WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

WEIFU HIGH-TECHNOLOGYGROUP CO. LTD.Semi-Annual Financial Reprot 2025

(Unaudited)

August 2025

1WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

I. Audit report

Whether the semi annual report is audited

□Yes□No

The Company's semi- annual financial report has not been audited

II. Financial statement

Statement in Financial Notes are carried in RMB/CNY

1. Consolidated Balance Sheet

Prepared by Weifu High-Technology Group Co. Ltd.June 30 2025

In RMB

Item Ending balance Beginning balance

Current assets:

Monetary funds 2468434379.47 2246600451.52

Settlement provisions

Capital lent

Tradable financial assets 1025044671.12 1429682635.57

Derivative financial assets

Notes receivable 78478875.89 99914699.81

Accounts receivable 3532771507.20 3737653893.03

Receivable financing 2013389318.37 1713187182.25

Accounts paid in advance 89759609.11 93283466.49

Insurance receivable

Reinsurance receivables

Contract reserve of

reinsurance receivable

Other accounts receivable 1494709285.16 930529007.57

Including: Interest

receivable

Dividend

receivable 563855362.06 5357758.49

Buying back the sale of

financial assets

Inventories 2088325602.36 2308920401.14

Including: data resource

Contract assets

Assets held for sale

Non-current asset due within

one year 336318630.13 559070575.38

Other current assets 181263674.41 188988459.46

Total current assets 13308495553.22 13307830772.22

Non-current assets:

Loans and payments on

behalf

Creditors' investment

Other creditors' investment

2WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Long-term accounts

receivable

Long-term equity investment 7002758309.98 7035098878.59

Investment in other equity

instrument 677790690.00 677790690.00

Other non-current financial

assets 689856655.22 697471349.81

Investment real estate 53426749.43 44960930.39

Fixed assets 4361424985.91 4461619375.21

Construction in progress 521265457.98 380321816.50

Productive biological assets

Oil and gas assets

Right-of-use assets 107224877.20 67765442.37

Intangible assets 485738058.61 480540808.88

Including: Data resources

Development expenditure

Including: Data resources

Goodwill 36208871.56 32605318.22

Long-term expenses to be

apportioned 21305543.20 22202465.04

Deferred income tax assets 292185225.31 303420166.65

Other non-current assets 835144508.91 893272397.34

Total non-current assets 15084329933.31 15097069639.00

Total assets 28392825486.53 28404900411.22

Current liabilities:

Short-term loans 628135100.76 393120147.95

Loan from central bank

Capital borrowed

Tradable financial liabilities

Derivative financial

liabilities

Note payable 2229593501.21 2014217247.05

Accounts payable 3614130008.70 3899945192.28

Accounts received in

advance 491544.03 2652511.04

Contract liabilities 106520784.44 56148545.13

Selling financial asset of

repurchase

Absorbing deposit and interbank

deposit

Security trading of agency

Security sales of agency

Wage payable 291609104.06 405278048.92

Taxes payable 56657934.54 51710218.41

Other accounts payable 68287577.76 44547794.12

Including: Interest payable

Dividend

payable

3WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Handle fee and commission

payable

Reinsurance payable

Liabilities held for sale

Non-current liabilities due

within one year 129760712.69 220703888.53

Other current liabilities 250771633.35 285386237.68

Total current liabilities 7375957901.54 7373709831.11

Non-current liabilities:

Insurance contract reserve

Long-term loans 90000000.00 100000000.00

Bonds payable

Including: Preferred stock

Perpetual capital securities

Lease liabilities 76852608.86 47316516.48

Long-term accounts payable 27005082.11 27005082.11

Long-term wages payable 42952557.52 46118861.68

Accrual liability 130105086.23 121869551.76

Deferred income 139948493.23 151419335.74

Deferred income tax

liabilities 25158384.10 24870008.46

Other non-current liabilities

Total non-current liabilities 532022212.05 518599356.23

Total liabilities 7907980113.59 7892309187.34

Owner’s equity:

Share capital 971986293.00 996986293.00

Other equity instrument

Including: Preferred stock

Perpetual capital

securities

Capital public reserve 2820395511.35 3263649101.44

Less: Inventory shares 100005328.00 469722092.24

Other comprehensive

income 147164765.42 10132405.39

Reasonable reserve 8289080.04 6257090.28

Surplus public reserve 510100496.00 510100496.00

Provision of general risk

Retained profit 15352521697.82 15523124882.77

Total owner’ s equity attributable

to parent company 19710452515.63 19840528176.64

Minority interests 774392857.31 672063047.24

Total owner’ s equity 20484845372.94 20512591223.88

Total liabilities and owner’ s

equity 28392825486.53 28404900411.22

Legal Representative: Yin Zhenyuan

Person in charge of accounting works: Feng Zhiming

Person in charge of accounting institute: Wu Junfei

4WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

2. Balance sheet of parent company

In RMB

Item Ending balance Beginning balance

Current assets:

Monetary funds 621349036.47 466892236.52

Tradable financial assets 621770512.92 878496571.74

Derivative financial assets

Notes receivable 17829938.87 18662983.17

Accounts receivable 1395626191.96 1489935690.05

Receivable financing 307236301.66 346215286.06

Accounts paid in advance 58987354.97 51792719.25

Other accounts receivable 1766666095.98 1429367035.46

Including: Interest

receivable 1279404.99 6702396.94

Dividend

receivable 510296644.26 5357758.49

Inventories 486195284.85 523443471.86

Including: Data resources

Contract assets

Assets held for sale

Non-current assets maturing

within one year 109122465.75 222906739.73

Other current assets 494036.38 236029.38

Total current assets 5385277219.81 5427948763.22

Non-current assets:

Creditors' investment

Other creditors' investment

Long-term receivables

Long-term equity

investments 9661238374.94 9379389807.57

Investment in other equity

instrument 601850690.00 601850690.00

Other non-current financial

assets 689856655.22 697471349.81

Investment real estate 32757201.47 33322617.00

Fixed assets 2706446821.10 2767316409.85

Construction in progress 147000657.38 43260711.62

Productive biological assets

Oil and natural gas assets

Right-of-use assets 3393511.54 4320822.79

Intangible assets 245734676.85 251051539.24

Including: Data resources

Development expenditure

Including: Data resources

Goodwill

Long-term deferred expenses 964274.11 910555.82

Deferred income tax assets 141814225.62 131997984.30

Other non-current assets 554224013.59 538364812.82

Total non-current assets 14785281101.82 14449257300.82

Total assets 20170558321.63 19877206064.04

5WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Current liabilities:

Short-term borrowings 220000000.00

Tradable financial liabilities

Derivative financial

liabilities

Notes payable 378939027.49 344127173.09

Accounts payable 1079755407.90 1127464058.49

Accounts received in

advance

Contract liabilities 15934600.05 12478649.93

Wage payable 147664116.13 215266682.43

Taxes payable 20979842.64 9470631.10

Other accounts payable 913251443.20 670207729.91

Including: Interest payable 1836385.73 2509683.34

Dividend

payable

Liabilities held for sale

Non-current liabilities due

within one year 101474322.08 201358028.22

Other current liabilities 27134370.80 20837034.26

Total current liabilities 2905133130.29 2601209987.43

Non-current liabilities:

Long-term loans 90000000.00 100000000.00

Bonds payable

Including: Preferred stock

Perpetual capital

securities

Lease liabilities 2087426.75 2703583.48

Long-term accounts payable

Long term employee

compensation payable 15212070.31 15212070.31

Accrued liabilities 24576305.30 22565446.22

Deferred income 114104833.80 130406464.59

Deferred income tax

liabilities

Other non-current liabilities

Total non-current liabilities 245980636.16 270887564.60

Total liabilities 3151113766.45 2872097552.03

Owners’ equity:

Share capital 971986293.00 996986293.00

Other equity instrument

Including: Preferred stock

Perpetual capital

securities

Capital public reserve 2950386132.40 3394923686.54

Less: Inventory shares 100005328.00 469722092.24

Other comprehensive

income

Special reserve

Surplus reserve 510100496.00 510100496.00

Retained profit 12686976961.78 12572820128.71

Total owner’s equity 17019444555.18 17005108512.01

Total liabilities and owner’s 20170558321.63 19877206064.04

6WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

equity

3. Consolidated profit statement

In RMB

Item 2025 semi-annual 2024 semi-annual

I. Total operating income 5760418633.11 5694233552.72

Including: Operating income 5760418633.11 5694233552.72

Interest income

Insurance gained

handle fee and commission income

II. Total operating cost 5577970476.35 5403425728.45

Including: Operating cost 4765222793.27 4656360224.06

Interest expense

Handle fee and commission expense

Cash surrender value

Net amount of expense of compensation

Net amount of withdrawal of insurance contract

reserve

Bonus expense of guarantee slip

Reinsurance expense

Taxes and surcharge 31826032.69 28260194.79

Sales expense 83998662.78 77420526.32

Administrative expense 381273882.00 330939659.31

R&D expense 350722149.70 302233285.34

Financial expense -35073044.09 8211838.63

Including: Interest expenses 9045918.64 13772229.94

Interest income 26681031.13 18112595.69

Add: Other income 76133278.27 130886049.11

Investment income (Loss is listed with “-”) 545945486.83 769668621.04

Including: Investment income on affiliated company and

joint venture 537786063.13 734287171.95

The termination of income recognition for financial

assets measured by amortized cost

Exchange income (Loss is listed with “-”)

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

Income from change of fair value (Loss is listed with “-”) 27874369.01 -105956110.61

Loss of credit impairment (Loss is listed with “-”) -1953886.07 3490635.46

Losses of devaluation of asset (Loss is listed with “-”) -72319585.77 -66803279.10

Income from assets disposal (Loss is listed with “-”) -2041543.96 5859201.49

III. Operating profit (Loss is listed with “-”) 756086275.07 1027952941.66

Add: Non-operating income 2594469.11 700418.67

Less: Non-operating expense 3344708.84 3361815.35

IV. Total profit (Loss is listed with “-”) 755336035.34 1025291544.98

Less: Income tax expense 42189606.93 23703720.56

V. Net profit (Net loss is listed with “-”) 713146428.41 1001587824.42

(i) Classify by business continuity

1.Continuous operating net profit (net loss listed with ‘-”) 713146428.41 1001587824.42

2.Termination of net profit (net loss listed with ‘-”)

(ii) Classify by ownership

7WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

1.Net profit attributable to owners of parent company 701870308.75 954341269.90

2.Minority shareholders’ gains/losses 11276119.66 47246554.52

VI. Net after-tax of other comprehensive income 137032360.03 -21869656.76

Net after-tax of other comprehensive income attributable to

owners of parent company 137032360.03 -21869656.76

(I) Other comprehensive income items which will not be

reclassified subsequently to profit of loss 451530.88

1.Changes of the defined benefit plans re-measured 451530.88

2.Other comprehensive income under equity method that

cannot be transferedr to gains/losses

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 gains/losses 137032360.03 -22321187.64

1.Other comprehensive income under equity method that

can transferedr to gains/losses

2.Change of fair value of other creditors' investment

3.Amount of financial assets re-classify to other

comprehensive income

4.Credit impairment provision for other creditors'

investment

5.Cash flow hedging reserve

6.Translation differences arising on translation of foreign

currency financial statements 137032360.03 -22321187.64

7.Other

Net after-tax of other comprehensive income attributable to

minority shareholders

VII. Total comprehensive income 850178788.44 979718167.66

Total comprehensive income attributable to owners of parent

Company 838902668.78 932471613.14

Total comprehensive income attributable to minority

shareholders 11276119.66 47246554.52

VIII. Earnings per share:

(i) Basic earnings per share 0.72 0.98

(ii) Diluted earnings per share 0.72 0.98

Legal representative: Yin Zhenyuan

Person in charge of accounting works: Feng Zhiming

Person in charge of accounting institute: Wu Junfei

4. Profit statement of parent company

In RMB

Item 2025 semi-annual 2024 semi-annual

I. Operating income 1820777791.61 1647889326.24

Less: Operating cost 1554249540.67 1325851166.72

Taxes and surcharge 14109546.73 10090110.47

Sales expenses 8866486.16 7706819.28

Administration expenses 173457220.14 161566130.87

R&D expenses 104316954.06 119109060.22

Financial expenses -15451453.61 4824902.69

Including: Interest expenses 9462599.47 9277216.36

Interest income 13414496.93 12050589.75

Add: Other income 27495662.20 62105684.03

8WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Investment income (Loss is listed with “-”) 969874460.06 638461133.94

Including: Investment income on affiliated Company and

joint venture 488623036.82 603770972.68

The termination of income recognition for financial

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

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

Changing income of fair value (Loss is listed with “-”) 25814893.27 -105971233.90

Loss of credit impairment (Loss is listed with “-”) 1440706.85 2009138.93

Losses of devaluation of asset (Loss is listed with “-”) -30098319.74 -35029533.34

Income on disposal of assets (Loss is listed with “-”) -227341.34 1029050.22

II. Operating profit (Loss is listed with “-”) 975529558.76 581345375.87

Add: Non-operating income 1579331.86 437637.73

Less: Non-operating expense 294805.16 330008.10

III. Total Profit (Loss is listed with “-”) 976814085.46 581453005.50

Less: Income tax -9816241.31 -35313458.70

IV. Net profit (Net loss is listed with “-”) 986630326.77 616766464.20(i) Continuous operating net profit (net loss listed with ‘-”) 986630326.77 616766464.20(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 gains/losses

1.Changes of the defined benefit plans re-measured

2.Other comprehensive income under equity method

that cannot be transferred to gains/losses

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 gains/losses

1.Other comprehensive income under equity method

that can transferred to gains/losses

2.Change of fair value of other creditors' investment

3.Amount of financial assets re-classify to other

comprehensive income

4.Credit impairment provision for other creditors'

investment

5.Cash flow hedging reserve

6.Translation differences arising on translation of

foreign currency financial statements

7.Other

VI. Total comprehensive income 986630326.77 616766464.20

VII. Earnings per share:

(i) Basic earnings per share

(ii) Diluted earnings per share

5. Consolidated cash flow statement

In RMB

Item 2025 semi-annual 2024 semi-annual

I. Cash flows arising from operating activities:

Cash received from selling commodities and providing labor

services 6910136894.62 6823095167.50

Net increase of customer deposit and interbank deposit

Net increase of loan from central bank

9WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

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 handle fee 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 13710287.85 67238993.27

Other cash received concerning operating activities 25132854.67 54420149.24

Subtotal of cash inflow arising from operating activities 6948980037.14 6944754310.01

Cash paid for purchasing commodities and receiving labor

service 5030455349.07 4721822344.53

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 handle fee and commission

Cash paid for bonus of guarantee slip

Cash paid to/for staff and workers 960705389.63 876817470.16

Taxes paid 150801692.40 125654220.31

Other cash paid concerning operating activities 314143327.30 332567957.64

Subtotal of cash outflow arising from operating activities 6456105758.40 6056861992.64

Net cash flows arising from operating activities 492874278.74 887892317.37

II. Cash flows arising from investing activities:

Cash received from recovering investment 2550074734.38 2269199889.99

Cash received from investment income 118028357.68 91204017.80

Net cash received from disposal of fixed intangible and other

long-term assets 11942123.55 13423502.19

Net cash received from disposal of subsidiaries and other units

Other cash received concerning investing activities

Subtotal of cash inflow from investing activities 2680045215.61 2373827409.98

Cash paid for purchasing fixed intangible and other long-term

assets 413517083.30 509948929.69

Cash paid for investment 1546539331.14 1688939156.51

Net increase of mortgaged loans

Net cash received from subsidiaries and other units obtained

Other cash paid concerning investing activities

Subtotal of cash outflow from investing activities 1960056414.44 2198888086.20

Net cash flows arising from investing activities 719988801.17 174939323.78

III. Cash flows arising from financing activities:

Cash received from absorbing investment 90514148.08 9000000.00

Including: Cash received from absorbing minority

shareholders’ investment by subsidiaries 90514148.08 9000000.00

Cash received from loans 543409434.14 211155360.59

Other cash received concerning financing activities

Subtotal of cash inflow from financing activities 633923582.22 220155360.59

Cash paid for settling debts 431700433.57 730405067.04

Cash paid for dividend and profit distributing or interest

paying 879948893.33 655405251.11

10WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Including: Dividend and profit of minority shareholder paid

by subsidiaries

Other cash paid concerning financing activities 123057290.17 72903193.84

Subtotal of cash outflow from financing activities 1434706617.07 1458713511.99

Net cash flows arising from financing activities -800783034.85 -1238558151.40

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

exchange rate 36778208.52 -11959144.77

V. Net increase of cash and cash equivalents 448858253.58 -187685655.02

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 2205802925.80 1874301039.39

6. Cash flow statement of parent company

In RMB

Item 2025 semi-annual 2024 semi-annual

I. Cash flows arising from operating activities:

Cash received from selling commodities and providing labor

services 2298097029.77 1836580357.79

Write-back of tax received

Other cash received concerning operating activities 7894895.93 35060914.24

Subtotal of cash inflow arising from operating activities 2305991925.70 1871641272.03

Cash paid for purchasing commodities and receiving labor

service 1573028828.39 1478289500.53

Cash paid to/for staff and workers 375031690.96 376267474.70

Taxes paid 33654293.69 10258978.32

Other cash paid concerning operating activities 93520007.41 86820283.60

Subtotal of cash outflow arising from operating activities 2075234820.45 1951636237.15

Net cash flows arising from operating activities 230757105.25 -79994965.12

II. Cash flows arising from investing activities:

Cash received from recovering investment 593074734.38 1500199889.99

Cash received from investment income 492180593.60 38644329.54

Net cash received from disposal of fixed intangible and other

long-term assets 744933.24 3150219.06

Net cash received from disposal of subsidiaries and other units

Other cash received concerning investing activities 195976116.67 101382422.25

Subtotal of cash inflow from investing activities 1281976377.89 1643376860.84

Cash paid for purchasing fixed intangible and other long-term

assets 218857584.71 287840839.26

Cash paid for investment 508102019.20 720639156.51

Net cash received from subsidiaries and other units obtained

Other cash paid concerning investing activities 24040000.00 175051991.34

Subtotal of cash outflow from investing activities 750999603.91 1183531987.11

Net cash flows arising from investing activities 530976773.98 459844873.73

III. Cash flows arising from financing activities:

Cash received from absorbing investment

Cash received from loans 310000000.00

Other cash received concerning financing activities 719967055.55 775000000.00

Subtotal of cash inflow from financing activities 1029967055.55 775000000.00

Cash paid for settling debts 199800000.00 504600000.00

Cash paid for dividend and profit distributing or interest

paying 882538702.56 651602564.76

Other cash paid concerning financing activities 598859506.76 222437210.84

Subtotal of cash outflow from financing activities 1681198209.32 1378639775.60

11WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Net cash flows arising from financing activities -651231153.77 -603639775.60

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

exchange rate 5418447.73 -3365554.33

V. Net increase of cash and cash equivalents 115921173.19 -227155421.32

Add: Beginning balance of cash and cash equivalents 466194368.01 713516740.43

VI. Ending balance of cash and cash equivalents 582115541.20 486361319.11

7. Consolidated statement of change in owners’ equity

Current period

In RMB

2025 semi-annual

Owners’ equity attributable to the parent Company

Other Provisio

equity instrument n of

Item Perp geneLess: Other Reaso Minority Totalral

Share etua Capital Invento compre nable Surplus Ot owners’Pref l risk

Retained interests

capital erre Ot reserve ry hensive reserv reserve profit

he Subtotal equity

d capi shares income e

r

stoc tal

he

k secu

r

ritie

s

I. Balance 99698 32636 46972 51010 155231 198405

at the end 10132 6257 6720630 2051259

of the last 6293.0 49101. 2092.2 0496.0 24882.7 28176.6405.39 090.28 47.24 1223.88

year 0 44 4 0 7 4

Add:

Changes of

accounting

policy

Error

correction

of the last

period

Other

II. Balance 99698 32636 46972 51010 155231 198405

at the 10132 6257 6720630 2051259

beginning 6293.0 49101. 2092.2 0496.0 24882.7 28176.6405.39 090.28 47.24 1223.88

of this year 0 44 4 0 7 4

III.Increase/

Decrease in -- - 13703 - - -

report 36971 2031 1023298

period 25000 443253 2360.0 170603 130075 27745856764.2 989.76 10.07

(Decrease 000.00 590.09 3 184.95 661.01 0.94

is listed 4

with “-”)

(i) Total 13703 701870 838902 11276119 8501787

comprehens 2360.0

ive income 308.75 668.78 .66 88.443

(ii) -

Owners’ - - - -36971 9051414

devoted and 25000 444726 100009 9495088.decreased 6764.2 8.08

capital 000.00 001.26 237.02 944

1.Common

shares 9051414 9051414

invested by

shareholder 8.08 8.08

s

2. Capital

invested by

holders of

other equity

instruments

3. Amount

reckoned

12WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

into owners

equity with

share-based

payment

-

----

36971

4. Other 25000 444726 100009 1000092

6764.2

000.00001.26237.0237.02

4

---

(III) Profit

distribution 872473 872473 8724734

493.70493.7093.70

1.

Withdrawal

of surplus

reserves

2.

Withdrawal

of general

risk

provisions

3.

Distribution - - -

for owners

(or 872473 872473 8724734

shareholder 493.70 493.70 93.70

s)

4. Other

(IV)

Carrying

forward

internal

owners’

equity

1. Capital

reserves

converted

to capital

(share

capital)

2. Surplus

reserves

converted

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

comprehens

ive income

6. Other

(V) 2031 203198 225919.7 2257909.Reasonable

reserve 989.76 9.76 5 51

1.15315

Withdrawal 153158 1796670. 17112557

in report 886.4 86.41 76 .17

period 1

2. Usage in

report 13283 132838 1570751. 1485464

13WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

period 896.6 96.65 01 7.66

5

147241147241313622.51786033.

