Wuxi Weifu High-Technology Group Co. Ltd.2025 Financial Statements
Audit Report
ZHONGXINGHUACERTIFIED PUBLIC ACCOUNTANTS LLP
Location: 20/FTower BLize SOHO20 Lize RoadFengtai DistrictBeijing PR China Zip code: 100073
Tel: (010) 51423818 Fax: (010) 51423816Table of Contents
I. Audit Report
II. Audit Report Attachment
1. Consolidated Balance Sheet
2. Balance Sheet of Parent company
3. Consolidated Income Statement
4. Income Statement of Parent company
5. Consolidated Cash Flow Statement
6. Cash Flow Statement of Parent company
7. Consolidated Statement of changes in owners’ equity
8. Statement of changes in owners’ equity (Parent company)
9. Financial Statement Notes
III. Audit Report Annex
1. Zhongxinghua Certified Public Accountants LLP (Special General Partnership)
Business License Copy
2. Zhongxinghua Certified Public Accountants LLP (Special General Partnership)
Practice Certificate Copy
3. Certified Public Accountants Practice Certificate CoZHONGXINGHUA CERTIFIED PUBLIC ACCOUNTANTS LLP
Lo c a t i o n : 2 0 / F Tow e r B L i z e SOHO 2 0 L i z e Ro a d F e n g t a i D i s t r i c t B e i j i n g PR Ch i n a
T e l : 0 1 0 - 5 1 4 2 3 8 1 8 f a x : 0 1 0 - 5 1 4 2 3 8 1 6
Audit Report
Zhongxinghua Audit (2026) No.00006837
All shareholders of Wuxi Weifu High-Technology Group Co. Ltd.:
I. Audit opinions
We have audited the financial statement of Weifu High-Technology Group Co. Ltd. (hereinafter referred to
as “Weifu High-Technology”) including the Consolidated & Parent Company Balance Sheet as of 31 December
2025 Consolidated & Parent Company Income Statement Consolidated & Parent Company Cash Flow Statement
Consolidated & Parent Company Owner’s Equity Change Statement and relevant Financial Statement Notes in
2025.
In our opinions the attached financial statement is formulated pursuant to provisions in the Accounting
Standards for Business Enterprises from all major perspectives and offers a fair view on Weifu High-
Technology’s financial conditions of consolidated and parent company as of 31 December 2025 as well as
operation achievement and cash flow of consolidated and parent company in 2025.II. Foundation of audit opinions
We conducted the audit work as per provisions of the Chinese Certified Public Accountant AuditingStandards. Our responsibilities under those standards are further described in the “Auditor’s Responsibilities forthe Audit of the Financial Statements” section of our auditor's report. In accordance with the Code of Ethics for
Certified Public Accountants in China and the independence requirements for Certified Public Accountants in
China we are independent of Weifu High-Technology and have fulfilled our other ethical responsibilities. We
believe the audit evidence we obtained is sufficient and appropriate and provides the foundation for our audit
opinions.III. Key audit events
Key audit events are the events we deem the most important for auditing the financial statement in the
current period based on our professional judgment. These events shall be responded against the backdrop of
conducting overall audit of the financial statement and forming opinions and we do not express separate opinions
on these events. We determine that the following events are key audit events for communication in the audit report.
1. Income recognition
(1) Event description
As stated in the Financial Statement Note III 27 “Income” and Note V 48 “Operating income and operatingcost” Weifu High-Technology earned operating income of RMB 12023879100 in 2025. Considering operating
income as one of the main sources of profits for Weifu High-Technology with significant impact on the overall
financial statement there is an inherent risk that the management level of Weifu High-Technology (hereinafter
3referred to as the management level) may manipulate the timing of income recognition in order to achieve specific
target or expectation and therefore we regard income recognition as a key audit event.
(2) Audit response
1) Know about relevant internal controls regarding income recognition conduct internal control tests and
evaluate the design and operation effectiveness;
2) Obtain and check main customer sales contracts know about the main terms and conditions of contracts
including sales methods pricing settlement rebates etc. and evaluate whether the specific methods and timing
of income recognition meet the standards and industry practices;
3) Conduct analytical procedures on the operating incomes operating costs and gross profits of each segment
in conjunction with the industry situation and actual company operation compare with the previous period data
and data of the same industry and check the rationality;
4) Randomly check sales contracts or orders outbound delivery notes logistics documents customs
declaration sheets receipts settlement statements sales invoices and other documents related to income
recognition and verify the authenticity and completeness of income;
5) Select customer samples to perform confirmation letter procedures and verify the income authenticity
completeness and rationality of income recognition timing;
6) Perform income cut-off testing select income samples before and after the balance sheet date verify
supportive documents such as outbound delivery notes customs declaration sheets receipts and settlement
statements and check whether incomes are recorded in the appropriate accounting period;
7) Check whether the information concerning operating income has been appropriately presented and
disclosed in the financial statements.
2. Provision for expected credit losses of Weifu International Trade “platform trade”
business portfolio in other receivables
(1) Event description
As stated in the Financial Statement Note V 7 “Other receivables” and Note XIV 7 “Other important eventsaffecting investor decision-making” as of 31 December 2025 the book balance of other receivables arising from
“platform trading” contract fraud event of Weifu International Trade amounted to RMB 2038255800 and the
provision for expected credit losses of RMB 1979160400 was made. Because the recoverable amount of the
“platform trade” business portfolio creditor’s right involves significant accounting estimates and judgments made
by the management level it is important to the financial statement and therefore we determine the provision for
expected credit losses of “platform trade” business portfolio in other receivables as a key audit event.
(2) Audit response
1) Know about the specific situation and status quo of the “platform trade” event from the management level
understand the management level methods amounts and judgment basis and sources of the provision for expected
credit losses regarding the “platform trade” event credits and evaluate the rationality;
2) Obtain and read the court judgment visit relevant departments such as the public security organ and the
court inquire about the opinions of relevant lawyers conduct interviews on the judgment basis and resources of
the estimates made by the management level and verify the authenticity and reliability;
43) Know about the specific situation of the case-involved properties returned by the public security organ to
the company and the case-involved properties executed by the court check relevant bank repayment records and
physical asset transfer records and verify the authenticity; review the appraisal report issued by the appraisal
agency on the value of relevant physical assets and double check the rationality; check correctness of relevant
company accounting treatment;
4) Perform recalculation procedures according to the judgment basis for recoverable amount of “platformtrade” event credits compare with the estimate result of the management level and judge whether the provision
amount for expected credit losses of “platform trade” event credits made by the management level is reasonable;
5) Follow the post-period progress of case execution and consider the impact on the current financial
statements;
6) Check whether relevant information of “platform trade” events has been appropriately presented and
disclosed in the financial statements.
3. Recognition of investment income from associated enterprises
(1) Event description
As stated in the Financial Statement Note V 55 “Investment income” in 2025 the long-term equity
investment income accounted for by Weifu High-Technology using the equity method was RMB 1124396100
accounting for 96.65% of the total profit this year. Because the investment income of associated enterprises is one
of the main sources of profits for Weifu High-Technology and the accuracy of investment income accounting
exerts a significant impact on Weifu High-Technology’s financial statement we determine the recognition of
investment income from associated enterprises as a key audit event.
(2) Audit response
1) Know about the key internal controls of Weifu High-Technology concerning equity investments conduct
internal control tests and evaluate the design and operation effectiveness;
2) Obtain the articles of association investment agreements historical development and other materials of
associated companies check the company capital contribution situation shareholding ratio director appointment
and participation in business decision-making and confirm the appropriateness of equity method accounting;
3) Know about the actual operation and profit distribution of associated enterprises check the supportive
materials on company recognition of investment income and receipt of cash dividends and compare and analyze
the overall rationality of investment income recognition;
4) Obtain the audit reports of associated enterprises and pay attention whether important accounting policies
accounting estimates and accounting treatments comply with the provisions of accounting standards for business
enterprises and whether they are consistent;
5) Perform analytical review procedures on the financial statement of associated enterprises know about the
reasons for significant changes and judge the rationality and evaluate whether the financial statement has fairly
reflected the financial status and operating results in major perspectives as a whole;
6) Recalculate the investment incomes of associated enterprises recognized by the company pay attention to
the related transactions between the company and associated enterprises check the calculation and offset of
unrealized internal transaction gains and losses and review whether the recognized amount of investment income
5is accurate;
7) Check whether the recognized investment of associated enterprises has been appropriately presented and
disclosed in the financial statements.
4. Other information
The management level of Weifu High-Technology (hereinafter referred to as the management team) is
responsible for other information. Other information includes the information covered in the 2025 Weifu High-
Technology annual report but excludes the financial statement and our audit report.Our audit opinions on financial statements do not cover other information and we do not express any form of
verification conclusions on other information.In conjunction with our audit of the financial statement our responsibility is to read other information and in
the process consider whether the other information is materially inconsistent with the financial statement or what
we learned during the audit process or appears to be materially misrepresented.Based on the work we have conducted if we determine that there is a material misstatement of other
information we should report such fact. We have nothing to report in this regard.
5. Management and governance liabilities for financial statements
The management is responsible for preparing the financial statements in accordance with GAAP and
presenting them fairly and designing implementing and maintaining necessary internal control so that there isn't
any material misstatement in the financial statements due to fraud or error.When preparing the financial statement the management level is responsible for assessing Weifu High-
Technology’s capabilities of sustainable operation disclosing events related to sustainable operation (if
applicable) and adopting the assumption of sustainable operation unless the management level plans to liquidate
Weifu High-Technology terminate the operation or there is no other practical option.The governance level is responsible for supervising the financial report process of Weifu High-Technology.
6. CPA’s responsibilities for auditing financial statements
Our objective is to obtain reasonable assurance as to whether the financial statements as a whole are free
from material misstatement whether due to fraud or error and issue an audit report containing audit opinions.Reasonable assurance is a high level of assurance but it does not guarantee the audit performed in accordance
with auditing standards can surely find a certain existing material misstatement. Misstatement may be caused by
fraud or error; if a reasonably expected misstatement individually or in the aggregate may affect the financial
statements user’s economic decision made based on financial statements it is generally considered to be a
material misstatement.As part of an audit in accordance with auditing standards we exercised professional judgment and
maintained professional skepticism throughout the audit. Meanwhile we also perform the following tasks:
1) Identify and assess material misstatement risks of the financial statements due to fraud or error design and
implement audit process to address these risks and obtain sufficient and appropriate audit evidences as the basis
for giving audit opinions. Since fraud may involve collusion forgery intentional omission false statement or
overriding internal controls the risk of failing to detect material misstatement due to fraud is higher than that due
to error.
62) Learn about internal control concerning audit to design appropriate audit procedures.
3) Evaluate the appropriateness of accounting policies adopted and the rationality of accounting estimates
and related disclosures made by the management.
4) Draw conclusions on the appropriateness of sustainable operation assumption by the management.
Meanwhile based on the audit evidences acquired it may lead to conclusions on whether there are significant
uncertainties in the matters or circumstances causing major doubts about the capabilities of your company's
sustainable operation. If we conclude that there are significant uncertainties the auditing standards require us to
notify the users about relevant disclosures of the financial statements in the audit report; if the disclosures are
insufficient we should express opinions without reservations. Our conclusions are based on the information
available as of the audit report date. Nevertheless future matters or circumstances may lead to the inability of
Weifu High-Technology for sustainable operation.
5) Evaluate the overall presentation structure and content of financial statements and evaluate whether the
financial statements have fairly reflected relevant transactions and events.
6) Sufficient and appropriate audit evidence on the financial information of Weifu High-Technology entity or
business activities is acquired to express opinion on the financial statement. We are responsible for guiding
supervising and executing audit on the group. We hold full responsibilities for the audit opinions.We communicate with those charged with governance about planned audit scope schedule major audit
findings and other matters including the noteworthy internal control flaws that we have identified during the audit.We also provide declaration to the governance level regarding compliance with professional ethical
requirements of independence and communicate with the governance level about all relationships and other
matters that may reasonably be considered as affecting our independence as well as relevant precautions (if
applicable).From the matters communicated with the governance level we determine which matters are most important
to the financial statement audit in the current period and thus constitute key audit matters. We describe these
matters in the audit report unless laws and regulations prohibit public disclosure of these matters or in rare cases
if it is reasonably expected that the negative consequences of communicating a matter in the audit report outweigh
the benefits of public interest we determine this matter shall not be communicated in the audit report.Zhongxinghua Certified Public Accountants LLP Chinese CPA:PAN HUA
(Project partner)
Beijing · China Chinese CPA:ZHANG XIAO PING
15 April 2026
7Consolidated Balance Sheet
Prepared by Weifu High-Technology Group Co. Ltd.Dec. 31 2025
In RMB
Item Dec. 31 2025 Dec. 31 2024
Current assets:
Monetary funds 2358850312.47 2246600451.52
Settlement provisions
Capital lent
Trading financial assets 2334658155.36 1429682635.57
Derivative financial assets
Note receivable 93133355.40 99914699.81
Account receivable 4341063178.47 3737653893.03
Receivable financing 1861919025.73 1713187182.25
Accounts paid in advance 99492959.55 93283466.49
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 82980848.24 930529007.57
Including: Interest receivable
Dividends receivable 5357758.49 5357758.49
Buying back the sale of financial assets
Inventories 2458134988.90 2308920401.14
Including: data source
Contract assets
Assets held for sale
Non-current asset due within one year 689033205.47 559070575.38
Other current assets 137849612.83 188988459.46
Total current assets 14457115642.42 13307830772.22
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 7299370031.76 7035098878.59
Investment in other equity instrument 1049138690.00 677790690.00
Other non-current financial assets 751258396.69 697471349.81
8Investment real estate 52318319.87 44960930.39
Fixed assets 4582924701.55 4461619375.21
Construction in progress 280431452.37 380321816.50
Productive biological asset
Oil and gas asset
Right-of-use assets 97945565.44 67765442.37
Intangible assets 478905295.60 480540808.88
Including: data source
Expense on research and development
Including: data source
Goodwill 1784086.79 32605318.22
Long-term expenses to be apportioned 57396940.60 22202465.04
Deferred income tax asset 309899010.51 303420166.65
Other non-current asset 249239314.05 893272397.34
Total non-current asset 15210611805.23 15097069639.00
Total assets 29667727447.65 28404900411.22
Current liabilities:
Short-term loans 564763810.23 393120147.95
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable 1913336503.36 2014217247.05
Account payable 4375877094.85 3899945192.28
Accounts received in advance 4013931.36 2652511.04
Contractual liability 63010303.58 56148545.13
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 364256169.69 405278048.92
Taxes payable 71255035.47 51710218.41
Other account payable 65306720.22 44547794.12
Including: Interest payable
Dividend payable 2937600.00
Commission charge and commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one year 130157223.15 220703888.53
Other current liabilities 245935469.10 285386237.68
9Total current liabilities 7797912261.01 7373709831.11
Non-current liabilities:
Insurance contract reserve
Long-term loans 87300000.00 100000000.00
Bonds payable 500624657.53
Including: Preferred stock
Perpetual capital securities
Lease liability 73373773.23 47316516.48
Long-term account payable 7780000.00 27005082.11
Long-term wages payable 80454470.77 46118861.68
Accrued liability 105455503.64 121869551.76
Deferred income 128942021.14 151419335.74
Deferred income tax liabilities 27018658.45 24870008.46
Other non-current liabilities
Total non-current liabilities 1010949084.76 518599356.23
Total liabilities 8808861345.77 7892309187.34
Owner’s equity:
Share capital 966785693.00 996986293.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital reserve 2686504136.26 3263649101.44
Less: inventory shares 469722092.24
Other comprehensive income 122398098.62 10132405.39
Reasonable reserve 8619634.17 6257090.28
Surplus public reserve 510100496.00 510100496.00
Provision of general risk
Retained profit 15623144555.11 15523124882.77
Total owner’ s equity attributable to parent company 19917552613.16 19840528176.64
Minority interests 941313488.72 672063047.24
Total owner’ s equity 20858866101.88 20512591223.88
Total liabilities and owner’ s equity 29667727447.65 28404900411.22
Legal Representative: Yin Zhenyuan
Person in charge of accounting works: Feng Zhiming
Person in charge of accounting institute: Li Yanqing
10Balance Sheet of Parent company
In RMB
Item Dec. 31 2025 Dec. 31 2024
Current assets:
Monetary funds 641573048.70 466892236.52
Trading financial assets 972513172.06 878496571.74
Derivative financial assets
Note receivable 8526802.49 18662983.17
Account receivable 1675175133.11 1489935690.05
Receivable financing 339279089.10 346215286.06
Accounts paid in advance 54801020.36 51792719.25
Other account receivable 489034511.33 1429367035.46
Including: Interest receivable 117347.22 6702396.94
Dividends receivable 5357758.49 5357758.49
Inventories 502216446.23 523443471.86
Including: data source
Contract assets
Assets held for sale
Non-current asset due within one year 429658356.15 222906739.73
Other current assets 340501.80 236029.38
Total current assets 5113118081.33 5427948763.22
Non-current assets:
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 10263381015.17 9379389807.57
Investment in other equity instrument 973198690.00 601850690.00
Other non-current financial assets 751258396.69 697471349.81
Investment real estate 32191785.94 33322617.00
Fixed assets 2756810568.23 2767316409.85
Construction in progress 81553060.91 43260711.62
Productive biological asset
Oil and gas asset
Right-of-use assets 2848428.84 4320822.79
Intangible assets 248718256.80 251051539.24
Including: data source
Expense on research and development
Including: data source
Goodwill
11Long-term expenses to be apportioned 953697.60 910555.82
Deferred income tax asset 150842007.83 131997984.30
Other non-current asset 59617807.63 538364812.82
Total non-current asset 15321373715.64 14449257300.82
Total assets 20434491796.97 19877206064.04
Current liabilities:
Short-term loans 120077366.66
Trading financial liability
Derivative financial liability
Note payable 416966899.26 344127173.09
Account payable 1102968435.44 1127464058.49
Accounts received in advance
Contractual liability 42488783.95 12478649.93
Wage payable 151440447.76 215266682.43
Taxes payable 12706911.51 9470631.10
Other account payable 118495769.42 670207729.91
Including: Interest payable 402153.88 2509683.34
Dividend payable
Liability held for sale
Non-current liabilities due within one year 101186502.70 201358028.22
Other current liabilities 41804577.18 20837034.26
Total current liabilities 2108135693.88 2601209987.43
Non-current liabilities:
Long-term loans 87300000.00 100000000.00
Bonds payable 500624657.53
Including: Preferred stock
Perpetual capital securities
Lease liability 1641972.69 2703583.48
Long-term account payable
Long-term wages payable 54819699.51 15212070.31
Accrued liability 22655337.99 22565446.22
Deferred income 98433860.70 130406464.59
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 765475528.42 270887564.60
Total liabilities 2873611222.30 2872097552.03
Owner’s equity:
Share capital 966785693.00 996986293.00
Other equity instrument
Including: Preferred stock
12Perpetual capital securities
Capital reserve 2815516424.65 3394923686.54
Less: inventory shares 469722092.24
Other comprehensive income
Reasonable reserve
Surplus public reserve 510100496.00 510100496.00
Retained profit 13268477961.02 12572820128.71
Total owner’ s equity 17560880574.67 17005108512.01
Total liabilities and owner’ s equity 20434491796.97 19877206064.04
13Consolidated Profit Statement
In RMB
Item 2025 2024
I. Total operating income 12023879058.27 11167263155.85
Including: Operating income 12023879058.27 11167263155.85
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 11684402892.29 10731261302.02
Including: Operating cost 9939838148.74 9137167016.39
Interest expense
Commission charge and commission expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance contract reserve
Bonus expense of guarantee slips
Reinsurance expense
Tax and extras 66669987.84 59699756.95
Sales expense 204860008.42 173294600.83
Administrative expense 807541005.61 726610451.29
R&D expense 695553391.89 690258974.54
Financial expense -30059650.21 -55769497.98
Including: Interest expenses 22596287.74 25385434.57
Interest income 51524160.25 101699691.65
Add: Other income 145418450.58 195531320.78
Investment income (Loss is listed with “-”) 1434186893.19 1535039086.78
Including: Investment income on affiliated company
and joint venture 1124396147.32 1481848406.86
The termination of income recognition for financial
assets measured by amortized cost -3521058.98
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listed with “-”)Income from change of fair value (Loss is listed with “-”)61265098.76-17300039.60
Loss of credit impairment (Loss is listed with “-”) -341332775.64 6063789.73
Losses of devaluation of asset (Loss is listed with “-”) -493464041.74 -407383027.85
Income from assets disposal (Loss is listed with “-”) 17657183.98 10467340.59
III. Operating profit (Loss is listed with “-”) 1163206975.11 1758420324.26
Add: Non-operating income 3951463.87 3924878.00
Less: Non-operating expense 3781251.76 5130865.58
IV. Total profit (Loss is listed with “-”) 1163377187.22 1757214336.68
Less: Income tax expense 62695218.07 40043146.12
V. Net profit (Net loss is listed with “-”) 1100681969.15 1717171190.56
(i) Classify by business continuity
1.continuous operating net profit (net loss listed with ‘-”) 1100681969.15 1717171190.56
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owners of parent company 1068167498.05 1659533740.63
142.Minority shareholders’ gains and losses 32514471.10 57637449.93
VI. Net after-tax of other comprehensive income 112265693.23 -44024510.58
Net after-tax of other comprehensive income attributable to
owners of parent company 112265693.23 -44024510.58
(I) Other comprehensive income items which will not be
reclassified subsequently to profit of loss 413276.52 135700.88
1.Changes of the defined benefit plans that re-measured 413276.52 135700.88
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 111852416.71 -44160211.46
1.Other comprehensive income under equity method that can
transfer to gains/losses
2.Change of fair value of other debt investment
3.Amount of financial assets re-classify to other
comprehensive income
4.Credit impairment provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences arising on translation of foreign
currency financial statements 111852416.71 -44160211.46
7.Other
Net after-tax of other comprehensive income attributable to
minority shareholders
VII. Total comprehensive income 1212947662.38 1673146679.98
Total comprehensive income attributable to owners of parent
Company 1180433191.28 1615509230.05
Total comprehensive income attributable to minority
shareholders 32514471.10 57637449.93
VIII. Earnings per share:
(i) Basic earnings per share 1.10 1.71
(ii) Diluted earnings per share 1.10 1.71
Legal Representative: Yin Zhenyuan
Person in charge of accounting works: Feng Zhiming
Person in charge of accounting institute: Li Yanqing
15Profit Statement of Parent Company
In RMB
Item 2025 2024
I. Operating income 3871323053.51 3397375738.23
Less: Operating cost 3320314281.17 2748517500.94
Taxes and surcharge 29940599.54 25293144.60
Sales expenses 20992874.81 18606129.79
Administration expenses 370056182.60 342648893.66
R&D expenses 210359267.31 206660519.14
Financial expenses -12567625.96 -8055265.06
Including: Interest expenses 21275011.44 25217594.46
Interest income 27349718.45 45539582.29
Add: Other income 59428591.40 104031656.48
Investment income (Loss is listed with “-”) 1977394264.44 1431219662.62
Including: Investment income on affiliated Company and
joint venture 1108128645.88 1237057888.34
The termination of income recognition for financial
assets measured by amortized cost (Loss is listed with “-”) -312015.98
Net exposure hedging income (Loss is listed with “-”)
Changing income of fair value (Loss is listed with “-”) 55334797.92 -19486103.43
Loss of credit impairment (Loss is listed with “-”) -338727259.88 2154583.72
Losses of devaluation of asset (Loss is listed with “-”) -44926902.40 -215462101.10
Income on disposal of assets (Loss is listed with “-”) 2707582.77 115716424.53
II. Operating profit (Loss is listed with “-”) 1643438548.29 1481878937.98
Add: Non-operating income 1832370.74 764049.54
Less: Non-operating expense 309284.54 430984.94
III. Total Profit (Loss is listed with “-”) 1644961634.49 1482212002.58
Less: Income tax -18844023.53 -22556419.64
IV. Net profit (Net loss is listed with “-”) 1663805658.02 1504768422.22(i) continuous operating net profit (net loss listed with ‘-”) 1663805658.02 1504768422.22(ii) termination of net profit (net loss listed with ‘-”)
V. Net after-tax of other comprehensive income
(i) Other comprehensive income items which will not be
reclassified subsequently to profit of loss
1.Changes of the defined benefit plans that re-measured
2.Other comprehensive income under equity method that
cannot be transfer to gain/loss
3.Change of fair value of investment in other equity
instrument
4.Fair value change of enterprise's credit risk
5. Other
(ii) Other comprehensive income items which will be reclassified
subsequently to profit or loss
1.Other comprehensive income under equity method that
can transfer to gain/loss
2.Change of fair value of other debt investment
3.Amount of financial assets re-classify to other
comprehensive income
4.Credit impairment provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences arising on translation of foreign
16currency financial statements
7.Other
VI. Total comprehensive income 1663805658.02 1504768422.22
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
Consolidated Cash Flow Statement
In RMB
Item 2025 2024
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
services 11936686684.80 11454631514.44
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 21506075.85 158735481.42
Other cash received concerning operating activities 571768083.49 110017342.88
Subtotal of cash inflow arising from operating activities 12529960844.14 11723384338.74
Cash paid for purchasing commodities and receiving labor service 8888523494.66 7529154745.16
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 1794535041.19 1909179859.57
Taxes paid 344907546.91 284195491.88
Other cash paid concerning operating activities 509267738.51 418521593.39
Subtotal of cash outflow arising from operating activities 11537233821.27 10141051690.00
Net cash flows arising from operating activities 992727022.87 1582332648.74
II. Cash flows arising from investing activities:
Cash received from recovering investment 4972319937.78 4194627417.02
Cash received from investment income 722361461.25 1135521634.62
Net cash received from disposal of fixed intangible and other
long-term assets 28154859.56 47050793.21
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities
Subtotal of cash inflow from investing activities 5722836258.59 5377199844.85
Cash paid for purchasing fixed intangible and other long-term
assets 941942102.19 1080918168.79
Cash paid for investment 5149412141.82 4147277084.93
17Net increase of mortgaged loans
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 6091354244.01 5228195253.72
Net cash flows arising from investing activities -368517985.42 149004591.13
III. Cash flows arising from financing activities:
Cash received from absorbing investment 270514148.08 67300000.00
Including: Cash received from absorbing minority shareholders’
investment by subsidiaries 270514148.08 67300000.00
Cash received from loans 843489427.09 423886845.30
Cash received from issuance of bonds 500000000.00
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 1614003575.17 491186845.30
Cash paid for settling debts 784695845.88 933749933.35
Cash paid for dividend and profit distributing or interest paying 1017852139.22 1278179683.86
Including: Dividend and profit of minority shareholder paid by
subsidiaries 30733197.73 68778370.04
Other cash paid concerning financing activities 199429047.01 282460203.37
Subtotal of cash outflow from financing activities 2001977032.11 2494389820.58
Net cash flows arising from financing activities -387973456.94 -2003202975.28
IV. Influence on cash and cash equivalents due to fluctuation in
exchange rate 27733055.31 -33176286.78
V. Net increase of cash and cash equivalents 263968635.82 -305042022.19
Add: Balance of cash and cash equivalents at the period-begin 1756944672.22 2061986694.41
VI. Balance of cash and cash equivalents at the period -end 2020913308.04 1756944672.22
Cash Flow Statement of Parent Company
In RMB
Item 2025 2024
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
services 3697949579.69 3099128968.36
Write-back of tax received
Other cash received concerning operating activities 51981718.46 80207980.24
Subtotal of cash inflow arising from operating activities 3749931298.15 3179336948.60
Cash paid for purchasing commodities and receiving labor service 2570461507.94 2264173817.93
Cash paid to/for staff and workers 662807747.05 737849558.75
Taxes paid 103351203.52 75566016.29
Other cash paid concerning operating activities 140356926.67 79310706.82
Subtotal of cash outflow arising from operating activities 3476977385.18 3156900099.79
Net cash flows arising from operating activities 272953912.97 22436848.81
II. Cash flows arising from investing activities:
Cash received from recovering investment 1296315700.49 1829627417.02
Cash received from investment income 1113712469.02 958618318.14
Net cash received from disposal of fixed intangible and other
long-term assets 12556240.97 36500011.93
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 693533284.82 160573673.43
Subtotal of cash inflow from investing activities 3116117695.30 2985319420.52
Cash paid for purchasing fixed intangible and other long-term
assets 422908231.38 476629689.83
18Cash paid for investment 1588185309.20 1304396588.44
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities 69287900.00 204486765.84
Subtotal of cash outflow from investing activities 2080381440.58 1985513044.11
Net cash flows arising from investing activities 1035736254.72 999806376.41
III. Cash flows arising from financing activities:
Cash received from absorbing investment
Cash received from loans 310000000.00
Cash received from issuance of bonds 500000000.00
Other cash received concerning financing activities 777667055.55 1635000000.00
Subtotal of cash inflow from financing activities 1587667055.55 1635000000.00
Cash paid for settling debts 302500000.00 504700000.00
Cash paid for dividend and profit distributing or interest paying 977443292.66 1196883563.40
Other cash paid concerning financing activities 1503166849.06 1199168654.01
Subtotal of cash outflow from financing activities 2783110141.72 2900752217.41
Net cash flows arising from financing activities -1195443086.17 -1265752217.41
IV. Influence on cash and cash equivalents due to fluctuation in
exchange rate 1718996.43 -3813380.23
V. Net increase of cash and cash equivalents 114966077.95 -247322372.42
Add: Balance of cash and cash equivalents at the period -begin 466194368.01 713516740.43
VI. Balance of cash and cash equivalents at the period -end 581160445.96 466194368.01
19WEIFU HIGH-TECHNOLOGYGROUP CO. LTD. ANNUAL REPORT 2024
Consolidated Statement of Changes in Owners’ Equity
Current period
In RMB
2025
Owners’ equity attributable to the parent Company
Other
Item equity instrument Less: Other Provisi
Total
Share Perpetu
Minority
Capital owners’
capital Preferr al reserve Inventory comprehens
Reasonab Surplus on of Retained Oth interests
Oth shares ive income le reserve reserve general profit er
Subtotal equity
ed capital risk
stock securiti er
es
I. Balance
at the end 996986293 326364910 469722092 10132405.39 6257090. 510100496 1552312488 1984052817 672063047 2051259122of the last .00 1.44 .24 28 .00 2.77 6.64 .24 3.88
year
Add:
Changes of
accounting
policy
Error
correction
of the last
period
Other
II. Balance
at the 996986293 326364910 469722092 10132405.39 6257090. 510100496 1552312488 1984052817 672063047 2051259122beginning .00 1.44 .24 28 .00 2.77 6.64 .24 3.88
of this year
III.Increase/
Decrease in - - -
this year 30200600. 577144965. 469722092 112265693.2 2362543. 100019672.3 77024436.52 269250441 346274878.0
(Decrease is 00 18 .24 3 89 4 .48 0
listed with
“-”)
(i) Total
comprehens 112265693.2 1068167498. 1180433191. 32514471. 1212947662.ive income 3 05 28 10 38
(ii)
Owners’ - - -
devoted and 30200600. 539200396. 469722092 -99678904.50 270187724 170508820.0
decreased 00 74 .24 .58 8
capital
1.Common
shares 270187724 270187724.5
invested by .58 8
20WEIFU HIGH-TECHNOLOGYGROUP CO. LTD. ANNUAL REPORT 2024
shareholder
s
2.Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned
into owners
equity with
share-based
payment
---
4. Other 30200600. 539200396. 469722092 -99678904.50 -99678904.50
0074.24
(III) Profit - - - -
distribution 969152063.0 969152063.0 33670797. 1002822860.0 0 73 73
1.
Withdrawal
of surplus
reserves
2.
Withdrawal
of general
risk
provisions
3.
Distribution
for owners - - - -
(or 969152063.0 969152063.0 33670797. 1002822860.shareholder 0 0 73 73
s)
4. 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
21WEIFU HIGH-TECHNOLOGYGROUP CO. LTD. ANNUAL REPORT 2024
loss with
surplus
reserve
4.Carry-
over
retained
earnings
from the
defined
benefit
plans
5.Carry-
over
retained
earnings
from other
comprehens
ive income
6. Other
(V)
Reasonable 2362543.89 2362543.89 219043.53 2581587.42reserve
1.
Withdrawal 30637084 3187652.8
in the report .81 30637084.81 6 33824737.67
period
2. Usage in
the report 28274540 28274540.92 2968609.3.92 3 31243150.25period
-
(VI)Others 37944568.4 1004237.29 -36940331.15 -36940331.15
4
IV. Balance
at the end
of the 966785693 268650413 122398098.6 8619634. 510100496 1562314455 1991755261 941313488 2085886610
report .00 6.26 2 17 .00 5.11 3.16 .72 1.88
period
22WEIFU HIGH-TECHNOLOGYGROUP CO. LTD. ANNUAL REPORT 2024
Last period
In RMB
2024
Owners’ equity attributable to the parent Company
Other Provi
Share equity instrument
O
Item Perpe Capital Less: Other
sion
capital Inventory comprehensive Reasonabl Surplus of
t Total
tual reserve e reserve reserve gener Retained profit h Subtotal
Minority owners’
Preferr capit Ot shares income al e
interests equity
ed he r
stock al risksecur r
ities
I. Balance at the end of the last 1002162 3308170 533289512.2
year 793.00 140.96 4 54156915.97
364143951010049615054950391939989277833008920178222.97.008.12671.78.26761.04
Add: Changes of accounting
policy
Error correction of the last period
Other
II. Balance at the beginning of 1002162 3308170 533289512.2 54156915.97 3641439 510100496 1505495039 19399892 778330089 20178222this year 793.00 140.96 4 .97 .00 8.12 671.78 .26 761.04
III. Increase/ Decrease in this - - -
year (Decrease is listed with “-”) 5176500. 44521039 -63567420.00 -44024510.58
2615650468174484.6440635504.315.86106267042
334368462
00.52.02.84
(i) Total comprehensive income -44024510.58 1659533740. 16155092 57637449. 1673146663 30.05 93 79.98
(ii) Owners’ devoted and - - - - -
decreased capital 5176500. 87144811 -63567420.00 28753891. 95065184. 12381907600 .76 76 58 .34
1.Common shares invested by 67300000. 67300000.
shareholders 00 00
2. Capital invested by holders of
other equity instruments
3. Amount reckoned into owners’
equity with share-based payment
-----
4. Other 5176500. 87144811 -63567420.00 28753891. 162365184 191119076
00.7676.58.34
----
(III) Profit distribution 1191359255. 11913592 68778370. 12601376
9855.980426.02
1. Withdrawal of surplus reserves
2. Withdrawal of general risk
provisions
3. Distribution for owners (or - - - -
shareholders) 1185823277. 11858232 68778370. 1254601646 77.46 04 47.50
--
4. Other -5535978.52 5535978.5 5535978.5
22
(IV) Carrying forward internal
owners’ equity
23WEIFU HIGH-TECHNOLOGYGROUP CO. LTD. ANNUAL REPORT 2024
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 2615650 2615650.3.31 1 -60937.33
2554712.9
8
1. Withdrawal in the report period 2914814 29148145. 3267083.3 32415228.5.67 67 2 99
2. Usage in the report period 2653249 26532495. 3328020.6 29860516.5.36 36 5 01
(VI)Others 42623772 42623772. 42623772..24 24 24
IV. Balance at the end of the 9969862 3263649 469722092.2
report period 93.00 101.44 4 10132405.39
625709051010049615523124881984052867206304720512591.28.002.77176.64.24223.88
24WEIFU HIGH-TECHNOLOGYGROUP CO. LTD. ANNUAL REPORT 2024
Statement of Changes in Owners’ Equity (Parent Company)
Current Period
In RMB
2025
Other equity Ot
instrument her
co
Perpe O mpItem Share capital
Prefe tual t Capital reserve Less: Inventory reh Reasonable Surplus reserve Retained profit Other Total owners’
rred capit h shares ens reserve equity
stock al ivesecur e inc
ities r om
e
I. Balance at the end of the last year 996986293.00 3394923686.54 469722092.24 510100496.00 12572820128.71 17005108512.01
Add: Changes of accounting policy
Error correction of the last period
Other
II. Balance at the beginning of this year 996986293.00 3394923686.54 469722092.24 510100496.00 12572820128.71 17005108512.01
III. Increase/ Decrease in this year (Decrease is
listed with “-”) -30200600.00 -579407261.89 -469722092.24 695657832.31 555772062.66
(i) Total comprehensive income 1663805658.02 1663805658.02
(ii) Owners’ devoted and decreased capital -30200600.00 -539526820.24 -469722092.24 -100005328.00
1.Common shares invested by shareholders
2. Capital invested by holders of other equity
instruments
3. Amount reckoned into owners’ equity with
share-based payment
4. Other -30200600.00 -539526820.24 -469722092.24 -100005328.00
(III) Profit distribution -969152063.00 -969152063.00
1. Withdrawal of surplus reserves
2. Distribution for owners (or shareholders) -969152063.00 -969152063.00
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
25WEIFU HIGH-TECHNOLOGYGROUP CO. LTD. ANNUAL REPORT 2024
6. Other
(V) Reasonable reserve
1. Withdrawal in the report period 6007375.74 6007375.74
2. Usage in the report period 6007375.74 6007375.74
(VI)Others -39880441.65 1004237.29 -38876204.36
IV. Balance at the end of the report period 966785693.00 2815516424.65 510100496.00 13268477961.02 17560880574.67
Last period
In RMB
2024
Other equity
instrument Other
Perpe comp
Item Share capital
Prefe tual
O
t Capital reserve Less: Inventory rehen Reasonablecapit shares sive reserve Surplus reserve Retained profit Other
Total owners’
rred h equity
stock al e incosecur me
ities r
I. Balance at the end of the last year 1002162793.00 3412506010.91 533289512.24 510100496.00 12253874983.95 16645354771.62
Add: Changes of accounting policy
Error correction of the last period
Other
II. Balance at the beginning of this year 1002162793.00 3412506010.91 533289512.24 510100496.00 12253874983.95 16645354771.62
III. Increase/ Decrease in this year (Decrease is
listed with “-”) -5176500.00 -17582324.37 -63567420.00 318945144.76 359753740.39
(i) Total comprehensive income 1504768422.22 1504768422.22
(ii) Owners’ devoted and decreased capital -5176500.00 -58390920.00 -63567420.00
1.Common shares invested by shareholders
2. Capital invested by holders of other equity
instruments
3. Amount reckoned into owners’ equity with
share-based payment
4. Other -5176500.00 -58390920.00 -63567420.00
(III) Profit distribution -1185823277.46 -1185823277.46
1. Withdrawal of surplus reserves
2. Distribution for owners (or shareholders) -1185823277.46 -1185823277.46
3. Other
(IV) Carrying forward internal owners’ equity
1. Capital reserves conversed to capital (share
capital)
2. Surplus reserves conversed to capital (share
capital)
3. Remedying loss with surplus reserve
26WEIFU HIGH-TECHNOLOGYGROUP CO. LTD. ANNUAL REPORT 2024
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 6178007.63 6178007.63
2. Usage in the report period 6178007.63 6178007.63
(VI)Others 40808595.63 40808595.63
IV. Balance at the end of the report period 996986293.00 3394923686.54 469722092.24 510100496.00 12572820128.71 17005108512.01
27Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Wuxi Weifu High-Technology Group Co. Ltd.
