachelor’s degree and a master’s degree and is an engineer. He once served as the manager of the
personnel administration department and technical sales manager of Wuxi Weifu Automotive Diesel System Co.Ltd. the director of the company's human resources department supervisor of the seventh and eighth of the
Supervisory Committee of the Company head of the corporate strategy & new business department and head of
market development department of the Company. He is currently the deputy GM and secretary of the Board of the
Company.Mr. Li Gang born in November 1970 Chinese nationality and no permanent residence abroad member of the public
interest Party holds a bachelor’s degree and a master’s degree and a full senior engineer. He once served as the
product design engineer of the company's technology center the production supervisor of the production
department and the technical director of the technical sales department of Wuxi Weifu Automotive Diesel System
Co. Ltd. the deputy director of the company's technology center deputy dean of the company's engineering
technology research institute and the director of the technology center and the standing deputy director (deputy
chief engineer) of the company's technology center. He is currently the chief engineer of the Company.Post-holding in shareholder’s unit
□Applicable □ Not applicable
Received
End date
Start dated of remuneration from
Name Name of shareholding entity Position in shareholding entity of office
office term shareholding entity
term
(Y/N)
Kirsch
ROBERT BOSCH GMBH BMS 2023-04-01 Y
Christoph
Bosch (China) Investment
Chen Yudong President 2011-01-01 Y
Ltd.Wuxi Industry Development Secretary of director bureau chief
Zhao Hong 2021-04-19 Y
Group Co. Ltd. operating officer
Wuxi Industry Development
Huang Rui GM of Investment Banking Dept. 2021-05-01 Y
Group Co. Ltd.Robert Bosch Powertrain
Miao Yuming Deputy GM 2012-03-01 Y
Ltd.Post-holding in other unit
□Applicable □ Not applicable
Received
End date
Start dated of remuneration
Name Name of other entities Position in other entities of office
office term from other
term
entities (Y/N)
Yu Xiaoli Zhejiang University Teacher and professor 1985-08-01 Y
Society of Automotive Engineers of
Yu Xiaoli Director 2015-06-01 N
Zhejiang
Zhejiang Bozhong Automobile Technology
Yu Xiaoli Director 2008-04-01 N
Co. Ltd
Yu Xiaoli Zhejiang Fenglong Electric Co. Ltd. Independent Director 2016-04-01 Y
Yu Xiaoli Zhejiang EVTECH Co. Ltd Independent Director 2016-06-01 Y
Yu Xiaoli Zhejiang Yinlun Co. Ltd Independent Director 2020-08-06 Y
46无锡威孚高科技集团股份有限公司2022年年度报告全文
China Internal Combustion Engine Industry Executive vice president
Xing Min 2008-08-01 Y
Association and secretary general
2022-05-
Xing Min Jiangsu Yunyi Electric Co. Ltd Independent Director 2019-07-31 Y
30
2023-03-
Xing Min Zhejiang Zhongjian Technology Co. Ltd Independent Director 2017-06-20 Y
31
2022-09-
Xing Min Zhejiang Xinchai Co. Ltd Independent Director 2019-12-06 Y
22
Xing Min Changchai Company Limited Independent Director 2020-04-16 Y
Anhui Aikelan Environmental Protection
Xing Min Director 2021-11-22 Y
Co. Ltd
Feng
Wuxi Donghua Accounting Firms Co. Ltd Chief accountant 1998-10-01 Y
Kaiyan
Feng Jiangsu Fuhua Engineering Cost Consulting
Responsible person 2020-07-16 Y
Kaiyan Co. Ltd - Sunan Branch
Feng
Wuxi Weifeng Technology Co. Ltd Independent Director 2017-12-28 Y
Kaiyan
Feng
yuancheng Cable Co. Ltd. Independent Director 2019-11-22 Y
Kaiyan
Feng Kangdexin Composite Material Group Co.Independent Director 2020-08-26 Y
Kaiyan Ltd
Feng Wuxi Urban Construction Development
External Director 2021-12-31 Y
Kaiyan Group Co. Ltd
Pan
Beijing Tongshang Law Firm Lawyer/ Partner 2007-10-01 Y
Xinggao
Pan
Huarui Traffic Technology Co. Ltd Independent Director 2022-02-26 Y
Xinggao
Explanatio
n on post-
holding in The aforesaid are the independent directors of the Company
other
entities
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 reporting period
In ten thousand yuan
47无锡威孚高科技集团股份有限公司2022年年度报告全文
Post- Total remuneration Whether remuneration
Name Title Gender Age holding obtained from the obtained from related party
status Company (before taxes) of the Company (Y/N)
Wang Currently
Chairman Male 56 99 N
Xiaodong in office
Kirsch Currently
Vice Chairman Male 61 Y
Christoph in office
Xu Currently
Vice ChairmanGM Male 51 89 N
Yunfeng in office
Director Executive
Currently
Ou Jianbin Deputy General Manager Male 56 69 N
in office
and financing Charger
Chen Currently
Director Male 61 Y
Yudong in office
Currently
Zhao Hong Director Female 41 Y
in office
Currently
Huang Rui Director Male 38 Y
in office
Currently
Yu Xiaoli Independent Director Female 59 15 N
in office
Currently
Xing Min Independent Director Male 68 15 N
in office
Feng Currently
Independent Director Female 49 15 N
Kaiyan in office
Pan Currently
Independent Director Male 51 15 N
Xinggao in office
Chairman of the Currently
Ma Yuzhou Male 48 69 N
Supervisory Committee in office
Currently
Chen Ran Supervisor Male 50 59 N
in office
Liu Currently
Supervisor Female 37 18 N
Songxue in office
Miao Currently
Deputy GM Male 59 Y
Yuming in office
Currently
Xu Sheng Deputy GM Male 48 69 N
in office
Currently
Rong Bin Deputy GM Male 47 69 N
in office
Deputy GM Secretary of Currently
Liu Jinjun Male 47 69 N
the Board in office
Currently
Li Gang Chief engineer Male 52 69 N
in office
Total -- -- -- -- 739 --
VI. Responsibility performance of directors during the reporting period
1.Meetings held by BOD during the reporting period
Date of Disclosure
Meeting Meeting resolutions
meeting date
The Notice of the Resolution of 6th meeting of 10th session of the BOD
The 6th meeting of 10th
2022-01-07 2022-01-11 (Notice No.: 2022-001) published on Juchao Website
session of the BOD
(www.cninfo.com.cn)
The Notice of the Resolution of 7th meeting of 10th session of the BOD
The 7th meeting of 10th
2022-02-07 2022-02-09 (Notice No.: 2022-005) published on Juchao Website
session of the BOD
(www.cninfo.com.cn)
The Notice of the Resolution of 8th meeting of 10th session of the BOD
The 8th meeting of 10th
2022-04-15 2022-04-19 (Notice No.: 2022-008) published on Juchao Website
session of the BOD
(www.cninfo.com.cn)
The 9th meeting of 10th The Notice of the Resolution of 9th meeting of 10th session of the BOD
2022-04-25
session of the BOD (announcement-free according to relevant regulations)
48无锡威孚高科技集团股份有限公司2022年年度报告全文
The 10th meeting of The Notice of the Resolution of 10th meeting of 10th session of the BOD
10th session of the 2022-05-05 2022-05-07 (Notice No.: 2022-029) published on Juchao Website
BOD (www.cninfo.com.cn)
The 11th meeting of The Notice of the Resolution of 11th meeting of 10th session of the BOD
10th session of the 2022-07-29 2022-08-02 (Notice No.: 2022-045) published on Juchao Website
BOD (www.cninfo.com.cn)
The 12th meeting of
The Notice of the Resolution of 12th meeting of 10th session of the BOD
10th session of the 2022-08-19
(announcement-free according to relevant regulations)
BOD
The 13th meeting of
The Notice of the Resolution of 13th meeting of 10th session of the BOD
10th session of the 2022-10-21
(announcement-free according to relevant regulations)
BOD
The 14th meeting of The Notice of the Resolution of 14th meeting of 10th session of the BOD
10th session of the 2022-12-07 2022-12-09 (Notice No.: 2022-062) published on Juchao Website
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
Absent the
Board attending the Times of
Times of Meeting for
meeting Times of Board Times of attend the
Director entrusted the second
supposed to Presence Meeting by Absence general
presence time in a row
attend in the communicati meeting
(Y/N)
report period on
Wang
9 1 8 N 2
Xiaodong
Kirsch
9 0 9 N 0
Christoph
Xu Yunfeng 9 1 8 N 2
Ou Jianbin 9 1 8 N 2
Chen Yudong 9 0 9 N 0
Zhao Hong 9 1 8 N 2
Huang Rui 9 1 8 N 2
Yu Xiaoli 9 0 9 N 2
Xing Min 9 0 9 N 2
Feng Kaiyan 9 1 8 N 2
Pan Xinggao 9 0 9 N 2
Explanation of not attending the board meeting in person for two consecutive times: Nil
3. Objection for relevant events from directors
Directors come up with objection about Company’s relevant matters
□ Yes □ No
No directors come up with objection about Company’s relevant matters in the Period
4. Other explanation on responsibility performance of directors
The opinions from directors have been adopted
□ Yes □ No
Director’s statement to the Company that a proposal has been or has not been adopted
During the reporting period all the directors of the Company were diligent and conscientious carried out their work in strict
49无锡威孚高科技集团股份有限公司2022年年度报告全文
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
Specific
circumsta
Numb Other
Important nces of
er of perfor
Committe comments and the
Members meetin Date of Meeting content mance
e name suggestions
gs meeting of objection
made
held duties (if
applicable
)
The Strategy
Committee
Deliberation of the Proposal on verified and
Formulating a Strategic Plan for the deliberated on
2022- Development of Hydrogen Energy the matters
N/A N/A
01-07 Business and Establishing a strictly in
Wang
Hydrogen Energy Business terms of the
The 10th Xiaodong
Department Rules of Work
session of Kirsch
of Strategy
Strategy Christoph 2
Committee of
Committe Xu Yunfeng
the Board and
e Xing Min
relevant laws
Yu Xiaoli
and
Consideration of the Strategic
2022- regulations
Vision of the Company’s Future N/A N/A
04-15 relevant
Development
proposals are
unanimously
agreed.Consideration of the (1) Proposal The
Report on Remuneration Remuneration
Assessment for Senior Executives Committee
2022-
and Payout for year of 2021; (2) verified and N/A N/A
Proposal on Proposal on Purchasing deliberated on
Liability Insurance for Directors the matters
Supervisors and senior executives strictly in
The 10th terms of the
Consideration of the (1) Proposal
Session of Yu Xiaoli Rules of Work
on the Achievement of the
Remunera Feng of
2 Conditions for the First Release of
tion Kaiyan Remuneration
Restrictions on Sales in the
Committe Huang Rui Committee of
Incentive Plan for Restricted stock
e the Board and
in 2020;(2) Proposal on Adjustment
2022- relevant laws N/A N/A
of the Buy-back Price on Restricted
12-07 and
Stock Incentive Plan for year of
regulations
2020; and (3) Proposal on Buy-back
relevant
and Cancellation of the Restricted
proposals are
Stocks Partially Granted without
unanimously
Circulation for year of 2020
agreed.
50无锡威孚高科技集团股份有限公司2022年年度报告全文
Consideration of the (1) Annual
Report of 2021 (full-text) and
Summary of Annual Report 2021;
(2) Financial Report of 2021; (3)
Summary Report of Audit Work of
2021; (4) Assessment Report of
Internal Control of 2021
Audit
(5) the Proposal on Conducting
Committee
Bill Pool Business
verified and
(6) Proposal on Estimating the Total
2022- deliberated on
Amount of Routine Related the matters N/A N/A
Transactions in 2022 strictly in
The 10th (7) Proposal on Entrusted Wealth terms of the
Feng
session of Management with Idle Own-Funds Rules of Work
Kaiyan Pan of Audit
Audit 4 of the Company; (8) Proposal on
Xinggao Committee of
Committe Appointment of the Auditing
Zhao Hong the Board and
e Institution for 2022 Financial relevant laws
Report; and (9) Proposal on and
Appointment of Auditing Institution regulations
for 2022 Internal Control relevant
proposals are
Evaluation
unanimously
2022- Consideration of the First Quarter agreed. N/A N/A
04-25 Report of 2022
Consideration of the Semi-Annual
2022- Report of 2022 (full-text) and
N/A N/A
08-19 Summary of Semi-Annual Report
2022
2022- Consideration of the Third Quarter
N/A N/A
10-21 Report of 2022
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) 2681
The total number of current employees to receive pay (person) 3208
Retired employee’ s expenses borne by the parent Company and main
5889
subsidiaries (person)
The total number of current employees at year end (person) 5889
The total number of current employees to receive salaries (person) 0
Professional composition
Category of professional composition Number of professional composition(person)
Production personnel 3484
Sales personnel 169
Technical personnel 1413
Financial personnel 99
51无锡威孚高科技集团股份有限公司2022年年度报告全文
Administrative personnel 724
Total 5889
Education background
Category of education background Numbers(person)
Master degree and above 491
Undergraduate 1715
Junior college 1076
Other 2607
Total 5889
2. Remuneration policy
According to the talent concept of “Joint endeavour and fair sharing” the Company further improves the
performance management and salary management system strengthens the scientificity and pertinence of
performance goals and focuses on the Company’s strategy and business plan to give full play to the guiding and
promoting role of goals; further plays the role of incentive funds strengthens the promotion and incentive strength
of major innovation and development projects so as to promote the realization of the Company’s strategic goals.
3.Training plan
Taking “Building a Strategy-oriented Talent Team” as the objective the Company actively promotes the
development and construction of “San Hang Yi Jiang” talents and comprehensively enhances the competence of
employees as well as their business and technical capabilities. Establish a multi-channel training approach and
integrate online and offline training resources to expand training coverage; Design and implement training and
development plans for job requirements and enhance internal knowledge sharing; Further advance action-based
learning emphasize the transformation of training effects and promote the upgrading of the talent capabilities of
the Company.
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
□ 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 2021 based on the
shares which exclude the buy-back shares on buy-back account (2997277 A-stock) from total share capital
1008659570 shares distributed 16 yuan (tax included) cash dividend for every 10 shares held without
capitalization from capital reserves. The plan was completed in June 2022. The implementation of the Company’s
cash dividend policy is in compliance with the provisions of Articles of Association relevant decision-making
52无锡威孚高科技集团股份有限公司2022年年度报告全文
procedures are complete and fully listen to the views of independent directors and small & medium shareholders
and maintain the legitimate rights and interests of small & medium shareholders.Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article of Association (Y/N): Y
Well-defined and clearly dividend standards and proportion (Y/N): Y
Completed relevant decision-making process and mechanism (Y/N): Y
Independent directors perform duties completely and play a proper role (Y/N): Y
Small & medium shareholders have opportunity to express opinions and demands totally and their legal rights
Y
are fully protected (Y/N):
Condition and procedures are compliance and transparent while the cash dividend policy adjusted or changed
Not applicable
(Y/N):
The Company earnings during the reporting period and profit available for distribution to shareholders from parent company is
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
Bonus shares for every 10-share (Share) 0
Dividends for every 10-share (RMB) (Tax included) 1
Increase for every 10-share (Share)
Equity base of distribution plan (Share) 983173293
Total cash dividend (RMB) (Tax included) 98317329.30
Cash dividend by other ways (share buy-back included) (RMB) 397804542.63
Total cash dividend (other ways included) (RMB) 496121871.93
Profits available for distribution (RMB) 10765319818.29
Ratio of the total cash dividend (other ways included) in total profit distribution 100%
Cash dividend policy
Other
Detail explanation on profit distribution or capitalization from capital reserves
The company's 2022 annual profit distribution plan: based on the 983173293 shares which exclude the buy-back shares on buy-
back account (25000000 A-stock) from total share capital 1008950570 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 1.00 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 RMB 98317329.3 (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 2022
Annual General Meeting.
53无锡威孚高科技集团股份有限公司2022年年度报告全文
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 todeliberated and approved relevant proposals as the “Restricted Stock Incentive Plan 2020 (Draft) and itssummary” “Proposal on Assessment Management Measures for Restricted Stock Incentive Plan Implementation”and “Proposal to Request the Shareholders’ General Meeting to Authorized BOD to Fully Handle MattersRegarding Stock Incentive”.On November 12 2020 the Company held the 21st meeting of 9th session of the BOD as authorized by the secondextraordinary shareholders’ general meeting of 2020 deliberated and approved the “Proposal on Adjusting theList of Incentive Objects of the Restricted Stock Incentive Plan and the Number of Rights Granted” and the“Proposal on the First Grant of Restricted Stocks to Incentive Objects of the 2020 Restricted Stock IncentivePlan”. The BOD considers that conditions for the initial grant of 2020 restricted stock incentive plan have been
met and November 12 2020 is determine as the initial grant date 19540000 restricted shares are granted to 601
incentive recipients at a grant price of 15.48 yuan/Share.The Notice on Completion of the First Grant of 2020 Restricted Stock Incentive Plan was released by the
Company dated December 8 2020.On October 22 2021 the Company held the 5th 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
54无锡威孚高科技集团股份有限公司2022年年度报告全文
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.Equity incentive received by directors and senior executives
□ Applicable □ Not applicable
In share
Num
Num Exerc
ber
Num ber Num ise Num
Num Mark of
ber of ber price ber Gran
ber et new
of new of of the of t
of value Number restri
stock stock stock stock stock Number price Number
stock at of cted
optio optio exerc exerci optio of of of
exerc end restricted share
ns ns isabl sed ns shares restri restricted
ised of shares s
Name Title held grant e durin held unlocke cted shares
durin the held at grant
at ed durin g the at d during share held at
g the Perio beginning ed
begin durin g the report end the s end of the
repor d of the durin
ning g the repor ing of period (RM period
ting (RM period g the
of repor ting period the B/Sh
perio B/Sh repor
the ting perio (RMB perio are)
d are) ting
year perio d /Share d
perio
d )
d
Wang
Xiaodo Chairman 17.73 400000 160000 15.48 240000
ng
Xu Vice
Yunfen Chairman 17.73 350000 140000 15.48 210000
g GM
Director
executive
Ou vice
17.7328000011200015.48168000
Jianbin president
and head of
finance
Miao
Deputy GM 17.73 280000 112000 15.48 168000
Yuming
Xu
Deputy GM 17.73 280000 112000 15.48 168000
Sheng
Rong
Deputy GM 17.73 280000 112000 15.48 168000
Bin
Deputy GM
Liu
Secretary of 17.73 280000 112000 15.48 168000
Jinjun
the Board
Li Chief
17.7328000011200015.48168000
Gang engineer
Total -- 0 0 0 0 -- 0 -- 2430000 972000 0 -- 1458000
Assessment mechanism and incentive condition of the senior executives
Assessment and incentive of senior management of the Company is conducted pursuant to the Company Law
Articles of Association and the Annual Operating Results Assessment Measures of Senior Management and
Remuneration Management Rules of Senior Management as approved at the general meetings. Assessment of
operating results of senior management comprises of annual operating results assessment and term-of-service
operating results assessment. Assessment on results and procedure was combined and assessment results were
55无锡威孚高科技集团股份有限公司2022年年度报告全文
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.Whereas the Company implements the 2020 restricted stock incentive plan and the incentive targets overlap with
the long-term incentives for core talents the remuneration committee of the BOD proposes that the Company’s
2020 restricted stock incentive plan suspend the provision of incentive funds during the implementation period
and use for medium and long-term incentives for core talents.
2. Implementation of employee stock ownership plan
□Applicable □Not applicable
3. Other employee incentives
□Applicable □Not applicable
XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
This year the Company established the internal control system for the business and matters included in the scope
of evaluation in accordance with the requirements of the Basic Norms for Enterprise Internal Control and its
supporting guidelines and regularly improve and optimize the relevant system the company and the subordinate
companies are able to achieve the basic effective implementation of internal control system. In 2022 the wholly-
owned subsidiary WFTR may have been defrauded by the contract in the "platform trade" business. The public
security organs have filed a case as of the date of this report the case is still in the investigation stage.
2. Details of major defects in internal control identified during the reporting period
□Yes □ No
Potential Corrective
Specific impact of actions that Person
Defects Rectification Result of the
description of defects on have been or responsible for
happened time time rectification
the defect financial are to be the rectification
reporting implemented
When the The company The Company The company
transaction has recorded a has stopped the has set up a
2023 2023-4 WFTR
volume and credit execution of special working
transaction impairment loss contracts with group and
56无锡威孚高科技集团股份有限公司2022年年度报告全文
volume of the in its 2022 the parties concentrates on
contract annual report involved in the the disposal ofincreased “platform risk matterssignificantly trade” business
the company the security
failed to verify organs have
the authenticity launched a
of relevant criminal
agreements in a investigation on
timely and the case that
prudent WFTR was
manner and defrauded by
failed to judge contracts in its
the rationality "platform
of the end trade" business.customer's At present the
demand so as case is in the
to verify the investigation
end customer stage
The Company
has stopped the
execution of
contracts with
the parties
involved in the
Failed to“platformcarefully checktrade” business
whether there
the security The company
was real The company
organs have has set up a
physical has recorded a
launched a special working
movement of credit
2023 criminal 2023- WFTR group and
the "platform impairment loss
investigation on concentrates on
trade" business in its 2022
the case that the disposal of
without annual report
WFTR was risk matters
controlling the
defrauded by
trading
contracts in its
inventory
"platform
trade" business.At present the
case is in the
investigation
stage
When the The Company
"platform has stopped the
trade" business execution of
has a large contracts with
capital demand the parties
The company
it fails to The company involved in the
has set up aprudently check has recorded a “platformspecial workingthe credit status credit trade” business
2023 2023-4 WFTR group and
of the supplier impairment loss the security
concentrates on
and evaluate in its 2022 organs have
the disposal of
the annual report launched a
risk matters
performance criminal
ability of the investigation on
supplier and the case that
prudently check WFTR was
whether the defrauded by
57无锡威孚高科技集团股份有限公司2022年年度报告全文
upstream contracts in its
supplier and "platform
downstream trade" business.customer are At present the
controlled by case is in the
the same actual investigation
controller and stage
whether there is
a relationship
between them
and the
transaction
object
XIII. Management and controls on subsidiaries during the reporting period
Integration Problems encountered Countermeasures Resolution Follow-up
Name Integration plans
progress in integration taken progress resolution plan
Not
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
applicable
XIV. Internal control self-assessment report or internal control audit report
1. Self-assessment Report of Internal Control
Disclosure date of full internal control
2023-04-28
assessment report
For more details please refer to the Self-assessment Report of Internal Control for
Disclosure index of full internal control
2022 published on in Juchao Website (www.cninfo.com.cn) appointed by Shenzhen
assessment report
Stock Exchange
The ratio of the total assets of entities
included in the scope of assessment
accounting for the total assets on the 92.74%
company's consolidated financial
statements
The ratio of the operating income of
units included in the scope of assessment
accounting for the operating income on 97.98%
the company's consolidated financial
statements
Defects recognition criteria
Category Financial Reports Non-financial Reports
See details in (II) Basis for assessment of See details in (II) Basis for assessment of
internal controls and defect recognition internal controls and defect recognition
criteria of internal controls of III criteria of internal controls of III
Qualitative criteria Assessment of Internal Controls in 2022 Assessment of Internal Controls in 2022
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 28 2023. dated April 28 2023.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 2022 Assessment of Internal Controls in 2022
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 28 2023. dated April 28 2023.
58无锡威孚高科技集团股份有限公司2022年年度报告全文
Number of significant defects in
0
financial reports
Number of significant defects in non-
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
2022.
Disclosure details of audit report of internal control Disclosed
Disclosure date of audit report of internal control (full-text) 2023-04-18
For more details please refer to the Audit report of internal control
Index of audit report of internal control (full-text) for year of 2022 published on Juchao website (www.cninfo.com.cn)
appointed by Shenzhen Stock Exchange
Opinion type of auditing report of IC Unqualified opinion with highlighted paragraphs
Whether the non-financial report had major defects (Y/N) Y
Carried out modified opinion for internal control audit report from CPA
□Yes□ No
Users of internal control audit reports are reminded of the following:
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 investigation stage and the outcome of the case is uncertain in the future. The management of
WFHT has identified the internal control defects in the development of the "platform trade" business and included them in the
enterprise internal control evaluation report. This paragraph does not affect the audit opinion expressed regarding the effectiveness of
internal control over financial reporting.The internal control audit report issued by CPA has concerted opinion with self-evaluation report issued from the Board
□ Yes □ No
XV. Rectification of self-examination problems in special governance actions in listed
company
Nil
59无锡威孚高科技集团股份有限公司2022年年度报告全文
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
Administrative punishment for environmental problems during the reporting period
Policies and industry standards related to environmental protection
Wuxi Weifu High-Tech Group Co. Ltd. and its subsidiaries diligently fulfill environmental protection policies and guidelines at
all levels during production and operation strictly comply with related national environmental protection laws and regulations such
as Environmental Protection Law of the People's Republic of China Environmental Impact Assessment Law of the People's Republic
of China Air Pollution Prevention and Control Law of the People's Republic of China Water Pollution Prevention and Control Law
of the People's Republic of China Solid Waste Pollution Prevention and Control Law of the People's Republic of China Noise
Pollution Prevention and Control Law of the People's Republic of China Energy Conservation Law of the People's Republic of
China Cleaner Production Promotion Law of the People's Republic of China Environmental Protection Tax Law of the People's
Republic of China Measures for the Management of Hazardous Waste Transfer Regulations on Environmental Protection of
Construction Projects Regulations on the Administration of Emission Permits as well as related local environmental protection
management rules and regulations regularly collect newly promulgated laws and regulations on ecological and environmental
protection at all levels and perform compliance evaluation transformation by combining with production reality to ensure
compliance with the law at all times in the production and operation of the Company.In the process of production the Company has constructed comprehensive waste gas and waste water treatment facilities and
solid waste storage facilities in strict accordance with the requirements of related standards such as Standards for Comprehensive
Sewage Discharge Water Quality Standards for Sewage Discharge into Urban Sewers Comprehensive Emission Standards for Air
Pollutants and Pollution Control Standards for Hazardous Waste Storage and guaranteed stable operation in an effort to minimize
the negative impact of production and operation on the ecological environment.Administrative licenses for environmental protection
All the construction projects of 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 2022 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 2020 to
March 26 2023; 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
Main
Name of Standard
pollut
main Numb Distribu for Total
ants Exces
pollutan Emissi er of tion of Emission emission Total emissio
Company/Sub and sive
ts and on emissi emissio concentration/s of emissio ns
sidiary specifi emissi
specific mode on n trength pollutants ns approv
c on
pollutan outlets outlets implement ed
pollut
ts ed
ants
Chemic Dischar WFMS Chemical Wastewate Chemic Chemic
Water
al ged sewage oxygen r Quality al al
WFHT pollut 1 None
oxygen through dischar demand Standards oxygen oxygen
ant
demand the ge 97mg/l for demand demand
60无锡威孚高科技集团股份有限公司2022年年度报告全文
ammoni munici outlet ammonia Discharge 18.86 78 tons
a pal nitrogen to tons ammon
nitrogen sewage 11.1mg/l total Municipal ammon ia
total pipe phosphorus Sewers ia nitroge
nitrogen networ 0.15mg/l total (GB/T319 nitroge n 7.8
total k after nitrogen 62-2015) n 2.15 tons
nitrogen being 13.4mg/l and tons total
treated petroleum total phosph
petroleu by the 5.5mg/l phosph orus
m compa orus 0.52
ny's 0.03 tons
sewage tons total
treatme total nitroge
nt nitroge n 10.4
station n 2.61 tons
tons and
and petrole
petrole um
um 1.95
1.06 tons
tons
Chemic
Chemic
al
al
oxygen
oxygen
demand
demand
Dischar ≤8.924
1.893
ged tons
tons
through ammon
Chemic ammon
the Chemical ia
al ia
munici oxygen nitroge
oxygen Wastewate nitroge
pal demand n
demand r Quality n 0.265
sewage 135mg/l ≤0.682
ammoni Standards tons
pipe WFAC Ammonia tons
a for total
Water networ sewage nitrogen total
nitrogen Discharge nitroge
pollut k after 1 dischar 18.9mg/l total nitroge None
to n
ant being ge nitrogen 32.3 n
petroleu Municipal 0.453
treated outlet 5mg/l total ≤1.017
m total Sewers tons
by the phosphorus tons
nitrogen (GB/T319 0.027
compa 1.88mg/l total
and 62-2015) tons of
ny's petroleum phosph
petroleu total
sewage 3.2mg/l orus
m phosph
treatme ≤0.094
orus
nt tons
and
station and
0.045
petrole
tons of
um
petrole
≤0.410
um.tons
The
exhaust
There
air will
are 5
be
machini
dischar
ng
ged in
worksh Comprehe
an
ops 10 nsive
organiz
Non- heat Emission
Air ed way
methane treatme Standard 1.78 2.523
pollut after 17 2.14 mg/m3 None
hydroca nt of Air tons tons
ants being
rbon worksh Pollutants
treated
ops and (GB16297
by oil
4-1996)
mist
assembl
process
y
or and
worksh
absorbe
ops
d by
activate
61无锡威孚高科技集团股份有限公司2022年年度报告全文
d
carbon
The
exhaust
air will
be
dischar
ged in
an
organiz 2.32mg/m3 Integrated
ed way 1.75 Emission
Non-
Air after 4 in 101 mg/m3 Standard
methane 0.5706 1.152
pollut being 4 worksh 2.18 of Air None
hydroca tons tons
ants treated op mg/m3 Pollutants
rbon
by oil 1.49 (GB16297
mist mg/m3 -1996)
process
or and
absorbe
d by
activate
d
carbon
Dischar
ged in
an
organiz
Emission
ed way 1 heat
Standards 0.061 0.071
Air after treatme
Ammon 1.2 for Odor tons of tons of
pollut being 1 nt None
ia gas mg/m3 Pollutants ammon ammon
ants absorbe worksh
(GB14554 ia gas ia gas
d by op
-93)
ammon
ia
spray
tower
Organi Comprehe
zed nsive
2 heat
dischar Emission
Air treatme
ge after 1.64mg/m3; Standard 0.0118 0.048
pollut Particles 2 nt None
bag 1.84 mg/m3 of Air tons tons
ants worksh
dust- Pollutants
ops
cleanin (GB16297
g. -1996)
Hazardo
us
wastes
such as
waste
oil
waste
emulsio
Entrust
n
a
cleaning
legally
waste Not Not
Solid qualifie Not 1255.6 1757.5
liquid applic applica Not applicable None
waste d unit applicable tons tons
grinding able ble
for
wheel
disposa
ash
l.sewage
pretreat
ment
sludge
and oil-
containi
ng filter
element
62无锡威孚高科技集团股份有限公司2022年年度报告全文
s
Chemic
Chemic al
al oxygen
oxygen demand
demand is
is 3.015 35.018
Dischar
tons tons
ged
Chemic Chemical suspen suspen
through
al oxygen ded ded
the
oxygen demand matter matter
munici
demand 36mg/L Wastewate is 0.921 is
pal
ammoni suspended r Quality tons 26.263
sewage
a matter Standards ammon tons
pipe
nitrogen Sewage 11mg/L for ia ammon
Water networ
total dischar ammonia Discharge nitroge ia
WFCA pollut k after 1 None
phospho ge nitrogen to n is nitroge
ant being
rus outlet 1.57mg/L Municipal 0.1315 n is
treated
total total Sewers tons 2.626
by the
nitrogen phosphorus (GB/T319 total tons
compa
0.054mg/L 62-2015) phosph total
ny's
suspend and total orus is phosph
sewage
ed nitrogen 5.01 0.0045 orus is
treatme
solids mg/L tons 0.438
nt
and tons
station
total and
nitroge total
n is nitroge
0.42 n is
tons 3.502
tons
Chemic
Dischar
al
ged
oxygen
through
demand
the
6.1
munici Chemical
Wastewate tons
pal oxygen
Chemic r Quality ammon
sewage demand
al Standards ia
pipe 72mg/L
oxygen Sewage for nitroge
Water networ Ammonia Not
demand dischar Discharge n 1 ton
pollut k after 1 nitrogen 13mg applica None
and ge to total
ant being total ble
ammoni outlet Municipal phosph
treated phosphorus
a Sewers orus
by the 0.38 mg/L and
nitrogen (GB/T319 0.03
compa petroleum 0.48
62-2015) ton
ny's mg/L
and
sewage
petrole
Nanjing treatme
um
Weifu Jinning nt
0.04
Co. Ltd. station
ton
Hazardo
us
wastes
such as
waste
Entrust
oil oily
a
sludge
qualifie Not Not Not
Solid grinding Not
d unit applic applica Not applicable 292t applica None
waste wheel applicable
for able ble ble
ash
disposa
empty
l.barrels
activate
d carbon
and
filter
63无锡威孚高科技集团股份有限公司2022年年度报告全文
element
s.Treatment of pollutants
Wuxi Weifu High-Tech Group Co. Ltd. mainly focuses on mechanical processing and mainly produces oil mist exhaust gas
(non-methane total hydrocarbon) from metal processing. And the oil mist exhaust gas produced by Workshop 101 will be treated by
high-efficiency oil mist purifier and then discharged through four 15m-high exhaust funnels. The oil mist waste gas generated by MS
machining workshop will be treated by high-efficiency oil mist purifier and then discharged through four 15m-high exhaust funnels;
The cleaning waste gas (non-methane total hydrocarbons) will be treated by high-efficiency oil mist purifier and activated carbon
adsorption device and then discharged through two 15m-high exhaust funnels; The quenching waste gas (non-methane total
hydrocarbons) will be treated by high-efficiency oil mist purifier and then charged up to standard via three 15m-high exhaust funnels;
The test waste gas (non-methane total hydrocarbons) will be treated by high-efficiency oil mist purifier and then charged up to
standard via a 15m-high exhaust funnel; The shot blasting waste gas (particulate matter) is treated by bag filter and then discharged
through two 15m-high exhaust funnels. The waste gas (ammonia methanol non-methane total hydrocarbons) produced by
carbonitriding process will be treated by acid spray tower and then discharged through a 15m-high exhaust funnel. The carburized
waste gas (non-methane total hydrocarbon) will be treated by fire curtain combustion+activated carbon adsorption device and then
discharged up to the standard through six 15m-high exhaust funnels. The rest of the waste gas will be discharged up to the standard in
the workshop. The Company has built two sewage treatment stations with the designed treatment capacity of 1600m3/d and 150 m3/d
in WFMS and WFAC factories. After being adjusted in the air flotation tank the production wastewater then 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.Wuxi Weifu Chang’an Co. Ltd. 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.Nanjing Weifu Jinning Co. Ltd. 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.Environmental self-monitoring program
During the reporting period the Company and its subsidiaries have compiled the Environmental Self-monitoring Plan for 2022
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
64无锡威孚高科技集团股份有限公司2022年年度报告全文
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.The investment in environmental governance and protection and the relevant situation of paying environmental protection
tax
Wuxi Weifu High-Tech Group Co. Ltd. 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 Wuxi Weifu High-Tech Group Co. Ltd. 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
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
None
Other information about the environment that shall be disclosed.During the reporting period the Company and its subsidiaries have regularly filled in the implementation reports (quarterly
reports and annual reports) of pollutant discharge permits in accordance with national and local laws and regulations. All air
pollutants and water pollutants have been released in accordance with the standards and hazardous wastes have been disposed of by
qualified units and the transfer slip system has been strictly implemented.Other environmental information
Not applicable
II. Social responsibility
For details please refer to the Social Responsibility Report for Year of 2022 released by the Company on the same day on Juchao
Website (www.cninfo.com.cn)
65无锡威孚高科技集团股份有限公司2022年年度报告全文
III. Consolidating and expanding the achievements of poverty alleviation and rural
revitalization
During the reporting period the Company has actively fulfilled its social responsibilities demonstrated its commitment to the
times established a favorable corporate image and made positive contributions to the promotion of sustainable and high-quality
economic and social development.In the initiative of “Ten Thousand Enterprises Linked with Ten Thousand Villages to Jointly Take the Road of Revitalization”
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. The Party Committee of the Company signed an alliance with the Party
Branch of the Baita Village of Yixing Xizhu Town to deepen the connotation of cooperation extend the results of cooperation and
realize mutual benefits. The Company has integrated the visit and study of the Party backbone and the team culture building of the
employees with the development and revitalization of Baita Village and has organized two batches of the Party members and
employees to visit Baita Village for team culture building activities.
66无锡威孚高科技集团股份有限公司2022年年度报告全文
Section VI. Important Matters
I. Implementation of undertakings
1. Undertakings that the actual controller shareholders related party buyers and the Company have
fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
□ Applicable □ Not applicable
No undertakings that the actual controller shareholders related party buyers and the Company have fulfilled during the reporting
period and have not yet fulfilled by the end of the period
2. For assets or projects of the Company which keeps profitable forecast during the reporting period
description reasons for reaching the original profitable forecast
□ Applicable □Not applicable
II. Occupation of the non-operational funds of the listed company by controlling shareholders
and its related party
□ Applicable □ Not applicable
No non-operational funds of the listed company have been occupied by the controlling shareholders and its related party in period.III. External guarantee out of the regulations
□ Applicable □ Not applicable
No external guarantee out of the regulations occurred in the period.IV. Statement on the latest “modified audit report” by BOD
□ Applicable □ Not applicable
V. Explanation from Board of Directors Supervisory Committee and Independent Directors
(if applicable) for “Qualified Opinion” that issued by CPA
□ Applicable □ Not applicable
VI. Explanation of the changes in accounting polices accounting estimates or correction of
significant accounting errors compared with the financial report of the previous year
□ Applicable □ Not applicable
Interpretation No. 15 of the Accounting Standards and Interpretation No. 16 of the Accounting Standards: On December 30
2021 the Ministry of Finance issued the Accounting Standards Interpretation No. 15 for Business Enterprises (Cai Kuai [2021] No.