(VI)Others

1.171.17875

IV. Balance

at the end 97198 28203 10000 14716 51010 153525 1971048289 7743928 2048484

of the 6293.0 95511.3 5328.0 4765.4 0496.0 21697.8 52515.6

report 080.04 57.31 5372.94

period 0 5 0 2 0 2 3

Last period

In RMB

2024 semi-annual

Owners’ equity attributable to the parent Company

Other

equity instrument

Other Pro

Item Per Less: compr Reaso visiSurplu on Ot Minority

Total

Share Pref petu Capital Invent ehensi nable s of Retained he Subtotal interests

owners’

al reserve ory ve reserv profit equitycapital erre Ot

d capi shares incom e

reserve gen r

stoc tal

he

e eral

k secu

r risk

ritie

s

I. Balance at 10021 33081 53328 54156 51010 150549 1939983641 7783300 2017822

the end of the 62793. 70140. 9512. 915.9 0496. 50398.1 92671.7

last year 439.97 89.26 2761.0400 96 24 7 00 2 8

Add: Changes

of accounting

policy

Error

correction of

the last period

Other

II. Balance at 10021 33081 53328 54156 51010 150549 1939983641 7783300 2017822

the beginning 62793. 70140. 9512. 915.9 0496. 50398.1 92671.7

of this year 439.97 89.26 2761.0400 96 24 7 00 2 8

III. Increase/

Decrease in - -- - - -

report period 63567 21869 2249 5649387 1981664

(Decrease is 51765 57803 176450 366772420.0 656.7 826.00 5.50 3.95listed with “- 00.00 297.69 23.10 31.55”)06

-

(i) Total 21869 954341 932471 4724655 9797181

comprehensiv

e income 656.7 269.90 613.14 4.52 67.66

6

(ii) Owners’ -- -

devoted and 63567 9000000. 9000000.decreased 51765 58390 420.0 00 00

capital 00.00 920.00

0

1.Common

shares 9000000. 9000000.invested by 00 00

shareholders

2. Capital

invested by

holders of

other equity

instruments

3. Amount

reckoned into

owners equity

with share-

based

payment

4. Other - - -

14WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

517655839063567

00.00920.00420.0

0

---

(III) Profit

distribution 971986 971986 9719862

293.00293.0093.00

1. Withdrawal

of surplus

reserves

2. Withdrawal

of general risk

provisions

3. Distribution - - -

for owners (or 971986 971986 9719862

shareholders) 293.00 293.00 93.00

4. Other

(IV) Carrying

forward

internal

owners’ equity

1. Capital

reserves

converted to

capital (share

capital)

2. Surplus

reserves

converted 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

comprehensiv

e income

6. Other

(V) 2249 224982 190612.6 2440438.Reasonable

reserve 826.00 6.00 0 60

1. Withdrawal 14355 143555 1693142. 1604866

in report 523.6

period 23.67 61 6.287

12105

2. Usage in 121056 1502530. 1360822

report period 697.6 97.67 01 7.68

7

587622587622.644330.6

(VI)Others 56708.38.31319

IV. Balance at 32503 46972 32287 51010 150373 193632996986 5891 8348239 2019803

the end of the 66843. 2092. 259.2 0496. 05375.0 15440.2

report period 293.00 265.97 64.76 9404.9927 24 1 00 2 3

8. Statement of changes in owners’ equity (parent company)

Current period

In RMB

2025 semi-annual

Item Share Other Capital Less: Other Reason Surplus Retained Ot Total owners’

capital equity instrument reserve Inventory comprehe able reserve profit her equity

15WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Prefer Perpetual Oth shares nsive reservered capital er incomestock securities

I. Balance at

the end of the 9969862 3394923 4697220 5101004 12572820 1700510851

last year 93.00 686.54 92.24 96.00 128.71 2.01

Add: Changes

of accounting

policy

Error

correction of

the last period

Other

II. Balance at

the beginning 9969862 3394923 4697220 5101004 12572820 1700510851

of this year 93.00 686.54 92.24 96.00 128.71 2.01

III. Increase/

Decrease in - - -

report period 2500000 4445375 3697167 114156833 14336043.17

(Decrease is 0.00 54.14 64.24 .07

listed with “-”)

(i) Total

comprehensive 986630326 986630326.7

income .77 7

(ii) Owners’

devoted and - - - -

decreased 2500000 4447260 3697167 100009237.0

capital 0.00 01.26 64.24 2

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 2500000 4447260 3697167 100009237.0

0.0001.2664.242

(III) Profit - -

distribution 872473493 872473493.7.70 0

1. Withdrawal

of surplus

reserves

2. Distribution - -

for owners (or 872473493 872473493.7

shareholders) .70 0

3. Other

(IV) Carrying

forward

internal

owners’ equity

1. Capital

reserves

converted to

capital (share

capital)

2. Surplus

reserves

converted to

capital (share

capital)

3. Remedying

loss with

surplus reserve

4．Carry-over

retained

earnings from

the defined

benefit plans

5．Carry-over

retained

16WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

earnings from

other

comprehensive

income

6. Other

(V)

Reasonable

reserve

1. Withdrawal

in report 30036

period 87.87

3003687.87

2. Usage in 30036

report period 87.87 3003687.87

(VI)Others 188447.12 188447.12

IV. Balance at

the end of the 9719862 2950386 1000053 5101004 12686976 1701944455

report period 93.00 132.40 28.00 96.00 961.78 5.18

Last period

In RMB

2024 semi-annual

Other

Other

Item Share equity instrument Capital Less: comprehe Reasona

capital Prefe Perpetual reserve Inventory nsive ble

Surplus Retained Oth Total owners’

Oth shares reserve reserve profit er equityrred capital income

stock securities er

I. Balance at

the end of the 1002162 3412506 5332895 5101004 12253874 1664535477

last year 793.00 010.91 12.24 96.00 983.95 1.62

Add: Changes

of accounting

policy

Error

correction of

the last period

Other

II. Balance at

the beginning 1002162 3412506 5332895 5101004 12253874 1664535477

of this year 793.00 010.91 12.24 96.00 983.95 1.62

III. Increase/

Decrease in - - - - -

report period 5176500 5883923 6356742 35521982 355668145.6

(Decrease is .00 6.80 0.00 8.80 0

listed with “-”)

(i) Total

comprehensive 61676646 616766464.2

income 4.20 0

(ii) Owners’

devoted and - - -

decreased 5176500 5839092 6356742

capital .00 0.00 0.00

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 5839092 6356742.000.000.00

(III) Profit - -

distribution 97198629 971986293.03.00 0

1. Withdrawal

of surplus

reserves

2. Distribution - -

17WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

for owners (or 97198629 971986293.0

shareholders) 3.00 0

3. Other

(IV) Carrying

forward

internal

owners’ equity

1. Capital

reserves

converted to

capital (share

capital)

2. Surplus

reserves

converted to

capital (share

capital)

3. Remedying

loss with

surplus reserve

4．Carry-over

retained

earnings from

the defined

benefit plans

5．Carry-over

retained

earnings from

other

comprehensive

income

6. Other

(V)

Reasonable

reserve

1. Withdrawal

in report 30890

period 03.81

3089003.81

2. Usage in 30890

report period 03.81 3089003.81

-

(VI)Others 448316.8 -448316.80

0

IV. Balance at

the end of the 9969862 3353666 4697220 5101004 11898655 1628968662

report period 93.00 774.11 92.24 96.00 155.15 6.02

18WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

III. Basic information of the Company

1. Historical origin of the Company

By the approval of STGS (1992) No. 130 issued by Jiangsu Economic Restructuring Committee Weifu High-Technology Group Co.Ltd. (hereinafter referred to “the Company” or “Company”) was established as a company of limited liability with funds raised from

targeted sources and registered at Wuxi Administration for Industry & Commerce in October 1992. The original share capital of the

Company totaled 115.4355 million yuan including state-owned share capital amounting to 92.4355 million yuan public corporate

share capital amounting to 8.00 million yuan and inner employee share capital amounting to 15.00 million yuan.Between year of 1994 and 1995 the Company was restructured and became a holding subsidiary of Wuxi Weifu Group Co. Ltd

(hereinafter referred to as “Weifu Group”).By the approval of Jiangsu ERC and Shenzhen Securities Administration Office in August 1995 the Company issued 68 million

special ordinary shares (B-share) with value of 1.00 yuan for each and the total value of those shares amounted to 68 million yuan.After the issuance the Company’s total share capital increased to 183.4355 million yuan.By the approval of CSRC in June 1998 the Company issued 120 million RMB ordinary shares (A-share) at Shenzhen Stock

Exchange through on-line pricing and issuing. After the issuance the total share capital of the Company amounted to 303.4355

million yuan.In the middle of 1999 deliberated and approved by the Board and Shareholders’ General Meeting the Company implemented the

plan of granting 3 bonus shares for each 10 shares. After that the total share capital of the Company amounted to 394.46615 million

yuan of which state-owned shares amounted to 120.16615 million yuan public corporate shares 10.4 million yuan foreign-funded

shares (B-share) 88.40 million yuan RMB ordinary shares (A-share) 156 million yuan and inner employee shares 19.5 million yuan.In the year 2000 by the approval of the CSRC and based upon the total share capital of 303.4355 million shares after the issuance of

A-share in June 1998 the Company allotted 3 shares for each 10 shares with a price of 10 yuan for each allotted share. Actually 41.9

million shares was allotted and the total share capital after the allotment increased to 436.36615 million yuan of which state-owned

corporate shares amounted to 121.56615 million yuan public corporate shares 10.4 million yuan foreign-funded shares (B-share)

88.4 million yuan and RMB ordinary shares (A-share) 216 million yuan.

In April 2005 the Board of Directors of the Company examined and approved 2004 Profit Pre-distribution Plan and examined and

approved by 2004 Shareholders’ General Meeting the Company distributed 3 shares for each 10 shares to the whole shareholders

totaling to 130909845 shares in 2005.According to the Share Merger Reform Scheme of the Company deliberated and approved by related shareholders’ meeting of Share

Merger Reform and SGZF [2006] No.61 Reply on Questions about State-owned Equity Management in Share Merger Reform of

Weifu High-Technology Co. Ltd. issued by the State-owned Assets Supervision & Administration Commission of Jiangsu Province

8 non-circulating shareholders including Weifu Group arranged pricing with granting 1.7 shares for each 10 shares to circulating A-

share shareholders (totally granted 47736000 shares) so as to realize the originally non-circulating shares can be traded on market

when certain conditions were satisfying the scheme was implemented on April 5 2006.On May 27 2009 Weifu Group satisfied the consideration arrangement by dispatching 0.5 shares for each 10 shares based on the

number of circulating A share as prior to Share Merger Reform according to the aforesaid Share Merger Reform with an aggregate

of 14039979 shares dispatched. Subsequent to implementation of dispatch of consideration shares Weifu Group then held

100021999 shares of the Company representing 17.63% of the total share capital of the Company.

Pursuant to the document (XGZQ (2009) No.46) about Approval for Merger of Wuxi Weifu Group Co. Ltd. by Wuxi Industry

Development Group Co. Ltd. issued by the State-owned Assets Supervision and Administration Commission of Wuxi City

Government Wuxi Industry Development Group Co. Ltd. (hereinafter referred to as Wuxi Industry Group) acquired Weifu Group.After the merger Weifu Group was then revoked and its assets and credits & debts were transferred to be under the name of Wuxi

Industry Group. Accordingly Wuxi Industry Group has became the first largest shareholder of the Company since then.In accordance with the resolutions of shareholders' meeting and provisions of amended constitution and approved by [2012] No. 109

document of China Securities Regulatory Commission in February 2012 the Company issued RMB ordinary shares (A-share) of

19WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

112858000 shares to Wuxi Industry Groups and overseas strategic investors privately Robert Bosch Co. Ltd. (ROBERT

BOSCHGMBH) (hereinafter referred to as Robert Bosch Company) face value was 1.00 yuan per share added registered capital of

112858000 yuan and the registered capital after change was 680133995 yuan. Wuxi Industry Group is the first majority

shareholder of the Company and Robert Bosch Company is the second majority shareholder of the Company.In March 2013 the profit distribution pre-plan for year of 2012 was deliberated and approved by the Board and also was approved

by the Annual General Meeting 2012 of the Company in May 2013. On basis of total share capital 680133995 shares distributed 5-

share for every 10 shares held by whole shareholders 340066997 shares in total are distributed. Total share capital of the Company

amounted to 1020200992 yuan up to December 31 2013.Deliberated and approved by the company’s first extraordinary general meeting in 2015 the company has repurchased 11250422

shares of A shares from August 26 2015 to September 8 2015 and finished the cancellation procedures for above repurchase shares

in China Securities Depository and Clearing Corporation Limited Shenzhen Branch on September 16 2015; after the cancellation of

repurchase shares the company’s paid-up capital (share capital) becomes 1008950570 yuan after the change.Deliberated and approved by the 5th meeting of 10th session of the BOD for year of 2021 the 291000 restricted shares were buy-back

and canceled by the Company initially granted under the 2020 Restricted Share Incentive Plan. The cancellation of the above-

mentioned buy-back shares are completed at the Shenzhen Branch of CSDC on December 20 2021; the paid-in capital (equity) of

the Company was 1008659570.00 yuan after the change.After deliberation and approved by the 8th meeting of 10th session of the BOD for year of 2022 the 56277 restricted shares were

bought back and canceled by the Company initially granted under the 2020 Restricted Share Incentive Plan. The cancellation of the

above-mentioned buy-back shares were completed at the Shenzhen Branch of CSDC on July 8 2022; the paid-in capital (equity) of

the Company was 1008603293.00 yuan after the change.After deliberation and approval by the the 14th 16th and 20th meetings of the 10th session of the BOD of the Company for the year of

2023 the 430000 5593500 and 417000 restricted shares were bought back and canceled by the Company initially granted under

under the 2020 Restricted Share Incentive Plan. The cancellation of the above-mentioned buy-back shares were completed at the

Shenzhen Branch of CSDC on February 16 2023 June 16 2023 and December 18 2023; the paid-in capital (equity) of the

Company was 1002162793 yuan after changed.On April 16 2025 and May 9 2025 the company held the 6th meeting of the 11th session of the Board of Directors and the 2024

Annual General Meeting of Shareholders respectively and reviewed and approved the Proposal on Changing the Purpose of

Repurchased Shares and Canceling Them. It was agreed to change the purpose of 25 million A-shares in the special securities

account for share repurchase from “for the implementation of employee stock ownership plans or equity incentive plans” to “forcancellation and reduction of registered capital”. As of June 26 2025 the company has completed the cancellation procedures for the

above-mentioned 25 million repurchased shares at the Shenzhen Branch of China Securities Depository and Clearing Corporation

Limited.

2. Registered place organization structure and head office of the Company

Registered place and head office of the Company: No.5 Huashan Road Xinwu District Wuxi

Unified social credit code: 91320200250456967N

The Company sets up Shareholders’ General Meeting the Board of Directors (BOD) and the Board of Supervisors (BOS).The Company sets up Administration Department Technology Centre organization & personnel department Office of the Board

compliance department IT department Strategy & new business Department market development department Party-masses

Department Finance Department Purchase DepartmentManufacturing Quality Department MS (Mechanical System) division

AC(Automotive Components) division and DS (Diesel System ) division etc. and subsidiaries such as Wuxi Weifu LIDA Catalytic

Converter Co. Ltd Nanjing WFJN Co. Ltd IRD Fuel Cells A/S Borit NV VHIO.

20WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

3. Business nature and major operation activities of the Company

Operation scope of parent company: Technical development and consulting services in the machinery industry; manufacturing of

internal combustion engine fuel system products fuel system testing instruments and equipment automotive electronic components

automotive electrical components non-standard equipment non-standard cutting tools and exhaust gas post-treatment systems; sales

of general machinery hardware electrical appliances chemical products and raw materials (excluding hazardous chemicals)

automotive parts and motor vehicles (excluding passenger vehicles with less than nine seats); maintenance of internal combustion

engines; leasing of self-owned properties; import and export of various goods and technologies on a self-operated and agency basis

(excluding goods and technologies restricted or prohibited from import and export by the state). Engineering and technical research

and experimental development; research and development of energy recovery systems; manufacturing of automotive parts and

accessories; manufacturing of general equipment (excluding special equipment manufacturing) (projects that require approval in

accordance with laws can only be carried out after being approved by relevant departments). Licensed projects: Manufacturing of

special equipment; installation renovation and repair of special equipment (projects that require approval in accordance with laws

can only be carried out after being approved by relevant departments and the specific business projects shall be subject to the

approval results); General projects: Investment activities with self-owned funds; software development; software sales; software

outsourcing services; mold manufacturing; mold sales; manufacturing of machine tool functional components and accessories; sales

of machine tool functional components and accessories; manufacturing of drawing computing and measuring instruments; sales of

drawing computing and measuring instruments; sales of industrial robots; installation and maintenance 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

equipment; sales of material handling equipment; manufacturing of gas and liquid separation and purification equipment; sales of gas

and liquid separation and purification equipment; technical services technical development technical consultation technical

exchanges technology transfer technology promotion; research and development of new energy technologies; import and export of

goods; import and export of technologies; manufacturing of ordinary valves and cocks (excluding special equipment manufacturing);

research and development of valves and cocks; sales of valves and cocks (except for projects that require approval in accordance with

laws independent business activities shall be carried out in accordance with laws with a business license).The main subsidiaries are respectively engaged in the production and sales of internal combustion engine parts automotive parts

mufflers purifiers fuel cell parts etc.

4. Authorized reporting parties and reporting dates for the financial report

Financial report of the Company was approved by the Board of Directors for reporting dated August 22 2025.

5. In the notes to these financial statements unless otherwise specified the following company names are

abbreviated as follows:

Name of subsidiary Short name of subsidiary

Nanjing WFJN Co. Ltd. WFJN

Wuxi Weifu Lida Catalytic Converter Co. Ltd. WFLD

Wuxi Weifu Nanshan Fuel Injection Equipment Co. Ltd. WFMA

Wuxi Weifu Chang’an Co. Ltd. WFCA

Wuxi Weifu International Trade Co. Ltd. WFTR

Wuxi Weifu Schmitter Powertrain Components Co. Ltd. WFSC

Ningbo WFTT Turbocharging Technology Co. Ltd. WFTT

Wuxi WFAM Precision Machinery Co. Ltd. WFAM

21WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Name of subsidiary Short name of subsidiary

Wuxi Weifu LIDA Catalytic Converter (Wuhan) Co. Ltd. WFLD(Wuhan)

Weifu Lida (Chongqing) Automotive Components Co. Ltd. WFLD(Chongqing)

Nanchang Weifu LIDA Automotive Components Co. Ltd. WFLD(Nanchang)

Wuxi Weifu Autosmart Seating System Co. Ltd. WFAS

Weifu Lianhua Automotive Components (Fuzhou) Co. Ltd. WFLH

Wuxi Weifu E-drive Technologies Co. Ltd. WFDT

Wuxi Weifu Qinglong Power Technology Co. Ltd. WFQL

VHITAutomotive Systems (Wuxi) Co. Ltd VHCN

WEIFU Smart Sensing (Wuxi) Technology Co. Ltd. WFSS

Weifu ET Hydrogen Energy Technology (Wuxi) Co. Ltd. WFET

Weifu Holding ApS SPV

IRD Fuel Cells A/S IRD

IRD FUEL CELLS LLC IRD America

Borit NV Borit

Borit Inc. Borit America

VHIT S.p.A. Società Unipersonale VHIO

IV. Basis of preparation of financial statements

1．Preparation base

The financial statements are stated in compliance with Accounting Standard for Business Enterprises –Basic Norms issued by the

Ministry of Finance the specific accounting rules the Application Instruments of Accounting Standards and interpretation on

Accounting standards and other relevant regulations (together as “Accounting Standards for Business Enterprise”) as well as the

Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No.15 – General Provision of

Financial Report (Revised in 2023) issued by CSRC in respect of the actual transactions and proceedings on a basis of ongoing

operation.In line with relevant regulations of Accounting Standards of Business Enterprise accounting of the Company is on Accrued basis.Except for certain financial instruments the financial statement measured on historical cost. Assets have impairment been found;

corresponding depreciation reserves shall Accrued according to relevant rules.

2．Going concern

The Company comprehensively assessed the available information and there are no obvious factors that impact sustainable operation

ability of the Company within 12 months since end of the report period.V. Major accounting policies and estimation

Specific accounting policies and estimation attention:

Based on the actual production and operation characteristics the company and each of its subsidiaries have formulated a number of

specific accounting policies and accounting estimates for various transactions and events in accordance with the provisions of

relevant accounting standards for enterprises. The detailed descriptions are as follows.

1．Statement on observation of accounting standard for business enterprises

22WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

The financial statements prepared by the company comply with the requirements of accounting standards for enterprises truthfully

and completely reflecting the company's financial position operating results cash flows and other relevant information of in report

period.

2．Accounting periods

The accounting periods of the Company are divided into annual periods and interim periods. An interim accounting period refers to a

report period that is shorter than a full accounting year. The Company's accounting year adopts the calendar year that is from

January 1st to December 31st of each year.

3．Operating cycle

The Company takes 12 months as an operating cycle and uses it as the criterion for classifying the liquidity of assets and liabilities.

4．Functional currency

The currency used by the Company in preparing these financial statements is the Renminbi. The overseas subsidiaries of the

Company determine their functional currencies based on the currencies in the main economic environment where they operate such

as the Euro Danish Krone US Dollar etc.