2025 Financial Statement Notes
I. Company profile
1. History of the company
Wuxi Weifu High-Technology Group Co. Ltd. (hereinafter referred to as “the company” or “company”) is a
targeted fundraising holding limited liability company established upon the document approval of Jiangsu
Provincial Commission for Restructuring Economy Su Economy Restructuring (1992) No.130 and registered in
Wuxi Administration for Industry and Commerce in October 1992. Originally the company had a total share
capital of RMB 115435500 including state-owned legal entity share capital of RMB 92435500 social legal
entity share capital of RMB 8000000 and internal employee share capital of RMB 15000000.From 1994 to 1995 the company underwent restructuring and thereafter became a controlling subsidiary of
Wuxi Weifu Group Co. Ltd. (hereinafter referred to as “Weifu Group”).In August 1995 upon the approval of Jiangsu Provincial Commission for Restructuring Economy and
Shenzhen Securities Management Office the company issued 68000000 special common shares (B-shares) with
a par value of RMB 1 per share namely RMB 68000000 and the total share capital after issuance was RMB
183435500.
In June 1998 upon the approval of China Securities Regulatory Commission the company issued
120000000 RMB common shares (A-shares) at the Shenzhen Stock Exchange by online pricing issuance and the
total share capital after issuance was RMB 303435500.In mid-1999 upon the discussion by the board of directors and shareholders’ meeting the company gave
shares for free according to the plan of giving 3 shares for free per 10 shares and the total share capital after
giving shares was RMB 394466150 including: state-owned legal entity shares of RMB 120166150 social legal
entity shares of 10400000 foreign-funded shares (B-shares) of RMB 88400000 RMB common shares (A-
shares) of RMB 156000000 and internal employee shares of RMB 19500000.In 2000 upon the approval of China Securities Regulatory Commission the company allotted 3 shares per 10
shares based on the total share capital of 303435500 shares after the A-share issuance in June 1998 with
allotment price of RMB 10/share actually allotted 41900000 shares and the total share capital after allotment
amounted to RMB 436366150 including: state-owned legal entity shares of RMB 121566150 social legal
entity shares of RMB 10400000 foreign capital shares (B-shares) of RMB 88400000 and RMB common shares
(A-shares) of RMB 216000000.
In April 2005 corporate board of directors reviewed and adopted the 2004 profit pre-distribution plan which
was also reviewed and adopted by the 2004 shareholders’ meeting of the company giving 3 shares for free per 10
shares to all shareholders and 130909845 shares were distributed to all shareholders in 2005.According to the corporate equity split reform plan adopted by the relevant shareholders’ meeting on
corporate equity split reform and the Jiangsu Provincial State-owned Assets Supervision and Administration
Commission Su State-owned Assets Reply [2006] No.61 Reply on the Issues Concerning the State-owned Equity
Management of Equity Split Reform of Wuxi Weifu High-tech Co. Ltd. eight shareholders of non-tradable shares
28Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
including Weifu Group arranged the consideration at a level of giving 1.7 shares for free per 10 shares (giving a
total of 47736000 shares) to tradable A-share shareholders so that the original non-tradable share capital may be
listed and traded when certain conditions are met and this plan was implemented on 5 April 2006.On 27 May 2009 Weifu Group implemented the consideration arrangement with a ratio of giving 0.5 shares
for free per 10 shares based on the tradable A-shares before the stock reform according to the above equity split
reform plan and as a result additional 14039979 shares were given for free. After implementing additional
consideration shares Weifu Group held 100021999 shares of the company accounting for 17.63% of the total
share capital of the company.According to Reply on Consent to the Merger of Wuxi Industrial Development Group Co. Ltd. with Wuxi
Weifu Group Co. Ltd. of the State-owned Assets Supervision and Administration Commission of Wuxi Municipal
People’s Government (Xi State-owned Assets Enterprise [2009] No.46) Wuxi Industrial Development Group Co.Ltd. (hereinafter referred to as “Wuxi Industrial Group”) absorbed and merged with Weifu Group. After the
merger Weifu Group was cancelled with its assets and debts to be inherited by Wuxi Industrial Group which
became the largest shareholder of the company.According to the company shareholders’ meeting resolution and the amended articles of association and
upon the approval by the document of China Securities Regulatory Commission Securities Regulatory License
[2012] No.109 in February 2012 the company privately issued 112858000 RMB common shares (A-shares) to
Wuxi Industrial Group and overseas strategic investor German ROBERT BOSCH GMBH (hereinafter referred to
as “German Bosch”) with a par value of RMB 1 per share increasing the registered capital by RMB 112858000
and the registered capital after the change was RMB 680133995. Wuxi Industrial Group was the largest
shareholder of the company and German Bosch was the second largest shareholder of the company.In March 2013 the company board of directors reviewed and adopted the 2012 profit distribution plan which
was also reviewed and adopted by the 2012 shareholders’ meeting of the company in May 2013 giving 5 bonus
shares for free per 10 shares to all shareholders based on the total share capital of 680133995 shares
340066997 shares were distributed in total and as of 31 December 2013 the total company share capital was
RMB 1020200992.Upon the review and approval by the first interim shareholders’ meeting in 2015 the company repurchased
11250422 A-shares from 26 August 2015 to 8 September 2015 and completed cancellation procedures for the
aforesaid repurchased shares at the Shenzhen branch of China Securities Depository and Clearing Co. Ltd. on 16
September 2015; the company paid-in capital (share capital) after the change was RMB 1008950570.Upon the review and approval by the 5th meeting of the 10th board of directors of the company in 2021 the
company repurchased and cancelled 291000 restricted shares first granted according to the 2020 Restricted Share
Incentive Plan and completed cancellation procedures for the aforesaid repurchased shares at the Shenzhen
branch of China Securities Depository and Clearing Co. Ltd. on 20 December 2021; the paid-in capital (share
capital) of the company after the change was RMB 1008659570.00.Upon the review and approval by the 8th meeting of the 10th board of directors of the company in 2022 the
company repurchased and cancelled 56277 restricted shares first granted according to the 2020 Restricted Share
Incentive Plan and completed cancellation procedures for the aforesaid repurchased shares at the Shenzhen
branch of China Securities Depository and Clearing Co. Ltd. on 8 July 2022; the paid-in capital (share capital) of
the company after the change was RMB 1008603293.00.
29Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
In 2023 upon the review and approval by the 14th meeting 16th meeting and 20th meeting of the 10th board
of directors of the company the company repurchased and cancelled 430000 5593500 and 417000 restricted
shares first granted according to the 2020 Restricted Share Incentive Plan and completed cancellation procedures
for the aforesaid repurchased shares at the Shenzhen branch of China Securities Depository and Clearing Co. Ltd.on 16 February 2023 16 June 2023 and 18 December 2023; the company paid-in capital (share capital) after the
change was RMB 1002162793.On 15 April 2024 upon the company's 23rd meeting of the 10th board of directors that reviewed and adopted
the Proposal on Repurchasing Cancellation of Some Restricted Shares under the 2020 Restricted Share Incentive
Plan and the company shares concerning repurchasing cancellation were the restricted shares of which trade
restriction was not lifted yet held by 535 people totaling 5176500 shares. As of 7 June 2024 the company had
completed the repurchasing cancellation procedures of the aforesaid shares at the Shenzhen branch of China
Securities Depository and Clearing Co. Ltd. and the company paid-in capital (share capital) after the change was
RMB 996986293.On 16 April 2025 and 9 May 2025 the company held the 6th meeting of the 11th board of directors and the
2024 general shareholders’ meeting respectively reviewed and approved Proposal on Changing the Use of
Repurchased Shares and Cancellation agreed to change the use of 25000000 A-shares in the special securitiesaccount for repurchasing and changed from “used for implementing employee shareholding plan or equityincentive plan” to “used for cancellation and reduction of registered capital”. As of 26 June 2025 the company
had completed the repurchased share cancellation procedures for the aforesaid 25000000 shares at the Shenzhen
branch of China Securities Depository and Clearing Co. Ltd. The company changed its total share capital from
996986293 shares to 971986293 shares. The Proposal on the Plan for Repurchasing Some A-Shares of the
Company was reviewed and approved at the meeting agreeing the company to repurchase some of A-shares used
for reducing registered capital using its own funds and the special loan for repurchasing through centralized
bidding transactions. On 3 July 2025 the company disclosed the Announcement on the Completion of Some A-
share Repurchasing & Share Changes. The company repurchased a total of 5200600 A-shares by the special
securities account for repurchasing through centralized bidding transactions. As of 8 July 2025 the company had
completed the repurchase and cancellation procedures for the above shares at the Shenzhen branch of China
Securities Depository and Clearing Co. Ltd. After this change as of 31 December 2025 company registered
capital (total share capital) changed to RMB 966785693.
2. Corporate registered address organizational structure and headquarter address
Corporate registered address and headquarter address: No.5 Huashan Road Xinwu District Wuxi
Corporate Unified Social Credit Code: 91320200250456967N
The company set up the shareholders’ meeting and the board of directors
The company has Strategic Investment Department Market Expansion Department Organizational HR
Department Compliance & Securities Affairs Department Administration Department Finance Department
Discipline Inspection Work Department Manufacturing Safety Department Purchasing Center Technology
Center MS (Mechanical System) Business Department AC (Automotive Components) Business Department DS
(Automotive Diesel System) Business Department etc. as well as subsidiaries of Wuxi Weifu Lida Catalytic
Purifier Co. Ltd. Nanjing Weifu Jinning Co. Ltd. IRD Fuel Cells A/S Borit NV VHIO etc.
30Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
3. Business nature and main operating activities of the company
Corporate business scope: technological development and consulting service in mechanical industry;
manufacturing of internal combustion engine fuel system products fuel system testing instruments and equipment
automotive electronic components automotive electrical appliance components non-standard equipment non-
standard cutters and exhaust after-treatment system; sales of general machinery hardware and electrical
equipment chemical products and raw materials (excluding hazardous chemicals) automotive parts and vehicles
(excluding passenger vehicles of less than nine seats); internal combustion engine repair; self-owned house
leasing; self-operation and agent for import and export business of various commodities and technologies (except
those restricted by the state for operation or prohibited by the state for import and export). Engineering and
technical research and experimental development; energy recovery system R&D; manufacturing of automotive
parts and accessories; general equipment manufacturing (excluding special equipment manufacturing) (for items
subject to approval according to laws business activities may be implemented after approval by relevant
departments). Licensed items: special equipment manufacturing; special equipment installation renovation and
repair (for items subject to approval according to laws business activities may be implemented after approval by
relevant departments and specific business items are subject to the approval results); general items: engaging in
investment activities with own funds; software development; software sales; software outsourcing service; mold
manufacturing; mold sales; manufacturing of machine tool functional components and accessories; sales of
machine tool functional components and accessories; manufacturing of drawing calculation and measuring
instruments; sales of drawing calculation and measuring instruments; sales of industrial robots; installation and
repair of industrial robots; manufacturing of intelligent basic manufacturing equipment; sales of intelligent basic
manufacturing equipment; manufacturing of industrial automatic control system devices; sales of industrial
automatic control system devices; manufacturing of material handling apparatuses; sales of material handling
apparatuses; manufacturing of gas and liquid separation and purification equipment; sales of gas liquid separation
and purification equipment; technical service technical development technical consulting technical exchange
technical transfer and technical promotion; emerging energy technology R&D; cargo import and export; technical
import and export; manufacturing of ordinary valves and plugs (excluding special equipment manufacturing);
valve and plug R&D; sales of valves and plugs (except the items subject to approval according to laws business
activities are implemented independently according to laws with business license)
Its main subsidiaries produce and sell internal combustion engine parts automotive parts mufflers
converters fuel cell parts etc.
4. Approved issuance of financial report
Company financial report was reported with the approval of the company board of directors on 15 April 2026.
5. In the financial statement notes unless otherwise specified the following company names are
abbreviated as follows:
Name of subsidiaries Subsidiary abbreviation
Nanjing Weifu Jinning Co. Ltd. Weifu Jinning
31Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Name of subsidiaries Subsidiary abbreviation
Wuxi Weifu Lida Catalytic Converter Co. Ltd. Weifu Lida
Wuxi Weifu Mashan Fuel Injection Equipment Co. Ltd. Weifu Mashan
Wuxi Weifu Chang’an Co. Ltd. Weifu Chang’an
Wuxi Weifu International Trade Co. Ltd. Weifu International Trade
Wuxi Weifu Schmidt Power System Spare Parts Co. Ltd. Weifu Schmidt
Ningbo Weifu Turbocharging Technology Co. Ltd. Weifu Tianli
Wuxi Weifu Autocam Precision Machinery Co. Ltd. Weifu Autocam
Wuxi Weifu Lida Catalytic Converter (Wuhan) Co. Ltd. Weifu Lida (Wuhan)
Weifu Lida (Chongqing) Automotive Parts Co. Ltd. Weifu Lida (Chongqing)
Nanchang Weifu Lida Automotive Parts Co. Ltd. Weifu Lida (Nanchang)
Wuxi Weifu Smart Seat Co. Ltd. Weifu Autosmart
Weifu Lianhua Automotive Parts (Fuzhou) Co. Ltd. Weifu Lianhua
Wuxi Weifu Electric Drive Technology Co. Ltd. Weifu Electric Drive
Wuxi Weifu Qinglong Power Technology Co. Ltd. Weifu Qinglong
Yiwo Automotive System (Wuxi) Co. Ltd. Yiwo Automotive
Weifu Zhigan (Wuxi) Technology Co. Ltd. Weifu Zhigan
Weifu Yite Hydrogen Energy Technology (Wuxi) Co. Ltd. Weifu Yite
Weifu Baolong (Nanjing) Technology Co. Ltd. Weifu Baolong
Weifu Holding ApS SPV
IRD Fuel Cells A/S IRD
IRD FUEL CELLS LLC IRD USA
Borit NV Borit
Borit Inc. Borit USA
VHIT S.p.A. Società Unipersonale VHIO
II. Preparation basis of the financial statements
1. Preparation basis
The company prepared financial statement pursuant to the Accounting Standards for Business Enterprise—
Basic Standards and specific accounting standards promulgated by the Ministry of Finance Application
Guidelines of Accounting Standards for Business Enterprises Interpretations of Accounting Standards forBusiness Enterprises and other relevant regulations (hereinafter referred to as “Accounting Standards for BusinessEnterprises”) as well as Compilation Rules for Information Disclosure by Companies Offering Securities to the
Public No.15—General Provisions on Financial Report (2023 Amendment) of the China Securities Regulatory
Commission based on assumption of sustainable operation actual transaction and event.According to relevant provisions of the accounting standards for enterprises accounting in the company is
conducted based on the accrual system. Apart from certain financial instruments the financial statements are
computed on the basis of historical costs. If an asset is impaired the corresponding provision for impairment shall
be made in accordance with the relevant provisions.
2. Continuous operation
The financial statement is presented based on sustainable operation and the company has the ability of
sustainable operation within at least 12 months from the end of reporting period.
32Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
III. Significant accounting policies and accounting estimate
The company its subsidiaries have made several specific accounting policies and accounting estimates for
various transactions and events according to actual production and operation characteristics and based on
relevant accounting standards for business enterprises described below.
1. Statement on compliance with Accounting Standards for Business Enterprises
The financial statements formulated by the company were in accordance with the requirements of accounting
standards for enterprises and they truly and completely reflected the company's consolidation and its parent
company's financial status on 31 December 2025 as well as its consolidation and its parent company's operation
results consolidation cash flow and other relevant information in 2025.
2. Accounting period
The company’s accounting period is divided into annual and medium-term periods. The latter is shorter than
the reporting period of a complete accounting year. Fiscal year of the company follows the Gregorian calendar
year namely from January 1 to December 31 every year.
3. Business cycle
With 12 months as an operating cycle the company also uses this as a dividing standard for the liquidity of
assets and liabilities.
4. Accounting standard currency
The currency used by the company in preparing the financial statement is RMB. The overseas subsidiaries of
the company have determined EUR DKK and USD as their functional currencies based on the primary economic
environments in which they operate.
5. Accounting treatment method for business combination under the same and different control
Business combination refers to the transactions or events of combining two or more than two separate
businesses into one reporting entity. Business combination includes business combination involving entities under
common control and business combination involving entities not under common control.
(1) Enterprise merge under the same control
The enterprises involved in combination are ultimately controlled by the same party or parties before and
after the combination. The control is not temporary and the combination is under the same control. For business
combinations under the same control the party that obtains control over other participating enterprises on the
acquisition date is the acquirer and other enterprises that participate in the combination are the acquirees.Combination date refers to the date on which the combing party actually obtains control to the combined party.The company measures the assets and liabilities obtained from consolidation of enterprises according to the
book value of consolidated party’s assets and liabilities (including the goodwill arising from ultimate controller’s
33Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
acquisition of the consolidated party) in the ultimate controller’s consolidated financial statement on the
consolidation date; adjusts the capital premium in capital reserve by the difference between obtained net asset
book value and paid consolidated consideration book value (or total par value of shares issued) and adjusts
retained earnings if the capital premium in capital reserve is insufficient to offset.The direct expenses generated by the acquirer for the purpose of business combinations shall be recorded into
the profits and losses for the current period.
(2) Business combination not under the same control
If the enterprises participating in the merger are not ultimately controlled by the same party or parties before
and after the combination the business combination is facilitated under different controls. For business
combinations not under the same control the party that obtains control over other participating enterprises on the
acquisition date is the acquirer and other enterprises that participate in the combination are the acquirees. The
acquisition date refers to the date when acquirer actually obtains control over acquiree.For the business combination involving entities not under common control the cost of a business
combination paid by the acquirer is the aggregate of the fair value at the acquisition date of assets given liabilities
incurred or assumed and equity securities issued by the acquirer in exchange for control of the acquired entity
and relevant professional expenditures directly attributed to the combination including audit fee legal service fee
appraisal fee and etc. are charged to the income statement of the current period when occurs. Any transaction
costs occurring in the process of issuing equity securities or debt securities as consideration paid for combination
by the acquirer are included in the initially recognized amount of equity securities or debt securities. Contingent
consideration shall be record into the cost of business combination at fair value at the acquisition date. If there is
new or additional information about facts and circumstances that existed at the acquisition date within 12 months
from the date of acquisition that requires to adjust the contingent consideration the goodwill shall be adjusted
correspondingly. The cost of combination incurred to the acquirer and the net identifiable assets obtained in the
processing of combination shall be measured at the acquisition-date fair value. Goodwill is identified as the excess
of combination cost over the fair value of identifiable net assets obtained by the acquirer in combination on the
acquisition date. If the combination cost is less than the fair value of identifiable net assets obtained by acquiree in
the combination the fair value of identifiable assets liabilities and/or contingent liabilities of the acquiree and the
combination costs should be re-computed first. If the combination cost is still less than the fair value of
identifiable net assets obtained by the acquiree in the combination the difference shall be included into the current
profits and losses.When the deductible temporary difference obtained by the purchasing party from the purchased party is
unrecognized due to incompliance with the deferred income tax asset recognition criteria on the purchasing date
within 12 months after the purchasing date if new or further information shows relevant circumstances of the
purchasing date have existed and economic benefits of the purchased party brought by the deductible temporary
difference on the purchasing date is expected to realize the relevant deferred income tax assets are recognized
while the goodwill is reduced; if the goodwill is insufficient to offset the difference part is recognized as current
profits and losses; except for the above circumstances the deferred income tax assets recognized in connection
with enterprise consolidation are included in current profits and losses.If the consolidation of enterprises under different control is achieved through multiple transactions by steps
and they are the “package deal” the accounting treatment is made with reference to descriptions of the foregoing
34Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
paragraphs in this section and Note III 14 “Long-term equity investment”; if they are not the “package deal”
relevant accounting treatment is subject to distinguishing between individual financial statement and consolidated
financial statement.In separate financial statements the sum of the carrying amount of the acquirer’s interest in the acquired
entity’s equity investments prior to the acquisition date and the additional investment costs at the acquisition date
is recognized the initial investment cost; For the acquirer’s interest in the acquired entity’s equity investments
prior to the acquisition date that is related to other comprehensive income it shall be accounted with other
relevant comprehensive incomes on the same basis of direct disposal of assets or liabilities in the disposal of the
investment (i.e. except for the share in change in the re-measurement of the net assets or net liabilities of the
defined benefit plan using the equity method others are accounted into current investment income).In the consolidated financial statements the acquirer’s interest in the acquired entity’s equity investments
prior to the acquisition date is measured at the fair value at acquisition date and the difference between fair value
and carrying amount is accounted into current investment income; For the acquirer’s interest in the acquired
entity’s equity investments prior to the acquisition date that is related to other comprehensive income it shall be
accounted with other relevant comprehensive incomes on the same basis of direct disposal of assets or liabilities
in the disposal of the investment (i.e. except for the share in change in the re-measurement of the net assets or net
liabilities of the defined benefit plan using the equity method others are accounted into current investment
income).
6. The standard for judging control and method for preparing consolidated financial statement
(1) The standard for judging control
The scope of financial statements consolidation is decided based on the control. Control means that the
Company has the power over the invested entity earns variable return by participating in relevant activities of the
invested entity and has the ability to influence the return amount by exercising its power over the invested entity.Generally include the investee company of which the parent company holds more than half of its voting rights and
although the company holds less than half of its voting rights it holds more than half of voting rights of the
investee company through the agreement with other investors of the investee company; have the right to decide on
financial and operational decisions of the investee company according to the company articles of association or
agreement; have the right to appoint or dismiss most members of the board of directors of the investee company;
account for a majority of voting rights in the board of directors of the investee company.
(2) Method for compiling consolidated financial statements
From the date of obtaining the actual control of the subsidiary's net assets and production and business
decisions the company began to include it in the scope of consolidation; and ceased to be included in the scope of
consolidation from the date of loss of actual control. For the subsidiary in disposal business performance and cash
flows prior to the date of disposal has been included in the consolidated income statement and consolidated cash
flow statement; For the subsidiary disposed in the current period the opening balance in the consolidated balance
sheet is not adjusted. For subsidiaries that are not under the same control and whose business combination is
increased the operating results and cash flows after the purchase date have been properly included in the
consolidated income statement and the consolidated cash flow statement and the opening balance and comparison
35Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
of the consolidated financial statements are not adjusted. For the subsidiary acquired in the business combination
under same control the business performance and cash flows from the beginning of the period to the acquisition
date has been included in the consolidated income statement and consolidated cash flow statement and the
comparative figures in the consolidated financial statements are correspondingly restated.In preparing of the consolidated financial statements when the accounting policies or accounting period of a
subsidiary are different from those of the Company the Company makes necessary adjustments to the financial
statements of the subsidiary based on the Company' s own accounting policies or accounting period. For
subsidiaries acquired under a business combination not under common control the financial statements of the
subsidiary are adjusted based on the fair value of the identifiable net assets at the acquisition date.All major current balances transactions and unrealized profits in the company are offset when the
consolidated financial statements are prepared.The shareholder’s equity of the subsidiary and the current portion of the net profit or loss that does not
belong to the company are separately presented as minority shareholders’ equity and minority shareholders’ profits
and losses under the item of shareholders’ equity and net profit in the consolidated financial statements. The shareof the subsidiary’s current net profit or loss attributable to minority interests is presented as “minority interestincome” under the net profit in the consolidated income statement. Where losses attributable to the minority
shareholders of a subsidiary exceeds the minority shareholders interest in of the equity of the subsidiary they are
still offset against the minority shareholders interest.If a parent disposes of partial equity interest or loses control of a subsidiary due to other factors the parent
should recognize any residual interest in the former subsidiary at its fair value when control is lost. Difference of
the sum of consideration arising from equity disposal and fair value of remaining equity minus the net asset
portion of original subsidiaries calculated continuously from the purchase date as per the original shareholding
ratio is included in investment income of the current period when losing control right. Other comprehensive
income related to the equity investment of the original subsidiary when the loss of control right is used the
accounting basis is the same as that of the purchased party that directly disposes of the relevant assets or liabilities.(that is except for the change in the net liabilities or net assets caused by the re-measurement of the defined
subsidiaries in the original subsidiary the rest will be converted into current investment income). Afterwards the
remaining equity of this part is subsequently measured in accordance with relevant regulations such as
“Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investment” or “Accounting Standardsfor Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments” for details please
refer to Note III 14 “Long-term equity investment” or Note III 10 “Financial Instruments”.If the company disposes of the equity investment in a subsidiary through multiple transactions until it loses
control it needs to distinguish whether each transaction that deals with the equity investment in the subsidiary
until the control is lost is a package transaction. If the terms conditions and economic impact of the various
transactions for the disposal of an equity investment in a subsidiary meet one or more of the following conditions
it usually indicates that the multiple transactions should be accounted for as a package deal:* these transactions
are entered into simultaneously or with consideration of their mutual impact;* these transactions as a whole can
achieve a complete business result;* the occurrence of a transaction depends on the occurrence of at least one
other transaction;* a transaction is not economical on its own but is economical when considered together with
other transactions. If they are not the package deal for each transaction accounting treatment is conducted
36Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notesrespectively according to the applicable principles in “partially disposing the long-term equity investment ofsubsidiary without losing the control right” and “losing the control right on original subsidiary due to disposal ofpartial equity investment or other reasons”. Disposal of the equity investment in the subsidiary until the loss of
control of the transaction is a package transaction the transaction will be treated as a transaction to dispose of the
subsidiary and lose control; however before the loss of control the difference between the disposal price and the
share of the net assets of the subsidiary corresponding to the disposition of the investment is recognized in the
consolidated financial statements as other comprehensive income. When the control right is lost it is transferred
to the loss of control at the same time. profit and loss.
7. Classification of joint arrangements and accounting of joint operations
Joint arrangement refers to an arrangement that is jointly controlled by two or more participants. The
company classifies joint arrangements into joint operations and joint ventures based on the rights it enjoys and the
obligations it assumes during the joint venture arrangement. Joint operation refers to the joint venture arrangement
in which the company enjoys the relevant assets of the arrangement and bears the liabilities of the arrangement. A
joint venture refers to a joint venture arrangement where the company only has rights to the net assets of the
arrangement.The company’s investment in joint venture is accounted by the equity method and treated according to the
accounting policy specified in Note III. 14(2)* “Long-term equity investment accounting by the equity method”.The company operates jointly as a joint venture confirming the assets held by the company alone the
liabilities the company assumed alone and confirming jointly held assets and jointly assumed liabilities according
to the shares of the company; confirming the income generated from the sale of the company’s joint operating
output share; the income generated from the sales of joint operations according to the company’s share;
confirming the expenses incurred by the company alone and confirming the cost of joint operations according to
the company’s share.When the company operates as a joint venture to jointly sell or sell assets (this asset does not constitute a
business the same below) or when purchasing assets from a joint operation before the assets are sold to a third
party. The company only recognizes the portion of profit or loss arising from this transaction that is attributable to
other participants of the joint venture. If such assets incur an impairment loss in accordance with the provisions of
Accounting Standards for Business Enterprises No. 8 - Asset Impairment and other regulations for assets
contributed or sold by the Company to the joint operation the Company shall recognize the full amount of the loss.For assets purchased by the Company from the joint operation the Company shall recognize the loss based on the
share it assumes.
8. Determination standards of cash and cash equivalents
The company's cash and cash equivalents include cash on hand deposits that can be used for payment at any
time investments that owned by the company which are in short-term (usually due within three months from the
purchase date) highly liquid easy to convert to a known amount of cash low risk of value change.
37Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
9. Foreign currency transactions and conversion of foreign currency statements
(1) Conversion of foreign currency transactions
When initially confirming the foreign currency transaction occurred by the company it shall be converted
into the functional currency according to the spot exchange rate on the transaction date. However the foreign
currency conversion business or the transaction involving foreign currency conversion that occurred in the
company shall be converted into functional currency amount according to the actual exchange rate.
(2) Conversion methods for foreign currency monetary items and foreign currency non-monetary items
On the balance sheet date foreign currency monetary items are converted at the spot exchange rate on that
date and the resulting exchange difference is included in current profits and losses except:* the exchange
difference arising from special borrowings of foreign currency related to constructing the assets eligible for
capitalization is treated in the principle of borrowing cost capitalization;* the exchange difference of hedging
instrument used for effective net overseas operation investment hedging (such difference is included in other
comprehensive incomes and it is recognized as current profits and losses until net investment is disposed);* for
the available-for-sale foreign currency monetary items the exchange differences arising from book balance
changes other than the amortized costs are included in other comprehensive incomes.For the preparation of consolidated financial statements involving overseas operations if there is a foreign
currency monetary item that substantially constitutes a net investment in overseas operations the exchange
differences arising from changes in exchange rates are included in other comprehensive income; When disposing
of overseas operations transfer to disposal of current profits and losses.Non-monetary foreign currency items measured at historical cost are still measured by the amount of
functional currency converted at the spot exchange rate on the transaction date. Non-monetary foreign currency
items measured at fair value shall be converted at the spot exchange rate on the date when the fair value was
determined. The difference between the converted functional currency amount and the original functional
currency amount shall be treated as changes in fair value (including changes in exchange rates) and included in
current profit or loss or confirming as other comprehensive income.
(3) Conversion method of foreign currency financial statements
For the preparation of consolidated financial statements involving overseas operations if there is a foreign
currency monetary item that substantially constitutes a net investment in overseas operations the exchange
differences arising from changes in exchange rates shall be confirmed to be other comprehensive income as a
“foreign currency conversion difference”; When disposing of overseas operations included in disposal of current
profit and loss.The foreign currency financial statement of overseas operation is converted into RMB statement as follows:
items of assets and liabilities in the balance sheet are converted at the spot exchange rate on the balance sheet date;
except for the “undistributed profit” item other owner’s equity items are converted at the spot exchange rate at the
time of incurrence. Income and expense items in the income statement are converted by the spot exchange rate on
the transaction date. The undistributed profit at the end of last year is the undistributed profit at the end of year
after conversion of last year; the undistributed profit at the end of period is presented by calculation of each item
according to the profit distribution after conversion; the difference between the items of assets and liabilities after
38Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
conversion and the total owner’s equity items is recognized as other comprehensive incomes as the conversion
difference of foreign currency financial statement. When disposal foreign operations and the control rights are lost
the difference in foreign currency statements related to the overseas operations that are listed in the shareholders’
equity items in the balance sheet is transferred to the current profit or loss either in whole or in proportion to the
disposal of the foreign operations.Foreign currency cash flows and cash flows of overseas subsidiaries are converted at the spot exchange rate
on the cash flow occurrence day. The impact of exchange rate changes on cash is treated as a reconciliation item
and presented separately in the cash flow statement.The number at the end of last year and actual number of last year are presented according to the amount after
conversion of financial statement of last year.When disposing of the entire owner’s equity of the company’s overseas operations or the loss of overseas
operations control rights due to the disposal of part of the equity investment or other reasons the ownership of the
shareholders’ equity in the balance sheet and the operations related to the overseas operations are attributed to the
difference in conversion of foreign currency statements of owners’ equity of the parent company and is transferred
to the disposal of current profit or loss.When disposing of part of the equity investment or other reasons that result in a reduction in the proportion
of overseas operating equity but not losing control over overseas operations the foreign exchange statement
conversion differences related to the foreign operations disposal part will be attributed to minority shareholders’
equity and will not be transferred to the current profits and losses. When disposing of partial equity in an overseas
operation is an associate or a joint venture the foreign currency conversion difference related to the overseas
operation is transferred to the disposal of current profit or loss in proportion to the disposal of the foreign
operation.
10. Financial instruments
When the company becomes a party to a contract of a financial instrument the company shall recognize a
financial asset or financial liability.
(1) Classification confirmation and measurement of financial assets
Based on business model of managing financial assets and contractual cash flow characteristics of financial
assets the company divides financial assets into: financial assets measured at amortized cost; financial assets
measured at fair value with changes included in other comprehensive incomes; financial assets measured at fair
value with changes included in current profits and losses.Financial assets are measured at fair value at initial recognition. For the financial assets at fair value and
through current profit or loss the transaction expenses thereof should be recognized directly in profit or loss; for
other categories of financial assets the transaction expenses thereof should be recognized into initially recognized
amount. For the accounts receivable or bills receivable arising from product sales or labor service provision
excluding or not considering significant financing components the company regards the amount of consideration
expected to charge as the initial recognition amount.i. Financial assets measured at amortized costs
The corporate business model for managing financial assets measured at amortized cost aims at charging
39Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
contractual cash flow and the contractual cash flow characteristics of such financial assets are consistent with
basic borrowing and loan arrangements namely cash flow is generated on a specific date only for payment of
principal and interests based on outstanding principal amount. The company utilizes effective interest rate method
for such financial assets and performs subsequent measurement as per amortized cost with gains or losses arising
from amortization or impairment included in current profits and losses.ii. Financial assets measured at fair value with changes included in other comprehensive incomes
The corporate business model for managing such financial assets aims at both contractual cash flow charging
and sales and the contractual cash flow characteristics of such financial assets are consistent with basic borrowing
and loan arrangements. The company measures such financial assets at fair value with changes included in other
comprehensive incomes but impairment losses or gains exchange gains and losses and interest incomes
calculated according to the actual interest rate method are included in current profits and losses.In addition the company designates some non-trading equity instrument investments as financial assets
measured at fair value with changes included in other comprehensive incomes. The company records relevant
dividend incomes of such financial assets into current profits and losses and records fair value changes into other
comprehensive incomes. When such financial assets are derecognized the cumulative gains or losses previously
recorded in other comprehensive incomes will transfer from other comprehensive incomes into retained earnings
excluded in current profits and losses.iii. Financial assets at fair value and through current profit or loss
The company classifies the above financial assets measured at amortized cost and the financial assets other
than the financial assets measured at fair value with changes included in other comprehensive incomes as the
financial assets measured at fair value with changes included in current profits and losses. In addition during
initial recognition in order to eliminate or significantly reduce accounting mismatches the company designates
some financial assets as financial assets measured at fair value with changes included in current profits and losses.For such financial assets the company uses fair value for subsequent measurement and fair value changes are
included in current profits and losses.