35) which stipulates the accounting treatment and presentation of products or by-products generated by fixed assets before reaching
67无锡威孚高科技集团股份有限公司2022年年度报告全文
their intended usable state or during the research and development process and that the net amount of revenue related to trialoperation sales should not be offset against fixed asset costs or research and development expenses. It is clarified that the “cost offulfilling the contract” considered by enterprises when determining whether the contract constitutes a loss contract should include
both the incremental cost of fulfilling the contract and the allocation amount of other costs directly related to fulfilling the contract.This regulation will come into effect from January 1 2022. On November 30 2022 the Ministry of Finance issued the Accounting
Standards Interpretation No. 16 for Business Enterprises (Cai Kuai [2022] No. 31) stipulating that for financial instruments
classified as equity instruments by enterprises if relevant dividend expenditures are deducted before corporate income tax in
accordance with relevant tax policies the income tax impact related to dividends should be recognized when determining the payable
dividends and in accordance with the accounting treatment adopted in transactions or events that generate distributable profits in the
past the impact of dividend income tax is recorded in the current period’s profit and loss or owner’s equity (including other
comprehensive income items) clarifying the terms and conditions of the enterprise's modification of cash settled share-based
payment agreements to become equity settled share-based payments. On the modification date (whether occurring during the waiting
period or after the end) equity settled share-based payments should be measured at the fair value on the date of modification of the
granted equity instrument and the services obtained should be included in the capital reserve. At the same time the recognition of
cash settled share-based payments as recognized liabilities on the modification date should be terminated and the difference betweenthe two should be included in the current profit and loss. For specific details please refer to “Note V-37. Changes in SignificantAccounting Policies and Accounting Estimates” in Section 10 of the Financial Report.VII. Comparing with last year’s financial report explain changes in the scope of consolidated
statement
□Applicable □ Not applicable
Changes in the
Name of Contribution
scope of Acquisition manner of equity
enterprise ratio
consolidation
Jointly funded and established by the Company with its wholly-owned subsidiaries
Increase in IRD FUEL CELLS A/S BORIT NV as well as ROBERT BOSCH
WFQL 75.00%
consolidation scope INTERNATIONALE BETEILIGUNGEN AG and Wuxi High-Tech Zone New
Dynamic Industrial Development Fund (Limited Partnership)
Increase in A wholly-owned subsidiary purchased by the Company through SPV in cash in the
VHIT 100.00%
consolidation scope current period
Increase in
VHCN Wholly owned subsidiary purchased in cash by the Company in the current period 100.00%
consolidation scope
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 of domestic accounting firms (in ten thousand yuan) 193
Continuous life of auditing service for domestic accounting firm 30
Name of domestic CPA Gu Zhi Zhang Qianqian
Continuous life of auditing service for domestic accounting firm Gu Zhi (2 year) Zhang Qianqian (3 year)
Re-appointed accounting firms in this period
□Yes □No
Appointment of internal control auditing accounting firm financial consultant or sponsor
□ Applicable □ Not applicable
Being deliberated in Annual Shareholders General Meeting of 2021 Gongzheng Tianye was appointed as audit accounting firm for
68无锡威孚高科技集团股份有限公司2022年年度报告全文
internal control of the Company for year of 2022. In the Period auditing charge for internal control amounting to 250000 yuan.IX. Particular about delisting after annual report disclosed
□ Applicable □ Not applicable
X. Bankruptcy reorganization
□ Applicable □Not applicable
No bankruptcy reorganization for the Company in reporting period
XI. Major litigation and arbitration
□Applicable □ Not applicable
Amoun
Trial
t
Whether Results Judgment
Related Progress of
Basic Situation of Formed and Effects Implementati
to the Litigation Disclosu Disclosure
Litigation Accrued of on of
Case (Arbitration re Date Index
(Arbitration) Liabiliti Litigation Litigation
(in ten )
es (Arbitratio (Arbitration)
thousan
n)
d yuan)
The
On March 6 2017
plaintiff
the company Cinda
received the civil Company
ruling applied to
No.(2016)Y03MC2 Shenzhen
490 and No.(2016) Intermediat
e People’s
Y03MC2492 from
Court for
Shenzhen withdrawal
Intermediate of the
People's Court about lawsuit on
the dispute case that Dec. 6
the plaintiff 2022. On This
Dec. 8 the
applicant China litigation
Shenzhen
Cinda Asset Intermediat will not
Management Co. e People’s affect the (Notice No.:2022-
Ltd. Shenzhen Court company’s Have been Dec. 28 073)published on Juchao
21703 No
Branch (hereinafter issued two daily enforced 2022 Website(www.cninfo.comreferred to as “Cinda civil rulings operating .cn)
(2022) YueCompany”) activities
Min Chu
appealed the No. 4298 for the
respondent WFHT and 4300 time being
and other seven allowing
respondents and the the
shareholders of the plaintiff
Cinda
third party Hejun
Company
Company damaged
to withdraw
the interests of the lawsuit.corporate creditors After
which adopted the confirmatio
mandatory measures n the 4.71
to freeze the assets million
shares and
with value of 217
fruits of
69无锡威孚高科技集团股份有限公司2022年年度报告全文
million yuan under Miracle
the name of the Automation
held by the
Company and other
Company
seven respondents as well as
and Hejun the
Company. Froze 11739102
4.71 million shares shares and
of Miracle fruits of
SDEC
Automation and
(now
15.3 million shares
renamed
of SDEC(now into
renamed into SNAT) held
SNAT) held by the by the
Company. company
were
unfrozen on
Dec. 26
2022 and
are
currently in
a tradable
state.The
Company
has applied
to Futian
People’s
Court of
Shenzhen
for
compulsory
liquidation
with Hejun
Company.The civil
ruling
paper (Yue
The Company has (0304) QS There is no Shenzhen
applied to Futian [2017] No. impact on Intermediate (Semi-annual report 2022
People’s Court of 5) made by daily Court full text) published on
Aug. 23
Shenzhen for 3300 No Shenzhen operation declared the Wuchao
2022
compulsory Futian activities bankruptcy of Website(www.cninfo.com
liquidation with District of the Hejun .cn)
Hejun Company People’s Company Company
Court ruled
that Hejun
Company
should be
made
compulsory
liquidation.In process
of the case
the
liquidation
team found
that Hejun
Company
was
70无锡威孚高科技集团股份有限公司2022年年度报告全文
insolvent
and turned
to the
Shenzhen
Intermediat
e Court to
apply for
bankruptcy.The
Company
has
received a
Civil
Ruling
Letter from
Shenzhen
Intermediat
e Court.Hejun
Company
declared to
bankruptcy
and
terminated
the
bankruptcy
proceeding
s for Hejun
Company.XII. Penalty and rectification
□ Applicable □ Not applicable
No penalty and rectification for the Company during the reporting period.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
Relate Whet
Tradi
d her
ng Cleari
party over Avail
Conten Relate limit ng
transa Propor the able Dat
Type of t of Prici d appro form Index
Relate ction tion in appro simil e of
Relatio related related ng party ved for of
d amoun similar ved ar disc
nship transact party princ transa (in relate disclo
party t (in transac limit mark los
ion transact iple ction 10 d sure
10 tions ed or et ure
ion price thous transa
thousa not price
and ction
nd (Y/N
yuan)
yuan) )
71无锡威孚高科技集团股份有限公司2022年年度报告全文
Procure Procure
Fair Accor Apr
Associ ment of ment of Notice
mark ding Mark .WFP ated goods goods Marke 5277. No.:2
et 0.46% 4000 Y to the et 19
M enterpr and and t price 57 022-
prici contra price 202
ise service service 012
ng ct 2
s s
Associ
ated
enterpr Procure Procure
Fair Accor Apr
ise ment of ment of Notice
mark ding Mark .control goods goods Marke 30107 4500 No.:2
RBCD et 2.63% N to the et 19
ling and and t price .73 0 022-
prici contra price 202
subsidi service service 012
ng ct 2
ary of s s
Robert
Bosch
Fair Accor Apr
Joint Notice
Procure Procure mark ding Mark .venture Marke 57537 7000 No.:2
WFEC ment of ment of et 5.03% N to the et 19
of t price .83 0 022-
goods goods prici contra price 202
WFLD 012
ng ct 2
Second
Procure Procure
largest Fair Accor Apr
Robert ment of ment of Notice
shareh mark ding Mark .Bosch goods goods Marke 23216 3000 No.:2
older et 2.03% N to the et 19
Comp and and t price .38 0 022-
of the prici contra price 202
any service service 012
Compa ng ct 2
s s
ny
Fair Accor Apr
Chang Joint Notice
Procure Procure mark ding Mark .chun venture Marke No.:2
ment of ment of et 34.25 0.00% 150 N to the et 19
Xuyan of t price 022-
goods goods prici contra price 202
g WFLD 012
ng ct 2
Holdin
g Procure Procure
Fair Accor
subsidi ment of ment of
Guoka mark ding Mark
ary of goods goods Marke 1451.i et 0.13% 0 Y to the et
Wuxi and and t price 64
Metal prici contra price
Industr service service
ng ct
y s s
Group
Sales Sales
Fair Accor Apr
Associ of of Notice
mark ding Mark .WFP ated goods goods Marke No.:2
et 98.09 0.01% 1000 N to the et 19
M enterpr and and t price 022-
prici contra price 202
ise service service 012
ng ct 2
s s
Associ
ated
enterpr Sales Sales
Fair Accor Apr
ise of of Notice
mark ding Mark .control goods goods Marke 22203 17.44 3500 No.:2
RBCD et N to the et 19
ling and and t price 4.55 % 00 022-
prici contra price 202
subsidi service service 012
ng ct 2
ary of s s
Robert
Bosch
Sales Sales
JOINT Fair Accor Apr
of of Notice
VENT mark ding Mark .goods goods Marke No.:2
WFEC URE et 94.45 0.01% 700 N to the et 19
and and t price 022-
OF prici contra price 202
service service 012
WFLD ng ct 2
s s
Robert Second Sales Sales Fair Accor Apr Notice
Mark
Bosch largest of of mark Marke 14754 11.59 1800 ding . No.:2
N et
Comp shareh goods goods et t price 5.82 % 00 to the 19 022-
price
any older and and prici contra 202 012
72无锡威孚高科技集团股份有限公司2022年年度报告全文
of the service service ng ct 2
Compa s s
ny
Fair Accor Apr
Chang Joint Notice
Sales Sales mark ding Mark .chun venture Marke No.:2
of of et 28.6 0.00% 500 N to the et 19
Xuyan of t price 022-
goods goods prici contra price 202
g WFLD 012
ng ct 2
Procure Procure
Fair Accor
Associ ment of ment of
mark ding Mark
WFP ated goods goods Marke
et 5 0 Y to the et
M enterpr and and t price
prici contra price
ise service service
ng ct
s s
Associ
ated
enterpr Payabl
Fair Accor Apr
ise e Notice
mark ding Mark .control technic Marke No.:2
RBCD Other et 0 50 N to the et 19
ling al t price 022-
prici contra price 202
subsidi service 012
ng ct 2
ary of fees
Robert
Bosch
Associ
ated
Payme
enterpr
nt of Fair Accor Apr
ise Notice
technic mark ding Mark .control Marke No.:2
RBCD Other al et 114.73 150 N to the et 19
ling t price 022-
commi prici contra price 202
subsidi 012
ssion ng ct 2
ary of
fee etc.Robert
Bosch
Associ
ated
enterpr
Fair Accor Apr
ise Procure Notice
mark ding Mark .control ment of Marke No.:2
RBCD Other et 450.35 250 Y to the et 19
ling fixed t price 022-
prici contra price 202
subsidi assets 012
ng ct 2
ary of
Robert
Bosch
Associ
ated
enterpr
Provide Fair Accor
ise
technic mark ding Mark
control Marke
RBCD Other ala et 205.3 0 Y to the et
ling t price
service prici contra price
subsidi
etc. ng ct
ary of
Robert
Bosch
Second Payme
largest nt of Fair Accor Apr
Robert Notice
shareh technic mark ding Mark .Bosch Marke No.:2
older Other al et 231.68 100 Y to the et 19
Comp t price 022-
of the commi prici contra price 202
any 012
Compa ssion ng ct 2
ny fee etc.Second
Fair Accor Apr
Robert largest Procure Notice
mark ding Mark .Bosch shareh ment of Marke 4906. No.:2
Other et 2800 Y to the et 19
Comp older fixed t price 12 022-
prici contra price 202
any of the assets 012
ng ct 2
Compa
73无锡威孚高科技集团股份有限公司2022年年度报告全文
ny
Joint Techni
Fair Accor Apr
venture cal Notice
mark ding Mark .of service Marke No.:2
WFEC Other et 10.21 50 N to the et 19 WFLD fees t price 022-
prici contra price 202
payable 012
ng ct 2
etc.Joint Provide Fair Accor Apr
Notice
venture technic mark ding Mark .Marke No.:2
WFEC of Other al et 4.22 150 N to the et 19
t price 022-
WFLD service prici contra price 202
012
s etc. ng ct 2
Joint Fair Accor Apr
Rental Notice
venture mark ding Mark .fees Marke No.:2
WFEC of Other et 238.08 300 N to the et 19
receiva t price 022-WFLD prici contra price 202
ble 012
ng ct 2
Utilitie
s
Fair Accor Apr
Joint payable Notice
mark ding Mark .venture -water Marke No.:2
WFEC Other et 118.78 200 N to the et 19
of electric t price 022-
prici contra price 202
WFLD ity 012
ng ct 2
power
and gas
Enterpr
ise Purcha
Fair Accor
Urban control se
mark ding Mark
public led by canteen Marke
Other et 139.25 0 Y to the et
distrib the ingredi t price
prici contra price
ution parent ents
ng ct
Compa etc
ny
493856854
Total -- -- -- -- -- -- --
0.6300
Detail of sales return with major
Not applicable
amount involved
Being deliberated and approved by AGM of 2021 total related party transaction
involved with daily operation for year of 2022 was predicted as 7045 million yuan and
actually 4938.5063 million yuan occurred in the Period. The related transactions
Report the actual implementation of
classified according to types are as: 1. It estimated that procurement of goods and labor
the day-to-day related transactions
service from related party in 2022 will up to 1491.50 million yuan while 1176.254
which were projected about their total
million yuan occurred actually in the Period; 2. It estimated that sales of goods and
amount by types during the reporting
labor service to related party in 2022 will up to 5522 million yuan while 3698.02
period (if applicable)
million yuan actually occurred. 3. It estimated that other related transactions with
related party for year of 2022 will up to 40.50 million yuan while 64.24 million yuan
actually occurred.Reasons for major differences between
trading price and market reference Not applicable
price (if applicable)
74无锡威孚高科技集团股份有限公司2022年年度报告全文
Explanation: In addition to the above related transactions because that WFTR developed the "platform trade" business with its
related direct customer Company A (Because it is still in the investigation stage of the public security organs for the sake of case
confidentiality temporarily use “Company A” to indicate). After verification it is found that the four companies that carry out
"platform trade" business with WDTR may be controlled by Company A. Based on the association relationship between Weifu
High-tech and Company A these four companies constitute related parties of the company. Based on the principle of caution the
balance of the four companies that may be controlled by Company A is combined and listed in Company A. The aforementioned
balance is the difference between the "purchase fund" paid by the “platform trade” business and the "sales fund" received.According to relevant information the balance has been paid to the upstream suppliers (not related party) by the four companies. In
accordance with the principle of substance over form the "platform trade" business of WFTR is not treated as normal trade business
but as fund receipt and payment which is listed as “other receivables”.
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
Recover
Non- Beginni
Added able Current Ending
Related business ng
Related Reaso Balance Amount Interest Balance
Connectio Capital Balance RateParty n （10K （10K （10K （10Kn Occupie （10Kyuan） yuan） yuan） yuan）d yuan）
）
Company
director/se
Platfo
Compan nior 241515. 241515.rm Y
y A managers’ 19 19
trade
family
controlled
The financial and
Impact on the company's operating costs and financial conditions can be found in the "other
operating influence of
receivables" platform trade "business form expected credit losses within
Related Liability
Other explaination: Based on the principle of caution the Company combines the balance of 4 companies that
may be controlled by Company A into the following list. The balance is the difference between the "purchase
fund" paid by WFTR based on the "platform trade" business and the "sales fund" received by WFTR. In
accordance with the principle of substance over form the company does not treat the "platform trade" business of
WFTR as normal trade business but as fund collection and payment business for accounting treatment so it is
listed as other receivables.
75无锡威孚高科技集团股份有限公司2022年年度报告全文
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
On January 7 2022 the Company held the 6th meeting of 10th session of the BOD to deliberated and approved the Proposal on
Establishment of a Joint Venture Company for Hydrogen Fuel Cell Parts and Related Transactions. The joint venture completed the
industrial & commercial registration procedures on June 30 2022 and obtained the Business License issued by Market Supervision
Administration of Wuxi National High-tech Industrial Development Zone (Xinwu District of Wuxi).On February 7 2022 the Company held the 7th meeting of 10th session of the BOD to deliberated and approved the Proposal on
Acquisition of Equity and Related Transactions. In December 2022 the company paid the consideration completed equity delivery
of equity transactions the industrial and commercial change and filing procedures for VHIT and VHCN respectively.On May 5 2022 the Company held the 10th meeting of 10th session of the BOD to deliberated and approved the Proposal to Increase
Capital in a Participating Company and Related Transaction. The participating company Xichan Weixin completed the industrial &
commercial registration procedures on June 29 2022 and obtained the new Business License.On July 29 2022 the Company held the 11th meeting of the 10th session of the BOD and approved the Proposal on Establishing a
Joint Venture and Related Party Transactions through Strategic Cooperation with Bosch Rexroth. On December 8 2022 the joint
venture company completed the industrial and commercial registration procedures and obtained the business license.Inquiries of related website with extraordinary report disclosed with material related transaction concerned
Disclosure
extraordinary report Website for disclosure
date
Announcement on Establishment of a Joint Venture Company for
2022-01-11 Juchao Website(http://www.cninfo.com.cn)
Hydrogen Fuel Cell Parts and Related Transactions
Announcement on Acquisition of Equity and Related Transactions 2022-02-09 Juchao Website(http://www.cninfo.com.cn)
Announcement on Increasing Capital in a Participating Company
2022-05-07 Juchao Website(http://www.cninfo.com.cn)
and Related Transaction.Announcement on Establishing a Joint Venture and Related Party
2022-08-02 Juchao Website(http://www.cninfo.com.cn)
Transactions through Strategic Cooperation with Bosch Rexroth
XV. Significant contract and implementations
1. Trusteeship contract and leasing
(1) Trusteeship
□ Applicable □ Not applicable
76无锡威孚高科技集团股份有限公司2022年年度报告全文
No trusteeship occurred during the reporting period
(2) Contracting
□ Applicable □ Not applicable
No contract occurred during the reporting period
(3) Leasing
□ Applicable □ Not applicable
No leasing occurred during the reporting period
2. Material guarantees
□ Applicable □ Not applicable
In ten thousand yuan
The Company’ guarantee towards subsidiaries
Disclosur
e date of
Guarant
announce Guara Actual Count
Name of Actual Fulfill eed by
ment nteed guarante Guarant Collat er
guarante occurrin Guarantee period ed or related
related to amoun ed ee type eral Guara
ed object g date not parties
the t amount ntee
or not
guarantee
d amount
From the date of
execution of the
main contract up to
and including two
VHIT
years from the date
Automot Joint
Decemb of expiry of the
ive December liability
1000 er 12 1000 None None performance period No No
Systems 9 2022 guarante
2022 of the obligations
(Wuxi) e
under the main
Co. Ltd.contract or
December 30 2026
(whichever is the
earlier)
Approved total
Total actual amount
guaranteed amount
occurred towards
towards the 1000 1000
subsidiaries within
subsidiaries within the
the reporting period
reporting period
Approved total
Total actual
guaranteed amount
guarantee balance
towards the 1000 1000
towards subsidiaries
subsidiaries at the
at the year end
year end
Total amount of the company’s guarantee
Approved total Total actual
10001000
amount guaranteed guaranteed amount
77无锡威孚高科技集团股份有限公司2022年年度报告全文
within the reporting occurred within the
period reporting period
Approved total Actual total
amount guaranteed at 1000 guarantee balance at 1000
the year end the year end
Proportion of actual total guaranteed
0.06%
amount to net assets
Wherein:
Total guaranteed amount towards
shareholders actual controllers and related 0
parties
Guaranteed amount provided for
guaranteed objects with a liability rate of 0
assets of over 70% directly or indirectly
Excess of total guaranteed amount over
0
50% of net assets
The aforementioned total amount
0
guaranteed of three items
Specific description for using the guarantee by complex method: None
3. Trusted cash asset management
(1) Trust financing
□ Applicable □ Not applicable
Trust financing during the period
In ten thousand yuan
Amount with
impairment
Outstanding accrued for the
Type Capital sources Amount occurred Overdue amount
balance overdue financial
products which has
not been recovered
Financing products Own funds 70908 9850 0 0
Financial products
Own funds 110012 67500 0 0
of securities firms
Trust financial
Own funds 323412 129550 0 0
products
Other type Own funds 148713 114649 0 0
Total 653045 321549 0 0
Details of the single major amount or high-risk trust investment with low security poor fluidity
□ Applicable □ Not applicable
In ten thousand yuan
Trust Truste Type Am So Sta En Capita Crite Refer Antici Actual Actual Amou Whet Whe Summary
ee e type ount urc rt d l ria ence pated gains/l collect nt of her ther of the
instit e of dat dat invest for annu incom osses ed reserv appr has items and
ution fun e e ment fixin al e (if in gains/l e for oved entr related
r ds purpos g rate applic period osses devalu by ust query
name e rewa of able) in ation legal fina index (if
rd retur period of proce nce applicable)
n withdr dure plan
awing (Y/N in
(if ) the
applic futu
78无锡威孚高科技集团股份有限公司2022年年度报告全文
able) re
Refer
ence
Non- 20 20 annu
guara Ow 22 22 Bank al 2.05
nteed financi rate
474 n - - %- 1518. 1440.
Bank Bank floati al of 0 Y Y
ng 600 fun 01 12 produc retur 2.05 28 99
inco d - - ts n by %
me the
05 29 contr
act
Refer
ence
Non- 20 20 annu
guara Ow 22 al 4.70
24 Asset nteed rate
Secu Securi 105 n - manag %- 2452 2976.floati of
rities ties - 0 Y Y
ng 000 fun 01
ement
retur 20.3 7.28 07
Collec
11- Plan
inco d - n by % ted Apr. 19
me 22 the
07 accord 2022(Annocontr
act ing to uncement
Refer the No.:2022-
ence
Non- 20 20
contra 013)
annu
guara Ow 22 24 al 3.40 ct
Collec
nteed rate
785 n - - tion %- 3487. 1494
Trust Trust floati of 0 Y Y
ng 00 fun 01 03
trust
retur 7.10 25 3.69
plan
inco d - - n by %
me the
27 18 contr
act
Refer
ence
Other Non- 20 20 annu
profes guara Ow 22 23 al
Private
sional nteed rate 8.00
Othe 204 n - - Equity 1624. 1846.financ floati of
r Produc %- 0 Y Y
ial ng 00 fun 02 07 retur 37 35
ts 10%
institu inco d - - n by
tions me the
24 26 contr
act
67831152120
Total -- -- -- -- -- -- -- 0 -- -- --
5007.187.1
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.
79无锡威孚高科技集团股份有限公司2022年年度报告全文
XVI. Explanation on other material matters
□Applicable □ Not applicable
1. Share buyback during the reporting period
On April 15 2022 the Company convened the 8th meeting of the 10th session of the BOD and deliberated and approved the Proposal
on the Repurchase Program of Part of the Company's A Shares. The Company will repurchase part of its A shares by means of
centralized competitive trading with the total repurchase fund not less than RMB 362500000 (inclusive) and not more than RMB
725000000 (inclusive) and the price of the repurchased shares (A shares) shall not exceed RMB 29 per share (inclusive) [As the
annual equity distribution for 2021 has been implemented and completed the price of repurchased shares (A shares) will be adjusted
from up to RMB 29 per share (inclusive) to up to RMB 27.41 per share from the ex-dividend date of the equity distribution (June 10
2022) in accordance with related regulations]. As of December 31 2022 the Company has bought back a total of 21085000 shares
by means of centralized competitive bidding through the special securities account for repurchase of which the highest transaction
price was RMB 20.85 per share and the lowest transaction price was RMB 17.17 per share and the total amount paid was RMB
397804542.63 (including transaction fees).
2. Release of restricted stocks during the reporting period
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 which agreed to apply for the release of 7632000 restricted stocks granted to 581 incentive recipients. On December
16 2022 the shares released from this restricted sale were formally available for circulation.
XVII. Material matters of subsidiary of the Company
□ Applicable □ Not applicable
80无锡威孚高科技集团股份有限公司2022年年度报告全文
Section VII. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
Before the change Change during the year(+/-)) After the change
New Public reserve Bonus Subtot Propor
Amount Proportion shares transfer into share Other Amount
shares al tion
issued capital
--
I. Restricted 120218
192893361.91%726772671.19%
shares 36
500500
1. State-owned
shares
2. State-owned
legal person’s
shares
--
3. Other domestic 120218
192893361.91%726772671.19%
shares 36
500500
Including:
Domestic legal
person’s shares
--
Domestic natural 120218
192893361.91%726772671.19%
person’s shares 36
500500
4. Foreign shares
Including:
Foreign legal
person’s shares
Foreign natural
person’s shares
II. Unrestricted 7211 7211 996581 98.81
98937023498.09%
shares 223 223 457 %
1. RMB ordinary 7211 7211 824201 81.72
81699023481.00%
shares 223 223 457 %
2. Domestically
17238017.09
listed foreign 172380000 17.09%
shares 000 %
3. Overseas listed
foreign shares
4. Others
--
10086595100860100.0
III. Total shares 100.00% 5627 5627
7032930%
77
Reasons for share changed
□Applicable □Not applicable
1. Within the reporting period a total of 7632000 restricted shares granted to 581 incentive recipients of the Company were
released from restricted sales and were officially listed for circulation on December 16 2022. As 364500 shares of lock-up shares
for executives were involved the actual number of shares released from restricted sales was 7267500 shares thereby resulting in a
change in the number of shares subject to restricted sales.
81无锡威孚高科技集团股份有限公司2022年年度报告全文
2. Within the reporting period the Company has completed the cancellation of 56277 shares of the special securities account
for repurchase resulting in the change of total share capital.Approval status of share changes
□Applicable □Not applicable
1. On April 15 and May 18 2022 the Company held the 8th meeting of the 10th session of the BOD and the 2021 Annual
General Meeting respectively deliberated and approved the Proposal on Adjusting the Use and Cancellation of Remaining
Repurchased Shares. It was approved to adjust the use of 56277 remaining shares in the repurchase special securities account from
“for equity incentives” to “for cancellation to reduce registered capital”.
2. 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 which agreed to apply for the release of 7632000 restricted stocks granted to 581 incentive
recipients.Ownership transfer of share changed
□Applicable □Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable □ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable □ Not applicable
2.Changes of lock-up stocks
□Applicable □Not applicable
In Share
Restricted
shares
Opening Shares Ending
increased
Shareholders shares released in shares Restricted reasons Date for released
in
restricted Period restricted
the
Period
Lock-up shares held by
Wang senior executives and
415586 60000 160000 315586 Dec. 16 2022
Xiaodong Restricted Stock Incentive
Plan for year of 2020
Lock-up shares held by
senior executives and
Xu Yunfeng 359750 52500 140000 272250 Dec. 16 2022
Restricted Stock Incentive
Plan for year of 2020
Lock-up shares held by
senior executives and
Ou Jianbin 287500 42000 112000 217500 Dec. 16 2022
Restricted Stock Incentive
Plan for year of 2020
Lock-up shares held by
senior executives and
Miao Yuming 287500 42000 112000 217500 Dec. 16 2022
Restricted Stock Incentive
Plan for year of 2020
Lock-up shares held by
Rong bin 280000 42000 112000 210000 senior executives and Dec. 16 2022
Restricted Stock Incentive
82无锡威孚高科技集团股份有限公司2022年年度报告全文
Plan for year of 2020
Lock-up shares held by
senior executives and
Liu Jinjun 280000 42000 112000 210000 Dec. 16 2022
Restricted Stock Incentive
Plan for year of 2020
Lock-up shares held by
senior executives and
Li Gang 280000 42000 112000 210000 Dec. 16 2022
Restricted Stock Incentive
Plan for year of 2020
Lock-up shares held by
senior executives and
Xu Sheng 280000 42000 112000 210000 Dec. 16 2022
Restricted Stock Incentive
Plan for year of 2020
Middle Restricted Stock Incentive
management 16819000 6660000 10159000 Dec. 16 2022 Plan for year of 2020
Total 19289336 364500 7632000 12021836 -- --
II. Securities issuance and listing
1. Security offering (without preferred stock) in Reporting Period
□ Applicable □ Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets and
liability structure
□ Applicable □ Not applicable
During the reporting period the restricted shares for year of 2020 which has granted without circulation have repurchased and
canceled partially by the Company that is 56277 shares total share capital of the Company comes to 1008659570 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
stock
shareholders Total preference
Total common sharehold
with voting shareholders with voting
stock ers at end
rights rights recovered at end of
shareholders in 66.140 of last 69132 0 0
recovered at last month before annual
reporting month
end of report disclosed (if
period-end before
reporting applicable)
annual
period (if
report
applicable)
disclosed
Particulars about shares held above 5% by shareholders or top ten shareholders
Nature Proportion Total Changes in Numbe Amount of Information of shares
Full name of
of of shares shareholders report r of un-lock up pledged tagged or
Shareholders
sharehol held at the end of period lock- stock held frozen
83无锡威孚高科技集团股份有限公司2022年年度报告全文
der report period up
State of
stocks Amount
share
held
State-
Wuxi Industry
owned
Development 20.23% 204059398 0 0 204059398
corporat
Group Co. Ltd.e
Foreign
ROBERT
corporat 14.16% 142841400 0 0 142841400
BOSCH GMBH
e
Hong Kong
Foreign
Securities
corporat 1.95% 19663238 -5046183 0 19663238
Clearing
e
Company
BBH BOS S/A
Foreign
FIDELITY FD -
corporat 1.39% 14006315 -1438400 0 14006315
CHINA FOCUS
e
FD
NSSF-413 Other 1.00% 10110000 4770000 0 10110000
FIDELITY
INVMT TRT Foreign
FIDELITY corporat 0.68% 6863386 -180000 0 6863386
INTL SMALL e
CAP FUND
Shanghai
Chongyang
Strategic
Investment Co.Other 0.55% 5500106 5500106 0 5500106
Ltd. -
Chongyang
Strategic
Yingzhi Fund
Domesti
Xie Zuogang c natural 0.51% 5132967 1320881 0 5132967
person
Domesti
Fei Guohua c natural 0.50% 5020725 5020725 0 5020725
person
Basic Pension
Insurance Fund- Other 0.45% 4524356 -3191300 0 4524356
1003
Strategy investor or general
legal person becoming the
top 10 shareholders by N/A
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
shareholders; and they do not belong to the persons acting in concert regulated by the Management
aforesaid shareholders
Measure of Information Disclosure on Change of Shareholding for Listed Company.Description of the above
shareholders in relation to
delegate/entrusted voting N/A
rights and abstention from
voting rights.Special note on the As of Dec. 31 2022 the repurchase special securities account of Weifu High-Technology Group
repurchase account among
Co. Ltd has 2108500 shares of ordinary A-Share hereby stated that in according withe relevant
the top 10 shareholders (if
applicable) 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 stocks held Shares held
Shareholders’ name
at Period-end Type Amount
84无锡威孚高科技集团股份有限公司2022年年度报告全文
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 19663238 19663238
shares
Domestically
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 14006315 listed foreign 14006315
shares
RMB common
NSSF-413 10110000 10110000
shares
Domestically
FIDELITY INVMT TRT FIDELITY INTL SMALL
6863386 listed foreign 6863386
CAP FUND
shares
Shanghai Chongyang Strategic Investment Co. Ltd. - RMB common
55001065500106
Chongyang Strategic Yingzhi Fund shares
Domestically
Xie Zuogang 5132967 listed foreign 5132967
shares
RMB common
Fei Guohua 5020725 5020725
shares
RMB common
Basic Pension Insurance Fund- 1003 4524356 4524356
shares
Among the aforesaid shareholders there has no associated relationship
Expiation on associated relationship or consistent between Wuxi Industry Development Croup Co. Ltd. the first lagest
actors within the top 10 un-lock up shareholders and shareholder of the Company and other shareholders; and they do not
between top 10 un-lock up shareholders and top 10 belong to the persons acting in concert regulated by the Management
shareholders Measure of Information Disclosure on Change of Shareholding for
Listed Company.Among the top 10 shareholders Shanghai Chongyang Strategic
Investment Co. Ltd. - Chongyang Strategic Yingzhi Fund holds
Explanation on top 10 shareholders involving margin
5500106 shares through investor credit securities accounts;
business (if applicable)
Shareholder Fei Guohua holds 5020725 shares through investor's
credit securities account.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
Legal
Controlling person/person in
Date of foundation Organization code Main operation business
shareholders charge of the
unit
85无锡威孚高科技集团股份有限公司2022年年度报告全文
External investment with own funds;
housing rental services; self-operation and
acting as an agent for the import & export of
Wuxi Industry various commodities and technologies
Development Group Yao Zhiyong 1995-10-05 913202001360026543 (except for commodities and technologies
Co. Ltd. that restricted or prohibited for import &
export by the State) domestic trading
(restricted and prohibited projects by the
State excluded)
Equity of other
domestic/oversea
1. The majority shareholder of the Company Wuxi Industry Group is the controlling shareholder of Wuxi
listed company
Taiji Industry Corporation Limited (stock code: 600667).control by
2. The majority shareholder of the Company Wuxi Industry Group holds 23185000 circulating shares
controlling
(15.65% of total shares of New Hongtai) of Wuxi New Hongtai Electrical Technology Co. Ltd. (Short name:
shareholder as well
New Hongtai Stock Code: 603016).as stock-joint in
report period
Changes of controlling shareholders in reporting period
□ Applicable □ Not applicable
The Company had no changes of controlling shareholders in reporting period
3. Actual controller and person acting in concert of the Company
Nature of actual controller: local state-owned assets management
Type of actual controller: legal person
Legal person/person in Date of Organization
Name of actual controlling shareholders Main operation business
charge of the unit foundation code
The State-owned Assets Supervision &
Administration Commission of Wuxi Zhang Jianchun ~ State-owned Assets management
Municipality of Jiangsu Province
Equity of domestic/oversea listed
company control by actual controller in Not applicable
report period
Changes of actual controller in reporting period
□ Applicable □ Not applicable
No changes of actual controllers for the Company in reporting period.Property right and controlling relationship between the actual controller and the Company is as follow
86无锡威孚高科技集团股份有限公司2022年年度报告全文
Wuxi State-owned Assets Supervision & Department of Finance of
Administration Commission of State
Council Jiangsu province
100%
Wuxi Guofa Capital Operation 68.1518% 4.5401%
Co. Ltd.
27.3081%
Wuxi Industry Development Group Co. Ltd.
20.23%
Weifu High-Technology Group Co. Ltd.Actual controller controlling the Company by entrust or other assets management
□ Applicable □ Not applicable
4.The total number of shares pledged by controlling shareholders or the first majority shareholder and its
persons acting in concert accounts for 80% of the shares held by them
□ Applicable □ Not applicable
5. Particulars about other legal person shareholders with over 10% shares held
□ Applicable □ Not applicable
Corporate Legal person./person in Establishment Registered
Main business or management activity
shareholders charge of unit date capital
Development manufacture and distribution of products
technologies systems solutions and service performance
especially in mobile electrical engineering electronics
mechanical engineering mechanics metals and other
materials medicine logistics communications and
information technology including solutions based on data
ROBERT BOSCH Bettina Holzwarth
1200
1886-11-15 million and related fields. The Company’s goal is to further
GMBH Nora Kristin Klug
euros perform regionally based and business-related services.The Company may directly or indirectly enter into various
business transactions to achieve this goal. In order to
achieve the goal the Company can establish acquire and
participate in business activities in any form permitted by
law or carry out business activities through them and
87无锡威孚高科技集团股份有限公司2022年年度报告全文
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
Disclosure Number of Proportion to Proposed Proposed Share buy- Repurchase The proportion
time of the shares buy- total share buy-back buy-back back d quantity of repurchased
plan back (shares) capital amount (ten period purpose (shares) shares to the
thousand underlying
yuan) stocks involved
in the equity
incentive plan
(if any)
Intended
Not for
Not higher exceeding implementi
than RMB 725 ng
Not higher
25000000 million From 2022- employee
Apr. 19 than 2.48%
and not (inclusive) 04-15 to stock 21085000
2022 and lower
lower than and not less 2023-04-14 ownership
than 1.24%
12500000 than RMB plans or
shares 362.5 million equity
(inclusive) incentive
plans
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable □ Not applicable
88Section VIII. Preferred Stock
□ Applicable □ Not applicable
The Company had no preferred stock in the Period.无锡威孚高科技集团股份有限公司 2022 报告全文
Section IX. Corporate Bonds
□ Applicable □ Not applicable
90无锡威孚高科技集团股份有限公司2022报告全文
Section X. Financial Report
I. Audit report
Type of audit opinion Unqualified opinion with highlighted paragraphs
Signing date of audit report April 26 2023
Name of audit institute Gongzheng Tianye Certified Public Accountants (Special General Partnership)
Serial of Auditing Report Su Gong W【2023】No. A853
Name of CPA Gu Zhi Zhang Qianqian
Auditor’s Report
Su Gong W【2022】No. A853
To the Shareholders of Weifu High-Technology Group Co. Ltd.:
I. Auditing opinions
We have audited the financial statement under the name of Weifu High-Technology Group Co. Ltd. (hereinafter
referred to as WFHT) including the consolidated and parent Company’s balance sheet of 31 December 2022 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 2022 and its operation results and cash flows for the year
ended.II. Basis of opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Ourresponsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of theFinancial Statements” section of the auditor’s report. We are independent of the Company in accordance with the
Certified Public Accountants of China’s Code of Ethics for Professional Accountants and we have fulfilled our
other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion
III. Highlighted paragraphs
We remind users of financial statements to pay attention: As described in Note XVI-7 "Other important
transactions and matters affecting investors' decisions" 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
91无锡威孚高科技集团股份有限公司2022报告全文
investigation stage and the outcome of the case is uncertain in the future.This paragraph does not affect the published audit opinion.IV. Key audit matters
Key audit matters are those matters that in our professional judgment were of most significance in our audit of
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:
(I) Accounting treatment of "platform trading" business and the related provision for expected credit
losses
1. Matter description
As described in Note XVI-7 "Other important transactions and matters affecting investors' decisions" the security
organs have launched a criminal investigation on the case that WFTR was defrauded by contracts in its "platform
trade" business. 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 recognizeas claims and liabilities respectively purchases actually paid to "Suppliers" and sales collected from "Customers".In the financial statements the "platform trade" business is net reported to other receivables in the form of the
"platform trade" business portfolio the amount is 2741.4991 million yuan for which an expected credit loss of
1644. 0683 million yuan has been charged. The "platform trade" business involved significant amounts of money
and was at the stage of criminal investigation the judgment of the nature of the business accounting treatment
and the provision of expected credit losses are related to management's use of significant accounting estimates and
judgments and have a significant impact on the financial statements. Therefore we identified the accounting
treatment of the "platform trading" business and the provision of expected credit losses of portfolio claims of
"platform trading" business as key audit matters.