5．Method for determining importance criteria and selection criteria

□Applicable □ Not applicable

Item Importance criteria

Important prepayments with an aging Prepayment with aging over 1 year accounting for more than 10% of the total prepaid amount

of over 1 year and with an amount greater than 15 million yuan

Important construction in progress The budget for a single project is greater than 80 million yuan

Important accounts payable with an Accounts payable with aging over 1 year accounting for more than 10% of the total accounts

aging of over 1 year payable and with an amount greater than 80 million yuan

Other important payables with aging Other payables with aging over 1 year accounting for more than 10% of the total other

of over 1 year payables and an amount greater than 15 million yuan

Important contract liabilities with Contract liabilities with aging over 1 year account for more than 10% of the total contract

aging of over 1 year liabilities and the amount greater than 15 million yuan

The net assets of subsidiaries account for more than 5% of the net assets in the consolidated

Important non-wholly-owned

financial statements or the net profit of subsidiaries accounts for more than 10% of the net

subsidiaries

profit in the consolidated financial statements

The book value of long-term equity investments in an invested entity accounts for more than

5% of the net assets in the consolidated financial statements and the amount exceeds 1 billion

Important joint ventures or associates yuan or the investment gains/losses under the equity method account for more than 10% of the

net profits in the consolidated financial statements of the company and the amount exceeds 100

million yuan

6．Accounting treatment methods for business combinations under the same control and under non-Same

control

Business combination refers to a transaction or event that combines two or more separate enterprises to form a single reporting entity.Business combinations are classified into business combinations under the same control and business combinations under non-same

control.

（1）Business combinations under the same control

A business combination under the same control occurs when the enterprises involved in the combination are ultimately controlled by

the same party or the same group of parties both before and after the combination and such control is not temporary. In a business

combination under the same control the party that obtains control over the other enterprise involved in the combination on the

combination date is the combining party and the other enterprise involved in the combination are the combined parties. The

combination date refers to the date on which the combining party actually obtains control over the combined party.

23WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

The assets and liabilities obtained by the company in a business combination are measured at their carrying amounts in the

consolidated financial statements of the ultimate controlling party on the combination date including the goodwill formed when the

ultimate controlling party acquired the combined party. If there is a difference between the carrying amount of the net assets obtained

and the carrying amount of the combination consideration paid (or the total par value of the issued shares) it shall be adjusted against

the share premium in capital reserve. If the share premium in capital reserve is insufficient to cover the difference the retained

earnings shall be adjusted.All direct expenses incurred by the combining party for the business combination shall be recognized as current profits and losses

when incurred.

（2）Business combinations under not the same control

A business combination under non-same control occurs when the enterprises involved in the combination are not ultimately

controlled by the same party or the same group of parties both before and after the combination. In a business combination under

non-same control the party that obtains control over the other enterprises involved in the combination on the acquisition date is the

acquirer and the other enterprise involved in the combination are the acquirees. The acquisition date refers to the date on which the

acquirer actually obtains control over the acquiree.For a business combination under non-same control the combination cost includes the fair values of the assets transferred the

liabilities incurred or assumed and the equity securities issued by the acquirer on the acquisition date in order to obtain control over

the acquiree. The intermediary expenses such as audit legal services and valuation consultation as well as other administrative

expenses incurred for the business combination shall be recognized as current profits and losses when incurred. The transaction costs

related to the equity securities or debt securities issued by the acquirer as consideration for the combination shall be included in the

initial recognition amount of the equity securities or debt securities. The contingent consideration involved shall be included in the

combination cost at its fair value on the acquisition date. If new or further evidence of the circumstances existing on the acquisition

date emerges within 12 months after the acquisition date which requires adjustment of the contingent consideration the goodwill of

the combination shall be adjusted accordingly. The combination cost incurred by the acquirer and the identifiable net assets obtained

in the combination shall be measured at their fair values on the acquisition date. If the combination cost is greater than the acquirer's

share of the fair value of the identifiable net assets of the acquiree on the acquisition date the difference shall be recognized as

goodwill. If the combination cost is less than the acquirer's share of the fair value of the identifiable net assets of the acquiree the fair

values of the identifiable assets liabilities and contingent liabilities of the acquiree obtained as well as the measurement of the

combination cost shall first be rechecked. If after the recheck the combination cost is still less than the acquirer's share of the fair

value of the identifiable net assets of the acquiree the difference shall be recognized as current profits and losses.If the acquirer obtains the deductible temporary differences of the acquiree but does not recognize them as deferred income tax assets

on the acquisition date because the recognition conditions for deferred income tax assets are not met and within 12 months after the

acquisition date new or further information indicates that the relevant circumstances on the acquisition date already existed and it is

expected that the economic benefits brought by the deductible temporary differences of the acquiree on the acquisition date can be

realized the relevant deferred income tax assets shall be recognized and at the same time the goodwill shall be reduced. If the

goodwill is insufficient to cover the reduction the remaining difference shall be recognized as current profits and losses. Except for

the above circumstances the recognition of deferred income tax assets related to the business combination shall be included in

current profits and losses.For a business combination under non-same control achieved in multiple transactions in stages if it is part of a “package oftransactions” the accounting treatment shall be carried out with reference to the descriptions in the preceding paragraphs of this

section and Note III.14 Long-Term Equity Investments these financial statements. If it is not part of a “package of transactions”

relevant accounting treatments shall be carried out separately for the individual financial statements and the consolidated financial

statements:

In the individual financial statements the initial investment cost of the investment shall be the sum of the carrying amount of the

equity investment in the acquiree held before the acquisition date and the additional investment cost on the acquisition date. If the

equity of the acquiree held before the acquisition date involves other comprehensive income when disposing of the investment the

24WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

relevant other comprehensive income shall be accounted for on the same basis as that used by the acquiree when directly disposing of

the relevant assets or liabilities (i.e. except for the corresponding share of the changes in the net liabilities or net assets of the defined

benefit plan remeasured by the acquiree accounted for under the equity method the rest shall be transferred to the current investment

income).In the consolidated financial statements for the equity of the acquiree held before the acquisition date it shall be re-measured at its

fair value on the acquisition date and the difference between the fair value and its carrying amount shall be included in the current

investment income. If the equity of the acquiree held before the acquisition date involves other comprehensive income the relevant

other comprehensive income shall be accounted for on the same basis as that used by the acquiree when directly disposing of the

relevant assets or liabilities (i.e. except for the corresponding share of the changes in the net liabilities or net assets of the defined

benefit plan remeasured by the acquiree accounted for under the equity method the rest shall be transferred to the investment income

of the current period to which the acquisition date belongs).

7．Criteria for judging control and preparation method for consolidated financial statements

(1) Criteria for judging control

The consolidation scope of the consolidated financial statements is determined on the basis of control. Control means that the

company has the power over the investee enjoys variable returns by participating in the relevant activities of the investee and has

the ability to use its power over the investee to influence the amount of those returns. Generally it includes the invested entities in

which the parent company holds more than half of the voting rights and the invested entities in which the company holds less than

half of the voting rights but through agreements with other investors of the invested entity holds more than half of the voting rights;

according to the articles of association or agreements it has the right to determine the financial and operational decisions of the

invested entity; it has the right to appoint and remove the majority of the members of the board of directors of the invested entity; and

it holds the majority of the voting rights on the board of directors of the invested entity.

(2) Methods for preparing consolidated financial statements

The company begins to include a subsidiary in the consolidation scope from the date when it obtains the actual control over the

subsidiary's net assets and production and operation decisions and stops including it in the consolidation scope from the date when it

loses the actual control. For a disposed subsidiary the operating results and cash flows before the disposal date have been

appropriately included in the consolidated income statement and the consolidated cash flow statement; for a subsidiary disposed of in

the current period the beginning figures of the consolidated balance sheet will not be adjusted. For a subsidiary added through a

business combination under non-same control its operating results and cash flows after the acquisition date have been appropriately

included in the consolidated income statement and the consolidated cash flow statement and the beginning figures and comparative

figures of the consolidated financial statements will not be adjusted. For a subsidiary added through a business combination under the

same control its operating results and cash flows from the beginning of the current consolidation period to the combination date have

been appropriately included in the consolidated income statement and the consolidated cash flow statement and the comparative

figures of the consolidated financial statements will be adjusted at the same time.When preparing the consolidated financial statements if the accounting policies or accounting periods adopted by a subsidiary are

inconsistent with those of the company necessary adjustments will be made to the subsidiary's financial statements in accordance

with the company's accounting policies and accounting periods. For a subsidiary obtained through a business combination under non-

same control its financial statements will be adjusted based on the fair value of the identifiable net assets at the acquisition date.All significant intercompany balances transactions and unrealized profits within the company will be eliminated when preparing the

consolidated financial statements.The portion of the subsidiary's shareholders' equity and current net profit and loss that does not belong to the company will be

separately presented as the minority shareholders' equity and the minority shareholders' profit and loss under the shareholders' equity

and net profit items in the consolidated financial statements. The share of the subsidiary's current net profit and loss attributable to

the minority shareholders will be presented as the item "Minority Shareholders' Profit and Loss" under the net profit item in the

consolidated income statement. If the losses of the subsidiary borne by the minority shareholders exceed the share of the minority

shareholders in the subsidiary's beginning shareholders' equity the minority shareholders' equity will still be reduced. When the

25WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

control over a subsidiary is ceased due to disposal of a portion of an interest in a subsidiary the fair value of the remaining equity is

re-measured on the date when the control ceased. The difference between the sum of the consideration received from disposal of

equity and the fair value of the remaining equity less the net assets attributable to the company since the acquisition date is

recognized as the investment income from the loss of control. Other comprehensive income relating to original equity investment in

subsidiaries shall be treated on the same basis as if the relevant assets or liabilities were disposed of by the purchaser directly when

the control is lost namely be transferred to current investment income other than the relevant part of the movement arising from re-

measuring net liabilities or net assets under defined benefit scheme by the original subsidiary. Subsequent measurement of the

remaining equitys shall be in accordance with relevant accounting standards such as Accounting Standards for business Enterprises 2

– Long-term Equity Investments or Accounting Standards for business Enterprises 22 – Financial Instruments Recognition and

Measurement. Refer to Note V.18 Long-term Equity investment or Note V.11 Financial Instrument

The company shall determine whether loss of control arising from disposal in a series of transactions should be regarded as package

deal. When the economic effects and terms and conditions of the disposal transactions meet one or more of the following situations

the transactions shall normally be accounted for as package deal: * The transactions are entered into after considering the mutual

consequences of each individual transaction; * The transactions need to be considered as a whole in order to achieve a deal in

commercial sense;* The occurrence of an individual transaction depends on the occurrence of one or more individual transactions in

the series; * The result of an individual transaction is not economical but it would be economical after taking into account of other

transactions in the series. When the transactions are not regarded as package deal the individual transactions shall be accounted as

“disposal of a portion of an interest in a subsidiary which does not lead to loss of control” and “disposal of a portion of an interest ina subsidiary which led to loss of control”. When the transactions are regarded as package deal the transactions shall be accounted as

a single disposal transaction; however the difference between the consideration received from disposal and the share of net assets

disposed in each individual transactions before loss of control shall be recognized as other comprehensive income and reclassified as

profit or loss arising from the loss of control when control is lost.

8．Classification of joint arrangements and accounting treatment methods for joint operations

A joint arrangement refers to an arrangement jointly controlled by two or more participating parties. Based on the rights enjoyed and

obligations assumed by the company in the joint arrangement the joint arrangement is classified into joint operations and joint

ventures. A joint operation is a joint arrangement in which the company enjoys the relevant assets of the arrangement and assumes

the relevant liabilities of the arrangement. A joint venture is a joint arrangement in which the company has rights only to the net

assets of the arrangement.The company accounts for its investment in a joint venture using the equity method and deals with it in accordance with the

accounting policies described in Note V.18 (2) * "Long-Term Equity Investments Accounted for by the Equity Method" of these

notes.As a party to a joint operation the company recognizes the assets held solely by the company the liabilities borne solely by the

company and also recognizes according to its share the jointly held assets and jointly borne liabilities; recognizes the revenue

generated from the sale of the company's share of the output of the joint operation; recognizes according to its share the revenue

generated by the joint operation from the sale of the output; recognizes the expenses incurred solely by the company and also

recognizes according to its share the expenses incurred by the joint operation.When the company as a party to a joint operation contributes or sells assets (such assets do not constitute a business the same

below) to the joint operation or purchases assets from the joint operation before such assets are sold to a third party the company

only recognizes the portion of the profit or loss arising from the transaction that is attributable to the other participating parties of the

joint operation. If the assets incur asset impairment losses in accordance with the provisions of Accounting Standards for Enterprises

No. 8 - Asset Impairment and other relevant regulations in the case of the company contributing or selling assets to the joint

operation the company fully recognizes the loss; in the case of the company purchasing assets from the joint operation the company

recognizes the loss according to its assumed share.

9．Recognition standards for cash and cash equivalents

26WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Cash refers to stock cash savings available for paid at any time; cash and cash equivalent refers to the cash held by the Company

with short terms (expired within 3 months since purchased) and liquid and easy to transfer as known amount and investment with

minor variation in risks.

10．Foreign currency business and translation of foreign currency financial statements

(1) Translation method for foreign currency transactions

When a foreign currency transaction occurs in the company it is initially recognized and translated into the amount in the functional

currency at the spot exchange rate on the transaction date. However for foreign currency exchange transactions or transactions

involving foreign currency exchange conducted by the company they are translated into the amount in the functional currency at the

actual exchange rate applied.

(2) Translation methods for foreign currency monetary items and foreign currency non-monetary items

On the balance sheet date foreign currency monetary items are translated at the spot exchange rate on the balance sheet date. The

resulting exchange differences will be booked into current profits and losses except for the followings: * the exchange differences

arising from foreign currency special loans related to the acquisition and construction of assets qualified for capitalization which are

accounted for in accordance with the principles of capitalizing borrowing costs; * the exchange differences of hedging instruments

for effective hedging of net investments in overseas operations (such differences are booked into other comprehensive income and

will only be recognized as current profits and losses when the net investment is disposed of); * for available-for-sale foreign

currency monetary items the exchange differences arising from changes in other carrying amounts other than the amortized cost are

included in other comprehensive income .When preparing consolidated financial statements involving overseas operations if there are foreign currency monetary items that

substantially constitute a net investment in overseas operations the exchange differences arising from exchange rate fluctuations are

included in other comprehensive income; when the overseas operation is disposed of they are transferred to the profit or loss of the

current period of disposal.For foreign currency non-monetary items measured at historical cost they are still measured at the amount in the functional currency

translated at the spot exchange rate on the date of the transaction. For foreign currency non-monetary items measured at fair value

they are translated at the spot exchange rate on the date when the fair value is determined. The difference between the translated

amount in the functional currency and the original amount in the functional currency is treated as changes in fair value (including

exchange rate changes) and is included in current profits and losses or recognized as other comprehensive income.

(3) Translation method for foreign currency financial statements

When preparing consolidated financial statements involving overseas operations if there are foreign currency monetary items that

substantially constitute a net investment in overseas operations the exchange differences arising from exchange rate fluctuations are

recognized as other comprehensive income as "translation differences of foreign currency financial statements"; when the overseas

operation is disposed of they are booked into the profit or loss of the current period of disposal.The foreign currency financial statements of overseas operations are translated into RMB financial statements according to the

following methods: The assets and liabilities items in the balance sheet are translated at the spot exchange rate on the balance sheet

date; for items in the shareholders' equity category except for the "undistributed profits" item other items are translated at the spot

exchange rate at the time of occurrence. The revenue and expense items in the income statement are translated at the spot exchange

rate on the date of the transaction. The undistributed profits at the end of the previous year are the undistributed profits at the end of

the previous year after translation in the previous year; the undistributed profits at the end of the period are calculated and presented

according to each item of the translated profit distribution; the difference between the total of the translated asset items and the total

of the liability items and shareholders' equity items is recognized as other comprehensive income as the translation differences of

foreign currency financial statements. When disposing of an overseas operation and losing control all or in proportion to the disposal

of the overseas operation the translation differences of foreign currency financial statements related to the overseas operation and

shown under the shareholders' equity items in the balance sheet are transferred to the profit or loss of the current period of disposal.

27WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

The foreign currency cash flows and the cash flows of overseas subsidiaries are calculated at the spot exchange rate on the date when

the cash flows occur. The impact of exchange rate changes on cash is presented separately as a reconciliation item in the cash flow

statement.Balance at the end of the previous year and the actual amount of the previous year are presented according to the amounts after

translation of the previous year's financial statements.When disposing of all the owners' equity of the company's overseas operation or losing control of the overseas operation due to the

disposal of part of the equity investment or other reasons all the translation differences of foreign currency financial statements

related to the overseas operation and attributable to the owners' equity of the parent company shown under the shareholders' equity

items in the balance sheet are transferred to the profit or loss of the current period of disposal.When the proportion of equitys in an overseas operation held is reduced due to the disposal of part of the equity investment or other

reasons but control over the overseas operation is not lost the translation differences of foreign currency financial statements related

to the disposed part of the overseas operation are attributable to the minority shareholders' equity and are not transferred to the

current profits and losses. When disposing of part of the equity of an overseas operation that is an associated enterprise or a joint

venture the translation differences of foreign currency financial statements related to the overseas operation are transferred to the

profit or loss of the current period of disposal in proportion to the disposal of the overseas operation.

11．Financial instruments

A financial asset or financial liability is recognized when the Company becomes a party to a financial instrument contract.

(1) Classification recognition and measurement of financial assets

Based on the business model for managing the financial assets and the contractual cash flow characteristics of the financial assets the

Company classifies financial assets into financial assets measured at amortized cost financial assets measured at fair value through

other comprehensive income and financial assets measured at fair value through profit or loss.Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair value through profit or loss

the relevant transaction costs are directly recognized in current gains/losses; for other categories of financial assets the relevant

transaction costs are included in the initial recognition amount. For accounts receivable or notes receivable arising from the sale of

products or the provision of services that do not contain or do not consider a significant financing component the Company uses the

amount of consideration it expects to be entitled to receive as the initial recognition amount.* Financial assets measured at amortized cost

The Company's business model for managing financial assets measured at amortized cost is to collect contractual cash flows and the

contractual cash flow characteristics of such financial assets are consistent with basic lending arrangements that is the cash flows

generated on specific dates are only payments of principal and interest based on the outstanding principal amount. For such financial

assets the Company uses the effective interest rate method and measures them subsequently at amortized cost. The gains or losses

arising from amortization or impairment are recognized in current gains/losses.* Financial assets measured at fair value through other comprehensive income

The Company's business model for managing such financial assets is both to collect contractual cash flows and to sell and the

contractual cash flow characteristics of such financial assets are consistent with basic lending arrangements. The Company measures

such financial assets at fair value and recognizes the changes in fair value in other comprehensive income but impairment losses or

gains exchange differences and interest income calculated using the effective interest rate method are recognized in current

gains/losses.In addition the Company designates some non-tradable equity instrument investments as financial assets measured at fair value

through other comprehensive income. The Company recognizes the relevant dividend income from such financial assets in current

gains/losses and recognizes the changes in fair value in other comprehensive income. When such financial assets are derecognized

the cumulative gains or losses previously recognized in other comprehensive income will be transferred from other comprehensive

income to retained earnings and will not be recognized in current gains/losses.* Financial assets measured at fair value through profit or loss

28WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

The Company classifies financial assets other than those measured at amortized cost and those measured at fair value through other

comprehensive income as financial assets measured at fair value through profit or loss. In addition upon initial recognition in order

to eliminate or significantly reduce accounting mismatches the Company designates some financial assets as financial assets

measured at fair value through profit or loss. For such financial assets the Company measures them subsequently at fair value and

the changes in fair value are recognized in current gains/losses.

(2) Classification recognition and measurement of financial liabilities

Financial liabilities are classified upon initial recognition as financial liabilities measured at fair value through profit or loss and other

financial liabilities. For financial liabilities measured at fair value through profit or loss the relevant transaction costs are directly

recognized in current gains/losses and the relevant transaction costs of other financial liabilities are included in their initial

recognition amount.* Financial liabilities measured at fair value through profit or loss

Financial liabilities measured at fair value through profit or loss include trading financial liabilities (including derivative instruments

that are financial liabilities) and financial liabilities designated upon initial recognition as measured at fair value through profit or loss.Trading financial liabilities (including derivative instruments that are financial liabilities) are measured subsequently at fair value.Except for those related to hedge accounting the changes in fair value are recognized in current gains/losses.For financial liabilities designated as measured at fair value through profit or loss the changes in fair value caused by the changes in

the Company's own credit risk are recognized in other comprehensive income and when the liability is derecognized the cumulative

changes in fair value caused by the changes in its own credit risk that have been recognized in other comprehensive income are

transferred to retained earnings. The remaining changes in fair value are recognized in current gains/losses. If accounting for the

impact of the changes in the own credit risk of such financial liabilities in the above manner would result in or exacerbate accounting

mismatches in profit or loss the Company will recognize all the gains or losses (including the impact amount of the changes in the

enterprise's own credit risk) of such financial liabilities in current gains/losses.* Other financial liabilities

Other financial liabilities except for financial liabilities arising from financial asset transfers that do not meet the derecognition

criteria or from continued involvement in the transferred financial assets and financial guarantee contracts are classified as financial

liabilities measured at amortized cost and are measured subsequently at amortized cost. The gains or losses arising from

derecognition or amortization are recognized in current gains/losses.