(2) Classification recognition and measurement of financial liabilities
Financial liabilities are classified during initial recognition as the financial liabilities measured at fair value
with changes included in profits and losses and other financial liabilities. For financial liabilities at fair value
through profit or loss the transaction expenses thereof should be recognized directly in current profit or loss and
for other financial liabilities the transaction expenses thereof should be recognized into initially recognized
amount.i. Financial liabilities at fair value and through current profit or loss
Financial liabilities measured at fair value with changes included in current profits and losses contain
transactional financial liabilities (including derivatives that belong to financial liabilities) and financial liabilities
designated as measured at fair value during initial recognition with changes included in current profits and losses.Transactional financial liabilities (including derivatives that belong to financial liabilities) are subsequently
measured at fair value and except for hedge accounting-related the fair value changes are included in current
profits and losses.The financial liabilities designated as measured at fair value with changes included in current profits and
losses such liabilities are caused by the company’s own credit risk changes with fair value changes included in
40Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
other comprehensive incomes and when the liabilities are derecognized they are included in other comprehensive
incomes caused by own credit risk changes with cumulative fair value changes transferred into retained earnings.The remaining fair value changes are included in current profits and losses. If treatment of own credit risk change
impact of such financial liabilities in the above manner will cause or expand accounting mismatch in profits and
losses the company includes all gains or losses of such financial liabilities (including the amount of corporate
own credit risk change impact) in current profits and losses.ii. Other financial liabilities
Except the financial liabilities and financial guarantee contract arising from financial asset transfer at
variance with derecognition conditions or continuous involvement of transferred financial assets other financial
liabilities are classified as financial liabilities measured at amortized cost and subsequently measured at
amortized cost with gains or losses resulting from derecognition or amortization included in current profits and
losses.
(3) Confirmation basis and measurement method of financial assets transfer
Financial assets are derecognized in one of the following conditions:* the contractual right to receive cash
flow of such financial assets is terminated;* such financial assets have been transferred and almost all risks and
rewards on the financial asset ownership are transferred to the transferee;* such financial assets have been
transferred and although the company has neither transferred nor retained almost all risks and rewards on the
financial asset ownership it has given up control of such financial assets.If the enterprise neither transfers nor retains substantially all the risks and rewards of ownership of a financial
asset and it has not abandoned the control of that financial asset the relevant financial asset is recognized at the
extent of continuing involvement in the transferred financial asset and the corresponding liability is recognized
accordingly. The term “continuous involvement in the transferred financial asset” refers to the risk level that the
enterprise faces due to the change of the value of the financial asset.Where a transfer of a financial asset in its entirely meets the criteria of de-recognition the difference between
the carrying amount of the financial asset transferred and the sum of the consideration received from the transfer
and any cumulative change in fair value that has been recognized in other comprehensive incomes is recognized
in current profit or loss.Where a transfer of financial asset partly meets the criteria of de-recognition the carrying amount of the
financial asset transferred should be amortized between the part that is derecognized and the part that is not
derecognized according to the fair value and the difference between the sum of the consideration received from
the transfer and any cumulative change in fair value that has been recognized in other comprehensive incomes and
should be amortized to the derecognized part and the amortized above-mentioned carrying amount shall be
recorded into current profit or loss.When the company uses financial assets sold with recourse or sells financial assets held in an endorsement it
must determine whether all risks and rewards of ownership of the financial assets have been almost transferred.Where all the risks and rewards of ownership of the financial asset have been transferred to another party the
financial asset is derecognized; Where all the risks and rewards of ownership of the financial asset have been
retained the financial asset is not derecognized; Where all the risks and rewards of ownership of the financial
asset have not been transferred or retained it shall be determined whether the enterprise has retained control over
41Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
the asset and the above-mentioned accounting principles in preceding paragraphs shall be applied.
(4) De-recognition of Financial Liabilities
If current obligations of financial liabilities (or a part thereof) are removed the company derecognizes such
financial liabilities (or a part thereof). If the company (borrower) signs an agreement with the lender to replace
the original financial liabilities by bearing new financial liabilities and contract clauses of new financial liabilities
and original financial liabilities are substantially different the original financial liabilities are derecognized while
recognizing a new financial liability. If the company makes substantial modification to the contractual clauses of
original financial liabilities (or a part thereof) the original financial liabilities are derecognized and a new
financial liability is recognized according to the clauses after modification.If financial liabilities (or a part thereof) are derecognized the company records the difference between their
book value and consideration paid (including non-cash assets transferred out or liabilities assumed) into current
profits and losses.
(5) Offset of financial assets and financial liabilities
When the company has legal right to offset financial assets and financial liabilities of the recognized amount
and such legal rights are currently enforceable meanwhile the company plans to settle by net assets or
concurrently liquidate such financial assets and repay such financial liabilities financial assets and financial
liabilities are presented in the balance sheet by net amounts after mutual offset. In addition financial assets and
liabilities are presented separately in the balance sheet and cannot be set off against each other.
(6) Determining method of the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant can be received for the sale of an asset or the price he
needs to pay for transferring a liability in an orderly transaction occurring on the measurement date. Where the
financial instruments exist on active market the company determines their fair value by using quotation on active
market. Quoted market prices in an active market refer to the prices that are readily to get regularly from the
exchange the broker the trade association pricing services institution etc. and they represent the actual market
transaction prices in the fair transactions. Where the financial instruments do not exist on active market the
company determines their fair value by using valuation techniques. Valuation techniques include refers to the
prices used in recent market transactions by the parties that are familiar to the situation and are voluntary to
participate in the transaction refers to the current fair values of other essentially the same financial instruments
discount cash flow valuation option pricing models etc. At the time of valuation the company leverages
valuation techniques that are applicable in the current circumstances and adequately supported by available data
and other information chooses the input value consistent with the characteristics of assets or liabilities considered
by market participants in transaction of relevant assets or liabilities and prefers to use the relevant observable
input value. The value that cannot be inputted is utilized when the relevant observable input value is unavailable
or unfeasible to obtain.
11. Impairment of financial assets
The financial assets that the company needs to confirm impairment losses are financial assets measured at
amortized cost debt instrument investments measured at fair value with changes included in other comprehensive
42Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
incomes mainly including bills receivable accounts receivable contract assets other receivables debt investment
other debt investments long-term receivables etc. In addition for some financial guarantee contracts provision
for impairment and recognition of credit impairment losses are also conducted in accordance with the accounting
policies described in this section.
(1) Method for recognizing impairment provision
Based on expected credit losses the company makes impairment provision and recognizes credit impairment
losses according to the applicable expected credit loss measurement method (general method or simplified method)
for the above items.Credit losses refer to the difference between all contractual cash flows receivable under the contract and all
cash flows expected to charge and discounted by the company at the original actual interest rate namely the
present value of all cash shortages. Among them for the financial assets purchased or originated and suffered
credit impairment the company discounts such financial assets as per the credit-adjusted actual interest rate.General method for measuring expected credit losses means that the company assesses on each balance sheet
date whether the credit risks of financial assets have increased significantly since initial recognition and if the
credit risks have increased significantly since initial recognition the company shall measure loss provision based
on the amount equivalent to expected credit losses throughout the existence period; if the credit risks have not
increased significantly since initial recognition the company measures loss provision based on the amount
equivalent to expected credit losses within the next 12 months. When evaluating expected credit losses the
company considers all reasonable and well-grounded information including forward-looking information.Assuming that the credit risk of the financial instruments with low credit risks on the balance sheet date has
not increased significantly since the initial recognition the Company chooses to measure the loss provision based
on the expected credit loss within the next 12 months/does not choose a simplified processing method and
depending on whether their credit risk has increased significantly since the initial recognition the Company
measures the loss provision based on the expected credit loss within the next 12 months or the entire term of its
existence.
(2) Criteria for judging whether credit risks have increased significantly since initial recognition
If the default probability of a financial asset within the expected existence period determined on the balance
sheet date is significantly higher than the default probability within the expected existence period determined
during initial recognition it indicates that the credit risks of such financial asset have increased significantly.Except in special circumstances the company adopts the default risk changes that occur within the next 12 months
as reasonable estimate of default risk changes that occur throughout the existence period to determine whether
credit risks have increased significantly since initial recognition.In general if overdue for more than 30 days the company believes credit risk of this financial instrument has
increased significantly unless conclusive evidences prove credit risk of this financial instrument has not increased
significantly since initial recognition.
(1) The company will consider the following factors when assessing whether credit risk is increased
significantly:
1) Whether the actual or expected operating results of the debtor have changed significantly;
2) Whether the debtor’s regulatory economic or technological environment has undergone significant
43Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
adverse changes;
3) Whether the value of collateral used for debt mortgage or the quality of guarantee or credit enhancement
provided by third party has changed significantly. These changes are expected to reduce the debtor’s economic
motivation to repay the loan within the specified period of contract or affect defaulting probability;
4) Whether expected performance and repayment behavior of the debtor has changed significantly;
5) Whether corporate credit management methods for financial instruments have changed etc.
(2) On the balance sheet date if the company judges financial instrument only has relatively low credit risk
the company assumes credit risk of this financial instrument has not increased significantly after initial
recognition. If the default risk of financial instrument is low the borrower has a strong ability to fulfill its
contractual cash flow obligation in the short term and even if unfavorable changes exist in the economic situation
and operation environment over a long period of time it may not necessarily reduce the borrower’s ability to
fulfill its contractual cash obligation and such financial instrument is deemed to have lower credit risk.
(3) Portfolio method for evaluating expected credit risks based on portfolio
The company evaluates credit risks individually for financial assets with significantly different credit risks
e.g.: receivables from associated parties; receivables in dispute with the other party or involved in litigation and
arbitration; receivables with obvious indication that the debtor is probably unable to perform repayment
obligations etc.Apart from financial assets with single assessment of credit risk the company classifies financial assets into
different groups based on common risk characteristics. Common credit risk characteristics adopted by the
company include: financial instrument type credit risk rating aging portfolio overdue account aging portfolio
contract settlement cycle debtor’s industry etc. to assess credit risk based on portfolio.
(4) Accounting treatment method of financial asset impairment
At the end of period the company calculates expected credit losses of various financial assets and if such
expected credit losses are greater than current carrying amount of impairment losses the difference is recognized
as impairment losses; if they are less than the carrying amount of current impairment provision the difference is
recognized as impairment gains.
(5) Method for recognizing credit losses of various financial assets
In addition to receivables with individual assessment of credit risks the company classifies receivables into
different groups based on common risk characteristics and assesses credit risk based on the portfolio. The basis
for determining different portfolios and specific methods for measuring expected credit losses are as follows:
Items Determine the basis for thecombination Specific method for measuring expected credit losses
Regarding receivables within six months the company does not make
Receivables financing provision for expected credit losses; besides the company believes that the
- bank acceptance bill Bank acceptance bill credit risk of the held bank acceptance bills is quite low and will not incur
portfolio significant losses due to bank default and therefore the expected creditlosses are not measured for the receivables financing-bank acceptance bill
portfolio
44Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Items Determine the basis for thecombination Specific method for measuring expected credit losses
Regarding receivables within six months the company does not make
Notes receivable - provision for expected credit losses; besides the credit risk of the
commercial commercial acceptance bills held by the company is quite low because
acceptance bill Commercial acceptance bill these bills are mainly issued by reputable automobile manufacturers.portfolio According to historical experience there was no major default andtherefore the expected credit losses are not measured for the notes
receivable-commercial acceptance bill portfolio
Accounts receivable except
Accounts receivable - receivables from internal related
customer portfolio parties and amounts of which the Expected credit losses measured by agingindividual provision for credit
impairment losses has been made
Other receivables except
Other receivables - receivables from internal related The expected credit losses are calculated through default risk exposure and
other receivable parties and amounts of which the expected credit loss rate in the entire duration within the next 12 months
portfolio individual provision for credit with reference to historical credit loss experience combined with current
impairment losses has been made status and future economic status forecast.Regarding accounts receivable with expected credit losses measured by aging their aging is calculated
continually from the initial recognition date of the creditor’s right and the expected credit loss accrual ratio
corresponding to different aging stages is:
Aging Accrual ratio (%)
Within six months --
Six months to one year 10.00
One to two years 20.00
Two to three years 40.00
More than three years 100.00
12. Inventory
(1) Classification of inventory
Inventory mainly includes raw materials products in process finished products contract performance costs
etc.
(2) Valuation method for delivery
In case of acquisition and delivery the price is weighted according to the weighted average method;
(3) The inventory system is a perpetual inventory system.
(4) Amortization method for low-value consumables and packages
Low-value consumables should be amortized at one-off amortization method when they are received; and the
packages should be amortized at one-off amortization method when they are received.
(5) Recognition standard and accrual method for inventory depreciation reserve
The net realizable value refers to the estimated sold price of inventories less the estimated costs to be
incurred upon completion estimated selling expenses and related taxes in daily activities. When determining the
net realizable value of inventories based on obtaining conclusive evidence consider the purpose to hold the
inventory and the influence of events after the balance sheet date.On the balance sheet date inventories are measured at the lower between the cost and net realizable value.When the net realizable value is lower than the cost inventory depreciation reserve is withdrawn. The provision
for inventory devaluation is usually based on the difference between the higher cost of a single inventory item and
45Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
its net realizable value. As for inventories with large quantity and low unit price the provision for inventory
depreciation reserve is made based on the category of inventories; as for inventories related to serial products
manufactured and sold in the same region with the same or similar ultimate application or purpose and difficult
to measure separately from other items the provision for inventory depreciation reserve may be combined.After accruing inventory depreciation reserve if the influencing factors of the previous write-down of
inventory value have been disappeared and the net realizable value of inventory exceeds its book value and then
it should be reversed from the provision for inventory devaluation accrued and the amount transferred back is
included in the current profit or loss.
13. Held for sale and discontinued operation
(1) Held non-current assets for sale and disposal group
If the company recovers its book value mainly through sale (including non-monetary asset exchange with
commercial substance the same below) instead of continuing usage of a non-current asset or disposal group it
should be classified as held for sale. The specific criteria are to meet the following conditions at the same time: a
non-current asset or disposal group can be sold immediately under current conditions based on the convention of
selling such assets or disposal groups in similar transactions; the company has already made a resolution on the
sale plan and the purchase promise; the expected sales would be completed within one year. Among them the
disposal group refers to a group of assets that are disposed of as a whole through sale or other means in a
transaction and the liabilities direct related to these assets transferred in the transaction. If the asset group or asset
portfolio of disposal group shares the goodwill obtained in enterprise consolidation according to the Accounting
Standards for Business Enterprises No.8 – Impairment of Assets such disposal group shall include the goodwill
allocated to the disposal group.When the company measures initially or re-measures the non-current assets and disposal groups held for sale
on the balance sheet date if its book value is higher than the fair value minus the net amount after the sale
expenses the book value should be reduced to the net amount of fair value less costs to sell the amount to write-
down is recognized as asset impairment loss included in the current profit or loss and make the provision for
impairment of held-for-sale assets at the same time. For the disposal group the recognized asset impairment
losses firstly deducts the book value of goodwill in the disposal group and then proportionally deducts the book
value of all non-current assets in such disposal group as specified in the applicable measurement provisions of the
Accounting Standards for Business Enterprises No.42 - Held-for-sale Non-current Assets Disposal Team &
Discontinued Operations (hereinafter referred to as the “Held-for-sale Standards”). If the fair value of the disposal
group held for sale on the follow-up balance sheet day minus the net amount after the sale expense is increased
the amount of the previous write-down should be restored which is classified for holding the sale and reversed
within the amount of impairment loss of assets confirmed by the measurement of non-current assets as held for
sale. The reversed amount should be recorded in the current profit or loss and the book value of various non-
current assets should be increased according to the proportion stipulated as the standard held for sale in addition to
goodwill in the disposal group; the book value of the goodwill that has been written off and the confirmed
amount of impairment loss of assets of the non-current assets subject to the holding measurement criteria are not
allowed to be reversed before classified as held for sale. .Non-current assets held for sale or non-current assets in the disposal group are not subject to depreciation or
46Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
amortization. The interest and other expenses of the liabilities in the disposal group held for sale continue to be
confirmed.When the non-current asset or disposal group no longer meets the classification criteria for the held-for-sale
category the company should no longer classify it as a held-for-sale category or remove the non-current assets
from the disposal group held for sale. It is calculated as the lower of following two measures: (1) The book value
before classified as held for sale is the amount adjusted according to the depreciation amortization or impairment
that should be confirmed if it is assumed not to be classified as held for sale; (2) Recoverable amount.
(2) The standard for identifying and method for presenting discontinued operation
Discontinued operations refer to the integral part that meets one of the following conditions can be
separately classified has been disposed of or classified as held-for-sale category: (1) this integral part represents
an independent primary business or a separate major operating area; (2) this integral part is a part of related plan
intended for an independent primary business or a separate major operating area; (3) this integral part is a
subsidiary acquired solely for resale.The company presents relevant profits or losses of discontinued operation in the income statement and
discloses the impact of discontinued operation in the notes.
14. Long-term equity investment
The long-term equity investment in this part refers to the long-term equity investment that the company has
control joint control or significant influence on the invested entity. The long-term equity investments of which the
company does not have control joint control or significant impact on the investee company are accounted as
financial assets measured at fair value with changes included in current profits and losses if they belong to non-
transactional the company may choose to designate them as financial assets measured at fair value with changes
included in other comprehensive incomes at initial recognition for accounting and the accounting policy is shown
in Note III 10 “Financial instruments”.Joint control means that the company has common control over an arrangement in accordance with the
relevant agreement and the related activities of the arrangement must be agreed upon by the parties that share the
right of control. Significant influence means that the company has the power to participate in decision-making on
the financial and operating policies of the invested company but it cannot control or control jointly the
formulation of these policies together with other parties.
(1) Recognition of investment costs
For the long-term equity investment formed in the merger of enterprises under the common control it shall
on the date of merger regard the share of the book value of the shareholders’ equity of the merged enterprise in
the merger’s consolidated financial statement as the initial cost of the long-term-equity investment. The difference
between the initial cost of the long-term equity investment and the payment in cash non-cash assets transferred as
well as the book value of the debts borne by the merging party shall offset against the capital reserve. If capital
reserve is insufficient retain earnings shall be adjusted. In the case of issuance of equity securities as the merging
consideration the share of the book value of the shareholders’ equity of the merged party in the ultimate
controller's consolidated financial statements at the merged date should be taken as the initial investment cost of
the long-term equity investment; the difference between the total face value of the issued shares the initial
47Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
investment cost of the long-term equity investment and the total par value of the shares issued should be adjusted
for the capital reserve; if the capital reserve is insufficient to offset the retained earnings should be adjusted.Where the equity of the merged party under the same control is obtained through multiple transactions by steps to
ultimately form business combination under the same control the treatment shall be subject to whether it is a
“package deal”: in case of a “package deal” the accounting treatment is made on each transaction as a transaction
with control right. If they are not “package deal” the book value of consolidated party [shareholder’s
equity/owner’s equity] in the ultimate controller’s consolidated financial statement on the consolidation date is the
initial investment cost of long-term equity investment and capital reserve is adjusted as per the difference
between initial investment cost of long-term equity investment and the sum of long-term equity investment book
value prior to consolidation plus the book value of new consideration payment for further obtaining shares on the
consolidation date; if the capital reserve is insufficient to offset retained earnings shall be adjusted. The equity
investments held before the consolidation date due to using equity method of accounting or other comprehensive
incomes recognized as financial assets measured at fair value with changes included in other comprehensive
incomes are not accounted temporarily.For long-term equity investments acquired by business combinations under non common control the initial
cost of long-term equity investment is the merged cost on the purchase date. The merged costs include assets paid
by the purchaser liabilities incurred or assumed and the fair value of equity securities issued. Where the equity of
the purchased party is obtained through multiple transactions by steps to ultimately form business combination
under different control the treatment shall be subject to whether it is a “package deal”: in case of a “package deal”
the accounting treatment is made on each transaction as a transaction with control right. Where the deals do not
belong to a “package-deal” it shall regard the sum of the share of the book value of the owner’ s equity of the
merged enterprise and new investment costs as the initial cost of the long-term-equity investment that using cost
accounting method. Where the original held equity is accounted as the equity method the related comprehensive
income should not be accounted temporarily.Intermediary costs such as auditing legal services assessment and consulting etc. incurred by the combining
party or the purchaser for the business combination and the other management cost should be recorded in the
current profit or loss when incurred.Except the long-term equity investment formed by the business combination the other equity investment is
initially measured at the cost. Based on the different way that the long-term equity investment is obtained the cost
should be determined respectively such as the actual cash paid by the company the fair value of equity securities
issued by the company the value agreed in the investment contract or agreement the fair value or original book
value of the assets in the exchange transaction of non-monetary assets and the fair value of the long-term equity
investment. Relevant costs directly attributed to the long-term equity investment taxes and other necessary
expenditures shall be recorded into investment costs. In case of exerting significant impact on the investee
company due to additional investment or implementing joint control rather than constitute control the long-term
equity investment cost is the sum of fair value of original equity investment determined as per the Accounting
Standards for Business Enterprises No.22 – Recognition and Measurement of Financial Instruments and the
additional investment cost.
(2) Subsequent measurement and recognition of profit and loss
The long-term equity investment that has common control of the invested entity (except for constitutes a
48Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
common operator) or has significant influences shall be measured using equity method. In addition the
company's financial statements use the cost method to account for long-term equity investments that can control
the investee.i. Long-term equity investment accounted as cost method
When using the cost method the long-term equity investment is measured at the initial investment cost and
the cost of the long-term equity investment is adjusted when the investment is added or withdrawn. Except for the
actual payment for the investment or the cash dividend or profit included in the consideration that has been
announced but not yet issued the current investment income should be recognized in accordance with the cash
dividends or profits declared by the investee.ii. Long-term equity investment employing the equity method
Under equity method if the initial cost of a long-term equity investment is more than the investing enterprise’
s attributable share of the fair value of the invested entity’ s identifiable net assets for the investment the initial
cost of the long-term equity investment may not be adjusted; if the initial cost of long-term equity investment is
less than the investing enterprise’ s attributable share of the fair value of the invested entity’ s identifiable net
assets for the investment the difference shall be included in the current profit or loss and the cost of the long-term
equity investment shall be adjusted simultaneously.Under equity method according to the assumed share of net profit or loss and other comprehensive income
of the invested entity it shall separately recognize investment income and other comprehensive income and make
adjustment to the book value of the long-term equity investment; it shall calculate its share according to the profit
or cash dividend that the invested entity declares to distribute and reduce the book value of the long-term equity
value correspondingly; For other change in invested entity’ s equity except for net profit or loss other
comprehensive income and profit distribution it shall make adjustment to the book value of the long-term equity
investment and be accounted into capital reserves. When confirming the share of the net profits and losses of the
investee the net profits of the investee should be adjusted for confirmation based on the fair value of the
identifiable assets of the investee etc. at the time of acquisition. If the investee adopts the accounting policy and
the accounting period inconsistent with that of the company the financial statements of the investee should be
adjusted in accordance with the accounting policies and accounting periods of the company and the investment
income and other comprehensive income should be also confirmed. For transactions between the company and its
associated enterprise and joint ventures if the assets invested or sold do not constitute a business the unrealized
profits and losses of internal transactions are calculated based on the proportion the shares that are attributable to
the company are offset. On this basis confirm investment profit and loss. However if the unrealized internal
transaction losses incurred by the company and the invested entity belong to the impairment loss of the transferred
assets they should not be offset. If the assets invested by the company to joint venture or associate constitutes a
business if the investor obtains a long-term equity investment without the right of control the fair value of the
investment is used as the initial investment cost of the new long-term equity investment. The difference between
the initial investment cost and the book value of the investment business is fully accounted in the current profit or
loss. If the assets invested by the company to joint venture or associate constitutes a business the difference
between the consideration obtained and the book value of the business is fully recorded in the current profit or
loss. Where the company constitutes business by the assets purchased from associated enterprises and joint
ventures accounting treatment shall be conducted pursuant to the provisions of the Accounting Standards for
49Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Business Enterprises No.20 – Enterprise Consolidation and the gains or losses related to transactions are fully
recognized.When the net losses incurred by the invested entity are confirmed the book value of the long-term equity
investment and other actual long-term equity of net investment to the invested entity could be reduced to zero. In
addition if the company has the obligation to bear additional losses to the invested entity recognize the estimated
liabilities according to the expected obligations which is included in the current investment losses. For the net
profit realized by the invested entity in the subsequent period the company should resume the share of
unrecognized losses of its share of profits and then recover the amount of its share of profits.iii. Acquisition of minority shareholders’ interest
In preparation of consolidated financial statements the difference between the new long-term equity
investment obtained by purchasing minority shareholder’s interest and its attributable share in net assets of the
subsidiary continuously calculated from the acquisition date (or merger date) according to the new shareholding
ratio shall be accounted into capital reserves and if the capital reserves are insufficient retain earnings shall be
adjusted.iv. Disposal of long-term equity investment
In the consolidated financial statement if the parent company partially disposes the long-term equity
investment of subsidiary without losing the control right the difference between disposal price and net assets of
subsidiary corresponding with the disposal of long-term equity investment is charged to owner's equity; if the
parent company partially disposes the long-term equity investment of subsidiary resulting in losing control rightof subsidiary it is subject to relevant account policy specified in the Note III 6 (2) “Method for the preparation ofConsolidated Financial Statement”.For the disposal of long-term equity investment under other circumstances the difference between the book
value of the equity and the actually obtained price from the disposal of equity shall be recorded into current profit
or loss.For the long-term equity investment measurement under equity method the remaining equity after the
disposal shall still be measured using equity method when disposes of the long-term equity other comprehensive
income that has be accounted into shareholder’s equity shall be treated according to the relevant ratio on the
same basis on which the invested equity directly disposes of relevant assets or liabilities. The shareholders’ equity
recognized because of other change in invested entity’s equity except for net profit or loss other comprehensive
income and profit distribution shall be carried forward in proportion to current profit or loss.Where the long-term equity investment is measured using cost method and the remaining equity after the
disposal are still measured using cost method other comprehensive income that is recognized due to the
employment of equity method or financial instrument recognition and measurement criterion before the investing
entity obtains the control of the invested entity it shall conduct accounting treatment on the same basis on which
the invested equity directly disposes of relevant assets or liabilities and transfer in proportion the current profit or
loss; other equity change in the invested entity’s net assets except for net profit or loss other comprehensive
income and profit distribution that is recognized due to the employment equity method shall be carried forward in
proportion into current profit or loss.If the company disposes of part of the equity investment and loses control of the invested entity when the
individual financial statements are prepared if the remaining equity after disposal can exert joint control or
50Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
significant influence on the investee it should be calculated according to the equity method and the residual
equity is regarded as being adjusted as equity method when it is obtained; if the remaining equity after disposal
cannot exert joint control or significant influence on the invested entity it should be accounted in accordance with
the relevant provisions of the criteria for recognition and measurement of financial instruments. The difference
between the fair value on the date of loss of control and the book value is included in the current profit or loss.Before the company obtains control over the investee for the other comprehensive income recognized as equity
method or financial instrument recognition and measurement standard it is recorded with the basis that the
investee disposes of directly the related assets and liabilities when it loses control over the investee. The changes
in the other owners' equity as the equity method other than net profit or loss other comprehensive income and
profit distribution of the investee are transferred in the current profit or loss when it loses control over the investee.Among them if the remaining equity after disposal is accounted as the equity method other comprehensive
income and other owners' equity are transferred in proportion; if the residual equity after disposal is accounted as
according to the criteria for recognition and measurement of financial instruments other comprehensive income
and all other rights & interests are fully transferred.If the company disposes of part of the equity investment and loses the joint control or significant influence on
the investee the remaining equity after disposal should be calculated according to the criteria for confirmation and
measurement of financial instruments and the difference between the book value and the fair value on the date of
loss of joint control or significant influence is included in the current profit or loss. Other comprehensive income
that is recognized under equity method for former equity investment when the use of equity method is terminated
shall be treated on the same basis on which the invested equity directly disposes of relevant assets or liabilities;
the shareholder’ s equity recognized because of other change in invested entity’ s equity except for net profit or
loss other comprehensive income and profit distribution shall be carried forward completely to current profit or
loss when the use of equity method is terminated.The company disposes of the equity investment in the subsidiary company through multiple transactions step
by step until it loses control. If the above transaction belongs to a “package deal” the each transaction should be
accounted to dispose of the equity investment in the subsidiary and lose control. Before the loss of control for the
difference between the book value of the disposal equity corresponding to the long-term equity investment and
each disposal price it is at first recognized as other comprehensive income and then transferred to the current
profit or loss at the time of loss of control.
15. Investment real estate
Investment real estate refers to real estate held to earn rent or capital appreciation or both. Including land use
rights that have been leased land use rights that are held and prepared for transfer after appreciation buildings
that have been leased etc.Investment real estate is initially measured at cost. Subsequent expenditures related to investment real estate
should be included in the cost of investment real estate if the economic benefits associated with the asset are likely
to flow in and its cost can be reliably measured. Other subsequent expenditures are included in the current profits
and losses when occurring.The company adopts a cost model for subsequent measurement of investment real estate and depreciates or
amortizes in accordance with policies that are consistent with the use right of buildings or land.
51Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
For the details of impairment test method and withdrawal method of impairment provision of investment real
estate please refer to Note Ⅲ 20 “Long-term asset impairment”.When real estate for personal use or inventory is converted to investment real estate or investment real estate
is converted to real estate for personal use the book value before conversion is regarded as the recorded value
after conversion.When the use of investment real estate is changed to personal use the investment of real estate will be
converted to fixed assets or intangible assets from the date of change. When the use of real estate for personal use
is changed to earning rent or capital appreciation the fixed assets or intangible assets is converted to investment
real estate from the date of change. When conversion occurs for those are converted to the investment real estate
measured by the cost model the book value before conversion is regarded as the recorded value after conversion;
for those are converted to the investment real estate measured by fair value model fair value on the conversion
date is regarded as the value recorded after the conversion.When the investment real estate is disposed of or permanently withdrawn from use and it is expected that no
economic benefit can be obtained from its disposal the recognition of the investment real estate should be
terminated. The income from disposal of investment real estate sold transferred scrapped or damaged is deducted
for its book value and related tax expenses and charged to the current profit or loss.
16. Fixed assets
(1) Fixed asset confirmation conditions
The term “fixed assets” refers to the tangible assets that are held for the sake of producing commodities
rendering labor service renting or business management and their useful life is in excess of one fiscal year. No
fixed asset may be recognized unless the economic benefits pertinent to the fixed asset are likely to flow into the
company and the cost of the fixed asset can be measured reliably. Fixed assets are initially measured at cost and
taken into account the impact of the estimated cost of disposal.
(2) Depreciation methods of various fixed assets
From the next month after the fixed assets reach the scheduled usable condition the depreciation should be
made within the service life as the life-average method. The use life estimated net residual value and annual
depreciation rate of various types of fixed assets are as follows:
Category Depreciation year limit (years) Residual value rate (%) Yearly depreciation rate (%)
Permanent title land Indefinite period -- No depreciation
Houses and buildings 20~35 5 2.71~4.75
Machinery equipment 10 5 9.50
Transportation equipment 4~5 5 19.00~23.75
Electronics and other equipments 3~10 5 9.50~31.67
The expected net residual value is the amount that the company has currently reduced the estimated disposal
expenses from the disposal of the asset the estimated use life of the fixed asset is finished at the end of its useful
life.
(3) Impairment test method of fixed assets and withdrawal method of impairment provision
For the details of impairment test method and withdrawal method of impairment provision of fixed assets
please refer to Note Ⅲ 20 “Long-term Asset Impairment”.
52Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
(4) Other instructions
For the subsequent expenditures related to fixed assets if the economic benefits associated with the fixed
assets are likely to flow in and their costs can be reliably measured they are included in the cost of fixed assets
and the recognition of the book value of the replaced part is terminated. The other subsequent expenses are
included in the current profit or loss when incurred.The fixed assets are derecognized when the fixed assets are disposed or if no economic benefits are expected
to generate from the use or disposal. The difference between the disposal income of fixed assets sold transferred
scrapped or damaged after deducting their book value and related tax fees is included in the current profit or loss.The company reviews the use life estimated net residual value and depreciation method of fixed assets at
least at the end of the year and if any change it is recorded as a change in accounting estimates.
17. Construction in process
Company construction in progress is divided into two types of self-operated construction and outsourcing
construction. When construction in progress is completed and reaches the intended usable status fixed assets are
carried over. Criteria for judging intended usable status shall meet one of the following conditions: physical
construction (including installation) work of fixed assets has been fully completed or substantially fully completed;
trial production or trial operation has started and the results show that assets can run normally or produce
qualified products stably or the results of trial operation show that they can run or operate normally; the
expenditure amount on fixed assets of such construction is little or no longer occurring; the purchased and built
fixed assets have reached design or contract requirements or basically complied with design or contract
requirements.When the engineering in construction reaches the preset serviceable condition it shall be transferred to fixed
assets according to the actual cost of the engineering. Where reaching the intended usable status but not yet
completed final accounting first transfer in fixed assets as per the estimated value and then adjust original
tentative estimated value as per the actual cost after completion of final accounting but the originally accrued
depreciation is no longer adjusted.For details of the impairment test method and withdrawal method of impairment provision of
construction in progress please refer to Note Ⅲ 20 “Long-term asset impairment”.
18. Borrowing costs
The borrowing costs shall include interest on borrowings amortization of discounts or premiums on
borrowings ancillary expenses and exchange balance on foreign currency borrowings. The capitalization of
borrowing costs that can be directly attributable to the acquisition construction or production of assets that meet
the conditions for capitalization is started when the capital expenditure and borrowing costs have already been
incurred and the necessary acquisition construction or production activities in order to make the assets ready for
their intended use or sale have been started. The capitalization is stopped when the constructed or produced assets
that meet the conditions for capitalization reach a state of intended use or sale. The remaining borrowing costs are
recognized as expenses in the current period.The actual interest expenses of the special borrowings incurred in the current period should be capitalized
53Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
after subtracting the interest income earned by the unutilized borrowing funds from bank or the investment
income obtained from the temporary investment; the general borrowings should be determined for the amount of
capitalization as following the weighted average of asset expenditures that the accumulative assets expenditure
exceeds the special borrowings is multiplied by the capitalization rate of general borrowings. The capitalization
rate is determined on the basis of weighted average interest rate of the general borrowings.During the capitalization period the foreign exchange differences on foreign currency specific borrowings
should be capitalized; exchange differences on foreign currency general borrowings should be recorded in the
current profits and losses.Assets eligible for capitalization refer to the fixed assets that require a long period of time for acquisition
construction or production for use or sale investment real estate inventory etc.Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the
interruption period lasts for more than 3 months the capitalization of the borrowing costs shall be suspended till
the acquisition and construction or production of the asset restarts.Assets eligible for capitalization refer to the assets such as fixed assets investment real estate and inventories
that require a relatively long period of purchasing construction or production activities so as to achieve the
intended usable or salable status.
19. Intangible assets
(1) Intangible assets
Intangible assets are identifiable non-monetary assets that are owned or controlled by the company without
physical shape.Intangible assets are initially measured at cost. The expenditures related to intangible assets are included in
the costs of intangible assets if relevant economic benefits are likely to flow into the company and their costs can
be reliably measured. Expenditure for other items is included in the current profit or loss when incurred.Land use rights acquired are usually accounted as intangible assets. The plant and other buildings of self-
development and construction the related land use rights expenditures and building construction costs are
accounted as intangible assets and fixed assets respectively. For the purchased houses and buildings the relevant
price should be allocated between the land use rights and the buildings. If it is difficult to allocate them reasonably
all of them should be treated as fixed assets.Intangible assets with limited useful lives are amortized by the straight line staging average method over their
expected useful lives from the moment they are available for use less their estimated net residual value and the
accumulative amount of accrued impairment losses. Intangible assets with indefinite useful lives are not amortized.At the end of the period the useful life and amortization method of intangible assets with limited useful life
are reviewed if any change occurs they are treated as changes in accounting estimates. In addition the service
life of an intangible asset with an indefinite useful life is reviewed. If there is evidence that the period during
which the intangible asset brings economic benefits to the enterprise is predictable the service life of the
intangible asset is estimated and the intangible asset with a finite service life is amortized as the amortization
policy.
54Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
(2) Research & development expenditure
The expenditures of the company’s internal research and development projects are divided into research
phase expenditures and development phase expenditures.Expenditure for the research phase is included in the current profit or loss when incurred.The scope of classifying company R&D expenditure includes requisitioned materials manual and labor costs
of R&D amortization of R&D equipment amortization of other intangible assets and fixed assets used in the
development process water and electricity expenses etc.Company specific standard for dividing expenditures at the research stage and development stage of internal
R&D project:
The research stage refers to a stage of innovatively planned investigation and research activities in order to
acquire and understand new scientific or technical knowledge; the development stage refers to a stage of activities
applying research results or other knowledge to a plan or design before commercial production or use so as to
produce a new or substantially improved material device product etc.Expenditure in the development phase that satisfies the following conditions at the same time is recognized
as intangible assets. Expenditure at the development stage that does not satisfy the following conditions is
included in the current profit and loss:
i. It is technically feasible to complete the intangible asset so that it can be used or sold;
ii. It is intended to finish and use or sell the intangible assets;
iii. The ways in which intangible assets generate economic benefit includes the way that it can prove the
existence of the market of the products from the intangible assets or it can prove the existence of the market of
intangible assets itself. If intangible assets are used internally and it can prove their usefulness;
iv. Sufficient technical financial and other resources to support the development of the intangible assets and
the ability to use or sell the intangible assets;
v. Expenditure attributable to the development stage of the intangible asset can be reliably measured.The specific conditions for capitalizing expenditure during the company development phase:
If it is not possible to distinguish between research phase expenditures and development phase expenditures
all R&D expenditures incurred should be charged to the current profit or loss.
(3) Intangible asset impairment test method and impairment provision method
For details of the impairment test method and withdrawal method of impairment provision of intangible
assets please refer to Note Ⅲ 20 “Long-term asset impairment”.
20. Long-term asset impairment
For non-current non-financial assets such as fixed assets construction in progress intangible assets with
limited service life right-of-use asset investment real estate measured in cost mode and long-term equity
investments in subsidiaries associated enterprises joint ventures etc. the company should determine whether
there are signs of impairment on the balance sheet date. If there is any sign of impairment its recoverable amount
is estimated and the impairment test is conducted. For goodwill intangible assets with an indefinite useful life
and intangible assets that have not yet reached their usable status are tested for impairment annually irrespective
of whether there is any sign of impairment.
55Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
If the impairment test results indicate that the recoverable amount of the asset is less than its book value the
difference should be withdrawn and accounted as impairment loss. The recoverable amount is the higher of the
fair value of the assets minus the disposal expenses and the present value of the estimated future cash flow of the
assets. The fair value of the asset is determined on the basis of the price of the sales agreement in an arm's length
transaction. If there is no sales agreement but there is an active market for assets the fair value is determined on
the basis of the buyer’s bid for the asset; if there is no sales agreement and active asset market the most available
good information is based to estimate the fair value of asset. Disposal expenses include legal fees related to the
disposition of assets related taxes handling expenses and direct expenses incurred in bringing assets into a
saleable state. The present value of the expected future cash flow of the assets is determined by the amount of
discounted cash flow selected in accordance with the estimated future cash flow generated during the continuous
use and final disposal of the assets. The provision for impairment of assets is calculated and confirmed on the
basis of individual assets. If it is difficult to estimate the recoverable amount of a single asset the asset group to
which the asset belongs should be used to determine the recoverable amount of the asset group. Asset groups are
the smallest portfolio of assets that can generate cash inflows independently.For the goodwill separate listed in the financial statements the book value of goodwill is amortized to the
asset group or combination of asset groups that are expected to benefit from the synergies of the business
combination when assessing impairment. If the test result shows that the recoverable amount of an asset group or
a combination of asset groups which includes the goodwill that have been apportioned to is lower than its book
value it shall be recognized as the corresponding impairment loss. The amount of impairment loss is at first
written down against the book value of the goodwill allocated to the asset group or combination of asset groups
and then as the proportion to the book value of other assets other than goodwill in the asset group or combination
of asset groups it is used to write down the book value of other assets.Once any loss of the above asset impairment is recognized the value recoverable shall not be switched back
in the future accounting periods.
21. Long-term deferred expense
Long-term expenses to be apportioned are various expenses that have already occurred but they should be
burdened by the reporting period and subsequent periods with a time limit of more than one year. Corporate long-
term deferred expenses mainly include decoration and renovation expenses. Long-term expenses to be
apportioned are amortized on a straight-line basis over the expected benefit period.
22. Contract liabilities
Contract liabilities refer to corporate obligation of transferring commodities to customers for customer
consideration received or receivable. If customers have paid contract consideration or the company has obtained
unconditional right of receiving payment before the company transfers commodities to customers the company
presents such received amount or receivables as contract liabilities at the time of actual payment and payable in
due time by customers whichever is earlier. Contract assets and contract liabilities under the same contract are
presented in net amount and contract assets and contract liabilities under different contracts are not offset.
56Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
23. Staff salary
(1) Accounting treatment method for short-term remuneration
During the accounting period when employees provide service for the company the company recognizes the
actually incurred short-term remuneration as liabilities and records in the current profits and losses unless the
Accounting Standards for Business Enterprises otherwise requires or allows to record in the asset costs; the
incurred employee welfare expense is recorded in the current profits and losses or related asset costs according to
the actually incurred amount when actually incurred. If employee welfare expense is non-monetary welfare it is
measured at fair value; for medical insurance premium work injury insurance premium maternity insurance
premium other social insurance premiums and housing provident fund paid by the enterprise for employees as
well as trade union funding and employee education funding drawn as stipulated during the accounting period
when employees provide service for it the corresponding employee remuneration amount is calculated and
determined according to the prescribed accrual basis and accrual ratio and corresponding liabilities are
recognized and recorded in the current profits and losses or related asset costs.
(2) Accounting treatment method for post-employment welfare
The company categories the post-employment welfare plan as defined contribution plan and defined benefit
plan. Post-employment welfare plan refers to the agreement reached between the enterprise and employees on the
post-employment welfare or the rules or measures made by the enterprise to provide post-employment welfare to
employees. The defined contribution plan is the welfare plan after demission that the company assumes no further
payment responsibility after depositing fixed expenses into independent funds; the defined benefit plan is the
welfare plan after demission apart from defined contribution plan.
(3) Accounting treatment method for dismissal welfare
Prior to the expiration of the labor contract the company terminate the labor relations with employees or
propose compensation suggestions to encourage employees to accept voluntary redundancy. And it is recognized
as liabilities arising from the compensation due to termination of labor relationship with employees on an earlier
date between the company failing to unilaterally withdraw the plan of terminating labor relationship or layoff
suggestion and recognizing cost and expense concerning reorganization of dismissal welfare payment and
included in the current profits and losses at the same time. Staff internal retirement plan can be treated by the same
principle as the above termination benefits. The company will include the internally retired staff salary to be paid
from the date of staff ceasing providing service to the date of normal retirement and the paid social insurance
premium etc. into the current profits and losses (dismissal welfare) while meeting the criteria of recognizing
estimated liabilities.
(4) Accounting treatment method for other long-term employee welfares
The company also provides supplementary retirement benefits beyond the insurance system prescribed by the
state to employees who meet certain conditions. Such supplementary retirement benefit belongs to defined benefit
plan and the defined benefit liabilities recognized on the balance sheet are the present value of defined benefit
obligation minus the fair value of plan assets. The defined benefit obligation is calculated annually by independent
actuary using the treasury bond interest rate with period and currency similar to those of the obligation according
to the projected unit credit method. The service expenses concerning supplementary retirement benefit (including
57Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
current service costs past service costs and settlement gains or losses) and net interest are recorded in the current
profits and losses or related asset costs and the changes arising from re-measuring net liabilities or net assets of
defined benefit plan are included in other comprehensive income.
24. Estimated liabilities
The company recognizes obligation as estimated liability when the obligation arising from contingent
matters such as offering external guarantee litigation matters product quality assurance and loss contract has
become a current obligation of the company the performance of such obligation is likely to cause economic
benefits flowing out of the company and the amount of such obligation can be reliably measured.The company conducts initial measurement of estimated liabilities according to the best estimate of
expenditure required to fulfill relevant current obligations and reviews the book value of estimated liabilities on
the balance sheet date.If all or part of expenditures required for liquidation of estimated liabilities are expected to be compensated
by the third party when the compensation amount is basically determined to be receivable it is recognized
separately as asset and the recognized compensation amount does not exceed book value of the estimated
liabilities.
25. Share-based payment
(1) Accounting treatment method of share-based payment
Share-based payment is a transaction in which an enterprise grants equity instruments or undertakes equity-
instrument-based liabilities in return for services from employee or other parties. The share-based payments shall
consist of equity-settled share-based payments and cash-settled share-based payments.i. Equity-settled share-based payment
The equity-settled share-based payment in return for employee services shall be measured at the fair value of
the equity instruments granted to the employees. When the service in vesting period is completed or the specified
performance conditions are met for exercisable right based on the best estimate of the quantity of exercisable
right equity instruments in vesting period the fair value amount is included in relevant costs or expenses by
straight-line method calculation/in case of immediately exercising the right after granting it is included in relevant
costs or expenses on the grant date and capital reserve is increased accordingly.On each balance sheet date during the vesting period the company makes the best estimate based on the
latest information of exercisable right staff number change and other subsequent information and modifies the
expected number of exercisable right equity instruments. The impact of aforesaid estimates is included in the
current relevant costs or expenses and the capital reserve is adjusted accordingly.As for equity-settled share-based payment in exchange for other party’s service if the fair value of other
party’s service can be reliably measured it is measured as per the fair value of other party's service on the
acquisition date; if the fair value of other party’s service cannot be reliably measured but the fair value of equity
instruments can be reliably measured it is measured as per the fair value of equity instruments on the service
acquisition date and included in relevant cost or expense which increases the shareholder’s equity accordingly.ii. Cash-settled share-based payment
58Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
A cash-settled share-based payment shall be measured in accordance with the fair value of liability calculated
and confirmed based on the shares or other equity instruments undertaken by the enterprise. In case of
immediately exercising the right after granting it is included in relevant costs or expenses on the granting date
and liabilities are increased accordingly; if the right may not be exercised until the service in vesting period is
completed or the specified performance conditions are met on each balance sheet date within the vesting period
based on the best estimate of exercisable right status the service obtained in the current period shall be included in
costs or expenses as per the fair value of liabilities undertaken by the enterprise and liabilities are increased
accordingly.The company shall on each balance sheet date and on each account date prior to the settlement of the
relevant liabilities re-measure the fair values of the liabilities and include the changes in the current profits and
losses.
(2) Relevant accounting treatment of share-based payment plan modification and termination
When the company modifies the share-based payment plan if the modification increases the fair value of
granted equity instruments the increase of service is recognized according to increased fair value of equity
instruments. The increased fair value of equity instruments refers to the difference between fair value of equity
instruments on the modification date before and after the modification. If the modification reduces total fair value
of share-based payment or adopts other methods unfavorable to employees accounting treatment will
continuously be carried out on the obtained service and such change is deemed as never occurred unless the
company has canceled a part or all of the granted equity instruments.During the vesting period if the granted equity instruments are canceled the company makes acceleration of
exercisable right on the canceled and granted equity instruments the amount that shall be recognized in the
remaining vesting period will be immediately included in the current profits and losses and the capital reserve is
simultaneously recognized. If employees or other parties choose to meet non-vesting conditions but fails to meet
in the vesting period the company will treat it as cancellation of equity instruments.
(3) Accounting treatment of share-based payment transaction involving the company and its shareholders
or actual controllers
If share payment transaction between the company and corporate shareholders or actual controllers is
involved either settlement company or service-receiving company falls within corporate consolidation scope and
the other is beyond corporate consolidation scope accounting treatment is conducted in corporate consolidated
financial statements according to the following regulations.i. If the settlement enterprise settles by its own equity instruments the share-based payment transaction shall
be treated as equity-settled share-based payment; otherwise it is treated as cash-settled share-based payment.If the settlement enterprise is an investor of the service-accepting enterprise it shall recognize long-term
equity investment of the service-accepting enterprise as per fair value of equity instruments on the grant date or
fair value of liabilities borne and simultaneously recognize capital reserve (other capital reserves) or liabilities.ii. If the service-accepting enterprise has no settlement obligation or grants its own equity instruments to the
company employees such share-based payment transaction shall be treated as equity-settled share-based payment;
if the service-accepting enterprise has settlement obligation and does not grant its own equity instruments to the
company employees such share-based payment transaction shall be treated as cash-settled share-based payment.
59Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
For share-based payment transaction between enterprises within the scope of the merger of the enterprise if
the service-accepting enterprise and the settlement enterprise are not the same enterprise the recognition and
measurement of such share-based payment transaction is treated by the above principle in the respective
individual financial statement of the service-accepting enterprise and the settlement enterprise.
26. Preferred stock perpetual bond and other financial instruments
(1) Distinction between perpetual bond and preferred stock
The financial instruments issued by the company such as perpetual bond and preferred stock that meet the
following conditions are regarded as equity instruments:
i. Such financial instruments do not include contractual obligations to deliver cash or other financial assets to
the other party or exchange financial assets or financial liabilities with other parties under potentially adverse
conditions;
ii. If such financial instruments must or may be settled by using the company’s own equity instruments in the
future and if such financial instruments are non-derivative instruments they exclude the contractual obligations to
deliver variable number of own equity instruments for settlement; if they are derivative instruments the company
can only settle such financial instruments by exchanging fixed amount of cash or other financial assets with fixed
number of own equity instruments.Except for the financial instruments classified as equity instruments under the above conditions other
financial instruments issued by the company shall be classified as financial liabilities.If the financial instrument issued by the company is compound financial instrument it shall be recognized as
a liability as per the fair value of liability component and the amount after the actually received amount deducting
the fair value of liability component shall be recognized as “other equity instrument”. The transaction costs
incurred for issuing compound financial instrument are apportioned between liability component and equity
component as per their respective proportion to the total issuance price.
(2) Accounting method for perpetual bond and preferred stock
Financial instruments such as perpetual bonds and preferred stocks categorized as financial liabilities their
relevant interests dividends (or stock dividends) gains or losses as well as gains or losses arising from
redemption or refinancing etc except for the borrowing cost eligible for capitalization (see Note III 18
“Borrowing cost”) are included in the current profits and losses.For the financial instruments of perpetual bond preferred stock etc classified as equity instruments during
their issuance (including refinancing) repurchase sale or cancellation the company handles as equity changes
and related transaction costs are also deducted from equity. The company's distribution to holders of equity
instruments is regarded as profit distribution.The company does not recognize the fair value changes of equity instruments.
27. Income
When the contract between the company and customers meets the following conditions simultaneously
income is recognized when customers obtain relevant control right of commodity: all parties to the contract have
approved this contract and promised to perform their respective obligations; the contract has clarified the rights
60Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
and obligations of all parties to the contract pertaining to the transferred commodity or provided labor; the
contract has clear payment terms regarding the transferred commodity; the contract has commercial substance
namely the performance of this contract will change the company’s future cash flow risk time distribution or
amount; the consideration obtained by the company due to transferring commodity to customers is likely to be
recovered.On the contract start date the company identifies each individual performance obligation in the contract and
apportions the transaction price to each individual performance obligation as per the relative proportion of
separate selling price for the commodity promised by each individual performance obligation. When determining
transaction price the impact of factors are considered such as variable consideration major financing component
in the contract non-cash consideration and consideration payable to customers.For each individual performance obligation in the contract if one of the following conditions is met the
company recognizes the transaction price apportioned to this individual performance obligation as income during
relevant performance period according to the performance progress: customers obtain and consume the economic
benefits brought by the company’s performance while the company is performing contract; customers can control
the commodities in progress during performance of the company; the commodities produced during performance
of the company have irreplaceable application and the company has the right to charge funds on the part that has
completed performance so far during the entire contract period. The performance progress is determined by input
method according to the nature of the transferred commodity. When the performance progress cannot be
reasonably determined if corporate costs incurred are expected to be compensated income is recognized
according to the amount of costs incurred until performance progress can be reasonably determined.If one of the above conditions is not met the company recognizes income for the transaction price
apportioned to this individual performance obligation at the time when customers obtain relevant control right of
commodity. When judging whether customers have obtained commodity control right the company considers the
following signs: the company is entitled to current charging right for such commodity which means customers
have current payment obligation for such commodity; the company has transferred legal ownership of such
commodity to customers which means customers have held legal ownership of such commodity; the company has
transferred such commodity in kind to customers which means customers have occupied such commodity in kind;
the company has transferred main risk and reward on ownership of such commodity to customers which means
customers have obtained main risk and reward on ownership of such commodity; customers have accepted such
commodity; other signs indicating customers have obtained commodity control right.The point of time for recognizing domestic sales income of the company: The company delivers goods
according to the sales contract or order. On the reconciliation date agreed with the buyer it verifies the goods
received and inspected by the buyer during the period from the previous reconciliation date to the current
reconciliation date with the buyer. After verification by both parties the risk and reward are transferred to the
buyer the company issues invoice to the buyer according to the variety quantity and amount recognized by
reconciliation and the sales income is recognized as realized on the reconciliation date.The company recognizes revenue from overseas sales upon completion of customs clearance. Revenue is
recognized based on the export date specified on the export declaration form.
61Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
28. Contract costs
II. Contract costs are divided into performance costs and contract acquisition costs.III. The costs incurred by the company for performance of the contract are recognized an asset as the contract
performance costs when simultaneously meeting the following conditions:
(1) Such costs are directly related to a current or expected contract including direct labor direct material
manufacturing expense (or similar expense) cost explicitly borne by customers and other costs incurred solely
due to such contract.
(2) This cost increases enterprise resources to fulfill the contract performance obligation in the future;
(3) This cost is expected to be recovered.
IV. The incremental costs incurred by the company for acquisition of the contract that are expected to be
recovered are recognized an asset as the contract acquisition costs; however if the amortization of such asset does
not exceed one year it can be included in the current profits and losses at the time of occurrence.V. For assets related to contract costs they are amortized on the same basis as the income recognition of
goods or services related to such assets.VI. If the book value of assets related to contract cost is higher than the difference between the following two
items the company makes provision for impairment reserve on the excessive part and recognizes as asset
impairment losses:
(1) Remaining consideration expected to acquire due to the transfer of commodity or service related to such
assets;
(2) Costs estimated to incur for the transfer of such relevant commodity or service.
VII. If the above asset impairment reserve is subsequently reversed the book value of assets after reversal
shall not exceed the book value of such assets on the reversal date under the assumption that no impairment
provision is made.
29. Government subsidies
Government grants refer to monetary assets and non-monetary assets obtained by the company free from the
government excluding the capital invested by the government as investor and entitled to corresponding owner’s
equity. Government subsidies are divided into government subsidies related to assets and government subsides
related to benefits. The company defines the government grants obtained for construction or forming long-term
assets by other means as asset-related government grants; the other government grants are defined as revenue-
related government grants. If government document has not expressly specified the object of grants the grants
shall be divided into revenue-related government grants and asset-related government grants in the following
ways: (1) in case the government document has specified the specific target of grants divide according to the
relative ratio between expenditure amount of formed asset in the budget of such specific target and expenditure
amount included in the expense and such division ratio shall be reviewed on each balance sheet date and
modified when necessary; (2) if the government document only has general statement on the purpose of usage
rather than specify the specific target it is deemed as revenue-related government grants. If government grants are
monetary assets measure according to received or receivable amount. Government subsidies as non-monetary
62Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
assets shall be measured at fair value; if fair value can’t be obtained reliably it shall be measured at nominal
amount. Government grants measured at nominal amount are directly charged to current profits and losses.The company usually recognizes and measures government grants as per the paid-in amount when actually
received. Nevertheless in case of conclusive evidence at the end of period to show compliance with relevant
criteria of fiscal support policy provisions and expected receipt of fiscal support funds measure in accordance
with the amount receivable. Government grants measured at the amount receivable must concurrently satisfy all of
the following conditions: (1) The amount of the receivable grant is either officially confirmed through a document
issued by the competent government authority or is reasonably estimable by the entity in accordance with the
provisions of the formally issued a fiscal fund management regulation with no material uncertainty about the
estimated amount; (2) The grant eligibility is determined pursuant to a fiscal support program and its associated
fiscal fund management regulation that has been formally issued by the local finance authority and made publicly
available in compliance with the Regulations on Government Information Disclosure. The management regulation
must be inclusive (i.e. open to applications from any qualifying enterprise) and not specifically tailored to
particular enterprises. (3) The grant-related approval document explicitly specifies a disbursement schedule and
the disbursement is guaranteed by a corresponding fiscal budget allocation which thus provides reasonable
assurance that the funds will be received within the stipulated time limit. (4) Any additional conditions (if any)
that must be satisfied depending on the specific circumstances of the Company and the grant-related specifics.Asset-related government subsidy is recognized as deferred income and included in current profits and losses
within the service life of relevant asset in a reasonable and systematic manner. If the income-related government
subsidy is used to compensate for relevant costs or losses after the compensation period it is recognized as
deferred income and included in current profits and losses in the period of recognizing relevant costs or losses; if
it is used for compensating the incurred relevant costs or losses it is directly included in current profits and losses.The government grants that include both asset-related part and income-related part shall be accounted for
respectively by distinguishing the different parts; in case of difficult to distinguish they shall be classified as
revenue-related government grants as a whole.The government grants associated with the company's daily activities shall be charged to other revenue or
offset relevant costs according to the nature of economic business; the government grants that are unassociated
with daily activities are charged to non-operating income and expenditure.When the recognized government subsidy needs to be returned if there is relevant deferred income balance
the book balance of relevant deferred income is written off and the excessive part is included in current profits
and losses to adjust book value of assets; in other cases it is directly included in current profits and losses.
30. Deferred income tax assets/deferred income tax liabilities
Calculate and recognize deferred income tax assets or deferred income tax liabilities at the applicable tax rate
during the period for expected recovery of such assets or settlement of such liabilities according to the difference
between the book value of assets or liabilities and the tax basis (the difference between the tax basis and the book
number if tax basis can be determined according to the tax law regarding the item not recognized as asset and
liability).Deferred tax assets are recognized probably limited by the available taxable income tax amount for offsetting
the deductible temporary difference. On the balance sheet date if conclusive evidence indicates that it is likely to
63Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
obtain sufficient taxable income in future periods to offset deductible temporary differences the deferred income
tax assets unrecognized in previous accounting periods are recognized.On the balance sheet date the book value of deferred income tax assets is reviewed; if it is likely not to
obtain sufficient taxable income to offset the benefits of deferred income tax assets in the future the book value of
deferred income tax assets shall be written off. Reverse the written-down amount when it is likely to obtain
sufficient taxable income.The current income tax and deferred income tax of the company are included in the current profits or losses
as income tax expense or revenue but excluding the income tax arising from the following circumstances:
consolidation of enterprises; trade or event recognized directly in the owner’s equity.When having legitimate right of net settlement and intending to execute net settlement or concurrently
obtaining assets and settling liabilities the company’s current income tax assets and current income tax liabilities
shall be reported at the net amount after offsetting.
31. Leasing
(1) The company acts as a lessee
The types of corporate leasing assets are mainly houses and buildings.On the lease start date the company recognizes right-of-use assets and lease liabilities for the lease other than
short-term lease and low-value asset lease and recognizes depreciation expense and interest expense respectively
during the lease term.The company includes the lease payment of short-term lease and low-value asset lease into the current
expenses using the straight-line method during each period of the lease term.i. Right-of-use assets
Right-of-use assets refer to the lessee’s right to use the lease assets during the lease term. On the lease start
date the right-of-use assets shall be initially measured at cost. The costs include:* initial measurement amount
of leasing liabilities;* where lease incentive exists in the lease payment paid on or before the lease start date
deduct relevant amount of lease incentive already entitled;* initial direct expense incurred by the lessee;* the
costs estimated to incur by the lessee for dismantling and removing leasing assets restoring the site where leasing
assets are located or recovering leasing assets to the state agreed in lease clauses.The depreciation of company right-of-use assets is accrued on a straight-line basis. If it can be reasonably
determined that the ownership of lease assets will be obtained at the expiration of the lease term make provision
for depreciation within the estimated remaining useful life of the lease assets; if it cannot be reasonably
determined that the ownership of lease assets will be obtained at the expiration of the lease term make provision
for depreciation during the shorter of the lease term and the remaining service life of the lease assets.The company determines whether the right-of-use assets have been impaired and makes accounting treatment
in accordance with relevant provisions in Accounting Standards for Business Enterprises No.8——Asset
Impairment.ii. Lease liabilities
Leasing liabilities shall be initially measured at present value of lease payment not yet paid at the lease term
start date. The lease payment includes:* fixed payment (including actual fixed payment) if there exists lease
64Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
incentive deduct relevant amount of lease incentive;* variable lease payment depending on the index or ratio;
* payables estimated according to the guarantee balance provided by the lessee;* exercise price of purchase
option provided that the lessee reasonably determines that this option will be exercised;* payables to exercise
the lease termination option provided that the lease term indicates that the lessee will exercise the lease
termination option;
The company adopts interest rate implicit in lease as the discount rate; where interest rate implicit in lease
cannot be determined the company adopts incremental borrowing rate as the discount rate. The company
calculates the interest expense of lease liabilities during each period of the lease term at a fixed periodic interest
rate and includes it in the finance expense. This periodic rate refers to the discount rate or revised discount rate
adopted by the company.Variable lease payments excluded from measurement of lease liabilities are included in current profits and
losses at the time of actual occurrence.When the company changes the evaluation result of renewal option lease termination option or purchase
option re-measure the lease liabilities according to the present value calculated as per the changed lease payment
and revised discount rate and adjust the book value of right-of-use assets accordingly. When the actual lease
payment estimated payables of guarantee balance or variable lease payment depending on index or ratio is
changed re-measure the lease liabilities at the present value calculated as per the changed lease payment and
original discount rate and adjust the book value of right-of-use assets accordingly.iii. Short-term lease and low-value asset lease
For short-term lease (lease with a lease term of no more than 12 months on the lease start date) and low-value
asset (with a value of less than RMB 2000) lease the company follows a simplified treatment method without
recognizing right-of-use assets and leasing liabilities but it records the lease payment during each period of the
lease term in the related asset costs or the current gains and losses using the straight-line method or other
systematic reasonable methods.
(2) The company acts as a lessor
i. Operating leasing
The company adopts the straight-line method to recognize lease receipts from operating lease as the rental
income for each period of the lease term. Variable lease payment amount related to operating lease and excluded
from the lease receipt amount is recorded in current profits and losses when it actually occurs.ii. Financial leasing
On the lease start date the company recognizes financial lease receivables and de-recognizes financial lease
assets. Financial lease receivables are initially measured by net lease investment (the sum of unguaranteed
residual value and present value of lease payment amount not yet received on the lease start date discounted at the
interest rate implicit in lease) and interest income during the lease term is calculated and recognized as per fixed
periodic rate. Variable lease payment amount obtained by the company and excluded from the measurement of net
lease investment is recorded in current profits and losses when it actually occurs.
65Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
32. Method for determining materiality thresholds and the basis for selection
Disclosure items related to the criteria for
materiality judgments Method for determining materiality thresholds and the basis for selection
Important prepayments with aging of over 1 Prepayments with single aging of over 1 year accounting for more than 10% of the total
year prepaid amount and the amount greater than RMB 15000000
Important construction in progress Budget of single project greater than RMB 80000000
Important accounts payable with aging of Accounts payable with single aging of over 1 year accounting for more than 10% of the
over 1 year total accounts payable and the amount greater than RMB 80000000
Other important payables with aging of over Other payables with single aging of over 1 year accounting for more than 10% of the
1 year total other payables and the amount greater than RMB 15000000
Important contract liabilities with aging of Contract liabilities with single aging of over 1 year accounting for more than 10% of
over 1 year the total contract liabilities and the amount greater than RMB 15000000
Subsidiary’s net assets accounting for more than 5% of the consolidated statement net
Important non-wholly owned subsidiaries assets or subsidiary’s net profits accounting for more than 10% of the consolidated
statement net profits
Single investee company’s long-term equity investment book value accounting for
Important joint ventures or associated more than 5% of consolidated statement net assets with the amount greater than RMB
enterprises 1000000000 or investment profits and losses under the long-term equity investmentequity method accounting for more than 10% of consolidated statement net profits with
the amount greater than RMB 100000000
33. Other important accounting policies and accounting estimates
In the process of applying accounting policies due to internal uncertainties of operating activities the
company needs to make judgments estimates and assumptions on the book value of report items that cannot be
accurately measured. These judgments estimates and assumptions are made based on past experience of the
company executives and considering other relevant factors. These judgments estimates and assumptions affect
the reporting amount of incomes expenses assets and liabilities as well as disclosure of contingent liabilities on
the balance sheet date. Nevertheless the actual results caused by uncertainties of these estimates may be different
from current estimates of the company executives and further cause significant adjustment on the book value of
affected assets or liabilities in the future.The company conducts periodic review on the foregoing judgments estimates and assumptions on the basis
of continuous operation; if changes in accounting estimates only affect the current period of changes the affected
amount shall be recognized in the current period of changes; if it affects both current period of changes and future
period the affected amount shall be recognized in the current period of changes and future period.On the balance sheet date important areas for the company’s judgments estimates and assumptions on
financial statement item amount are as follows:
(1) Provision for bad debts
When the company adopts the expected credit loss model to evaluate impairment of financial instruments
the application of expected credit loss model requires major judgments and estimates and all reasonable and
reference information must be considered including forward-looking information. When making such judgments
and estimates the company infers the expected changes in the debtor’s credit risk according to historical
repayment data combined with economic policies macroeconomic indicators industry risks and other factors.
(2) Inventory falling price reserves
The company measures as per the lower of cost and net realizable value and makes provision for inventory
devaluation to the obsolete and unsalable inventory of which the cost exceeds the net realizable value according
66Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
to inventory accounting policy. The inventory devaluation to net realizable value is based on assessing the
saleability of inventory and its net realizable value. To identify inventory devaluation requires judgments and
estimates of executives based on obtaining conclusive evidence and considering the purpose of holding inventory
influence of events after balance sheet date and other factors. The difference between actual result and original
estimate will affect the book value of inventory as well as the reversal or accrued provision for inventory
devaluation during the period of estimates changed.
(3) Impairment reserve of non-financial non-current assets
The company judges if there is possible sign of impairment on the non-current assets other than financial
assets on the balance sheet date. For intangible assets with uncertain service life in addition to annual impairment
test when there is sign of impairment impairment test shall be conducted as well. If there is indication showing
that the carrying amount is not retrieved non-liquid assets apart from financial assets shall be provided with
impairment testing.When the book value of asset or asset group is higher than the recoverable amount which is the higher of net
amount after fair value deducting disposal expense and present value of estimated future cash flow it indicates
occurrence of impairment.The net amount of fair value deducting disposal expense is determined by reducing the incremental cost that
can be directly attributed to such asset disposal with reference to sales agreement price of similar assets in fair
trade or observable market price.When estimating the present value of future cash flow major judgments are required on the asset (or asset
group) output selling price related operating cost discount rate used when calculating the present value etc.When estimating recoverable amount the company may use all relevant information available including forecasts
of output selling price and related operating cost which are made based on reasonable and supportable
assumptions.The company tests whether goodwill is impaired at least every year. This requires estimation on the present
value of future cash flow of asset group or asset group portfolio with goodwill allocated. When estimating the
present value of future cash flow the company needs to estimate the future cash flow generated by asset group or
asset group portfolio and concurrently select appropriate discount rate to determine the present value of future
cash flow.
(4) Depreciation and amortization
After considering the residue value of investing real estate fixed assets and intangible assets the company
uses straight line method for depreciation and amortization provision in the service life. The company regularly
reviews the service life to determine the amount of depreciation and amortization expenses included in each
reporting period. The service life is determined by the company based on past experience of similar assets and
combined with expected technical updates. In case of significant change in previous estimates the depreciation
and amortization expenses will be adjusted in the future.
(5) The fair value of financial instruments
For financial instruments without available quotation on active trading market fair value shall be determined
by the valuation techniques. Valuation techniques include using the latest trading information on the market the
discounted cash flow method and option pricing model etc. The company has established a set of workflow
67Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
ensuring that qualified personnel are responsible for the fair value calculation verification and review work. The
valuation model used by the company is made with market information as much as possible and unique
information of the company as little as possible. It is noteworthy that some of the information used in the
valuation model needs estimation by the management (e.g. discount rate target exchange rate volatility etc.). The
company regularly reviews the above estimates and assumptions and makes adjustment when necessary.
(6) Income tax
In normal operating activities of the company final tax treatment and calculation of some transactions have
certain uncertainties. Whether some items can be listed as pre-tax shall gain approval of the tax authority. If there
is difference between the final recognized result of these taxation matters and the originally estimated amount
such difference will have an impact on the current income tax and deferred income tax during the period of final
recognition.
34. Changes in significant accounting policies and accounting estimates
(1) Important accounting policy changes
No.
(2) Changes in significant accounting estimates
No.IV. Tax items
1. Main tax categories and tax rates
Tax categories Tax calculation basis Specific tax rate
The output tax is calculated based on taxable
income and VAT is calculated and paid
Value added tax according to the difference after deducting the 13% 9% 6% 25% (IRD Denmark) 22% (VHIO
deductible input tax amount of the current Italy) 21% (Borit Belgium) levy rate 5%
period.Urban maintenance and
construction tax Turnover tax payable 7% 5%
Education surcharge Turnover tax payable 5%
Enterprise income tax Income tax payable 15% 20% 21% 22% 25% 24%+ regional tax 3.9%
Description on taxpayers with different enterprise income tax rates:
Name of taxpayer Income tax rate
The company Weifu Jinning Weifu Lida Weifu Tianli Weifu Mashan Weifu Autocam Weifu
Shimite Weifu Lida (Chongqing) Weifu Autosmart Weifu Chang’an 15%
Weifu Lida (Wuhan) 20%
IRD USA Borit USA 21%
IRD (Denmark) 22%
Weifu International Trade Weifu Electric Drive Weifu Qinglong Yiwo Auto Weifu Lida
(Nanchang) Weifu Intelligent Sensor Weifu Lianhua Borit (Belgium) Weifu Yite Weifu 25%
Baolong
VHIO (Italy) 24% + regional tax 3.9%
68Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
2. Tax benefit and approval document
The company Weifu Jinning Weifu Lida Weifu Tianli and Weifu Mashan passed high-tech enterprise
accreditation in 2023 entitled to 15% preferential income tax rate from 1 January 2023 to 31 December 2025.Weifu Autosmart was accredited as a high-tech enterprise in 2024 and entitled to 15% preferential income tax rate
from 1 January 2024 to 31 December 2026. Weifu Autocam was accredited as a high-tech enterprise in 2024 and
entitled to 15% preferential income tax rate from 1 January 2024 to 31 December 2026. Weifu Shimite and Weifu
Chang’an were accredited as high-tech enterprises in 2025 and entitled to 15% preferential income tax rate from
1 January 2025 to 31 December 2027.
According to Announcement on Continuation of Income Tax Policy for Western Development Enterprises
2020 No.23 of the Ministry of Finance State Taxation Administration and National Development and Reform
Commission from 1 January 2021 to 31 December 2030 for the enterprises located in the western region with
industrial items specified in Catalogue of Encouraged Industries in the Western Region as their main business and
main business income accounting for more than 60% of the total enterprise income enterprise income tax shall be
levied at a reduced rate of 15%. Weifu Lida (Chongqing) is subject to a preferential income tax rate of 15% in
2025.
According to Announcement on Relevant Tax Policy to Further Support the Development of Small-sized
Micro-profit Enterprises and Individual Industrial and Commercial Households (Ministry of Finance and State
Taxation Administration Announcement 2023 No.12) the taxable income shall be calculated at a reduced rate of
25% for small-sized micro-profit enterprises with company income tax policy subject to a tax rate of 20% which
shall continue implementation until 31 December 2027. Weifu Lida (Wuhan) met the criteria for small-sized
micro-profit enterprise in 2025 and was entitled to the above tax preference.V. Notes on consolidated financial statement items
Unless otherwise specified in the following items of notes (including notes on main items of company
financial statement) “end of period” refers to 31 December 2025 “end of last year” refers to 31 December 2024
“current period” refers to the year 2025 and “last period” refers to the year 2024.