2. The solution to the matter in auditing
(1) Interview the management and relevant business personnel of WFTR to understand the business background
operation mode contract signing method pricing method transaction and settlement process of its "platform
trade" business;
(2) Evaluate and test the internal controls of the "platform trade" business evaluate the design of these controls
determine whether they are implemented and test the operational effectiveness of the relevant internal controls;
(3) Obtain the standing book of purchase and sales contract inspect the purchase and sales contract and verify the
key terms of the subject matter counterparty contract price delivery mode and so on involved in the purchase
and sales contract combine the contract signing time pricing method and interview records to further judge
whether the relevant transaction has commercial substance;
(4) Obtain the industrial and commercial information of "customers" and "suppliers" involved in the transaction
92无锡威孚高科技集团股份有限公司2022报告全文
process check the business scope registered address equity structure registered capital personnel size telephone
number and other information of the counterparty to judge whether the business scope of the counterparty and its
own scale match the transaction scale check whether there is correlation or suspected correlation between the
upstream "supplier" and the downstream "customer" and evaluate the business logic and rationality of the
existence of the upstream "supplier" and the downstream "customer" in the transaction chain at the same time;
(5) Obtain detailed accounts and accounting documents involved in the "platform trade" business check the
original documents related to accounting processing including but not limited to purchase and sales contracts
(orders framework agreements) invoices logistics documents payment and payment bank documents and ask
relevant personnel about logistics documents check their sources and ways of obtaining. Further judge whether
there is real physical circulation in the transaction process;
(6) Send letters to the "customer" and "supplier" confirm the "transaction amount" and "settlement balance" to the
"customer" and "supplier" check the return letter check the address of the return letter the seal the amount of the
return letter and other information and take further verification procedures for the return letter with doubts;
(7) Visit the main "customers" and "suppliers" interview the transaction background transaction content contract
signing transaction mode cargo logistics operation capital settlement flow whether there is a correlation
between WFTR and the "customers" and "suppliers" verify the information formed in the transaction process
with the "customers" and "suppliers". Verify the authenticity of the reply of "customer" and "supplier" and
observe the business premises of "customer" and "supplier" to further judge whether the relevant transaction has
commercial substance and commercial logic;
(8) Evaluate the reasonableness of that the management considers that the business has a high probability of not
having commercial substance and business logic and does not conduct accounting treatment and presentation as
normal trade business according to the principle of substance over form based on the information obtained in the
audit process;
(9) In combination with related transaction audit procedures check whether there are related relationships related
transactions and funds occupied by related parties in the "platform trade" business;
(10) Obtain and check the supporting credentials for the actual collection of the "platform trade" business debt
portfolio after the balance sheet date visit the competent departments according to the sources from which the
management makes estimates and verify the authenticity and reliability of the sources;
(11) Check the information related to the "platform trade" business has been properly reported and disclosed in the
financial statements.(II) Revenue recognition
1. Matter description
As described in Note V-32 “Revenue” and Note VII-44 “Operation revenue and operation cost” carried in the
financial statement WFHT achieved an operation revenue of 12.730 billion yuan for year of 2022. As one of the
biggest source of profits for WFHT operating revenue has a significant effect on the general financial statement
in which there are certain of inherent risks existed for the reason that the management manipulate the timing of
recognition so as to achieve specific objectives or anticipations. Therefore we will take the Revenue recognition
as the key auditing matter.
93无锡威孚高科技集团股份有限公司2022报告全文
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.V. Other information
The management of WFHT is responsible for other information which includes the information covered in the
Company’s 2021 annual report excluding the financial statement and our audit report.Our audit opinions on the financial statements do not cover other information and we do not issue any form of
authentication conclusions on other information.In combination with our audit of the financial statements it is our responsibility to read other information and in
the process consider whether there is material inconsistency or material misstatement between the other
information and the financial statements or what we learned during the audit.Based on the work we have carried out if we determine that there is a material misstatement of other information
we should report that fact and i this regard we have noting to report.VI. Responsibilities of management and those charged with governance for the financial statements
The management is responsible for the preparation of the financial statements in accordance with the Accounting
Standards for Enterprise to secure a fair presentation and for the design establishment and maintenance of the
internal control necessary to enable the preparation of financial statements that are free from material
misstatement whether due to fraud or error.In preparing the financial statements the management is responsible for assessing the Company’s ability to
continue as a going concern disclosing matters related to going concern (if applicable) and using the going
concern assumption unless the management either intends to liquidate the Company or to cease operations or has
no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.
94无锡威孚高科技集团股份有限公司2022报告全文
VII. 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
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
95无锡威孚高科技集团股份有限公司2022报告全文
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
26 April 2023
96无锡威孚高科技集团股份有限公司2022报告全文
II. Financial Statement
Statement in Financial Notes are carried In RMB
1. Consolidated Balance Sheet
Prepared by Weifu High-Technology Group Co. Ltd.In RMB
Item Dec. 31 2022 Dec. 31 2021
Current assets:
Monetary funds 2389551930.76 1896063265.69
Settlement provisions
Capital lent
Trading financial assets 2718820654.87 6076436069.42
Derivative financial assets
Note receivable 135559024.27 1116550186.21
Account receivable 3127490177.25 2053800293.77
Receivable financing 1918368845.21 713017014.50
Accounts paid in advance 94323853.87 178059249.99
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 1264507456.47 17908078.54
Including: Interest receivable
Dividend receivable 147000000.00
Buying back the sale of financial assets
Inventories 2283119656.27 3445396375.09
Contract assets
Assets held for sale
Non-current asset due within one year
Other current assets 430547201.24 220320922.50
Total current assets 14362288800.21 15717551455.71
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 6282818108.96 5717944788.12
Investment in other equity instrument 677790690.00 285048000.00
Other non-current financial assets 1326608914.00 1690795178.00
97无锡威孚高科技集团股份有限公司2022报告全文
Investment real estate 49296869.73 19387746.56
Fixed assets 3769984185.94 2932210452.51
Construction in progress 509105587.49 387429933.08
Productive biological asset
Oil and gas asset
Right-of-use assets 41865100.38 23148405.58
Intangible assets 487627987.92 440593119.82
Expense on Research and Development
Goodwill 237682375.72 231255015.75
Long-term expenses to be apportioned 28586235.84 15304783.57
Deferred income tax asset 275627772.45 242248194.57
Other non-current asset 479630436.37 267941354.57
Total non-current asset 14166624264.80 12253306972.13
Total assets 28528913065.01 27970858427.84
Current liabilities:
Short-term loans 3604376527.82 1437958206.55
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability 747115.75
Note payable 1411089606.00 1760032216.30
Account payable 3454601023.60 3206653702.59
Accounts received in advance 3633878.33 2854518.96
Contractual liability 94850083.23 136427636.39
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 317434386.24 339888502.70
Taxes payable 54586315.53 40105648.88
Other account payable 198990948.23 359905317.46
Including: Interest payable 6184.14
Dividend payable 25671100.00
Commission charge and commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one year 14285348.90 34088773.68
Other current liabilities 211763779.77 212969271.55
Total current liabilities 9366359013.40 7530883795.06
Non-current liabilities:
98无锡威孚高科技集团股份有限公司2022报告全文
Insurance contract reserve
Long-term loans 238000000.00
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 31589277.20 15795469.25
Long-term account payable 30785082.11 32015082.11
Long-term wages payable 154093044.28 108311923.19
Accrued liability 10106268.87
Deferred income 223123978.78 298052867.56
Deferred income tax liabilities 40149550.99 23097535.20
Other non-current liabilities
Total non-current liabilities 727847202.23 477272877.31
Total liabilities 10094206215.63 8008156672.37
Owner’s equity:
Share capital 1008603293.00 1008659570.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital reserve 3398368567.63 3371344172.82
Less: Inventory shares 541623002.63 270249797.74
Other comprehensive income -911310.13 -36746344.60
Reasonable reserve 2119800.95 712215.31
Surplus public reserve 510100496.00 510100496.00
Provision of general risk
Retained profit 13320021325.90 14814787377.86
Total owner’ s equity attributable to parent company 17696679170.72 19398607689.65
Minority interests 738027678.66 564094065.82
Total owner’ s equity 18434706849.38 19962701755.47
Total liabilities and owner’ s equity 28528913065.01 27970858427.84
Legal Representative: Wang Xiaodong
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin
2.Balance Sheet of Parent company
In RMB
Item Dec. 31 2022 Dec. 31 2021
99无锡威孚高科技集团股份有限公司2022报告全文
Current assets:
Monetary funds 823574329.53 1002808546.46
Trading financial assets 2693150975.20 5493703374.82
Derivative financial assets
Note receivable 29575852.04 303726372.69
Account receivable 906808283.22 536957890.22
Receivable financing 216462262.44
Accounts paid in advance 56037892.68 93419268.82
Other account receivable 1472102439.27 204125517.63
Including: Interest receivable 206325.34 113055.56
Dividend receivable 26718900.00
Inventories 571571431.95 1076094722.15
Contract assets
Assets held for sale
Non-current assets maturing within one year
Other current assets 107462112.82 149352872.77
Total current assets 6876745579.15 8860188565.56
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 8369843351.10 6867282228.56
Investment in other equity instrument 601850690.00 209108000.00
Other non-current financial assets 1326608914.00 1690795178.00
Investment real estate 35584279.11
Fixed assets 2251495050.80 1786089596.76
Construction in progress 251304655.41 239183999.25
Productive biological assets
Oil and natural gas assets
Right-of-use assets 6061693.75 1240879.96
Intangible assets 209246490.17 209952168.75
Research and development costs
Goodwill
Long-term deferred expenses 6895352.43 348970.34
Deferred income tax assets 109624761.50 85012991.24
Other non-current assets 168744695.04 185646711.53
Total non-current assets 13337259933.31 11274660724.39
Total assets 20214005512.46 20134849289.95
Current liabilities
Short-term borrowings 2121354415.53 272578883.63
100无锡威孚高科技集团股份有限公司2022报告全文
Trading financial liability
Derivative financial liability 737424.50
Notes payable 251867652.05 569405391.94
Account payable 1048268519.52 1012390712.80
Accounts received in advance
Contract liability 6564332.93 7879319.15
Wage payable 166314985.33 220719432.58
Taxes payable 6048505.30 12427327.61
Other accounts payable 926276130.15 392455373.80
Including: Interest payable 835069.83 117777.78
Dividend payable
Liability held for sale
Non-current liabilities due within one year 4306935.71 462484.41
Other current liabilities 102322311.03 143935332.78
Total current liabilities 4634061212.05 2632254258.70
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital securities
Lease liability 2690812.43 1003106.55
Long-term account payable
Long term employee compensation payable 121683760.89 103482333.50
Accrued liabilities 13750.00
Deferred income 198149511.20 265509545.34
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 322537834.52 369994985.39
Total liabilities 4956599046.57 3002249244.09
Owners’ equity:
Share capital 1008603293.00 1008659570.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital reserve 3515005861.23 3487154855.59
Less: Inventory shares 541623002.63 270249797.74
Other comprehensive income
Special reserve
Surplus reserve 510100496.00 510100496.00
Retained profit 10765319818.29 12396934922.01
101无锡威孚高科技集团股份有限公司2022报告全文
Total owner’s equity 15257406465.89 17132600045.86
Total liabilities and owner’s equity 20214005512.46 20134849289.95
3.Consolidated Profit Statement
In RMB
Item 2022 2021
I. Total operating income 12729634917.03 13682426710.95
Including: Operating income 12729634917.03 13682426710.95
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 12526691966.36 12772618230.58
Including: Operating cost 11016385488.80 11220367713.57
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 70575584.89 60256733.73
Sales expense 189528090.71 264651432.56
Administrative expense 586386474.32 611872150.24
R&D expense 581488711.88 595406951.64
Financial expense 82327615.76 20063248.84
Including: Interest expenses 107737432.78 38698621.09
Interest income 41020724.48 41478845.32
Add: other income 112665397.27 71276971.68
Investment income (Loss is listed with “-”) 1849145500.50 1954523836.59
Including: Investment income on affiliated company and joint
1636986684.961632117748.78
venture
The termination of income recognition for financial assets
-959296.18
measured by amortized cost(Loss is listed with “-”)
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listed with “-”)
Income from change of fair value (Loss is listed with “-”) -157622752.09 -40270333.81
Loss of credit impairment (Loss is listed with “-”) -1645881142.40 4059750.80
Losses of devaluation of asset (Loss is listed with “-”) -181610433.12 -138117315.80
Income from assets disposal (Loss is listed with “-”) 1986804.53 3932344.07
III. Operating profit (Loss is listed with “-”) 181626325.36 2765213733.90
Add: Non-operating income 5699768.04 656202.07
Less: Non-operating expense 7711660.06 25509569.87
102无锡威孚高科技集团股份有限公司2022报告全文
IV. Total profit (Loss is listed with “-”) 179614433.34 2740360366.10
Less: Income tax expense -11331574.91 90995689.95
V. Net profit (Net loss is listed with “-”) 190946008.25 2649364676.15
(i) Classify by business continuity
1.continuous operating net profit (net loss listed with “-”) 190946008.25 2649364676.15
2.termination of net profit (net loss listed with “-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent company 118819836.30 2575371419.80
2.Minority shareholders’ gains and losses 72126171.95 73993256.35
VI. Net after-tax of other comprehensive income 35835034.47 -50662087.73
Net after-tax of other comprehensive income attributable to owners of
35835034.47-50662964.07
parent company
(I) Other comprehensive income items which will not be reclassified
-399165.0616008.80
subsequently to profit of loss
1.Changes of the defined benefit plans that re-measured -399165.06
2.Other comprehensive income under equity method that cannot be
16008.80
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
36234199.53-50678972.87
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
36234199.53-50678972.87
financial statements
7.Other
Net after-tax of other comprehensive income attributable to minority
876.34
shareholders
VII. Total comprehensive income 226781042.72 2598702588.42
Total comprehensive income attributable to owners of parent
154654870.772524708455.73
Company
Total comprehensive income attributable to minority shareholders 72126171.95 73994132.69
VIII. Earnings per share:
(i) Basic earnings per share 0.09 2.57
(ii) Diluted earnings per share 0.09 2.57
Legal Representative: Wang Xiaodong
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin
103无锡威孚高科技集团股份有限公司2022报告全文
4. Profit Statement of Parent Company
In RMB
Item 2022 2021
I. Operating income 3864504995.80 4832340790.45
Less: Operating cost 3239655060.78 3605342507.48
Taxes and surcharge 21016396.56 29689175.82
Sales expenses 24032764.17 44807972.25
Administration expenses 312390634.03 324244883.74
R&D expenses 215942706.30 225949431.82
Financial expenses -47492346.99 -15417294.04
Including: interest expenses 75002506.86 7427980.88
Interest income 123450262.42 26881455.19
Add: other income 78660020.95 41029454.01
Investment income (Loss is listed with “-”) 1698892386.70 1758393772.54
Including: Investment income on affiliated Company and joint
1427651731.231366704678.23
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 “-”) -157794622.92 -40747662.86
Loss of credit impairment (Loss is listed with “-”) -1645695111.31 -654218.49
Losses of devaluation of asset (Loss is listed with “-”) -94397143.24 -40950682.53
Income on disposal of assets (Loss is listed with “-”) 208706.65 850642.47
II. Operating profit (Loss is listed with “-”) -45505874.07 2335645418.52
Add: Non-operating income 236560.76 527726.36
Less: Non-operating expense 1624603.88 24178368.73
III. Total Profit (Loss is listed with “-”) -46893917.19 2311994776.15
Less: Income tax -24338482.27 101437713.12
IV. Net profit (Net loss is listed with “-”) -22555434.92 2210557063.03(i)continuous operating net profit (net loss listed with ‘-”) -22555434.92 2210557063.03(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
104无锡威孚高科技集团股份有限公司2022报告全文
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 -22555434.92 2210557063.03
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5.Consolidated Cash Flow Statement
In RMB
Item 2022 2021
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 12431900362.84 15555511937.16
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 306395040.32 50070441.00
Other cash received concerning operating activities 3682848864.34 86168562.99
Subtotal of cash inflow arising from operating activities 16421144267.50 15691750941.15
Cash paid for purchasing commodities and receiving labor service 10077477240.02 12479791466.70
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 1384027081.31 1436357958.29
Taxes paid 580286995.87 499681099.37
Other cash paid concerning operating activities 6955095599.73 648207823.38
105无锡威孚高科技集团股份有限公司2022报告全文
Subtotal of cash outflow arising from operating activities 18996886916.93 15064038347.74
Net cash flows arising from operating activities -2575742649.43 627712593.41
II. Cash flows arising from investing activities:
Cash received from recovering investment 10740023339.08 18129191548.43
Cash received from investment income 1183837077.82 1238803864.71
Net cash received from disposal of fixed intangible and other long-
20576391.7915303195.04
term assets
Net cash received from disposal of subsidiaries and other units 136787298.86 9000000.00
Other cash received concerning investing activities 1680766.91
Subtotal of cash inflow from investing activities 12081224107.55 19393979375.09
Cash paid for purchasing fixed intangible and other long-term assets 1152415535.85 753581993.49
Cash paid for investment 7116445479.00 18668448932.90
Net increase of mortgaged loans
Net cash received from subsidiaries and other units obtained 70190329.71
Other cash paid concerning investing activities 146232114.50
Subtotal of cash outflow from investing activities 8485283459.06 19422030926.39
Net cash flows arising from investing activities 3595940648.49 -28051551.30
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 4692002243.34 1711808897.47
Other cash received concerning financing activities 5470000.00
Subtotal of cash inflow from financing activities 4817002243.34 1717278897.47
Cash paid for settling debts 2328551163.70 575619575.18
Cash paid for dividend and profit distributing or interest paying 1761911157.57 1561591089.99
Including: Dividend and profit of minority shareholder paid by
54977987.5213970282.31
subsidiaries
Other cash paid concerning financing activities 591370195.57 17596686.60
Subtotal of cash outflow from financing activities 4681832516.84 2154807351.77
Net cash flows arising from financing activities 135169726.50 -437528454.30
IV. Influence on cash and cash equivalents due to fluctuation in exchange
27730942.53-13059669.78
rate
V. Net increase of cash and cash equivalents 1183098668.09 149072918.03
Add: Balance of cash and cash equivalents at the period -begin 1094018936.73 944946018.70
VI. Balance of cash and cash equivalents at the period -end 2277117604.82 1094018936.73
6.Cash Flow Statement of Parent Company
In RMB
Item 2022 2021
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 3542749700.01 5563589299.47
Write-back of tax received 184495154.77
106无锡威孚高科技集团股份有限公司2022报告全文
Other cash received concerning operating activities 47404163.66 42028025.86
Subtotal of cash inflow arising from operating activities 3774649018.44 5605617325.33
Cash paid for purchasing commodities and receiving labor service 2601006413.32 3605626128.99
Cash paid to/for staff and workers 707858677.98 788560324.22
Taxes paid 209864912.81 283285319.76
Other cash paid concerning operating activities 186707374.55 172424308.24
Subtotal of cash outflow arising from operating activities 3705437378.66 4849896081.21
Net cash flows arising from operating activities 69211639.78 755721244.12
II. Cash flows arising from investing activities:
Cash received from recovering investment 7606003001.77 14660350548.43
Cash received from investment income 1230308621.08 1117355887.53
Net cash received from disposal of fixed intangible and other long-
7573333.23675341.73
term assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 1345164876.69 32072638.81
Subtotal of cash inflow from investing activities 10189049832.77 15810454416.50
Cash paid for purchasing fixed intangible and other long-term assets 676750590.56 466841006.41
Cash paid for investment 5495846939.59 15006974321.57
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities 4200652968.77
Subtotal of cash outflow from investing activities 10373250498.92 15473815327.98
Net cash flows arising from investing activities -184200666.15 336639088.52
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans 2765016400.00 376524000.00
Other cash received concerning financing activities 668810047.94 100000000.00
Subtotal of cash inflow from financing activities 3433826447.94 476524000.00
Cash paid for settling debts 926483000.00 202000000.00
Cash paid for dividend and profit distributing or interest paying 1660892442.17 1520286898.73
Other cash paid concerning financing activities 426203919.97 4385823.06
Subtotal of cash outflow from financing activities 3013579362.14 1726672721.79
Net cash flows arising from financing activities 420247085.80 -1250148721.79
IV. Influence on cash and cash equivalents due to fluctuation in exchange
9734626.92-4982656.55
rate
V. Net increase of cash and cash equivalents 314992686.35 -162771045.70
Add: Balance of cash and cash equivalents at the period -begin 488417498.83 651188544.53
VI. Balance of cash and cash equivalents at the period -end 803410185.18 488417498.83
1077.Statement of Change in Owners’ Equity(Consolidated)
Current Period
In RMB
2022
Owners’ equity attributable to the parent Company
Other
equity instrument
Item
Perpe Minority Total owners’
Less: Other Provision
Share tual Capital Reasonab Surplus interests equity
Prefe Inventory comprehensive of general Retained profit Other Subtotal
capital capit reserve le reserve reserve
rred Other shares income risk
al
stock
secur
ities
I. Balance at the
10086595337134412702497712215.35101004961481478737193986076856409406519962701755
end of the last -36746344.60
year 70.00 72.82 97.74 1 .00 7.86 9.65 .82 .47
Add: Changes of
accounting
policy
Error correction
of the last period
Enterprise
combine under
the same control
Other
II. Balance at the
10086595337134412702497712215.35101004961481478737193986076856409406519962701755
beginning of this -36746344.60
year 70.00 72.82 97.74 1 .00 7.86 9.65 .82 .47
III. Increase/ - - -
Decrease in this 27024394. 2713732 1407585 173933612
year (Decrease is -56277.00 35835034.47 1494766051. 1701928518. 1527994906.81 04.89 .64 .84
listed with “-”) 96 93 09
(i) Total
118819836.3154654870.772126171.
comprehensive 35835034.47 226781042.72
income 0 7 95
(ii) Owners’ -
27024394.2713732130826610-
devoted and -56277.00 244405087.0
decreased capital 81 04.89 .83 113578476.25
8
1.Common -
3978045130000000-
shares invested 397804542.6
by shareholders 42.63 .00 267804542.63
3
2. Capital
invested by
holders of other
equity
instruments无锡威孚高科技集团股份有限公司 2022 报告全文
3. Amount
reckoned into
28116895.
owners equity 28116895.55 826610.83 28943506.38
with share-based 55
payment
--
125282560.0
4. Other -56277.00 1092500.7 1264313 125282560.00
0
437.74
----
(III) Profit
distribution 1613585888. 1613585888. 29306887. 1642892775.
26265278
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
provisions
3. Distribution - - - -
for owners (or 1609059668. 1609059668. 29306887. 1638366556.shareholders)
80805232
4. Other -4526219.46 -4526219.46 -4526219.46
(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
109无锡威孚高科技集团股份有限公司2022报告全文
6. Other
(V) Reasonable 1407585
reserve 1407585.64 287717.58 1695303.22 .64
1. Withdrawal in 2608708 2700074.0
the report period 26087086.34 28787160.37 6.34 3
2. Usage in the 2467950 2412356.4
report period 24679500.70 27091857.15 0.70 5
(VI)Others
IV. Balance at
1008603233983685541623021198005101004961332002132176966791773802767818434706849
the end of the -911310.13
report period 93.00 67.63 02.63 .95 .00 5.90 0.72 .66 .38
110无锡威孚高科技集团股份有限公司2022报告全文
Last Period
In RMB
2021
Owners’ equity attributable to the parent Company
Other
equity instrument
Item
Share Perpe Minority Total owners’
Less: Other Provision
capital tual Capital Reasonable Surplus interests equity
Prefe Inventory comprehensi of general Retained profit Other Subtotal
capit reserve reserve reserve
rred Other shares ve income risk al
stock
secur
ities
I. Balance at the
1008950532942423303627913916619.2333490.05101004961375610242182820179951244790818794465899.0
end of the last
year 70.00 68.28 77.74 47 3 .00 4.62 0.66 .36 2
Add: Changes
of accounting
policy
Error correction
of the last
period
Enterprise
combine under
the same control
Other
II. Balance at
1008950532942423303627913916619.2333490.05101004961375610242182820179951244790818794465899.0
the beginning of
this year 70.00 68.28 77.74 47 3 .00 4.62 0.66 .36 2
III. Increase/
Decrease in this - - -
77101804.1058684953.1116589698.51646157.
year (Decrease -291000.00 3337818 50662964. 1621274.7 1168235856.45is listed with “- 54 24 99 46
0.00072
”)
(i) Total -
2575371419.2524708455.73994132.
comprehensive 50662964. 2598702588.42
income 80 73 69
07
(ii) Owners’ -
devoted and 70463804. 103550984.5 17321034.decreased -291000.00 3337818 120872018.98 54 4 44
capital 0.00
1.Common
15000000.
shares invested -291000.00 -291000.00 14709000.00
by shareholders 00
2. Capital
invested by
111无锡威孚高科技集团股份有限公司2022报告全文
holders of other
equity
instruments
3. Amount
reckoned into
74241533.2321034.4
owners equity 74241533.60 76562568.04
with share- 60 4
based payment
--
4. Other 3777729.0 3337818 29600450.94 29600450.94
60.00
---
(III) Profit -
distribution 1517422799. 1517422799. 39641382. 1557064181.73
424231
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution - - -
-
for owners (or 1513341439. 1513341439. 39641382.shareholders) 1552982821.81
505031
4. Other -4081359.92 -4081359.92 -4081359.92
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
112无锡威孚高科技集团股份有限公司2022报告全文
income
6. Other
-
(V) Reasonable
reserve 1621274.7 -1621274.72 -27627.36 -1648902.08
2
1. Withdrawal
22714778.2284337.8
in the report 22714778.27 24999116.12
period 27 5
2. Usage in the 24336052. 2311965.2
report period 24336052.99 26648018.20 99 1
6638000.0
(VI)Others 736332.86 7374332.86 7374332.86
0
IV. Balance at -
100865953371344127024975101004961481478737193986076856409406519962701755.4
the end of the 36746344. 712215.31
report period 70.00 72.82 97.74 .00 7.86 9.65 .82 7
60
113无锡威孚高科技集团股份有限公司2022报告全文
8.Statement of Changes in Owners’ Equity (Parent Company)
Current Period
In RMB
2022
Other equity instrument
Perpe Other
Item tual
Prefe Less: Inventory comprehe Reasonable Share capital capit Capital reserve Surplus reserve Retained profit Other Total owners’ equity
rred Other shares nsive reserve
al
stock income
secur
ities
I. Balance at the end 1008659570
of the last year 3487154855.59 270249797.74 510100496.00 12396934922.01 17132600045.86 .00
Add: Changes of
accounting policy
Error correction of
the last period
Other
II. Balance at the
1008659570
beginning of this 3487154855.59 270249797.74 510100496.00 12396934922.01 17132600045.86
year .00
III. Increase/
Decrease in this
year (Decrease is -56277.00 27851005.64 271373204.89 -1631615103.72 -1875193579.97
listed with “-”)
(i) Total
comprehensive -22555434.92 -22555434.92
income
(ii) Owners’
devoted and -56277.00 27851005.64 271373204.89 -243578476.25
decreased capital
1.Common shares
invested by 397804542.63 -397804542.63
shareholders
2. Capital invested
by holders of other
equity instruments
3. Amount reckoned
into owners equity 28943506.38 28943506.38
with share-based
114无锡威孚高科技集团股份有限公司2022报告全文
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
4．Carry-over
retained earnings
from the defined
benefit plans
5．Carry-over
retained earnings
from other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period 6791507.46 6791507.46
2. Usage in the
report period 6791507.46 6791507.46
(VI)Others
IV. Balance at the
1008603293
end of the report 3515005861.23 541623002.63 510100496.00 10765319818.29 15257406465.89
period .00
Last Period
In RMB
2021
Item Other equity instrument Other
Less: Inventory Reasonable
Share capital Prefe Perpe Capital reserve comprehe Surplus reserve Retained profit Other Total owners’ equity
Other shares reserve
rred tual nsive
115无锡威孚高科技集团股份有限公司2022报告全文
stock capit income
al
secur
ities
I. Balance at the 1008950570
end of the last year 3407732016.61 303627977.74 510100496.00 11698982965.62 16322138070.49 .00
Add: Changes of
accounting policy
Error correction of
the last period
Other
II. Balance at the
1008950570
beginning of this 3407732016.61 303627977.74 510100496.00 11698982965.62 16322138070.49
year .00
III. Increase/
Decrease in this
year (Decrease is -291000.00 79422838.98 -33378180.00 697951956.39 810461975.37
listed with “-”)
(i) Total
comprehensive 2210557063.03 2210557063.03
income
(ii) Owners’
devoted and -291000.00 72784838.98 -33378180.00 105872018.98
decreased capital
1.Common shares
invested by
shareholders
2. Capital invested
by holders of other
equity instruments
3. Amount
reckoned into
owners equity with 76562568.04 76562568.04
share-based
payment
4. Other -291000.00 -3777729.06 -33378180.00 29309450.94
(III) Profit
distribution -1513341439.50 -1513341439.50
1. Withdrawal of
surplus reserves
2. Distribution for
owners (or -1513341439.50 -1513341439.50
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital reserves
conversed to
116无锡威孚高科技集团股份有限公司2022报告全文
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
1. Withdrawal in
the report period 6436417.80 6436417.80
2. Usage in the
report period 6436417.80 6436417.80
(VI)Others 6638000.00 736332.86 7374332.86
IV. Balance at the
1008659570
end of the report 3487154855.59 270249797.74 510100496.00 12396934922.01 17132600045.86
period .00
117III . 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.无锡威孚高科技集团股份有限公司 2022 报告全文
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 document of China Securities Regulatory Commission in February 2012 the Company issued
RMB ordinary shares (A-share) of 112858000 shares to Wuxi Industry Groups and overseas strategic investor
privately Robert Bosch Co. Ltd. (ROBERT BOSCHGMBH) (hereinafter referred to as Robert Bosch Company)
face value was ONE yuan per share added registered capital of 112858000 yuan and the registered capital after
change was 680133995 yuan. Wuxi Industry Group is the first majority shareholder of the Company and Robert
Bosch Company is the second majority shareholder of the Company.In March 2013 the profit distribution pre-plan for year of 2012 was deliberated and approved by the Board and
also passed in Annual General Meeting 2012 of the Company in May 2013. On basis of total share capital
680133995 shares distribute 5-share for every 10 shares held by whole shareholders 340066997 shares in total
are distributed. Total share capital of the Company amounting 1020200992 yuan up to 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.
119无锡威孚高科技集团股份有限公司2022报告全文
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 and Borit NV etc.
3. Business nature and major operation activities of the Company
Operation scope of parent company: Technology development and consulting service in the machinery industry;
manufacture of engine fuel oil system products fuel oil system testers and equipment manufacturing of auto
electronic parts automotive electrical components non-standard equipment non-standard knife tool and exhaust
after-treatment system; sales of the general machinery hardware & electrical equipment chemical products & raw
materials (excluding hazardous chemicals) automotive components and vehicles (excluding nine-seat passenger
car); internal combustion engine maintenance; leasing of the own houses; import and export business in respect of
diversified commodities and technologies (other than those commodities and technologies limited or forbidden by
the State for import and export) by self-operation and works as agent for such business. Research and test
development of engineering and technical; R&D of the energy recovery system; manufacture of auto components
and accessories; general equipment manufacturing (excluding special equipment manufacturing) (any projects
that needs to be approved by laws can only be carried out after getting approval by relevant authorities) General
items: engage in investment activities with self-owned funds (except for items subject to approval according to the
law independently carry out business activities according to laws with business licenses )
Major subsidiaries respectively activate in production and sales of engine accessories automotive components
mufflers purifiers and fuel cell components etc.
4. Authorized reporting parties and reporting dates for the financial report
Financial report of the Company was approved by the Board of Directors for reporting dated April 26 2023.
5. Scope of consolidate financial statement
Shareholding ratio Registered State
(%) Proportion capital ment
Short name of
Name of subsidiary of votes (in 10 Business scope consol
subsidiary Indirectl
Directly (%) thousand idated
y
yuan) (Y/N)
Internal-
combustion
NANJING WFJN CO. LTD. WFJN 80.00 -- 80.00 34628.70 Y
engine
accessories
WUXI WEIFU LIDA CATALYTIC Purifier and
WFLD 94.81 -- 94.81 50259.63 Y
CONVERTER CO. LTD. muffler
120无锡威孚高科技集团股份有限公司2022报告全文
Internal-
WUXI WEIFU MASHAN FUEL INJECTION combustion
WFMA 100.00 -- 100.00 16500 Y
EQUIPMENT CO. LTD. engine
accessories
Internal-
combustion
WUXI WEIFU CHANG AN CO.LTD. WFCA 100.00 -- 100.00 21000 Y
engine
accessories
WUXI WEIFU INTERNATIONAL TRADE
WFTR 100.00 -- 100.00 3000 Trade Y
CO.LTD.Internal-
WUXI WEIFU SCHMITTER POWERTRAIN combustion
WFSC 66.00 -- 66.00 7600 Y
COMPONENTS CO.LTD. engine
accessories
Internal-
NINGBO WFTT TURBOCHARGING combustion
WFTT 98.83 1.17 100.00 11136 Y
TECHNOLOGY CO.LTD. engine
accessories
WUXI WFAM PRECISION MACHINERY Automotive
WFAM 51.00 -- 51.00 USD2110 Y
CO.LTD. components
WUXI WEIFU LIDA CATALYTIC WFLD Purifier and
-- 60.00 60.00 1000 Y
CONVERTER (WUHAN) CO. LTD. (WUHAN) muffler
Weifu Lida (Chongqing) Automotive WFLD Purifier and
-- 100.00 100.00 5000 Y
components Co. Ltd. (Chongqing) muffler
Nanchang Weifu Lida Automotive Components WFLD Purifier and
-- 100.00 100.00 5000 Y
Co. Ltd. (Nanchang) muffler
WUXI WEIFU AUTOSMART SEATING
WFAS -- 66.00 66.00 10000 Smart car device Y
SYSTEM CO. LTD.WUXI WEIFU E-DRIVE TECHNOLOGIES
WFDT 80.00 -- 80.00 USD2000 Wheel motor Y
CO. LTD.Wuxi Weifu Qinglong Power Technology Co. Fuel cell
WFQL 45.00 30.00 75.00 50000 Y
Ltd. components
Vacuum and
VHIT Automotive Systems(Wuxi) Co.Ltd VHCN 100.00 -- 100.00 13400 Y
hydraulic pump
Weifu Holding ApS SPV 100.00 -- 100.00 DKK8638 Investment Y
Fuel cell
IRD Fuel Cells A/S IRD -- 100.00 100.00 DKK10108 Y
components
USD651.9Fuel cell
IRD FUEL CELLS LLC IRD America -- 100.00 100.00 Y
1 components
EUR1035.3Fuel cell
Borit NV Borit -- 100.00 100.00
2 Y components
Fuel cell
Borit Inc. Borit America -- 100.00 100.00 USD0.1 Y
components
Vacuum and
VHIT S.p.A VHIT -- 100.00 100.00 EUR500 Y
hydraulic pump
IV. Basis of preparation of financial statements
1. Preparation base
The financial statement were stated in compliance with Accounting Standard for Business Enterprises –Basic
Norms issued by Ministry of Finance the specific 42 accounting rules revised and issued dated 15 February 2006
and later the Application Instruments of Accounting Standards and interpretation on Accounting standards and
other relevant regulations (together as “Accounting Standards for Business Enterprise”) as well as the
Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No.15 – General
Provision of Financial Report (Amended in 2014) issued by CSRC in respect of the actual transactions and
121无锡威孚高科技集团股份有限公司2022报告全文
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. Other major accounting policy and
estimation
1. Statement on observation of Accounting Standard for Business Enterprises
Financial statements prepared by the Company were in accordance with requirements of Accounting Standard for
Business Enterprises which truly and completely reflected the financial information of the Company dated 31
December 2022 such as financial status operation achievements and cash flow for the year of 2022.
2. Accounting period
Accounting period of the Company consist of annual and mid-term mid-term refers to the reporting period shorter
than one annual accounting year. The company adopts Gregorian calendar as accounting period namely form each
1 January to 31 December.
3. Business cycles
Normal business cycle is the period from purchasing assets used for process by the Company to the cash and cash
equivalent achieved. The Company’s normal business cycle was one-year (12 months).
122无锡威孚高科技集团股份有限公司2022报告全文
4. Recording currency
The Company’s reporting currency is the RMB yuan.
5. Accounting Treatment Method for Business Combinations under the same/different control
Business combination is the transaction or events that two or two above independent enterprises combined as a
reporting entity. Business combination including enterprise combined under the same control and business
combined under different control.
(1) The business combination under the same control
Enterprise combination under the same control is the enterprise who take part in the combination are have the
same ultimate controller or under the same controller the control is not temporary. The assets and liability
acquired by combining party are measured by book value of the combined party on combination date. Balance of
net asset’s book value acquired by combining party and combine consideration paid (or total book value of the
shares issued) shall adjusted capital reserve (share premium); if the capital reserves (share premium) is not
enough for deducted adjusted for retained earnings. Vary directly expenses occurred for enterprise combination
the combining party shall reckon into current gains/losses while occurring. Combination day is the date when
combining party obtained 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 fair value of the assets (equity of purchaser held before the date of purchasing
included) for purchasing controlling right from the purchaser the liability occurred or undertake on purchasing
date less the fair value of identifiable net assets of the purchaser obtained in combination recognized as goodwill
if the results is positive; if the number is negative the acquirer shall firstly review the measurement of the fair
value of the identifiable assets obtained liabilities incurred and contingent liabilities incurred as well as the
combination costs.After that if the combination costs are still lower than the fair value of the identifiable net
assets obtained the acquirer shall recognize the difference as the profit or loss in the current period.Other directly
expenses cost for combination shall be reckoned into current gains/losses. Difference of the fair value of assets
paid and its book values reckoned into current gains/losses. On purchasing date the identifiable assets liability or
contingency of the purchaser obtained by the Company recognized by fair value that required identification
conditions; Acquisition date refers to the date on which the acquirer effectively obtains control of the purchaser.
6. Preparation method for consolidated financial statement
(1) Recognition principle of consolidated scope
On basis of the financial statement of the parent company and owned subsidiaries prepared consolidated
statement in line with relevant information. The scope of consolidation of consolidated financial statements is
ascertained on the basis of effective control. Once certain elements involved in the above definition of control
123无锡威孚高科技集团股份有限公司2022报告全文
change due to changes of relevant facts or circumstances the Company will make separate assessment.