(3) Recognition criteria and measurement methods for financial asset transfers

A financial asset is derecognized if one of the following conditions is met: * The contractual right to receive the cash flows of the

financial asset expires; * The financial asset has been transferred and substantially all the risks and rewards of ownership of the

financial asset have been transferred to the transferee; * The financial asset has been transferred and although the enterprise has

neither transferred nor retained substantially all the risks and rewards of ownership of the financial asset it has relinquished control

of the financial asset.If the enterprise has neither transferred nor retained substantially all the risks and rewards of ownership of the financial asset and has

not relinquished control of the financial asset it shall recognize the relevant financial assets to the extent of its continuing

involvement in the transferred financial asset and recognize the relevant liabilities accordingly. The extent of continuing involvement

in the transferred financial asset refers to the level of risk to which the enterprise is exposed due to changes in the value of the

financial asset.When the transfer of a financial asset in its entirety meets the derecognition criteria the difference between the carrying amount of

the transferred financial asset the consideration received as a result of the transfer and the cumulative amount of changes in fair

value originally recognized in other comprehensive income is recognized in current gains/losses.When a partial transfer of a financial asset meets the derecognition criteria the carrying amount of the transferred financial asset is

allocated between the derecognized and non-derecognized parts based on their relative fair values and the difference between the

consideration received as a result of the transfer the cumulative amount of changes in fair value originally recognized in other

29WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

comprehensive income that should be allocated to the derecognized part and the allocated carrying amount is recognized in current

gains/losses.When the Company sells a financial asset with recourse or endorses and transfers a held financial asset it needs to determine whether

substantially all the risks and rewards of ownership of the financial asset have been transferred. If substantially all the risks and

rewards of ownership of the financial asset have been transferred to the transferee the financial asset is derecognized; if substantially

all the risks and rewards of ownership of the financial asset have been retained the financial asset is not derecognized; if neither

substantially all the risks and rewards of ownership of the financial asset have been transferred nor retained the enterprise will

continue to determine whether it retains control over the asset and conduct accounting treatment in accordance with the principles

described in the preceding paragraphs.

(4) Derecognition of financial liabilities

When the current obligation of a financial liability (or a part thereof) has been discharged the Company derecognizes the financial

liability (or the part of the financial liability). When the Company (the borrower) enters into an agreement with the lender to replace

the original financial liability by assuming a new financial liability and the contractual terms of the new financial liability are

substantially different from those of the original financial liability the original financial liability is derecognized and a new financial

liability is recognized at the same time. When the Company makes a substantial modification to the contractual terms of the original

financial liability (or a part thereof) the original financial liability is derecognized and a new financial liability is recognized in

accordance with the modified terms at the same time.When a financial liability (or a part thereof) is derecognized the Company recognizes the difference between its carrying amount and

the consideration paid (including the transferred non-cash assets or the assumed liabilities) in current gains/losses.

(5) Balance-out between the financial assets and liabilities

As the company has the legal right to balance out the financial liabilities by the net or liquidation of the financial assets the balance-

out sum between the financial assets and liabilities is listed in the balance sheet. In addition the financial assets and liabilities are

listed in the balance sheet without being balanced out.

(6) Fair value determination method for financial assets and financial liabilities

Fair value refers to the price that market participants can receive from selling an asset or pay to transfer a liability in an orderly

transaction that occurs on the measurement date. If there is an active market for financial instruments the company determines their

fair value using quotes from the active market. The quotation in an active market refers to the price that is easily obtained regularly

from exchanges brokers industry associations pricing service agencies etc. and represents the actual market transaction price that

occurs in fair trade. If there is no active market for financial instruments the company uses valuation techniques to determine their

fair value. Valuation techniques include referencing prices used in recent market transactions by parties familiar with the situation

and willing to trade referencing the current fair value of other financial instruments that are substantially the same discounted cash

flow method and option pricing models.At the time of valuation the company adopts valuation techniques that are applicable in the

current situation and supported by sufficient available data and other information selects input values that are consistent with the

asset or liability characteristics considered by market participants in transactions related to the asset or liability and prioritizes the use

of relevant observable input values as much as possible. In situations where observable input values cannot be obtained or are not

feasible to obtain use non input values.Impairment of financial assets

The financial assets that the company needs to recognize impairment losses are financial assets measured at amortized cost and debt

instrument investments measured at fair value with changes in fair value recognized in other comprehensive income mainly

including notes receivable accounts receivable contract assets other receivables creditors' investments other creditors' investments

long-term receivables etc. In addition for some financial guarantee contracts impairment provision and credit impairment losses are

also recognized in accordance with the accounting policies described in this section.

(1) Recognition method for impairment provision

Based on expected credit loss the company has made impairment provision and recognized credit impairment losses for the above-

mentioned items with the applicable expected credit loss measurement methods (general or simplified methods).

30WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Credit loss refers to the difference between all contract cash flows receivable discounted at the original effective interest rate and all

expected cash flows received by the company that is to say the present value of all cash shortfall. Among them for financial assets

that have been purchased or generated and have experienced credit impairment the Company will discount them at the actual interest

rate adjusted for credit of the financial asset.The general method for measuring expected credit loss refers to the assessment of whether the credit risk of financial assets has

significantly increased since initial recognition by the Company on each balance sheet date. If the credit risk has significantly

increased since initial recognition the Company measures the impairment provision based on an amount equivalent to the expected

credit loss over the entire period of existence; If the credit risk does not significantly increase after initial recognition the company

measures the impairment provision based on an amount equivalent to the expected credit loss within the next 12 months. When

evaluating expected credit loss the company considers all reasonable and evidence-based information including forward-looking

information.For financial instruments with low credit risk on the balance sheet date the Company assumes that their credit risk has not

significantly increased since initial recognition and chooses to measure the impairment provision based on the expected credit loss in

the next 12 months/does not choose a simplified treatment method and measures the impairment provision based on whether their

credit risk has significantly increased since initial recognition using the expected credit loss amount in the next 12 months or the

entire duration as the basis.

(2) Criteria for determining whether credit risk has significantly increased since initial recognition

If the default probability of a financial asset during the expected duration determined on the balance sheet date is significantly higher

than the default probability during the expected duration determined at initial recognition it indicates a significant increase in credit

risk of the financial asset. Except in special circumstances the company uses the changes in default risk that will occur within the

next 12 months as a reasonable estimate of the changes in default risk that will occur throughout the entire existence period to

determine whether credit risk has significantly increased since initial recognition.Usually if the overdue period exceeds 30 days the company considers that the credit risk of the financial instrument has significantly

increased unless there is conclusive evidence to prove that the credit risk of the financial instrument has not significantly increased

since initial recognition.When evaluating whether credit risk has significantly increased the company will consider the following factors:

Whether there has been a significant change in the actual or expected operating results of the debtor;

Whether there have been significant adverse changes in the regulatory economic or technological environment in which the debtor

is located;

Whether there have been significant changes in the value of the collateral used as collateral for debt or the quality of the guarantee or

credit enhancement provided by a third party which is expected to reduce the debtor's economic motivation to repay within the

contractually stipulated period or affect the probability of default;

Whether there have been significant changes in the debtor's expected performance and repayment behavior;

Has there been any change in the company's credit management methods for financial instruments.On the balance sheet date if the Company determines that a financial instrument has only low credit risk the Company assumes that

the credit risk of the financial instrument has not significantly increased since initial recognition. If the default risk of a financial

instrument is low the borrower has a strong ability to fulfill its contractual cash flow obligations in the short term and even if there

are adverse changes in the economic situation and operating environment over a longer period of time it may not necessarily reduce

the borrower's ability to fulfill its contractual cash obligations then the financial instrument is considered to have low credit risk.

(3) Portfolio-based approach for evaluating expected credit risk

The company evaluates the credit risk of financial assets with significantly different credit risks such as accounts receivable from

related parties accounts receivable that are in dispute with the other party or involve litigation or arbitration there are clear

indications that the debtor may not be able to fulfill their repayment obligations such as accounts receivable.In addition to financial assets assessed for credit risk individually the company divides financial assets into different groups based on

common risk characteristics. The common credit risk characteristics adopted by the company include financial instrument type credit

31WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

risk rating aging portfolio overdue aging portfolio contract settlement period debtor's industry etc. Credit risk is evaluated based

on portfolio.

(4) Accounting treatment methods for impairment of financial assets

At the end of the period the Company calculates the estimated credit losses of various financial assets. If the estimated credit loss is

greater than the carrying amount of its current impairment provision the difference is recognized as an impairment loss; If it is less

than the carrying amount of the current impairment provision the difference is recognized as an impairment gain.Methods for determining credit losses of financial assets

Except for separately evaluating credit risk accounts receivable the company divides accounts receivable into different portfolios

based on common risk characteristics and evaluates credit risk on the basis of the portfolio. The specific basis for determining

different portfolios and methods for measuring expected credit loss are as follows:

Item Basis for determining the portfolio Specific methods for measuring expected credit loss

For accounts receivable within six months the company

does not provide for expected credit loss; In addition the

Accounts receivable financing - company believes that the credit risk of the bank acceptance

bank acceptance bill portfolio Bank acceptance bill bills it holds is relatively low and will not cause significantlosses due to bank defaults. Therefore the expected credit

loss shall not be measured for the corresponding receivables

financing bank acceptance portfolio.For accounts receivable within six months the company

does not provide for expected credit loss; In addition the

credit risk of the commercial acceptance bills held by the

Accounts receivable - company is relatively low as these bills are mainly issued

commercial acceptance bill Commercial acceptance bill by reputable automobile manufacturers. Based on historical

portfolio experience there have been no significant defaults.Therefore the company doesn’t measure expected credit

loss for the portfolio of accounts receivable and commercial

acceptance bills

Accounts receivable other than

Accounts Receivable - accounts receivable from internal

Customer Portfolio related parties and those for which Measure expected credit loss based on agingcredit impairment losses have been

individually provisioned

Other receivables except for Based on historical credit loss experience combined with

Other receivables - accounts accounts receivable from internal current conditions and predictions of future economic

receivable other portfolio related parties and accounts for conditions the expected credit loss is calculated by defaultwhich credit impairment losses risk exposure and the expected credit loss rate for the next

have been individually provisioned 12 months or the entire duration.For accounts receivable that are measured for expected credit loss based on their aging their aging is calculated continuously from

the initial recognition date of the debt. The corresponding provision ratio for expected credit loss at different aging stages is as

follows:

Aging Provision ratio (%)

Within 6 months --

6 months - 1 year 10.00

1 - 2 years 20.00

2 -3 years 40.00

Over three years 100.00

12．Notes receivable

Notes receivable 1: bank acceptance

Notes receivable 2: trade acceptance

The Company calculates expected credit loss by referring to historical credit loss experience taking into account current conditions

and forecasts of the future economic situation.

32WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

13．Accounts receivable

Accounts receivable 1: receivable from clients

Accounts receivable 2: receivable from internal related party

The Company calculates expected credit loss by referring to historical credit loss experience taking into account current conditions

and forecasts of the future economic situation.

14．Receivable financing

The note receivable and accounts receivable which are measured at fair value and whose changes are included in other

comprehensive income are classified as receivables financing within one year(inclusive) from the date of acquisition. Refer to more

relevant accounting policies in Note V.11 Financial Instrument.

15．Other accounts receivable

Determination method of expected credit loss and accounting treatment

Other accounts receivable 1: receivable from internal related party

Other accounts receivable 2: receivable from others

The Company calculates expected credit loss by referring to historical credit loss experience taking into account current conditions

and forecasts of the future economic situation.

16．Contract assets

Recognition methods and criteria for contract assets: Contract assets refer to the right of the company to receive consideration in

return for having transferred goods or provided services to customers and this right depends on factors other than the passage of time.The company's unconditional right to receive consideration from customers (i.e. depending solely on the passage of time) is

separately presented as accounts receivable.Determination method for expected credit loss on contract assets: The method for determining expected credit loss on contract assets

is consistent with that for expected credit loss on accounts receivable.Accounting treatment method for expected credit loss on contract assets: When contract assets are impaired the company debits the

"Asset Impairment Loss" account and credits the "Contract Asset Impairment Reserve" account for the amount to be written down;

when reversing the already accrued asset impairment provision the opposite accounting entry is made.

17．Inventory

（1）Classification of inventory

Inventory mainly includes raw materials product in process finished products contract performance costs etc.

（2）The pricing method for outbound inventory

Valuation shall be based on the weighted average method for outbound inventory;

（3） The perpetual inventory system is applied.

（4）Amortization method for low value consumables and packaging materials

Low value consumables are amortized with one-time amortization method upon receipt; Packaging materials are amortized with one-

time amortization method upon receipt.

（5）Recognition criteria and provision method for impairment provision for inventory

The net realizable value of inventory refers to the estimated selling price of inventory in daily activities minus the estimated costs to

be incurred until completion estimated sales expenses and related taxes. When determining the net realizable value of inventory it is

based on conclusive evidence obtained while considering the purpose of holding inventory and the impact of events after the balance

sheet date.On the balance sheet date inventory is measured at the lower of cost or net realizable value. When its net realizable value is lower

than its cost the provision for inventory impairment is withdrawn. The provision for inventory impairment is usually withdrawn

based on the difference between the cost of a single inventory item and its net realizable value. For inventory with a large quantity

and low unit price the provision for inventory impairment shall be withdrawn according to the inventory category; For inventory

33WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

related to product lines produced and sold in the same region with the same or similar end use or purpose and difficult to measure

separately from other items the provision for inventory impairment can be made through consolidation.After the provision for inventory impairment has been made if the influencing factors that previously reduced the value of inventory

have disappeared resulting in the net realizable value of inventory higher than its book value it shall be reversed within the original

provision for inventory impairment and the reversed amount shall be included in the current gains/losses.

18．Assets held for sale

（1）Non-current assets held for sale and disposal group

If the Company mainly recovers the book value of a non-current asset through sale (including exchange of non-monetary assets with

commercial substance the same below) rather than continuing to use it or disposing of it it will be classified as held for sale. The

specific criteria are to meet the following conditions simultaneously: a non-current asset or disposal group can be immediately sold

under the current circumstances in accordance with the customary practice of selling such assets or disposal groups in similar

transactions; The company has made a resolution regarding the sale plan and obtained a confirmed purchase commitment; The sale is

expected to 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 as well as the liabilities directly related to these assets transferred in the transaction. If

the asset group or the portfolio of asset groups to which the disposal group belongs has been allocated the goodwill acquired in the

business combination in accordance with the Accounting Standards for Enterprises No. 8- Impairment of Assets the disposal group

shall include the goodwill allocated to the disposal group.When the Company initially measures or re-measures non-current assets held for sale and disposal groups on the balance sheet date

if their carrying value is higher than the net amount of fair value minus selling expenses the carrying value shall be reduced to the

net amount of fair value minus selling expenses and the reduced amount shall be recognized as asset impairment loss and included in

the current gains/losses. At the same time the impairment provision for held for sale assets shall be made. For the disposal group the

recognized impairment loss of assets is first offset against the carrying amount of goodwill in the disposal group and then

proportionally offset against the carrying amount of various non-current assets within the disposal group that are subject to the

measurement provisions of the Accounting Standards for Enterprises No. 42- Non-current Assets Held for Sale Disposal Groups and

Discontinued Operations (hereinafter referred to as the “Standards of Assets Held for Sale”).If the net amount after deducting the

selling expenses from the fair value of the disposal group held for sale on the subsequent balance sheet date increases the previously

written down amount should be restored and reversed within the asset impairment loss amount recognized for non-current assets

measured under the Standards of Assets Held for Sale after being classified as holding for sale. The reversed amount should be

included in the current gains/losses and the book value of each non-current asset measured under the Standards of Assets Held for

Sale in the disposal group except for goodwill should be increased proportionally based on the proportion of its book value; The

book value of goodwill that has been offset as well as the impairment losses recognized for non-current assets under the holding for

sale standard before being classified as held for sale shall not be reversed.The non-current assets held for sale or disposed of in

disposal groups are not subject to depreciation or amortization and interest and other expenses on liabilities held for sale in disposal

groups continue to be recognized.In case non-current assets or disposal groups no longer meet the criteria for being classified as held for sale the Company will no

longer continue to classify them as assets held for sale or remove non-current assets from the disposal group and measure them in

terms of the lower of the following two: (1) the book value of such assets before being classified as assets held for sale adjusted for

depreciation amortization impairment etc. that would have been recognized if not classified assets held for sale; (2) Recoverable

amount.

（2）Recognition criteria and reporting methods for termination of operations

Termination of operation refers to a component that meets one of the following conditions can be distinguished separately and has

been disposed of or classified as held for sale: 1) the component represents an independent main business or an independent main

operating region; 2) This component is part of a related plan to dispose of an independent major business or a separate major

operating area; 3) This component is a subsidiary acquired specifically for resale.

34WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

The company reports the relevant gains/losses arising from termination of operation in the income statement and discloses the impact

of termination in the notes.

19．Long term equity investment

The long-term equity investment referred to in this section refers to the long-term equity investment in which the company has

control joint control or significant influence over the invested entity. The long-term equity investments that the Company does not

have control joint control or significant influence over the investee are accounted for as financial assets measured at fair value with

changes recognized in current gains/losses. If they are non trading the Company may designate them as financial assets measured at

fair value with changes recognized in other comprehensive income at initial recognition. The accounting policy is detailed in Note

V.11 Financial Instruments.Joint control refers to the shared control of a certain arrangement by the company in accordance with relevant agreements and the

related activities of the arrangement must be unanimously agreed upon by the parties sharing control rights before making decisions.Significant impact refers to the power of the company to participate in decision-making on the financial and operational policies of

the invested entity but the company fails to control or jointly control the formulation of these policies with other parties.

（1）Recognition of investment cost

For a long-term equity investment acquired through a business combination involving enterprises under common control the initial

investment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of the owner’s equity

under the consolidated financial statements of the ultimate controlling party on the date of combination. The difference between the

initial cost of the long-term equity investment and the cash paid non-cash assets transferred as well as the book value of the debts

borne by the absorbing party shall offset against the capital reserve. If the capital reserve is insufficient to offset the retained earnings

shall be adjusted. If the consideration of the merger is satisfied by issue of equity securities the initial investment cost of the long-

term equity investment shall be the absorbing party’s share of the carrying amount of the owner’s equity under the consolidated

financial statements of the ultimate controlling party on the date of combination. With the total face value of the shares issued as

share capital the difference between the initial cost of the long-term equity investment and total face value of the shares issued shall

be used to offset against the capital reserve. If the capital reserve is insufficient to offset the retained earnings shall be adjusted. For

business combination resulting in an enterprise under common control by acquiring equity of the absorbing party under common

control through a stage-up approach with several transactions these transactions will be judged whether they shall be treated as

“package deal”. If they belong to “package deal” these transactions will be accounted for a transaction in obtaining control. If they

are not belonging to “package deal” the initial investment cost of the long-term equity investment shall be the absorbing party’s

share of the carrying amount of the owner’s equity under the consolidated financial statements of the ultimate controlling party on the

date of combination. The difference between the initial cost of the long-term equity investment and the aggregate of the carrying

amount of the long-term equity investment before merging and the carrying amount the additional consideration paid for further

share acquisition on the date of combination shall offset against the capital reserve. If the capital reserve is insufficient to offset the

retained earnings shall be adjusted. Other comprehensive income recognized as a result of the previously held equity investment

accounted for using equity method on the date of combination or recognized for available-for-sale financial assets will not be

accounted for.For business combination resulted in an enterprise not under common control by acquiring equity of the acquire under common

control through a stage-up approach with several transactions these transactions will be judged whether they shall be treat as

“package deal”. If they belong to “package deal” these transactions will be accounted for a transaction in obtaining control. If they

are not belonging to “package deal” the initial investment cost of the long-term equity investment accounted for using cost method

shall be the aggregate of the carrying amount of equity investment previously held by the acquire and the additional investment cost.For previously held equity accounted for using equity method relevant other comprehensive income will not be accounted for.The intermediary fees such as audit legal services evaluation consulting and other related management expenses incurred by the

merging or purchasing party for the enterprise merger shall be included in the current gains/losses at the time of occurrence.Except for long-term equity investments formed by corporate mergers other equity investments are initially measured at cost which

35WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

is determined on the basis of the actual cash purchase price paid by the company the fair value of equity securities issued by the

company the value agreed upon in investment contracts or agreements the fair value or original book value of assets exchanged in

non-monetary asset exchange transactions and the fair value of the long-term equity investment itself depending on the method of

acquisition. The expenses taxes and other necessary expenditures directly related to obtaining long-term equity investments are also

booked into investment cost. For long-term equity investments that can have a significant impact on the investee or exercise joint

control but do not constitute control due to additional investments the cost of long-term equity investments is the sum of the fair

value of the original held equity investment determined in accordance with the Accounting Standards for Enterprises No. 22-

Recognition and Measurement of Financial Instruments and the cost of additional investments.