1. Monetary fund
Items Closing balance Balance at the end of last year
Cash on hand 8403.89 5360.59
Bank savings 2269214635.09 2217667887.48
Other monetary funds 89627273.49 28927203.45
Total 2358850312.47 2246600451.52
Of which: Total amount due from overseas 101759199.50 153019429.47
Other descriptions: The closing balance of other monetary funds included large-denomination pledged
certificates of deposit of RMB 60412602.74 bank acceptance bill security deposit of RMB 20188696.29
Mastercard security deposit of RMB 152.85 letter of guarantee security deposit of RMB 273032.92 IRD
performance security deposit of RMB 8291872.97 and third-party payment account balance of RMB 460915.72.
69Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
2. Trading financial assets
Items Closing balance Balance at the end of last year
Financial assets at fair value and through current profit or loss 2334658155.36 1429682635.57
Of which: Listed company shares 888391.56 10501800.00
Bank wealth management products 2017206116.57 554713511.24
Otherswealth management products 316563647.23 864467324.33
Total 2334658155.36 1429682635.57
3. Bills receivable
(1) List of bills receivable
Items Closing balance Balance at the end of last year
Bank acceptance bill -- --
Commercial acceptance bill 93133355.40 99914699.81
Total 93133355.40 99914699.81
(2) Classified and presented by bad debt provision method
Closing balance
Category Book balance Bad debt reserve
Book value
Amount Proportion (%) Amount Accrual ratio(%)
Bills receivable with provision for bad
debts made by combination 93133355.40 100.00 -- -- 93133355.40
Of which: Bank acceptance bill -- -- -- -- --
Commercial acceptance bill 93133355.40 100.00 -- -- 93133355.40
Total 93133355.40 100.00 -- -- 93133355.40
(Continued)
Opening balance
Category Book balance Bad debt reserve
Book value
Amount Proportion (%) Amount Accrual ratio(%)
Bills receivable with provision for bad
debts made by combination 99914699.81 100.00 -- -- 99914699.81
Of which: Bank acceptance bill -- -- -- -- --
Commercial acceptance bill 99914699.81 100.00 -- -- 99914699.81
Total 99914699.81 100.00 -- -- 99914699.81
(3) Pledged notes receivable at the end of period
No.
(4) Notes receivable which was endorsed or discounted and undue on balance sheet date at the end of the
period.Items Ending derecognition amount Ending non-derecognition amount
Bank acceptance bill -- --
Commercial acceptance bill -- 6228142.15
Total -- 6228142.15
(5) Notes converted to accounts receivable due to the drawer’s failure to perform the agreement at the end
of period
No.
70Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
4. Accounts receivable
(1) Disclosure by age
Aging Closing balance Balance at the end of last year
Within a year 4334268607.72 3729236009.53
Of which: Within six months 4253883964.14 3641532161.27
Six months to one year 80384643.58 87703848.26
One to two years 16753416.84 15814370.53
Two to three years 9069061.73 12232320.70
More than three years 26951657.03 21845527.28
Subtotal 4387042743.32 3779128228.04
Less: Bad debt provision 45979564.85 41474335.01
Total 4341063178.47 3737653893.03
(2) Classified and presented by bad debt provision method
Closing balance
Category Book balance Bad debt reserve
Proportion Accrual ratio Book valueAmount (%) Amount (%)
Accounts receivable with single
provision for bad debt reserve 22742112.36 0.52 22231606.13 97.76 510506.23
Accounts receivable for which bad debt
provision has been assessed by portfolios 4364300630.96 99.48 23747958.72 0.54 4340552672.24
Total 4387042743.32 100.00 45979564.85 —— 4341063178.47
(Continued)
Balance at the end of last year
Category Book balance Bad debt reserve
Book value
Amount Proportion Accrual(%) Amount ratio (%)
Accounts receivable with single provision
for bad debt reserve 17072318.27 0.45 17072318.27 100.00 --
Accounts receivable for which bad debt
provision has been assessed by portfolios 3762055909.77 99.55 24402016.74 0.65 3737653893.03
Total 3779128228.04 100.00 41474335.01 —— 3737653893.03
i. Accounts receivable with single provision for bad debt reserve at the end of period:
Closing balance
Accounts receivable (by entity)
Book balance Bad debt reserve Accrual ratio(%) Accrual basis
Linyi Zhongtai Automotive Parts Manufacturing
Co. Ltd. 6193466.77 6193466.77 100.00
Forecast as difficult to
recover
100.00 Forecast as difficult toBrilliance Auto Group Holding Co. Ltd. 3337118.71 3337118.71 recover
Shaanxi Wanfang Automotive Parts Co. Ltd. 2198973.18 2198973.18 100.00 Forecast as difficult torecover
SAIC Hongyan Automobile Co. Ltd. 98.96 Forecast as difficult to1883372.36 1863738.32 recover
Dongfeng Chaoyang Chaochai Power Co. Ltd. 1823262.64 1823262.64 100.00 Forecast as difficult torecover
Nedstack Fuel Cell Technology BV Forecast as difficult to1460456.57 1460456.57 100.00 recover
Lovol Tianjin Engines Co. Ltd. Forecast as difficult to1018054.89 1018054.89 100.00 recover
Other customers Forecast as difficult to4827407.24 4336535.05 89.83 recover
Total 22742112.36 22231606.13 —— ——
71Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
VIII. (Continued)
Opening balance
Accounts receivable (by entity)
Book balance Bad debt reserve Accrual ratio(%) Accrual basis
Linyi Zhongtai Automotive Parts Manufacturing
Co. Ltd. 6193466.77 6193466.77 100.00
Forecast as difficult to
recover
Brilliance Auto Group Holding Co. Ltd. 2693280.39 2693280.39 100.00 Forecast as difficult torecover
SAIC Hongyan Automobile Co. Ltd. 2297240.06 2297240.06 100.00 Forecast as difficult torecover
Dongfeng Chaoyang Chaochai Power Co. Ltd. 1823262.64 1823262.64 100.00 Forecast as difficult torecover
Lovol Tianjin Engines Co. Ltd. 1018054.89 1018054.89 100.00 Forecast as difficult torecover
Other customers 3047013.52 3047013.52 100.00 Forecast as difficult torecover
Total 17072318.27 17072318.27 —— ——
ii. Accounts receivable for which bad debt provision has been assessed by portfolios:
Closing balance
Aging
Book balance Bad debt reserve Accrual ratio (%)
Within six months 4253616904.39 -- --
Six months to one year 77567514.76 7756751.46 10.00
One to two years 15640849.20 3128169.88 20.00
Two to three years 7687208.71 3074883.49 40.00
More than three years 9788153.90 9788153.89 100.00
Total 4364300630.96 23747958.72 0.54
(Continued)
Balance at the end of last year
Aging
Book balance Bad debt reserve Accrual ratio (%)
Within six months 3640596534.97 -- --
Six months to one year 87407080.86 8740708.09 10.00
One to two years 14549657.71 2909932.32 20.00
Two to three years 11252099.78 4500839.88 40.00
More than three years 8250536.45 8250536.45 100.00
Total 3762055909.77 24402016.74 0.65
iii. In the portfolio there were no accounts receivable with provision for bad debts by other methods.
(3) Bad debt reserve status
Amount of changes in current period
Category Balance at the end Provision Recovery or Write-off or write- Conversion ofof last year Closing balancereversal off after foreign currency
verification statement
Single
provision 17072318.27 5193036.39 -250477.21 519472.69 235246.95 22231606.13
Portfolio
provision 24402016.74 -- 638824.45 66166.87 50933.30 23747958.72
Total 41474335.01 5193036.39 388347.24 585639.56 286180.25 45979564.85
Description: Significant recovery or reversal amount of bad debt reserve in the current period: No.
(4) Receivables actually written-off in the current period
Items Write-off amount
Accounts receivable actually written off 585639.56
Descriptions: No significant accounts receivable write-off in the current period.
72Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
(5) Accounts receivable of the Top 5 closing balance classified by the overdue party
Proportion to the total closing
Name of debtors Closing balance of receivables balance of accounts receivable Closing balance of
(%) allowance for bad debts
Bosch Powertrain 837818105.83 19.10 5540525.12
German Bosch 719908284.79 16.41 1160786.70
Customer 2 297345450.59 6.78 481.47
Customer 1 252396372.29 5.75 1063529.76
Customer 3 184529149.43 4.21 82754.91
Total 2291997362.93 52.25 7848077.96
5. Receivables financing
(1) Financing of receivables
Items Closing balance Balance at the end of last year
Bills receivable 1861919025.73 1713187182.25
Of which: Bank acceptance bill 1861919025.73 1713187182.25
Total 1861919025.73 1713187182.25
(2) Financing of receivables pledged at the end of period
Items Pledged amount at the end of period
Bank acceptance bill 408648804.25
Total 408648804.25
(3) Financing of receivables endorsed or discounted but not yet mature on the balance sheet date at the end
of period
Items Ending derecognition amount Ending non-derecognition amount
Bank acceptance bill 466919579.02 --
Total 466919579.02 --
6. Advance payment
(1) Advance payment is listed by age
Closing balance Balance at the end of last year
Aging
Amount Proportion (%) Amount Proportion (%)
Within a year 98012846.59 98.51 87178436.38 93.45
One to two years 1181857.84 1.19 2329391.28 2.50
Two to three years 296620.00 0.30 3468224.73 3.72
More than three years 1635.12 0.00 307414.10 0.33
Total 99492959.55 100.00 93283466.49 100.00
(2) Advance payment of Top 5 closing balance classified by advance payment objects
Name of company Closing balance Proportion to the total closing balance ofadvance payments (%)
German Bosch 13992553.66 14.06
Dongbei Special Steel Group Co. Ltd. 13152032.72 13.22
Wuxi Ling’en Electromechanical Equipment Co. Ltd. 12126000.00 12.19
State Grid Jiangsu Electric Power Co. Ltd. 10603491.07 10.66
Shenzhen Jinminjiang Intelligent Equipment Co. Ltd. 8100000.00 8.14
Total 57974077.45 58.27
73Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
7. Other receivables
Items Closing balance Balance at the end of last year
Interests receivable -- --
Dividends receivable 5357758.49 5357758.49
Other receivables 77623089.75 925171249.08
Total 82980848.24 930529007.57
(1) Dividends receivable
Invested entity Closing balance Balance at the end of last year
Wuxi Weifu Precision Machinery Manufacturing Co.Ltd. 5357758.49 5357758.49
Total 5357758.49 5357758.49
(2) Other receivables
Disclosure by age
Aging Closing balance Balance at the end of last year
Within a year 16389752.66 25570895.82
One to two years 2658174.54 353994.58
Two to three years 380706.22 2544811701.19
More than three years 2045106282.98 4320762.08
Subtotal 2064534916.40 2575057353.67
Less: Bad debt provision 1986911826.65 1649886104.59
Total 77623089.75 925171249.08
Classification by fund nature
Nature of funds Period-end book balance Book balance at the end of lastyear
Corporate current accounts 645071.02 7013631.68
Cash pledge and guarantee deposit 11950266.49 10540482.23
Employee borrowings and reserve funds 240006.80 384928.19
Social insurance and housing provident fund paid on behalf 13442906.73 13024199.29
Weifu International Trade “platform trade” business portfolio 2038255787.68 2542263370.70
Others 877.68 1830741.58
Subtotal 2064534916.40 2575057353.67
Less: Bad debt provision 1986911826.65 1649886104.59
Total 77623089.75 925171249.08
Provision for bad debt reserve
Phase I Phase II Phase III
Expected credit Expected credit losses Expected credit lossesBad debt reserve
losses in the next 12 throughout existence throughout existence
Total
months period (no credit period (credit impairmentimpairment occurred) occurred)
Balance at the end of last year 5786049.86 -- 1644100054.73 1649886104.59
Book balance of other
receivables at the end of last -- -- -- --
year is in the current period:
——Transfer in Phase II -- -- -- --
——Transfer in Phase III -- -- -- --
——Transfer back to Phase II -- -- -- --
——Transfer back to Phase I -- -- -- --
Provision in the current period 1749549.39 -- 335092051.77 336841601.16
Reversal in the current period -- -- -- --
Write-off in current period -- -- -- --
74Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Phase I Phase II Phase III
Bad debt reserve Expected credit
Expected credit losses Expected credit losses
losses in the next 12 throughout existence throughout existence
Total
months period (no credit period (credit impairmentimpairment occurred) occurred)
Write-off in the current period 3261.39 -- -- 3261.39
Other changes 187382.29 -- -- 187382.29
Closing balance 7719720.15 -- 1979192106.50 1986911826.65
Bad debt reserve status
Amount of changes in current period
Category Balance at the end of Recovery or Write-off or
Conversion of
last year foreign Closing balanceProvision reversal write-off afterverification currencystatement
Bad debt
reserve 1649886104.59 336841601.16 -- 3261.39 187382.29 1986911826.65
Total 1649886104.59 336841601.16 -- 3261.39 187382.29 1986911826.65
Other receivables actually written-off in this period
Items Write-off amount
Other receivables actually written off 3261.39
Other receivables of Top 5 closing balance classified by debtors
Proportion to total
Name of company Nature of funds Closing balance Aging closing balance of Bad debt reserveother receivables Closing balance
(%)
Weifu International Trade See other
“platform trade” business portfolio descriptions 2038255787.68 Over 3 years 98.73 1979160379.70
Wuxi CR Gas Co. Ltd. Deposit 1353500.00 Over 3 years 0.07 1353500.00
Within 1 year
Wuxi Xingzhou Industrial Park Deposit 1138741.21 2-3 yearsDevelopment Co. Ltd. more than 3 0.06 710923.98
years
Wuxi Xingzhou Energy Within 1 year
Development Co. Ltd. Deposit 1045373.12 more than 3 0.05 903042.26years
Wuxi Chenyang Construction
Equipment Leasing Co. Ltd. Deposit 1000000.00 Within 1 year 0.05 100000.00
Total —— 2042793402.01 —— 98.96 1982227845.94
Other descriptions: For details on Weifu International Trade “platform trade” business portfolio refer to the
description in Note XV 7 “Other important transactions and events affecting investor decision-making”.
8. Inventory
(1) Inventory classification
Closing balance
Items
Book balance Inventory falling price reserves Book value
Raw materials 583093953.74 100756472.59 482337481.15
Unfinished products 558452738.49 30798354.66 527654383.83
Finished products 1579852880.89 131709756.97 1448143123.92
Total 2721399573.12 263264584.22 2458134988.90
(Continued)
Balance at the end of last year
Items
Book balance Inventory falling price reserves Book value
75Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Balance at the end of last year
Items
Book balance Inventory falling price reserves Book value
Raw materials 558770000.24 100525696.37 458244303.87
Unfinished products 555451953.02 28344427.22 527107525.80
Finished products 1468970529.18 145401957.71 1323568571.47
Total 2583192482.44 274272081.30 2308920401.14
(2) Inventory falling price reserves
Increased amount in current period Decreased amount in currentperiod
Items Balance at the endof last year Conversion of Closing balance
Provision foreign currency Reversal or write-off Others
statement
Raw
materials 100525696.37 38567033.38 1204383.64 39540640.80 -- 100756472.59
Unfinished
products 28344427.22 10726669.08 1099306.21 9372047.85 -- 30798354.66
Finished
products 145401957.71 84973828.75 444688.59 99110718.08 -- 131709756.97
Total 274272081.30 134267531.21 2748378.44 148023406.73 -- 263264584.22
9. Non-current assets due within 1 year
Items Closing balance Balance at the end of last year
Other non-current assets due within one year [Note] 689033205.47 509070575.38
Other non-current financial assets due within one year -- 50000000.00
Total 689033205.47 559070575.38
[Note]: Refer to the principal of large-denomination certificates of deposit redeemed upon maturity within
one year and accrued interest.
10. Other current assets
Items Closing balance Balance at the end of last year
Export tax rebate receivable 7369802.15 5356094.47
VAT rebate receivable 2489909.34 7165454.75
Prepaid tax and VAT retained 171745232.56 146820302.41
Input tax to be deducted and certified 14674947.65 17548216.30
Prepaid expenses 15244244.74 10282601.20
Physical assets such as small household
appliances [Note 1] 42786744.82 --
Others 6425755.18 1815790.33
Subtotal 260736636.44 188988459.46
Less: Impairment reserve of other non-current
assets 122887023.61 --[Note 2]
Total 137849612.83 188988459.46
[Note 1]: Small home appliances are the properties involved in the Weifu International Trade “platform trade”
case returned by the public security organ to the company;
[Note 2]: After prudent assessment by management of the company regarding VAT receivables - prepaid VAT
there is significant uncertainty as to the future recoverability of such amounts and clear indications of impairment
have emerged. Accordingly an impairment provision of RMB 122887000 has been recognized.
76Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
11. Long-term equity investment
Increases and decreases in current period
Adjustment
Invested entity Balance at the end Investment gains and of otherof last year Additional Investment Other equity
investment reduction losses recognized under comprehenequity method sive change
revenues
Associated enterprises:
Wuxi Weifu
Environmental
Protection Catalyst Co. 1010047290.27 -- -- 207208545.69 -- 1935873.21
Ltd.Bosch Powertrain Co.Ltd. 3413961630.25 -- -- 725067949.82 -- --
Zhonglian Automotive
Electronics Co. Ltd. 1871790817.25 -- -- 514090471.95 -- --
Wuxi Weifu Precision
Machinery 44310168.33 -- -- -269981.18 -- 74644.79
Manufacturing Co. Ltd.Changchun Xuyang
Weifu Automotive Parts 8472997.94 -- -- 9210.97 -- --
Technology Co. Ltd.Precors GmbH -- -- -- -- --
Wuxi Autolink
Intelligent Technology 210866149.89 -- -- -63616983.38 -- -5010637.63
Co. Ltd.Lezhuo Bowei
Hydraulic Technology 132760771.59 -- -- -33886008.88 -- --
(Shanghai) Co. Ltd.Wuxi Zhuowei Times
High-tech Co. Ltd. 37919312.88 -- -- -2126059.56 -- --
Voith HySTech GmbH 304969740.19 28963801.82 -- -220140284.10 -- --
Total 7035098878.59 28963801.82 -- 1126336861.33 -- -3000119.63
(Continued)
Increases and decreases in current period
Declare Other Closing
Invested distribution Closing balance of
entity of cash Provision for Conversion of foreign currency
changes
balance provision for
dividends or impairment statement impairment
profits
Associated
enterprises:
Wuxi Weifu --
Environment
al Protection 117600000. -- -- 1101591709.Catalyst Co. 00 17
--
Ltd.Bosch
Powertrain 214397603.--
----3924631976.--
Co. Ltd. 56 51
Zhonglian
Automotive 300000000. 2085881289.Electronics 00 -- -- -- 20 --
Co. Ltd.Wuxi Weifu
Precision
Machinery -- -- -- -- 44114831.94 --
Manufacturi
ng Co. Ltd.
77Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Increases and decreases in current period
Declare Other Closing
Invested distribution changes Closing balance of
entity of cash Provision for Conversion of foreign currency balance provision for
dividends or impairment statement impairment
profits
Changchun
Xuyang
Weifu
Automotive -- -- -- -- 8482208.91 --
Parts
Technology
Co. Ltd.Precors
GmbH -- -- -- -- -- 8998648.57
Wuxi
Autolink
Intelligent -- -- -- 142238528.Technology 88
----
Co. Ltd.Lezhuo
Bowei
Hydraulic
Technology -- -- -- -- 98874762.71 --
(Shanghai)
Co. Ltd.Wuxi
Zhuowei
Times High- -- -- -- -- 35793253.32 --
tech Co.Ltd.Voith
HySTech -- 136596429.69 22803171.78 -- -- 138865054.GmbH 65
Total 631997603. 136596429.69 22803171.78 142238528. 7299370031. 147863703.56 88 76 22
12. Other equity instrument investments
(1) Investment of other equity instruments
Items Closing balance Balance at the end of last year
Wuxi Xichan Microchip Co. Ltd. 592742690.00 592742690.00
Wuxi Autolink Intelligent Technology Co. Ltd. [Note] 371348000.00 --
Others 85048000.00 85048000.00
Total 1049138690.00 677790690.00
[Note]: In November 2025 Wuxi Autolink Intelligent Technology Co. Ltd. initiated the Hong Kong stock
application work. According to the revised articles of association of this company the company shall no longer
have the right to appoint directors to the invested entity unable to continue to exert significant influence over the
company and therefore this investment was no longer accounted for as an associated enterprise; meanwhile the
company designated this investment as a financial asset measured at fair value with changes recorded in other
comprehensive income according to the business model for managing this financial asset. At the end of 2025 the
Autolink investment fair value of the company was determined with reference to the appraisal result issued by
Beijing Zhongheyi Asset Appraisal Co. Ltd. and the latest financing price of Autolink.
78Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
(2) Investment of non-transactional equity instruments
Gains and losses Cumulative gains and
recorded in other losses recorded in other Reasons for designating
Items comprehensive comprehensive income at
Dividend income to measure at fair value
income in the current the end of the current recognized in the with changes included inperiod (losses marked period (losses marked as “- current period other comprehensiveas “-”) ”) income
Attributable to non-
Wuxi Xichan Microchip Co. Ltd. -- -- -- trading equity instrument
investment
Wuxi Autolink Intelligent Attributable to non-
Technology Co. Ltd. -- -- -- trading equity instrumentinvestment
Attributable to non-
Others -- -- -- trading equity instrument
investment
Total -- -- -- ——
13. Other non-current financial assets
Items Closing balance Balance at the end of last year
Financial assets classified as measuring at fair value with
change recorded in current profits and losses 751258396.69 747471349.81
Of which: Investment in other debt instruments and equity
instruments held for more than one year 751258396.69 747471349.81
Less: Other non-current financial assets due within one year -- 50000000.00
Total 751258396.69 697471349.81
14. Investment real estate
(1) Investment real estate with the model of cost measurement
Items Houses and buildings Total
IX. Original book value
1. Balance at the end of last year 95327686.03 95327686.03
2. Increased amount in current period 23689544.68 23689544.68
(1) Outsourcing -- --
(2) Transfer of the fixed assets 23689544.68 23689544.68
3. Decreased amount in current period 17273395.16 17273395.16
(1) Disposal 501896.37 501896.37
(2) Other transfer-out 16771498.79 16771498.79
4. Closing balance 101743835.55 101743835.55
X. Cumulative depreciation and amortization
1. Balance at the end of last year 50366755.64 50366755.64
2. Increased amount in current period 10008123.41 10008123.41
(1) Provision or amortization 2152844.95 2152844.95
(2) Transfer of the fixed assets 7855278.46 7855278.46
3. Decreased amount in current period 10949363.37 10949363.37
(1) Disposal 486839.48 486839.48
(2) Other transfer-out 10462523.89 10462523.89
4. Closing balance 49425515.68 49425515.68
XI. Provisions for impairment
1. Balance at the end of last year -- --
2. Increased amount in current period -- --
3. Decreased amount in current period -- --
79Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Items Houses and buildings Total
4. Closing balance -- --
XII. Book value
1. Period-end book value 52318319.87 52318319.87
2. Book value at the end of last year 44960930.39 44960930.39
(2) Amount and reason for investment real estate with property ownership certificate unhandled
Items Book value Reasons for uncompleted the PropertyOwnership Certificate
Weifu Jinning House 52182.36 Relevant property right procedures are beinghandled
15. Fixed assets
Items Closing balance Balance at the end of last year
Fixed assets 4582924701.55 4461619375.21
Fixed asset liquidation -- --
Total 4582924701.55 4461619375.21
(1) Fixed assets
Fixed assets are as follows
Items Houses and Machinery Transportation Electronics andbuildings equipment equipment other equipments Land Total
XIII. Original book
value
1. Balance at the end
of last year 2476447467.18 5407734912.76 46817358.94 1391716721.51 30905579.87 9353622040.26
2. Increased amount in
current period 57970397.78 548415029.35 13930656.11 171419593.43 -- 791735676.67
(1) Purchase 1487808.80 46594559.44 3704470.50 17137783.43 -- 68924622.17
(2) Transfer of --
construction in 39565694.99 489711837.54 10226185.61 154281810.00 693785528.14
progress
(3) Others 16916893.99 12108632.37 -- -- -- 29025526.36
3. Decreased amount
in current period 27658210.01 53561975.64 883229.26 54184717.65
--136288132.56
(1) Disposal or
scraping 3968665.33 53561975.64 883229.26 42337770.73 -- 100751640.96
(2) Others 23689544.68 -- -- 11846946.92 -- 35536491.60
4. Conversion of
foreign currency 11754394.55 49519687.05 7302.03 36017264.27 2915022.81 100213670.71
statement
5. Closing balance 2518514049.50 5952107653.52 59872087.82 1544968861.56 33820602.68 10109283255.08
XIV. Cumulative
depreciation
1. Balance at the end
of last year 668529085.04 3063216934.23 24275580.49 933624243.29 -- 4689645843.05
2. Increased amount in
current period 87166958.74 375388180.61 3808092.00 165155881.83 -- 631519113.18
(1) Provision 76696854.97 373665099.24 3808092.00 165155881.83 -- 619325928.04
(2) Others 10470103.77 1723081.37 -- -- -- 12193185.14
3. Decreased amount
in current period 9051347.41 43776066.00 862394.20 25237574.96 -- 78927382.57
(1) Disposal or
scraping 1196068.95 43776066.00 862394.20 23608683.62 -- 69443212.77
80Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Items Houses and Machinery Transportation Electronics andbuildings equipment equipment other equipments Land Total
(2) Others 7855278.46 -- -- 1628891.34 -- 9484169.80
4. Conversion of
foreign currency 5472482.93 29748826.14 1606.11 27254350.48 -- 62477265.66
statement
5. Closing balance 752117179.30 3424577874.98 27222884.40 1100796900.64 -- 5304714839.32
XV. Provisions for
impairment
1. Balance at the end
of last year 14287345.82 148936967.61 73319.90 23694157.00 15365031.67 202356822.00
2. Increased amount in --
current period 1192045.29 12720710.79 77327.71 304124.54 14294208.33
(1) Provision [Note] 1192045.29 10483486.52 77327.71 304124.54 -- 12056984.06
(2) Others -- 2237224.27 -- -- -- 2237224.27
3. Decreased amount -- -- --
in current period 1356428.31 3596884.47 4953312.78
(1) Disposal or --
scraping 1356428.31
--1359660.20--2716088.51
(2) Others -- -- -- 2237224.27 -- 2237224.27
4. Conversion of
foreign currency 1328140.67 6046973.01 -1261.43 1122910.39 1449234.02 9945996.66
statement
5. Closing balance 16807531.78 166348223.10 149386.18 21524307.46 16814265.69 221643714.21
XVI. Book value
1. Period-end book
value 1749589338.42 2361181555.44 32499817.24 422647653.46 17006336.99 4582924701.55
2. Book value at the
end of last year 1793631036.32 2195581010.92 22468458.55 434398321.22 15540548.20 4461619375.21
Other descriptions: Other changes in buildings and structures were mainly caused by the conversion of
investment properties in the current period; other changes in machinery equipment and electronic and other
equipment were caused by the asset category adjustment in the current period.[Note]: Affected by relevant policy adjustment of overseas hydrogen energy industry the operating losses of
overseas wholly-owned subsidiary IRD and its US subsidiary increased with signs of impairment in long-term
assets; after a prudent impairment test the provisions were made for fixed asset impairment reserve of RMB
12056984.04 construction in progress impairment reserve of RMB 36839003.67 right-of-use asset impairment
reserve of RMB 3609952.82 long-term deferred expense impairment reserve of RMB 5484764.62 and other
non-current asset impairment reserve of RMB 8596558.12.Temporarily idle fixed assets
Items Original book value Cumulative Provisions fordepreciation impairment Book value
Machinery equipment 1509286.38 617182.45 864626.49 27477.44
Other devices 5988078.39 2939148.49 2749525.98 299403.92
Total 7497364.77 3556330.94 3614152.47 326881.36
Fixed assets rent through operating lease
Items Period-end book value
Houses and buildings 14822858.71
Total 14822858.71
Fixed assets without handling property ownership certificate
Items Book value Reasons for uncompleted the propertycertificate
81Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Items Book value Reasons for uncompleted the propertycertificate
Weifu Chang’an - Plant houses and office buildings 24678867.02 Relevant property right procedures are being
handled
Weifu Jinning - Plant houses and office buildings 147218.79 Relevant property right procedures are being
handled
16. Construction in process
Items Closing balance Balance at the end of last year
Construction in process 280431452.37 380321816.50
Engineering materials -- --
Total 280431452.37 380321816.50
(1) Construction in process
Construction in process
Closing balance Balance at the end of last year
Items
Book balance Provisions for
Provisions
impairment Book value Book balance for Book valueimpairment
Hydrogen Energy
Industrial Park 1044510.86 -- 1044510.86 385316.66 -- 385316.66
construction project
Weifu (Huishan)
Intelligent Industrial Park 7573068.22 -- 7573068.22 -- -- --
Phase II
Company Xinan Branch
No.1 Workshop -- -- -- 4456868.76 -- 4456868.76
Renovation Project
Land Plot 103 Phase 6
Project -- -- -- 222994.13 -- 222994.13
Production lines and
equipment under
installation and 288205125.59 36422667.30 251782458.29 353665522.78 184615.38 353480907.40
commissioning
Software and systems
under installation and 8335003.57 -- 8335003.57 17367111.09 -- 17367111.09
commissioning
Sporadic construction
security projects 11696411.43 -- 11696411.43 4408618.46 -- 4408618.46
Total 316854119.67 36422667.30 280431452.37 380506431.88 184615.38 380321816.50
Changes of important construction in progress in current period
Amount of
Budget Balance at the IncreasedName of projects amount in Current transfer Other current(RMB ten end of last year current period in of fixed assets reductions
Closing balance
thousand)
Company Xinan Branch No.1 4456868.76
Workshop Renovation Project 41245.40 4456868.76 -- -- --
Land Plot 103 Phase 6
Project 6309.48 222994.13 -- 222994.13 -- --
Hydrogen Energy Industrial
Park construction project 55000.00 385316.66 659194.20 -- -- 1044510.86
Weifu (Huishan) Intelligent
Industrial Park Phase II 27000.00 -- 7573068.22 -- -- 7573068.22
Production lines and ——
equipment under installation 353665522.78 588759435.96 654219833.15 -- 288205125.59
and commissioning
82Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Amount of
Budget Balance at the IncreasedName of projects (RMB ten end of last year amount in
Current transfer Other current
current period in of fixed assets reductions
Closing balance
thousand)
Software and systems under ——
installation and 17367111.09 30124824.53 -- 39156932.05 8335003.57
commissioning
Subtotal —— 376097813.42 627116522.91 658899696.04 39156932.05 305157708.24
(Continued)
Proportion of The Of which: Interest
cumulative Amount of
Project name engineering Engineering
accumulated interest capitalization
progress amount of capitalization in rate in the
Source of
investment to interest current period funds
budget (%) capitalization the currentperiod (%)
Company Xinan Branch No.1
Workshop Renovation Project 100% Completed -- -- -- Own capital
Land Plot 103 Phase 6 Project 100% Completed -- -- -- Own capital
Hydrogen Energy Industrial
Park construction project 0.19%
Completion of
design plan -- -- -- Own capital
Weifu (Huishan) Intelligent Engineering
Industrial Park Phase II 2.80% early stage -- -- -- Own capital
Production lines and equipment
under installation and -- -- -- -- -- Own capital
commissioning
Software and systems under
installation and commissioning -- -- -- -- -- Own capital
Subtotal -- -- -- -- -- --
Impairment reserve of construction in progress accrued in the current period
Opening balance Provision in the Decrease in Converted difference in
Items current period current period foreign currency Closing balance
statements
Equipments 36422667.30
installation 184615.38 36839003.67 -- -600951.75
Total 184615.38 36839003.67 -- -600951.75 36422667.30
17. Right-of-use assets
Items Houses and buildings Machinery equipment Total
XVII. Original book value
1. Balance at the end of last year 83289566.04 27897838.84 111187404.88
2. Increased amount this year 64713247.53 1281886.44 65995133.97
(1) Rental increase 64713247.53 1281886.44 65995133.97
3. Decreased amount this year 8168774.25 533943.57 8702717.82
(1) Upon maturity or disposal 8168774.25 533943.57 8702717.82
4. Converted difference in foreign currency statements 3973130.31 2040399.00 6013529.31
5. Closing balance 143807169.63 30686180.71 174493350.34
XVIII. Cumulative depreciation
1. Balance at the end of last year 29728433.95 13693528.56 43421962.51
2. Increased amount this year 28226492.74 6979626.27 35206119.01
(1) Provision 28226492.74 6979626.27 35206119.01
3. Decreased amount this year 7391319.51 278955.08 7670274.59
(1) Upon maturity or disposal 7391319.51 278955.08 7670274.59
4. Converted difference in foreign currency statements 711126.17 1208944.06 1920070.23
5. Balance at the end of the year 51274733.35 21603143.81 72877877.16
XIX. Provisions for impairment
83Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Items Houses and buildings Machinery equipment Total
1. Balance at the end of last year -- -- --
2. Increased amount this year 3609952.82 -- 3609952.82
(1) Provision 3609952.82 -- 3609952.82
3. Decreased amount this year -- -- --
4. Converted difference in foreign currency statements 59954.92 -- 59954.92
5. Balance at the end of the year 3669907.74 -- 3669907.74
XX. Book value
1. Book value at the end of the year 88862528.54 9083036.90 97945565.44
2. Book value at the end of last year 53561132.09 14204310.28 67765442.37
18. Intangible assets
(1) Intangible assets
Trademark and Patented and non-
Items Land use right Computer software trademark license patented technology Total
use right
XXI. Original book value
1. Balance at the end of
last year 419260133.17 241798650.13 41597126.47 255390917.74 958046827.51
2. Increased amount in
current period 14337536.79 39542492.36 -- -- 53880029.15
(1) Purchase 14337536.79 385560.31 -- -- 14723097.10
(2) Transfer of
construction in progress -- 39156932.05 -- -- 39156932.05
3. Decreased amount in 977558.40
current period 2797687.01 -- 3539793.05
7315038.46
(1) Disposal or scraping 977558.40 2390607.36 -- 3539793.05 6907958.81
(2) Others -- 407079.65 -- -- 407079.65
4. Conversion of foreign
currency statement -- 1678522.84 -- 20592935.52 22271458.36
5. Closing balance 432623934.75 280218155.13 41597126.47 272444060.21 1026883276.56
XXII. Accumulated
amortization
1. Balance at the end of
last year 121763326.96 201212782.11 9709000.00 127725716.90 460410825.97
2. Increased amount in
current period 9148502.24 32743464.43 -- 22315214.61
64207181.28
(1) Provision 9148502.24 32743464.43 -- 22315214.61 64207181.28
3. Decreased amount in 806462.41 1862687.81 -- 3539793.05 6208943.27
current period
(1) Disposal or scraping 806462.41 1760917.90 -- 3539793.05 6107173.36
(2) Others -- 101769.91 -- -- 101769.91
4. Conversion of foreign -- 1400370.36 -- 11031070.88 12431441.24
currency statement
5. Closing balance 130143106.85 233456189.03 9709000.00 157532209.34 530840505.22
XXIII. Provisions for
impairment
1. Balance at the end of
last year -- 448292.66 16646900.00 -- 17095192.66
2. Increased amount in -- -- --
current period -- --
3. Decreased amount in --
current period -- -- -- --
4. Conversion of foreign --
currency statement 42283.08 -- -- 42283.08
84Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Trademark and Patented and non-
Items Land use right Computer software trademark license patented technology Total
use right
5. Closing balance -- 490575.74 16646900.00 -- 17137475.74
XXIV. Book value
1. Period-end book value 302480827.90 46271390.36 15241226.47 114911850.87 478905295.60
2. Book value at the end of
last year 297496806.21 40137575.36 15241226.47 127665200.84 480540808.88
19. Goodwill
(1) Goodwill book value
Increase in current Decrease in
period current Conversion of
Matters generating goodwill Balance at the end of periodlast year foreign currency Closing balance
Enterprise merger statement
- Disposal
Consolidated with Weifu
Tianli 1784086.79 -- -- -- 1784086.79
Consolidated with Borit 238284918.92 -- -- 22070419.90 260355338.82
Total 240069005.71 -- -- 22070419.90 262139425.61
(2) Provision for goodwill impairment
Increase in current Decrease in
Matters generating goodwill Balance at the end of period
current Conversion of
last year period foreign currency Closing balancestatement
Provision Disposal
Consolidated with Weifu
Tianli -- -- -- -- --
Consolidated with Borit 207463687.49 33125793.96 -- 19765857.37 260355338.82
Total 207463687.49 33125793.96 -- 19765857.37 260355338.82
(3) Relevant information on asset group or asset group portfolio where the goodwill exists
Name Asset group or portfolio composition and basis Operating division and basis Whether consistentwith previous years
Long-term assets concerning the consolidated Weifu
Weifu Tianli Tianli goodwill; the management clarified such asset
Automotive Intake System
group to be used and operated independent of other Product Division; asset group Yes
assets and to generate cash inflow independently output product category
Long-term assets concerning the consolidated Borit
Borit goodwill; the management clarified such asset group to
Other automotive parts divisions;
be used and operated independent of other assets and to asset group output product Yes
generate cash inflow independently category
(4) Specific method of determining recoverable amount
The company estimates the recoverable amount of asset group with impairment signs according to the higher
of the net amount of its fair value minus disposal expense and the present value of expected future net cash flow;
regarding the asset group without impairment signs the company determines the recoverable amount of this asset
group by the present value of the expected future net cash flow of such asset group.Weifu Tianli: Determine its recoverable amount according to the present value of expected future cash flow
Year
Book value of asset Basis for
Items group including Recoverable
Impairme limit of
nt the Key parameters of Key parameters determining key
goodwill amount amount forecast the forecast period of stable period parameters of
period stable period
85Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Income growth rate: Income growth Considering
Weifu 2%-38%; profit rate 0% profit prudence the
Tianli 199231916.97 777560811.19 —— 5 years margin: 6%-7%; margin 6.49% income growthdiscount rate discount rate during the stable
10.14% 10.14% period was 0%
Borit: Determine the recoverable amount according to the net amount of fair value minus disposal expense
Method of
Book value of asset Impairment determining fair Key Basis forItems group including Recoverable amount amount value and parameters determining keygoodwill disposal parameters
expense
Enterprise
Borit 170848710.18 136709454.69 33125793.96 Marketapproach value/sales
Comparable
income company average
Descriptions: The company calculated the recoverable amount of this asset group with reference to the
appraisal result of Hu Jia Appraisal Report (2026) No.0095 Asset Appraisal Report of Wuxi Weifu High-
Technology Group Co. Ltd. on the Recoverable Amount of Goodwill-related Asset Group Arising from Weifu
Holding ApS Acquisition of Borit NV Concerning Goodwill Impairment Test for the Purpose of Financial
Reporting issued by Shanghai Jiace Asset Appraisal Co. Ltd. According to the impairment test results the
company has made provision for impairment reserve of RMB 33125793.96 to the goodwill associated with the
asset group in the current period.