(2) Basis of control
Control is the right to govern an invested party so as to obtain variable return through participating in the invested
party’s relevant activities and the ability to affect such return by use of the aforesaid right over the invested party.Relevant activates refers to activates have major influence on return of the invested party’s.
(3) Consolidation process
Subsidiaries are consolidated from the date on which the company obtains their actual control and are de-
consolidated from the date that such control ceases.All significant inter-group balances investment transactions
and unrealized profits are eliminated in the consolidated financial statements.For subsidiaries being disposed the
operating results and cash flows prior to the date of disposal are included in the consolidated income statement
and consolidated cash flow statement; for subsidiaries disposed during the period the opening balances of the
consolidated balance sheet would not be restated. For subsidiaries acquired from a business combination not under
common control their operating results and cash flows subsequent to the acquisition date are included in the
consolidated income statement and consolidated cash flow statement and the opening balances and comparative
figures of the consolidated balance sheet would not be restated. For subsidiaries acquired from a business
combination under common control their operating results and cash flows from the date of commencement of the
accounting period in which the combination occurred to the date of combination are included in the consolidated
income statement and consolidated cash flow statement and the comparative figures of the consolidated balance
sheet would be restated.In preparing the consolidated financial statements where the accounting policies or the accounting periods are
inconsistent between the company and subsidiaries the financial statements of subsidiaries are adjusted in
accordance with the accounting policies and accounting period of the company.Concerning the subsidiary obtained under combination with different control adjusted several financial statement
of the subsidiary based on the fair value of recognizable net assets on purchased day while financial statement
consolidation; concerning the subsidiary obtained under combination with same control considered current status
of being control by ultimate controller for consolidation while financial statement consolidation.The unrealized gains and losses from the internal transactions occurred in the assets the Company sold to the
subsidiaries fully offset "the net profit attributable to the owners of the parent company". The unrealized gains and
losses from the internal transactions occurred in the assets the subsidiaries sold to the Company are distributed
and offset between "the net profit attributable to the owners of the parent company" and "minority interest"
according to the distribution ratio of the Company to the subsidiary. The unrealized gains and losses from the
internal transactions occurred in the assets sold among the subsidiaries are distributed and offset between "the net
profit attributable to the owners of the parent company" and "minority interest" according to the distribution ratio
of the Company to the subsidiary of the seller.The share of the subsidiary’s ownership interest not attributable to the Company is listed as “minority interest”
item under the ownership interest in the consolidated balance sheet. The share of the subsidiary’s current profit or
loss attributable to the minority interests is listed as "minority interest" item under the net profit item in the
124无锡威孚高科技集团股份有限公司2022报告全文
consolidated income statement. The share of the subsidiary’s current consolidated income attributable to the
minority interests is listed as the “total consolidated income attributable to the minority shareholders” item under
the total consolidated income item in the consolidated income statement. If there are minority shareholders add
the "minority interests" item in the consolidated statement of change in equity to reflect the changes of the
minority interests. If the losses of the current period shared by a subsidiary’s minority shareholders exceed the
share that the minority shareholders hold in the subsidiary ownership interest in the beginning of the period the
balance still charges against the minority interests.When the control over a subsidiary is ceased due to disposal of a portion of an interest in a subsidiary the fair
value of the remaining equity interest is re-measured on the date when the control ceased. The difference between
the sum of the consideration received from disposal of equity interest and the fair value of the remaining equity
interest less the net assets attributable to the company since the acquisition date is recognized as the investment
income from the loss of control. Other comprehensive income relating to original equity investment in
subsidiaries shall be treated on the same basis as if the relevant assets or liabilities were disposed of by the
purchaser directly when the control is lost namely be transferred to current investment income other than the
relevant part of the movement arising from re-measuring net liabilities or net assets under defined benefit scheme
by the original subsidiary. Subsequent measurement of the remaining equity interests shall be in accordance with
relevant accounting standards such as Accounting Standards for business Enterprises 2 – Long-term Equity
Investments or Accounting Standards for business Enterprises 22 – Financial Instruments Recognition and
Measurement.The company shall determine whether loss of control arising from disposal in a series of transactions should be
regarded as a bundle of transactions. When the economic effects and terms and conditions of the disposal
transactions met one or more of the following situations the transactions shall normally be accounted for as a
bundle of transactions: * The transactions are entered into after considering the mutual consequences of each
individual transaction; * The transactions need to be considered as a whole in order to achieve a deal in
commercial sense;* The occurrence of an individual transaction depends on the occurrence of one or more
individual transactions in the series; * The result of an individual transaction is not economical but it would be
economical after taking into account of other transactions in the series. When the transactions are not regarded asa bundle of transactions the individual transactions shall be accounted as “disposal of a portion of an interest in asubsidiary which does not lead to loss of control” and “disposal of a portion of an interest in a subsidiary whichlead to loss of control”. When the transactions are regarded as a bundle of transactions the transactions shall be
accounted as a single disposal transaction; however the difference between the consideration received from
disposal and the share of net assets disposed in each individual transactions before loss of control shall be
recognized as other comprehensive income and reclassified as profit or loss arising from the loss of control when
control is lost.
7. Joint arrangement classification and accounting treatment for joint operations
In accordance with the Company’s rights and obligation under a joint arrangement the Company classifies joint
125无锡威孚高科技集团股份有限公司2022报告全文
arrangements into: joint ventures and joint operations.The Company confirms the following items related to the share of interests in its joint operations and in
accordance with the provisions of the relevant accounting standards for accounting treatment:
(1) Recognize the assets held solely by the Company and recognize assets held jointly by the Company in
appropriation to the share of the Company;
(2) Recognize the obligations assumed solely by the Company and recognize obligations assumed jointly by the
Company in appropriation to the share of the Company;
(3) Recognize revenue from disposal of the share of joint operations of the Company;
(4) Recognize fees solely occurred by Company;
(5) Recognize fees from joint operations in appropriation to the share of the Company.
8. Recognition standards for cash and cash equivalent
Cash refers to stock cash savings available for paid at any time; cash and cash equivalent refers to the cash held
by the Company with short terms (expired within 3 months since purchased) and liquid and easy to transfer as
known amount and investment with minor variation in risks.
9. Foreign currency business and conversion
The occurred foreign currency transactions are converted into the recording currency in accordance with the
middle rate of the market exchange rate published by the People's Bank of China on the transaction date. There
into the occurred foreign currency exchange or transactions involved in the foreign currency exchange are
converted in accordance with the actual exchange rate in the transactions.At the balance sheet date the account balance of the foreign currency monetary assets and liabilities is converted
into the recording currency amount in accordance with the middle rate of the market exchange rate published by
the People's Bank of China on the transaction date. The balance between the recording currency amount converted
according to exchange rate at the balance sheet date and the original recording currency amount is disposed as the
exchange gains or losses. There into the exchange gains or losses occurred in the foreign currency loans related to
the purchase and construction of fixed assets are disposed according to the principle of capitalization of borrowing
costs; the exchange gains and losses occurred during the start-up are included in the start-up costs; the rest is
included in the current financial expenses.At the balance sheet date the foreign currency non-monetary items measured with the historical costs are
converted in accordance with the middle rate of the market exchange rate published by the People's Bank of China
on the transaction date without changing its original recording currency amount; the foreign currency non-
monetary items measured with the fair value are converted in accordance with the middle rate of the market
exchange rate published by the People's Bank of China on the fair value dateand the generated exchange gains
and losses are included in the current profits and losses as the gains and losses from changes in fair value.The following displays the methods for translating financial statements involving foreign operations into the
126无锡威孚高科技集团股份有限公司2022报告全文
statements in RMB: The asset and liability items in the balance sheets for overseas operations are translated at the
spot exchange rates on the balance sheet date. Among the owners’ equity items the items other than
“undistributed profits” are translated at the spot exchange rates of the transaction dates. The income and expense
items in the income statements of overseas operations are translated at the average exchange rates of the
transaction dates. The exchange difference arising from the above mentioned translation are recognized in other
comprehensive income and is shown separately under owner’ equity in the balance sheet; such exchange
difference will be reclassified to profit or loss in current year when the foreign operation is disposed according to
the proportion of disposal.The cash flows of overseas operations are translated at the average exchange rates on the dates of the cash flows.The effect of exchange rate changes on cash is presented separately in the cash flow statement.
10. Financial instrument
Financial instrument is the contract that taken shape of the financial asses for an enterprise and of the financial
liability or equity instrument for other units.
(1) Recognition and termination of financial instrument
A financial asset or liability is recognized when the group becomes a party to a financial instrument contract.The recognition of a financial assets shall be terminated if it meets one of the following conditions:
* the contractual right to receive the cash flow of the financial assets terminates; and
* the financial assets is transferred and the company transfers substantially all the risks and rewards of ownership
of the financial asset to the transferring party;
* the financial asset was transferred and control although the company has neither transferred nor retained almost
all the risks and rewards of the ownership of a financial asset it relinquishes control over the financial asset.If all or part of the current obligations of a financial liability has been discharged the financial liability or part of
it is terminated for recognition. When the Company (debtor) and the creditor sign an agreement to replace the
existing financial liabilities with new financial liabilities and the new financial liabilities and the existing
financial liabilities are substantially different from the contract terms terminated the recognition of the existing
financial liabilities and recognize the new financial liabilities at the same time.Financial assets are traded in the normal way and their accounting recognition and terminated the recognition of
proceed on a trade date basis.
(2) Classification and measurement of financial assets
At the initial recognition according to the business model of managing financial assets and the contractual cash
flow characteristics of financial assets the Company classifies the financial assets into the financial assets
measured at amortized cost the financial assets measured at fair value and whose changes are included in other
comprehensive income and the financial assets measured at fair value and whose changes are included in current
profit or loss. Financial assets are measured at fair value at initial recognition but if the receivables or receivables
financing arising from the sale of goods or the provision of services do not include a significant financing
component or do not consider a financing component that does not exceed one year it shall be initially measured
127无锡威孚高科技集团股份有限公司2022报告全文
in accordance with the transaction value. For financial assets measured at fair value and whose changes are
included in the current profit or loss related transaction costs are directly included in the current profit and loss;
for other types of financial assets related transaction costs are included in the initially recognized amount.The business model for managing financial assets refers to how the Company manages financial assets to generate
cash flows. The business model determines whether the cash flow of financial assets managed by the Company is
based on contract cash flow selling financial assets or both. The Company determines the business model for
managing financial assets based on objective facts and based on the specific business objectives of financial assets
management determined by key management personnel.The Company evaluates the contractual cash flow characteristics of financial assets to determine whether the
contractual cash flows generated by the relevant financial assets on a specific date are only payments for the
principal and the interest based on the outstanding principal amount. The principal is the fair value of the financial
assets at initial recognition; the interest includes the time value of money the credit risk associated with the
outstanding principal amount for a specific period and other basic borrowing risks costs and consideration of
profit. In addition the Company evaluates the contractual terms that may result in changes in the time distribution
or the amount of contractual cash flows of the financial assets to determine whether they meet the requirements of
the above contractual cash flow characteristics.Only when the Company changes its business model of managing financial assets all affected financial assets are
reclassified on the first day of the first reporting period after the business model changes otherwise the financial
assets are not allowed to be reclassified after initial recognition.* Financial assets measured at amortized cost
The Company classifies the financial assets that meet the following conditions and haven’t been designated as
financial assets measured at fair value and whose changes are included in current profit or loss as financial assets
measured at amortized cost:
A. the group's business model for managing the financial assets is to collect contractual cash flows; and
B. the contractual terms of the financial assets stipulate that cash flow generated on a specific date is only paid for
the principal and interest based on the outstanding principal amount.After initial recognition such financial assets are measured at amortized cost by using the effective interest
method. Gains or losses arising from financial assets which are measured at amortized cost and are not a
component of any hedging relationship are included in current profit or loss when being terminated for
recognition amortized by effective interest method or impaired.* Financial assets measured at fair value and whose changes are included in other comprehensive income
The Company classifies the financial assets that meet the following conditions and haven’t been designated as
financial assets measured at fair value and whose changes are included in current profit or loss as financial assets
measured at fair value and whose changes are included in other comprehensive income:
A. the Group's business model for managing the financial assets is targeted at both the collection of contractual
cash flows and the sale of financial assets; and
B. the contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only the
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payment of the principal and the interest based on the outstanding principal amount.After initial recognition such financial assets are subsequently measured at fair value. Interests impairment losses
or gains and exchange gains and losses calculated by using the effective interest method are included in profit or
loss for the period and other gains or losses are included in other comprehensive income. When being terminate
for recognition the accumulated gains or losses previously included in other comprehensive income are
transferred from other comprehensive income and included in current profit or loss.* Financial assets measured at fair value and whose changes are included in current profit or loss
Except for the above financial assets measured at amortized cost and measured at fair value and whose changes
are included in other comprehensive income the Company classifies all other financial assets as financial assets
measured at fair value and whose changes are included in current profit or loss. In the initial recognition in order
to eliminate or significantly reduce accounting mismatch the Company irreversibly designates part of the
financial assets that should be measured at amortized cost or measured at fair value and whose changes are
included in the other comprehensive income as the financial assets measured at fair value and whose changes are
included in current profit or loss.After the initial recognition such financial assets are subsequently measured at fair value and the gains or losses
(including interests and dividend income) are included in the current profit and loss unless the financial assets are
part of the hedging relationship.However for non-trading equity instrument investments the Company irreversibly designates them as the
financial assets that are measured at fair value and whose changes are included in other comprehensive income in
the initial recognition. The designation is made based on a single investment and the relevant investment is in line
with the definition of equity instruments from the issuer's perspective. After initial recognition such financial
assets are subsequently measured at fair value. Dividend income that meets the conditions is included in profit or
loss and other gains or losses and changes in fair value are included in other comprehensive income. When it is
terminated for recognition the accumulated gains or losses previously included in other comprehensive income
are transferred from other comprehensive income and included in retained earnings.
(3) Classification and measurement of financial liabilities
The financial liabilities of the Company are classified as financial liabilities measured at fair value and whose
changes are included in current profit or loss and financial liabilities measured at amortized cost at the initial
recognition. For financial liabilities that are not classified as financial liabilities measured at fair value and whose
changes are included in current profit or loss the related transaction expenses are included in the initial
recognition amount.* Financial liability measured by fair value and with variation reckoned into current gains/losses
Financial liability measured by fair value and with variation reckoned into current gains/losses including tradable
financial liability and the financial liabilities that are designated as fair value in the initial recognition and whose
changes are included in current profit or loss. For such financial liabilities the subsequent measurement is based
on fair value and the gains or losses arising from changes in fair value and the dividends and interest expenses
related to these financial liabilities are included in current profit or loss.
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* Financial liability measured by amortized cost
Other financial liabilities are subsequently measured at amortized cost by using the effective interest method. The
gain or loss arising from recognition termination or amortization is included in current profit or loss.* Distinctions between financial liabilities and equity instruments
Financial liabilities are liabilities that meet one of the following conditions:
A. Contractual obligations to deliver cash or other financial assets to other parties.B. Contractual obligations to exchange financial assets or financial liabilities with other parties under potentially
adverse conditions.C. Non-derivative contracts that must be settled or that can be settled by the company's own equity instruments in
the future and the enterprise will deliver a variable amount of its own equity instruments according to the contract.D. Derivative contracts that must be settled or that can be settled by the company's own equity instruments in the
future except for derivatives contracts that exchange a fixed amount of cash or other financial assets with a fixed
amount of their own equity instruments.An equity instrument is a contract that proves it has a residual equity in the assets of an enterprise after deducting
all liabilities.If the Company cannot unconditionally avoid performing a contractual obligation by delivering cash or other
financial assets the contractual obligation is consistent with the definition of financial liability.If a financial instrument is required to be settled or can be settled by the Company's own equity instruments it is
necessary to consider whether the Company's own equity instruments used to settle the instrument are a substitute
for cash or other financial assets or to make the instrument holder enjoy the residual equity in the assets of the
issuer after deducting all liabilities. In the former case the instrument is the Company's financial liability; if it is
the latter the instrument is the Company's equity instrument.
(4) Fair value of financial instruments
The company uses valuation techniques that are applicable under current circumstances and that have sufficient
available data and other information support to determine the fair value of related financial assets and financial
liabilities. The company divides the input values used by valuation techniques into the following levels and uses
them in sequence:
* The first-level input value is the unadjusted quotation of the same assets or liabilities that can be obtained on
the measurement date in the active market;
* The second-level input value is the direct or indirect observable input value of the relevant assets or liabilities
other than the first-level input value including quotations of similar assets or liabilities in an active market;
quotations of same or similar assets or liabilities in an active market; other observable input value other than
quotations such as interest rate and yield curves that are observable during the normal quote interval; market-
validated input value etc.;
* The third-level input value is the unobservable input value of the relevant assets or liabilities including the
interest rate that cannot be directly observed or cannot be verified by observable market data stock volatility
future cash flow of the retirement obligation assumed in the business combination and financial forecasting made
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by its own data etc.
(5) Impairment of financial assets
On the basis of expected credit losses the Company performs impairment treatment on financial assets measured
at amortized cost and creditors’ investment etc. measured at fair value and whose changes are included in other
comprehensive income and recognize the provisions for loss.* Measurement of expected credit losses
Expected credit loss refers to the weighted average of credit losses of financial instruments weighted by the risk of
default. Credit loss refers to the difference between all contractual cash flows that the Company discounts at the
original actual interest rate and are receivable in accordance with contract and all cash flows expected to be
received that is the present value of all cash shortages. Among them for the purchase or source of financial
assets that have suffered credit impairment the Company discounts the financial assets at the actual interest rate
adjusted by credit.When measuring expected credit losses the Company individually evaluates credit risk for financial assets with
significantly different credit risks such as receivables involving litigation and arbitration with the other party or
receivables having obvious indications that the debtor is likely to be unable to fulfill its repayment obligations
and so on.Except for the financial assets that separately assess the credit risks the Company classified the account
receivable according to their characteristic of risks calculated the expected credit losses on basis of portfolio.Basis for determining the portfolio as follow:
A - Note receivable
Note receivable 1: bank acceptance
Note receivable 2: trade acceptance
B - Account receivable
Account receivable 1: receivable from clients
Account receivable 2: receivable from internal related party
C- Receivable financing
Receivable financing 1: bank acceptance
Receivable financing 2: trade acceptance
D - Other account receivables
Other account receivables 1: receivable from internal related party
Other account receivables 2: receivable from others
As for the note receivable account receivable receivable financing and other account receivable classified in
portfolio by referring to the experience of historical credit loss the expected credit loss is calculated by
combining the current situation and the forecast of future economic conditions.Except for the financial assets adopting simplified metering method the Company assesses at each balance sheet
date whether its credit risk has increased significantly since initial recognition. If credit risk has not increased
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significantly since initial recognition it is in the first stage the Company measures the loss provisions based on
the amount equivalent to the expected credit loss in the next 12 months; if the credit risk has increased
significantly since initial recognition but no credit impairment has occurred it is in the second stage the Company
measures the loss provisions based on the amount equivalent to the expected credit loss for the entire duration; if
credit impairment occurs after initial recognition it is in the third stage the Company measures the loss
provisions based on the amount equivalent to the expected credit loss for the entire duration.For financial
instruments with low credit risks at the balance sheet date the Company assumes that their credit risks have not
increased significantly since initial recognition.The Company evaluates the expected credit losses of financial instruments based on individual items and
portfolios. When assessing expected credit losses the Company considers reasonable and evidence-based
information about past events current conditions and forecasts of future economic conditions.When the Company no longer reasonably expects to be able to fully or partially recover the contractual cash flow
of a financial asset the Company directly writes down the book balance of the financial asset.* Assessment of a significant increase in credit risk:
The Company determines the relative changes in default risk of the financial instrument occurred in the expected
duration and assess whether the credit risks of financial instrument has increased significantly since the initial
recognition by comparing the risk of default of the financial instrument on the balance sheet date with the risk of
default of financial instrument on the initial recognition date. When determining whether the credit risk has
increased significantly since the initial recognition the Company considers reasonable and evidence-based
information that can be obtained without unnecessary additional costs or effort including forward-looking
information. The information considered by the Company includes:
A. The debtor fails to pay the principal and interest according to the contractual maturity date;
B. Serious worsening of external or internal credit rating (if any) of the financial instruments that have occurred or
are expected;
C. Serious deterioration of the debtor’s operating results that have occurred or are expected;
D. Changes in existing or anticipated technical market economic or legal circumstances that will have a material
adverse effect on the debtor's ability to repay the company.Based on the nature of financial instruments the Company assesses whether credit risk has increased significantly
on the basis of a single financial instrument or combination of financial instruments. When conducting an
assessment based on a combination of financial instruments the Company can classify financial instruments
based on common credit risk characteristics such as overdue information and credit risk ratings.The Company believes that financial assets are subject to default in the following circumstances:
The debtor is unlikely to pay the full amount to the Company and the assessment does not consider the Company
to take recourse actions such as realizing collateral (if held).* Financial assets with credit impairment
On the balance sheet date the Company assesses whether the credit of financial assets measured at amortized cost
and the credit of debt investments measured at fair value and whose changes are included in other comprehensive
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income has been impaired. When one or more events that adversely affect the expected future cash flows of a
financial asset occur the financial asset becomes a financial asset that has suffered credit impairment. Evidence
that credit impairment has occurred in financial assets includes the following observable information:
A. The issuer or the debtor has significant financial difficulties;
B. The debtor breaches the contract such as default or overdue repayment of interest or principal;
C. The Company gives concessions to the debtor that will not be made in any other circumstances for economic or
contractual considerations relating to the financial difficulties of the debtor;
D. The debtor is likely to go bankrupt or carry out other financial restructurings;
E. The financial difficulties of the issuer or the debtor have caused the active market of the financial asset to
disappear.* Presentation of expected credit loss provisions
In order to reflect the changes in the credit risk of financial instruments since the initial recognition the Company
re-measures the expected credit losses on each balance sheet date and the resulting increase or reversal of the loss
provisions shall be included in current profit and loss as impairment losses or gains. For financial assets measured
at amortized cost the loss provisions are written off against the book value of the financial assets listed in the
balance sheet; for debt investments measured at fair value and whose changes are included in other
comprehensive income the Company recognizes the loss provisions in other comprehensive income and does not
deduct the book value of the financial asset.* Write-off
If the Company no longer reasonably expects that the financial asset contract cash flow can be fully or partially
recovered directly write down the book balance of the financial asset. Such write-downs constitute the
termination of recognition for related financial assets. This usually occurs when the Company determines that the
debtor has no assets or sources of income to generate sufficient cash flow to repay the amount that will be written
down. However according to the Company's procedures for recovering the due amount the financial assets that
have been written down may still be affected by the execution activities.If the financial assets that have been written down are recovered afterwards they shall be included in the profit or
loss of the period being recovered as the reversal of the impairment loss
(6) Transfer of financial assets
The transfer of financial assets refers to the transfer or delivery of financial assets to the other party (the transferee)
other than the issuer of the financial assets.For financial assets that the Company has transferred almost all risks and rewards of ownership of financial assets
to the transferee terminate the recognition of the financial assets; if almost all the risks and rewards of ownership
of financial assets have been retained do not terminate the recognition of the financial assets.If the Company has neither transferred nor retained almost all the risks and rewards of ownership of financial
assets dispose as following situations: If the control of the financial assets is abandoned terminate the recognition
of the financial assets and determine the resulting assets and liabilities. If the control of the financial assets is not
abandoned determine the relevant financial assets according to the extent to which they continue to be involved in
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the transferred financial assets and determine the related liabilities accordingly.
(7) Balance-out between the financial assets and liabilities
As the Group has the legal right to balance out the financial liabilities by the net or liquidation of the financial
assets the balance-out sum between the financial assets and liabilities is listed in the balance sheet. In addition
the financial assets and liabilities are listed in the balance sheet without being balanced out.
11. Note receivable
Note receivable 1: bank acceptance
Note receivable 2: trade acceptance
The Company calculates expected credit losses by referring to historical credit loss experience taking into
account current conditions and forecasts of the future economic situation.
12.Account receivable
Account receivable 1: receivable from clients
Account receivable 2: receivable from internal related party
The Company calculates expected credit losses by referring to historical credit loss experience taking into
account current conditions and forecasts of the future economic situation.
13. Receivable financing
The note receivable and account receivable which are measured at fair value and whose changes are included in
other comprehensive income are classified as receivables financing within one year(including one year) from the
date of acquisition. Relevant accounting policy found more in 10. Financial Instrument in Note V.
14.Other account receivables
Determination method of expected credit loss and accounting treatment
Other account receivables 1: receivable from internal related party
Other account receivables 2: receivable from others
The Company calculates expected credit losses by referring to historical credit loss experience taking into
account current conditions and forecasts of the future economic situation.
15.Inventory
(1) Classification of inventories
The Company’s inventories are categorized into stock materials product in process and stock goods etc.
(2) Pricing for delivered inventories
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The cost of inventory at the time of acquisition and delivery is calculated according to the standard cost method
and the difference in cost that it should bear is carried forward at the end of the period and the standard cost is
adjusted to the actual cost.
(3) Recognition evidence for net realizable value of inventories and withdrawal method for inventory impairment
provision
Inventories as at period-end are priced at the lower of costs and net realizable values; at period end on the basis of
overall clearance about inventories inventory impairment provision is 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
Perpetual Inventory System is adopted by the Company and takes a physical inventory.
(5) Amortization of low-value consumables and wrappage
* Low-value consumables
The Company adopts one-off amortization method to amortize the low-value consumables.* Wrappage
The Company adopts one-off amortization method to amortize the wrappage at the time of receipt.
16.Contract assets
The Company presents the contract assets or contract liabilities in the balance sheet based on the relationship
between the performance obligation and the customer’s payment.Recognition method and standard of contract assets: contract assets refer to the right of a company to receive
consideration after transferring goods or providing services to customers and this right depends on other factors
besides the passage of time. The company's unconditional (that is only depending on the passage of time) right to
collect consideration from customers are separately listed as receivables.Method for determining expected credit losses of contract assets: the method for determining expected credit
losses of contract assets is consistent with the method for determining expected credit losses of accounts
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receivable.Accounting treatment method of expected credit losses of contract assets: if the contract assets are impaired the
company shall debit the "asset impairment loss" subject and credit the "contract asset impairment provision"
subject according to the amount that should be written down. When reversing the provision for asset impairment
that has already been withdrawn make opposite accounting entries.
17.Assets held for sale
The Company classifies non-current assets or disposal groups that meet all of the following conditions as held-for-
sale: according to the practice of selling this type of assets or disposal groups in a similar transaction the non-
current assets or disposal group can be sold immediately at its current condition; The sale is likely to occur that is
the Company has made resolution on the selling plan and obtained definite purchase commitment the selling is
estimated to be completed within one year. Those assets whose disposal is subject to approval from relevant
authority or supervisory department under relevant requirements are subject to that approval.Where the Company loses control over its subsidiary due to disposal of investment in the subsidiary whether or
not the Company retains part equity investment after such disposal investment in the subsidiary shall be classified
in its entirety as held for sale in the separate financial statement of the parent company subject to that the
investment in the subsidiary proposed to be disposed satisfies the conditions for being classified as held for sale
and all the assets and liabilities of the subsidiary shall be classified as held for sale in consolidated financial
statement.The purchase commitment identified refers to the legally binding purchase agreement entered into between the
Company and other parties which sets out certain major terms relating to transaction price time and adequately
stringent punishment for default which render an extremely minor possibility for material adjustment or
revocation of the agreement.Assets held for sale are measured at the lower of heir carrying value and fair value less selling expense. If the
carrying value is higher than fair value less selling expense the excess shall be recognized as impairment loss and
recorded in profit or loss for the period and allowance for impairment shall be provided for in respect of the
assets. In respect of impairment loss recognized for disposal group held for sale carrying value of the goodwill in
the disposal group shall be deducted first and then deduct the carrying value of the non-current assets within the
disposal group applicable to this measurement standard on a pro rata basis according to the proportion taken by
their carrying value.If the net amount of fair value of non-current assets held for sale less sales expense on subsequent balance sheet
date increases the amount previously reduced for accounting shall be recovered and reverted from the impairment
loss recognized after the asset is classified under the category of held for sale with the amount reverted recorded
in profit or loss for the period. Impairment loss recognized before the asset is classified under the category of held
for sale shall not be reverted.If the net amount of fair value of the disposal group held for sale on the subsequent
balance sheet date less sales expenses increases the amount reduced for accounting in previous periods shall be
restored and shall be reverted in the impairment loss recognized in respect of the non-current assets which are
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applicable to relevant measurement provisions after classification into the category of held for sale with the
reverted amount charged in profit or loss for the current period. The written-off carrying value of goodwill shall
not be reverted.The non-current assets in the non-current assets or disposal group held for sale is not depreciated or amortized
and the debt interests and other fees in the disposal group held for sale continue to be recognized.If the non-current assets or disposal group are no longer classified as held for sale since they no longer meet the
condition of being classified as held for sale or the non-current assets are removed from the disposal group held
for sale they will be measured at the lower of the following:
(i)The amount after their book value before they are classified as held for sale is adjusted based on the
depreciation amortization or impairment that should have been recognized given they are not classified as held
for sale;
(ii) The recoverable amount.
18. Long-term equity investment
Long-term equity investments refer to long-term equity investments in which the Company has control joint
control or significant influence over the invested party. Long-term equity investment without control or joint
control or significant influence of the Group is accounted for as available-for-sale financial assets or financial
assets measured by fair value and with variation reckoned into current gains/losses. As for other accounting
policies found more in “10. Financial instrument” in Note V.
(1) Determination of initial investment cost
Investment costs of the long-term equity investment are recognized by the follow according to different way of
acquirement:
* For a long-term equity investment acquired through a business combination involving enterprises under
common control the initial investment cost of the long-term equity investment shall be the absorbing party’s
share of the carrying amount of the owner’s equity under the consolidated financial statements of the ultimate
controlling party on the date of combination. The difference between the initial cost of the long-term equity
investment and the cash paid non-cash assets transferred as well as the book value of the debts borne by the
absorbing party shall offset against the capital reserve. If the capital reserve is insufficient to offset the retained
earnings shall be adjusted. If the consideration of the merger is satisfied by issue of equity securities the initial
investment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of
the owner’s equity under the consolidated financial statements of the ultimate controlling party on the date of
combination. With the total face value of the shares issued as share capital the difference between the initial cost
of the long-term equity investment and total face value of the shares issued shall be used to offset against the
capital reserve. If the capital reserve is insufficient to offset the retained earnings shall be adjusted. For business
combination resulted in an enterprise under common control by acquiring equity of the absorbing party under
common control through a stage-up approach with several transactions these transactions will be judged whether
they shall be treat as “transactions in a basket”. If they belong to “transactions in a basket” these transactions will
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be accounted for a transaction in obtaining control. If they are not belong to “transactions in a basket” the initial
investment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of
the owner’s equity under the consolidated financial statements of the ultimate controlling party on the date of
combination. The difference between the initial cost of the long-term equity investment and the aggregate of the
carrying amount of the long-term equity investment before merging and the carrying amount the additional
consideration paid for further share acquisition on the date of combination shall offset against the capital reserve.If the capital reserve is insufficient to offset the retained earnings shall be adjusted. Other comprehensive income
recognized as a result of the previously held equity investment accounted for using equity method on the date of
combination or recognized for available-for-sale financial assets will not be accounted for.* For the long-term equity investment obtained by business combination not under the same control the fair
value of the assets involved the equity instruments issued and the liabilities incurred or assumed on the
transaction date plus the combined cost directly related to the acquisition is used as the initial investment cost of
the long-term equity investment. The identifiable assets of the combined party and the liabilities (including
contingent liabilities) assumed by the combined party on the combining date are all measured at fair value
regardless of the amount of minority shareholders’ equity. The amount of the combined cost exceeding the fair
value of the identifiable net assets of the combined party obtained by the Company is recorded as goodwill and
the amount below the fair value of the identifiable net assets of the combining party is directly recognized in the
consolidated income statement.(For business combination resulted in an enterprise not under common control by
acquiring equity of the acquire under common control through a stage-up approach with several transactions
these transactions will be judged whether they shall be treat as “transactions in a basket”. If they belong to
“transactions in a basket” these transactions will be accounted for a transaction in obtaining control. If they are
not belonging to “transactions in a basket” the initial investment cost of the long-term equity investment
accounted for using cost method shall be the aggregate of the carrying amount of equity investment previously
held by the acquire and the additional investment cost. For previously held equity accounted for using equity
method relevant other comprehensive income will not be accounted for. For previously held equity investment
classified as available-for-sale financial asset the difference between its fair value and carrying amount as well as
the accumulated movement in fair value previously included in the other comprehensive income shall be
transferred to profit or loss for the current period.)
* Long-term investments obtained through other ways:
A. Initial investment cost of long-term equity investment obtained through cash payment is determined according
to actual payment for purchase;
B. Initial investment cost of long-term equity investment obtained through issuance of equity securities is
determined at fair value of such securities;
C. Initial investment cost of long-term equity investment (exchanged-in) obtained through exchange with non-
monetary assets which is of commercial nature is determined at fair value of the assets exchanged-out; otherwise
determined at carrying value of the assets exchanged-out if it is not of commercial nature;
D. Initial investment cost of long-term equity investment obtained through debt reorganization is determined at
fair value of such investment.
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(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 thereto. In the event of in-conformity between the accounting
policies and accounting periods of the invested party and the Company the financial statements of the invested
party shall be adjusted in conformity with the accounting policies and accounting periods of the Company.Investment gain and other comprehensive income shall be recognized accordingly. In respect of the transactions
between the Group and its associates and joint ventures in which the assets disposed of or sold are not classified as
operation the share of unrealized gain or loss arising from inter-group transactions shall be eliminated by the
portion attributable to the Company. Investment gain shall be recognized accordingly. However any unrealized
loss arising from inter-group transactions between the Group and an invested party is not eliminated to the extent
that the loss is impairment loss of the transferred assets. In the event that the Group disposed of an asset classified
as operation to its joint ventures or associates which resulted in acquisition of long-term equity investment by the
investor without obtaining control the initial investment cost of additional long-term equity investment shall be
the fair value of disposed operation. The difference between initial investment cost and the carrying value of
disposed operation will be fully included in profit or loss for the current period. In the event that the Group sold an
asset classified as operation to its associates or joint ventures the difference between the carrying value of
consideration received and operation shall be fully included in profit or loss for the current period. In the event
that the Company acquired an asset which formed an operation from its associates or joint ventures relevanttransaction shall be accounted for in accordance with “Accounting Standards for Business Enterprises No. 20“Business combination”. All profit or loss related to the transaction shall be accounted for.The Group’s share of net losses of the invested party shall be recognized to the extent that the carrying amount of
the long-term equity investment together with any long-term interests that in substance form part of the investor’s
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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 beaccounted for in accordance with the relevant accounting policies as described in Note V-6 “Preparation Methodof the Consolidated Financial Statements”.On disposal of a long-term equity investment otherwise the difference between the carrying amount of the
investment and the actual consideration paid is recognized through profit or loss in the current period.In respect of long-term equity investment accounted for using equity method with the remaining equity interest
after disposal also accounted for using equity method other comprehensive income previously under owners’
equity shall be accounted for in accordance with the same accounting treatment for direct disposal of relevant
asset or liability by invested party on pro rata basis at the time of disposal. The owners’ equity recognized for the
movement of other owners’ equity (excluding net profit or loss other comprehensive income and profit
distribution of invested party) shall be transferred to profit or loss for the current period on pro rata basis.In respect of long-term equity investment accounted for using cost method with the remaining equity interest after
disposal also accounted for cost equity method other comprehensive income measured and reckoned under equity
method or financial instrument before control of the invested party unit acquired shall be accounted for in
accordance with the same accounting treatment for direct disposal of relevant asset or liability by invested party
on pro rata basis at the time of disposal and shall be transferred to profit or loss for the current period on pro rata
basis; among the net assets of invested party unit recognized by equity method (excluding net profit or loss other
comprehensive income and profit distribution of invested party) shall be transferred to profit or loss for the current
period on pro rata basis.In the event of loss of control over invested party due to partial disposal of equity investment by the Group in
preparing separate financial statements the remaining equity interest which can apply common control or impose
significant influence over the invested party after disposal shall be accounted for using equity method. Such
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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 “transactions in a basket” each transaction
shall be accounted for as a single transaction of disposing equity investment of subsidiary and loss of control. The
difference between the disposal consideration for each transaction and the carrying amount of the corresponding
long-term equity investment of disposed equity interest before loss of control shall initially recognized as other
comprehensive income and subsequently transferred to profit or loss arising from loss of control for the current
period upon loss of control.
(3) Impairment test method and withdrawal method for impairment provision
Found more in Note V-25 “impairment of long-term assets”.
(4) Criteria of joint control and significant influence
Joint control is the Company’s contractually agreed sharing of control over an arrangement which relevant
activities of such arrangement must be decided by unanimously agreement from parties who share control. All the
participants or participant group whether have controlling over such arrangement as a group or not shall be judge
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firstly then judge that whether the decision-making for such arrangement are agreed unanimity by the participants
or not.Significant influence is the power of the Company to participate in the financial and operating policy decisions of
an invested party but to fail to control or joint control the formulation of such policies together with other parties.While recognizing whether have significant influence by invested party the potential factors of voting power as
current convertible bonds and current executable warrant of the invested party held by investors and other parties
shall be thank over.
19.Investment real estate
Measurement model of investment real estate
Cost measurement
Depreciation or amortization
Investment real estate is stated at cost. During which the cost of externally purchased properties held-for-
investment includes purchasing price relevant taxes and surcharges and other expenses which are directly
attributable to the asset. Cost of self construction of properties held for investment is composed of necessary
expenses occurred for constructing those assets to a state expected to be available for use. Properties held for
investment by investors are stated at the value agreed in an investment contract or agreement but those under
contract or agreement without fair value are stated at fair value.The Company adopts cost methodology amid subsequent measurement of properties held for investment while
depreciation and amortization is calculated using the straight-line method according to their estimated useful lives.The basis of provision for impairment of properties held for investment is referred to Note V- 25 “Impairment oflong-term assets”.
20. Fixed assets
(1) Recognition conditions
Fixed assets refer to the tangible assets for production of products provision of labor lease or operation with a
service life excess one year and has more unit value.