（2）Subsequent measurement and recognition methods of gains/losses

Long term equity investments that have joint control (excluding joint operators) or significant influence over the invested entity shall

be measured with the equity method. Besides in the company's financial statements long-term equity investments that can exercise

control over the investee is measured with cost method.* Long term equity investments measured with cost method

When measured with cost method long-term equity investments are valued at their initial investment costs and the cost of long-term

equity investment shall be adjusted in case of additional or recovered investments. Current investment income is recognized based on

the cash dividends or profits declared but not yet distributed by the investee except for the actual payment made at the time of

investment or the cash dividends or profits included in the consideration.* Long term equity investments measured with equity method

When measured with equity method where the initial investment cost of a long-term equity investment exceeds the investor’s

interest in the fair value of the invested party’s identifiable net assets at the acquisition date no adjustment shall be made to the initial

investment cost. Where the initial investment cost is less than the investor’s interest in the fair value of the invested party’s

identifiable net assets at the acquisition date the difference shall be charged to current gains/losses and the cost of the long-term

equity investment shall be adjusted accordingly.When measured with the equity method investment income and other comprehensive income shall be recognized on the basis of the

Group’s share of the net gains/losses and other comprehensive income made by the invested party respectively. Meanwhile the

carrying amount of long-term equity investment shall be adjusted. The carrying amount of long-term equity investment shall be

reduced in terms of the Group’s share of profit or cash dividend distributed by the invested party. In respect of changes in

shareholders’ equity other than net gains/losses other comprehensive income and profit distribution of invested party the carrying

value of long-term equity investment shall be adjusted and included in the capital reserves. Share in the invested party’s net

gains/losses shall be recognized after the net profit of the investee is adjusted on the basis of the fair values of the invested party’s

individual separately identifiable assets at the time of acquisition. In the event of in-conformity between the accounting policies and

accounting periods of the invested party and the Company the financial statements of the invested party shall be adjusted in

conformity with the accounting policies and accounting periods of the Company. Investment income and other comprehensive

income shall be recognized accordingly. In respect of the transactions between the Group and its associates and joint ventures in

which the assets disposed of or sold are not classified as operation the share of unrealized gains/losses arising from inter-group

transactions shall be offset by the portion attributable to the Company. Investment gain shall be recognized accordingly. However

any unrealized loss arising from inter-group transactions between the Group and an invested party will not be offset to the extent that

the loss is impairment loss of the transferred assets. In the event that the Group disposed of an asset classified as operation to its joint

ventures or associates which resulted in acquisition of long-term equity investment by the investor without obtaining control the

initial investment cost of additional long-term equity investment shall be the fair value of disposed operation. The difference between

initial investment cost and the carrying value of disposed operation will be fully booked into current gains/losses. In the event that

the Group sold an asset classified as operation to its associates or joint ventures the difference between the carrying value of

consideration received and operation shall be fully booked into current gains/losses. In the event that the Company acquired an asset

which formed an operation from its associates or joint ventures relevant transaction shall be accounted for in accordance with

36WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

“Accounting Standards for Business Enterprises No. 20 “Business combination”. Gains/losses related to the transaction shall be

measured in full.The Group’s share in the net losses of the invested party shall be recognized to the extent that the carrying amount of the long-term

equity investment together with any long-term interests that in substance form part of the investor’s net investment in the invested

party are reduced to zero. If the Group has to assume additional obligations the expected liabilities shall be recognized in terms of

the estimated obligation assumed and be booked into the investment loss for the period. Where the invested party makes profits in

subsequent periods the profits attributed to the company shall be firstly used to make up unrecognized losses.* Acquisition of minority interest

At the time of preparing consolidated financial statements the difference between the increase in the long-term equity investment

raising from the purchase of minority interest and the net assets attributable to the subsidiary which are measured continuously since

the purchase date (or combination date) in terms of the proportion of newly acquired shares shall be used to adjust the capital surplus

or retained earnings in case capital surplus is insufficient.* Disposal of long-term equity investments

In consolidated financial statements in case the parent company disposes part of long-term equity investments in a subsidiary

without loss of control the difference between disposal price and the net asset of the subsidiary related to the disposal of the long-

term equity investments shall be booked into the owners’ equity. If disposal of a portion of the long-term equity investments in a

subsidiary by the parent company results in the loss of its control on the subsidiary the relevant accounting policies described in

Note 3.7(2). “Preparation method of consolidated financial statements” shall prevail.On disposal of a long-term equity investment otherwise the difference between the carrying amount of the investment and the actual

consideration paid is recognized through current gains/losses.In respect of the long-term equity investment measured with equity method in case the remaining equity after disposal is also

measured with equity method other comprehensive income previously under owners’ equity shall be accounted for in accordance

with the same accounting treatment for direct disposal of relevant asset or liability by invested party on pro rata basis at the time of

disposal. The owners’ equity recognized due to changes in other owners’ equity (excluding net gains/losses other comprehensive

income and profit distribution of invested party) shall be transferred to current gains/losses on pro rata basis.In respect of long-term equity investment measured with cost method in case the remaining equity is also measured with equity

method after disposal other comprehensive income recognized and measured with equity method or recognition and measurement

principle before control over the invested party shall be accounted for in terms of the same accounting treatment for direct disposal

of relevant asset or liability by invested party on pro rata basis at the time of disposal and shall be transferred to current gains/losses

on pro rata basis; among the net assets of invested party unit recognized with equity method (excluding net gains/losses other

comprehensive income and profit distribution of invested party) shall be transferred to current gains/losses on pro rata basis.In the event of loss of control over invested party due to partial disposal of equity investment by the group at the time of preparing

separate financial statements the remaining equity which can apply common control or impose significant influence over the

invested party after disposal shall be measured with equity method. Such remaining equity shall be treated as being measured with

equity method since it is obtained and adjustment shall be made accordingly. The remaining equity which cannot apply common

control or impose significant influence over the invested party after disposal shall be accounted for in accordance with the

recognition and measurement principles for financial instruments. The difference between its fair value and carrying amount as at the

date of losing control shall be booked into current gains/losses. In respect of other comprehensive income recognized with equity

method or the recognition and measurement principles of financial instruments before the company obtains control over the invested

party it shall be accounted for in accordance with the same accounting treatment for direct disposal of relevant asset or liability by

invested party at the time when the control over invested party is lost. Changes in other owners’ equity than net gains/losses other

comprehensive income and profit distribution) under net asset of invested party recognized with equity method shall be transferred to

current gains/losses at the time when the control over invested party is lost. Of which for the remaining equity after disposal

measured with equity method other comprehensive income and other owners’ equity shall be carried forward on pro rata basis and

for the remaining equity after disposal measured with the recognition and measurement principles of financial instruments other

37WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

comprehensive income and other owners’ equity shall be fully transferred.In the event of loss of common control or significant influence over invested party due to partial disposal of equity investment by the

Group the remaining equity after disposal shall be accounted for using the recognition and measurement standard of financial

instruments. The difference between its fair value and carrying amount as at the date of losing common control or significant

influence shall be included in current gains/losses. In respect of other comprehensive income recognized under previous equity

investment using equity method it shall be accounted for in accordance with the same accounting treatment for direct disposal of

relevant asset or liability by invested party at the time when equity method was ceased to be used. Movement of other owners’ equity

(excluding net profit or loss other comprehensive income and profit distribution under net asset of invested party accounted for and

recognized using equity method) shall be transferred to current gains/losses at the time when equity method was ceased to be used.The Group disposes its equity investment in subsidiary by a stage-up approach with several transactions until the control over the

subsidiary is lost. If the said transactions belong to “package deal” each transaction shall be accounted for as a single transaction of

disposing equity investment of subsidiary and loss of control. The difference between the disposal consideration for each transaction

and the carrying amount of the corresponding long-term equity investment of disposed equity before loss of control shall initially

recognized as other comprehensive income and subsequently transferred to profit or loss arising from loss of control for the current

period upon loss of control.

20．Investment properties

Measurement model of investment properties

Measured with cost method

Depreciation or amortization method

Investment properties refer to properties held for the purpose of earning rental income or capital appreciation or both. They include

leased land use rights land use rights held for the purpose of appreciation and subsequent transfer leased buildings etc.Investment properties are initially measured at cost. Subsequent expenditures related to investment properties are included in the cost

of investment properties if it is highly probable that the economic benefits related to the asset will flow into the enterprise and the

cost can be measured reliably. Other subsequent expenditures are recognized in current gains/losses when they occur.The company measures subsequent investment properties with the cost model and depreciates or amortizes them in accordance with

the same policies as those for buildings or land use rights.For the impairment test methods and the methods for provision of impairment losses of investment properties please refer to Note V.

24 Impairment of Long-term Assets.

When owner-occupied properties or inventories are converted into investment properties or investment properties are converted into

owner-occupied properties the carrying value before the conversion is used as the carrying value after the conversion.When the purpose of an investment property changes to owner-occupation as of the date of the change the investment property is

converted into fixed assets or intangible assets. When the purpose of an owner-occupied property changes to earning rental income or

capital appreciation as of the date of the change the fixed assets or intangible assets are converted into investment properties. Upon

conversion if the investment property is measured with the cost model after conversion the carrying value before the conversion is

used as the carrying value after the conversion; if the investment property is measured with the fair value model after conversion the

fair value on the conversion date is used as the carrying value after the conversion.When an investment property is disposed of or is permanently withdrawn from use and it is expected that no economic benefits can

be obtained from its disposal the investment property shall be derecognized. The disposal proceeds from the sale transfer scrapping

or damage of an investment property after deducting its carrying value and relevant taxes and fees are recognized in current

gains/losses.

21．Fixed assets

（1）Recognition criteria

Fixed assets refer to tangible assets held for the production of goods provision of services leasing or business management with a

useful life exceeding one accounting year. Fixed asset are recognized only when it is probable that the economic benefits associated

38WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

with it will flow to the Company and its cost can be measured reliably. Fixed assets are initially measured at cost taking into account

the expected impact of decommissioning costs.

（2）Depreciation method

Category Depreciation method Years of depreciation Scrap value rate Yearly depreciation rate

Permanent ownership land Straight-line depreciation Indefinite No depreciation

House and building Straight-line depreciation 20~35 5% 2.71%~4.75%

Machinery equipment Straight-line depreciation 10 5% 9.50%

Transportation equipment Straight-line depreciation 4~5 5% 19.00% ~23.75%

Electronic and other

equipment Straight-line depreciation 3～10 5% 9.50%～31.67%

The expected residual value refers to the amount that the Company is currently expected to obtain from the disposal of the fixed asset

after deducting the expected disposal expenses assuming that the fixed asset has reached the end of its expected useful life and is in

the expected state at that time.

（3）Impairment test methods and methods for provision of impairment losses of fixed assets

For the impairment test methods and methods for provision of impairment losses of fixed assets please refer to Note V. 24

“Impairment of Long-term Assets”.

（4）Other explanations

Subsequent expenditures related to fixed assets are booked into the cost of the fixed assets if it is highly probable that the economic

benefits related to the fixed assets will flow into the Company and their costs can be measured reliably and the carrying value of the

replaced part shall be derecognized. Subsequent expenditures other than the above are recognized in current gains/losses when they

occur.A fixed asset shall be derecognized when it is in a state of disposal or when it is expected that no economic benefits can be generated

through its use or disposal. The difference between the disposal proceeds from the sale transfer scrapping or damage of a fixed asset

and its carrying value and relevant taxes and fees shall be recognized in current gains/losses.The Company reviews the useful life expected residual value and depreciation method of fixed assets at least at the end of each year.If any changes occur they will be accounted for as changes in accounting estimates.

22．Construction in progress

The Company's construction in progress is divided into two types built by the company or by the contracting-out method. When the

construction in progress is completed and reaches the intended usable state it is transferred to fixed assets. The criteria for

determining the intended usable state shall meet one of the following situations: The physical construction (including installation) of

the fixed asset has been completely finished or substantially completed; It has undergone trial production or trial operation and the

results indicate that the asset can operate normally or can stably produce qualified products or the trial operation results show that it

can operate or conduct business normally; The expenditure on the constructed fixed asset is very small or hardly occurs any more;

The constructed fixed asset has met the design or contractual requirements or is basically in line with the design or contractual

requirements.When the construction in progress reaches the intended usable state it is transferred to fixed assets at the actual project cost. For

those that have reached the intended usable state but for which the final accounts of the project have not been settled they are first

transferred to fixed assets at the estimated value and after the final accounts of the project are settled the original estimated value is

adjusted according to the actual cost but the originally accrued depreciation will not be adjusted.For the impairment test methods and methods for provision of impairment losses of construction in progress please refer to

Note V. 24 “Impairment of Long-term Assets”.

23．Borrowing costs

39WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Borrowing costs include borrowing interest amortization of discounts or premiums auxiliary expenses and exchange differences

arising from foreign currency borrowings etc. Borrowing costs that can be directly attributed to the acquisition construction or

production of assets that meet the capitalization criteria shall commence to be capitalized when the asset expenditures have been

made the borrowing costs have occurred and the necessary acquisition construction or production activities to bring the asset to the

intended usable or sellable state have started; the capitalization shall cease when the qualifying asset under construction or production

reaches the intended usable or sellable state. The remaining borrowing costs are recognized as expenses in the period in which they

occur.For specific borrowings the amount of interest expense actually incurred during the current period after deducting the interest

income obtained from depositing the unutilized borrowing funds in the bank or the investment income obtained from temporary

investments shall be capitalized; The capitalized amount of general borrowings shall be determined by multiplying the weighted

average of the asset expenditures exceeding the specific borrowings by the capitalization rate of the general borrowings used. The

capitalization rate is determined on the basis of weighted average interest rate of the general borrowings.During the capitalization period the exchange differences of specific foreign currency borrowings shall be capitalized in full; The

exchange differences of general foreign currency borrowings shall be booked into current gains/losses.Assets that meet the capitalization criteria refer to fixed assets investment properties inventories and other assets that require a

substantial period of acquisition construction or production activities to reach the intended usable or sellable state.If an abnormal interruption occurs during the acquisition construction or production of an asset that meets the capitalization criteria

and the interruption period continues for more than 3 months the capitalization of borrowing costs shall be suspended until the

acquisition construction or production activities of the asset resume.Assets that meet the capitalization criteria refer to fixed assets investment properties inventories and other assets that require a

substantial period of acquisition construction or production activities to reach the intended usable or sellable state.

24．Intangible assets

（1）Useful life and its determination basis estimation situation amortization method or review procedure

Intangible assets refer to identifiable non-monetary assets without physical substance that are owned or controlled by the Company.Intangible assets are initially measured at cost. Expenditures related to intangible assets are included in the cost of intangible assets if

it is highly probable that the relevant economic benefits will flow into the Company and the cost can be measured reliably.Expenditures for items other than the above are recognized in current gains/losses when they occur.The acquired land use rights are usually accounted for as intangible assets. When constructing factories and other buildings through

self-development the expenditures for the relevant land use rights and the construction costs of the buildings are accounted for as

intangible assets and fixed assets respectively. In the case of externally purchased houses and buildings the relevant purchase price is

allocated between the land use rights and the buildings. If it is difficult to make a reasonable allocation it shall all be treated as fixed

assets.For intangible assets with a finite useful life the original value minus the expected residual value and the cumulative amount of the

provision for impairment losses already accrued shall be amortized on a straight-line basis and evenly over its expected useful life

starting from the time they are available for use. Intangible assets with an indefinite useful life are not amortized.At the end of the period the useful life and amortization method of intangible assets with a finite useful life shall be reviewed.Changes if any will be accounted for as changes in accounting estimates. In addition the useful life of intangible assets with an

indefinite useful life is also reviewed. If there is evidence indicating that the period during which the intangible asset brings

economic benefits to the enterprise is foreseeable its useful life shall be estimated and such intangible assets shall be amortized in

accordance with the amortization policy for intangible assets with a finite useful life.

（2）Scope of accumulation of R&D expenditures and relevant accounting treatment methods

40WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

The expenditures of the Company's internal research and development projects are divided into expenditures in the research stage

and expenditures in the development stage.Expenditures in the research stage are booked into current gains/losses when they occur.The Company's research and development expenditures includes materials used in research and development labor and service costs

amortization of research and development equipment amortization of other intangible assets and fixed assets used in the

development process and expenses such as water and electricity fees.The specific criteria for the Company to divide the expenditures of internal research and development projects into those in the

research stage and those in the development stage are as follows:

The research stage refers to the stage of original and planned investigations and research activities carried out to acquire and

understand new scientific or technical knowledge; the development stage implies the stage of activities in which research results or

other knowledge are applied to a certain plan or design before commercial production or use in order to produce new or substantially

improved materials devices products etc.Expenditures in the development stage that meet the following conditions simultaneously are recognized as intangible assets and

expenditures in the development stage that do not meet the following conditions are recognized in current gains/losses:

* It is technically feasible to complete the intangible asset so that it can be used or sold;

* There is an intention to complete the intangible asset and use or sell it;

* The way in which the intangible asset generates economic benefits including being able to prove that there is a market for

products produced with such intangible asset or that there is a market for the intangible asset itself. If the intangible asset will be used

internally it can be proved to be useful;

* There are sufficient technical financial and other resources to support the completion of the development of the intangible asset

and capable of using or selling the intangible asset;

* Expenditures attributable to the development stage of the intangible asset can be measured reliably.The specific conditions for capitalizing the expenditures in the development stage of the Company:

If it is impossible to distinguish between expenditures in the research stage and expenditures in the development stage all the

research and development expenditures incurred will be recognized in current gains/losses.

（3）Impairment test methods and methods for provision of impairment losses of intangible assets

For the impairment test methods and methods for provision of impairment losses of intangible assets please refer to Note V. 24

Impairment of Long-term Assets.

25．Impairment of long-term assets

The Company will judge if there are any sings of impairment as at the balance sheet date in respect of non-current non-financial

assets such as fixed assets construction in progress intangible assets with a finite useful life investment properties measured at cost

and long-term equity investments in subsidiaries joint controlled entities and associates. If there is any evidence indicating that an

asset may be impaired recoverable amount shall be estimated for impairment test. Goodwill intangible assets with an indefinite

useful life and intangible assets beyond working conditions will be tested for impairment annually regardless of whether there is any

indication of impairment.If the impairment test result shows that the recoverable amount of an asset is less than its carrying amount the impairment provision

will be made in terms of the difference and recognized as an impairment loss. The recoverable amount of an asset is the higher of its

fair value less costs of disposal and the present value of the future cash flows expected to be derived from the asset. An asset’s fair

value is the price in a sale agreement in an arm’s length transaction. If there is no sale agreement but the asset is traded in an active

market fair value shall be determined on the basis of the bid price. If there is neither sale agreement nor active market for an asset

fair value shall be estimated on the basis of the best available information. Costs of disposal are expenses attributable to disposal of

41WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

the asset including legal fee relevant tax and surcharges transportation fee and direct expenses incurred to prepare the asset for its

intended sale. The present value of the future cash flows expected to be derived from the asset over the course of continued use and

final disposal is determined as the amount discounted at an appropriately selected discount rate. Provisions for assets impairment

shall be made and recognized for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset

the recoverable amount of the asset group to which the asset belongs shall be defined. The asset group is the smallest group of assets

capable of generating cash flows independently.For the purpose of impairment test the carrying amount of goodwill presented separately in the financial statements shall be

allocated to the asset groups or asset group portfolio benefiting from synergy of business combination. If the recoverable amount is

less than the carrying amount the impairment loss shall be recognized. The amount of impairment loss shall first reduce the carrying

amount of any goodwill allocated to the asset group or asset groups portfolio and then reduce the carrying amount of other assets

goodwill within the asset group or asset group portfolio on the basis of the carrying amount of each asset.An impairment loss recognized on the aforesaid assets shall not be reversed in a subsequent period in respect of the part whose value

can be recovered.

26．Long-term deferred expenses

long-term deferred expenses refer to various expenses that have been incurred but are to be amortized over a period of more than one

year and are borne by the current report period and subsequent periods. The long-term deferred expenses of the company mainly

include decoration and renovation costs. The long-term deferred expenses are amortized with the straight - line method over the

expected beneficial period.

27．Contract liabilities

Contract liabilities refer to the obligations of the company to transfer goods to customers in exchange for consideration received or

receivable from customers. If the customer has paid the contract consideration or the company has obtained the unconditional right to

receive payment before the company transfers the goods to the customer the company will record the received or receivable amount

as contract liability at the earlier of the actual payment date by the customer and the due payment date. Contract assets and contract

liabilities under the same contract are presented on a net basis and contract assets and contract liabilities under different contracts are

not offset.

28．Employee compensation

（1）Accounting treatment for short-term compensation

During the accounting period when the staff provides service to the Company the short-term remuneration actual occurred shall be

recognized as liability and be reckoned into current gains/losses. During the accounting period when staff provides service to the

Company the actual short-term compensation occurred shall be recognized as liabilities and be reckoned into current gains/losses

except for those in line with accounting standards or being allowed to be reckoned into capital costs; the welfare occurred shall be

reckoned into current gains/losses or relevant asses costs at the time of actual occurrence. The employee compensation shall be

recognized as liabilities and be reckoned into current gains/losses or relevant assets costs at the time of actual occurrence. The

employee benefits that belong to non-monetary benefits are measured at fair value; the social insurances including the medical

insurance work-injury insurance and maternity insurance and the housing fund that the enterprise pays for the employees as well as

the labor union expenditure and employee education funds withdrawn by relevant provisions should be calculated and determined as

the corresponding compensation amount and determined the corresponding liabilities in accordance with the specified withdrawing

basis and proportion and be reckoned in the current profits and losses or relevant asset costs in the accounting period that the

employees provide services.

（2）Accounting treatment for post-employment benefit

42WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

The post-employment benefit includes the defined contribution plans and defined benefit plans. Post-employment benefits plan refers

to the agreement about the post-employment benefits between the enterprise and employees or the regulations or measures the

enterprise established for providing post-employment benefits to employees. The defined contribution plan refers to the post-

employment benefits plan that the enterprise doesn’t undertake the obligation of payment after depositing the fixed charges to the

independent fund; the defined benefit plans refer to post-employment benefits plans except the defined contribution plan.

（3）Accounting treatment for retirement benefits

In case the Company terminates the employment relationship with employees before the end of the employment contracts or provides

compensation as an offer to encourage employees to accept voluntary redundancy the Company shall recognize employee

compensation liabilities arising from compensation for staff dismissal and included in current gains/losses when the Company

cannot revoke unilaterally compensation for dismissal due to the cancellation of labor relationship plans and employee redundant

proposals; and the Company recognize cost and expenses related to payment of compensation for dismissal and restructuring

whichever is earlier.The early retirement plan shall be accounted for in accordance with the accounting principles for compensation

for termination of employment. The salaries or wages and the social contributions to be paid for the employees who retire before

schedule from the date on which the employees stop rendering services to the scheduled retirement date shall be recognized (as

compensation for termination of employment) in the current profits and losses by the Group if the recognition principles for

provisions are satisfied.