(5) Performance commitment completion and corresponding impairment of goodwill
Inapplicable.
20. Long-term deferred expense
Items Balance at the end Increase in Current
Conversion of Closing balance
of last year current period amortization foreign currency Other decreasestatement
Decoration 22202465.04 49728058.21 11178248.90 2129430.87 5484764.62 57396940.60expense etc.Total 22202465.04 49728058.21 11178248.90 2129430.87 5484764.62 57396940.60
Descriptions: Other reductions were the provision for impairment reserve.
21. Deferred income tax assets/deferred income tax liabilities
(1) Non-offset deferred income tax asset details
Closing balance Balance at the end of last year
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Bad debt reserve 44152193.79 6905968.05 41797429.02 6435174.40
Inventory falling price
reserves 213603028.75 33540830.32 236847793.55 36125249.29
Fixed asset impairment
reserve 95191249.93 16607584.61 96998034.32 17014413.73
Impairment reserve of
construction in progress 184615.38 27692.31 184615.38 27692.31
Provisions for intangible
asset impairment 16646900.00 2497035.00 16646900.00 2497035.00
Deferred incomes 116439925.84 17563299.19 149757581.67 22633752.36
Internal unrealized profits 71547412.32 13192513.91 65395598.24 13015777.61
86Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Closing balance Balance at the end of last year
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Wage payable accrued
expense etc. 954373383.21 149574911.28 917718552.00 145328224.99
Asset depreciation
amortization difference 24717114.06 3711115.68 23208041.96 3527337.81
Deductible loss amount 1231507412.99 188106484.27 1168677565.93 175301634.90
Impairment reserve of other
non-current assets 146615749.63 21992362.44 146615749.63 21992362.44
Lease liabilities 77754490.02 16628519.52 61461573.00 14237201.65
Fluctuation of fair value 40671644.15 6100746.63 30550763.25 4582614.49
Total 3033405120.07 476449063.21 2955860197.95 462718470.98
(2) Details of non-offset deferred tax liabilities
Closing balance Balance at the end of last year
Items Taxable temporary Deferred income Taxable temporary Deferred income tax
difference tax liabilities difference liabilities
Difference in fair value of consolidated
Weifu Tianli assets under different 8788973.20 1318345.98 9256736.95 1388510.52
control and taxation basis
Difference in fair value of consolidated
IRD assets under different control and 35509947.59 7812188.47 42249682.78 9294930.21
taxation basis
Difference in fair value of consolidated
Borit assets under different control and 13838768.77 3459692.13 15512362.69 3878090.60
taxation basis
Difference in fair value of consolidated
VH business assets under different 44901017.14 10776244.06 42200640.32 10128153.65
control and taxation basis
Fluctuation of fair value 44731787.81 7018986.57 823158.14 123473.72
Accelerated depreciation of fixed assets 870317608.44 135932828.36 844054613.82 131777556.75
Right-of-use assets 76082085.49 16266866.76 62433477.96 13999594.04
Others 64198291.94 10983558.81 83354236.41 13578003.30
Total 1158368480.38 193568711.14 1099884909.07 184168312.79
(3) Deferred income tax assets or liabilities presented by net amount after offsetting
Mutually offset amount Closing balance of Offset amount of Balance of deferred
Items of deferred income tax deferred income tax deferred income tax income tax assets orassets and liabilities at assets or liabilities after assets and liabilities at liabilities at the end of
the end of period offsetting the end of last year last year after offsetting
Deferred income tax assets 166550052.70 309899010.51 159298304.33 303420166.65
Deferred income tax liabilities 166550052.70 27018658.45 159298304.33 24870008.46
(4) Unrecognized deferred income tax assets
Items Closing balance Balance at the end of last year
Bad debt reserve 1988739197.71 1649563010.58
Inventory falling price reserves 49661555.47 37424287.75
Subsidiary loss amount 1350265857.24 923958282.87
Provisions for long-term equity investment impairment 147863703.22 8223048.38
Fixed asset impairment reserve 126452464.28 105358787.68
Impairment reserve of construction in progress 36238051.92 --
Provisions for intangible asset impairment 490575.74 448292.66
Fair value changes of other equity instrument
investments 12600000.00 13600000.00
Impairment reserve of other non-current assets 122887023.61 --
Wage payable accrued expense etc. 42545482.35 49304003.51
87Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Items Closing balance Balance at the end of last year
Total 3877743911.54 2787879713.43
Other descriptions: Due to the uncertainty about whether the loss-making subsidiary can obtain sufficient
taxable income in the future the deferred income tax assets are not recognized.
(5) The deductible losses of unrecognized deferred income tax assets will expire in the following years
Year Closing balance Balance at the end of last year
2025 years -- 7635552.89
2026 years 33144849.80 46267496.16
2027 years 54686831.09 90932850.34
2028 years 78303845.07 104023377.77
2029 years 99939854.63 119116583.00
2030 and thereafter 344928798.27 --
No expiration date [Note] 739261678.38 555982422.71
Total 1350265857.24 923958282.87
Note: Those with no expiration date in the deductible losses are operating losses incurred by overseas
subsidiaries of the company and operating losses can be compensated infinitely in accordance with the tax policy
in the locality where overseas subsidiaries operate.
22. Other non-current assets
Items Closing balance Balance at the end of last year
Prepaid engineering and equipment fund 192938074.50 186322984.79
Contract acquisition cost with amortization period of more than one
year at the time of initial recognition 3625624.88 4330621.43
Contract performance cost with amortization period of more than
one year at the time of initial recognition 40362622.75 --
Large certificate of deposit due over one year 20769315.07 689071260.28
Finance products 146615749.63 160163280.47
Subtotal 404311386.83 1039888146.97
Less: Impairment reserve of other non-current assets 155072072.78 146615749.63
Total 249239314.05 893272397.34
23. Assets with limited ownership or right of use
Items Period-end book value Limited type Restricted case
Monetary fund 20188696.29 Deposit Security deposit paid for issuing bank acceptancebills
Monetary fund 8291872.97 Deposit IRD performance bond
Monetary fund 273032.92 Deposit Guarantee deposit for letter of guarantee
Monetary fund 152.85 Deposit Mastercard security deposit
Monetary fund 60412602.74 Deposit Security deposit for obtaining bank loan pledgeand interest
Accounts receivable 10000000.00 Pledge Accounts receivable pledge financing
Receivables financing 408648804.25 Pledge Notes pledged for issuing bank acceptance bills
Funds were frozen by the court due to litigation.The frozen funds are held in a corporate
structured deposit account opened by the
Trading financial assets 10150000.00 Freeze company with a bank. The principal balance of
this deposit account is RMB 100 million of
which RMB 10.15 million is restricted as a result
of the freeze.Total 517965162.02 —— ——
88Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
24. Short-term borrowings
(1) Short-term loan classification
Items Closing balance Balance at the end of last year
Credit loan 504667506.68 392800433.57
Pledge borrowings 59426508.10 --
Interest payable 669795.45 319714.38
Total 564763810.23 393120147.95
25. Bills payable
Category Closing balance Balance at the end of last year
Bank acceptance bill 1913336503.36 2014217247.05
Total 1913336503.36 2014217247.05
26. Accounts payable
(1) List of payables
Items Closing balance Balance at the end of last year
Operational accounts payable for purchasing
goods or labor services 4195992940.45 3661507490.23
Engineering and equipment funds payable 179884154.40 238437702.05
Total 4375877094.85 3899945192.28
(2) Major payables aged over 1 year
No.
27. Advance receipt
Items Closing balance Balance at the end of last year
Advance receipt of rental fee 4013931.36 2652511.04
Total 4013931.36 2652511.04
28. Contract liabilities
(1) Contract liability
Items Closing balance Balance at the end of last year
Advance receipt of cargo funds 63010303.58 56148545.13
Total 63010303.58 56148545.13
(2) Important contractual liabilities aging more than 1 year
No.
29. Payroll payable
(1) Staff remuneration payables
Items Balance at the end of Increase in current Decrease in currentlast year period period Closing balance
XXV. Short-term remuneration 286170405.86 1540056720.42 1524576419.43 301650706.85
89Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Items Balance at the end of Increase in current Decrease in currentlast year period period Closing balance
XXVI. Post-employment welfare -
defined benefit plan 28540420.13 225331805.12 239220866.44 14651358.81
XXVII. Dismissal benefits 1023380.23 10676964.45 1920559.41 9779785.27
XXVIII. Incentive fund paid within one
year 67660000.00 -- 47660000.00 20000000.00
XXIX. Other short-term benefits—
housing subsidy employee reward and 21883842.70 -- 3709523.94 18174318.76
welfare fund
Total 405278048.92 1776065489.99 1817087369.22 364256169.69
Description of dismissal benefit: Dismissal benefit was the employee remuneration payable arising from the
company internal employee retirement plan and the amount forecast to be paid in the next year was presented
under this subject.
(2) Short-term remuneration
Items Balance at the end of Increase in current Decrease in currentlast year period period Closing balance
XXX. Salaries bonuses allowances and
subsidies 270773275.35 1250498320.54 1235220924.10 286050671.79
XXXI. Staff welfare expenses -- 86833609.47 86833609.47 --
XXXII. Social insurance charges 312450.03 74412227.88 74386438.15 338239.76
Of which: Medical insurance premium 231732.98 60013189.83 59986887.57 258035.24
Injury insurance premium 71875.47 8040824.14 8042697.69 70001.92
Maternity insurance premium 8841.58 6358213.91 6356852.89 10202.60
XXXIII. Housing fund 778913.00 92053908.66 92006965.66 825856.00
XXXIV. Labor union fund &employee
education fund 9551179.06 19202042.19 18823919.98 9929301.27
XXXV. Other short-term remuneration -
social security 4754588.42 17056611.68 17304562.07 4506638.03
Total 286170405.86 1540056720.42 1524576419.43 301650706.85
(3) Setting up withdrawing and deposit plan
Items Balance at the end of Increase in current Decrease in currentlast year period period Closing balance
1. Basic pension insurance premium 8666008.76 183799310.18 183508369.52 8956949.42
2. Unemployment insurance premium 20356.56 5014837.98 4990591.39 44603.15
3. Enterprise annuity payment 19854054.81 36517656.96 50721905.53 5649806.24
Total 28540420.13 225331805.12 239220866.44 14651358.81
Description of post-employment benefit - defined contribution plan:
The company joins in the pension and unemployment insurance programs established by government
agencies in accordance with regulations and according to these programs the company deposits expense to such
programs according to a certain percentage of social insurance premium base specified by the government every
month. Except for the above monthly payment the company will no longer hold any further payment obligations.All the related expenses shall be included into current profit or loss or the costs of related assets when occurs. For
the enterprise annuity plan refer to the Note XV 4 “Annuity plan”.
30. Taxes payable
Items Closing balance Balance at the end of last year
Value added tax 23728130.97 17962320.77
90Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Items Closing balance Balance at the end of last year
Enterprise income tax 26338033.58 15110401.06
Urban maintenance and construction tax 1556316.59 1103941.58
Education surcharge 1146327.89 798036.26
Housing property tax 7056699.71 6355132.42
Land use tax 1408216.46 1556476.60
Individual income tax 6766820.73 6198892.34
Stamp duty 2887888.46 2469983.52
Others 366601.08 155033.86
Total 71255035.47 51710218.41
31. Other payables
Items Closing balance Balance at the end of last year
Interest payable -- --
Dividends payable 2937600.00 --
Other payables 62369120.22 44547794.12
Total 65306720.22 44547794.12
(1) Dividends payable
Items Closing balance Balance at the end of last year
Subsidiary’s dividends payable 2937600.00 --
Total 2937600.00 --
(2) Other payables
Presented by fund nature
Items Closing balance Balance at the end of last year
Deposit and margin 31307210.21 13909942.25
Withheld social insurance and housing provident fund etc. 2707549.19 1301468.22
Corporate current accounts 23526000.00 23526000.00
Others 4828360.82 5810383.65
Total 62369120.22 44547794.12
Major other payables aged over 1 year
Items Closing balance Reasons for outstanding or notcarrying over
Ningbo Jiangbei High-tech Industrial Park Development 19026000.00 The conditions for carrying forwardand Construction Co. Ltd. not met
32. Non-current liabilities due within 1 year
Items Closing balance Balance at the end of last year
Long-term borrowings due within 1 year (Note V 34) 100104542.78 200010680.56
Lease liabilities due within 1 year (Note V 36) 30052680.37 20693207.97
Total 130157223.15 220703888.53
33. Other current liabilities
Items Closing balance Balance at the end of last year
Rebate payable 231984909.31 282435925.87
Tax to be output 7722417.64 2950311.81
Commercial acceptance bill endorsed and undue 6228142.15 --
91Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Items Closing balance Balance at the end of last year
Total 245935469.10 285386237.68
34. Long-term borrowing
Items Closing balance Balance at the end of last year
Credit loan 187404542.78 300010680.56
Less: Long-term borrowings due within one year 100104542.78 200010680.56
Total 87300000.00 100000000.00
35. Bonds payable
(1) Bonds payable
Items Closing balance Balance at the end of last year
Bonds payable 500624657.53 --
Total 500624657.53 --
(2) Increase and decrease of bond payable
Balance at
Bond name Face value Coupon rate Issue date Bondmaturity Issue amount the end of lastyear
25 Weifu K1 500000000.00 1.90% 2025/12/8 3 years 500000000.00 --
Total 500000000.00 -- -- -- 500000000.00 --
(Continued)
Bond name Issue in current period Accrued interest at Premium discount Repayment in theface value amortization current period Closing balance
25 Weifu K1 500000000.00 624657.53 -- -- 500624657.53
Total 500000000.00 624657.53 -- -- 500624657.53
Descriptions: On 21 October 2025 the company received Reply on Agreeing to the Registration of
Technological Innovation Company Bonds Publicly Issued by Wuxi Weifu High-Technology Group Co. Ltd. to
Professional Investors (CSRC License [2025] No.2321) from the China Securities Regulatory Commission
agreeing to the registration application of Technological Innovation Company Bonds with a total face value of no
more than RMB 3 billion publicly issued by the company to professional investors. The company publicly issued
the first batch of Technological Innovation Company Bonds with a face value of RMB 500 million (specifically
used for 465 modern industrial cluster) to professional investors on 8 December 2025 raised funds of RMB 500
million with a bond term of 3 years and a coupon rate of 1.90%.
36. Lease liabilities
Items Closing balance Balance at the end of last year
Lease payment amount 110509867.86 73534246.81
Unrecognized financing expense -7083414.26 -5524522.36
Less: Leasing liabilities due within one year 30052680.37 20693207.97
Total 73373773.23 47316516.48
37. Long-term accounts payable
Items Closing balance Balance at the end of last year
92Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Items Closing balance Balance at the end of last year
Long-term accounts payable 7780000.00 8740000.00
Special accounts payable -- 18265082.11
Total 7780000.00 27005082.11
(1) Long-term accounts payable
Items Balance at the end ofItems Closing balance last year
Nanjing Finance Bureau High-tech Branch (Note* ) Financial support funds (2010) -- 960000.00
Nanjing Finance Bureau High-tech Branch (Note* ) Financial support funds (2011) 5040000.00 5040000.00
Nanjing Finance Bureau High-tech Branch (Note* ) Financial support funds (2013) 2740000.00 2740000.00
Total -- 7780000.00 8740000.00
Notes:
Note* : Financial support funds are the support funds provided by Nanjing Finance Bureau High-tech
Branch to encourage Weifu Jinning to settle in Nanjing High-tech Industrial Development Zone with a period
from 27 December 2010 to 27 December 2025. If the operating period in the zone is less than 15 years the
financial support funds must be refunded.Note* : Financial support funds are the support funds provided by Nanjing Finance Bureau High-tech
Branch to encourage Weifu Jinning to settle in Nanjing High-tech Industrial Development Zone with a period
from 28 December 2011 to 28 December 2026. If the operating period in the zone is less than 15 years the
financial support funds must be refunded.Note* : Financial support funds are the support funds provided by Nanjing Finance Bureau High-tech
Branch to encourage Weifu Jinning to settle in Nanjing High-tech Industrial Development Zone with a period
from 18 December 2013 to 18 December 2028. If the operating period in the zone is less than 15 years the
financial support funds must be refunded.
(2) Special accounts payable
Items Balance at the end of
Increase in
current Decrease in currentlast year period Closing balance Cause of formationperiod
Weifu Jinning demolition
compensation funds 18265082.11 -- 18265082.11 -- See the description
Total 18265082.11 -- 18265082.11 --
Descriptions: According to the Housing Expropriation Decision of Nanjing Xuanwu District People’s
Government Ning Xuan Government Expropriation (2012) No.001 in order to implement the Ming Dynasty City
Wall Environmental Comprehensive Improvement Project partial lands and real estates of Weifu Jinning must be
expropriated. According to the State-owned Land House Expropriation and Compensation Agreement signed
between Weifu Jinning and Nanjing Xuanwu District Housing Expropriation Management Office the total
compensation was RMB 19706700 including the lessee’s operating losses and more totaling RMB 1441600.The above funds were received in the early stage and the lessee’s losses were compensated. As of the end of 2025
the above lands and real estates had been transferred.
93Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
38. Long-term employee remuneration payable
(1) Long-term payable employee payroll
Items Closing balance Balance at the end of last year
XXXVI. Post-employment welfare - defined benefit plan
net liabilities 18028501.68 19879635.58
XXXVII. Dismissal benefits 7606269.58 11027155.79
XXXVIII. Other long-term benefits - incentive fund 78319699.51 100872070.31
Less: Incentive fund paid within one year 23500000.00 85660000.00
Other long-term benefits - incentive fund balance 54819699.51 15212070.31
Total 80454470.77 46118861.68
(2) Defined benefit plan changes
Present value of the defined benefit plan obligations
Items The current period Same period last year
XXXIX. Balance at the end of last year 19879635.58 21238891.62
XL. Defined benefit cost included in current period (year)
profits and losses 645658.20 652062.46
1. Service cost in the current period (year) 645658.20 652062.46
XLI. Defined benefit cost recorded into other
comprehensive incomes -413276.52 -135700.88
1. Actuarial gains (losses marked with “-”) -413276.52 -135700.88
XLII. Other changes -2083515.58 -1875617.62
1. Paid welfare -3893574.84 -985295.66
2. Converted difference in foreign currency statements 1810059.26 -890321.96
XLIII. Balance at the end of period (year) 18028501.68 19879635.58
Other notes: Retirement allowance system shall be established in accordance with relevant Italian regulations
(Trattamento di Fine Rapporto short for TFR namely employee severance pay). VHIO must make provision for
the employee retirement allowance according to employees’ employment period and taxable base salary and pay
it to employees after they depart the job or are dismissed. In this plan future cash outflow is forecast by inflation
rate and the present value is determined by the discount rate. The above defined benefit plan brings actuarial risks
to VHIO mainly including interest rate risk and inflation risk. The interest rate reduction will cause an increase in
the present value of defined benefit plan obligation. Furthermore the present value of defined benefit plan
obligation is related to the planned future payment standard and the payment standard is determined according to
the inflation rate. Therefore rising inflation rate will also lead to increase in the planned liabilities.
39. Estimated liabilities
Items Closing balance Balance at the end of last year
Product quality assurance 104609340.95 121072840.23
Environmental protection commitments 315420.20 288233.90
Pending disputes and lawsuits 530742.49 508477.63
Total 105455503.64 121869551.76
40. Deferred incomes
Items Balance at the end of Increase in current Decrease in current
Conversion of
last year period period foreign currency Closing balancestatement
94Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Items Balance at the end of Increase in current Decrease in current
Conversion of
last year period period foreign currency Closing balancestatement
Government subsidies 151419335.74 22314064.57 45116021.66 324642.49 128942021.14
Total 151419335.74 22314064.57 45116021.66 324642.49 128942021.14
Among them project involving government subsidy:
Amount of Amount recorded Conversion of
Subsidy item Balance at the subsidies addedend of last year in current in other incomes
foreign
currency Closing balance
Related to assets
period in current period
/ incomes
statement
Diesel Engine-based
Distributed High-
pressure Common Rail
System R&D Capability 3973394.44 -- 781651.38 -- 3191743.06 Assets
& Production Line concerned
Technology Reform
Project
Automobile Diesel -- --
Engine Common Rail
System High-pressure 688639.41 685275.89 3363.52 Assets
Variable Pump R&D & concerned
Industrialization Project
Industrial Upgrading --
Fund (2014) 33722041.39 11006608.67 -- 22715432.72
Revenue
concerned
Compensation for -- --
newly-built assets after Assets
relocation of parent 26199457.92 15043256.69 11156201.23 concerned
company
Industrial Upgrading --
Fund (2016) 40000000.00 -- 40000000.00
Revenue
concerned
National High-tech -- --
Management Assets
Committee technology 1354537.03 1113873.64 240663.39 concerned
reform guidance funds
Diesel engine variable --
cross-section
turbocharger 1624110.44 944989.46 -- 679120.98 Assets
implementation concerned
program
2020 municipal -- --
technology reform fund 2295544.70 605316.80 1690227.90 Assets
project funding concerned
Strategic cooperation --
agreement funds of key
intelligent 1708305.34 374518.91 -- 1333786.43 Assets
manufacturers in High- concerned
tech Zone
High-performance -- --
vehicle proton exchange
membrane fuel cell Assets
membrane electrode 6296840.52 2006084.07 4290756.45 concerned
R&D and
industrialization project
2023 Wuxi industrial --
transformation and 8114753.86 1010230.51 -- 7104523.35 Assets
upgrading funds concerned
Project for Technology -- --
Reform and Capacity
Optimization of Assets
Turbochargers with 1472238.25 203881.14 1268357.11 concerned
Annual Output of
150000 Units
95Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Amount of Conversion of
Subsidy item Balance at the subsidies added
Amount recorded foreign Related to assets
end of last year in current in other incomesin current period currency
Closing balance / incomes
period statement
High-durability --
Dynamic Seal
Development Machine 1530000.00 -- 1530000.00
Assets
concerned
Application Project
2022 Project of -- --
Equipment Input at
Small Test Stage of 582043.36 138180.83 443862.53 Assets
Hydrogen Fuel Cell concerned
Parts
Intelligent construction
- motor shaft expansion -- 1990000.00 274369.20 -- 1715630.80 Assets
project concerned
Low-platinum high- --
environment
adaptability hydrogen -- 1560000.00 -- 1560000.00 Assets
fuel cell system R&D concerned
project
Systematic technical
research on hybrid
gasoline engines for -- 1500000.00 -- -- 1500000.00 Assets
China VII emission concerned
standard
“Industries 4.0 grants”
(Industrial 4.0 subsidy -- 13659112.90 2709746.38 239427.72 11188794.24 Assets
or funding) concerned
Other projects 21857429.08 3604951.67 8218038.09 85214.77 17329557.43 Related to assets/ incomes
Total 151419335.74 22314064.57 45116021.66 324642.49 128942021.14 ——
41. Share capital
Increase or decrease in current period (+ -)
Share
Items Balance at the end of New Shares conversionlast year Others- Closing balanceshares given for of
issued free provident cancellation
Subtotal
fund
Total number of
shares 996986293 -- -- -- -30200600 -30200600 966785693
Note: The share capital reduction in the current period was caused by company repurchased share
cancellation of 30200600 shares.
42. Capital reserve
Items Balance at the end of last Increase in current Decrease in currentyear period period Closing balance
Capital stock premium 3158553526.22 326423.50 539526820.24 2619353129.48
Other capital reserves 105095575.22 2010518.00 39955086.44 67151006.78
Total 3263649101.44 2336941.50 579481906.68 2686504136.26
Note: (1) The share capital premium increased by RMB 326423.50 in the current period caused by the
premium capital contribution of subsidiary minority shareholders; the reduction of RMB 539526820.24 in the
current period was caused by company repurchased share cancellation of 30200600 shares.
(2) Other capital reserve increase of RMB 2010518.00 in the current period was the amount enjoyed by the
96Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
company as per the shareholding ratio due to other equity changes of associated enterprises; other capital reserves
decreased in the current period included other capital reserves of RMB 39945647.02 corresponding to the equity
of Autolink transferred out and the handling fee paid for repurchased shares of RMB 9439.42.
43. Treasury stock
Items Balance at the end of lastyear Increase in current period Decrease in current period Closing balance
Share repurchase 469722092.24 100005328.00 569727420.24 --
Total 469722092.24 100005328.00 569727420.24 --
Note: The increase of RMB 100005328.00 in the current period was caused by 5200600 repurchased
shares; the reduction of RMB 569727420.24 in the current period was caused by company repurchased share
cancellation of 30200600 treasury shares.
44. Other comprehensive incomes
Amount incurred in this period
After-tax
Items End of last year
Amount incurred
before income tax Less: After-tax parent minorityBalance Closing balance
for the current Income tax company’s shareholders’
period expenses attributable share attributableshare
XLIV. Other
comprehensive
income that will be -1437353.97 413276.52 413276.52 -1024077.45
reclassified to profit
or loss
Of which: Other
comprehensive
incomes unable to
transfer to profits 16008.80 -- -- -- -- 16008.80
and losses under the
equity method
Changes arising
from re-measuring -1453362.77 413276.52 -- 413276.52 -- -1040086.25
defined benefit plan
XLV. Other
comprehensive
income reclassified 11569759.36 111852416.71 -- 111852416.71 -- 123422176.07
into profit and loss
Of which: Foreign
currency financial
statement translation 11569759.36 111852416.71 -- 111852416.71 -- 123422176.07
difference
Total 10132405.39 112265693.23 112265693.23 122398098.62
45. Special reserve
Items Balance at the end of last year Provision in the current period Used in this period Closing balance
Safety production expense 6257090.28 30637084.80 28274540.91 8619634.17
Other notes:
(1) Description on the extraction of special reserve (safety production expense): According to Financial
Assets [2022] No.136 Administrative Measures for Withdrawing and Using Enterprise Safety Production
Expenses jointly issued by the Ministry of Finance and the Ministry of Emergency Management in the current
97Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
period the company shall determine the amount to be accrued for the current year by excess regressive based on
the last year’s operating income and withdraw on average on a monthly basis.
(2) The above safety production fee included the safety production fee accrued by the company in
accordance with regulations and the part in subsidiary’s safety production expense accrued as stipulated
attributable to shareholders of the company.
46. Surplus reserve
Items Balance at the end of last Increase in current Decrease in currentyear period period Closing balance
Statutory surplus
reserve 510100496.00 -- -- 510100496.00
Note: Pursuant to provisions of the Company Law and articles of association the company withdraws the
statutory surplus reserve as per 10% of net profits. If the cumulative amount of statutory surplus reserve reaches
more than 50% of the corporate registered capital it shall no longer be withdrawn.
47. Undistributed profits
Items The current period Last period Proportion of extraction ordistribution
Undistributed profit at the end of the prior year
before adjustment 15523124882.77 15054950398.12 --
Adjustment of total undistributed profits at the end
of last year (increase + decrease -) -- --
Adjusted undistributed profits at the end of last
year 15523124882.77 15054950398.12 --
Add: Net profit attributable to shareholders of
parent company in current period 1068167498.05 1659533740.63 --
Others 1004237.29 -- --
Less: Withdrawal of statutory surplus reserve -- --
Less: Withdrawal of staff bonus and welfare funds -- 5535978.52 --
RMB 10/10 shares this
Cash dividends payable 969152063.00 1185823277.46 year RMB 12.2/10 shares
last year
Undistributed profits at the end of period 15623144555.11 15523124882.77
48. Operating incomes and operating costs
(1) Operating income and operating cost
Current amount Previous amount
Items
Income Cost Income Cost
Main business 11873975422.18 9899708804.88 11010590101.39 9083542710.99
Other businesses 149903636.09 40129343.86 156673054.46 53624305.40
Total 12023879058.27 9939838148.74 11167263155.85 9137167016.39
(2) Operating income and operating cost decomposition information
Energy conservation and emission reduction: Energy conservation and emission reduction:
Automotive Fuel Injection System Product Automotive After-treatment System Product
Items Division Division
Operating revenue Operating cost Operating revenue Operating cost
Main business 4913386776.49 3920096418.96 3671578714.98 3146612888.30
98Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Energy conservation and emission reduction: Energy conservation and emission reduction:
Automotive Fuel Injection System Product Automotive After-treatment System Product
Items Division Division
Operating revenue Operating cost Operating revenue Operating cost
Of which: Recognition at a
certain point of time 4913386776.49 3920096418.96 3671578714.98 3146612888.30
Recognition at a certain period of
time -- -- --
Other businesses 100032453.43 20502908.49 31027726.39 14888045.97
Of which: Recognition at a
certain point of time 76716521.79 17979763.49 28958646.70 14198328.19
Recognition at a certain period of
time -- -- --
Rental income 23315931.64 2523145.00 2069079.69 689717.78
Total 5013419229.92 3940599327.45 3702606441.37 3161500934.27
(Continued)
Energy conservation and emission reduction:
Intake System Product Division Intelligent Electric Product DivisionItems
Operating revenue Operating cost Operating revenue Operating cost
Main business 1061023325.54 844205344.54 2142422632.33 1860011218.94
Of which: Recognition at a
certain point of time 1061023325.54 844205344.54 2142422632.33 1860011218.94
Recognition at a certain period of
time -- -- -- --
Other businesses 9544264.80 819097.20 9280997.87 3916195.20
Of which: Recognition at a
certain point of time 8099243.67 566729.47 9280997.87 3916195.20
Recognition at a certain period of
time -- -- -- --
Rental income 1445021.13 252367.73 -- --
Total 1070567590.34 845024441.74 2151703630.20 1863927414.14
(Continued)
Green Hydrogen Energy Product Division Total
Items
Operating revenue Operating cost Operating revenue Operating cost
Main business 85563972.84 128782934.14 11873975422.18 9899708804.88
Of which: Recognition at a
certain point of time 85563972.84 128782934.14 11873975422.18 9899708804.88
Recognition at a certain period of
time -- -- -- --
Other businesses 18193.60 3097.00 149903636.09 40129343.86
Of which: Recognition at a
certain point of time 18193.60 3097.00 123073603.63 36664113.35
Recognition at a certain period of
time -- -- -- --
Rental income -- -- 26830032.46 3465230.51
Total 85582166.44 128786031.14 12023879058.27 9939838148.74
49. Taxes and surcharges
Items Current amount Previous amount
Urban maintenance and construction tax 14581136.84 13049328.17
Education surcharge 10542293.48 9351364.94
Housing property tax 25297533.91 21451633.02
Land use tax 5191297.54 5804975.69
Vehicle and vessel use tax 30878.47 18416.00
99Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Items Current amount Previous amount
Stamp duty 9419461.23 8374396.39
Other taxes 1607386.37 1649642.74
Total 66669987.84 59699756.95
Notes: As for the payment standard of taxes and fees please refer to Note IV Tax Items.