(2) Depreciation methods
Category Depreciation method Years of depreciation Scrap value rate Yearly depreciation rate
House and Building Straight-line depreciation 20~35 5% 2.71~4.75
Machinery equipment Straight-line depreciation 10 5% 9.50
Transportation equipment Straight-line depreciation 4~5 5% 19.00~23.75
Electronic and other Straight-line depreciation 3～10 5% 9.50～31.67
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equipment
For the fixed assets with impairment provision the depreciation amount shall be calculated after deducting the
accumulated amount of impairment provision for fixed assets
(3) Recognition basis valuation and depreciation method for financial lease assets
The Company affirms those that conform to below one or several criteria as the finance lease fixed assets:
* Agreed in the lease contract (or made a reasonable judgment according to the correlated conditions on the lease
commencement date) the ownership of lease fixed assets can be transferred to the Company after the expiry of
the lease period;
* The Company has the option to purchase or lease the fixed assets and the purchase price is estimated to be
much less than the fair value of the lease of fixed assets when exercises the options so whether the Company will
exercise the option can be reasonably determined on the lease commencement date;
* Even though the fixed asset ownership is not transferred the lease term accounts for 75% of the service life of
the lease fixed assets;
* The present value of the Company’s of minimum lease payment on the lease commencement date is equivalent
to 90% or more of the fair value of the lease fixed assets on the lease commencement date; the present value of the
leaser’s of minimum lease payment on the lease commencement date is equivalent to 90% or more of the fair
value of the lease fixed assets on the lease commencement date;
* The leased assets with special properties can only be used by the Company without major modifications. The
fixed assets rented by finance leases is calculated as the book value according to the lower one between the fair
value of leased assets on the lease commencement date and the present value of the minimum lease payments.
(4) The impairment test method and provision for impairment of fixed assetsThe impairment test method and provision for impairment of fixed assets found more in Note V-25.“Impairmentof long-term assets”.
21.Construction in progress
From the date on which the fixed assets built by the Company come into an expected usable state the 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.The basis of provision for impairment of properties held for construction in process is referred to Note V-“25.Impairment of long-term assets”
22. Borrowing costs
(1) Recognition of capitalization of borrowing costs
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Borrowing costs comprise interest occurred amortization of discounts or premiums ancillary costs and exchange
differences in connection with foreign currency borrowings. The borrowing costs of the Company which incur
from the special borrowings occupied by the fixed assets that need more than one year (including one year) for
construction development of investment properties or inventories or from general borrowings are capitalized and
recorded in relevant assets costs; other borrowing costs are recognized as expenses and recorded in the profit or
loss in the period when they are occurred. Relevant borrowing costs start to be capitalized when all of the
following three conditions are met:
* Capital expenditure has been occurred;
* Borrowing costs have been occurred;
* Acquisition or construction necessary for the assets to come into an expected usable state has been carried out.
(2) Period of capitalization of borrowing costs
Borrowing costs arising from purchasing fixed asset investment real estate and inventory and occurred after such
assets reached to its intended use of status or sales than reckoned into assets costs while satisfy the above
mentioned capitalization condition; capitalization of borrowing costs shall be suspended and recognized as current
expenditure during periods in which construction of fixed assets investment real estate and inventory are
interrupted abnormally when the interruption is for a continuous period of more than 3 months until the
acquisition construction or production of the qualifying asset is resumed; capitalization shall discontinue when
the qualifying asset is ready for its intended use or sale the borrowing costs occurred subsequently shall reckoned
into financial expenses while occurring for the current period.
(3) Measure of capitalization for borrowing cost
In respect of the special borrowings borrowed for acquisition construction or production and development of the
assets qualified for capitalization the amount of interests expenses of the special borrowings actually occurred in
the period less interest income derived from unused borrowings deposited in banks or less investment income
derived from provisional investment are recognized.With respect to the general borrowings occupied for acquisition construction or production and development of
the assets qualified for capitalization the capitalized interest amount for general borrowings is calculated and
recognized by multiplying a weighted average of the accumulated expenditure on the assets in excess of the
expenditure on the assets of the special borrowings by a capitalization rate for general borrowings. The
capitalization rate is determined by calculation of the weighted average interest rate of the general borrowings.
23. Right-of-use assets
The right-of-use asset refers to the right of the Company as the lessee to use the leased asset during the lease
term.On the commencement date of the lease term the Company recognizes the right-of-use assets for leases other than
short-term leases and leases of low-value assets. Right-of-use assets are initially measured at cost. The cost
includes the initial measurement amount of the lease liability; the lease payments made on or before the
commencement date of the lease term deduct the relevant amount of the lease incentive already enjoyed if there is
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a lease incentive; the initial direct expenses incurred by the lessee; the cost expected to be incurred by the lessee to
dismantle and remove the leased assets restore the site where the leased assets locate or restore the leased assets
to the condition agreed upon in the lease terms but this does not include the cost attributable to the production of
inventory.The Company subsequently uses the straight-line method to depreciate the right-of-use assets. If it can be
reasonably determined that the ownership of the leased asset can be obtained at the expiration of the lease term
the Company shall accrue depreciation over the remaining useful life of the leased asset. If it cannot be reasonably
determined that the ownership of the leased asset can be obtained at the expiration of the lease term the Company
shall accrue depreciation within the shorter of the lease term and the remaining useful life of the leased asset.When the recoverable amount is lower than the book value of the right-of-use asset the Company shall write
down its book value to the recoverable amount.
24. Intangible assets
(1) Measurement use of life and impairment testing
* Measurement of intangible assets
The intangible assets of the Company including land use rights patented technology and non-patents technology
etc.The cost of a purchased intangible asset shall be determined by the expenditure actually occurred and other related
costs.The cost of an intangible asset contributed by an investor shall be determined in accordance with the value
stipulated in the investment contract or agreement except where the value stipulated in the contract or agreement
is not fair.The intangible assets acquired through exchange of non-monetary assets which is commercial in substance is
carried at the fair value of the assets exchanged out; for those not commercial in substance they are carried at the
carrying amount of the assets exchanged out.The intangible assets acquired through debt reorganization are recognized at the fair value.* Amortization methods and time limit for intangible assets:
Land use right of the company had average amortization by the transfer years from the beginning date of transfer
(date of getting land use light); Patented technology non-patented technology and other intangible assets of the
Company are amortized by straight-line method with the shortest terms among expected useful life benefit years
regulated in the contract and effective age regulated by the laws. The amortization amount shall count in relevant
assets costs and current gains/losses according to the benefit object.As for the intangible assets as trademark with uncertain benefit terms amortization shall not be carried.Impairment testing methods and Accrued for depreciation reserves for the intangible assets found more in Note V-
25 “Impairment of long-term assets”.
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(2) Internal accounting policies relating to research and development expenditures
Expenses incurred during the research phase are recognized as profit or loss in the current period; expenses
incurred during the development phase that satisfy the following conditions are recognized as intangible assets
(patented technology and non-patents technology):
* It is technically feasible that the intangible asset can be used or sold upon completion;
* There is intention to complete the intangible asset for use or sale;
* The products produced using the intangible asset has a market or the intangible asset itself has a market;
* There is sufficient support in terms of technology financial resources and other resources in order to complete
the development of the intangible asset and there is capability to use or sell the intangible asset;
* The expenses attributable to the development phase of the intangible asset can be measured reliably.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
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recoverable amount of the asset group to which the asset belongs. The asset group is the smallest group of assets
capable of generating cash flows independently.For the purpose of impairment testing the carrying amount of goodwill presented separately in the financial
statements shall be allocated to the asset groups or group of assets benefiting from synergy of business
combination. If the recoverable amount is less than the carrying amount the Group shall recognize an impairment
loss. The amount of impairment loss shall first reduce the carrying amount of any goodwill allocated to the asset
group or set of asset groups and then reduce the carrying amount of other assets (other than goodwill) within the
asset group or set of asset groups pro rata on the basis of the carrying amount of each asset.An impairment loss recognized on the aforesaid assets shall not be reversed in a subsequent period in respect of
the part whose value can be recovered.
26. Long-term deferred expenses
Long-term expenses to be amortized of the Company the expenses that are already charged and with the beneficial
term of more than one year are evenly amortized over the beneficial term. For the long-term deferred expense
items cannot benefit the subsequent accounting periods the amortized value of such items is all recorded in the
profit or loss during recognition.
27. Contract liability
The Company lists the obligation to transfer goods or provide labor services to customers for the consideration
received or receivable from customers as contractual liabilities such as the amount that the company has received
before the transfer of the promissory goods.
28. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when the staff providing service to the Company the short-term remuneration actual
occurred shall recognized as liability and reckoned into current gains/losses. During the accounting period when
staff providing service to the Company the actual short-term compensation occurred shall recognized as liabilities
and reckoned into current gains/losses except for those in line with accounting standards or allow to reckoned
into capital costs; the welfare occurred shall reckoned into current gains/losses or relevant asses costs while
actually occurred. The employee compensation shall recognize as liabilities and reckoned into current gains/losses
or relevant assets costs while actually occurred. The employee benefits that belong to non-monetary benefits are
measured in accordance with the fair value; the social insurances including the medical insurance work-injury
insurance and maternity insurance and the housing fund that the enterprise pays for the employees as well as the
labor union expenditure and employee education funds withdrawn by rule should be calculated and determined as
the corresponding compensation amount and determined the corresponding liabilities in accordance with the
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specified withdrawing basis and proportion and reckoned in the current profits and losses or relevant asset costs
in the accounting period that the employees provide services.
(2) Accounting treatment for post-employment benefit
The post-employment benefit included the defined contribution plans and defined benefit plans. Post-employment
benefits plan refers to the agreement about the post-employment benefits between the enterprise and employees
or the regulations or measures the enterprise established for providing post-employment benefits to employees.Thereinto the defined contribution plan refers to the post-employment benefits plan that the enterprise doesn’t
undertake the obligation of payment after depositing the fixed charges to the independent fund; the defined benefit
plans refers to post-employment benefits plans except the defined contribution plan.
(3) Accounting treatment for retirement benefits
When the Company terminates the employment relationship with employees before the end of the employment
contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy the
Company shall recognize employee compensation liabilities arising from compensation for staff dismissal and
included in profit or loss for the current period when the Company cannot revoke unilaterally compensation for
dismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Company
recognize cost and expenses related to payment of compensation for dismissal and restructuring whichever is
earlier.The early retirement plan shall be accounted for in accordance with the accounting principles for
compensation for termination of employment. The salaries or wages and the social contributions to be paid for the
employees who retire before schedule from the date on which the employees stop rendering services to the
scheduled retirement date shall be recognized (as compensation for termination of employment) in the current
profit or loss by the Group if the recognition principles for provisions are satisfied.
(4) Accounting treatment for other long-term employee benefits
Except for the compulsory insurance the Company provides the supplementary retirement benefits to the
employees satisfying some conditions the supplementary retirement benefits belong to the defined benefit plans
and the defined benefitliability confirmed on the balance sheet is the value by subtracting the fair value of plan
assets from the present value of defined benefit obligation. The defined benefit obligation is annually calculated in
accordance with the expected accumulated welfare unit method by the independent actuary by adopting the
treasury bond rate with similar obligation term and currency. The service charges related to the supplementary
retirement benefits (including the service costs of the current period the previous service costs and the settlement
gains or losses) and the net interest are reckoned in the current profits and losses or other asset costs the changes
generated by recalculating the net liabilities of defined benefit plans or net assets should be reckoned in other
consolidated income.
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29. Lease liability
Substantial On the commencement date of the lease term the Company recognizes the present value of the unpaid
lease payments as lease liabilities. Lease payments include the following five items: fixed payments and in-
substance fixed payments if there is a lease incentive deduct the amount related to the lease incentive; variable
lease payments that depend on an index or ratio which are determined at the initial measurement according to the
index or ratio determination on the commencement date of lease term; exercise price for a purchase option
provided that the lessee is reasonably certain that the option shall be exercised; payments for exercising the option
to terminate the lease provided that the lease term reflects that the lessee shall exercise the option to terminate the
lease option; estimated payments due based on guaranteed residual value provided by the lessee.When calculating the present value of lease payments the interest rate implicit in the lease is used as the discount
rate. If the interest rate implicit in the lease cannot be determined the company’s incremental borrowing rate is
used as the discount rate. The Company calculates the interest expense of the lease liability in each period of the
lease term according to the fixed periodic interest rate and includes it in the current profit and loss unless it is
otherwise stipulated to be included in the cost of the relevant assets. Variable lease payments that are not included
in the measurement of lease liabilities are included in the current profit and loss when they are actually incurred
unless otherwise stipulated to be included in the cost of the relevant assets. After the commencement date of the
lease term when there is a change in the in-substance fixed payment or a change in the estimated amount payable
for the guaranteed residual value or a change in the index or ratio used to determine the lease payment or a
change in the evaluation results of the purchase option renewal option or termination option or when the actual
exercise situation changes the Company shall re-measure the lease liability according to the present value of the
changed lease payments.
30. 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
31. Share-based payment
The Company’s share-based payment is a transaction that grants equity instruments or assumes liabilities
determined on the basis of equity instruments in order to obtain services provided by employees or other parties.
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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 the services obtained in the current period
are included in related costs or expenses based on the fair value on the grant date and the capital reserve shall be
increased accordingly.For share-based payments that cannot be vested in the end costs or expenses shall not be recognized unless the
vesting conditions are market conditions or non-vesting conditions. At this time regardless of whether the market
conditions or the non-vesting conditions are met as long as all non-market conditions in the vesting conditions are
met it is deemed as vesting.If the terms of equity-settled share-based payment are modified at least the services obtained should be confirmed
in accordance with the unmodified terms. In addition any modification that increases the fair value of the equity
instruments granted or a change that is beneficial to employees on the modification date is recognized as an
increase in services received.If the equity-settled share payment is canceled it will be treated as an accelerated vesting on the cancellation day
and the unconfirmed amount will be confirmed immediately. If an employee or other party can choose to meet the
non-vesting conditions but fails to meet within the waiting period it shall be treated as cancellation of equity-
settled share-based payment. However if a new equity instrument is granted and it is determined on the date of
grant of the new equity instrument that the new equity instrument granted is used to replace the cancelled equity
instrument the granted substitute equity instruments shall be treated in the same way as the modification of the
original equity instrument terms and conditions.
(2) Cash-settled share-based payment and equity instruments
Cash-settled share-based payments are measured at the fair value of the liabilities calculated and determined on
the basis of shares or other equity instruments undertaken by the Company. If it’s vested immediately after the
grant the fair value of the liabilities assumed on the date of the grant is included in the cost or expense and the
liability is increased accordingly. If the service within the waiting period is completed or the specified
performance conditions are met the service obtained in the current period shall be included in the relevant costs
or expenses based on the best estimate of the vesting situation within the waiting periodand the fair value of the
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liabilities assumed to increase the corresponding liabilities. On each balance sheet date and settlement date before
the settlement of the relevant liabilities the fair value of the liabilities is remeasured and the changes are included
in the current profit and loss.
32. Revenue
Accounting policies used in revenue recognition and measurement
1)Revenue recognition principle
On the starting date of the contract the company evaluates the contract identifies each individual performance
obligation contained in the contract and determines whether each individual performance obligation is performed
within a certain period of time or at a certain point in time.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 to the customer that is the customer has the legal ownership of
the goods; * The company has transferred the goods to the customer in kind that is the customer has physically
taken possession of the goods; * The company has transferred the main risks and rewards of the ownership of
the goods to the customer that is the customer has obtained the main risks and rewards of the ownership of the
goods; * The customer has accepted the goods; * Other signs that the customer has obtained control of the
goods.
2)Revenue measurement principle
* The company measures revenue based on the transaction price allocated to each individual performance
obligation. The transaction price is the amount of consideration that the company expects to be entitled to receive
due to the transfer of goods or services to customers and does not include payments collected on behalf of third
parties and payments expected to be returned to customers.* If there is variable consideration in the contract the company shall determine the best estimate of the variable
consideration according to the expected value or the most likely amount but the transaction price including the
variable consideration shall not exceed the amount of cumulatively recognized revenue that is unlikely to be
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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
N/A
33. Government grants
(1) Types
Government grants are transfer of monetary assets or non-monetary assets from the government to the Group at
no consideration. Government grants are classified into government grants related to assets and government grants
related to income.As for the assistance object not well-defined in government’s documents the classification criteria for assets-
related or income-related grants are as: whether the grants turn to long-term assets due to purchasing for
construction or other means.
(2) Recognition and measure
The government grants shall be recognized while meet the additional conditions of the grants and amount is
actually can be obtained.If a government grant is in the form of a transfer of monetary asset the item shall be measured at the amount
received or receivable. If a government grant is in the form of a transfer of non-monetary asset the item shall be
measured at fair value. If the fair value can not be reliably acquired than measured by nominal amount.
(3) Accounting treatment
152无锡威孚高科技集团股份有限公司2022报告全文
A government grant related to an asset shall be recognized as deferred income and reckoned into current
gains/losses according to the depreciation process in use life of such assets.A government grant related to income if they making up relevant expenses and losses for later period than
recognized deferred income and should reckoned into current gain/loss during the period while relevant expenses
are recognized; if they making up relevant expenses and losses that occurred than reckoned into current
gains/losses.A government grant related to daily operation activity of the Company should reckoned into other income; those
without related to daily operation activity should reckoned into non-operation income and expenses.The financial discount funds received by the Company shall write down relevant borrowing costs.
34. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets or deferred income tax liabilities are realized based on the difference between the
carrying values of assets and liabilities and their taxation bases (as for the ones did not recognized as assets and
liability and with taxation basis recognized in line with tax regulations different between tax base and its book
value) at the tax rates applicable in the periods when the Company recovers such assets or settles such liabilities.
(2) Deferred income tax assets are realized to the extent that it is probable to obtain such taxable income which is
used to set off the deductible temporary difference. As at the balance sheet date if there is obvious evidence
showing that it is probable to obtain sufficient taxable income to set off the deductible temporary difference in
future periods deferred income tax assets not realized in previous accounting periods shall be realized.
(3) On balance sheet date re-review shall be made in respect of the carrying value of deferred income tax assets.
If it is impossible to obtain sufficient taxable income to set off the benefits of deferred income tax assets in future
periods then the carrying value of deferred income tax assets shall be reduced accordingly. If it is probable to
obtain sufficient taxable income then the amount reduced shall be switched back.
(4) Current income tax and deferred income tax considered as income tax expenses or incomes reckoned into
current gains/losses excluding the follow income tax:
* Enterprise combination;
* Transactions or events recognized in owner’s equity directly
35. Lease
(1) Accounting for operating lease
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
153无锡威孚高科技集团股份有限公司2022报告全文
lessee and the lessor shall separate the leased and non leased parts.
(1) The company as lessee
For the general accounting treatment of the company as the lessee see Note III 20 “Right-to-use assets” and Note
III-26 “Lease liabilities”.For short-term leases with a lease term of no more than 12 months and low value asset leases with a lower value
when a single asset is new the company chooses not to recognize the right to use assets and lease liabilities and
the relevant rental expenses are included in the current profit and loss or the cost of relevant assets according to
the straight-line method in each period of the lease term.If the lease changes and meets the following conditions at the same time the company will treat the lease change
as a separate lease for Accounting: the lease change expands the lease scope by adding the right to use one or
more leased assets; The increased consideration is equivalent to the amount adjusted according to the conditions
of the contract at the separate price for most of the expansion of the lease scope. If the lease change is not
accounted for as a separate lease on the effective date of the lease change the company will re allocate the
consideration of the contract after the change re determine the lease term and re measure the lease liability
according to the present value calculated by the lease payment after the change and the revised discount rate.
(2) The company as lessor
On the lease commencement date the company classifies leases that have substantially transferred almost all the
risks and rewards related to the ownership of the leased assets as financial leases and all other leases are operating
leases.
1) Operating lease
During each period of the lease term the company recognizes the lease receipts as rental income according to the
straight-line method and the initial direct expenses incurred are capitalized amortized on the same basis as the
recognition of rental income and included in the current profit and loss by stages. The variable lease payments
obtained by the company related to operating leases that are not included in the lease receipts are included in the
current profits and losses when actually incurred.
2) Finance lease
On the beginning date of the lease term the company recognizes the financial lease receivables according to the
net amount of the lease investment (the sum of the unsecured residual value and the present value of the lease
collection not received on the beginning date of the lease term discounted according to the embedded interest rate
of the lease) and terminates the recognition of the financial lease assets. During each period of the lease term the
company calculates and recognizes the interest income according to the interest rate embedded in the lease. The
amount of variable lease payments obtained by the company that are not included in the measurement of net lease
investment shall be included in the current profit and loss when actually incurred.
(3) Sale leaseback
The company evaluates and determines whether the asset transfer in the sale and leaseback transaction is a sale in
accordance with the accounting standards for Business Enterprises No. 14 - revenue.
1) The company as lessee
If the asset transfer in the sale and leaseback transaction is sales the company measures the right to use assets
154无锡威孚高科技集团股份有限公司2022报告全文
formed by the sale and leaseback according to the part of the book value of the original assets related to the right
to use obtained by the leaseback and only recognizes the relevant gains or losses on the rights transferred to the
lessor.If the asset transfer in the sale and leaseback transaction does not belong to sales the company will continue to
recognize the transferred asset recognize a financial liability equal to the transfer income and carry out
accounting treatment for the financial liability in accordance with the accounting standards for Business
Enterprises No. 22 - recognition and measurement of financial instruments.
2) The company as lessor
If the asset transfer in the sale and leaseback transaction belongs to sales the company will conduct accounting
treatment for asset purchase in accordance with other applicable accounting standards for business enterprises
and accounting treatment for asset lease in accordance with accounting standards for Business Enterprises No. 21
- leasing.If the asset transfer in the sale and leaseback transaction does not belong to sales the company does not recognize
the transferred asset but recognizes a financial asset equal to the transfer income and carries out accounting
treatment for the financial asset in accordance with the accounting standards for Business Enterprises No. 22 -
recognition and measurement of financial instruments.
(2) Accounting treatment for financing lease
Not applicable
36. Other major accounting policy and estimation
In the process of applying the Company's accounting policies due to the inherent uncertainty of business activities
the Company needs to judge estimate and assume the book value of the report items cannot be accurately
measured. These judgments estimates and assumptions are made on the basis of the historical experience of the
Company’s management and by considering other relevant factors which shall impact the reported amounts of
income expenses assets and liabilities and the disclosure of contingent liabilities on the balance sheet date.However the actual results caused by the estimated uncertainties may differ from the management's current
estimates of the Company so as to carry out the significant adjustments to the book value of the assets or liabilities
to be affected.The Company regularly reviews the aforementioned judgments estimates and assumptions on the basis of
continuing operations the changes in accounting estimates only affect the current period of which the impacts are
recognized in the current period; the changes in accounting estimates not only affect the current period but also
the future periods of which the impacts are recognized in the current and future periods.On the balance sheet date the important areas of the financial statements that the Company needs to judge
estimate and assume are as follows:
(1) Provision for bad debts
The Company has used the expected credit loss model to assess the impairment of financial instruments. The
application of the expected credit loss model requires significant judgement and estimates and must consider all
155无锡威孚高科技集团股份有限公司2022报告全文
reasonable and evidence-based information including forward-looking information. In making such judgments
and estimates the Company infers the expected changes in debtors’ credit risks based on historical repayment data
combined with economic policies macroeconomic indicators industry risks and other factors.
(2) Inventory falling price reserves
According to the inventory accounting policies the Company measures by the comparison between the cost and
the net realizable value if the cost is higher than the net realizable value and the old and unsalable inventories the
Company calculates and withdraws the inventory impairment. The inventory devalues to the net realizable value
by evaluating the inventory’s vendibility and net realizable value. To identify the inventory impairment the
management needs to obtain the unambiguous evidences and consider the purpose to hold the inventory and
judge and estimate the impacts of events after the balance sheet date. The actual results and the differences
between the previously estimated results shall affect the book value of inventory and the provision or return of the
inventory impairment during the period estimated to be changed.
(3) Preparation for the impairment of non-financial 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 the relevant
information can be obtained including the prediction related to the output price and related operating expenses
based on the reasonable and supportable assumptions.The Company tests whether its business reputation decreases in value every year which requires to estimating the
present value of the asset group allocated with goodwill or the future cash flow combined by the asset group.When estimating the present value of the future cash flow the Company needs to estimate the future cash flows
generated by the asset group or the combination of asset group and select the proper discount rate to determine
the present value of the future cash flows.
(4) Depreciation and amortization
The Company depreciates and amortizes the investment property fixed assets and intangible assets according to
the straight-line method in the service life after considering the residual value. The Company regularly reviews
the service life to determine the depreciation and amortization expense amount to be reckoned in each reporting
156无锡威孚高科技集团股份有限公司2022报告全文
period. The service life is determined by the Company based on the past experience of similar assets and the
expected technological updating. If the previous estimates have significant changes the depreciation and
amortization expense shall be adjusted in future periods.
(5) Fair value of financial instrument
Financial instruments that do not have active markets to provide quotes need to use valuation techniques to
determine fair value.Valuation techniques include the latest transaction information discounted cash flow methods
and option pricing models.The Company has established a set of work processes to ensure that qualified personnel
are responsible for the calculation verification and review of fair value.The valuation model used by the
Company uses the market information as much as possible and uses the Company-specific information as little as
possible.It should be noted that part of the information used in the valuation model requires management’s
estimation (such as discount rate target exchange rate volatility etc.).The Company regularly reviews the above
estimates and assumptions and makes adjustments if necessary.
(6) Income tax
In the Company’s normal business activities the final tax treatment and calculation of some transactions have
some uncertainties. Whether some projects can be disbursed from the cost and expenses before taxes requires
needs to get approval from the tax authorities. If the final affirmation of these tax matters differs from the initially
estimated amount the difference shall have an impact on its current and deferred income taxes during the final
identification period.
37.Changes of important accounting policies and estimation
(1) Changes of important accounting policies
□Applicable □Not applicable
Content and reasons for changes in accounting policies Approval process Note
On Dec. 30 2021 the Ministry of Finance issued Interpretation No. 15 of the
Not applicable
Accounting Standards for Business Enterprises
On Nov. 30 2021 the Ministry of Finance issued Interpretation No. 16 of the
Not applicable
Accounting Standards for Business Enterprises
(1) Significant changes in accounting policy
1) On Dec. 30 2021 the Ministry of Finance issued Interpretation No. 15 of the Accounting Standards for
Business Enterprises (Cai Kuai [2021] No. 35 hereinafter referred to as “Interpretation No. 15”).* Accounting treatment for trial operation sales
Interpretation No. 15 stipulates the accounting treatment and presentation of products or by-products generated
during the development process or before fixed assets reach their intended usable state for external sales by
enterprises. It also stipulates that the net amount of trial operation sales revenue after offsetting costs should not
be offset against fixed asset costs or research and development expenses. This regulation came into effect from
January 1 2022 and retrospective adjustments shall be made to trial sales that occurred between the beginning of
the earliest period for financial statement presentation and January 1 2022. The implementation of this regulation
has not had a significant impact on the company’s financial condition and operating results.
157无锡威孚高科技集团股份有限公司2022报告全文
* Judgment on loss contracts
Interpretation No. 15 clarifies that the “cost of performing the contract” considered by enterprises in determining
whether the contract constitutes a loss contract should include both the incremental cost of performing the contract
and the allocation amount of other costs directly related to performing the contract. This regulation came into
effect on January 1 2022 and the Company shall implement such provision for contracts whose obligation hasn’t
been fulfilled by January 1 2022. The cumulative impact shall be adjusted to the retained earnings and other
related financial statement accounts at the beginning of the year on the implementation date without adjusting the
comparative financial statement data in the previous period. The implementation of this regulation has not had a
significant impact on the company’s financial condition and operating results.
2) On Nov. 30 2022 the Ministry of Finance issued Interpretation No. 16 of the Accounting Standards for
Business Enterprises (Cai Kuai [2022] No. 31 hereinafter referred to as “Interpretation No. 16”).* Accounting treatment for the income tax impact of dividends related to financial instruments classified as
equity instruments by the issuer
Interpretation No. 16 stipulates that for financial instruments classified as equity instruments by enterprises if the
relevant dividend expenses are deducted before corporate income tax in accordance with relevant tax policies the
income tax impact related to the dividends should be recognized when determining the payable dividends and the
accounting treatment should be consistent with the accounting treatment used in past transactions or events that
generate distributable profits. The impact of dividend income tax shall be booked into the current period’s profit
or loss or owner’s equity (including other comprehensive income items). This regulation came into effect from the
date of promulgation. The relevant dividends payable in case of occurring between January 1 2022 and the
implementation date shall be adjusted in accordance with this regulation; If the relevant dividends were paid
before January 1 2022 and the relevant financial instruments have not been derecognized on January 1 2022
retrospective adjustments should be made. The implementation of this regulation has not had a significant impact
on the company's financial condition and operating results.* Accounting treatment for enterprises to modify cash settled share-based payments to equity settled share-based
payments
Interpretation No. 16 clarifies that if an enterprise modifies the terms and conditions of a cash settled share-based
payment agreement to become an equity settled share-based payment on the modification date (whether occurring
during the waiting period or after the end) the equity settled share-based payment shall be measured at the fair
value of the granted equity instrument on the date of modification and the services obtained shall be included in
the capital reserve and meanwhile the recognition of cash settled share-based payments that have been recognized
as liabilities on the modification date shall be terminated and the difference between the two is recorded in the
current profit and loss. This regulation shall come into effect from the date of promulgation and any new
transactions occurring from January 1 2022 to the implementation date shall be adjusted in accordance with such
regulation; If the relevant transactions that occurred before January 1 2022 were not processed in accordance with
this regulation retrospective adjustments should be made and the cumulative impact should be adjusted to the
retained earnings and other related items as of January 1 2022 without adjusting the comparative financial
158无锡威孚高科技集团股份有限公司2022报告全文
statement data in the previous period. The implementation of this regulation has not had a significant impact on
the company’s financial condition and operating results.
(2) Changes of important accounting estimations
□Applicable □Not applicable
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%(VHIT，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% (IRD America Borit
America) 22% (IRDDenmark)
Corporation income tax Taxable income
24%(VHIT，Italy)
25%(BoritBelgium)
Educational surtax Turnover tax payable 5%
Disclose reasons for different taxpaying body
Taxpaying body Income tax rate
WFCA WFTR WFAS WFLD(Nanchang) WFDT Borit 25%
The Company WFJN WFLD WFTT WFLD(Chongqing) WFAMWFMAWFSC 15%
WFLD(Wuhan) 20%
IRD America Borit America 21%
SPV.IRD 22%
2.Tax incentives
The Company WFJN WFLD WFTT and WFMA are recognized as high-tech enterprises in 2020 and enjoy a
preferential income tax rate of 15% from January 1 2020 to December 31 2022. 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
159无锡威孚高科技集团股份有限公司2022报告全文
the total income of the enterprise in the current year can pay the corporate income tax at the tax rate of 15%. In the
first half year of 2022 WFLD (Chongqing) paid its corporate income tax at the tax rate of 15%.In 2022 WFLD (Wuhan) was a qualified small and low-profit enterprises and the part of taxable income that did
not exceed 1 million Yuan was included in the taxable income at a reduced rate of 12.5% and the corporate
income tax was paid at the tax rate of 20%; while the part of the taxable income exceeding 1 million Yuan but not
exceeding 3 million Yuan was included in the taxable income at a reduced rate of 25% and the corporate income
tax was paid at the tax rate of 20%.
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 51818.51 150438.79
Cash in bank 2304848889.90 1864868497.94
Other Monetary funds 84651222.35 31044328.96
Total 2389551930.76 1896063265.69
Including: total amount of funds deposited overseas 324409336.06 69969414.25
The total amount of funds restricted on use due to
51080295.6531044328.96
mortgage pledge or freezing
Other explanation
The ending balance of other monetary fund includes RMB 32216896.41 deposited in the stock repurchase account and RMB
24368385.65 deposited in the bank acceptance deposit，cash deposit for Mastercard RMB 199660.00 in-transit dividends RMB
1262280.00 IRD performance bond RMB 7487250.00 the foreign exchange contract margin RMB 188400000.00 in-transit
foreign exchange fund RMB 91750.29 judicial frozen fund RMB 180000.00 and ETC freezing RMB 5000.00. The in-transit
dividends RMB 1262280.00 was a portion of the dividend distributed by Miracle Automation (002009) a trading financial asset
held by the company from 2017 to 2022 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
2718820654.876076436069.42
included in current profit or loss
Including:
SNAT 78834732.00 153643308.00
Miracle Automation 66693600.00 113793600.00
Lifan Technology 48516.34 77802.11
160无锡威孚高科技集团股份有限公司2022报告全文
Toyze Auto 462414.48
Foreign exchange contracts 74734940.30
Other debt and equity instrument investments 2572781392.05 5734186419.01
Including：
Total 2718820654.87 6076436069.42
3. Note receivable
(1) Classification of notes receivable
In RMB
Item Ending balance Opening balance
Bank acceptance bill 968022652.08
Trade acceptance bill 135559024.27 148527534.13
Total 135559024.27 1116550186.21
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
135559024100.00135559024111655018100.00111655018
provisio
n .27 % .27 6.21 % 6.21
Accrued
on
portfolio
Includin
g:
Portfoli
o 1:
968022652.86.70968022652.
bank
acceptan 08 % 08
ce bill
Portfoli 135559024
o 2:
135559024100.00.27148527534.13.30148527534.
trade
acceptan .27 % 13 % 13
ce bill
135559024100.00135559024111655018100.00111655018
Total.27%.276.21%6.21
If the provision for bad debts of note receivable is made in accordance with the general model of expected credit losses please
refer to the disclosure of other receivables to disclose related information about bad-debt provisions:
□Applicable □Not applicable
161无锡威孚高科技集团股份有限公司2022报告全文
(2) Bad debt provision Accrued collected or reversal
Provision for bad debts in the current period:
□ Applicable □ Not applicable
(3) Notes receivable already pledged by the Company at the end of the period
In RMB
Item Amount pledge at period-end
Trade acceptance bill 82908186.94
Total 82908186.94
(4) Notes endorsement or discount and undue on balance sheet date
In RMB
Item Amount derecognized at period-end Amount not derecognized at period-end
Trade acceptance bill 1214398.69
Total 1214398.69
(5) 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
Trade acceptance bill 7201691.00
Total 7201691.00
Other explanation
The trade acceptance bill that the company transferred to the accounts receivable due to in 2018 the failure of the drawer to perform
the agreement at the end of the period were the bills of the subsidiaries controlled by Baota Petrochemical Group Co. Ltd. and the
bills accepted by Baota Petrochemical Group Finance Co. Ltd. (hereinafter referred to as “BD bills”); In 2018 the amount
transferred to account receivable was 7 million yuan and 1.7 million yuan and 2 million yuan were respectively recovered in 2019
and 2020. and enforced money 98309 yuan was received in the year.
(6) Note receivable actually written-off in the period
Nil
4. Account receivable
(1) Classification of account receivable
In RMB
Ending balance Opening balance
Category
Book balance Bad debt reserve Book Book balance Bad debt reserve Book
162无锡威孚高科技集团股份有限公司2022报告全文
Accrue value Amoun Amoun Accrue value
Amount Ratio Amount Ratio
d ratio t t d ratio
Account
receivable with
bad debt 578067 578067 100.00 613611 613611 100.00
1.80%2.87%
provision 05.14 05.14 % 42.44 42.44 %
Accrued on a
single basis
Including:
Account
receivable with
bad debt 314915 98.20 216675 312749 207698 97.13 231865 205380
0.69%1.12%
provision 7700.73 % 23.48 0177.25 6857.82 % 64.05 0293.77
Accrued on
portfolio
Including:
320696794742312749213834100.0845477205380
Total 100% 2.48% 3.95%
4405.8728.620177.258000.260%06.490293.77
Bad debt provision Accrued on single basis: 57806705.14
In RMB
Ending balance
Name
Book balance Bad debt reserve Accrued ratio Accrued causes
Have difficulty in
Hubei Meiyang Auto Industry Co. Ltd. 20139669.45 20139669.45 100.00%
collection
Have difficulty in
Hunan Leopaard Auto Co. Ltd. 8367245.47 8367245.47 100.00%
collection
Have difficulty in
BD bills 7201691.00 7201691.00 100.00%
collection
Linyi Zotye Automobile Components Have difficulty in
6193466.776193466.77100.00%
Manufacturing Co. Ltd. collection
Have difficulty in
Tongling Ruineng Purchasing Co. Ltd. 4320454.34 4320454.34 100.00%
collection
Brilliance Automotive Group Holdings Co. Have difficulty in
3469091.333469091.33100.00%
Ltd. collection
Have difficulty in
Dongfeng Chaoyang Diesel Co. Ltd. 1823262.64 1823262.64 100.00%
collection
Jiangsu Kawei Auto Industrial Group Co. Have difficulty in
1932476.261932476.26100.00%
Ltd. collection
Jiangsu Jintan Automobile Industry Co. Have difficulty in
1059798.431059798.43100.00%
Ltd. collection
Have difficulty in
Tianjin Levol Engine Co. Ltd. 1018054.89 1018054.89 100.00%
collection
Have difficulty in
Other clients 2281494.56 2281494.56 100.00%
collection
Total 57806705.14 57806705.14
Bad debt provision Accrued on portfolio:：3149157700.73
In RMB
Ending balance
Name
Book balance Bad debt reserve Accrued ratio
Within 6 months 3024862168.01 --
6 months to one year 92819798.57 9281979.84 10.00%
1-2 years 18948517.89 3789703.59 20.00%
163无锡威孚高科技集团股份有限公司2022报告全文
2-3 years 6552293.67 2620917.46 40.00%
Over 3 years 5974922.59 5974922.59 100.00%
Total 3149157700.73 21667523.48
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses please
refer to the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable □ Not applicable
By account age
In RMB
Account age Book balance
Within one year (One year included) 3118871487.62
Including: within 6 months 3025753558.24
6 months to one year 93117929.38
1-2 years 19350208.92
2-3 years 8919358.15
Over 3 years 59823351.18
3-4 years 59823351.18
Total 3206964405.87
(2) 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
84547706.492904080.142676427.235608467.36307336.5879474228.62
provision
Total 84547706.49 2904080.14 2676427.23 5608467.36 307336.58 79474228.62
Important bad debt provision collected or reversal: Nil
(3) Account receivable actually charged off in the Period
In RMB
Item Amount charged off
Zhejiang Zotye Automobile Co. Ltd. 3059115.67
Ruili Jifeng Import and Export Co. Ltd 1091409.60
Chonqqing Branch of Hunan Jiangnan Auto Co. Ltd 935638.55
Sporadic clients 522303.54
Total 5608467.36
164无锡威孚高科技集团股份有限公司2022报告全文
(4) Top 5 receivables at ending balance by arrears party
In RMB
Ending balance of account Ratio in total ending balance of Ending balance of bad
Name
receivable account receivables debt reserve
RBCD 461493652.46 14.39% 174766.71
Client 2 376840900.77 11.75% 70035.30
Robert Bosch Company 363021724.83 11.32% 882016.11
Client 4 142812092.97 4.45% 60548.15
Client 5 130978870.40 4.09% 2955417.69
Total 1475147241.43 46.00% 4142783.96
(5) Account receivable derecognition due to financial assets transfer
Nil
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Nil
5. Receivable financing
(1) Category of receivable financing:
In RMB
Item Ending balance Opening balance
Bill receivable- bank acceptance bill 1918368845.21 713017014.50
Total 1918368845.21 713017014.50
Increase and decrease in current period and changes in fair value of receivables financing
□ Applicable □ Not applicable
If the bad debt provision for account receivable is calculated and withdrawn according to the general model of expected credit loss
please refer to the disclosure method of other account receivables in aspect of impairment provision:
□ Applicable □ Not applicable
Other explanation:
During the management of enterprise liquidity the company will discount or endorse transfers before the maturity of some bills the
business model for managing bills receivable is to collect contractual cash flows and sell the financial asset so it is classified as
financial assets measured at fair value and whose changes are included in other comprehensive income which is listed in receivables
financing.