（4）Accounting treatment for other long-term employee benefits

Except for the compulsory insurance the Company provides the supplementary retirement benefits to the employees satisfying

certain conditions the supplementary retirement benefits belong to the defined benefit plans and the defined benefit liability

confirmed on the balance sheet is the value by subtracting the fair value of plan assets from the present value of defined benefit

obligation. The defined benefit obligation is annually calculated with the expected accumulated welfare unit method by the

independent actuary on the basis of treasury bond rate with similar obligation term and currency. The service charges related to the

supplementary retirement benefits (including the service costs of the current period the previous service costs and the settlement

gains or losses) and the net interest are reckoned in the current profits and losses or other asset costs the changes generated by

recalculating the net liabilities of defined benefit plans or net assets should be reckoned in other consolidated income.

29．Anticipated liabilities

When the obligations arising from contingent events such as providing external guarantees litigation matters product quality

warranties and loss contracts become the present obligations of the company and it is highly probable that the fulfillment of these

obligations will lead to an outflow of economic benefits from the company and the amount of these obligations can be reliably

measured the company will recognize these obligations as anticipated liabilities.The company initially measures the anticipated liabilities based on the best estimate of the expenditures required to fulfill the

relevant present obligations and reviews the carrying amount of the anticipated liabilities on the balance sheet date.If all or part of the expenditures required to settle anticipated liabilities are expected to be compensated by a third party the

compensation amount will be recognized as asset separately when it is basically certain that the compensation can be received and

the recognized compensation amount will not exceed the carrying amount of the anticipated liabilities.

30．Share-based payments

（1）Accounting treatment methods for share-based payments

Share-based payments are transactions in which equity instruments are granted or liabilities determined on the basis of equity

instruments are assumed in order to obtain services provided by employees or other parties. Share-based payments are classified into

share-based payments settled with equity instruments and share-based payments settled in cash.

1 Share-based payments settled with equity instruments

43WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

For share-based payments settled by equity instruments in exchange for services provided by employees they are measured at the

fair value of the equity instruments granted to employees on the grant date. In the case where the fair value amount can only be

exercised after the completion of the services during the vesting period or the achievement of the specified performance conditions

based on the best estimate of the number of exercisable equity instruments during the vesting period it is calculated on a straight-line

basis and included in the relevant costs or expenses. When the equity instruments can be exercised immediately after the grant they

are included in the relevant costs or expenses on the grant date and the capital reserve is correspondingly increased. On each balance

sheet date during the vesting period the Company makes the best estimate based on the latest subsequent information such as

changes in the number of employees who are expected to be eligible to exercise the rights and revises the estimated number of

exercisable equity instruments. The impact of the above estimates is included in the relevant costs or expenses of the current period

and the capital reserve is adjusted accordingly.For share-based payments settled by equity instruments in exchange for services provided by other parties if the fair value of the

services provided by other parties can be reliably measured it is measured at the fair value of the services provided by other parties

on the date of acquisition. If the fair value of the services provided by other parties cannot be reliably measured but the fair value of

the equity instruments can be reliably measured it is measured at the fair value of the equity instruments on the date of acquisition of

the services included in the relevant costs or expenses and the shareholders' equity is correspondingly increased.* Cash-settled share-based payment and equity instruments

Cash-settled share-based payments are measured at the fair value of the liabilities calculated and determined on the basis of shares or

other equity instruments undertaken by the Company. If it’s vested immediately after the grant the fair value of the liabilities

assumed on the date of the grant is included in the cost or expense and the liability is increased accordingly. If the service within the

waiting period is completed or the specified performance conditions are met the service obtained in the current period shall be

included in the relevant costs or expenses based on the best estimate of the vesting situation within the waiting period and the fair

value of the liabilities assumed to increase the corresponding liabilities.On each balance sheet date and settlement date before the settlement of the relevant liabilities the fair value of the liabilities is

remeasured and the changes are included in the current gains/losses.

（2）Relevant accounting treatment for modification and termination of share-based payment plans

When the Company modifies a share-based payment plan if the modification increases the fair value of the equity instruments

granted the Company recognizes the increase in the services received accordingly based on the increase in the fair value of the

equity instruments. The increase in the fair value of the equity instruments refers to the difference between the fair values of the

equity instruments before and after the modification on the modification date. If the modification reduces the total fair value of the

share-based payment or adopts other methods unfavorable to employees the Company will still continue to account for the services

received as if the change had never occurred unless the Company cancels some or all of the granted equity instruments.During the waiting period if the granted equity instruments are cancelled the Company will treat the cancellation of the granted

equity instruments as an acceleration of vesting immediately recognize the amount that should be recognized in the remaining

waiting period in the current gains/losses and at the same time recognize the capital reserve. If employees or other parties are able to

choose to meet the non - vesting conditions but fail to do so during the waiting period the Company will treat it as the cancellation of

the granted equity instruments.（ 3） Accounting treatment for share-based payment transactions involving the company and its shareholders or controlling

shareholders

For share-based payment transactions involving the Company and its shareholders or controlling shareholders if one of the

settlement enterprises and the service-receiving enterprise is within the Company's consolidation scope and the other is outside the

Company's consolidation scope the following accounting treatment will be carried out in the Company's consolidated financial

statements:

* If the settlement enterprise settles with its own equity instruments the share-based payment transaction will be treated as an

equity - settled share-based payment; otherwise it will be treated as a cash - settled share-based payment.

44WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

If the settlement enterprise is an investor of the service-receiving enterprise it will recognize the long-term equity investment in the

service-receiving enterprise based on the fair value of the equity instruments on the grant date or the fair value of the liability to be

assumed and at the same time recognize the capital reserve (other capital reserve) or liability.* If the service-receiving enterprise has no settlement obligation or the equity instruments granted to its employees are its own

equity instruments the share-based payment transaction will be treated as an equity - settled share-based payment; if the service-

receiving enterprise has a settlement obligation and the equity instruments granted to its employees are not its own equity instruments

the share-based payment transaction will be treated as a cash - settled share-based payment.For share-based payment transactions among enterprises within the Company's consolidation scope if the service-receiving

enterprise and the settlement enterprise are not the same enterprise the recognition and measurement of the share-based payment

transaction in the individual financial statements of the service-receiving enterprise and the settlement enterprise will be handled by

referring to the above principles.

31．Other financial instruments such as preferred stocks and perpetual bonds

(1) Distinction between perpetual bonds and preferred stocks

Financial instruments issued by the company such as perpetual bonds and preferred stocks that meet the following conditions are

considered equity instruments:

* This financial instrument does not include contractual obligations to deliver cash or other financial assets to other parties or to

exchange financial assets or financial liabilities with other parties under potential adverse conditions;

* In case the financial instrument needs to be settled or can be settled using the enterprise's own equity instruments in the future if

the financial instrument is a non-derivative instrument it does not include the contractual obligation to deliver a variable quantity of

its own equity instruments for settlement; If it is a derivative instrument the company can only settle the financial instrument by

exchanging a fixed amount of its own equity instruments for a fixed amount of cash or other financial assets.Except for financial instruments that can be classified as equity instruments according to the above conditions other financial

instruments issued by the Company should be classified as financial liabilities.If the financial instruments issued by the company are composite financial instruments they shall be recognized as a liability based

on the fair value of the liability component and the amount received after deducting the fair value of the liability component is

recognized as “other equity instruments”. The transaction costs incurred in the issuance of composite financial instruments shall be

allocated between the liability component and the equity component in proportion to their respective proportions of the total issuance

price.

(2) Accounting treatment methods for perpetual bonds and preferred stocks

Financial instruments such as perpetual bonds and preferred stocks classified as financial liabilities including their related interest

dividends gains or losses as well as gains or losses arising from redemption or refinancing are booked into current gains/losses

except for borrowing costs that meet capitalization criteria (see Note V.22 "Borrowing Costs").When financial instruments such as perpetual bonds and preferred stocks classified as equity instruments are issued (including

refinancing) repurchased sold or cancelled the Company treats them as changes in equity and deducts related transaction costs

from equity. The company treats the distribution of equity instrument holders as profit distribution.The company does not recognize changes in fair value of equity instruments.

32．Revenue

Disclose accounting policies used for revenue recognition and measurement based on business type

When the contract signed between the company and the customer meets the following conditions simultaneously revenue is

recognized when the customer obtains control of the relevant goods: the parties to the contract have approve the contract and promise

to fulfill their respective obligations; The contract specifies the rights and obligations of all parties involved in the transfer of goods

or provision of services; The contract has clear payment terms related to the transferred goods; The contract has commercial

45WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

substance that is the performance of the contract will change the risk time distribution or amount of the company's future cash

flows; The consideration that the company is entitled to receive from transferring goods to customers is likely to be recovered.On the commencement date of the contract the company identifies each individual performance obligation in the contract and

distributes the transaction price to each individual performance obligation based on the relative proportion of the individual selling

price of the promised goods for each individual performance obligation. When determining the transaction price factors such as

variable consideration significant financing components in the contract non-cash consideration and payable customer consideration

shall be taken into account.For each individual performance obligation in the contract if one of the following conditions is met the company will recognize the

transaction price allocated to that individual performance obligation as revenue during the relevant performance period according to

the performance progress: the customer obtains and consumes the economic benefits brought by the company's performance at the

same time as the company's performance; Customers are able to control the goods under construction during the performance process

of the company; The goods produced by the company during the performance process have irreplaceable uses and the company has

the right to collect payments for the completed performance portion throughout the entire contract period. The performance progress

is determined using the input method based on the nature of the transferred goods. When the performance progress cannot be

reasonably determined if the costs already incurred by the company are expected to be compensated revenue is recognized on the

basis of the amount of costs already incurred until the performance progress can be reasonably determined.If any of the above conditions is not met the company will recognize the transaction price allocated to the single performance

obligation as revenue when the customer obtains control of the relevant goods. When determining whether the customer has obtained

control of the product the company considers the following indications: the enterprise has the right to receive payment for the

product at present that is the customer has a current payment obligation for the product; The enterprise has transferred the legal

ownership of the product to the customer that is the customer already owns the legal ownership of the product; The enterprise has

transferred the physical item to the customer meaning that the customer has already physically occupied the item; The enterprise has

transferred the main risks and rewards of ownership of the product to the customer that is the customer has obtained the main risks

and rewards of ownership of the product; The customer has accepted the product; Other signs indicating that the customer has gained

control of the product.The time point for recognizing domestic sales revenue of the company is as follows: the company delivers goods according to the

sales contract or order agreement. On the reconciliation date agreed with the buyer the goods received and inspected by the buyer

during the period from the previous reconciliation date to this reconciliation date are verified with the buyer. After verification by

both parties the risk and reward are transferred to the buyer. The company issues an invoice to the buyer based on the confirmed

variety quantity and amount and confirms the realization of sales revenue on the reconciliation date.The recognition time point for the company's foreign sales revenue: After the customs review is completed the company confirms

the realization of sales revenue based on the export date stated on the customs declaration form.The situation where similar businesses adopt different business models involving different revenue recognition and measurement

methods

Nil

33．Contract costs

Contract costs are divided into contract performance costs and contract acquisition costs.The costs incurred by the company for the performance of a contract that simultaneously meet the following conditions are

recognized as a contract performance cost asset:

（1）The cost is directly related to a current or expected contract including direct labor direct materials manufacturing expenses

(or similar expenses) costs explicitly borne by the customer and other costs incurred solely due to the contract;

（2）The cost increases the resources that the enterprise will use in the future to fulfill its performance obligations;

（3）The cost is expected to be recoverable.

46WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

The incremental costs incurred by the company for obtaining a contract that are expected to be recoverable are recognized as contract

acquisition cost asset; however if the amortization period of the asset does not exceed one year it can be recognized in current

gains/losses when it occurs.Assets related to contract costs are amortized on the same basis as the recognition of revenue from the related goods or services.If the carrying value of an asset related to contract costs is higher than the difference between the following two items the company

will make an impairment provision for the excess amount and recognize it as an asset impairment loss:

（1）The remaining consideration expected to be obtained from the transfer of the goods or services related to the asset;

（2）The estimated costs to be incurred for the transfer of the related goods or services.

If the above asset impairment provision is subsequently reversed the carrying value of the asset after the reversal shall not exceed the

carrying value of the asset on the reversal date assuming no impairment provision is made.

34．Government grants

Government grants refer to monetary and non-monetary assets obtained by the Company from the government free of charge

excluding the capital invested by the government as an investor with corresponding ownership rights. Government grants are

classified into asset-related government grants and income-related government grants. The Company defines government grants

obtained for the construction or other formation of long-term assets as asset-related government grants; the remaining government

grants are defined as income-related government grants. If the grantee is not clearly specified in the government document the

following methods are used to classify the grants into income-related government grants or asset-related government grants: (1) If

the specific project to which the grant relates is specified in the government document such grant shall be divided in terms of the

relative proportion of the expenditure amount that will form assets and the expenditure amount that will be included in expenses in

the budget of the specific project. This division proportion will be reviewed on each balance sheet date and changed if necessary; (2)

If the government document only makes a general description of the use and does not specify a specific project it will be regarded as

income-related government grant. Monetary government grants are measured at the amount received or receivable. Non-monetary

government grants are measured at fair value; if the fair value cannot be reliably obtained the government grants shall be measured

at nominal value. Government grants measured at nominal value are directly recognized in the current gains/losses.The Company usually recognizes and measures government grants at the actual amount received when they are actually received.However for those where there is conclusive evidence at the end of the period indicating that the relevant conditions specified in the

fiscal support policy are met and the fiscal support funds are expected to be received they are measured at the receivable amount.Government grants measured at the receivable amount shall meet the following conditions simultaneously:(1) The amount of the

receivable grant has been confirmed by the relevant government department in writing or can be reasonably estimated according to

the relevant provisions of the officially issued fiscal fund management measures and there is no significant uncertainty in the

estimated amount; (2) It is based on the officially released fiscal support projects and their fiscal fund management measures by the

local fiscal department and actively disclosed in accordance with the provisions of the Regulations on the Disclosure of Government

Information and the management measures shall be universal (any qualified enterprise can apply) rather than specifically formulated

for specific enterprises; (3) The relevant grant approval document has clearly promised the disbursement period and the

disbursement of the funds is guaranteed by the corresponding fiscal budget so it can be reasonably ensured that the funds can be

received within the specified period; (4) According to the specific circumstances of the Company and the grant matter other relevant

conditions (if any) shall be met.Government grants related to assets are recognized as deferred income and amortized into the current gains/losses in a reasonable and

systematic way over the useful life of the relevant assets. Government grants related to income if they are used to compensate for

relevant costs expenses or losses in the future are recognized as deferred income and included in the current gains/losses in the

period when the relevant costs expenses or losses are recognized; if they are used to compensate for relevant costs expenses or

losses that have already occurred they are directly included in the current gains/losses.

47WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Government grants that contain both parts related to assets and parts related to income are accounted for separately according to

different parts; if it is difficult to distinguish they are classified as a whole as income-related government grants.Government grants related to the Company's daily activities are included in other income or deducted from relevant costs and

expenses according to the essence of economic transactions; government grants not related to daily activities are included in non-

operating income and expenses.In case it is required to return the recognized government grants if there is a balance of relevant deferred income the book balance of

the relevant deferred income shall be written off and the excess part is adjusted to the current gains/losses and the book value of

assets; in other cases it is directly booked into current gains/losses.

35．Deferred income tax assets/Deferred income tax liabilities

Based on the difference between the carrying value of assets and liabilities and their tax bases (for items that are not recognized as

assets and liabilities but for which the tax base can be determined according to tax law provisions the difference between the tax

base and the book amount) deferred income tax assets or deferred income tax liabilities are calculated and recognized in terms of the

applicable tax rate during the period when the asset is expected to be recovered or the liability is expected to be settled.The recognition of deferred income tax assets is limited to the amount of taxable income that is likely to be available to offset the

deductible temporary differences. At the balance sheet date if there is conclusive evidence indicating that sufficient taxable income is

likely to be obtained in future periods to offset the deductible temporary differences the deferred income tax assets that were not

recognized in previous accounting periods are recognized.The carrying value of deferred income tax assets will be reviewed at the balance sheet date. If it is likely that sufficient taxable

income will not be available in future periods to offset the benefits of the deferred income tax assets the carrying value of the

deferred income tax assets shall be written down. When it is likely that sufficient taxable income will be obtained the written-down

amount is reversed.The current income tax and deferred income tax of the company are booked in the current gains/losses as income tax expenses or

gains except for the income tax arising from business combinations transactions or events directly recognized in owners' equity.When the Company has the legal right to settle on a net basis and intends to settle on a net basis or to acquire assets and settle

liabilities simultaneously the current income tax assets and current income tax liabilities of the Company are presented at the net

amount after offset.

36．Leasing

(1) Accounting treatment method of leasing as a lessee

The company as the lessee

The main category of leased assets of the company is buildings.On the commencement date of the lease term the Company recognizes right of use assets and lease liabilities for leases other than

short-term leases and low value asset leases and separately recognizes depreciation and interest expenses during the lease term.The company adopts the straight-line method during each period of the lease term to record the lease payments for short-term leases

and low value asset leases as current expenses.

（1）Right of use assets

The right of use asset refers to the lessee’s right to use the leased asset during the lease term. On the commencement date of the lease

term. The right of use assets is initially measured at cost. The cost includes: * the initial measurement amount of the lease liability;

* If there is lease incentive for the lease payment made on or before the start date of the lease term the relevant amount of the lease

incentive already enjoyed shall be deducted; * The initial direct expenses incurred by the lessee; * The lessee is expected to incur

the cost of dismantling and removing the leased asset restoring the leased asset's location or restoring the leased asset to the state

specified in the lease terms.

48WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

The depreciation of the company's right of use assets is classified and provisioned with the straight-line method. For those who can

reasonably determine that ownership of the leased asset will be acquired upon the expiration of the lease term depreciation shall be

accrued over the expected remaining useful life of the leased asset; For those whose ownership of the leased asset cannot be

reasonably determined upon expiration of the lease term depreciation shall be accrued during the shorter of the lease term or the

remaining useful life of the leased asset.The company determines whether the right of use assets have been impaired and performs accounting treatment in accordance with

the relevant provisions of Enterprise Accounting Standard No. 8- Asset Impairment.

1） Lease liabilities

Lease liabilities are initially measured at the present value of lease payments that have not yet been paid on the lease term

commencement date. The lease payment amount includes: * fixed payment amount (including substantial fixed payment amount)

and if there is a lease incentive the relevant amount of the lease incentive shall be deducted; * Variable lease payments based on

indices or ratios; * The estimated amount to be paid based on the residual value of the guarantee provided by the lessee; * The

exercise price for purchasing the option provided that the lessee reasonably determines that the option will be exercised; * The

payment required to exercise the option to terminate the lease provided that the lease term reflects that the lessee will exercise the

option to terminate the lease;

The company adopts the implicit interest rate of leasing as the discount rate; If the implicit interest rate of the lease cannot be

reasonably determined the incremental borrowing rate of the company shall be applied as the discount rate. The company calculates

the interest expenses of lease liabilities during each period of the lease term based on a fixed periodic interest rate and includes them

in financial expenses. The cyclical interest rate refers to the discount rate or revised discount rate adopted by the company.Variable lease payments that are not included in the measurement of the lease liability are recognized in the current period's

gains/losses when they actually occur.When there are changes in the evaluation results of the option to renew terminate or purchase the lease the present value of the lease

liability shall be remeasured based on the changed lease payment amount and the revised discount rate and the book value of the

right of use asset shall be adjusted accordingly. When there are changes in the actual lease payment amount the expected payable

amount of the guarantee residual value or the variable lease payment amount depending on the index or ratio the lease liability shall

be remeasured based on the present value calculated by the changed lease payment amount and the original discount rate and the

book value of the right of use asset shall be adjusted accordingly.

2） Short term leasing and low value asset leasing

For short-term leases (leases with a lease term of no more than 12 months on the lease commencement date) and leases of low value

assets (with a value less than 2000 yuan) the Company adopts a simplified approach by not recognizing right of use assets and lease

liabilities. Instead the lease payments are recorded in the relevant asset costs or current gains/losses with straight-line method or

other systematic and reasonable methods during each period of the lease term.

(2) Accounting treatment method of leasing as a lessor

The company as the lessor

Operating lease

The company uses the straight-line method to recognize the lease receipts from operating leases as rental income for each period

during the lease term. Variable lease payments related to operating leases that are not included in lease receipts are recognized in the

current period's gains/losses when they actually occur.Financial leasing

On the commencement date of the lease term the Company recognizes the receivable financing lease payments and terminates the

recognition of financing lease assets. The financing lease payments receivable are initially measured based on the net lease

investment (the sum of unsecured residual value and the present value of lease receipts not yet received on the lease commencement

date discounted at the lease implicit interest rate) and interest income is recognized during the lease term based on a fixed periodic

49WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

interest rate. The variable lease payments obtained by the company that are not included in the net measurement of lease investments

are recognized in the current gains/losses when they actually occur.

37．Other important accounting policies and estimates

In the process of applying accounting policies due to the inherent uncertainty of operating activities the company needs to make

judgments estimates and assumptions about the book value of financial statement items that cannot be accurately measured. These

judgments estimates and assumptions are based on the past historical experience of the company's management and have been made

taking into account other relevant factors. These judgments estimates and assumptions will affect the reported amounts of income

expenses assets and liabilities as well as the disclosure of contingent liabilities on the balance sheet date. However the actual

results resulting from the uncertainty of these estimates may differ from the current estimates of the company's management leading

to significant adjustments to the carrying amounts of future affected assets or liabilities.The company conducts regular reviews of the aforementioned judgments estimates and assumptions on a going concern basis. If

changes in accounting estimates only affect the current period of the change their impact is recognized in the current period of the

change; If it affects both the current and future periods of the change its impact shall be recognized in both the current and future

periods of the change.On the balance sheet date the Company needs to make judgments estimates and assumptions about the amounts of financial

statement items in the following important areas:

(1) Accrual of bad debts reserve

The company uses the expected credit loss model to evaluate the impairment of financial instruments. Applying the expected credit

loss model requires making significant judgments and estimates taking into account all reasonable and evidence-based information

including forward-looking information. When making such judgments and estimates the Company infers the expected changes in the

debtor's credit risk based on historical repayment data combined with economic policies macroeconomic indicators industry risks

and other factors.