50. Sales expenses
Items Current amount Previous amount
Wage and wage-related expense 99745132.59 89134548.13
Office material consumption and business travel expense 12616935.70 13162540.56
Warehouse expense 32465033.33 27004714.83
Business entertainment expenses 14712930.63 14344721.18
Others 45319976.17 29648076.13
Total 204860008.42 173294600.83
51. Management expenses
Items Current amount Previous amount
Wage and wage-related expense 395848807.39 366182391.60
Depreciation expense and long-term asset amortization 149861368.85 127534031.96
Office material consumption and business travel
expense 35370421.09 29148557.96
Others 226460408.28 203745469.77
Total 807541005.61 726610451.29
52. R&D expenses
Items Current amount Previous amount
Technical development expense 695553391.89 690258974.54
Total 695553391.89 690258974.54
53. Financial expenses
Items Current amount Previous amount
Interest expense 22596287.74 25385434.57
Less: Interest income 51524160.25 101699691.65
Exchange gains and losses -5229358.85 15276844.52
Handling fee expenditure etc. 4097581.15 5267914.58
Total -30059650.21 -55769497.98
54. Other revenues
Amount included in current
Items Current amount Previous amount non-recurring gains and
losses
Government grants related to daily business
activities 64332685.51 84356626.01 36103638.35
Offset amount of VAT input tax addition 79064682.97 101017699.02 --
Overseas subsidiary tax credit 1287655.08 9439082.70 1287655.08
100Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Amount included in current
Items Current amount Previous amount non-recurring gains and
losses
Refund of handling fee for withholding
personal income tax 733427.02 717913.05 --
Total 145418450.58 195531320.78 37391293.43
Among them government grants are as follows:
Subsidy item Current amount Previous amount Related toassets/revenues
Compensation for depreciation/amortization of newly-built
assets after relocation of parent company 15043256.69 18626888.11 Assets concerned
Automobile Diesel Engine Common Rail System High-
pressure Variable Pump R&D & Industrialization Project 685275.89 998635.05 Assets concerned
Diesel engine variable cross-section turbocharger
implementation program 944989.46 1081642.59 Assets concerned
National High-tech Management Committee technology
reform guidance funds 1113873.64 1218151.94 Assets concerned
Industrial Upgrading Fund 11006608.67 10361436.74 Revenue concerned
Diesel Engine-based Distributed High-pressure Common
Rail System R&D Capability & Production Line Technology 781651.38 781651.40 Assets concerned
Reform Project
2020 municipal technology reform fund project funding 605316.80 615654.83 Assets concerned
Special funds for 2019 2nd batch provincial-level industrial
and information industry transformation 117919.21 422844.68 Assets concerned
Post stabilization and expansion subsidy 2432715.03 2166190.72 Revenue concerned
Weifu Jinning financial support funds 960000.00 1030000.00 Revenue concerned
Ningbo Jiangbei District Top 50 Enterprise Selection 1710000.00 840000.00 Revenue concerned
Strategic cooperation agreement funds of key intelligent
manufacturers in High-tech Zone 374518.91 833156.76 Revenue concerned
Talent policy subsidy 1311450.00 1646000.00 Revenue concerned
Special funds for intelligent transformation and digital
transformation 400000.00 500000.00 Revenue concerned
Wuxi industrial transformation and upgrading funds 3616314.58 7535176.47 Related to assets /incomes
R&D subsidy for high-performance vehicle proton exchange
membrane fuel cell membrane electrode R&D and -- 4500000.00 Revenue concerned
industrialization project
2022 Hydrogen Energy Project R&D and settlement award -- 11433123.80 Revenue concerned
VH Project rental subsidy 2400000.00 3502124.77 Revenue concerned
Ningbo 2023 8th Batch National Manufacturing Single-
Category Champion Enterprise Reward -- 1500000.00 Revenue concerned
2024 Wuxi technical transformation funds 1630000.00 -- Revenue concerned
IoT-based diesel power system distribution collaboration
support key technology R&D subsidy funds 2000000.00 -- Assets concerned
Ningbo 2025 Key “Little Giant” Subsidy Funds 2000000.00 -- Revenue concerned
“Industries 4.0 grants” (Industrial 4.0 subsidies) 2709746.38 -- Assets concerned
Other subsidy projects 12489048.87 14763948.15 Related to assets /incomes
Total 64332685.51 84356626.01
55. Investment income
Items Current amount Previous amount
Long-term equity investment incomes by equity methods 1124396147.32 1481848406.86
Investment income of financial assets held for trading during
the holding period 8593762.36 43914146.08
101Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Items Current amount Previous amount
Investment income from disposing of long-term equity
investment 264044480.51 --
Investment income from disposing transactional financial
assets 34018616.93 16818201.49
Dividend income obtained during the period of holding other
equity instrument investment -- 18590.00
Income of de-recognition of financial assets measured at
amortized cost -- -3521058.98
Receivables financing discount de-recognition profits and
losses -2300079.55 -3439527.22
Debt restructuring revenue 5433965.62 -599671.45
Total 1434186893.19 1535039086.78
56. Proceed from fair value variance
Items Current amount Previous amount
Increase and decrease in fair value of tradable financial assets 61265098.76 -17300039.60
Total 61265098.76 -17300039.60
57. Credit impairment losses
Items Current amount Previous amount
Bad debt losses of accounts receivable -4491174.48 6297099.34
Bad debt losses of other receivables -336841601.16 -233309.61
Total -341332775.64 6063789.73
58. Asset impairment losses
Items Current amount Previous amount
Inventory depreciation losses -134267531.21 -162213478.31
Fixed asset impairment loss -12056984.04 -3647300.41
Impairment losses of construction in progress -36839003.67 --
Impairment loss of long-term equity investment -136596429.69 -8420913.32
Goodwill impairment losses -33125793.96 -86485586.18
Right-of-use asset impairment losses -3609952.82 --
Long-term deferred expense impairment losses -5484764.62 --
Impairment losses on other non-current assets -122887023.61 --
Impairment losses on other non-current assets -8596558.12 -146615749.63
Total -493464041.74 -407383027.85
59. Asset disposal gains
Amount included in
Items Current amount Previous amount current non-recurring
gains and losses
Profits from disposal of non-current assets 24692882.72 13291098.40 24692882.72
Non-current asset disposal losses -7035698.74 -2823757.81 -7035698.74
Total 17657183.98 10467340.59 17657183.98
102Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
60. Non-operating income
Amount included in current
Items Current amount Previous amount non-recurring gains and
losses
Payables without need for payment 1509736.47 2828169.51 1509736.47
Liquidated damages and compensation
income 2304679.77 892435.26 2304679.77
Others 137047.63 204273.23 137047.63
Total 3951463.87 3924878.00 3951463.87
61. Non-operating expenses
Amount included in current
Items Current amount Previous amount non-recurring gains and
losses
Non-current asset scraping losses 3328234.71 1790013.62 3328234.71
Of which: Abandonment of fixed assets loss 3328234.71 1790013.62 3328234.71
External donation expenditure 213500.00 327000.00 213500.00
Fines and late fees 222521.73 2982546.00 222521.73
Others 16995.32 31305.96 16995.32
Total 3781251.76 5130865.58 3781251.76
62. Income tax expenses
(1) Income tax expense statement
Items Current amount Previous amount
Current income tax expense 69143208.01 43361008.86
Deferred income tax expenses -6447989.94 -3317862.74
Total 62695218.07 40043146.12
(2) Accounting profit and income tax expense adjustment process
Items Current amount
Total profit 1163377187.22
Income tax expense calculated by statutory/applicable tax rate 174506578.08
Impact of subsidiaries applicable for different tax rates -95009303.14
Impact of adjusting income tax in previous periods 12137314.48
Impact of non-taxable income -192856274.29
Impact of non-deductible costs expenses and losses 11354238.92
Impact of deductible losses of unrecognized deferred income tax assets used previously -11416028.55
Impact of deductible temporary differences or deductible losses of unrecognized deferred
income tax assets this year 237870530.82
Impact of additional deduction expenses -73891838.25
Income tax expenses 62695218.07
63. Other comprehensive incomes
Refer to Note V 44 for details.
103Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
64. Cash flow statement
(1) Other cash received related to operating activities
Items Current amount Previous amount
Interest incomes 18893587.77 32663700.79
Government subsidy 41298955.44 46851928.27
Operational bill security deposit 118482.75 1100355.80
Weifu International Trade “platform trade” business fund
inflow 460416340.50 --
Others 51040717.03 29401358.02
Total 571768083.49 110017342.88
(2) Other cash paid to operating-related activities
Items Current amount Previous amount
Cash payment 484077701.87 408752372.86
Others 25190036.64 9769220.53
Total 509267738.51 418521593.39
(3) Other cash paid to financing-related activities
Items Current amount Previous amount
Lease payment 39164279.59 27764816.39
Repurchased circulating A-shares 100005328.00 --
Acquired subsidiary minority shareholders’ equity -- 191118200.00
Repurchased shares of restricted share incentive plan that have
not been unlocked -- 63567420.00
Payment of bank loan security deposit 60000000.00 --
Others 259439.42 9766.98
Total 199429047.01 282460203.37
65. Supplementary information of Cash Flow Statement
(1) Supplementary information of Cash Flow Statement
Supplementary information Current amount Previous amount
1. Net profits adjusted to cash flow from operating activities:
Net profits 1100681969.15 1717171190.56
Add: Provision for impairment of assets 834796817.38 401319238.12
Depreciation of fixed assets depletion of oil and gas assets and
depreciation of productive biological assets 621478772.99 592342504.85
Depreciation of right-of-use assets 35206119.01 21478575.57
Amortization of intangible assets 64207181.28 73374527.58
Amortization of long-term prepaid expenses 11178248.90 9487894.63
Losses from disposing fixed assets intangible assets and other long-term
assets (revenues marked with “-”) -17657183.98 -10467340.59
Losses of fixed asset scrapping (revenues marked with “-”) 3328234.71 1790013.62
Fair value change losses (revenues marked with “-”) -61265098.76 17300039.60
Financial costs (revenues marked with “-”) -15014255.29 -33424181.14
Investment losses (revenues marked with “-”) -1431053007.12 -1542599344.43
Decrease of deferred income tax assets (increase marked with "-") -6478843.86 8492788.42
Increase of deferred income tax liabilities (decrease marked with "-") 2148649.99 -12882114.41
Decrease of inventory (increase marked with "-") -286230497.41 -401241175.69
Decrease of operational receivables (increase marked with "-") -358197164.92 234141091.44
Increase of operational payables (decrease marked with "-") 493234536.91 500829903.35
104Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Supplementary information Current amount Previous amount
Others 2362543.89 5219037.26
Net cash flow from operating activities 992727022.87 1582332648.74
2. Major investing and financing activities uninvolving cash receipts
and expenditures:
Debt conversion to capital
Convertible company bonds due within one year
Fixed assets acquired under finance lease
3. Net change of cash and cash equivalents:
Closing balance of cash 2020913308.04 1756944672.22
Less: Cash balance at the end of last year 1756944672.22 2061986694.41
Add: Closing balance of cash equivalents --
Less: Cash equivalent balance at the end of last year --
Net increase of cash and cash equivalents 263968635.82 -305042022.19
(2) Composition of cash and cash equivalents
Items Closing balance Balance at the end of last year
XLVI. Cash 2020913308.04 1756944672.22
Of which: Cash on hand 8403.89 5360.59
Bank deposits for payment at any time 2020443988.43 1756884345.96
Other monetary assets for payment at any time 460915.72 54965.67
XLVII. Cash equivalents -- --
Of which: Bond investments due within three months -- --
XLVIII. Closing balance of cash and cash equivalents 2020913308.04 1756944672.22
Of which: Cash and cash equivalents with restricted use by the parent
company or group subsidiaries -- --
(3) Circumstances of limited scope of use but still presenting under the cash and cash equivalents:
No.
(4) Monetary funds not falling under cash and cash equivalents
Items Current amount Previous amount Causes
Bank deposit - principal of time deposit for 3 months Not meeting the definition of
or more and accrued interest 248770646.66 460783541.52 cash and cash equivalents
Other monetary funds - security deposit paid for
obtaining bank loan and accrued interest 60412602.74 --
Not meeting the definition of
cash and cash equivalents
Other monetary funds - security deposit paid for 20188696.29 20363281.63 Not meeting the definition ofissuing bank acceptance bills cash and cash equivalents
Other monetary funds - IRD performance bond 8291872.97 7583721.64 Not meeting the definition ofcash and cash equivalents
Other monetary funds - Mastercard security deposit 152.85 202231.29 Not meeting the definition ofcash and cash equivalents
Other monetary funds - L/G security deposit 273032.92 719003.22 Not meeting the definition ofcash and cash equivalents
Other currency funds - ETC frozen -- 4000.00 Not meeting the definition ofcash and cash equivalents
Total 337937004.43 489655779.30
(5) Classified presentation of the changes in the liabilities arising from financing activities from opening
balance to closing balance
Increase in current period Decrease in current period
Items Opening balance Closing balance
Cash changes Non-cash Non-cashchanges Cash changes changes
Short-term
borrowings 393120147.95 753489427.09 350081.07 582195845.88 -- 564763810.23
105Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Increase in current period Decrease in current period
Items Opening balance Closing balance
Cash changes Non-cash Cash changes Non-cashchanges changes
Long-term loans
(including those due 300010680.56 90000000.00 -- 202500000.00 106137.78 187404542.78
within one year)
Bonds payable -- 500000000.00 624657.53 -- -- 500624657.53
Leasing liabilities
(including those due 68009724.44 -- 73495157.60 37538717.34 540049.25 103426115.45
within one year)
Total 761140552.95 1343489427.09 74469896.20 822234563.22 646187.03 1356219125.99
66. Foreign currency monetary items
(1) Foreign currency monetary items
Items Foreign currency balance atthe end of period Conversion rate
Converted RMB balance at the
end of period
Monetary fund
Of which: USD 34352686.29 7.0288 241458161.40
EUR 26933318.52 8.2355 221809344.67
HKD 2050478.93 0.90322 1852033.58
JPY 16498011.00 0.044797 739061.40
DKK 18554907.04 1.1018 20443796.58
Accounts receivable
Of which: USD 2624634.10 7.0288 18448028.16
EUR 27564480.29 8.2355 227007277.43
DKK 8413769.95 1.1018 9270291.73
Other receivables
Of which: EUR 295314.81 8.2355 2432065.12
DKK 2186588.55 1.1018 2409183.26
Short-term borrowings
Of which: EUR 3001854.84 1.1018 3307443.66
DKK 22435982.26 8.2355 184771531.90
Accounts payable
Of which: USD 1016854.40 7.0288 7147266.21
EUR 23445576.42 8.2355 193086044.61
JPY 10304463.00 0.044797 461609.03
DKK 12392867.24 1.1018 13654461.13
CHF 124612.57 8.8510 1102945.86
Other payables
Of which: EUR 13068.91 8.2355 107629.01
DKK 896112.34 1.1018 987336.58
Non-current liabilities due within 1 year
Of which: USD 57248.88 7.0288 402390.93
EUR 801133.65 8.2355 6597736.17
DKK 2757142.29 1.1018 3037819.38
Lease liabilities
Of which: EUR 2221467.63 8.2355 18294896.67
DKK 16049095.45 1.1018 17682893.37
(2) Description on overseas operating entities
The subsidiary IRD was founded in Denmark in 1990. The company obtained 66.00% equity of this
company in April 2019 through cash purchase of equity and increased stake in this company by 34.00% in
106Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
October 2020 through cash purchase of equity. After increasing holding the company acquired 100.00% equity of
the company. The company adopts DKK as its accounting standard currency mainly specialized in the R&D
production and sales of fuel cell parts.The subsidiary Borit was founded in Belgium in 2010. The company obtained 100.00% equity of this
company in November 2020 through cash purchase of equity. The company adopts EUR as its accounting
standard currency mainly specialized in the R&D production and sales of fuel cell parts.The subsidiary VHIO was founded in Italy in 2000. The company obtained 100.00% equity of this company
in October 2022 through cash purchase of equity. The company adopts EUR as its accounting standard currency
mainly specialized in the R&D production and sales of vacuum and hydraulic pumps.
67. Leasing
(1) The company acts as a lessee
For details of right-of-use assets and lease liabilities refer to the Note V 17 and V 36.Recorded in this year’s profits and losses
Recorded in This Year’s Profits and Losses
Items
Reporting item Amount
Interest on leasing liabilities Financial expenses 3760196.75
Short-term leasing expense (applicable to simplified
treatment) Operating costs period expenses 8629253.86
Note: “Short-term lease expenses” in the above table exclude lease-related expenses with a lease period of
less than one month: “low-value asset lease expenses” exclude short-term lease expenses of low-value assets in
“short-term lease expenses”.Cash outflow related to leasing
Items Cash Flow Category Amount this year
Cash paid to repay principal and interest on leasing
liabilities Cash outflow from financing activities 37538717.34
Payment of lease security deposit Cash outflow from financing activities 1625562.25
Payment made for short-term lease and low-value assets
(for simplified processing) Cash outflow from operating activities 8629253.86
Total —— 47793533.45
(2) The company as the lessor
Information concerning operating lease
A. Recorded in this year’s profits and losses
Recorded in This Year’s Profits and Losses
Items
Reporting item Amount
Rental income Other business incomes: 26830032.46
Total 26830032.46
B. Collection status of lease receipts
Period Undiscounted lease receivables to be received
First year after the balance sheet date 27230474.32
2nd year after the balance sheet date 24632336.82
3rd year after the balance sheet date 20292056.80
4th year after the balance sheet date 20416152.04
5th year after the balance sheet date 19516977.43
Remaining year 121247199.65
107Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Period Undiscounted lease receivables to be received
Total 233335197.06
VI. R&D expenditure
1. Amount of R&D expenditure incurred in the current period
Items Current amount Previous amount
Staff salary 312319917.36 288363791.43
Direct investment 203964686.69 194751232.70
Depreciation and amortization 85409551.57 119233302.47
Other expenses 93859236.27 87910647.94
Total 695553391.89 690258974.54
Of which: Expensed R&D expenditure 695553391.89 690258974.54
Capitalized R&D expenditure -- --
Total 695553391.89 690258974.54
VII. Equity in other entities
1. Composition of enterprise group
Registered Shareholding ratio
Name of capital (ten Main Registered (%)
subsidiaries thousand business Business nature Acquisition mode
Yuan) place
place
Direct Indirect
Weifu Jinning 34628.68 Nanjing Nanjing Internal combustion Enterprise merge underengine parts 80.00 -- the same control
Weifu Lida 50259.63 Wuxi Wuxi Automotive exhaust 100.00 -- Enterprise merge underconverters mufflers the same control
Weifu Mashan 16500 Wuxi Wuxi Internal combustion 100.00 -- Establishment byengine parts investment
Weifu Chang’an 21000 Wuxi Wuxi Internal combustion 100.00 -- Establishment byengine parts investment
Weifu
International 3000 Wuxi Wuxi Trading 100.00 -- Enterprise merge under
Trade the same control
Weifu Schmidt 7600 Wuxi Wuxi Internal combustion 66.00 -- Establishment byengine parts investment
Weifu Tianli Internal combustion Business combination11136 Ningbo Ningbo engine parts 98.83 1.17 not under the samecontrol
Weifu Autocam
USD3310 Wuxi Wuxi Internal combustion
Business combination
engine parts 51.00 -- not under the samecontrol
Weifu Lida 300.00 Wuhan Wuhan Automotive exhaust(Wuhan) converters mufflers -- 60.00
Establishment by
investment
Weifu Lida 5000 Chongqing Chongqing Automotive exhaust Establishment by(Chongqing) converters mufflers -- 100.00 investment
Weifu Lida
(Nanchang) 3000 Nanchang Nanchang
Automotive exhaust -- 100.00 Establishment byconverters mufflers investment
Weifu Autosmart 16500 Wuxi Wuxi Intelligent vehicle -- 66.00 Establishment bydevices investment
Weifu Lianhua 2000 Fuzhou Fuzhou Intelligent vehicle Establishment bydevices -- 40.00 investment
108Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Registered Shareholding ratio
Name of capital (ten Main Registered
subsidiaries thousand business place Business nature
(%) Acquisition mode
Yuan) place Direct Indirect
Weifu Electric Business combination
Drive USD2000 Wuxi Wuxi Wheel hub motors 80.00 -- not under the same
control
Weifu Qinglong 50000 Wuxi Wuxi Fuel cell parts 45.00 30.00 Establishment byinvestment
Yiwo Automotive
13400 Wuxi Wuxi Vacuum and hydraulic
Business combination
pumps 100.00 -- not under the samecontrol
Weifu Zhigan 35000 Wuxi Wuxi Intelligent vehicledevices 61.43 --
Establishment by
investment
Weifu Yite EUR1213.60 Wuxi Wuxi Fuel cell parts 51.00 -- Establishment byinvestment
Weifu Baolong 40000 Nanjing Nanjing Internal combustion -- 55.00 Establishment byengine parts investment
SPV DKK13009 Denmark Denmark Investment 100.00 -- Establishment byinvestment
IRD Business combination
DKK12732 Denmark Denmark Fuel cell parts -- 100.00 not under the same
control
IRD USA Business combination
USD1543 USA USA Fuel cell parts -- 100.00 not under the same
control
Borit Business combination
EUR1183 Belgium Belgium Fuel cell parts -- 100.00 not under the same
control
Borit USA Business combination
USD5 USA USA Fuel cell parts -- 100.00 not under the same
control
VHIO
EUR500 Italy Italy Vacuum and hydraulic
Business combination
pumps -- 100.00 not under the samecontrol
2. Changes in consolidation scope for other reasons
(1) In February 2025 the company and the associated enterprise Voith HySTech GmbH jointly invested to
establish Weifu Yite Hydrogen Energy Technology (Wuxi) Co. Ltd. The registered capital of Weifu Yite at its
establishment was EUR 12136000 of which the company subscribed capital of EUR 6189360 with a
shareholding ratio of 51%; Voith HySTech GmbH subscribed capital of EUR 5946640 with a shareholding ratio
of 49%. According to the articles of association of Weifu Yite and relevant investment agreements the company
can exercise control over Weifu Yite. Since February 2025 the company has included it in the consolidation scope
of the consolidated financial statements.
(2) In July 2025 the subsidiary Weifu Jinning and Shanghai Baolong Automobile Technology (Anhui) Co.
Ltd. jointly invested to establish Weifu Baolong (Nanjing) Technology Co. Ltd. the registered capital of Weifu
Baolong at its establishment was RMB 400.00 million and the company subscribed capital of RMB 220 million
with a shareholding ratio of 55%; Shanghai Baolong Automobile Technology (Anhui) Co. Ltd. subscribed capital
of RMB 180.00 million with a shareholding ratio of 45%. According to the articles of association of Weifu
Baolong and relevant investment agreements the company can exercise control over Weifu Baolong. Since July
2025 the company has included it in the consolidation scope of the consolidated financial statements.
109Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
3. Equity held by subsidiary’s minority shareholders
(1) Important non-wholly owned subsidiaries
Minority Current profit and loss Dividends distributed to Balance of minority
Name of subsidiaries shareholders’ attributable to minority minority shareholders in shareholder’s equity at the
shareholding ratio shareholders the current period end of period
Weifu Jinning 20.00% 9293325.88 7312597.73 414553309.44
(2) Important financial information of important subsidiaries
Closing balance
Name of
subsidiaries Current assets Non-current assets Total assets Current liability Non-currentliabilities Total liabilities
Weifu Jinning 1338912784.54 441611115.66 1780523900.20 354865886.53 23106628.07 377972514.60
(Continued)
Balance at the end of last year
Name of
subsidiaries Current assets Non-currentassets Total assets Current liability
Non-current
liabilities Total liabilities
Weifu Jinning 1338912784.54 441611115.66 1780523900.20 354865886.53 23106628.07 377972514.60
(Continued)
Amount this year
Name of subsidiaries
Operating revenue Net profits Total comprehensive Cash flow fromincomes operating activities
Weifu Jinning 633360460.18 95576153.00 95576153.00 41629636.59
(Continued)
Amount last year
Name of subsidiaries
Operating revenue Net profits Total comprehensive Cash flow fromincomes operating activities
Weifu Jinning 641568618.84 121876628.75 121876628.75 103197928.04
Descriptions: Main financial data of subsidiary Weifu Jinning includes the financial data after its
consolidation of controlling subsidiary Weifu Baolong.
4. Significant restrictions on use of assets and debt repayment
No.
5. Equity in joint ventures or associated enterprises
(1) Associated enterprises
Shareholding ratio Accounting
Main (%) method for
Name of affiliates business Registeredplace Business nature
investment of
place joint venturesDirect Indirect or associated
enterprises
Wuxi Weifu Environmental Protection Wuxi Wuxi
Catalyst Co. Ltd. Catalyst -- 49.00 Equity method
Wuxi Wuxi Internal Equity method
Bosch Powertrain Co. Ltd. combustion engine 32.50 1.50
accessories
Shanghai Shanghai Internal Equity method
Zhonglian Automotive Electronics Co. Ltd. combustion engine 20.00 --
accessories
110Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Name of affiliates Main Registered Business nature Shareholding ratio Accountingbusiness place (%) method for
place investment of
Wuxi Weifu Precision Machinery Wuxi Wuxi Internal Equity method
Manufacturing Co. Ltd. combustion engine 20.00 --accessories
Changchun Xuyang Weifu Automotive Parts Changchun Changchun
Technology Co. Ltd. Auto parts -- 34.00
Equity method
Precors GmbH Germany Germany Fuel cell parts -- 43.39 Equity method
Lezhuo Bowei Hydraulic Technology Shanghai Shanghai
(Shanghai) Co. Ltd. Auto parts 50.00 --
Equity method
Wuxi Zhuowei Times High-tech Co. Ltd. Wuxi Wuxi Professionaltechnical service -- 39.00
Equity method
Voith HySTech GmbH Germany Germany Hydrogen storage Equity method
system technology -- 40.00
R&D
Note: Description of the shareholding ratio in joint ventures or associated enterprises different from voting
right ratio: No.
(2) Main financial information of important associated enterprises
Year-end balance/current amount
Items Weifu Environmental
Protection Bosch Powertrain Zhonglian Automotive
Current assets 3492136152.91 13357799513.32 1442357420.24
Non-current assets 472000993.97 3641992480.33 8992710110.46
Total assets 3964137146.88 16999791993.65 10435067530.70
Current liability 1531666962.93 6019430062.79 3444430.21
Non-current liabilities 184323838.72 203083647.18 9252984.32
Total liabilities 1715990801.65 6222513709.97 12697414.53
Net assets 2248146345.23 10777278283.68 10422370116.17
Minority shareholder’s equity -- -- --
Attributed to the shareholders’ equity of the
parent company 2248146345.23 10777278283.68 10422370116.17
Portion of net assets calculated as per
shareholding ratio 1101591709.17 3664274616.45 2084474023.24
Adjustment matters:
- Goodwill -- 267788761.35 1407265.96
- Unrealized profits of internal transaction -- -7431401.01 --
- Other -- -0.28 --
Book value of equity investment in associated
enterprises 1101591709.17 3924631976.51 2085881289.20
Fair value of equity investment of associated
enterprise with publicly quoted price exists -- -- --
Operating revenue 4056231656.75 10142531993.13 29696317.62
Net profits 422874583.03 1769213245.05 2570452359.73
Net profits from discontinued operation -- -- --
Other comprehensive incomes -- -- --
Total comprehensive incomes 422874583.03 1769213245.05 2570452359.73
Dividends received from associated enterprises
in the current period 117600000.00 214397603.56 300000000.00
(Continued)
Year-beginning balance/last-year amount
Items Weifu Environmental
Protection Bosch Powertrain Zhonglian Automotive
Current assets 3041695695.74 12910623291.25 119577141.22
Non-current assets 472221845.21 3547389964.65 9254084391.23
111Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Year-beginning balance/last-year amount
Items Weifu Environmental
Protection Bosch Powertrain Zhonglian Automotive
Total assets 3513917540.95 16458013255.90 9373661532.45
Current liability 1270209456.66 7011624627.65 14640927.97
Non-current liabilities 182387083.75 169080572.93 7102848.04
Total liabilities 1452596540.41 7180705200.58 21743776.01
Net assets 2061321000.54 9277308055.32 9351917756.44
Minority shareholder’s equity -- -- --
Attributed to the shareholders’ equity of the
parent company 2061321000.54 9277308055.32 9351917756.44
Portion of net assets calculated as per
shareholding ratio 1010047290.27 3154284738.81 1870383551.29
Adjustment matters:
- Goodwill -- 267788761.35 1407265.96
- Unrealized profits of internal transaction -- -8111869.63 --
- Other -- -0.28 --
Book value of equity investment in associated
enterprises 1010047290.27 3413961630.25 1871790817.25
Fair value of equity investment of associated
enterprise with publicly quoted price exists -- -- --
Operating revenue 3823507561.86 11262081616.84 32829998.51
Net profits 439225033.08 2720732465.47 2261333602.60
Net profits from discontinued operation -- -- --
Other comprehensive incomes -- -- --
Total comprehensive incomes 439225033.08 2720732465.47 2261333602.60
Dividends received from associated enterprises
in the current period 122500000.00 527829600.44 266000000.00
Other descriptions: Others of adjustment events “RMB -0.28”: Tail difference.
(3) Financial information summary of unimportant joint ventures and associated enterprises
Items Closing balance/current period Balance at the end of lastamount year/amount in last period
Associated enterprises:
Total investment book value 187265056.88 739299140.82
Total of the following items calculated as per
shareholding ratio
- Net profits -320025021.56 -113113361.13
- Other comprehensive incomes -- --
- Total comprehensive incomes -320025021.56 -113113361.13
(4) Description of significant restrictions on the ability of joint ventures or associated enterprises to transfer funds
to the Company
No.
(5) Unrecognized excess losses incurred by joint ventures or associated enterprises
No.
(6) Unconfirmed commitment regarding joint venture investment:
No.
(7) Contingent liabilities related to joint venture or associated enterprise investments:
No.
112Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
6. Important joint management
No.VIII. Government subsidies
1. Government subsidy recognized by receivables at the end of the reporting period
No.
2. Liability items related to government grants
Amount
recognized
Amount of as non- Amount Other changes Related to
Account Opening balance subsidies added operating recorded inother incomes in during the Closing balance assets /in current period income in
the current current period
current period incomes
period
Deferred
incomes 73326831.65 20039612.90 -- 28739370.56 195158.83 64822232.82
Assets
concerned
Deferred Related to
incomes 2708708.63 580600.00 -- 2205154.12 -- 1084154.51 assets /incomes
Deferred 75383795.46 1693851.67 -- 14171496.98 129483.66 63035633.81 Revenueincomes concerned
Long-term
accounts 8740000.00 -- -- 960000.00 -- 7780000.00 Revenue
payable concerned
Total 160159335.74 22314064.57 -- 46076021.66 324642.49 136722021.14 ——
3. Government grants recognized in current profit or loss
Account Current amount Previous amount
Other revenues 64332685.51 84356626.01
Total 64332685.51 84356626.01
IX. Risks associated with financial instruments
1. Various risks arising from financial instruments
Main corporate financial instruments include monetary funds structured deposits receivables equity
instrument investments wealth management products borrowings payables etc. Refer to relevant items of Note
V for details of financial instruments. Risks associated with these financial instruments and risk management
policies adopted by the company to reduce these risks are described below.The company is engaged in risk management for the purpose of seeking balance between risk and return
minimizing the negative impact of risk on corporate business performance and maximizing the interests of
shareholders and other investors. Based on this risk management target the basic strategy of corporate risk
management is to determine and analyze various risks confronted by the company establish proper risk tolerance
bottom line implement risk management promptly and reliably supervise various risks and control risks within a
113Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
limited range.During operation the company is mainly exposed to relevant risks of financial instruments including credit
risk market risk and liquidity risk. The company board of directors is fully responsible for determining risk
management target and policy and holds ultimate responsibility for risk management objectives and policies.Compliance department and finance department manage and monitor these risk exposures ensuring the above
risks controlled within a limited range.
(1) Credit risk.
Credit risk refers to the risk that one party of financial instrument fails to perform obligations causing
financial losses of the other party. Company credit risk is mainly derived from monetary funds structured deposits
notes receivable accounts receivable other receivables etc. The management level has formulated appropriate
credit policies and continuously monitored the credit risk exposures.The monetary funds and structured deposit held by the company are mainly deposited in financial institutions
such as commercial banks and the management level believes these commercial banks have high reputation and
asset status with low credit risks. The company adopts quota policy to avoid credit risk of any financial institution.Regarding accounts receivable other receivables and notes receivable the company has established relevant
policies to control credit risk exposure. To prevent such risks the company has formulated new customer credit
evaluation system and old customer credit sale balance analysis system. New customer credit evaluation system
refers that the company will conduct customer background investigation on new customers according to
established procedures so as to determine whether to grant credit sale limit to these customers as well as the
credit sale limit size and credit period. Accordingly the company has set credit sale limit and credit period for
each customer and this limit is the maximum limit that does not require extra approval. The old customer’s credit
sale balance analysis system refers that after receiving purchase order from an old customer the company will
check the order amount against the outstanding balance of this customer’s account. If the sum of the two exceeds
the customer’s credit sale limit the company can only grant credit sale to it upon extra approval otherwise it must
require paying the corresponding amount in advance. Additionally in terms of the credit sale occurred the
company shall ensure its overall credit risk within a controllable range by analyzing and reviewing the accounts
receivable risk warning monthly report.The maximum credit risk exposure borne by the company is the book amount of each financial asset in the
balance sheet.
(2) Market risk
The market risk of financial instruments refers to the risk of fair value or future cash flow fluctuation of
financial instruments due to market price change mainly including interest rate risk exchange rate risk and other
price risks.
1) Interest rate risk
Interest rate risk refers to the risk of fluctuation in the financial status and cash flow of the company due to
market interest rate changes. Corporate interest rate risk is mainly associated with bank loans. To reduce the
impact of interest rate risk fluctuation the company chooses floating or fixed interest rate based on the expected
direction of interest rate changes namely it chooses a fixed exchange rate if the interest rate is forecast to rise in
114Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
the future period; it chooses a floating exchange rate if the interest rate is forecast to decline in the future period.To reduce the adverse impact caused by forecast inconsistent with reality the company chooses short-term
borrowings for the liquidity capital demand and specially stipulates on early repayment terms and conditions.
2) Exchange rate risk
Exchange rate risk refers to the risk of losses due to exchange rate fluctuations. The exchange rate risk borne
by the company is mainly related to USD EUR CHF JPY HKD and DKK. Except that the machinery equipment
purchasing of parent company and Weifu Autocam material purchasing of parent company technical service fee
and trademark usage fee payment of parent company import and export trade of Weifu Guomao IRD operation
Borit operation and VHIO operation are mainly denominated in USD EUR CHF JPY HKD and DKK all other
major business activities of the company are priced and settled in CNY. Because foreign currency financial assets
and liabilities account for a small proportion in total assets the corporate management believes that the exchange
rate risk of financial instruments is quite low.As of 31 December 2025 except that the assets or liabilities in the table below are denominated in foreign
currency the corporate assets and liabilities were all CNY balances.As of 31 December 2025 the breakdown of corporate foreign currency assets was as follows:
Foreign currency
Items balance at the end of Conversion rate Converted RMB balance Proportion to assets
period at the end of period (%)
Monetary fund
Of which: USD 34352686.29 7.0288 241458161.40 0.81
EUR 17933318.52 8.2355 147689844.67 0.50
HKD 2050478.93 0.90322 1852033.58 0.01
JPY 16498011.00 0.044797 739061.40 0.002
DKK 18554907.04 1.1018 20443796.58 0.07
Accounts receivable
Of which: USD 2624634.10 7.0288 18448028.16 0.06
EUR 27711568.15 8.2355 228218619.50 0.77
DKK 5669161.87 1.1018 6246282.55 0.02
Other receivables
Of which: EUR 175606.54 8.2355 1446207.66 0.005
DKK 633735.90 1.1018 698250.21 0.002
Total proportion to assets 2.25
As of 31 December 2025 the breakdown of corporate foreign currency liabilities was as follows:
Foreign currency
Items balance at the end of Conversion rate Converted RMB balance Proportion to
period at the end of period liabilities (%)
Accounts payable
Of which: USD 1016854.40 7.0288 7147266.21 0.08
EUR 22837801.56 8.2355 188080714.75 2.14
JPY 10304463.00 0.044797 461609.03 0.01
DKK 12392867.24 1.1018 13654461.13 0.16
CHF 124612.57 8.8510 1102945.86 0.01
Other payables
Of which: USD 356753.39 7.0288 2507548.23 0.03
EUR 13068.91 8.2355 107629.01 0.001
DKK 896112.34 1.1018 987336.58 0.01
Non-current liabilities due within 1
year
115Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Foreign currency
Items balance at the end of Conversion rate Converted RMB balance Proportion to
period at the end of period liabilities (%)
Of which: USD 57248.88 7.0288 402390.93 0.005
EUR 801133.65 8.2355 6597736.17 0.07
DKK 2757142.29 1.1018 3037819.38 0.03
Lease liabilities
Of which: EUR 2221467.63 8.2355 18294896.67 0.21
DKK 16049095.45 1.1018 17682893.37 0.20
Total proportion to liabilities —— —— —— 2.95
3) Other price risks
The equity instrument investments held by the company classified as trading financial assets and other non-
current financial assets are measured at fair value on the balance sheet date. The expected price fluctuation of this
part of investment will accordingly affect the fair value change profits and losses of the company.Furthermore upon the review and adoption at the 8th meeting of the 10th board of directors the company
has entrusted its own idle funds for wealth management and therefore the company bears the risk of defaulting on
the wealth management products at maturity and unable to recover the principal. To cope with this risk the
company has set forth the Fund Wealth Management System stipulating on the entrusted wealth management
authority review process reporting system entrusted party selection daily monitoring and verification
accountability and other aspects in details in order to effectively prevent investment risks and ensure fund security.To reduce the adverse impact of unforeseeable factors it has conducted short and mid-term allocation in the
investment period and in principle the investment product period shall not exceed 5 years to the maximum; in
terms of investment varieties they include bank wealth management products trust plans of trust companies asset
management plans of asset management companies various products issued by securities companies fund
companies and insurance companies.
(3) Liquidity risk
Liquidity risk refers to the risk of fund shortage that occurs when the company fulfills the obligation of
settlement by cash payment or other financial assets. The corporate target is to ensure sufficient cash to repay
maturing debts and in this regard the company has set a financial control department to centrally control this risk.On one hand the financial control department ensures that the company has sufficient funds to repay debts under
all reasonable forecasts by monitoring cash balances negotiable securities realizable at any time and rolling
forecast of cash flow for the next 12 months; on the other hand by establishing a perfect bank-enterprise
relationship credit limits credit varieties and credit terms are designed rationally so as to ensure sufficient bank
credit limit and meet various short-term financing needs of the company.
2. Hedging
No.
116Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
3. Financial assets
(1) Transfer method classification
Transfer Amount of transferred Basis for judging de-
method Nature of transferred financial assets financial assets De-recognition recognition
Bill Bank acceptance bills not matured in Almost all of its risks and
endorsement receivables financing 749479357.46 De-recognition rewards have beentransferred
Bill Undue commercial acceptance bills in the Almost all risks and
endorsement notes receivable 6228142.15 Non-derecognized rewards not transferred
Discounting of Bank acceptance bills not matured in Almost all of its risks and
bill receivables financing 746484910.79 De-recognition rewards have beentransferred
Total 1502192410.40
(2) Financial assets de-recognized due to transfer
Items Financial asset transfer approach Amount of de-recognized financialassets Losses concerning de-recognition
Receivables financing Bill endorsement 749479357.46 --
Receivables financing Discounting of bill 746484910.79 2300079.55
Total —— 1495964268.25 2300079.55
(3) Continuous involvement in the transferred financial assets
No.X. Fair value disclosure
1. Fair value at the end of period of assets and liabilities measured at fair value
Ending fair value
Items Tier 1 fair value Tier 2 fair value Tier 3 fair value
measurement measurement measurement Total
XLIX. Continuous fair value measurement 888391.56 5996085876.22 5996974267.78
(2) Trading financial assets
1. Financial assets at fair value and through
current profit or loss 888391.56 -- 2333769763.80 2334658155.36
(1) Equity instrument investment 888391.56 -- -- 888391.56
(2) Other debt instrument and equity
instrument investments -- -- 2333769763.80 2333769763.80
(II) Other non-current financial assets
1. Financial assets at fair value and through
current profit or loss -- -- 751258396.69 751258396.69
(1) Equity instrument investment -- -- 751258396.69 751258396.69
(III) Receivables financing
1. Financial assets measured at fair value with
changes included in other comprehensive -- -- 1861919025.73 1861919025.73
incomes
(IV) Other equity instrument investments
1. Financial assets at fair value and through
current profit or loss -- -- 1049138690.00 1049138690.00
Total assets continuously measured at fair
value 888391.56 -- 5996085876.22 5996974267.78
Total liabilities continuously measured at
fair value -- -- -- --
117Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Ending fair value
Items Tier 1 fair value Tier 2 fair value Tier 3 fair value
measurement measurement measurement Total
L. Non-continuous fair value measurement -- -- -- --
Total assets measured at fair value on a
non-recurring basis -- -- -- --
Total liabilities measured at fair value on a
non-recurring basis -- -- -- --
2. Basis for determining market price of continuous and non-continuous first-level fair value measurement
projects
On 31 December 2025 company transactional financial assets equity instrument investment were the held
CAMC stock (stock code: 600375) and the basis for determining the closing fair value was the closing price on
31 December 2025.
3. Qualitative and quantitative information of valuation techniques and important parameters adopted for
continuous and non-continuous third-level fair value measurement projects
(1) Receivables financing
Regarding this part of financial assets the company determined their fair value by discounted cash flow
valuation technique. Among them important unobservable input values mainly included discount rate contract
cash flow maturity period etc. Cash flows with a contract expiration period of less than 12 months (included)
were not discounted with the cost as their fair value.
(2) Other equity instrument investments
For this part of financial assets due to the lack of market liquidity the company determined their fair value
by replacement cost method. Among them important unobservable input values mainly included financial data of
the investee company etc.
(3) Other debt instrument and equity instrument investments
For this part of financial assets the company determined by discounted cash flow valuation technique.Among them important unobservable input values mainly included expected annualized yield risk coefficient etc.XI. Associated parties and associated transactions
1. Parent company of the company
Shareholding
Name of parent company Registered place Business nature Registered capital ratio of parent
Voting right ratio of
(RMB ten thousand) company to the parent company to
company (%) the company (%)
Wuxi Industrial Group Wuxi State-owned assetoperation 600853.10 22.05 22.05
Descriptions on the parent company’s shareholding ratio of the company: As of 31 December 2025 Wuxi
Industry Group had held 22.05% shares in the company.Description on the parent company of the company: Wuxi Industrial Group is an enterprise controlled by the
118Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
State-owned Assets Supervision and Administration Commission of Wuxi Municipal People’s Government with
business scope: foreign investment using own assets; housing lease service; self-operation and agent for import
and export business of various commodities and technologies (except the commodities and technologies restricted
or prohibited for enterprise import and export by the state) domestic trade (excluding projects restricted or
prohibited by the state). (For the projects subject to the approval according to law the business activities must not
be carried out without the approval the relevant department).The ultimate controller of the company is Wuxi State-owned Assets Supervision and Administration
Commission.
2. Subsidiaries of the company
Refer to Note VII 1 Composition of enterprise group for details.
3. Joint ventures and associated enterprises of the company
Refer to the Note VII 5 Equity in joint ventures or associated enterprises for joint ventures and associated
enterprises of the company.
4. Other associated parties
Name of other associated parties Relationships between other associated parties withthe company
German Bosch The second largest shareholder of the company
Wuxi Sunan Urban Public Distribution Co. Ltd. (hereinafter referred to as
Urban Public Distribution) Enterprises controlled by parent company
Falcon Tech Co. Ltd. (hereinafter referred to as Falcon) Enterprises controlled by parent company
Wuxi IoT Innovation Center Co. Ltd. (hereinafter referred to as Wuxi IoT) Enterprises controlled by parent company
Jiangsu Wuxi National Grain Reserve Co. Ltd. (hereinafter referred to as
Wuxi Grain Reserve) Enterprises controlled by parent company
Wuxi Grain Group Co. Ltd. (hereinafter referred to as Grain Group) Enterprises controlled by parent company
Wuxi Security Service Co. Ltd. (hereinafter referred to as Wuxi Security) Enterprises controlled by parent company
The IT Electronics Eleventh Design & Research Institute Scientific and Enterprise directly or indirectly controlled by Taiji
Technological Engineering Co. Ltd. (hereinafter referred to as Eleventh Industrial with company-related personnel serving as
Technology) the director
Wuxi Autolink Intelligent Manufacturing Co. Ltd. (hereinafter Subsidiary of Autolink associated enterprise of the
referred to as Autolink Intelligent) company
Wuxi Junhai Xichan Investment Management Co. Ltd. (hereinafter
referred to as Junhai Xichan) Enterprises controlled by parent company
Shenzhen Deqi Consulting Co. Ltd. (hereinafter referred to as Enterprise controlled by company-affiliated natural
Shenzhen Deqi) person
Key management personnel Company director and senior management personnel
5. Conditions of related party transactions
(1) Associated transaction of purchasing and selling commodities providing and accepting labor service
Purchase of goods/acceptance of labor service
Associated party Affiliated transaction content Current amount Previous amount
Weifu Environmental Protection Goods and labor services 731999572.63 800690587.70
119Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Associated party Affiliated transaction content Current amount Previous amount
Bosch Powertrain Goods and labor services 302613516.59 254181294.44
German Bosch Goods and labor services 215979450.95 245990950.13
Weifu Precision Machinery Goods and labor services 20135744.69 33594562.90
Falcon Goods and labor services 200756.74 77747.81
Eleventh Technology Goods and labor services 738113.21 71698.12
Wuxi Security Goods and labor services -- 3362.26
Wuxi Grain Group Goods and labor services 2066263.60 --
Voith HySTech GmbH Goods and labor services 1796407.29 --
Lezhuo Bowei Goods and labor services 6860.00 --
Changchun Xuyang Goods and labor services 5287.00 --
Sales of goods/service provision
Associated party Affiliated transaction content Current amount Previous amount
German Bosch Goods and labor services 2259396102.93 2078120537.08
Bosch Powertrain Goods and labor services 1379122013.36 1352740802.27
Lezhuo Bowei Goods and labor services 9412044.98 10940310.56
Changchun Xuyang Goods and labor services 23694038.83 5761578.80
Weifu Precision Machinery Goods and labor services 1287009.00 1201055.62
Weifu Environmental Protection Goods and labor services 4221805.33 550946.52
Zhuowei High-tech Goods and labor services 379314.47 113776.50
Wuxi Grain Reserve Goods and labor services 309752.83 214601.77
(2) Related entrusted management/entrusting management
No.
(3) Related contracting
No.
(4) Associated lease
The company as the lessor
Name of lessee Type of leased assets Rental income recognized in Rental income recognized inthe current period the last period
Weifu Environmental Protection House 2008904.38 2006634.05
Lezhuo Bowei House and equipment 3200028.00 3148672.50
Bosch Powertrain Parking lot 530400.00 499200.00
Junhai Xichan Office location 18348.64 --
German Bosch Equipment -- 38532.00
Description of related lease:
1) Subsidiary Weifu Lida and associated enterprise Weifu Environmental Protection signed a house lease
contract on Weifu Environmental Protection leasing Weifu Lida’s plant houses located at No.9 Lingjiang Road
Xinwu District Wuxi. In 2025 Weifu Lida recognized rental income of RMB 2008904.38.
2) Subsidiary Weifu Jinning signed a house lease contract with associated enterprise Le-HydrauliX and Le-
HydrauliX leased partial factory buildings of Weifu Jinning located at No.12 North Liuzhou Road Pukou District
Nanjing with a lease period from 1 January 2025 to 31 December 2025. Weifu Jinning recognized factory
building lease income of RMB 3200028.00 in 2025.The company as the lessee
120Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Name of lessor Type of leased assets Rental fee recognized in the Rental fee recognized in thecurrent period last period
Autolink Intelligent House and equipment 4047300.00 2698200.00
Description on related lease: Subsidiary Weifu Zhigan signed a lease contract with Autolink Intelligent on
Autolink Intelligent renting its property located at No.8 Huayun Road Wuxi (including factory buildings parking
lots and ancillary office furniture facilities equipment etc.) as a whole to Weifu Zhigan with a lease period from
1 June 2024 to 31 May 2026. Weifu Intelligent Sensor recognized property lease expense of RMB 4047300.00
for the year 2025.
(5) Details of related guarantees
The company as the guarantor
Amount guaranteed Whether theGuaranteed party (RMB ten thousand) Guarantee start date Guarantee due date guarantee has beenfulfilled
Yiwo Automotive 1000.00 2022.12.12 -- No
VHIO 7784.00 18.7.2023 2027.7.31 No
VHIO 5309.00 18.7.2023 2028.2.15 No
VHIO 30706.00 2024.4.9 -- No
IRD 2490.00 2025.9.15 2026.9.15 No
Description of related security:
The company bore a guarantee liability security with the total amount of no more than RMB 10000000 for
all debts (including principal creditor’s right and interest liquidated damages damage awards and expenses for
realizing creditor’s right) in the sales contract signed between subsidiary Yiwo Automotive and Shenzhen BYD
Supply Chain Management Co. Ltd. with the security period of two years from the master contract signing date
to the expiration of debt performance period under the master contract or till 30 December 2026 (inclusive)
(whichever is earlier).The company provided three business performance guarantees to the wholly-owned subsidiary VHIO
including letters of guarantee and more detailing: a guarantee amount of RMB 77840000 occurred on 18 July
2023 with a guarantee period of three years since the date when Italian tax authority received the letter of
guarantee; a guarantee amount of RMB 53090000 occurred on 16 November 2023 with a guarantee period: six
months since the date when each guarantee debt was due but no later than 30 June 2028; a guarantee amount of
RMB 307060000 occurred on 9 April 2024 with a guarantee period of two years since the date when VHIO
completed performance of all supplier obligations or meeting the indicator requirements stipulated in the letter of
guarantee.The company provided loan guarantee with the guarantee amount of RMB 24900000 to the wholly-owned
subsidiary IRD and this contract took the security deposit account of the company opened at China CITIC Bank
Wuxi Branch and the monetary funds in the account as the pledged property providing pledge guarantee for IRD
debts.
(6) Associated party fund borrowing
No.
(7) Associated party asset transfer and debt restructuring
No.
121Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
(8) Key management personnel remuneration
Items Current amount (RMB ten Last period amount (RMB tenthousand) thousand)
Key management personnel remuneration 798.00 1079.00
(9) Related party commitment
No.
(10) Other associated transactions
Associated party Name of projects Current amount Previous amount
Bosch Powertrain Paid technical commission fee etc. 3029904.54 --
German Bosch Technical service fee payable etc. 2056330.99 193000.00
German Bosch Paid technical commission fee etc. 4272142.00 2724741.59
German Bosch Purchase of fixed assets 13335398.23 9212449.26
German Bosch Selling fixed assets -- 2774443.00
German Bosch Provided technical service etc. 6007355.00 --
Urban public distribution Purchased canteen food ingredients
etc. 3850806.65 2470675.30
Wuxi Grain Group Purchased canteen food ingredients
etc. 696883.30 --
Wuxi Industrial Group Provided technical service etc. 365094.34 752122.64
Weifu Environmental Technical service fee payable etc.Protection 275283.02 589056.60
Weifu Environmental Kinetic energy fee payable
Protection 1052652.89 1125244.70
Weifu Environmental Provided technical service etc.Protection -- 641320.75
Eleventh Technology Technical service fee payable etc. -- 25471.70
Lezhuo Bowei Provided technical service etc. -- 82722.27
Lezhuo Bowei Technical service fee payable etc. 8761.06 --
Wuxi IoT Purchase of fixed assets -- 68867.93
Weifu Precision Machinery Purchase of fixed assets -- 3000.00
Autolink Intelligent Kinetic energy fee payable 683489.99 --
Shenzhen Deqi Receiving consulting services 237623.76 --
6. Receivables and payables of related parties
(1) Receivables
Closing balance Balance at the end of last year
Name of projects Associated party
Book balance Bad debt reserve Book balance Bad debt reserve
Accounts receivable Weifu Precision
Machinery 778983.46 131537.33 253087.10 --
Accounts receivable Bosch Powertrain 837818105.83 5540525.12 807220878.29 3096153.84
Accounts receivable German Bosch 719908284.79 1160786.70 638685114.08 1347705.10
Accounts receivable Lezhuo Bowei 3333359.57 1382.13 5234363.76 0.03
Accounts receivable Weifu Environmental
Protection 3484406.91 17030.00 2599809.56 --
Accounts receivable Changchun Xuyang 28140261.21 -- 9644850.41 --
Accounts receivable Wuxi Grain Reserve 290447.45 740.95 242500.00 --
122Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Closing balance Balance at the end of last year
Name of projects Associated party
Book balance Bad debt reserve Book balance Bad debt reserve
Dividends receivable Weifu Precision
Machinery 5357758.49 -- 5357758.49 --
Advance payment German Bosch 13992553.66 -- 10933876.91 --
Other receivables German Bosch -- -- 2885068.34 225599.82
Other receivables Autolink Intelligent 449700.00 89940.00 449700.00 --
Other non-current
assets German Bosch 7713000.00 -- 7513200.00 --
Other non-current
assets Wuxi Industrial Group 5452800.00 -- 5452800.00 --
Total 1626719661.37 6941942.23 1496473006.94 4669458.79
(2) Payables
Name of projects Associated party Closing balance Balance at the end of last year
Accounts payable Weifu Precision Machinery 11557314.95 7803153.23
Accounts payable Weifu Environmental Protection 821788108.10 581475733.94
Accounts payable Bosch Powertrain 106344798.47 67673428.74
Accounts payable German Bosch 49807318.10 28113764.28
Accounts payable Autolink Intelligent 50000.00 1478079.00
Accounts payable Urban public distribution 159977.13 --
Accounts payable Wuxi Grain Group 70557.01 --
Accounts payable Lezhuo Bowei 7751.80 --
Accounts payable Voith HySTech GmbH 1607709.29 --
Accounts payable Changchun Xuyang 162773.76 --
Accounts payable Eleventh Technology -- 46000.00
Advance receipt German Bosch -- 41380.29
Other payables Junhai Xichan 1666.67 --
Other payables Weifu Precision Machinery -- 29000.00
Contract liabilities Weifu Precision Machinery 195643.85 203031.12
Contract liabilities Bosch Powertrain 0.36 0.36
Contract liabilities German Bosch 999124.21 325299.33
Contract liabilities Weifu Environmental Protection -- 75840.73
Other current liabilities Bosch Powertrain 0.05 0.05
Other current liabilities Weifu Environmental Protection -- 9859.30
Other current liabilities Weifu Precision Machinery 25433.70 26394.04
Other current liabilities German Bosch 2535.00 --
Lease liabilities Autolink Intelligent 2678104.32 2228404.32
Total 995458816.77 689529368.73
XII. Share-based payment
1. Overall share-based payment
No.
2. Equity-settled share-based payment
No.
123Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
3. Cash-settled share-based payment
No.
4. Total amount of share-based payment expenses in the current period
No.
5. Share-based payment modification and termination
No.XIII. Commitments and contingencies
1. Major commitments
The company does not have any significant commitments which need to be disclosed.
2. Contingencies
Contingent liabilities formed by provision of debt guarantee for other organizations and its financial impact
Security to subsidiaries: As of 31 December 2025 the company provided security for all debts incurred by
the contract performance of subsidiary Yiwo Automotive and Shenzhen BYD Supply Chain Management Co.Ltd. with a security amount of RMB 10000000;
As of 31 December 2025 the company has provided a guarantee facility of RMB 562730000 to its
subsidiary VHIO. The scope of the guarantee includes but is not limited to financing-related guarantees arising
from financing activities (including loans bank acceptance bills foreign exchange derivatives transactions letters
of credit and guarantees) as well as performance guarantees arising from daily operations. In addition the
company has provided a pledged loan guarantee for its subsidiary IRD by pledging the margin account opened
with China CITIC Bank Wuxi Branch and the funds therein as collateral to secure IRD’s obligations.Other contingent liabilities and the financial impact
There aren’t other significant contingencies that needed to be disclosed.XIV. Events after the balance sheet date
1. Significant non-adjusting events
No.
2. Profit distribution
Company 2025 profit distribution plan: distributing cash dividend of RMB 7 (including tax) per 10 shares
based on the latest company total share capital (996785693 shares) without giving bonus shares or increasing
share capital by provident fund. The remaining undistributed profits shall be carried forward to the next year. The
124Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
total cash dividend intended to be distributed this time is RMB 676749985.10 (including tax). When
implementing this profit distribution plan if the total amount of shares entitled to profit distribution changes the
total distribution amount shall be adjusted according to the principle of unchanged distribution ratio based on the
total shares entitled to profit distribution on the date of equity registration when implementing the distribution
plan.
3. Sales return
No.
4. Other significant non-adjusting events after the balance sheet date
No.XV. Other important matters
1. Correction of previous-period accounting errors
No.
2. Debt restructuring
No.
3. Replacement of assets
No.
4. Annuity plan
The 8th meeting of the 7th board of directors of the company reviewed and adopted Enterprise Annuity Plan
of Wuxi Weifu High-Technology Group Co. Ltd.: In order to mobilize the enthusiasm and creativity of employees
establish a long-term talent incentive mechanism strengthen cohesion and competitiveness of enterprise the
company will implement the above annuity plan from the date of receiving the plan reporting reply letter from the
labor security administrative department. The annuity plan content is as follows: The enterprise annuity fund is
jointly paid by the enterprise and individual employees; the annual payment of enterprise shall not exceed 8% of
the total wages of its employees and the total payment of the enterprise and individual employees shall not
exceed 12% of the total wages of its employees. It is subject to adjustments as appropriate according to the
national enterprise annuity policy and corporate economic benefits and in the principle of adapting to corporate
economic strength enterprise payment in the current year is controlled at 8% of last year’s total wages. The
maximum annual distribution quota of employees shall not exceed 5 times average distribution quota of
employees and the excess part is excluded from the distribution quota. Personal payment is controlled at 1% of
the individual’s total salary last year. In the future the specific annual payment ratio shall be adjusted by the
enterprise according to operation of the company.
125Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
In December 2012 the company received the Reply on the Filing of the Enterprise Annuity Plan of Wuxi
Weifu High-Technology Group Co. Ltd. from the labor security administrative department and then signed the
Entrusted Management Contract of the Enterprise Annuity Plan of Wuxi Weifu High-Technology Group Co. Ltd.with China Life Pension Insurance Co. Ltd.
5. Discontinued operations
Inapplicable.
6. Division information
(1) Basis for determining reporting divisions and accounting policy
The company determines its operation segments based on the internal organizational structure management
requirements and internal reporting system. The corporate operating divisions refer to the components that
simultaneously meet the following conditions:
Such components can generate income and incur expense in daily activities;
The corporate management can regularly evaluate the operating results of such components to determine the
allocation of resources and evaluate of the performance;
The company can obtain relevant accounting information such as financial status operating results and cash
flow of this component through analysis.If two or more business divisions have similar economic characteristics and meet certain conditions they
may be merged into one.The company considers the principle of importance and determines the reporting divisions based on the
operating divisions. Corporate reporting divisions are business units that provide different products or services or
operate in different regions. Due to different technological and market strategies required by various businesses or
regions the company manages the production and operation activities of reporting divisions independently
evaluates their operating results respectively and decides to allocate resources to them and evaluate their
performance. The company mainly produces automotive internal combustion engine fuel system and fuel cell
parts products automotive parts mufflers converters vacuum and hydraulic pumps and other relevant products.The company determines the reporting divisions by product or service content but due to mixed operation of
relevant businesses the total assets total liabilities and period expenses have not been allocated.
(2) Financial information of reporting divisions
Energy conservation and Energy conservation and Energy conservation and
Items emission reduction: emission reduction: Automotive emission reduction:Automotive Fuel Injection After-treatment System Product Automotive Intake System
System Product Division Division Product Division
Operating revenue 5013419229.92 3702606441.37 1070567590.34
Operating cost 3940599327.45 3161500934.27 845024441.74
(Continued)
Items Intelligent Electric Product Green Hydrogen Energy ProductDivision Division Total
Operating revenue 2151703630.20 85582166.44 12023879058.27
126Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Items Intelligent Electric Product Green Hydrogen Energy ProductDivision Division Total
Operating cost 1863927414.14 128786031.14 9939838148.74
7. Other important matters affecting investor decision-making
In March 2023 the company reported case to the Xinwu Branch of Wuxi Public Security Bureau regarding
subsidiary Weifu International Trade suffering contract fraud. The Bureau issued Case Filing Notice on 12 April
2023 and initiated criminal case investigation (refer to the 2023-007 information disclosure announcement of the
company on 13 April 2023). On 11 April 2025 Wuxi Intermediate People’s Court made the first-instance
judgment ((2024) Su 02 Criminal First No.22) sentencing that defendant Liu committed the crime of contract
fraud and the seized sealed and frozen case-related properties and more shall be handled by the public security
organ according to law. Defendant Liu appealed and the final criminal judgment ( (2024) Su 02 Criminal No.22)
entered into effect on 8 July 2025. As of the end of 2025 the company had received a part of the case-related
properties returned by the public security organ and executed by the court including monetary funds of RMB
460416300 as well as small home appliances totaling RMB 43591200.
After the case occurred in 2023 the company conducted accounting treatment based on the receipt and
payment of funds according to the principle of substance over form prudently identified the purchasing payments
actually made to “suppliers” and the sales amount received from “customers” as credits and debts and presented
them in other receivables as per net amounts by means of “platform trade” business portfolio. As of 31 December
2025 the balance of credits receivable for “platform trade” event was RMB 2038255800 the company
prudently judged the recoverable amount according to the case execution situation and the cumulative provision
for expected credit losses was RMB 1979160400.XVI. Main item notes of company financial statements
1. Accounts receivable
(1) Disclosure by age
Aging Closing balance Balance at the end of last year
Within a year 1671151997.55 1482006067.41
Of which: Within six months 1645841412.82 1460455344.98
Six months to one year 25310584.73 21550722.43
One to two years 8116785.90 6409424.43
Two to three years 1181729.54 8408261.89
More than three years 5657755.38 1242046.26
Subtotal 1686108268.37 1498065799.99
Less: Bad debt provision 10933135.26 8130109.94
Total 1675175133.11 1489935690.05
(2) Classified and presented by bad debt provision method
Closing balance
Category Book balance Bad debt reserve
Amount Proportion Amount Accrual ratio
Book value
(%)(%)
Accounts receivable with single
provision for bad debt reserve 1331421.03 0.08 1311786.99 98.53 19634.04
127Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Closing balance
Category Book balance Bad debt reserve
Book value
Amount Proportion Amount Accrual ratio(%) (%)
Accounts receivable for which bad
debt provision has been assessed by 1684776847.34 99.92 9621348.27 0.57 1675155499.07
portfolios
Of which: receivables from customers 1467954762.11 87.06 9621348.27 0.66 1458333413.84
Receivables from internal related
parties 216822085.23 12.86 -- -- 216822085.23
Total 1686108268.37 100.00 10933135.26 0.65 1675175133.11
(Continued)
Balance at the end of last year
Category Book balance Bad debt reserve
Book value
Amount Proportion Amount Accrual ratio(%) (%)
Accounts receivable with single
provision for bad debt reserve 1439571.54 0.10 1439571.54 100.00 --
Accounts receivable for which bad
debt provision has been assessed by 1496626228.45 99.90 6690538.40 0.45 1489935690.05
portfolios
Of which: receivables from customers 1331265647.15 88.87 6690538.40 0.50 1324575108.75
Receivables from internal related
parties 165360581.30 11.04 -- -- 165360581.30
Total 1498065799.99 100.00 8130109.94 —— 1489935690.05
i. Accounts receivable with single provision for bad debt reserve at the end of period
Closing balance
Accounts receivable (by entity)
Book balance Bad debt reserve Accrual ratio Accrual basis
SAIC Hongyan Automobile Co. Ltd. 827475.79 807841.75 97.63 Forecast as difficult torecover
Lovol Tianjin Engines Co. Ltd. 503945.24 503945.24 100.00 Forecast as difficult torecover
Total 1331421.03 1311786.99 —— ——
Continued
Balance at the end of last year
Accounts receivable (by entity)
Book balance Bad debt reserve Accrual ratio Accrual basis
SAIC Hongyan Automobile Co. Ltd. 935626.30 935626.30 100.00 Forecast as difficult torecover
Lovol Tianjin Engines Co. Ltd. 503945.24 503945.24 100.00 Forecast as difficult torecover
Total 1439571.54 1439571.54 —— ——
ii. Provision for bad debt reserve by portfolio:
Closing balance
Items
Book balance Bad debt reserve Accrual ratio (%)
Within six months 1645821317.46 -- --
Six months to one year 25291517.36 2529151.74 10.00
One to two years 7328472.84 1465694.58 20.00
Two to three years 1181729.54 472691.82 40.00
More than three years 5153810.14 5153810.13 100.00
Total 1684776847.34 9621348.27 0.57
iii. In the portfolio the receivables from internal related parties:
128Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Closing balance
Items
Book balance Accrual ratio (%)
Weifu Autosmart 1365012.34 --
Weifu Yite 2860205.13 --
Weifu Lida 5923814.10 --
Weifu Qinglong 1853247.57 --
Weifu Schmidt 48922909.34 --
Weifu Zhigan 28242469.27 --
Weifu International Trade 101243271.74 --
Weifu Tianli 6210211.72 --
Yiwo Automotive 20200944.02 --
Total 216822085.23 --
(3) Bad debt reserve status
Amount of changes in current period
Category Balance at the end oflast year Provision Recovery or Write-off or write-off Closing balance
reversal after verification
Single provision 1439571.54 3205.61 -- 130990.16 1311786.99
Portfolio provision 6690538.40 2931521.76 -- 711.89 9621348.27
Total 8130109.94 2934727.37 -- 131702.05 10933135.26
(4) Accounts receivable of the Top 5 closing balance classified by the overdue party
Proportion to the total
Name of debtors Closing balance of receivables closing balance of Closing balance of
accounts receivable (%) allowance for bad debts
Bosch Powertrain 837818105.83 49.69 5540525.12
German Bosch 196859610.74 11.68 562623.77
Customer 4 132683984.57 7.87 14567.37
Weifu International Trade 101243271.74 6.00 --
Customer 5 60596569.26 3.59 --
Total 1329201542.14 78.83 6117716.26
2. Other receivables
Items Closing balance Balance at the end of last year
Interests receivable 117347.22 6702396.94
Dividends receivable 5357758.49 5357758.49
Other receivables 483559405.62 1417306880.03
Total 489034511.33 1429367035.46
(1) Interests receivable
Items Closing balance Balance at the end of last year
Interests receivable from subsidiaries 117347.22 6702396.94
Total 117347.22 6702396.94
(2) Dividends receivable
Invested entity Closing balance Balance at the end of last year
Weifu Precision Machinery 5357758.49 5357758.49
(3) Other receivables
i. Disclosure by age
Aging Closing balance Balance at the end of last year
129Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Aging Closing balance Balance at the end of last year
Within a year 189367609.76 216098598.61
One to two years 125219.45 279688422.50
Two to three years -- 2566161181.33
More than three years 2276254327.54 1753896.21
Subtotal 2465747156.75 3063702098.65
Less: Bad debt provision 1982187751.13 1646395218.62
Total 483559405.62 1417306880.03
ii. Classification by fund nature
Nature of funds Period-end book balance Book balance at the end of lastyear
Employee borrowings and reserve funds 140080.00 330080.00
Balance of related parties within the consolidation scope 2456258778.73 3051023208.99
Cash pledge and guarantee deposit 3046966.99 3097870.78
Social security and housing provident fund paid on behalf 6268831.03 6199417.67
Others 32500.00 3051521.21
Subtotal 2465747156.75 3063702098.65
Less: Bad debt provision 1982187751.13 1646395218.62
Total 483559405.62 1417306880.03
iii. Provision for bad debt reserve
Phase I Phase II Phase III
Expected credit losses Expected credit losses
Bad debt reserve Expected credit losses throughout existence throughout existence Total
in the next 12 months period (no credit period (credit impairment
impairment occurred) occurred)
Balance at the end of last year 2326890.69 -- 1644068327.93 1646395218.62
Book balance of other
receivables at the end of last -- -- -- --
year is in the current period:
——Transfer in Phase II -- -- -- --
——Transfer in Phase III -- -- -- --
——Transfer back to Phase II -- -- -- --
——Transfer back to Phase I -- -- -- --
Provision in the current period 700480.74 -- 335092051.77 335792532.51
Reversal in the current period -- -- -- --
Write-off in current period -- -- -- --
Write-off in the current period -- -- -- --
Other changes -- -- -- --
Closing balance 3027371.43 -- 1979160379.70 1982187751.13
iv. Bad debt reserve status
Amount of changes in current period
Category Balance at the end of Provision Recovery or Write-off or write-last year Closing balancereversal off after
verification
Bad debt reserve 1646395218.62 335792532.51 -- -- 1982187751.13
Total 1646395218.62 335792532.51 -- -- 1982187751.13
v. Other receivables of Top 5 closing balance classified by debtors
130Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Proportion to
Name of company Nature of funds Closing balance Aging total closing Bad debt reservebalance of other Closing balance
receivables (%)
Weifu International Balance of related
Trade parties within the 2273260000.00
More than three 92.19 1979160379.70
consolidation scope years
Balance of related
Weifu Chang’an parties within the 153857900.00 Within a year 6.24 --
consolidation scope
Balance of related
Weifu Autosmart parties within the 25000000.00 Within a year 1.01 --
consolidation scope
Balance of related
Weifu Autocam parties within the 3069263.11 Within a year 0.12 --
consolidation scope
Balance of related
Weifu Schmidt parties within the 1071615.62 Within a year 0.04 --
consolidation scope
Total —— 2456258778.73 —— 99.60 1979160379.70
3. Long-term equity investment
(1) Classification of long-term equity investment
Closing balance Balance at the end of last year
Provisions Provisions
Items
Book balance forimpairmen Book value Book balance
for
impairmen Book value
t t
Investment in subsidiaries 4274257102.63 -- 4274257102.63 3846281133.43 -- 3846281133.43
Investment in associated
enterprises and joint 5989123912.54 -- 5989123912.54 5533108674.14 -- 5533108674.14
ventures
Total 10263381015.17 -- 10263381015.17 9379389807.57 -- 9379389807.57
(2) Investment in subsidiaries
Closing
Provision for balance of
Invested entity Balance at the end of Increase in current Decrease in currentlast year period period Closing balance
impairment provision
in the current for
period impairmen
t
Weifu Jinning 185704551.82 -- -- 185704551.82 -- --
Weifu Lida 658974651.80 -- -- 658974651.80 -- --
Weifu Mashan 170986195.35 -- -- 170986195.35 -- --
Weifu Chang’an 222664737.01 130000000.00 -- 352664737.01 -- --
Weifu International 33726511.51 -- -- 33726511.51 -- --Trade
Weifu Schmidt 51116685.47 -- -- 51116685.47 -- --
Weifu Tianli 238063380.00 -- -- 238063380.00 -- --
Weifu Autocam 82454467.99 -- -- 82454467.99 -- --
Weifu Electric Drive 54012820.23 -- -- 54012820.23 -- --
SPV 1564188899.46 273914271.20 -- 1838103170.66 -- --
Weifu Lida
(Chongqing) 191160.00
----191160.00----
Weifu Autosmart 631890.00 -- -- 631890.00 -- --
Weifu Qinglong 225000000.00 -- -- 225000000.00 -- --
Yiwo Automotive 143559879.99 -- -- 143559879.99 -- --
Weifu Zhigan 215005302.80 -- -- 215005302.80 -- --
131Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Closing
Provision for balance of
Invested entity Balance at the end of Increase in current Decrease in current Closing balance impairment provisionlast year period period in the current for
period impairmen
t
Weifu Yite -- 24061698.00 -- 24061698.00 -- --
Total 3846281133.43 427975969.20 -- 4274257102.63 -- --
(3) Investment in associated enterprises and joint ventures
Increases and decreases in current period
Adjustmen
Invested entity Balance at the end oflast year Additional Investment
Investment gains and t of other Other equity
investment reduction losses recognized comprehenunder equity method sive change
revenues
Associated
enterprises:
Bosch Powertrain 3273396963.14 -- -- 691806062.80 -- --
Zhonglian Automotive 1871790817.25 -- -- 514090471.95 -- --
Weifu Precision
Machinery 44293972.27 -- -- -264896.61 -- 74644.79
Autolink 210866149.89 -- -- -63616983.38 -- -5010637.63
Lezhuo Bowei 132760771.59 -- -- -33886008.88 -- --
Total 5533108674.14 -- -- 1108128645.88 -- -4935992.84
(Continued)
Increases and decreases in current period
Closing balance of
Invested entity Declare distribution of Provision for Closing balance provision forcash dividends or impairment Others impairmentprofits
Associated
enterprises:
Bosch Powertrain 204938885.76 -- -- 3760264140.18 --
Zhonglian Automotive 300000000.00 -- -- 2085881289.20 --
Weifu Precision
Machinery -- -- -- 44103720.45 --
Autolink -- -- 142238528.88 -- --
Lezhuo Bowei -- -- -- 98874762.71 --
Total 504938885.76 -- 142238528.88 5989123912.54 --
4. Operating income operating cost
Current amount Previous amount
Items
Income Cost Income Cost
Main business 3560634505.19 3075407070.88 3175428485.74 2585384392.97
Other businesses 310688548.32 244907210.29 221947252.49 163133107.97
Total 3871323053.51 3320314281.17 3397375738.23 2748517500.94
5. Investment incomes (losses marked with “-”)
Items Current amount Previous amount
Investment returns on subsidiaries 571101597.33 139560230.16
Investment income in joint ventures and associated enterprises 1108128645.88 1237057888.34
Investment income of financial assets held for trading during
the holding period 1134540.55 38210665.77
Investment income from disposing transactional financial
assets 33092928.80 16818201.49
132Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
Items Current amount Previous amount
Investment incomes generated by the disposal of long-term
equity investments 264044480.51 --
Dividend income obtained during the period of holding other
equity instrument investment -- 18590.00
Income of de-recognition of financial assets measured at
amortized cost -- -312015.98
Debt restructuring revenue -107928.63 -133897.16
Total 1977394264.44 1431219662.62
XVII. 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 14328949.27
Governmental grants reckoned into current gains/losses (except for those with
normal operation business concerned and conform to the national policies &
regulations and are continuously enjoyed at a fixed or quantitative basis according 37391293.43
to certain standards)
Except for the effective hedging operations related to normal business operation
of the Company the gains/losses of fair value changes from holding the trading
financial assets and trading financial liabilities and the investment earnings 103877478.05
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 476700.90
Gains/losses of debt restructuring 5433965.62
Other non-operating income and expenditure except for the aforementioned items 3498446.82
Other gains/losses that meet the definition of non-recurring gains/losses 264044480.51
Less: Impact on income tax 23966266.80
Impact on minority shareholders’ equity (After tax) 4756773.60
Total 400328274.20
Specific information on other items of gains/losses that qualified the definition of non-recurring gains/losses
□Applicable □Not applicable
The Company does not have other gains/losses that qualified the definition of non-recurring gains/losses
Information on the definition of non-recurring gains/losses that listed in the Q&A Announcement No.1 on Information
Disclosure for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Gain)/Loss as the
recurring gains/losses
□Applicable □Not applicable
2. ROE and earnings per share
Weighted Earnings per share
Profits during report period average Basic earnings per Diluted earnings
ROE share per share
(RMB/Share) (RMB/Share)
Net profits belong to common stock stockholders of the
Company 5.39% 1.10 1.10
Net profits belong to common stock stockholders of the
Company after deducting nonrecurring gains and losses 3.37% 0.69 0.69
133Wuxi Weifu High-Technology Group Co. Ltd. 2025 Financial Statement Notes
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
Wuxi Weifu High-Technology Group Co. Ltd.
15 April 2026
Legal representative: Accounting director: Accounting firm director:
Yin Zhenyuan Feng Zhiming Li Yanqing
134
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