(2)Notes receivable already pledged by the Company at period-end：
Item Amount pledge at period-end
Bank acceptance bill 530337600.45
165无锡威孚高科技集团股份有限公司2022报告全文
Trade acceptance bill --
Total 530337600.45
(3) Notes endorsement or discount and undue on balance sheet date
Amount not derecognized at period-
Item Amount derecognized at period-end
end
Bank acceptance bill 269050791.15 --
Trade acceptance bill -- --
Total 269050791.15 --
6. Account paid in advance
(1) Account age of account paid in advance
In RMB
Ending balance Opening balance
Account age
Amount Ratio Amount Ratio
Within one year 88207782.70 93.51% 172019278.72 96.61%
1-2 years 5066837.28 5.37% 3318636.20 1.86%
2-3 years 778819.68 0.83% 1140843.34 0.64%
Over 3 years 270414.21 0.29% 1580491.73 0.89%
Total 94323853.87 178059249.99
Explanation of 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
Total year-end balance of top five account paid in advance by prepayment object amounted to 45793646.66 yuan
takes 48.55 percent of the total advance payment at year-end.Other explanation: Nil
7. Other account receivables
In RMB
Item Ending balance Opening balance
Dividend receivable 147000000.00
Other account receivables 1117507456.47 17908078.54
Total 1264507456.47 17908078.54
166无锡威孚高科技集团股份有限公司2022报告全文
(1) Interest receivable
1) Category of interest receivable
Nil
2) Significant overdue interest
Nil
3) Accrued of bad debt provision
□ Applicable √ Not applicable
(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
Nil
3)Accrued of bad debt provision
□Applicable □Not applicable
(3) Other accounts receivable
1) Classify other accounts receivable by nature
In RMB
Nature Ending book balance Opening book balance
Intercourse funds from units 1894818.08 1991247.85
Cash deposit 9087881.41 6212842.61
Staff loans and petty cash 1823842.27 555076.61
Social security and provident fund paid 11341820.83 10547050.70
WFTR “platform trade” business
2741499131.95
portfolio
Other 66663.56 1952403.17
Total 2765714158.10 21258620.94
167无锡威孚高科技集团股份有限公司2022报告全文
2)Accrued of bad debt provision
In RMB
Phase I Phase II Phase III
Expected credit
Expected credit losses
losses for the entire
Bad debt reserve Expected credit losses for the entire duration Total
duration (without
over next 12 months (with credit impairment
credit impairment
occurred)
occurred)
Balance on Jan. 1 20222 3318719.00 31823.40 3350542.40
Balance of Jan. 1 2022 in the
period
Current Accrued 1785811.16 1644068327.93 1645854139.09
Current reversal 200553.00 96.60 200649.60
Current charge off 1774500.00 1774500.00
Other changes 977169.74 977169.74
Balance on Dec. 31 2021 4106646.90 1644100054.73 1648206701.63
Change of book balance of loss provision with amount has major changes in the period
□ Applicable □ Not applicable
By account age
In RMB
Account age Book balance
Within one year (One year included) 2758812664.93
Within 6 months 1919096046.09
6 months to one year 839716618.84
1-2 years 1358405.20
2-3 years 2962710.00
Over 3 years 2580377.97
3-4 years 2580377.97
Total 2765714158.10
3) Bad debt provision Accrued collected or reversal
Bad debt provision Accrued in the period:
In RMB
Change in current period
Opening
Category Collected or Ending balance balance Accrued Charge off Other
reversal
Bad debt 1645854139. 1648206701.
3350542.40200649.601774500.00977169.74
provision 09 63
1645854139.1648206701.
Total 3350542.40 200649.60 1774500.00 977169.74
0963
Including the important bad debt provision reversal or collected in the period: nil
4) Other accounts actually charged off during the reporting period
In RMB
Item Amount charged off
168无锡威孚高科技集团股份有限公司2022报告全文
Ningbo Jiangbei High-Tech Industry Park Development Construction Co. Ltd. 1767000.00
Other sporadic 7500.00
Total 1774500.00
Note of important other receivables of written-off:
Nil
5) Top 5 other accounts receivable at ending balance by arrears party
In RMB
Ratio in total
Account ending balance of Ending balance of
Enterprise Nature Ending balance
age other accounts bad debt reserve
receivables
WFTR “platform trade” See “Other Within one
2741499131.9599.121644068327.93business portfolio explanations” year
Wuxi China Resources Gas Within 3
Deposit margin 1364750.00 0.05 492910.00
Co. LTD years
Zhenkunxing Industrial
Supermarket (Shanghai) Co. Deposit margin 1000000.00 2-3 years 0.04 400000.00
LTD
Wuxi Xingzhou Energy Within one
Deposit margin 887227.72 0.03 28176.35
Development Co. LTD year
Wuxi Youlian Thermoelectric Over 3
Deposit margin 750000.00 0.03 750000.00
Co. LTD years
Total 2745501109.67 99.27 1645739414.28
Other explanations: For details of WFTR “platform trade” business portfolio please refer to the description in Note-XVI 7 "Other
Significant Transactions and Matters Affecting Investors' Decisions".
6) Other account receivables related to government grants
Nil
7) Other accounts receivable derecognized due to the transfer of financial assets
Nil
8) The amount of assets and liabilities formed by transferring other receivables and continuing to be
involved
Nil
8. Inventory
Does the Company need to comply with disclosure requirements in the real estate industry
No
(1) Category of inventory
In RMB
169无锡威孚高科技集团股份有限公司2022报告全文
Ending balance Opening balance
Inventory Inventory
depreciation depreciation
reserve or reserve or
Item provision for provision for
Book balance Book value Book balance Book value
impairment of impairment of
contract contract
performance performance
costs costs
Stock
796941337.63160326360.21636614977.42693636748.6184791307.00608845441.61
materials
Goods in
437653321.2331641606.69406011714.54406224039.1418593866.28387630172.86
process
Finished
1382835104.89142342140.581240492964.312578635721.74129714961.122448920760.62
goods
Total 2617429763.75 334310107.48 2283119656.27 3678496509.49 233100134.40 3445396375.09
(2) Inventory depreciation reserve or provision for impairment of contract performance costs
In RMB
Current increased Current decreased
Item Opening balance Reversal or Ending balance
Accrued Other Other
write-off
Stock
84791307.0084615829.6213105601.7722186378.18160326360.21
materials
Goods in
18593866.2820325267.143015928.1910293454.9231641606.69
process
Finished
129714961.1276669336.362399284.4466441441.34142342140.58
goods
Total 233100134.40 181610433.12 18520814.40 98921274.44 334310107.48
* Net realizable value of inventory is equal to during the day-to-day activities the estimated sale price of
inventory less costs which are going to happen by estimation till works completed sales price estimated and
relevant taxes.* Accrued basis for inventory depreciation reserve:
Cash on hand Accrued basis for inventory impairment Specific basis for recognition
provision
Materials in stock The materials sold due to finished goods Results from the estimated sale price of such inventory less the cost
manufactured its net realizable value is what will happen estimated sales expenses and relevant taxes till the
lower than the book value goods completed
Goods in process The goods in process sold due to Results from the estimated sale price of such inventory less the cost
finished goods manufactured its net what will happen estimated sales expenses and relevant taxes till the
realizable value is lower than the book goods completed
value
Cash on hand Accrued basis for inventory impairment Specific basis for recognition
provision
* Reasons of inventory falling price 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
170无锡威孚高科技集团股份有限公司2022报告全文
(4) Explanation of the current amortization amount of contract performance cost
Nil
9. Other current assets
In RMB
Item Ending balance Opening balance
Receivable export tax rebates 14325020.52 6457803.72
VAT refund receivable 25444657.63 3985115.26
Prepaid taxes and VAT retained 364556192.43 204700549.12
Input tax to be deducted and certification 1192752.68 6274.43
Other 25028577.98 5171179.97
Total 430547201.24 220320922.50
10.Long-term equity investment
In RMB
Current changes (+/ -) Ending
Other Oth Cash balanc
Opening Investmen Ending
The Additio Capit compreh er dividend Impair e of
balance t gain/loss balance
invested nal al ensive equ or profit ment depreci
(book recognize Other (book
entity investm reduc income ity announce Accru ation
value) d under value)
ent tion adjustme cha d to ed reserve
equity
nt nge issued s
I. Joint venture
II. Associated enterprise
Wuxi
WFEC
7944898177038914700008245288
Catalyst
Co. 40.10 69.79 00.00 09.89
Ltd.Robert
Bosch 3340114 1085484 7658377 3659761
Powertr 235.45 785.75 10.23 310.97
ain Ltd.Zhongli
an
Automo
1378575375237519440001559413
bile
Electron 785.77 28.28 00.00 314.05
ic Co.Ltd.Wuxi
Weifu
Precisio
n
Machine 4601427 1881554 1000000 5482981
ry 2.27 0.24 0.00 2.51
Manufac
turing
Co.Ltd.Changch
-
un 1034881 9621734
727085.1
Xuyang 9.93 .83
0
Weifu
171无锡威孚高科技集团股份有限公司2022报告全文
Automo
bile
compon
ents
Technol
ogy Co.Ltd.Precors 5345878 1513 5517924
20698.24
GmbH .98 47.34 .56
Wuxi
Chelian
Tianxia -
Informat 1430559 37000 1691452
1091075
ion 55.62 000.00 02.15
Technol 3.47
ogy Co.Ltd.
5717944370001644959111723715136282818
Subtotal
788.12000.00683.73710.2347.34108.96
5717944370001644959111723715136282818
Total
788.12000.00683.73710.2347.34108.96
Other explanation
Explanation on those holding less than 20% of the voting rights but with significant influence:
(1) Precors GmbH:
The wholly-owned subsidiary of the Company Borit holds 8.11% equity of Precors GmbH. Borit appointed a director to Precors
GmbH. Though the representative Borit can participate in the operation policies formulation of Precors GmbH and thus exercise a
significant influence over Precors GmbH.
(2) Wuxi Chelian Tianxia Information Technology Co. Ltd. (Hereinafter referred to as "Chelian Tianxia"):
The Company holds 9.8452% equity of Chelian Tianxia and appointed a director to Chelian Tianxia. Though the representative the
Company can participate in the operation policies formulation of Chelian Tianxi and thus exercise a significant influence over
Chelian Tianxi.
11.Other equity instrument investment
In RMB
Item Ending balance Opening balance
Wuxi Xidong Science & Technology Industrial Park 5000000.00 5000000.00
Beijing Zhike Industry Investment Holding Group Co.
75940000.0075940000.00
Ltd.Rare earth Catalysis Innovation Research Institute
4108000.004108000.00
(Dongying) Co. Ltd.
Wuxi Xichang Microchip Semi-Conductor 592742690.00 200000000.00
Total 677790690.00 285048000.00
12.Other non-current financial assets
In RMB
Item Ending balance Opening balance
Guolian Securities 186608914.00 208795178.00
Investments in other debt instruments and equity
1140000000.001482000000.00
instruments held for more than one year
Total 1326608914.00 1690795178.00
172无锡威孚高科技集团股份有限公司2022报告全文
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 65524052.61 65524052.61
2.Current increased 41662196.86 41662196.86
(1) Outsourcing
(2) Inventory\fixed assets\construction
41662196.8641662196.86
in process transfer-in
(3) Increased by combination
3.Current decreased 9494473.20 9494473.20
(1) Disposal
(2) Other transfer-out
(3)Transfer from rental to self use 9494473.20 9494473.20
4.Ending balance 97691776.27 97691776.27
II. Accumulated depreciation and
accumulated amortization
1.Opening balance 46136306.05 46136306.05
2.Current increased 7278108.90 7278108.90
(1) Accrued or amortization 2331022.21 2331022.21
(2)Transferred from inventory fixed
4947086.694947086.69
assets and construction in progress
3.Current decreased 5019508.41 5019508.41
(1) Disposal
(2) Other transfer-out
(3)Transfer from rental to self use 5019508.41 5019508.41
4.Ending balance 48394906.54 48394906.54
III. Depreciation reserves
1.Opening balance
2.Current increased
(1) Accrued
3. Current decreased
(1) Disposal
(2) Other transfer-out
4.Ending balance
IV. Book value
1.Ending Book value 49296869.73 49296869.73
2.Opening Book value 19387746.56 19387746.56
(2) Investment real estate measured at fair value
□ Applicable □ Not applicable
173无锡威孚高科技集团股份有限公司2022报告全文
(3) Investment real estate without property certification held
Nil
14. Fixed assets
In RMB
Item Ending balance Opening balance
Fixed assets 3769984185.94 2932210452.51
Total 3769984185.94 2932210452.51
(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
1570238484.443540288690.1932772506.07714328321.315857628002.01
balance
2.Current
414184200.801105926860.717106091.81385478644.9829446173.311942141971.61
increased
(1) Purchase 244898.40 7530517.28 367371.68 713097.76 8855885.12
(2) Construction
in progress 282682532.87 743087427.45 6738720.13 91270299.75 -- 1123778980.20
transfer-in
(3)Investment real
8639863.028639863.02
estate transfer-in
(4) Financial
12268137.3212268137.32
lease transfer in
(5)Increased by
122616906.51343040778.66293495247.4729446173.31788599105.95
combination
3.Current
54225619.7548213762.731332428.0964336862.53168108673.10
decreased
(1) Disposal or
12563422.8948213762.731332428.0964336862.53126446476.24
scrapping
(2)Transfer to
investment real 41662196.86 41662196.86
estate
4.Conversion of
foreign currency
4328995.4715503048.1266093.3910831183.401037118.7431766439.12
financial
statement
5.Ending balance 1934526060.96 4613504836.29 38612263.18 1046301287.16 30483292.05 7663427739.64
II. Accumulated
depreciation
1.Opening
439825229.291952082761.6520404183.79422378184.502834690359.23
balance
2.Current
110150684.48535453321.582253579.24283691538.26--931549123.56
increased
(1) Accrued 52819069.57 255295980.54 2253579.24 110637163.27 421005792.62
(2)Investment real
4699630.834699630.83
estate transfer-in
(3)Financial lease
10448678.6410448678.64
transfer in
(4)increased by 52631984.08 269708662.40 173054374.99 495395021.47
174无锡威孚高科技集团股份有限公司2022报告全文
combination
3.Current
15056913.3027569646.381038351.2349907798.4093572709.31
decreased
(1) Disposal or
10109826.6127569646.381038351.2349907798.4088625622.62
scrapping
(2) Transfer to
investment real 4947086.69 4947086.69
estate
4.Conversion of
foreign currency
1891138.0211005788.811956.457892977.1720791860.45
financial
statement
5.Ending balance 536810138.49 2470972225.66 21621368.25 664099659.92 3693503392.32
III. Depreciation
reserves
1.Opening
84541933.6173319.906111936.7690727190.27
balance
2.Current
13624811.0576592762.0017270992.7514639472.46122128038.26
increased
(1) Accrued
(2)Increased by
13624811.0576592762.0017270992.7514639472.46122128038.26
combination
3.Current
7045.4214338942.292101139.2016447126.91
decreased
(1) Disposal or
7045.4214338942.292101139.2016447126.91
scrapping
4.Conversion of
foreign currency
479554.862107885.69429004.80515614.413532059.76
financial
statement
5.Ending balance 14097320.49 148903639.01 73319.90 21710795.11 15155086.87 199940161.38
IV. Book value
1.Ending Book
1383618601.981993628971.6216917575.03360490832.1315328205.183769984185.94
value
2.Opening Book
1130413255.151503663994.9312295002.38285838200.052932210452.51
value
(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
Plant and office building of Weifu Still in process of relevant property
32165954.92
Chang’an procedures
Other explanation: Nil
175无锡威孚高科技集团股份有限公司2022报告全文
(5) Disposal of fixed assets
Nil
15. Construction in progress
In RMB
Item Ending balance Opening balance
Construction in progress 509105587.49 387429933.08
Total 509105587.49 387429933.08
(1) Construction in progress
In RMB
Ending balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Technical transformation
132814463.95132814463.9588688772.8588688772.85
of parent company
Lot 103 phase V of the
89599174.4289599174.42
parent company
WFMS rebuilding of the
20562758.7520562758.7512185858.7412185858.74
parent company
Renovation of Xinan
Branch No. 6 Huashan 41493029.41 41493029.41
Road of Parent Company
Technical transformation
69450019.0669450019.0672318870.7972318870.79
of WFAM
Technical transformation
16739199.8416739199.8413368288.8113368288.81
of WFLD
Technical transformation
82081060.6382081060.6323293601.3923293601.39
of Denmark RID
Technical transformation
47822275.0147822275.01
of Italy VHIT
Other projects 98142780.84 98142780.84 87975366.08 87975366.08
387429933.0
Total 509105587.49 509105587.49 387429933.08
8
(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
ng t transfe Progre t of Source of
Item dge sed in balanc invest capital ization
balanc increas r-in in ss interes funds
t the e ment ized rate of
e ed the t
Period in amoun the
Period capital
budget t of the year
ization
year
Technical Compa
transform 88688 53048 48420 13281 ny
2151
ation of 772.8 3541. 6373. 4463. accum
parent 477.18 5 73 45 95 ulation
company funds
Lot 103 89599 25082 11468 Compa
phase V of 174.4 992.3 2166. ny
176无锡威孚高科技集团股份有限公司2022报告全文
the parent 2 8 80 accum
company ulation
funds
WFMS Compa
rebuilding 12185 20562 ny
8376 accum
of the 858.7 758.7
900.01 ulation
parent 4 5 funds
company
Renovatio Compa
n of Xinan ny
accum
Branch
41493 41493 ulation
No. 6
029.4 029.4 funds
Huashan
11
Road of
Parent
Company
Compa
Technical
72318 14211 14433 69450 ny
transform 64845
870.7 4233. 4625. 019.0 accum
ation of 9.54
WFAM 9 06 25 6
ulation
funds
Compa
Technical
13368 74672 71074 16739 ny
transform 22700
288.8 106.2 193.8 199.8 accum
ation of 1.41
1 8 4 4 ulation WFLD
funds
Technical Compa
transform 23293 60594 82081 ny
1807
ation of 601.3 550.0 060.6 accum
Denmark 090.77 9 1 3 ulation
RID funds
Technical Compa
transform 59336 11514 47822 ny
accum
ation of 857.0 582.0 275.0
ulation
Italy 4 3 1 funds
VHIT
29945942158276141096
Other 3026
4567.4209.9032.2806.
projects 938.13
00921465
(3) The provision for impairment of construction projects
Nil
(4) Engineering materials
Nil
16. Right-of-use assets
In RMB
Item Building Mechanical equipment Total
I. Original book value:
1.Opening balance 17604684.01 21763912.85 39368596.86
2.Current increased 15589326.89 15206270.58 30795597.47
(1)Increased lease 13711753.69 15206270.58 28918024.27
177无锡威孚高科技集团股份有限公司2022报告全文
(2)Increased by combination 1877573.20 1877573.20
3.Current decreased 12268137.32 12268137.32
(1) Transfer to own assets 12268137.32 12268137.32
4. Conversion of foreign
1222038.96319399.521541438.48
currency financial statement
5.Ending balance 34416049.86 25021445.63 59437495.49
II. Accumulated depreciation
1.Opening balance 4140756.41 12079434.87 16220191.28
2.Current increased 6596209.61 4961207.02 11557416.63
(1) Accrued 5526140.33 4961207.02 10487347.35
(2)increased by combination 1070069.28 1070069.28
3.Current decreased 10448678.64 10448678.64
(1) Disposal
(2) Transfer to own assets 10448678.64 10448678.64
4. Conversion of foreign
298972.97-55507.13243465.84
currency financial statement
5.Ending balance 11035938.99 6536456.12 17572395.11
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 23380110.87 18484989.51 41865100.38
2.Opening Book value 13463927.60 9684477.98 23148405.58
17. Intangible assets
(1) Intangible assets
In RMB
Trademark and
Non-patent Computer
Item Land use right Patent trademark Total
technology software
license
I. Original book value
381012520.4
1.Opening balance 181889330.47 123152207.22 41597126.47 727651184.60
2.Current increased 854610.18 59548754.53 35211964.82 95615329.53
(1) Purchase 3804434.00 1689742.12 5494176.12
(2)Construction in
25168225.2225168225.22
progress
(3) Increased by
50744320.538353997.4859098318.01
combination
(4) Shareholders' capital
5000000.005000000.00
contribution
(5)Transfer from rental
854610.18854610.18
to self use
3.Current decreased 2578043.96 2578043.96
(1)disposal or scrapping 2578043.96 2578043.96
4.Conversion of foreign
currency financial 6297657.07 545533.29 6843190.36
statement
381867130.6
5.Ending balance 247735742.07 156331661.37 41597126.47 827531660.53
2
178无锡威孚高科技集团股份有限公司2022报告全文
II. accumulated
amortization
103617738.0
1.Opening balance 64204353.94 92880072.81 9709000.00 270411164.78
3
2.Current increased 8701768.78 15612492.50 28089883.82 52404145.10
(1)Amortization 8381891.20 15612492.50 23420202.87 47414586.57
(2)Transfer from rental
319877.58319877.58
to self use
(3)increased by
4669680.954669680.95
combination
3.Current decreased 2578043.96 2578043.96
(1)Disposal or
2578043.962578043.96
scrapping
4.Conversion of foreign
currency financial 2326306.00 251033.39 2577339.39
statement
112319506.8
5.Ending balance 82143152.44 118642946.06 9709000.00 322814605.31
1
III. Depreciation
reserves
1.Opening balance 16646900.00 16646900.00
2.Current increased 427123.63 427123.63
(1)Accrued
(2)Increased by
427123.63427123.63
combination
3.Current decreased
(1)Disposal or
scrapping
4.Conversion of foreign
currency financial 15043.67 15043.67
statement
5.Ending balance 442167.30 16646900.00 17089067.30
IV. Book value
269547623.8
1.Ending Book value 165592589.63 37246548.01 15241226.47 487627987.92
1
277394782.4
2.Opening Book value 117684976.53 30272134.41 15241226.47 440593119.82
1
(2) Land use right without property certification held
Nil
18. Goodwill
(1) Original book value of goodwill
In RMB
Current increased Current decreased
The invested
entity or Formed by Translation of
Opening balance Ending balance
matters forming business foreign currency Disposal
goodwill combination statements
Merged with
1784086.791784086.79
WFTT
179无锡威孚高科技集团股份有限公司2022报告全文
Merged with
229470928.966427359.97235898288.93
Borit
Total 231255015.75 6427359.97 237682375.72
(2) Goodwill depreciation reserves
1) Goodwill generated by merging Weifu TT:
In 2010 the company consolidated Weifu Tianli through a cash capital increase and the goodwill is the part of
the merger cost greater than the fair value share of Weifu Tianli's identifiable net assets. At the end of the period
the Company conducted an impairment test on goodwill to estimate the recoverable amount of the asset group
related to goodwill based on the present value of future cash flows that is estimating the present value of future
cash flows base on the financial budget for the next 5 years set by management and 12.39% discount rate cash
flows remain stable for years beyond the five-year budget. The asset group identified at the time of goodwill
impairment test did not change.The key parameters determined by goodwill impairment test are as follows: 18%-19% gross profit rate and 8%-
11% growth rate of operating revenue in the forecast period are used as key parameters to calculate the present
value of expected future cash flows of the asset group related to goodwill. Management determines these
parameters based on historical conditions prior to the forecast period and its forecast of market development.After the test above the Company's goodwill does not need to draw impairment reserves.
2) Goodwill generated by merging Borit:
In 2020 the Company acquired 100.00% of Borit's equity by cash purchase and goodwill is the amount of
merger cost greater than the fair value share of Borit's identifiable net assets. According to the Asset Appraisal
Report issued by Wanlong (Shanghai) Asset Appraisal Co. LTD. (Wanlong Appraisal Word (2023) No. 40032).The recoverable value of the company's goodwill combined with Borit in the asset group is RMB 324221500
which is higher than the book value of RMB 311238500 so there is no impairment loss of goodwill.
19.Long-term deferred expense
In RMB
Amortized in the
Item Opening balance Current increased Other decrease Ending balance
Period
Remodeling costs
15304783.5718957732.215676279.9428586235.84
etc.Total 15304783.57 18957732.21 5676279.94 28586235.84
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
43939348.598056161.3765251129.5510531677.19
insider transactions
Deductible loss 942706826.57 142138790.82 53658338.05 11465129.69
Bad debt provision 79078766.93 11972961.27 87681266.17 13383420.21
Inventory depreciation
299752548.9346412618.47224955223.9437688819.01
reserve
180无锡威孚高科技集团股份有限公司2022报告全文
Depreciation reserves of
70008612.2112701929.3657218038.148677481.50
fixed assets
Depreciation reserves of
16646900.002497035.0016646900.002497035.00
intangible assets
Deferred income 222850907.79 33668167.75 295502674.12 44620545.44
Payable salary accrued
849436667.00139593056.661236037621.62188472847.67
expenses etc.Depreciation assets
25570352.824153581.5254047597.498868412.34
amortization difference
Equity incentive 3066582.11 459987.32 80742533.73 12498678.30
Fiscal and tax differences
1345462.74234721.68378997.8472554.36
for leasing business
Total 2554402975.69 401889011.22 2172120320.65 338776600.71
(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 10192264.15 1528839.60 10660027.75 1599004.14
merger not under the same control
The difference between the fair value
and taxation basis of IRD assets in a 61131061.24 13448833.47 68854748.78 15148044.73
merger not under the same control
The difference between the fair value
and taxation basis of Borit assets in a 21378918.49 5344729.59 25246551.70 6311637.91
merger not under the same control
The difference between the fair value
and taxation basis of VH business in a 59291649.88 14229995.98
merger not under the same control
Change of fair value of transaction
161415403.7824226534.89318337329.7447794985.96
financial asset
Accelerated depreciation of fixed assets 700548497.31 107631856.23 294934456.08 48772268.60
Total 1013957794.85 166410789.76 718033114.05 119625941.34
(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
-126261238.77275627772.45-96528406.14242248194.57
assets
Deferred income tax
-126261238.7740149550.99-96528406.1423097535.20
liabilities
(4) Details of unrecognized deferred income tax assets
In RMB
Item Ending balance Opening balance
Bad debt reserve 1648602163.32 216982.72
Inventory depreciation reserve 34557558.55 8144910.46
181无锡威孚高科技集团股份有限公司2022报告全文
Loss from subsidiary 529884134.82 279247744.04
Depreciation reserves of fixed assets 129931549.17 33509152.13
Depreciation reserves of intangible assets 442167.30
Other equity instrument investment 13600000.00 13600000.00
Equity incentive 2304871.81
Total 2357017573.16 337023661.16
(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
20223781066.93
domestic subsidiaries
Operating loss occurs in
20232380501.891171973.53
domestic subsidiaries
Operating loss occurs in
202412087441.1218520699.71
domestic subsidiaries
Operating loss occurs in
202512140693.5412151503.80
domestic subsidiaries
Operating loss occurs in
202646418486.8322596818.84
domestic subsidiaries
Operating loss occurs in
2027 and the following years 160833781.13
domestic subsidiaries
Operating loss occurs in
No expiration period 296023230.31 221025681.23
overseas subsidiaries
Total 529884134.82 279247744.04
21.Other non-current assets
In RMB
Ending balance Opening balance
Item Provision
Provision for
Book balance for Book value Book balance Book value
impairment
impairment
Contract
19855422.2719855422.27
acqusiiton cost
Engineering
equipment paid in 239775014.10 239775014.10 267941354.57 267941354.57
advance
Large deposit
certificates with a
220000000.00220000000.00
maturity of more
than one year
Total 479630436.37 479630436.37 267941354.57 267941354.57
22. Short-term borrowings
(1) Category of short-term borrowings
In RMB
Item Ending balance Opening balance
Guaranteed Loan 89074800.00 72197000.00
Credit loan 3511504373.65 1264241086.57
182无锡威孚高科技集团股份有限公司2022报告全文
Bill financing 100000000.00
Accrued interest 3797354.17 1520119.98
Total 3604376527.82 1437958206.55
(2) Overdue short-term loans without payment
23.Derivative financial liabilities
In RMB
Item Ending balance Opening balance
Forward settlement and sales of foreign
747115.75
exchange
Total 747115.75
24.Note payable
In RMB
Category Ending balance Opening balance
Bank acceptance bill 1411089606.00 1760032216.30
Total 1411089606.00 1760032216.30
At the end of the current period the total amount of matured but unpaid notes payable is 0.00 yuan.Other notes:
A deposit of 24307521.30 yuan and pledge notes receivable of 613245787.39 yuan have been paid for the issuance of the
banker's acceptance above.
25. Account payable
(1) Account payable
In RMB
Item Ending balance Opening balance
Within one year 3165855712.48 3066299727.36
1-2 years 207702168.86 64962570.18
2-3 years 31919163.40 52067026.49
Over three years 49123978.86 23324378.56
Total 3454601023.60 3206653702.59
(2) Important account payable with account age over one year
Nil
26. Accounts received in advance
(1) Accounts received in advance
In RMB
183无锡威孚高科技集团股份有限公司2022报告全文
Item Ending balance Opening balance
Within 1 year 3633878.33 2854518.96
Total 3633878.33 2854518.96
27.Contract liabilities
In RMB
Item Ending balance Opening balance
Within one year 60916157.84 132406102.56
1-2 years 31275903.90 2681086.39
2-3 years 1518759.78 132196.85
Over three years 1139261.71 1208250.59
Total 94850083.23 136427636.39
28.Wage payable
(1) Wage payable
In RMB
Item Opening balance Current increased Current decreased Ending balance
I. Short-term compensation 207822331.67 1204097708.74 1170045281.42 241874758.99
II. Post-employment welfare- defined
20279307.31185708871.69178310062.1927678116.81
contribution plans
III. Dismissed welfare 1245327.09 1396110.65 1668237.41 973200.33
IV. Incentive funds paid within one
93880000.0063140000.0030740000.00
year
V. Other short-term welfare-
Housing subsidies employee 16661536.63 4526219.46 5019445.98 16168310.11
benefits and welfare funds
Total 339888502.70 1395728910.54 1418183027.00 317434386.24
(2) Short-term compensation
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Wages bonuses allowances and
197176934.90956189963.48925104100.52228262797.86
subsidies
2. Welfare for workers and staff 72058.92 71285245.35 71357304.27
3. Social insurance 192691.73 70075762.32 69988910.42 279543.63
Including: Medical insurance 172605.50 57511916.86 57441697.79 242824.57
Work injury insurance 16653.30 6718325.13 6707580.23 27398.20
Maternity insurance 3432.93 5845520.33 5839632.40 9320.86
4. Housing accumulation fund 656874.00 83027391.00 82898538.00 785727.00
5. Labor union expenditure and
9611229.9316982993.1716634110.119960112.99
personnel education expense
6. Other short-term compensation -
112542.196536353.424062318.102586577.51
social security
Total 207822331.67 1204097708.74 1170045281.42 241874758.99
(3) Define contribution plans
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Basic endowment
416445.06133875890.13127462957.246829377.95
premium
184无锡威孚高科技集团股份有限公司2022报告全文
2. Unemployment
25533.444031116.954020171.9836478.41
insurance
3. Enterprise annuity 19837328.81 47801864.61 46826932.97 20812260.45
Total 20279307.31 185708871.69 178310062.19 27678116.81
Other explanation:
1.Explanation to decrease in incentive funds paid within a year
The decrease of incentive funds paid within a year in the current period of 63.14 million yuan includes a reclassification of employee
compensation payable to long-term employee compensation payable of 34501427.39 yuan which is determined based on the
company's future payment plan.
2. Dismiss welfare
The wages payable results from the implementation of inner retirement plan and the amount paid in the next year is booked into such
item.
3. Post-employment welfare- defined contribution plans:
The Company participates in the pension insurance and unemployment insurance plans established by government authorities by
laws a certain percentage of the social security fee regulated by the government will pay by the Company monthly for the plans.Other than the aforesaid monthly contribution the Company takes no further payment obligation. The relevant expenditure isincluded in current profit or loss or cost of relevant assets when occurs. Found more of enterprise annuity in Note XIV-4 “Annuityplan”.
29.Tax payable
In RMB
Item Ending balance Opening balance
Value-added tax 27961474.84 24533584.80
Corporation income tax 7847731.79 2317331.81
Individual income tax 6846289.60 3528037.22
City maintaining & construction tax 1546043.92 1750188.23
Educational surtax 1105937.33 1250134.44
Other (including stamp tax and local
9278838.056726372.38
funds)
Total 54586315.53 40105648.88
30.Other account payable
In RMB
Item Ending balance Opening balance
Interest payable 6184.14
Dividends payable 25671100.00
Other accounts payable 198990948.23 334228033.32
Total 198990948.23 359905317.46
(1) Interest payable
In RMB
Item Ending balance Opening balance
Other 6184.14
Total 6184.14
185无锡威孚高科技集团股份有限公司2022报告全文
Major overdue interest: Nil
(2) Dividend payable
In RMB
Item Ending balance Opening balance
Common stock dividend 25671100.00
Total 25671100.00
Other explanations including important dividends payable that have not been paid for more than one year disclose the reason for
not paying: Nil
(3) Other account payable
1) Classification of other accounts payable according to nature of account
In RMB
Item Ending balance Opening balance
Deposit and margin 15452400.65 24601774.89
Social insurance and reserves funds that
1967741.921695074.09
withholding
Intercourse funds of unit 25512145.98 33562145.98
Restricted stock repurchase obligations 138495060.00 269101020.00
Payable unpaid investment funds 13308176.65
Other 4255423.03 5268018.36
Total 198990948.23 334228033.32
2) Significant other payable over one year
In RMB
Item Ending balance Reasons for non-repayment or carry-over
Nanjing Jidian Industrial Group Co. Ltd. 4500000.00 Intercourse funds
Restricted stock repurchase business 138495060.00 Restricted stock repurchase business
Total 142995060.00
Other explanation: Nil
31.Non-current liabilities due within one year
In RMB
Item Ending balance Opening balance
Long-term borrowings due within one
2000000.0027744527.80
year
Lease payments due within one year 12044793.34 6318273.66
Interest payable 240555.56 25972.22
Total 14285348.90 34088773.68
32.Other current liabilities
In RMB
186无锡威孚高科技集团股份有限公司2022报告全文
Item Ending balance Opening balance
Rebate payable 201734082.52 198936922.68
Pending sales tax 8815298.56 14032348.87
Undue bill endorsed/discounted 1214398.69
Total 211763779.77 212969271.55
Changes in short-term bonds payable: Nil
33. Long-term borrowings
(1) Category of Long-term borrowings
In RMB
Item Ending balance Opening balance
Guaranteed loan 238000000.00
Total 238000000.00
34.Lease liability
In RMB
Item Ending balance Opening balance
Lease Payments 31589277.20 15795469.25
Total 31589277.20 15795469.25
35.Long-term account payable
In RMB
Item Ending balance Opening balance
Long-term account payable 12520000.00 13750000.00
Special accounts payable 18265082.11 18265082.11
Total 30785082.11 32015082.11
(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
1230000.00
(2007)
Hi-tech Branch of Nanjing Finance Bureau (note * ) Financial support funds
2750000.002750000.00
(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 12520000.00 13750000.00
187无锡威孚高科技集团股份有限公司2022报告全文
Other explanation:
Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is
allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from 17 September 2007 to 17
September 2022. Provided that the operation period in the zone is less than 15 years financial supporting capital will be
reimbursed. 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 10 November 2008 to 10 November
2023. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.
Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is
allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from 27 October 2009 to 27 October 2024.Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is
allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from 27 December 2010 to 27 December
2025. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.
Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is
allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from 28 December 2011 to 28 December
2026. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.
Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is
allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from 18 December 2013 to 18 December
2028. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.
(2) Special accounts payable
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
Other explanation
In line with regulation of the house acquisition decision of People’s government of Xuanwu District Nanjing City Ning Xuan Fu
Zheng Zi (2012) No.001 part of the lands and property of WFJN needs expropriation in order to carry out the comprehensively
improvement of Ming Great Wall. According to the house expropriation and compensation agreement in state-owned lands signed
between WFJN and House Expropriation Management Office of Xuanwu District Nanjing City 19.7067 million yuan in total are
compensate including operation losses from lessee 1.4416 million yuan in total. The above compensation was received in last
period and is making up for the losses from lessee and the above lands and property have not been collected up to 31 December
2022.
35. Long-term wages payable
(1) Long-term wages payable
In RMB
Item Ending balance Opening balance
188无锡威孚高科技集团股份有限公司2022报告全文
I.Post-employment benefits - Defined
20380744.73
benefit plan net liabilities
II. Dismiss welfare 12028538.66 4829589.69
III. Other long-term welfare 121683760.89 103482333.50
Total 154093044.28 108311923.19
(2) Defined benefit plan
Present value of defined benefit plan
In RMB
Item Current period Last period
I. Opening balance 19594011.39
II. Cost of defined benefit plan booked into
38706.27
current profit and loss
1.Current service cost 38706.27
III. Cost of defined benefit plan booked into
399165.06
other comprehensive income
1.Actuarial gains (losses are represented by “-
399165.06
”)
IV. Other changes 348862.01
1.Welfare paid -345481.69
2.Translation difference of foreign currency
694343.70
statements
V. Ending balance 20380744.73
Other explanation:
According to relevant regulations in Italy the Trattamento di Fine Rapporto (TFR) system is established. VHIT shall calculate and
offer severance to employees in accordance with employees’ employment period and taxable base salary when they leave or are
dismissed. The plan predicts future cash outflows at the inflation rate and determines its present value at the discount rate. The
above-mentioned benefit plan poses actuarial risks to VHIT mainly including interest rate risk and inflation risk. The decrease in
interest rates will lead to an increase in the present value of the defined benefit plan obligations. In addition the present value of
benefit plan obligations is related to the future payment standards of the plan which are determined based on inflation rates.Therefore an increase in inflation rate will also lead to an increase in planned liabilities.
37.Anticipated liability
In RMB
Item Ending balance Opening balance Formation cause
Pending litigation
246653.02
total
Product quality assurance 8695322.61
Investment losses in joint
13750.00
ventures
Environmental Protection
1150543.24
Commitment
Total 10106268.87
189无锡威孚高科技集团股份有限公司2022报告全文
Other explanations including important assumptions and estimation explanations related to significant estimated liabilities: Nil
38.Deferred income
In RMB
Item Opening balance Current increased Current decreased Ending balance Cause of formation
Government grant 298052867.56 3084179.93 78013068.71 223123978.78
Total 298052867.56 3084179.93 78013068.71 223123978.78 --
Item with government grants involved:
In RMB
Amount
New Amount Cost Assets
reckoned Other
Opening grants in reckoned into reductio Ending related/I
Items of liabilities in non- chang
balance the other income n in the balance ncome
operation es
Period in the period period related
revenue
Industrialization
project for injection
VE pump system with Asset/In
721000.2
electronically 721000.26 come
controlled high 6 related
pressure for less-
emission diesel used
Appropriation on
reforming of
production line
technology and R&D 6318348. Assets
781651.385536697.24
ability of common rail 62 related
system for diesel by
distributive high-
voltage
Fund of industry 6052000 Income
41809808.3118710191.69
upgrade (2013) 0.00 related
R&D and
industrialization of
the high-pressure
3817474. Assets
variable pump of the 1117613.70 2699860.97
common rail system 67 related
of diesel engine for
automobile
Research institute of
motor vehicle exhaust 648660.1 Assets
530870.24117789.93
after-treatment 7 related
technology
Fund of industry 3683100 Income
36831000.00
upgrade (2014) 0.00 related
New-built assets
compensation after 8313442 Assets
19691341.2163443087.73
the removal of parent 8.94 related
company
Fund of industry 4000000 Income
40000000.00
upgrade (2016) 0.00 related
Guiding capital for
the technical reform
5057667. Assets
from State Hi-Tech 1270553.36 3787113.97
Technical 33 related
Commission
Implementation of the
variable cross-section 5882788. Assets
1628355.534254433.18
turbocharger for 71 related
diesel engine
190无锡威孚高科技集团股份有限公司2022报告全文
Demonstration project
652381.5 Assets
for intelligent 220493.70 431887.80
manufacturing 0 related
The 2nd batch of
provincial special
funds for industry 3446350. Assets
1596505.991849844.13
transformation of 12 related
industrial and
information in 2019
Municipal
technological reform 4143406. Assets
616309.463527096.61
fund allocation in 07 related
2020
Strategic cooperation
agreement funding for
4450869. Assets
key enterprise of 1076250.73 3374618.86
smart manufacturing 59 related
in high-tech zone
The 3rd batch of
provincial special
funds for industry 1350000 Assets
13500000.00
transformation of 0.00 related
industrial and
information in 2021
Assets
-
2892849 310998 related/I
Other 6952314.84 2580 25060356.67
1.58 3.11 ncome
3.18
related
-
2980528310998223123978.7
Total 78013068.71 2580
67.563.118
3.18
Other explanation:
(1) Appropriation on industrialization project of electrical control and high voltage jet VE system of low emissions diesel: in
September 2009 WFJN signed “Project Contract of Technology Outcome Transferring Special Capital in Jiangsu Province” with
Nanjing Technical Bureau according to which WFJN received appropriation 6.35 million yuan in 2009 4.775 million yuan received
in 2010 and 0.875 million yuan received in 2011. According to the contract the attendance date of this project was: from October of
2009 to March of 2012. This contract agreed 62% of newly increased investment in project would be spent in fixed assets investment
which are belongs to the government grand with assets/income concerned. In 2013 accepted by the science & technology agency of
Jiangsu Province and 4789997.04 yuan with income related was reckoned into current operation revenue directly; the 7210002.96
yuan with assets related was amortized during the predicted service period of the assets and 721000.26 yuan was written off in the
Period.
(2) The appropriation for research and development ability of distributive high-pressure common rail system for diesel engine use
and production line technological transformation project: according to XCJ No. [2010] 59 the Company has received special funds
of 7.1 million yuan appropriated by Finance Bureau of Wuxi New District in 2011 and used for the Company’s research and
development ability of distributive high-pressure common rail system for diesel engine use and production line technological
transformation project; this appropriation belongs to government grants related to assets amount of 781651.38 yuan was written off
based on the depreciation schedule of the related assets during the period.
(3) 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 41809808.31 yuan was written off in the year.
(4) R&D and industrialization of the high pressure variable pump of the common rail system of diesel engine for automobile: the
Company received appropriated for the project in 2013 with 8.05 million yuan in line with documents of Xi Ke Ji [2013] No.186 Xi
Ke Ji [2013] No.208 Xi Cai Gong Mao [2013] No.104 Xi Cai Gong Mao [2013] No.138 Xi Ke Ji [2014] No.125 Xi Cai Gong
191无锡威孚高科技集团股份有限公司2022报告全文
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 yuan and 0.45 million yuan respectively in 2013 2014 and 2015; such funds belong to government grant with assets
concerned and shall be written off according to the depreciation process amount of 1117613.70 yuan was written off in the year.
(5) Vehicle exhaust after-treatment technology research institute project: in 2012 the subsidiary WFLD has applied for equipment
purchase assisting funds to Wuxi Huishan Science and Technology Bureau and Wuxi Science and Technology Bureau for the vehicle
exhaust after-treatment technology research institute project. This declaration has been approved by Wuxi Huishan Science and
Technology Bureau and Wuxi Science and Technology Bureau in 2012 and the company has received appropriation of 2.4 million
yuan in 2012 and received appropriation of 1.6 million yuan in 2013. This appropriation belongs to government grants related to
assets and will be written off according to the depreciation process amount of 530870.24 yuan was written off in the year.
(6) 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.
(7) 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 19691341.21 yuan was written off in the year.
(8) 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.
(9) 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 1270553.36 yuan was written off in the year.
(10) 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 1628355.53
yuan was written off in the year.
(11) 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 220493.70 yuan was written off in the year.
(12) 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 1596505.99 yuan was written off in the year.
(13) 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 616309.46 yuan was written off in the year.
(14) 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 received in the year 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 1076250.73 yuan was written off in the year.
(15) 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
192无锡威孚高科技集团股份有限公司2022报告全文
industrialization of membrane electrodes for high-performance automotive proton exchange membrane fuel cells which was an
assets related government grants.
39.Share
In RMB
Change during the year (+/-)
Opening balance Shares
New shares Bonus transferred Ending balance Other Subtotal
issued share from capital
reserve
Total
1008659570.00-56277.00-56277.001008603293.00
shares
Other explanation:
Decreased in share capital was due to the buy-back and cancellation of 56277 restricted shares initially granted under the Restricted
Shares Incentive Plan for year of 2020.
40.Capital reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Capital premium (Share
3238990188.7281051840.001092500.743318949527.98
capital premium)
Other Capital reserve 132353984.10 28116895.55 81051840.00 79419039.65
Total 3371344172.82 109168735.55 82144340.74 3398368567.63
Other explanation including changes in the period and reasons for changes;
(1) Share capital premium has increased RMB 81051840.00 in the Period mainly because the capital reserves (other capital
reserves) of the restricted stock unlocked during the waiting period are transferred into the capital premium；Share capital
premium has decreased RMB 1092500.74 in the Period mainly because the 56277.00 shares for restricted stock incentive plan
were repurchased and cancellation by the Company.
(2) Other capital reserve has increased RMB 28116895.55 in the Period which is a net amount after deducting RMB 826610.83
attributable to minority from RMB 28943506.38 the expenses of share-based payment settled by equity; Other capital reserve
has decreased RMB 81051840.00 in the Period which is because the amount of capital reserves (other capital reserves)
recognized during the waiting period of the restricted stock unlocked in this period is transferred to the equity premium.
41.Treasury stock
In RMB
Item Opening balance Current increased Current decreased Ending balance
Stock repurchases 1148777.74 397804542.63 1148777.74 397804542.63
Repurchase obligation of restricted stock
269101020.00125282560.00143818460.00
incentive plan
Total 270249797.74 397804542.63 126431337.74 541623002.63
Other explanations including changes in the current period and explanations of the reasons for the changes:
Share buy-back: the increase of 397804542.63 yuan due to share buy-back by way of centralized bidding in 2022; The
decrease of RMB 1148777.74 in the current period was caused by the cancellation of 56277.00 shares remaining in the special
securities account repurchased by the company’s Restricted Stock Incentive Plan.
193无锡威孚高科技集团股份有限公司2022报告全文
Repurchase obligation of restricted stock incentive plan: has RMB 125282560.00 decreased in the Period mainly including
two parts: * RMB 30798400.00 cash dividends received by restricted stock incentive recipients during the period; and * RMB
94484160.00 is the repurchase and cancellation of 7632000.00 restricted shares the first batch of unlocked in the company’s
restricted stock incentive plan by the Company as treasury stock.
42.Other comprehensive income
In RMB
Current period
Less: written Less: written
in other in other
comprehensi comprehensi
Belong
ve income in ve income in
Less: to
Opening Account previous previous Belong to incom minorit Ending
Item before period and period and parent
balance e tax y balance
income tax in carried carried company
expens shareho
the year forward to forward to after tax
e lders
gains and retained
after tax
losses in earnings in
current current
period period
I. Other
comprehensive
income that
16008.80-399165.06-399165.06-383156.26
cannot be
reclassified to
profit or loss
Including:Remeas
ure changes in
-399165.06-399165.06-399165.06
defined benefit
plans
Other
comprehensive
income that
cannot be
16008.8016008.80
transferred to
profit or loss
under the equity
method
II. Other
comprehensive
income items -
36234199.36234199.
which will be 36762353. -528153.87
reclassified 53 53 40
subsequently to
profit or loss
Conversion
difference of -
36234199.36234199.
foreign currency 36762353. -528153.87
financial 53 53 40
statement
Total other -
comprehensive 35835034. 35835034.36746344. -911310.13
income 47 47
60
43.Reasonable reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Safety production costs 712215.31 26087086.34 24679500.70 2119800.95
194无锡威孚高科技集团股份有限公司2022报告全文
Total 712215.31 26087086.34 24679500.70 2119800.95
Other explanation including changes and reasons for changes:
(1) Instructions for 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.
44.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.
45.Retailed profit
In RMB
Item Current period Last period
Retained profits at the end of last year before
14814787377.8613756102424.62
adjustment
Retained profits at the beginning of the year
14814787377.8613756102424.62
after adjustment
Add: The net profits belong to owners of
118819836.302575371419.80
patent company of this period
Common stock dividends converted into
capital stock
Less: Cash dividends payable 1609059668.80 1513341439.50
Less: Withdraw employee rewards and
4526219.464081359.92
welfare funds
Add: Net effect of disposal other equity
736332.86
instrument investment
Retained profit at period-end 13320021325.90 14814787377.86
Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the
retained profits at the beginning of the period amounting to 0 yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0 yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0 yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 yuan
195无锡威孚高科技集团股份有限公司2022报告全文
46.Operating income and cost
In RMB
Current period Last Period
Item
Income Cost Income Cost
Main operating 12333099421.87 10658281929.91 13184138129.88 10822600520.90
Other business 396535495.16 358103558.89 498288581.07 397767192.67
Total 12729634917.03 11016385488.80 13682426710.95 11220367713.57
Whether the lower of the audited net profit before and after deduction of non-recurring gains and losses is negative
□Yes □No
47.Operating tax and extra
In RMB
Item Current period Last Period
City maintaining & construction tax 22771182.73 19681944.17
Educational surtax 16273199.41 14058531.57
Property tax 18009579.96 17669096.06
Land use tax 4517681.71 4507402.14
Vehicle use tax 19195.41 27218.52
Stamp duty 8187585.86 3834974.65
Other taxes 797159.81 477566.62
Total 70575584.89 60256733.73
48.Sales expenses
In RMB
Item Current period Last Period
Salary and wage related expense 59134720.55 56098840.97
Consumption of office materials and
7978020.259301927.42
business travel charge
Warehouse charge 12489955.81 17101049.13
Three guarantees and quality cost 73394539.28 138960972.56
Business entertainment fee 16300099.96 28210881.07
Other 20230754.86 14977761.41
Total 189528090.71 264651432.56
49.Administration expenses
In RMB
Item Current period Last Period
Salary and wage related expense 312885696.17 322167980.30
Depreciation charger and long-term
80103136.0671899617.49
assets amortization
Consumption of office materials and
20460578.2524870963.21
business travel charge
Share-based payment 18889058.87 48352297.07
Other 154048004.97 144581292.17
Total 586386474.32 611872150.24
196无锡威孚高科技集团股份有限公司2022报告全文
50.R&D expenses
In RMB
Item Current period Last Period
Technological development expenses 581488711.88 595406951.64
Total 581488711.88 595406951.64
51.Financial expenses
In RMB
Item Current period Last Period
Interest expenses 107737432.78 38698621.09
Note discount interest expenses 19837754.67
Less: interest income 41020724.48 41478845.32
Gains/losses from exchange 10099986.41 -1982034.19
Handling charges 5510921.05 4987752.59
Total 82327615.76 20063248.84
52.Other income
In RMB
Sources of income generated Current period Last Period
Government grants with routine
111670734.7769734194.44
operation activity concerned
VAT instant refund 2460.01
Refund of individual income tax
994662.501540317.23
handling fee
Total 112665397.27 71276971.68
53.Investment income
In RMB
Item Current period Last period
Income of long-term equity investment calculated
1636986684.961632117748.78
based on equity method
Investment income from disposal of long-term
8701134.99
equity investments
Investment income from holding financial assets
216491612.58314664249.00
available for sales
Dividend income obtained from other equity
683455.00
instrument investments during the holding period
Investment income from the disposal of trading
137682.59
financial assets
Recognition of profit and loss from financing
-5153934.63
discount of receivables
Interest payments on discounted bills -959296.18
Total 1849145500.50 1954523836.59
54.Income from change of fair value
In RMB
Sources Current period Last period
197无锡威孚高科技集团股份有限公司2022报告全文
Changes in the fair value of wealth management
-12803609.57-380318.88
products
Changes in the fair value of the stocks of listed
companies held-excluding the stocks of listed
-144072026.77-38709334.89
companies that are included in other equity
instrument investments
Changes in fair value of foreign exchange
-747115.75-1180680.04
contracts
Total -157622752.09 -40270333.81
55.Credit impairment loss
In RMB
Item Current period Last period
Bad debt loss -1645881142.40 4059750.80
Total -1645881142.40 4059750.80
56.Asset impairment loss
In RMB
Item Current period Last period
Loss of inventory falling price and loss of
-181610433.12-134434667.54
contract performance cost impairment
Impairment loss of fixed assets -3682648.26
Total -181610433.12 -138117315.80
57.Income form assets disposal
In RMB
Sources Current period Last period
Income from disposal of non-current assets 3687970.49 6580346.41
Losses from disposal of non-current assets -1701165.96 -2648002.34
Total 1986804.53 3932344.07
58.Non-operating income
In RMB
Amount reckoned into current
Item Current period Last Period
non-recurring gains/losses
Payables that do not require
2048698.722048698.72
payment
Price difference for business
combinations not under the 3181563.57 3181563.57
same control
Liquidated damages and
281760.53397361.84281760.53
compensation income
Other 187745.22 258840.23 187745.22
Total 5699768.04 656202.07 5699768.04
Government grants included in the current profit and loss: Nil
59.Non-operating expense
In RMB
198无锡威孚高科技集团股份有限公司2022报告全文
Amount reckoned into current
Item Current period Last Period
non-recurring gains/losses
Donation 5013500.00 237041.06 5013500.00
Non-current assets disposal
2135371.4324984204.922135371.43
losses
Including: loss on scrapping
2135371.4324615193.782135371.43
of fixed assets
Loss on scrapping
369011.14
of intangible assets
Other 562788.63 288323.89 562788.63
Total 7711660.06 25509569.87 7711660.06
60.Income tax expense
(1) Income tax expense
In RMB
Item Current period Last period
Payable tax in current period 11061046.36 140397942.05
Adjusted the previous income tax 2032113.63 941390.84
Increase/decrease of deferred income tax
-56032739.30-54019435.84
assets
Increase/decrease of deferred income tax
31608004.403675792.90
liability
Total -11331574.91 90995689.95
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item Current period
Total profit 179614433.34
Income tax measured by statutory/applicable tax rate 26942165.00
Impact by different tax rate applied by subsidies -178056001.37
Adjusted the previous income tax 2032113.63
Impact by non-taxable revenue -249319108.30
Impact on cost expenses and losses that unable to deducted 11515020.27
Impact by the deductible losses of the un-recognized previous deferred income tax -3778371.61
The deductible temporary differences or deductible losses of the un-recognized
455617403.14
deferred income tax assets in the Period
Impact on additional deduction -104482259.45
Other 28197463.78
Income tax expense -11331574.91
61.Other comprehensive income
See Note V-42 “Other comprehensive income”.
62.Items of cash flow statement
(1) Other cash received in relation to operation activities
In RMB
Item Current period Last period
Interest income 41020724.48 41478845.32
199无锡威孚高科技集团股份有限公司2022报告全文
Government grants 32507707.23 38578031.24
Margin on operation bill 170000.00 3237920.90Capital inflow of WFTR “platform
3604252294.46trade” business portfolio
Other 4898138.17 2873765.53
Total 3682848864.34 86168562.99
Explanation to other cash received in relation to operation activities: Nil
(2) Other cash paid in relation to operation activities
In RMB
Item Current period Last period
Cash cost 571583226.93 628017019.32Capital outflow of WFTR “platform
6345751426.41trade” business portfolio
Other 37760946.39 20190804.06
Total 6955095599.73 648207823.38
Explanation to other cash paid in relation to operation activities: Nil
(3) Cash received from other investment activities
In RMB
Item Current period Last period
The contingent consideration received
1136214.91
for the purchase of Borit’s equity
Other 544552.00
Total 1680766.91
Explanation to cash received from other investment activities: Nil
(4) Cash paid related with investment activities
In RMB
Item Current period Last period
Deposit paid for the purchase of VHCN 136739145.73
Payment of foreign exchange contract
9492968.77
deposit
Total 146232114.50
Explanation to cash paid related with investment activities: Nil
(5) Other cash received in relation to financing activities
In RMB
Item Current period Last period
Borrowings received by WFLD 5470000.00
Total 5470000.00
Explanation to other cash received in relation to financing activities: Nil
200无锡威孚高科技集团股份有限公司2022报告全文
(6) Cash paid related with financing activities
In RMB
Item Current period Last period
Repayment loan of RBIT 163470112.06
National debt paid transfer to loans 339090.00
Borrowing return by WFLD 5470000.00 5470000.00
Lease payments 19302140.88 7718867.54
Repurchase of A shares 397804542.63
Shares repurchase and cancellation for restricted stock incentive
5323400.004068729.06
plan and handling charge
Total 591370195.57 17596686.60
Explanation to other cash paid related with financing activities: Nil
63.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 190946008.25 2649364676.15
Add: Assets impairment provision 1827491575.52 134057565.00
Depreciation of fixed assets consumption of oil assets and 423381573.22
399184362.08
depreciation of productive biology assets
Depreciation of right-of-use assets 10487347.35 8672462.76
Amortization of intangible assets 47414586.57 42460206.35
Amortization of long-term deferred expenses 5676279.94 4800457.79
Loss from disposal of fixed assets intangible assets and other long-
-1986804.53-3932344.07
term assets
Losses on scrapping of fixed assets 2135371.43 24984204.92
Gain/loss of fair value changes 157622752.09 40270333.81
Financial expenses 106707239.68 31368748.20
Investment loss -1874322320.27 -1944475801.41
Decrease of deferred income tax asset -56032739.30 -54019435.84
Increase of deferred income tax liability 31608004.40 3675792.90
Decrease of inventory 1073359311.32 -723297146.60
Decrease of operating receivable accounts -3936816340.90 1615814968.48
Increase of operating payable accounts -608366974.35 -1676121153.69
Other 24952480.15 74904696.58
Net cash flows arising from operating activities -2575742649.43 627712593.41
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 2277117604.82 1094018936.73
Less: Balance of cash equivalent at year-begin 1094018936.73 944946018.70
Add: Balance at year-end of cash equivalents
Less: Balance at year-begin of cash equivalents
Net increase of cash and cash equivalents 1183098668.09 149072918.03
201无锡威孚高科技集团股份有限公司2022报告全文
(2) Net cash payment for the acquisition of subsidiaries in the period
In RMB
Amount
Cash or cash equivalents paid in the current period for the
182950038.25
business acquisition in the current period
Including:
Less: Cash and cash equivalents held by subsidiaries at the
112759708.54
purchase date
Including:
Add: Cash or cash equivalents paid in the current period for the
business acquisition that occurred in previous periods
Including:
Net cash payment for the acquisition of subsidiaries 70190329.71
Other explanation: Nil
(3) Net cash received from the disposal of subsidiaries
In RMB
Amount
Cash or cash equivalents received in the current period for the
disposal of subsidiaries in the current period
Including:
Less：Cash and cash equivalents held by subsidiaries at the
loss control date
Including:
Add: Cash or cash equivalents received in the current period
136787298.86
for the disposal of subsidiaries in the previous period
Including:
Net cash received from the disposal of subsidiaries 136787298.86
Other explanation:
Net cash received for disposal of subsidiaries during the period is that VHIT disposed its subsidiary before October 31 2022
and received the equity disposal payment in December 2022.
(4) Constitution of cash and cash equivalent
In RMB
Item Ending balance Opening balance
I. Cash 2277117604.82 1094018936.73
Including: Cash on hand 51818.51 150438.79
Bank deposit available for
2277065786.311093868497.94
payment at any time
II. Balance of cash and cash equivalents
2277117604.821094018936.73
at the period-end
202无锡威孚高科技集团股份有限公司2022报告全文
Other explanation:
The difference between bank deposits available for payment at any time and the bank deposits in Note V-1 “Monetary Funds” is the
company's fixed deposits in the bank.
64.Note of the changes of owners’ equity
Explain the items and amount at period-end adjusted for “Other” at end of the last year: Nil
65.Assets with ownership or use right restricted
In RMB
Item Ending book value Restriction reason
Monetary funds 18840000.00 Forex Contracts USD Margin
Monetary funds 24368385.65 Notes pledge for bank acceptance
Monetary funds 7487250.00 IRD performance bond
Monetary funds 199660.00 Cash deposit for Mastercard
Monetary funds 180000.00 Court freezing
Monetary funds 5000.00 ETC freezing
Note receivable 82908186.94 Notes pledge for bank acceptance
Receivables financing 530337600.45 Notes pledge for bank acceptance
Total 664326083.04
66.Item of foreign currency
(1) Item of foreign currency
In RMB
Closing balance of foreign Rate of conversion Ending RMB balance
Item
currency converted
Monetary funds
Including: USD 21346973.12 6.9646 148673128.99
EUR 48296719.62 7.4229 358501720.07
HKD 17293992.68 0.89327 15448204.84
JPY 46929606.00 0.052358 2457140.31
DKK 111164111.86 0.9983 110975132.87
Account receivable
Including: USD 4732628.22 6.9646 32960862.50
EUR 27066494.35 7.4229 200911880.92
JPY 13084572.00 0.052358 685082.02
DKK 6966207.98 0.9983 6954365.43
Long-term borrowings
Including: USD
EUR
HKD
Other account receivables
Including: DKK 2035772.98 0.9983 2032312.17
Short-term borrowings
Including: USD 457403.05 6.9646 3185629.28
203无锡威孚高科技集团股份有限公司2022报告全文
EUR 18989418.64 7.4229 140956555.62
Account payable
Including: USD 885151.79 6.9646 6164728.16
EUR 36055545.43 7.4229 267636708.17
JPY 50362512.00 0.052358 2636880.41
DKK 6081507.53 0.9983 6071168.97
GBP 2450.00 8.3941 20565.55
Other account payable
Including: EUR 5172.58 7.4229 38395.54
DKK 151513.30 0.9983 151255.73
Non-current liabilities due
within one year
Including: USD 156513.08 6.9646 1090051.00
EUR 496988.78 7.4229 3689098.02
DKK 575121.48 0.9983 574143.77
Leasing liabilities
Including: USD 386008.72 6.9646 2688396.33
EUR 1285051.24 7.4229 9538806.85
DKK 11525669.67 0.9983 11506076.03
(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 VHIT was established in Italy in 2000. The Company acquired 100.00% equity of VHIT 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.Government grants
(1) Government grants
In RMB
Amount reckoned in
Category Amount Item
current gain/loss
Development of variable nozzle turbochargers that Deferred income other
950000.00424674.33
meet the requirements of National VI B income
2022 Technical Transformation Fund Allocation 990000.00 Deferred income
Development of Turbochargers for Automotive
120000.00 Deferred income
Hybrid Engines
204无锡威孚高科技集团股份有限公司2022报告全文
Subsidy funds for water-saving enterprises in the
110000.00 Deferred income
construction of water-saving carriers in Nanjing
Deferred income other
Borit R&D subsidy -22124.54 35419.76
income
Annual output of 150000 gasoline engine Deferred income other
-40300.00282056.24
turbochargers income
Deferred income other
Neptune 250509.22 357572.17
income
3 R 751898.43 Other income 751898.43
Job stabilization and expanding subsidy 3820755.20 Other income 3820755.20
Training subsidy 432575.00 Other income 432575.00
Talent policy subsidy 1135000.00 Other income 1135000.00
2021 Industrial Development Fund for Investment
6913300.00 Other income 6913300.00
Attracting Enterprises in Tongliang District
BORIT withholding refund 1400901.38 Other income 1400901.38
Industrial upgrading fund 5649800.00 Other income 5649800.00
Special funds for high-quality development 1000000.00 Other income 1000000.00
Development funds for small and medium-sized
2000000.00 Other income 2000000.00
enterprises
Selection of Top 50 Enterprises in Jiangbei District
1030000.00 Other income 1030000.00
Ningbo
Other 5706368.00 Other income 5706368.00
Financial discount 246600.00 Financial expense 246600.00
Total 32445282.69
(2) Government grants rebate
□Applicable □Not applicable
In RMB
Item Amount Reason
The company transferred out government
Borit R&D subsidy 22124.54
subsidies expected to be refunded
Annual output of 150000 gasoline Government recovery of duplicate
40300.00
engine turbochargers subsidy funds
Total 62424.54
68.Others
None
VIII. Changes of consolidation scope
1. Enterprise combine not under the same control
(1) Enterprise combines not under the same control occurred in the period
In RMB
Name of Date of Cost of Equity Method of Purchase Basis for Income of Net profit
the equity equity acquisition acquiring date determinin the of the
purchased acquisition acquisition ratio equity g the purchased purchased
party purchase party from party from
205无锡威孚高科技集团股份有限公司2022报告全文
date the the
purchase purchase
date to the date to the
end of the end of the
period period
VHIT/VH
CN(Collect
ively
known as Transfer of
Oct. 31 19625821 Cash Oct. 31 17791143 1516124.5
vacuum 100.00% control
2022 4.90 acquisition 2022 3.07 9
and right
hydraulic
pump
business)
(2) Consolidation cost
In RMB
Consolidation cost
--Cash 196258214.90
--Fair value of non-cash assets
--Fair value of debt issued or assumed
--Fair value of equity securities issued
--Fair value of contingent consideration
--Fair value of equity held before the purchase date at the purchase date
--Other
Total consolidated costs 196258214.90
Less: Fair value share of identifiable net assets obtained 199439778.47
The amount of goodwill/merger cost less than the fair value share of identifiable net
3181563.57
assets obtained
Method for determining the fair value of merger costs explanation of contingent consideration and its changes: Nil
The main reason for the formation of large goodwill: Nil
Other explanation: Nil
(3) Book value of assets and liabilities of the merged party on the merger date
In RMB
vacuum and hydraulic pump
Fair value on merge date Book value on merge date
Assets:
Monetary funds 112759708.54 112759708.54
Accounts receivable 176472824.41 176472824.41
Inventory 75714864.30 75193955.32
Fixed assets 171076046.21 163063849.08
Intangible assets 54001513.43 3227177.74
Prepayments 30000.00 30000.00
Other receivables 139400701.37 139400701.37
Other current assets 24017677.49 24017677.49
Construction in progress 64268995.00 64268995.00
Right-of-use assets 810420.49 810420.49
206无锡威孚高科技集团股份有限公司2022报告全文
Deferred tax assets 7079671.21 7079671.21
Other non-current assets 19478954.99 19478954.99
Liabilities:
Loan
Payables 234320004.21 234320004.21
Deferred Tax Liability 14239001.21
Contractual liabilities 3921267.48 3921267.48
Payable employee compensation 33153750.99 33153750.99
Taxes and fees payable 2552462.68 2552462.68
Other payables 304829051.67 304829051.67
Non-current liabilities due within one
324718.81324718.81
year
Other current liabilities 12987488.80 12987488.80
Lease liabilities 539932.04 539932.04
Long term employee compensation
27863535.8927863535.89
payable
Anticipated liabilities 10940385.19 10940385.19
Net assets 199439778.47 154371337.88
Less: Minority shareholders' equity
Net assets acquired 199439778.47 154371337.88
Method for determining the fair value of identifiable assets and liabilities: Nil
Contingent liabilities assumed by the acquiree in a business merger: Nil
Other instructions: 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 purchasee’s identifiable assets and liabilities cannot be reasonable determined
Nil
(6) Other explanation
Nil
2. Enterprise combines under the same control
(1) Business combinations under the same control that occurred in the current period
Nil
(2) Consolidation cost
Nil
207无锡威孚高科技集团股份有限公司2022报告全文
(3) Book value of assets and liabilities of the merged party on the merger date
Nil
3. Reverse purchase
NA
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
Explanation on changes in the scope of consolidation due to other reasons (e.g. new establishment of a subsidiary subsidiary
liquidation etc.) and related information:
In the Period Wuxi Weifu Qinglong Power Technology Co. Ltd was jointly funded by the Company with IRD FUEL
CELLS A/S BORIT NV ROBERT BOSCH INTERNATIONALE BETEILIGUNGEN AG and Wuxi High-Tech Zone New
Dynamic Industrial Development Fund (Limited Partnership). The Company holds 45% equity directly and 30% equity indirectly
via IRD and Borit. The Company is the actual controller of Wuxi Weifu Qinglong Power Technology Co. Ltd.
6.Others
Nil
IX. Equity in other entity
1.Equity in subsidiary
(1) Constitute of enterprise group
Main Regist Share-holding ratio
Subsidiary operatio ered Business nature Acquired way
n place place Directly Indirectly
Nanjin Spare parts of internal- Enterprise combines under
WFJN Nanjing 80.00%
g combustion engine the same control
Automobile exhaust Enterprise combines under
WFLD Wuxi Wuxi 94.81%
purifier muffler the same control
Spare parts of internal-
WFMA Wuxi Wuxi 100.00% Investment
combustion engine
Spare parts of internal-
WFCA Wuxi Wuxi 100.00% Investment
combustion engine
Enterprise combines under
WFTR Wuxi Wuxi Trading 100.00%
the same control
Spare parts of internal-
WFSC Wuxi Wuxi 66.00% Investment
combustion engine
Ningb Spare parts of internal- Enterprise combines not
WFTT Ningbo 98.83% 1.17%
o combustion engine under the same control
208无锡威孚高科技集团股份有限公司2022报告全文
Spare parts of internal- Enterprise combines not
WFAM Wuxi Wuxi 51.00%
combustion engine under the same control
Wuha Automobile exhaust
WFLD (Wuhan) Wuhan 60.00% Investment
n purifier muffler
Chongqi Chong Automobile exhaust
WFLD (Chongqing) 100.00% Investment
ng qing purifier muffler
Nancha Nanch Automobile exhaust
WFLD (Nanchang) 100.00% Investment
ng ang purifier muffler
WFAS Wuxi Wuxi Smart car equipment 66.00% Investment
Enterprise combines not
WFDT Wuxi Wuxi Hub Motor 80.00%
under the same control
WFQL Wuxi Wuxi Fuel cell components 45.00% 30.00% Investment
Vacuum and hydraulic Enterprise combines not
VHCN Wuxi Wuxi 100.00%
pump under the same control
Denmar Denm
SPV Investment 100.00% Investment
k ark
Denmar Denm Enterprise combines not
IRD Fuel cell components 100.00%
k ark under the same control
Ameri Enterprise combines not
IRD America America Fuel cell components 100.00%
ca under the same control
Belgiu Enterprise combines not
Borit Belgium Fuel cell components 100.00%
m under the same control
Ameri Enterprise combines not
Borit America America Fuel cell components 100.00%
ca under the same control
Vacuum and hydraulic
VHIT Italy Italy 100.00% Investment
pump
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
(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% 17248806.27 66468437.62 210600503.32
WFSC 34.00% 5564553.15 26591139.14
WFLD 5.19% 7744005.93 147668021.86
WFAM 49.00% 42540064.71 32680000.00 216555779.48
Total 73097430.06 99148437.62 601415443.80
Explanation on holding ratio different from the voting right ratio for minority shareholders: Nil
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
Ending balance Opening balance
Subsid Curren Non- Curren Non-Non- Total Non- Total
Curren Total t current Curren Total t current
iary current liabiliti current liabiliti
t assets assets liabiliti liabiliti t assets assets liabiliti liabiliti
assets es assets es
es es es es
WFJN 85841 57735 1435 346383 35181 381564 11632 312639 14758 403140 39065 442206
209无锡威孚高科技集团股份有限公司2022报告全文
9058.9266.77832138.63853.60992.2344507.160.9783668.636.22672.06308.28
16264.424340
4862725276
20413817416217416221606646302262369200467200467
WFSC 033.7 5622.
588.74086.64086.64879.24741.60620.84446.49446.49
953
486931412628135122180737304503213546585783558335798
21480
WFLD 73661. 23767 61133 11668 5518. 19220 23903. 14615. 38518. 21743. 01785.
042.25
601.122.726.68795.473010404166
WFA 434472 554774 989247 449094 99748 548842 413380 483832 897212 450194 59932 510126
M 654.85 642.02 296.87 531.03 081.81 612.84 063.83 825.41 889.24 211.90 162.99 374.89
63662592895944813530048346295921973849334612147326
120477
Total 40396 99861 40257 75644 5454. 76189 15353. 89343. 04696. 24038. 01915.
877.30
3.353.196.542.98207.188008880232
In RMB
Current period Last Period
Total Cash flow Total Cash flow
Subsidiary Operation comprehen from Operation comprehen from
Net profit Net profit
Income sive operation Income sive operation
income activity income activity
732361563.8315076883150768.62087338.8825822469.96549390.596549390.579645579.9
WFJN
72.4343506447
-
387505622.1636196416361964.350165714.12839649.712839649.738135056.2
WFSC 23846712.6
39.131310668
3
-
593754903265352992653529987740237.6652726856337097184.337114070.
WFLD 323189683.
4.427.317.3134.439610
23
704346941.90524389.190524389.1145137886.641120626.81627198.481627198.453533412.7
WFAM
59445661223
-
7761763164553901145539011271118750.834437737528113423.528130308.
Total 151875634.
2.129.019.01414.206882
25
(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
Nil
210无锡威孚高科技集团股份有限公司2022报告全文
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
Wuxi Weifu Environmental Catalysts. Co.Wuxi Wuxi Catalyst 49.00% Equity method
Ltd.Internal-
RBCD Wuxi Wuxi combustion 32.50% 1.50% Equity method
engine accessories
Internal-
Shang Shang
Zhonglian Automobile Electronics Co. Ltd. combustion 20.00% Equity method
hai hai
engine accessories
Internal-
Wuxi Weifu Precision Machinery
Wuxi Wuxi combustion 20.00% Equity method
Manufacturing Co. Ltd.engine accessories
Changchun Xuyang Weifu Automobile Chang Chang Automobile
34.00% Equity method
Components Technology Co. Ltd. chun chun components
Germa Germa Fuel cell
PrecorsGmbH 8.11% Equity method
ny ny components
Wuxi ChelianTianxia Information Telematics
Wuxi Wuxi 8.83% Equity method
Technology Co. Ltd. services
Lezhuo Bowei Hydraulic Technology Shang Shang Automobile
50.00% Equity method
(Shanghai) Co. Ltd 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:
(1) Precors GmbH:
Wholly-owned subsidiary of the Company - Borit holds 8.11% equity of Precors Borit appointed a director to Precors. Though the
representative Borit can participate in the operation policies formulation of Precors and thus exercise a significant influence over
Precors.
(2) ChelianTianxia:
The Company holds 9.8452% equity of Chelian Tianxia and appointed a director to Chelian Tianxia. Though the representative the
Company can participate in the operation policies formulation of Chelian Tianxia and thus exercise a significant influence over
Chelian Tianxi.
(2) Main financial information of the important joint venture
Nil
(3) Main financial information of the important associated enterprise
In RMB
Ending balance/Current period Opening balance/Last Period
Zhonglian Zhonglian
WFEC RBCD WFEC RBCD
Automobile Automobile
211无锡威孚高科技集团股份有限公司2022报告全文
Current assets 15426523373.9 14697384325.8
3507976754.16241595079.154359756878.8871871241.06
97
Non -current
333764427.433421035986.827557124612.32344385727.943080929311.516819520183.89
assets
18847559360.817778313637.3
Total assets 3841741181.59 7798719691.47 4704142606.82 6891391424.95
18
Current
1665411123.818810309639.096171780.232858118635.518623318592.842970685.68
liabilities
Non-current
493618200.852517670.77224616134.382578140.19
liabilities
Total liabilities 2159029324.66 8810309639.09 8689451.00 3082734769.89 8623318592.84 5548825.87
Including: cash
and cash 813874175.27 10773921.81 225052854.96 158561233.69 10186961.74 68250913.00
equivalent
Minority
interests
Attributable to
parent company 10037249721.7
1682711856.937790030240.471621407836.939154995044.546885842599.08
shareholders’ 2
equity
Share of net
assets
calculated by 824528809.90 3412664905.38 1558006048.09 794489840.10 3112698315.15 1377168519.82
shareholding
ratio
Adjustment
matters
--Goodwill 267788761.35 1407265.96 267788761.35 1407265.96
--Unrealized
profit of -20692355.48 -40372840.77
internal trading
--Other -0.28 -0.28 -0.01
Book value of
equity
investment in 824528809.90 3659761310.97 1559413314.05 794489840.10 3340114235.45 1378575785.77
associated
enterprise
Fair value of
equity
investment for
the affiliates
with
consideration
publicly
Operation 13443929728.5 15712821656.3
4983370807.1526913563.077595559889.8024479957.39
income 8 2
Net profit 354097545.31 3059444530.82 1876187641.39 432505306.32 3237912797.87 1699134647.28
Net profit from
discontinued
operations
Other
comprehensive 34459.46
income
Total
comprehensive 354097545.31 3059444530.82 1876187641.39 432539765.78 3237912797.87 1699134647.28
income
Financial
37298423.01-12919599.29-3814000.75108452297.18-56513383.09-3139306.82
expense
Income tax
43882305.71494166513.514465983.9551379165.70674071693.783579421.41
expense
Dividends
147000000.00765837710.23194400000.0098000000.00558125544.30198800000.00
received from
212无锡威孚高科技集团股份有限公司2022报告全文
associated
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 239114674.05 204764926.80
Amount based on share-holding ratio
--Net profit 7198399.91 -13039885.78
--Total comprehensive income 7198399.91 -13039885.78
(5) Major limitation on capital transfer ability to the Company from joint venture or associated
enterprise
Nil
(6) Excess loss occurred in joint venture or associated enterprise
Nil
(7) Unconfirmed commitment with joint venture investment concerned
Nil
(8) Intangible liability with joint venture or associated enterprise investment concerned
Nil
4. Major conduct joint operation
Nil
5. Structured body excluding in consolidate financial statement
Relevant explanations for structured entities not included in the scope of the consolidated financial statements: nil
213无锡威孚高科技集团股份有限公司2022报告全文
6. Other
Nil
X. Risk related with financial instrument
Main financial instrument of the Company including monetary funds structured deposits account receivable
equity instrument investment financial products loans and account payable etc. more details of the financial
instrument can be found in relevant items of Note VII. Risks concerned with the above-mentioned financial
instrument and the risk management policy takes for lower the risks are as follow:
Aims of engaging in the risk management is to achieve equilibrium between the risk and benefit lower the
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
214无锡威孚高科技集团股份有限公司2022报告全文
required to pay the corresponding amount in advance. In addition for the credit sales that have occurred the
company analyzes and audits the monthly statements for risk warning of accounts receivable to ensure that the
company’s overall credit risk is within a controllable range.The maximum credit risk exposure of the Company is the carrying amount of each financial asset on the balance
sheet.
2.Market risk
Market risk of the financial instrument refers to the fair value of financial instrument or future cash flow due to
fluctuations in the market price changes and produce mainly includes the IRR FX risk and other price risk.
(1) Interest rate risk (IRR)
IRR refers to the fluctuate risks on Company’s financial status and cash flow arising from rates changes in market.IRR of the Company mainly related with the bank loans. In order to lower the fluctuate of IRR the Company in
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 VHIT 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 2022 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 2022:
Item Ending foreign Ending RMB balance
Convert rate Ratio in assets (%)
currency balance converted
Monetary funds
Including: USD 21346973.12 6.9646 148673128.99 0.52
EUR 48296719.62 7.4229 358501720.07 1.26
HKD 17293992.68 0.89327 15448204.84 0.05
JPY 46929606.00 0.052358 2457140.31 0.01
DKK 111164111.86 0.9983 110975132.87 0.39
Account receivable
Including: USD 4732628.22 6.9646 32960862.50 0.12
EUR 27066494.35 7.4229 200911880.92 0.70
JPY 13084572.00 0.052358 685082.02 0.00
DKK 6966207.98 0.9983 6954365.43 0.02
215无锡威孚高科技集团股份有限公司2022报告全文
Item Ending foreign Ending RMB balance
Convert rate Ratio in assets (%)
currency balance converted
Other account receivables
Including: DKK 2035772.98 0.9983 2032312.17 0.01
Total ratio in assets 3.08
* Foreign currency liability of the Company till end of 31st December 2022:
Ending foreign Ending RMB balance
Item Convert rate Ratio in assets(%)
currency balance converted
Short-term borrowings
Including: USD 457403.05 6.9646 3185629.28 0.03
EUR 18989418.64 7.4229 140956555.62 1.40
Account payable
Including: USD 885151.79 6.9646 6164728.16 0.06
EUR 36055545.43 7.4229 267636708.17 2.65
JPY 50362512.00 0.052358 2636880.41 0.03
DKK 6081507.53 0.9983 6071168.97 0.06
GBP 2450.00 8.3941 20565.55 0.00
Other account payable
Including: EUR 5172.58 7.4229 38395.54 0.00
DKK 151513.30 0.9983 151255.73 0.00
Non-current liabilities due
within one year
Including: USD 156513.08 6.9646 1090051.00 0.01
EUR 496988.78 7.4229 3689098.02 0.04
DKK 575121.48 0.9983 574143.77 0.01
Leasing liabilities
Including USD 386008.72 6.9646 2688396.33 0.03
EUR 1285051.24 7.4229 9538806.85 0.09
DKK 11525669.67 0.9983 11506076.03 0.11
Total ratio in liabilities 4.52
* 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.
216无锡威孚高科技集团股份有限公司2022报告全文
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.XI. 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 by fair value -- -- -- --
(I) Financial assets measured at fair value and
whose changes are included in current profit 146039262.82 186608914.00 3712781392.05 4045429568.87
or loss
1.Trading financial assets 146039262.82 2572781392.05 2718820654.87
(1)Investment in equity instrument 146039262.82 146039262.82
(2)Investment in other liability instruments
2572781392.052572781392.05
and equity instrument
2. Other non-current financial assets 186608914.00 1140000000.00 1326608914.00
(1)Equity instrument investment 186608914.00 515000000.00 701608914.00
(2)Investment in other liability instruments
625000000.00625000000.00
and equity instrument
(II) Financial assets measured at fair value
and whose changes are included in current 2596159535.21 2596159535.21
profit or loss
1. Receivable financing 1918368845.21 1918368845.21
2. Other equity instrument investment 677790690.00 677790690.00
Total asset sustaining measured by fair value 146039262.82 186608914.00 6308618136.15 6641266312.97
(I) Financial liabilities measured at fair value
and whose changes are included in current 747115.75 747115.75
profit or loss
Derivative financial liability- foreign
747115.75747115.75
exchange contract
Total liability sustaining measured by fair
747115.75747115.75
value
II. Non-persistent measure -- -- -- --
217无锡威孚高科技集团股份有限公司2022报告全文
2.Recognized basis for the market price sustaining and non-persistent measured by fair value on first
level
On 31 December 2022 the financial assets available for sale equity instrument investments held by the Company include SNAT
(stock code: 600841) Miracle Automation (Stock code: 002009) ifan Technology (Stock Code: 601777) and Zoyte Auto(000980).The fair value at the end of the period is determined at the closing price as of December 30 2022
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
On 31 December 2022 other 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 and liquidity discount as
of December 30 2022.The derivative financial liabilities that continue to be measured at the second level of fair value are forward foreign exchange
settlement and sales contracts and the fair value is measured at the fair value of the forward foreign exchange settlement and sales
contracts provided by the contracting bank.
4.The qualitative and quantitative information for the valuation technique and critical parameter that sustaining
and non-persistent measured by fair value on third level
(1) Accounts receivable financing
For this part of financial assets the Company uses discounted cash flow valuation techniques to determine its fair value. Among
them important unobservable input values mainly include discount rate and contractual cash flow maturity period. The cash flow
with a contract expiration period of 12 months (inclusive) shall not be discounted and the cost shall be regarded as its fair value.
(2) Investment in other equity instruments
For this part of financial assets due to the lack of market liquidity the Company adopts replacement cost method to determine their
fair value. Among them the important unobservable input values mainly include the financial data of the invested company.
(3) Investment in other debt instruments and equity instruments
For this part of financial assets the company uses discounted cash flow valuation technology to determine. Among them the
important unobtainable input values mainly include expected annual return rate and risk coefficient.
5. Continuous third-level fair value measurement items adjustment information between the opening
and closing book value and sensitivity analysis of unobservable parameters
Nil
6. Continuous fair value measurement items if there is a conversion between various levels in the current
period the reasons for the conversion and the policy for determining the timing of the conversion
Nil
7. Changes in valuation technology during the current period and reasons for the changes
Nil
218无锡威孚高科技集团股份有限公司2022报告全文
8. The fair value of financial assets and financial liabilities not measured by fair value
Nil
9. Other
Nil
XII. Related party and related party transactions
1. Parent company of the enterprise
Share-holding ratio
Voting right ratio on
Parent company Registration place Business nature Registered capital on the enterprise for
the enterprise
parent company
Wuxi Industry Operation of state-
Wuxi 5496785600 20.23% 20.23%
Group owned assets
Explanation on parent company of the enterprise
Wuxi Industry Group is an enterprise controlled by the State-owned Assets Management Committee of Wuxi Municipal People’s
Government. Its business scope includes foreign investment by using its own assets house leasing services self-operating and acting
as an agent for the import and export business of various commodities and technologies (Except for goods and technologies that are
restricted by the state or prohibited for import and export) domestic trade (excluding national restricted and prohibited items).(Projects that are subject to approval in accordance with the law can be operated only after being approved by relevant departments).Ultimate controller of the Company is State-owned Assets Supervision & Administration Commission of Wuxi Municipality of
Jiangsu Province.Other explanation:
Nil
2. Subsidiary of the Company
For more details of the Company’s subsidiaries please refer to IX. 1. “Equity in subsidiary”
3. Joint venture and associated enterprise
For more details please refer to Note IX.3. “Equity in joint venture and associated enterprise”
Other associated enterprise or joint ventures which has related transaction with the Company in the period or occurred previous:
Nil
4. Other related party
Other related party Relationship with the Company
Robert Bosch Company Second largest shareholder of the Company
Guokai Metals Enterprises controlled by the parent company
Urban Public Distribution Enterprises controlled by the parent company
Company A(Because it is still in the investigation stage of the
Enterprises controlled by relatives of directors of the Company
public security organs for the sake of case confidentiality
219无锡威孚高科技集团股份有限公司2022报告全文
temporarily use “Company A” to indicate)
Key executive Director supervisor and senior executive of the Company
5. Related transaction
(1) Goods purchasing labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Whether more than
Content of related Approved
Related party Current period the transaction limit Last Period
transaction transaction limit
(Y/N)
WFPM Goods and labor 52775709.71 40000000.00 Y 49839916.90
RBCD Goods and labor 301077307.73 450000000.00 N 359903131.37
WFEC Goods 575378265.05 700000000.00 N 823962918.45
Robert Bosch
Goods and labor 232163763.73 300000000.00 N 216576637.98
Company
Changchun
Goods 342520.00 1500000.00 N 1712596.87
Xuyang
Guolai Metals Goods 14516381.84 N 57991174.20
Goods sold/labor service providing
In RMB
Related party Content of related transaction Current period Last Period
WFPM Goods and labor 980889.25 29501561.74
RBCD Goods and labor 2220345511.60 3137245415.70
WFEC Goods and labor 944537.87 7630155.96
Robert Bosch Company Goods and labor 1475458231.00 1224350229.77
Shinwell Automobile Goods 29250.79
Changchun Xuyang Goods and labor 286036.62 21436170.70
Description of related transactions in the purchase and sale of goods provision and acceptance of labor services
Shinwell Automobile Technology (Wuxi) Co. Ltd. formerly an affiliated company of the subsidiary WFTR was transferred in
2021
(2) Related trusteeship management/contract & entrust management/ outsourcing
Nil
(3) Related lease
As a lessor for the Company:
In RMB
Lease income recognized in Lease income recognized at
Lessee Assets type
the Period last Period
WFEC Workshop 2380758.09 1683130.70
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 from 1 January 2022 to 31 December 2022 was 2380758.09 yuan.
220无锡威孚高科技集团股份有限公司2022报告全文
(4) Related guarantee
Nil
(5) Related party’s borrowed/lending funds
In RMB
Related party Loan amount Start date Maturity Description
Lending
Wuxi Industry This year WFLD paid lending
5470000.002021-07-292023-07-20
Group funds to Wuxi Industry Group.
(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 executives 6790000 26170000.00
(8) Other related transactions
Equity related transactions
* During the report period the Company and its wholly-owned subsidiary SPV acquired vacuum and hydraulic pump business
from Robert Bosch Company and its subsidiary Robert Bosch S.p.A. Society à Unipersonale at a consideration of RMB
182950038.25. The net assets acquired are detailed in Note VI 1 “Merger of Enterprises Not Under Common Control”.
* During the report period the Company entered into a joint venture contract with Robert Bosch International Beteiligungen
AG a subsidiary of Robert Bosch Company and Bosch (China) Investment Ltd. in which the three parties jointly invested to
establish Lezhuo Bowei Hydraulic Technology (Shanghai) Co. Ltd. (hereinafter referred to as “Lezhuo Bowei”). Robert Bosch
International Beteiligungen AG and Bosch (China) Investment Ltd. subscribed RMB 220 million accounting for 50% of the
registered capital of Lezhuo Bowei.* During the report period Wuxi Weifu Qinglong Power Technology Co. Ltd was jointly funded by the Company with
IRD FUEL CELLS A/S BORIT NV ROBERT BOSCH INTERNATIONALE BETEILIGUNGEN AG (a subsidiary of Robert
Bosch Company) and Wuxi High-Tech Zone New Dynamic Industrial Development Fund (Limited Partnership). ROBERT
BOSCH INTERNATIONALE BETEILIGUNGEN AG a subsidiary of Robert Bosch Company subscribed RMB 75.00 million
accounting for 15% of the registered capital of Wuxi Weifu Qinglong Power Technology Co. Ltd.Other related transactions
Related party Contents of item Current period Last Period
WFPM Purchase of fixed assets 50000.00 --
RBCD Payable for technical services -- 455591.30
RBCD Purchase of fixed assets 4503484.90 528378.37
RBCD Technology royalties paid etc. 1147294.75 2332313.62
221无锡威孚高科技集团股份有限公司2022报告全文
Related party Contents of item Current period Last Period
Providing of technical
RBCD 2053000.00 --
services etc.Robert Bosch Company Technology royalties paid etc. 2316825.65 5577508.74
Robert Bosch Company Purchase of fixed assets 49061191.70 927851.05
WFEC Purchase of fixed assets -- 20353.98
WFEC Payable for technical services 102075.47 450000.00
WFEC Utilities payable 1187817.04 --
Providing of technology
WFEC 42169.81 873420.02
service etc.Purchase canteen ingredients
Urban public distribution 1392464.33
etc
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
WFPM 299389.13 10925.29 1233084.39
receivable
Account
RBCD 461493652.46 174766.71 48954455.60 56805.74
receivable
Account Robert Bosch
363021724.83882016.11236685486.17426203.85
receivable Company
Other account Robert Bosch
692995.30
receivables Company
Account Changchun
5464.91995215.93
receivable Xuyang
Account
WFEC 514638.29 6212780.39
receivable
Other account
WFEC 147000000.00
receivables
Robert Bosch
Prepayments 5249715.46 539263.12
Company
Other non-current Robert Bosch
1470000.009932547.00
assets Company
Other non-current Wuxi Industry
5452800.00
assets Group
(2) Payable item
In RMB
Item Related party Ending book balance Opening book balance
Account payable WFPM 17783464.23 11634159.55
Other account payable WFPM 29000.00 29000.00
Account payable WFEC 274115921.53 299939408.63
Account payable RBCD 37603958.72 33418536.50
Account payable Robert Bosch Company 49500046.68 16412385.58
Account payable Guokai Metals 3.12 2.86
Other current liabilities RBCD 0.05 120466375.78
Other current liabilities WFPM 76030.18
222无锡威孚高科技集团股份有限公司2022报告全文
Other current liabilities Robert Bosch Company 63572.08 39165.98
Other account payable Wuxi Industry Group 5476184.14
Other account payable Guokai Metals 2717849.00
Other account payable Robert Bosch Company 13308176.65 --
Contract liability RBCD 0.36 0.36
Contract liability Robert Bosch Company 510212.12 796325.77
Contract liability WFPM 584847.43
(3) Related claims of "platform trade" business
Item Related party Ending balance Opening balance
Other receivables Company A 2415151888.80 --
Note: Based on the principle of caution Company A combines the balance of 4 companies that may be controlled by Company
A into the following list. The balance is the difference between the "purchase fund" paid by WFTR based on the "platform trade"
business and the "sales fund" received by WFTR. In accordance with the principle of substance over form the company does not
treat the "platform trade" business of WFTR as normal trade business but as fund collection and payment business for accounting
treatment so it is listed as other receivables.
7. Undertakings of related party
Nil
8. Other
Nil
XIII. Share-based payment
1. Overall situation of share-based payment
□Applicable □Not applicable
In RMB
Total amount of various equity instruments
0.00
granted by the Company in the current period
Total amount of various equity instruments
exercised by the Company in the current 199195200.00
period
Total amount of various equity instruments
invalidated by the company in the current 157213350.00
period
The scope of the exercise price of the stock The grant price is 15.48 yuan per share; the exercise time is from the first trading
options issued by the company at the end of day 24 months after the completion of the registration of the restricted stocks
granted in the first tranche to the last trading day within 60 months from the date
the period and the remaining period of the
of completion of the registration of the restricted stock granted in the first
contract tranche so the remaining period of the contract is 3 years and 11 months.The scope of the exercise price of other
N/A
equity instruments issued by the company at
223无锡威孚高科技集团股份有限公司2022报告全文
the end of the period and the remaining
period of the contract.2. Share-based payment settled by equity
□Applicable □Not applicable
In RMB
Method for determining the fair value of equity instruments on the grant Determine based on the closing price of the
date restricted stock on the grant date
Basis for determining the number of vesting equity instruments Unlocking conditions
Reasons for the significant difference between estimate in the current
Not Applicable
period and estimate in the prior period
Cumulative amount of equity-settled share-based payments included in the
111990911.92
capital reserve
Total amount of expenses confirmed by equity-settled share-based
28943506.38
payments in the current period
Other explanations
This restricted stock incentive plan has been reviewed and approved by the company’s second extraordinary general meeting of
shareholders in 2020. The overview of this restricted stock incentive plan is as follows:
(1) Stock source: the company’s A-share common stock repurchased from the secondary market.
(2) Grant date: November 12 2020.
(3) Grant objects and number of grants: 19540000 restricted stocks were granted to 601 incentive recipients of the company and its
subsidiaries.
(4) Grant price: 15.48 yuan/share.
(5) Grant registration completion date: December 4 2020.
(6) Lifting the restrictions on sales:
Unlock period Unlock time Ratio of unlocked quantity
to granted quantity
Phase I unlocked Starting from the first trading day 24 months after the completion of the registration
of the first grant and ending on the last trading day within 36 months
Phase II unlocked Starting from the first trading day 36 months after the completion of the registration
of the first grant and ending on the last trading day within 48 months
Phase III unlocked Starting from the first trading day 48 months after the completion of the registration
of the first grant and ending on the last trading day within 60 months
(7) Performance appraisal requirements at the company level:
Unlock conditions Performance appraisal requirements
1. the weighted average ROE for year of 2021 is not less than 10%;
2. the growth rate of self-operating profit in 2021 will not be less than 6% compared with the year of
The first batch of unlock
2019 the absolute amount will not be less than 845 million yuan;
conditions
3. the cash dividends for year of 2021 shall be no less than 50% of the profit available for distribution
of the current year.The second batch of 1. the weighted average ROE for year of 2022 is not less than 10%;
unlocking conditions 2. the growth rate of self-operating profit in 2022 will not be less than 12% compared with the year of
2019 the absolute amount will not be less than 892 million yuan;
3. the cash dividends for year of 2022 shall be no less than 50% of the profit available for distribution
of the current year.
1. the weighted average ROE for year of 2023 is not less than 10%;
2. the growth rate of self-operating profit in 2023 will not be less than 20% compared with the year of
The third batch of unlocking
2019 the absolute amount will not be less than 958 million yuan;
conditions
3. the cash dividends for year of 2023 shall be no less than 50% of the profit available for distribution
of the current year.Other explanation: self-operating profit refers to the net profit attributable to the owners of the parent company after deducting non-
224无锡威孚高科技集团股份有限公司2022报告全文
recurring gains and losses and deducting the investment income from RBCD and Zhonglian Electronics.
3. Share-based payment settled by cash
□ Applicable □ Not applicable
4. Modification and termination of share-based payment
Nil
5. Other
Nil
XIV. Undertakings or contingency
1. Important undertakings
Important undertakings on balance sheet date
Nil
2. Contingency
(1) Contingency on balance sheet date
Nil
(2) For the important contingency not necessary to disclosed by the Company explained reasons
The Company has no important contingency that need to disclosed
(3) Other information required by the Guidelines for Information Disclosure of Automobile
Manufacturing Related Industries
The Company need to comply with the disclosure requirement on related industry of automobile manufacturing in the Shenzhen
Stock Exchange Self-Regulatory Guidelines for Listed Companies No.3 - Disclosure of Industry Information
Mortgage sales financial leasing and other models of sales accounted for more than 10% of operating income
□ Applicable □ Not applicable
The company’s guarantee to the dealer
□ Applicable □ Not applicable
3. Other
Nil
225无锡威孚高科技集团股份有限公司2022报告全文
XIV. Undertakings or contingency
1. Important undertakings
Important undertakings on balance sheet date
Nil
2. Contingency
(1) Contingency on balance sheet date
Nil
(2) For the important contingency not necessary to disclosed by the Company explained reasons
The Company has no important contingency that need to disclosed
(3) Other information required by the Guidelines for Information Disclosure of Automobile
Manufacturing Related Industries
The Company need to comply with the disclosure requirement on related industry of automobile manufacturing in the Shenzhen
Stock Exchange Self-Regulatory Guidelines for Listed Companies No.3 - Disclosure of Industry Information
Mortgage sales financial leasing and other models of sales accounted for more than 10% of operating income
□ Applicable √ Not applicable
The company's guarantee to the dealer
□ Applicable √ Not applicable
3. Other
Nil
XV. Events after balance sheet date
1. Important non-adjustment matters
Nil
2. Profit distribution
In RMB
Profit or dividend plans to distributed 98317329.30
Profit or dividend declare to be 98317329.30
226无锡威孚高科技集团股份有限公司2022报告全文
distributed which have been approved
Based on the 983173293 shares which exclude the buy-back shares on buy-back account
(25000000 A-stock) from total share capital 1008173293 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 1.00 yuan (tax included) cash dividend
for every 10 shares held no bonus shares without capitalization from capital reserves. The
Profit distribution plan remaining undistributed profit is carried forward to the next year. The total amount of cash
dividend to be paid is RMB 98317329.3 (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 profit distribution plan will be submitted for consideration at the 2022 Annual General
Meeting.
3. Return of sales
Nil
4. Other events after balance sheet date
The company's wholly-owned subsidiary WFTR received the "case notice" issued by the Wuxi Public Security
Bureau Xinwu branch in April 12 2023 evening. It was informed: Weifu TR contract fraud case in line with
the conditions for filing criminal cases has decided to file.XVI. Other important events
1. Previous accounting errors collection
Nil
2. Debt restructuring
Nil
3. Assets 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
227无锡威孚高科技集团股份有限公司2022报告全文
of the employees of the enterprise. In accordance with the State’s annuity policy the Company will adjusted the
economic benefits in due time in principle of responding to the economic strength of the enterprise the amount
paid by the enterprise at current period control in the 8 percent of the total salary of last year the maximum annual
allocation to employees shall not exceed five times the average allocation to employees and the excess shall not be
counted towards the allocation. The individual contribution is limited to 1% of one’s total salary for the previous
year. Specific paying ratio later shall be adjusted correspondingly in line with the operation condition of the
Company.In December 2012 the Company received the Reply on annuity plans reporting under the name of WFHT from
labor security administration department later the Company entered into the Entrusted Management Contract of
the Annuity Plan of WFHT with PICC.
5. Termination of operation
Not applicable
6. Segment
(1) Recognition basis and accounting policy for reportable segment
Determine the operating segments in line with the internal organization structure management requirement and
internal reporting system. Operating segment of the Company refers to the followed components that have been
satisfied at the same time:
* The component is able to generate revenues and expenses in routine activities;
* Management of the Company is able to assess the operation results regularly and determine resources
allocation and performance evaluation for the component;
* Being analyzed financial status operation results and cash flow of the components are able to require by the
Company
The Company mainly engaged in the manufacture of fuel system of internal combustion engine and fuel cell
components products auto components muffler purifier vacuum pump and hydraulic pump etc. based on the
product segment the Company determine four reporting segments as auto fuel injection system and fuel cell
components automotive post processing system air management system and vacuum pump and hydraulic pump.Also as mentioned in Note XVI-7 WFTR launched a new "platform trade" business in 2022 WFTR was
defrauded by contracts in its "platform trade" business and has been launched a criminal investigation on the case
by the security organs. The management of the company comprehensively judges that the business does not
belong to normal trade business with a high probability in order to accurately present the normal operation of the
Company the Company presents the "platform trade" business as a separate segment. The accounting policies for
each reporting segment are consistent with the describe in the Note III.Segment assets exclude transaction financial asset other account receivables-dividend receivable other non-
current financial assets other equity instrument investment long term equity investment and other undistributed
assets since these assets are not related to products operation.
228无锡威孚高科技集团股份有限公司2022报告全文
(2) Financial information for reportable segment
In RMB
Add: Investments
accounted for by the
auto fuel equity method or
Automoti Air Vacuum
injection Investment in income
ve post managem pump and "platform trade" Offsetting
system and debt and equity
Item processin ent hydraulic business between Total
fuel cell instruments or Gains
g system system pump segment segments
component /losses on undistributed
segment segment segment
segment assets such as income
from holding and
disposal
623441304059774196124160177911432725250512729634917.
Revenue.37455.4643.113.074.9803
514949756754684144870277158596342471509511016385488.
Cost.61735.1697.497.318.7780
----
Total 4617385
1516701226651918.752436497.1644068327.91703230223.10179614433.34
Profit 2.85.179653
---
58011653946252
Net profit 12970836 51714919. 1644068327.9 1695062978.76 190946008.25
9.04.07
5.321013
1078302153023479414288914361221097430804.01642903828528913065.
Asset 11133227006.24
465.98622.3706.014.61264.2201
588973111937844195018908709572117914466410094206215.
Liability 38848.42.01888.2291.176.767.9563
(3) If the company has no reportable segments or is unable to disclose the total assets and liabilities of
each reportable segment it should state the reasons
Not applicable
(4) Other explanations
Nil
7. Major transaction and events influencing investor’s decision
（1）The security organs have launched a criminal investigation on the case that WFTR was defrauded by
contracts in its "platform trade" 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 investigation stage 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 andliabilities respectively purchases actually paid to "suppliers" and sales collected from "customers"，Other
229无锡威孚高科技集团股份有限公司2022报告全文
receivables are reported on a net basis in the financial statements as a "platform trading" portfolio.In the year
2022 the outflow amount of the "platform trade" business is RMB 634575.14 million and the inflow amount
is RMB 3604.2523 million. As of December 31 2022 the net outflow amount of RMB 2741499100 is
reported to other receivables. An expected credit loss of $164068300 has been accrued against the other
receivables.
8. Other
Nil
XVII. Principal notes of financial statements of parent company
1. Account receivable
(1) Classification of account receivable
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 770563 770563 780394 780394
0.84%100.00%1.42%100.00%
provision Accrued 6.24 6.24 5.24 5.24
on a single basis
Including:
Account receivable
with bad debt 910831 402320 906808 540453 349595 536957
99.16%0.44%98.58%0.65%
provision Accrued 491.61 8.39 283.22 844.97 4.75 890.22
on portfolio
Including:
Including:
768218402320764195324001349595320505
receivables from 83.63% 0.52% 59.10% 1.08%
customers 575.70 8.39 367.31 494.50 4.75 539.75
Receivables from
142612142612216452216452
internal related 15.53% 39.48%
parties 915.91 915.91 350.47 350.47
918537117288906808548257112998536957
Total 100.00% 1.28% 100.00% 2.06%
127.8544.63283.22790.2199.99890.22
Bad debt provision Accrued on single basis: 7705636.24
In RMB
Ending balance
Name
Book balance Bad debt reserve Accrued ratio Accrued causes
BD bills 7201691.00 7201691.00 100.00% Have difficulty in collection
Tianjin Leiwo Engine Co. Ltd. 503945.24 503945.24 100.00% Have difficulty in collection
Total 7705636.24 7705636.24
Bad debt provision Accrued on portfolio: 4023208.39
Unit:RMB/CNY
Name Ending balance
230无锡威孚高科技集团股份有限公司2022报告全文
Book balance Bad debt reserve Accurual ratio
Within 6 months 746778955.46
6 months to one year 17383318.92 1738331.87 10.00%
1-2 years 1042800.24 208560.05 20.00%
2-3 years 1561974.35 624789.74 40.00%
Over 3 years 1451526.73 1451526.73 100.00%
Total 768218575.70 4023208.39
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses please
refer to the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable □ Not applicable
By account age
In RMB
Account age Book balance
Within one year (One year included) 906775190.29
Including: within 6 months 889181770.09
6 months to one year 17593420.20
1-2 years 1173006.18
2-3 years 1935713.65
Over 3 years 8653217.73
3-4 years 8653217.73
Total 918537127.85
(2) 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 11299899.99 428948.14 3.50 11728844.63
Total 11299899.99 428948.14 3.50 11728844.63
Important bad debt provision collected or reversal: nil
(3) Account receivable actual charged off in the Period
In RMB
Item Amount charged off
Sporadic difference 3.50
Total 3.50
Major charge-off for the major receivable: nil
(4) Top 5 receivables at ending balance by arrears party
In RMB
Name Ending balance of Ratio in total ending balance of account Ending balance of bad
231无锡威孚高科技集团股份有限公司2022报告全文
account receivable receivables debt reserve
RBCD 461437152.46 50.24% 174766.71
Robert Bosch Company 78085229.03 8.50% 0.01
Client 3 60026741.00 6.53% 737492.51
WFTR 57565163.84 6.27%
WFSC 38994998.99 4.24%
Total 696109285.32 75.78%
(5) Assets and liabilities resulted by account receivable transfer and continues involvement
Nil
(6) Account receivable derecognition due to financial assets transfer
Nil
2.Other accounts receivable
In RMB
Item Ending balance Opening balance
Interest receivable 206325.34 113055.56
Dividend receivable 26718900.00
Other account receivables 1471896113.93 177293562.07
Total 1472102439.27 204125517.63
(1) Interest receivable
1) Category of interest receivable
In RMB
Item Ending balance Opening balance
Interest receivable of subsidiary 206325.34 113055.56
Total 206325.34 113055.56
2) Significant overdue interest
Nil
3) Accrued of bad debt provision
□Applicable □Not applicable
232无锡威孚高科技集团股份有限公司2022报告全文
(2) Dividend receivable
1) Category of dividend receivable
In RMB
Item (or invested enterprise) Ending balance Opening balance
WFAM 26718900.00
Total 26718900.00
2) Important dividend receivable with account age over one year
Nil
3)Accrued of bad debt provision
□Applicable □Not applicable
(3) Other account receivables
1)Other account receivables classification by nature
In RMB
Nature Ending book balance Opening book balance
Staff loans and petty cash 1279080.00 400080.00
Balance of related party in the
3106006521.72169746521.72
consolidate scope
Margin 3738299.33 1518640.00
Social security and provident fund paid 6429166.22 5926527.66
Other 16781.83 9364.69
Total 3117469849.10 177601134.07
2) Accrued of bad debt provision
In RMB
Phase I Phase II Phase III
Expected credit losses Expected credit losses
Expected credit
Bad debt reserve for the entire duration for the entire duration Total
losses over next 12
(without credit (with credit
months
impairment occurred) impairment occurred)
Balance of Jan. 1 2022 307572.00 307572.00
Balance of Jan. 1 2022 in the
period
1645296503.1
Current Accrued 1228175.24 1644068327.93
7
Current reversal 30340.00 30340.00
1645573735.1
Balance on Dec. 31 2022 1505407.24 1644068327.93
7
Change of book balance of loss provision with amount has major changes in the period
□Applicable □Not applicable
By account age
233无锡威孚高科技集团股份有限公司2022报告全文
In RMB
Account age Book balance
Within one year (One year included) 3114813019.10
Including: within 6 months 768880846.69
6 months to one year 2345932172.41
1-2 years 588300.00
2-3 years 1300000.00
Over 3 years 768530.00
3-4 years 768530.00
Total 3117469849.10
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 Written-off Other
reversal
Bad debt 1645296503. 1645573735.
307572.0030340.00
provision 17 17
1645296503.1645573735.
Total 307572.00 30340.00
1717
Including the important bad debt provision reversal or collected in the period: nil
4) Other receivables actually charged off during the reporting period
Nil
5) Top 5 other receivables at ending balance by arrears party
In RMB
Ratio in total
Ending balance of
Name of enterprise Nature Ending balance Account age ending balance of
bad debt reserve
other receivables
Balance of related
Within 1
WFTR party in the 3077260000.00 98.71% 1644068327.93
consolidate scope year
Balance of related
With six
WFCA party in the 28193906.00 0.91%
consolidate scope months
Zhenkunxing Industrial
Supermarket (Shanghai) Margin 1000000.00 2-3 years 0.03% 400000.00
Co. Ltd.Wuxi Youlian Thermal Over three
Margin 750000.00 0.02% 750000.00
Power Co. Ltd years
Wuxi Xingzhou Energy Within 1
Margin 676232.43 0.02% 28176.35
Development Co. Ltd year
Total 3107880138.43 99.69% 1645246504.28
234无锡威孚高科技集团股份有限公司2022报告全文
6) Other account receivables related to government grants
Nil
7) Other receivables derecognized due to the transfer of financial assets
Nil
8) The amount of assets and liabilities formed by transferring other receivables and continuing to be
involved
Nil
3. Long-term equity investments
In RMB
Ending balance Opening balance
Depreciati Depreciati
Item
Book balance on Book value Book balance on Book value
reserves reserves
Investment for
3080762302.113080762302.112106415908.372106415908.37
subsidiary
Investment for
associates and 5289081048.99 5289081048.99 4760866320.19 4760866320.19
joint venture
Total 8369843351.10 8369843351.10 6867282228.56 6867282228.56
(1) Investment for subsidiary
In RMB
Changes in Current Period Ending
balance
Provision
The invested Opening balance Negative Ending balance of
Additional for
entity (book value) Investme Other (book value) deprecia
Investment impairme
nt tion
nt loss
reserves
WFJN 185974031.01 2415053.33 188389084.34
WFLD 468968346.39 1884760.13 470853106.52
WFMA 170998252.32 809332.39 171807584.71
WFCA 222778790.43 572926.60 223351717.03
WFTR 33924529.85 142484.85 34067014.70
WFSC 51150646.86 339397.41 51490044.27
WFTT 238112165.62 1170856.38 239283022.00
WFAM 82454467.99 82454467.99
WFDT 54116034.53 -34515.01 54081519.52
597341580.
SPV 597938643.37 1195280223.97
60
WFLD(Chongqi
265832.07265832.07
ng)
WFAS 878805.00 878805.00
225000000.
WFQL 225000000.00
00
235无锡威孚高科技集团股份有限公司2022报告全文
143559879.
VHCN 143559879.99
99
965901460.
Total 2106415908.37 8444933.15 3080762302.11
59
(2) Investment for associates and joint venture
In RMB
Current changes (+/ -)
Ending
Openin Other balance
g Add compr Oth
Ending
Cap Cash Impa of
itio Investment ehensi er balance Enterpr balance ital dividend or irme depreci
ise (book nal gain/loss ve equ
(book
red profit nt Other ation
value) inve recognized incom ity
value)
ucti announced to Accr reserve
stm under equity e cha
on issued ued s
ent adjust nge
ment
I. Joint venture
II. Associated enterprise
319331019973205035057
RBCD 89537. 43798. 752.43 46633.
447677
Zhongli 13785 375237 194400 15594
an
75785.528.28000.0013314.
Autom
obile 77 05
45845189301000054775
WFPM
041.36857.66000.00899.02
-
Chelian 143055 37000 169145
10910
Tianxia 955.62 000.00 202.15
753.47
476081403252890
Subtota 37000 936450
66320.01431.81048.
l 000.00 752.43
192399
476081403252890
37000936450
Total 66320. 01431. 81048.
000.00752.43
192399
(3) Other explanations
Nil
4. Operating income and cost
In RMB
Current period Last Period
Item
Income Cost Income Cost
Main business 3524971219.66 2995507161.73 4392019155.83 3267569244.02
Other business 339533776.14 268487790.90 440321634.62 337773263.46
Total 3864504995.80 3263994952.63 4832340790.45 3605342507.48
236无锡威孚高科技集团股份有限公司2022报告全文
5.Investment income
In RMB
Item Current period Last Period
Investment income from holding transaction
201399105.37309089065.06
financial asset
Investment income in subsidiaries 69841550.10 82600029.25
Investment income in joint ventures and
1427651731.231366704678.23
associated enterprises
Total 1698892386.70 1758393772.54
6.Others
Nil
XVIII. 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 -148566.90
Governmental grants reckoned into current gains/losses (except for those with normal 111917334.77
operation business concerned and conform to the national policies & regulations and are
continuously enjoyed at a fixed or quantitative basis according to certain standards)
Profit and loss of assets delegation on others’ investment or management 1236142.58
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
-145070562.29
and trading financial liabilities and the investment earnings obtained from disposing the
trading financial asset trading financial liability and financial assets available for sale
Reserve for impairment of receivables separately tested for impairment transfer back 1265113.45
Other non-operating income and expenditure except for the aforementioned items 39799099.77
Less: Impact on income tax 1952583.99
Impact on minority shareholders’ equity 8192690.71
Total -1146713.32 --
Specific information on other items of profits/losses that qualified the definition of non-recurring profit(gain)/loss
□Applicable □Not applicable
The Company does not have other items of profits/losses that qualified the definition of non-recurring profit(gain)/loss
Information on the definition of non-recurring profit(gain)/loss that listed in the Q&A Announcement No.1 on Information
Disclosure for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss as the
recurring profit(gain)/loss
□Applicable □Not applicable
2.ROE and earnings per share
Earnings per share
Profits during report period Weighted average ROE Basic earnings Diluted
per share earnings per
237无锡威孚高科技集团股份有限公司2022报告全文
(RMB/Share) share
(RMB/Share)
Net profits belong to common stock stockholders of the
0.64%0.090.09
Company
Net profits belong to common stock stockholders of the
0.65%0.090.09
Company after deducting nonrecurring gains and losses
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable □ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable □ Not applicable
(3) Explanation on data differences under the accounting standards in and out of China; as for the
differences adjustment audited by foreign auditing institute listed name of the institute
Nil
4.Other
Nil
BOD of Weifu High-Technology Group Co. Ltd.Chairman: _______________
28 April 2023
238
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