(2) Impairment provision for inventory

According to inventory accounting policy the company measure inventory at the lower of cost and net realizable value and make

impairment provision for inventory for those with costs higher than net realizable value as well as for obsolete and unsold inventory.The impairment of inventory to net realizable value is based on evaluating the sellability and net realizable value of inventory. To

identify inventory impairment management shall make judgments and estimates based on obtaining conclusive evidence and

considering factors such as the purpose of holding inventory and the impact of events after the balance sheet date. The difference

between the actual result and the original estimate will affect the book value of inventory and the provision or reversal of impairment

provision for inventory s during the period when the estimate is changed.

(3) Impairment provision for non-financial and non-current assets

On the balance sheet date the company assesses whether there are signs of potential impairment of non-current assets other than

financial assets. For intangible assets with uncertain useful lives in addition to annual impairment tests impairment tests are also

conducted when there are signs of impairment. When there are indications that the carrying amount of non-current assets other than

financial assets cannot be recovered impairment test shall be conducted.When the book value of an asset or asset group is higher than the recoverable amount which is the higher of the net amount of fair

value minus disposal expenses and the present value of expected future cash flows it indicates impairment.The net amount after deducting disposal expenses from fair value is determined by referring to the sales agreement price or

observable market price of similar assets in fair transactions and subtracting the incremental costs directly attributable to the disposal

of the asset.When estimating the present value of future cash flows significant judgments need to be made regarding the production sale price

related operating costs and discount rate used in calculating the present value of the asset (or asset group). When estimating the

recoverable amount the company will use all available relevant information including forecasts of production selling prices and

related operating costs based on reasonable and supportable assumptions.

50WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

The company tests at least once a year whether there is any impairment of goodwill. This requires estimating the present value of

future cash flows from asset groups or portfolio of asset groups that have been allocated goodwill. When estimating the present value

of future cash flows the company needs to estimate the cash flows generated by future asset groups or portfolio of asset groups and

select an appropriate discount rate to determine the present value of future cash flows.

(4) Depreciation and amortization

The company after considering the residual values of investment real estate fixed assets and intangible assets calculates and accrues

depreciation and amortization using the straight-line method over their useful lives. The company regularly reviews the service life

to determine the amount of depreciation and amortization expenses to be included in each report period. The service life is

determined by the company based on past experience with similar assets and expected technological updates. If there are significant

changes in previous estimates adjustments will be made to depreciation and amortization expenses in future periods.

(5) Fair value of financial instruments

For financial instruments for which there is no active trading market to provide quotes valuation techniques need to be adopted to

determine their fair values. Valuation techniques need to be used to determine fair value for financial instruments that cannot be

quoted in markets with no active trading for example the latest trading information in the market discounted cash flow method and

option pricing models. The company has established a set of workflow to ensure that qualified personnel are responsible for the

calculation verification and review of fair value. The valuation model used by the company incorporates market information as

much as possible and minimizes the use of unique information of the company. It should be pointed out that some of the information

used in the valuation model needs to be estimated by the management (such as discount rate and target exchange rate volatility). The

company regularly reviews the above estimates and assumptions and makes adjustments as necessary.

(6) Income tax

In the normal business operations of the company there is a certain degree of uncertainty in the final tax treatment and calculation of

some transactions. Whether some items can be deducted before tax requires the approval of the tax authorities in charge. If there is a

difference between the final determination result of these tax matters and the initially estimated amount such difference will have an

impact on the current income tax and deferred income tax in the period of the final determination.

38．Changes of important accounting policies and estimation

(1) Changes of important accounting policies

□Applicable ? Not applicable

(2) Changes in important accounting estimations

□Applicable □ Not applicable

(3) Related entries of the financial statements at the beginning of the first year of implementing the new

accounting standards since 2025

□Applicable □ Not applicable

39．Others

Nil

VI. Taxation

1. Major taxes and tax rates

Tax Basis Tax rate

The output tax is calculated based on the taxable 25%(IRD，Denmark)22%(VHIO，VAT income and VAT is calculated based on thedifference after deducting the input tax available Italy)21%(Borit，Belgium)13%9%6%Collectionfor deduction for the current period rate 5%

51WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

City maintaining

& construction tax Turnover tax payable 7%5%

Corporation

income tax Taxable income 15%20%21%22%25%24% + regional tax 3.9%

Educational surtax Turnover tax payable 5%

Disclose reasons for different taxpaying body

Taxpaying body Income tax rate

The company WFJN WFLD WFTT WFMA WFAM WFSC WFLD(Chongqing) WFAS 15%

WFLD(Wuhan) 20%

IRD America Borit America 21%

IRD(Denmark) 22%

WFCA WFTR WFDT WFQL VHCN WFLD(Nanchang) Borit(Belgium) WFSS WFLH WFET 25%

24% + regional tax

VHIO(Italy)

3.9%

2. Tax incentives

The Company WFJN WFLD WFTT WFMA WFAM WFSC and WFAS are recognized as high-tech enterprises and enjoy a

preferential income tax rate of 15 % in the year of 2025.According to the Continuation of the Enterprise Income Tax Policies for Western Development(No.232020) issued together by

Ministry of Finance SAT and NDRC from January 1 2011 to December 31 2030 the enterprises located in the west region and

mainly engaged in the industrial projects stipulated in the Catalogue of Encouragement Industries in Western China and whose main

business income accounting for more than 60% of the total income of the enterprise in the current year can pay the corporate income

tax at the tax rate of 15%. In the year of 2025 WFLD (Chongqing) paid its corporate income tax at the tax rate of 15%.In 2025 WFLD (Wuhan) and WFLD(Nanchang) were qualified small and low-profit enterprises. According to the Announcement

on Further Supporting the Development of Small and Micro Enterprises and Individual Businesses Related to Tax Policies

(Announcement No. 12 of the Ministry of Finance and the State Administration of Taxation in 2023) the taxable income of small

and micro profit enterprises will be calculated at a reduced rate of 25% and the enterprise income tax policy will be paid at a tax rate

of 20% which will be extended until December 31 2027.

3. Other

Nil

VII. Notes to major items in consolidated financial statements

1. Monetary funds

In RMB

Item Ending balance Opening balance

Cash on hand 5161.51 5360.59

Cash in bank 2316718414.98 2217667887.48

Other monetary funds 151710802.98 28927203.45

Total 2468434379.47 2246600451.52

Including: total amount of funds deposited overseas 184250833.18 153019429.47

Other explanation

The ending balance of other monetary fund includes RMB 142735966.40 deposited in the bank acceptance deposit cash deposit for

Mastercard RMB225875.75 and guarantee deposit RMB8470394.37 and performance bond RMB278566.46.

52WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

2. Tradable financial asset

In RMB

Item Ending balance Opening balance

Financial assets measured at fair value and whose changes are

included in current profits and losses 1025044671.12 1429682635.57

Including:

SNAT 10501800.00

Hanma Technology 1110489.45

Other debt and equity instrument investments 1023934181.67 1419180835.57

Including：

Total 1025044671.12 1429682635.57

Other explanation

Nil

3. Notes receivable

(1) Classification of notes receivable

In RMB

Item Ending balance Opening balance

Trade acceptance bill 78478875.89 99914699.81

Total 78478875.89 99914699.81

(2) Accrued bad debts reserve

In RMB

Ending balance Opening balance

Category Book balance Bad debts reserve Book value Bad debts reserve

Amou Accrue Book value Amou Accrue Book value

Amount Ratio Amount Ratio

nt d ratio nt d ratio

Including

:

Notes

receivabl

e with

bad debts 78478875. 100.00 78478875. 99914699. 100.00 99914699.reserve 89 % 89 81 % 81

accrued

on

portfolio

Including

:

Portfolio

1: bank

acceptan

ce bill

Portfolio

2:

commerc 78478875. 100.00 78478875. 99914699. 100.00 99914699.e 89 % 89 81 % 81

acceptan

ce bill

Total 78478875. 100.00 78478875. 99914699. 100.00 99914699.

89%8981%81

53WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

The bad debts reserve of note receivable is made in accordance with the general model of expected credit loss:

□Applicable□Not applicable

(3) Bad debts reserve accrued recovered or reversed

Bad debts reserve in the current period:

□ Applicable □ Not applicable

Major amount of bad debts reserve recovered or reversed:

□ Applicable □ Not applicable

(4) Notes receivable already pledged by the Company at the end of the period

□Applicable □ Not applicable

(5) Notes endorsement or discount and undue on balance sheet date

Nil

(6) Notes receivable charged off in the period

Nil

4. Accounts receivable

(1) By aging

In RMB

Aging Ending book balance Opening book balance

Within one year (One year included) 3525896574.17 3729236009.53

Including: within 6 months 3431309231.78 3641532161.27

6 months to one year 94587342.39 87703848.26

1-2 years 13752428.90 15814370.53

2-3 years 14621350.76 12232320.70

Over 3 years 20589602.23 21845527.28

3-4 years 2304781.39 20693138.00

4-5 years 16946231.69 663355.37

> 5 years 1338589.15 489033.91

Total 3574859956.06 3779128228.04

(2) Disclosure by classification based on the accrual method of bad debts reserve

In RMB

Ending balance Opening balance

Book balance Bad debts reserve

Category Book

Book balance Bad debts reserve

Accru value Book

Amount Ratio Amount ed Amount Ratio Amount Accrued value

ratio ratio

Accounts

receivable

with bad 1727296 17272964. 100.0 1707231 1707231 100.00

debts 0.48% 0.45%4.58 58 0% 8.27 8.27 %

reserve

accrued on

54WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

single basis

Including:

Accounts

receivable

with bad 3532 2440

debts 3557586 99.52 24815484. 37620559 37376530.70% 7715 99.55% 2016. 0.65%

reserve 991.48 % 28 09.77 893.0307.20 74

accrued on

portfolio

Including:

35324147

Total 3574859 100.0 42088448. 37791282 100.00 37376531.18% 7715 4335. 2.08%

956.060%8628.04%893.03

07.2001

Bad debts reserve accrued on single basis: 17272964.58 yuan

In RMB

Opening balance Ending balance

Name

Book balance Bad debtsreserve Book balance

Bad debts Accrued Accrued

reserve ratio causes

Linyi Zotye Automobile

Components Manufacturing Have difficulty6193466.77 6193466.77 6193466.77 6193466.77 100.00%

Co. Ltd. in collection

Brilliance Automotive Have difficulty

Group Holdings Co. Ltd. 2693280.39 2693280.39 2693280.39 2693280.39 100.00% in collection

Dongfeng Chaoyang Diesel Have difficulty

Co. Ltd. 1823262.64 1823262.64 1823262.64 1823262.64 100.00% in collection

Tianjin Levol Engine Co. Have difficulty

Ltd. 1018054.89 1018054.89 1018054.89 1018054.89 100.00% in collection

SAIC HONGYAN Have difficulty

Automotive Co. Ltd 2297240.06 2297240.06 2232300.18 2232300.18 100.00% in collection

Others Have difficulty3047013.52 3047013.52 3312599.71 3312599.71 100.00%

in collection

Total 17072318.27 17072318.27 17272964.58 17272964.58

Bad debts reserve accrued on portfolio: 24815484.28 yuan

In RMB

Ending balance

Name

Book balance Bad debts reserve Accrued ratio

Within 6 months 3431309231.78

6 months to one year 92000268.80 9200026.90 10.00%

1-2 years 13420964.08 2684192.76 20.00%

2-3 years 13208770.38 5283508.19 40.00%

Over 3 years 7647756.44 7647756.43 100.00%

Total 3557586991.48 24815484.28

Explanation on determining the basis of portfolio

Nil

Bad debts reserve accrued on general model of expected credit loss:

□ Applicable□ Not applicable

55WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

(3) Bad debts reserve accrued recovered or reversed

Bad debts reserve accrued in the period:

In RMB

Amount changed in the period

Category Openingbalance Recovered or Ending balanceAccrued reversed Charged off Other

Accrued on

portfolio 17072318.27 0.81 64939.88 73649.01 339234.39 17272964.58

Accrued on

single basis 24402016.74 3652868.28 2845494.14 449573.19 55666.59 24815484.28

Total 41474335.01 3652869.09 2910434.02 523222.20 394900.98 42088448.86

Major amount of bad debts reserve recovered or reversed: Nil

(4) Accounts receivable charged off in the Period

In RMB

Item Amount charged off

Accounts receivable charged off 523222.20

Major accounts receivable charged off: Nil

(5) Top five accounts receivable and contract assets at ending balance by debtors

In RMB

Ending

balanc Ending balance of Ratio in total ending

Name Ending balance of e of accounts balance of accounts

Ending balance of bad debts

accounts receivable contrac receivable and receivable and

reserve and impairment

t assets contract assets contract assets

provision for contract assets

RBCD 640873405.61 640873405.61 17.93% 2870670.80

Robert Bosch

Company 539280433.47 539280433.47 15.09% 686626.54

Client 1 174648788.56 174648788.56 4.89% 81358.23

Client 2 127671916.02 127671916.02 3.57% 21314.69

Client 3 121145315.24 121145315.24 3.39% 1540644.53

Total 1603619858.90 1603619858.90 44.87% 5200614.79

5. Receivable financing

(1) By category

In RMB

Item Ending balance Opening balance

Bill receivable- bank acceptance bill 2013389318.37 1713187182.25

Total 2013389318.37 1713187182.25

(2) Disclosure by classification based on the accrual method of bad debts reserve

Basis for division of each stage and accrual ratio of bad deb reserve

Nil

Explanation of significant changes in the financing book balance of accounts receivable with changes in impairment provision in

the current period:

Nil

56WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

(3) Bad debt provision accrued recovered or reversed

Other explanation: Nil

(4) Receivable financing pledged by the Company at period-end

Item Amount pledge at period-end

Bank acceptance bill 704783096.16

Total 704783096.16

(5) Receivable financing endorsed or discounted but undue on balance sheet date

In RMB

Item Amount derecognized at period-end Amount not derecognized at period-end

Bank acceptance bill 687798025.07

Total 687798025.07

(6) Receivable financing charged off in current period

Nil

(7) Increase/decrease of receivable financing and changes in fair value of receivable financing in current

period

Nil

(8) Other explanation

Nil

6. Other accounts receivable

In RMB

Item Ending balance Opening balance

Dividends receivable 563855362.06 5357758.49

Other accounts receivable 930853923.10 925171249.08

Total 1494709285.16 930529007.57

(1) Interest receivable

1) Category of interest receivable

Nil

2) Significant overdue interest

Nil

57WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

3) Disclosure by classification based on the accrual method of bad debts reserve

□Applicable□Not applicable

4) Bad debts reserve accrued recovered or reversed

Nil

5) Interest receivable charged off in current period

Nil

(2) Dividends receivable

1) By category

In RMB

Item (or invested enterprise) Ending balance Opening balance

WFEC 44100000.00

RBCD 214397603.57

Zhonglian Electronics 300000000.00

WFPM 5357758.49 5357758.49

Total 563855362.06 5357758.49

2) Major dividends receivable with aging over one year

Nil

3) Disclosure by classification based on the accrual method of bad debts reserve

□Applicable□Not applicable

4) Bad debts reserve accrued recovered or reversed in current period

Nil

5) Dividends receivable charged off in current period

Nil

(3) Other accounts receivable

1) By nature

In RMB

Nature Ending book balance Opening book balance

Intercourse funds from units 10932284.97 7013631.68

Cash deposit 12825237.33 10540482.23

Staff loans and petty cash 1280804.20 384928.19

Social security and provident fund paid 12712511.97 13024199.29

WFTR “platform trade” business portfolio 2542263370.70 2542263370.70

Other 2438410.04 1830741.58

Total 2582452619.21 2575057353.67

58WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

2) By aging

In RMB

Aging Ending book balance Opening book balance

Within one year (One year included) 31364675.67 25570895.82

Within 6 months 26012854.37 21502060.65

6 months to one year 5351821.30 4068835.17

1-2 years 1380961.72 353994.58

2-3 years 2004002515.72 2544811701.19

Over 3 years 545704466.10 4320762.08

3-4 years 543020136.32 2607265.87

4-5 years 2645402.98 1697670.00

Over 5 years 38926.80 15826.21

Total 2582452619.21 2575057353.67

3) Accrued bad debts reserve

□Applicable □Not applicable

Bad debts reserve accrued on the general model of expected credit loss:

In RMB

Phase I Phase II Phase III

Expected credit loss for Expected credit loss for

Bad debts reserve Expected credit loss the entire duration the entire duration (with Total

over next 12 months (without credit credit impairment

impairment occurred) occurred)

Balance on Jan. 1

20255786049.861644100054.731649886104.59

Balance on Jan. 1

2025 in the period

Current accrued 1473178.21 1473178.21

Current reversal 11250.00 11250.00

Current charged-off 3261.39 3261.39

Other changes 253924.70 253924.70

Balance on June. 30

7498641.381644100054.731651598696.11

2025

Changes in book balance of bad debts reserve whose amount has major changes in the period

□ Applicable □ Not applicable

4) Bad debts reserve accrued recovered or reversed

Bad debts reserve accrued in the period:

In RMB

Change in current period

Category Opening balance Ending balance

Accrued Recovered or reversed Charged-off Other

Bad debts

reserve 1649886104.59 1473178.21 11250.00 3261.39 253924.70 1651598696.11

Total 1649886104.59 1473178.21 11250.00 3261.39 253924.70 1651598696.11

5) Other accounts charged off during the report period

In RMB

59WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Item Charged-off

Other accounts charged off 3261.39

Major other accounts receivable charged off: Nil

6) Top 5 other accounts receivable at ending balance by debtors

In RMB

Enterprise Nature Ending balance Aging Ratio in total ending balance Ending balance ofof other accounts receivable bad debts reserve

WFTR

“platform trade” See “Otherbusiness explanations” 2542263370.70 2-4 years 98.44% 1644068327.93

portfolio

Robert Bosch Prepaid freight

Company (on behalf of 3800000.00 Within 1 year 0.15% 225599.82others)

Wuxi China

Resources Gas Deposit margin 1353500.00 Over 3 years 0.05% 1353500.00

Co. Ltd.BYD Deposit margin 1300000.00 Within 1 year 0.05% 130000.00

Wuxi China

Resources Gas Deposit margin 1045373.12 1- 3 years 0.04% 523949.19

Co. LTD

Total 2549762243.82 98.74% 1646301376.94

7) Listed as other receivables due to centralized fund management

Nil.

7. Account paid in advance

(1) By aging

In RMB

Ending balance Opening balance

Aging

Amount Ratio Amount Ratio

Within one year 68827613.97 76.69% 87178436.38 93.46%

1-2 years 17473672.87 19.47% 2329391.28 2.50%

2-3 years 1383146.81 1.54% 3468224.73 3.72%

Over 3 years 2075175.46 2.31% 307414.10 0.33%

Total 89759609.11 93283466.49

Explanation on reasons why prepayments with an aging of over 1 year and significant amounts were not settled in a timely manner

Nil

(2) Top 5 accounts paid in advance at ending balance by prepayment object

In RMB

Proportion in total ending balance of accounts

Name Ending balance

paid in advance (%)

Aida Engineering Technology Co. Ltd. 7749368.18 8.63

State Grid Jiangsu Electric Power Co. Ltd Wuxi Branch 5772000.00 6.43

60WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Proportion in total ending balance of accounts

Name Ending balance

paid in advance (%)

CITIC Taifu Steel Trading Co. Ltd 5731660.75 6.39

Daye Special Steel Co. Ltd. 4726342.92 5.27

Xiangyang Kanghao Electromechanical Engineering Co. Ltd. 4215300.00 4.70

Total 28194671.85 31.42

8. Inventory

Does the Company need to comply with disclosure requirements in the real estate industry

No

(1) Category of inventory

In RMB

Ending balance Opening balance

Impairment Impairment

provision for provision for

inventory or inventory or

Item

Book balance impairmentprovision for Book value Book balance

impairment

provision for Book value

contract contract

performance performance

costs costs

Stock

materials 563563554.94 98880475.60 464683079.34 558770000.24 100525696.37 458244303.87

Goods in

process 540046075.15 30078738.23 509967336.92 555451953.02 28344427.22 527107525.80

Finished

goods 1238553937.17 124878751.07 1113675186.10 1468970529.18 145401957.71 1323568571.47

Total 2342163567.26 253837964.90 2088325602.36 2583192482.44 274272081.30 2308920401.14

(2) Data resource recognized as inventory

Nil

(3) Impairment provision for inventory and impairment provision for contract performance costs

In RMB

Current increase Current decrease

Item Opening balance

Accrued Other Reversed or written off Other Ending balance

Stock materials 100525696.37 12577826.70 1578287.71 15801335.18 98880475.60

Goods in process 28344427.22 4474518.12 1368807.73 4109014.84 30078738.23

Finished goods 145401957.71 55267240.95 678742.22 76469189.81 124878751.07

Total 274272081.30 72319585.77 3625837.66 96379539.83 253837964.90

* The net realizable value of inventory refers to the amount obtained by deducting the estimated costs to be incurred until

completion estimated selling expenses and relevant taxes and fees from the estimated selling price of the inventory in the ordinary

course of business.* Accrual basis of impairment provision for inventory:

Item Accrual basis of impairment provision Specific basis for determining net realizable valuefor inventory

It is determined on the basis of the amount obtained by deducting the

For materials used in producing finished

Stock materials estimated costs to be incurred until completion estimated sellinggoods for sale their net realizable value

expenses and relevant taxes and fees from the estimated selling price

is lower than their carrying value.of the finished goods produced.

61WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

It is determined on the basis of the amount obtained by deducting the

For goods in process used in producing

Goods in estimated costs to be incurred until completion estimated selling

process finished goods for sale its net realizable expenses and relevant taxes and fees from the estimated selling price

value is lower than its carrying value.of the finished goods produced.It is determined on the basis of the amount obtained by deducting

Finished goods Its net realizable value is lower than its various taxes and fees to be borne in the sales process from the

carrying value.estimated selling price.* Reason for carrying forward impairment provision for inventory:

Item Reason for reversing impairment provision for inventory

Stock materials Used in production in the current period and the finished goods produced have been sold.Goods in After the goods in process was completed in the current period the corresponding finished goods were sold in the

process current period.Finished goods Have been sold in report period

(4) Explanation on capitalization of borrowing costs in ending balance of inventory

Nil

(5) Explanation on the current amortization amount of contract performance cost

Nil

(6) Other credit investment maturing within one year

9. Non-current assets maturing within one year

In RMB

Item Ending balance Opening balance

Other non-current financial assets maturing within one year 50000000.00

Other non-current assets maturing within one year 336318630.13 509070575.38

Total 336318630.13 559070575.38

(1) Credit investment maturing within one year

□Applicable □Not applicable

(2) Other credit investment maturing within one year

□Applicable □Not applicable

10.Other current assets

In RMB

Item Ending balance Opening balance

Receivable export tax rebates 4388529.84 5356094.47

VAT refund receivable 3951173.80 7165454.75

Prepaid taxes and VAT retained 151295887.73 146820302.41

Input tax to be deducted and certification 4824143.76 17548216.30

Other 16803939.28 12098391.53

Total 181263674.41 188988459.46

62WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

11.Other equity instrument investment

In RMB

Accumulated Accumulated Reasons for

Gains Losses gains losses Dividends designating fair

recognized in recognized in recognized in recognized in income value

Item Beginning other other other other recognized

measurement

balance comprehensive comprehensive comprehensive comprehensive in this Ending balance with changes

income for the income for the income at the income at the period recognized in

current period current period end of this end of this other

period period comprehensiveincome

Wuxi

Xichan Non-tradable

Microchip 592742690.00 592742690.00 equity instrument

Semi- investment

Conductor

Non-tradable

Other 85048000.00 85048000.00 equity instrument

investment

Total 677790690.00 677790690.00

Whether there is other equity instrument investment derecognized in current period or not: Nil

Sub-item disclosure of non-tradable equity instrument investments in the current period

In RMB

Amount of other Reasons for designating fair Reasons for otherDividends

Item income Accumulated Accumulated

comprehensive comprehensive

income carried value measurement with income carried

recognized income loss forward to retained changes recognized in othercomprehensive income forward to retainedearnings earnings

Wuxi Xichang

Microchip Semi- Non-tradable equity

Conductor instrument investment

NA

Other Non-tradable equityinstrument investment NA

12.Long-term equity investment

In RMB

Opening Current changes (+/ -) Ending

balance balance

Investment Other Cash Impairm

Invested Opening of Investm Ending ofgains/losses comprehen Other dividends ent

entity balance impairm ent balance impairm(book value) ent Investmen decreas recognized sive equity or profit provisio Other (book value) ent

provisio t increase e under income change announced n provisio

n equity adjustment to issued accrued n

I. Joint venture

II. Associated enterprise

WFEC 101004729 84758436. 957540.5 11760000 978163267.0.27 79 5 0.00 61

RBCD 341396163 25910770 21439760 3458671730.25 6.91 3.57 3.59

Zhongli

an 187179081 26667554 30000000 183846636

Electron 7.25 8.99 0.00 6.24

ics

WFPM 44310168.3 - 188447.1 44260916.03 237699.37 2 8

Changc

hun 8472997.94 -111978.44 8361019.50

Xuyang

AutoLin 210866149. -

k 89 6758663.2

204107486.

168

Lezhuo 132760771. -18361528. 114399243.Bowei 59 41 18

WuXi -

ZhuoWe 37919312.88 2117223.8

35802089.0

i 5 3

Voith -

HySTec 304969740. 284132819 1.14 47387167.

3453033320526188.

h GmbH 96 4.70 07

Subtotal 703509887 2841328 53556743 1145987 63199760 3453033 7002758308.59 1.14 1.45 .67 3.57 4.70 9.98

Total 703509887 2841328 53556743 1145987 63199760 3453033 7002758308.59 1.14 1.45 .67 3.57 4.70 9.98

63WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

The recoverable amount is determined on the basis of the net amount after deducting disposal expenses from fair value

□Applicable□Not applicable

The recoverable amount is determined on the basis of the present value of expected future cash flows

□Applicable□Not applicable

Reasons for significant discrepancies between the aforementioned information and the information or external information used in

previous years' impairment test

Nil

Reasons for significant discrepancies between the information used in the company's previous annual impairment tests and the

actual situation of the current year

Nil

Other explanation:

Nil

13.Other non-current financial assets

In RMB

Item Ending balance Opening balance

Financial assets classified as those measured at fair value

with changes recognized in current profits and losses 689856655.22 747471349.81

Investments in other debt instruments and equity

instruments held for more than one year 689856655.22 747471349.81

Minus: other non-current financial assets maturing within

one year 50000000.00

Total 689856655.22 697471349.81

14. Investment real estate

(1) Investment real estate measured at cost

□Applicable □ Not applicable

In RMB

Item House andBuilding Land use right

Construction in

progress Total

I. Original book value

1.Opening balance 95327686.03 95327686.03

2.Current increased 23689544.68 23689544.68

(1) Outsourcing

(2) Inventory\fixed

assets\construction in process 23689544.68 23689544.68

transfer-in

(3) Increased by combination

3.Current decreased 16771498.79 16771498.79

(1) Disposal 16771498.79 16771498.79

(2) Other transfer-out

4.Ending balance 102245731.92 102245731.92

II. Accumulated depreciation and

accumulated amortization

1.Opening balance 50366755.64 50366755.64

2.Current increased 1319696.19 1319696.19

(1) Accrued or amortization 1319696.19 1319696.19

3.Current decreased 2867469.34 2867469.34

64WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

(1) Disposal 2867469.34 2867469.34

(2) Other transfer-out

4.Ending balance 48818982.49 48818982.49

III. Impairment provision

1.Opening balance

2.Current increased

(1) Accrued

3. Current decreased

(1) Disposal

(2) Other transfer-out

4.Ending balance

IV. Book value

1.Ending book value 53426749.43 53426749.43

2.Opening book value 44960930.39 44960930.39

The recoverable amount is determined on the basis of the net amount after deducting disposal expenses from fair value

□Applicable□Not applicable

The recoverable amount is determined on the basis of the present value of expected future cash flows

□Applicable□Not applicable

Reasons for significant discrepancies between the aforementioned information and the information or external information used in

previous years' impairment test

Nil

Reasons for significant discrepancies between the information used in the company's previous annual impairment tests and the

actual situation of the current year

Nil

Other explanation:

Nil

(2) Investment real estate measured at fair value

□Applicable□ Not applicable

(3) Converted into investment real estate measured at fair value

Nil

(4) Investment real estate without property certification held

In RMB

Item Book value Reason for not obtaining the property rights certificate

WFJN’s property 52182.36 Still in process of relevant property procedures

15.Fixed assets

In RMB

Item Ending balance Opening balance

Fixed assets 4361424985.91 4461619375.21

Total 4361424985.91 4461619375.21

65WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

(1) Fixed assets

In RMB

Item House and Machinery Transportation Electronic andBuilding equipment equipment other equipment Land Total

I. Original book

value:

1.Opening 2476447467. 5407734912. 9353622040.

balance 46817358.94 1391716721.51 30905579.8718 76 26

2.Current

increased 12021548.95 85336042.03 58387872.07 53150019.05 208895482.10

(1) Purchase 1224527.34 11796481.57 180760.98 256686.72 13458456.61

(2)

Construction in

progress 10797021.61 73539560.46 58207111.09 52893332.33 195437025.49

transfer-in

(3) Increased

by combination

3.Current

10739569.2228150185.389890674.1420903369.4969683798.23

decreased

(1) Disposal or

scrapping 10739569.22 28150185.38 9890674.14 20903369.49 69683798.23

4.Conversion of

foreign currency

financial 15302286.43 60949602.16 13676.49 45535364.27 3600464.19 125401393.54

statement

5. Ending balance 2493031733. 5525870371. 9618235117.95328233.36 1469498735.34 34506044.06

345767

II. Accumulated

depreciation

1.Opening 3063285657. 4689645843.

balance 668529085.04 24275580.49 933555520.1141 05

2.Current

increased 50120436.90 146134512.99 1756429.16 118867321.91 316878700.96

(1) Accrued 50120436.90 146134512.99 1756429.16 118867321.91 316878700.96

3.Current

decreased 988461.95 23115451.02 240245.60 18790955.83 43135114.40

(1) Disposal or

scrapping 988461.95 23115451.02 240245.60 18790955.83 43135114.40

4.Conversion of

foreign currency

financial 7573540.83 37124029.22 4726.35 34192246.43 78894542.83

statement

5.Ending balance 3223428748. 5042283972.725234600.82 25796490.40 1067824132.62

6044

III. Impairment

provision

1.Opening

balance 14287345.82 148936967.61 73319.90 23694157.00 15365031.67 202356822.00

2.Current

increased

(1) Accrued

3.Current

decreased 5.18 230.80 235.98

(1) Disposal or

scrapping 5.18 230.80 235.98

4.Conversion of

foreign currency

1664459.227322004.911393100.811790008.3612169573.30

financial

statement

5.Ending balance 15951805.04 156258967.34 73319.90 25087027.01 17155040.03 214526159.32

66WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

IV. Book value

1.Ending book 1751845327. 2146182655. 4361424985.

value 69458423.06 376587575.71 17351004.0348 63 91

2.Opening book 1793631036. 2195512287. 4461619375.

value 22468458.55 434467044.40 15540548.2032 74 21

(2) Temporarily idle fixed assets

In RMB

Item Original book value Accumulated depreciation Impairment provision Book value Note

Machinery equipment 7506764.39 2761450.54 1395192.59 3350121.26

Total 7506764.39 2761450.54 1395192.59 3350121.26

(3) Fixed assets acquired by operating lease

In RMB

Item Ending book value

Housing and building 15179760.71

Total 15179760.71

(4) Fixed assets without property certification held

In RMB

Item Book value Reasons for without the property certification

R&D Building in No. 6 Huashan Road Wuxi City 368387958.31 Still in process of relevant property procedures

106 Machining Workshop Plant 55425916.01 Still in process of relevant property procedures

WFCA - Factory and office buildings 24902269.67 Still in process of relevant property procedures

WFJN - Factory and office buildings 153807.73 Still in process of relevant property procedures

(5) Impairment test of fixed assets

□Applicable□Not applicable

(6) Disposal of fixed assets

Other explanation: Nil

16.Construction in progress

In RMB

Item Ending balance Opening balance

Construction in progress 521265457.98 380321816.50

Total 521265457.98 380321816.50

(1) Construction in progress

In RMB

Ending balance Opening balance

Item

Book balance Impairmentprovision Book value Book balance

Impairment

provision Book value

Renovation of Xinan

Branch No. 1 workshop 56191851.60 56191851.60 4456868.76 4456868.76

of the company

Lot 103 phase VI 21286510.70 21286510.70 222994.13 222994.13

Production line and

equipment under 410745022.6 353665522. 353480907.184615.38 410560407.27 184615.38

installation and debugging 5 78 40

67WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Sporadic construction and

installation projects 13412924.56 13412924.56 4793935.12 4793935.12

Software and system

under installation and 19813763.85 19813763.85 17367111.09 17367111.09

debugging

Total 521450073.3 380506431. 380321816.184615.38 521265457.98 184615.38

68850

(2) Changes of major construction in progress

In RMB

Proporti AccumFixed Other ulated Including:on of interest Interestassets decreas amount capitali Sourc

Item Budget Opening Current transfer- ed in Ending projectbalance increased balance investm Progress of

capitalize

d amount zation e ofin in the the ent in interest of the rate of fundsPeriod Period budget capitali year the yearzation

Renovatio The main part of

n of the project has

Xinan been completed

Branch 41245. 445686 526127 877787 56191 95.00 and put into use Own

No. 1 while the ed40 8.76 70.46 .62 851.60 %

workshop auxiliary minor funds

of the works are still

company under installationand acceptance.The main part of

the project has

been completed

Lot 103 6309.4 222994. 210635 21286 98.00 and put into use Own

phase VI while the ed8 13 16.57 510.70 % auxiliary minor funds

works are still

under installation

and acceptance.

47554.46798673676287778777478

Total

882.8987.03.62362.30

(3) Impairment provision of construction in progress

In RMB

Item Opening balance Current increase Current decrease Ending balance Reason for withdrawal

Equipment installation 184615.38 184615.38

Total 184615.38 184615.38 --

(4) Impairment test of construction in progress

□Applicable □Not applicable

(5) Engineering material

Other explanation: Nil

17.Right-of-use assets

(1) Right-of-use assets

In RMB

Item Building Mechanical equipment Total

I. Original book value:

1.Opening balance 83289566.04 27897838.84 111187404.88

68WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

2.Current increased 49738076.88 2415607.10 52153683.98

(1) Increased lease 49738076.88 2415607.10 52153683.98

3.Current decreased 5974891.33 45217.39 6020108.72

(1) Disposal 5974891.33 45217.39 6020108.72

4. Conversion of foreign

currency financial statement 5307049.66 2517671.63 7824721.29

5.Ending balance 132359801.25 32785900.18 165145701.43

II. Accumulated depreciation

1.Opening balance 29728433.95 13693528.56 43421962.51

2.Current increased 13821672.65 4100287.58 17921960.23

(1) Accrued 13821672.65 4100287.58 17921960.23

3.Current decreased 5974891.33 45217.39 6020108.72

(1) Disposal 5974891.33 45217.39 6020108.72

4. Conversion of foreign

currency financial statement 1042034.07 1554976.14 2597010.21

5.Ending balance 38617249.34 19303574.89 57920824.23

III. Impairment provision

1.Opening balance

2.Current increased

(1) Accrued

3.Current decreased

(1) Disposal

4.Ending balance

IV. Book value

1.Ending book value 93742551.91 13482325.29 107224877.20

2.Opening book value 53561132.09 14204310.28 67765442.37

(2) Impairment test of right-of-use assets

□Applicable□Not applicable

18. Intangible assets

(1) Intangible assets

In RMB

Non- Computer Trademark Patent andItem Land use right Patent patent software and trademark non-patent Totaltechnology license technology

I. Original book

value

1.Opening

balance 419255805.42 241802977.88 41597126.47 255390917.74 958046827.51

2.Current

increased 10125548.11 15522934.72 25648482.83

(1) Purchase 114700.36 114700.36

(2) Internal

R&D

(3) Increased

by

combination

(4) Transfer

from

construction 10125548.11 15408234.36 25533782.47

in progress

3.Current

356345.813539793.053896138.86

decreased

69WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

(1) Disposal

356345.813539793.053896138.86

or scrapping

4.Conversion of

foreign currency

financial 2189189.04 25683024.49 27872213.53

statement

5.Ending

balance 429381353.53 259158755.83 41597126.47 277534149.18 1007671385.01

II. Accumulated

amortization

1.Opening

balance 121758999.21 201217109.86 9709000.00 127725716.90 460410825.97

2.Current

increased 4558529.56 16002494.08 11683364.11 32244387.75

(1) Accrued 4558529.56 16002494.08 11683364.11 32244387.75

3.Current

27468.553539793.053567261.60

decreased

(1) Disposal 27468.55 3539793.05 3567261.60

4.Conversion of

foreign currency

financial 1743308.45 13954647.59 15697956.04

statement

5.Ending

balance 126317528.77 218935443.84 9709000.00 149823935.55 504785908.16

III. Impairment

provision

1.Opening

balance 448292.66 16646900.00 17095192.66

2.Current

increased

(1) Accrued

3.Current

decreased

(1) Disposal

4.Conversion of

foreign currency

52225.5852225.58

financial

statement

5.Ending

500518.2416646900.0017147418.24

balance

IV. Book value

1.Ending book

value 303063824.76 39722793.75 15241226.47 127710213.63 485738058.61

2.Opening book

value 297496806.21 40137575.36 15241226.47 127665200.84 480540808.88

The proportion of intangible assets formed through internal R&D of the company to the balance of intangible assets at the end of

this period: Nil

(2) Data resource recognized as intangible assets

Nil

(3) Land use right without property certification held

Nil

70WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

(4) Impairment test of intangible assets

□Applicable□Not applicable

19.Goodwill

(1) Original book value of goodwill

In RMB

Name of invested Current increased Current decreased

entities or matters Openingbalance Formed by business Translation of foreign Disposal Ending balanceforming goodwill combination currency statements

Merged with WFTT 1784086.79 1784086.79

Merged with Borit 238284918.92 27859769.87 266144688.79

Total 240069005.71 27859769.87 267928775.58

(2) Impairment provision for goodwill

In RMB

Current

Name of invested entities or Opening Current increased decreased

matters forming goodwill balance Ending balanceAccrued Translation of foreigncurrency statements Disposal

Merged with WFTT

Merged with Borit 207463687.49 24256216.53 231719904.02

Total 207463687.49 24256216.53 231719904.02

(3) Related information of asset group or asset group portfolio of goodwill

Is consistent

Name Component and basis for asset group or asset group portfolio Operation branch and basis with previous

year (Y/N)

Long term assets related to the merger of WFTT’s goodwill; Automotive intake system

The management made it clear that this asset group will be product division; Category

WFTT Y

used and operated independently of other assets and will of asset group output

generate cash inflows independently products

Long term assets related to the merger of Borit’s goodwill; The

Other automotive parts

management made it clear that this asset group will be used and

Borit divisions; Category of asset Y

operated independently of other assets and will generate cash

group output products

inflows independently

Changes in asset group or asset group portfolio: Nil

Other explanation: Nil

(4) Specific method of determining recoverable amount

For asset groups with indicators of impairment the Company estimates the recoverable amount of such asset groups as the higher

of the net amount of their fair value less disposal costs and the present value of the estimated future net cash flows; for asset

groups without indicators of impairment the Company determines the recoverable amount of such asset groups based on the

present value of the estimated future net cash flows of the asset groups.The recoverable amount is determined on the basis of the net amount after deducting disposal expenses from the fair value.□Applicable□Not applicable

The recoverable amount is determined on the basis of the present value of expected future cash flows

71WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

□Applicable□Not applicable

Reasons for significant discrepancies between the aforementioned information and the information or external information used in

previous years’ impairment test

Nil

Reasons for significant discrepancies between the information used in the company's previous annual impairment tests and the

actual situation of the current year

Nil

(5) Completion of performance commitments and corresponding impairment of goodwill

When goodwill is formed there is a performance commitment and the report period or the previous period is within the

performance commitment period

□Applicable□Not applicable

20.Long-term deferred expense

In RMB

Item Opening balance Current increase Amortized in the Period Other decrease Ending balance

Decoration expense etc. 22202465.04 790846.19 3595375.61 1907607.58 21305543.20

Total 22202465.04 790846.19 3595375.61 1907607.58 21305543.20

21.Deferred income tax assets/Deferred income tax liabilities

(1) Deferred income tax assets not offset

In RMB

Ending balance Opening balance

Item Deductible temporary Deferred income Deductible temporary Deferred income

difference tax assets difference tax assets

Unrealized profit from insider

32650431.7610020415.7565395598.2413015777.61

transactions

Deductible loss 1148983488.69 172347523.31 1168677565.93 175301634.90

Bad debts reserve 43051507.07 6692939.78 41797429.02 6435174.40

Impairment provision for

inventory 212610348.39 32605856.84 236847793.55 36125249.29

Impairment provision of fixed

assets 96998029.14 17014412.95 96998034.32 17014413.73

Impairment provision of

construction in progress 184615.38 27692.31 184615.38 27692.31

Impairment provision of

intangible assets 16646900.00 2497035.00 16646900.00 2497035.00

Deferred income 136165893.16 20568052.29 149757581.67 22633752.36

Payable salary accrued expenses

etc. 967361002.72 150317966.76 917718552.00 145328224.99

Depreciation assets amortization

difference 21220988.09 3229279.74 23208041.96 3527337.81

Impairment provision of other

non-current assets 146615749.63 21992362.44 146615749.63 21992362.44

Lease liabilities 65402271.90 15246833.57 61461573.00 14237201.65

Changes in fair value 30550763.25 4582614.49

Total 2887891225.93 452560370.74 2955860197.95 462718470.98

72WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

(2) Deferred income tax liabilities not offset

In RMB

Ending balance Opening balance

Item Taxable temporary Deferred income Taxable temporary Deferred income

differences tax liabilities differences tax liabilities

The difference between the fair value

and taxation basis of WFTT assets in a 9022855.15 1353428.25 9256736.95 1388510.52

merger not under the same control

The difference between the fair value

and taxation basis of IRD assets in a 41744492.70 9183788.39 42249682.78 9294930.21

merger not under the same control

The difference between the fair value

and taxation basis of Borit assets in a 15551733.23 3887933.24 15512362.69 3878090.60

merger not under the same control

The difference between the fair value

and taxation basis of VH business in a 43979639.07 10554842.37 42200640.32 10128153.65

merger not under the same control

Change in fair value of transaction

financial asset 9712551.25 1538142.08 823158.14 123473.72

Accelerated depreciation of fixed assets 864150136.52 134929411.31 844054613.82 131777556.75

Right-of-use assets 65256488.51 15120953.28 62433477.96 13999594.04

Others 59766870.74 8965030.61 83354236.41 13578003.30

Total 1109184767.17 185533529.53 1099884909.07 184168312.79

(3) Deferred income tax assets and deferred income tax liabilities listed after off-set

In RMB

Trade-off between the Ending balance of Trade-off between the Opening balance of

Item deferred income tax deferred income tax deferred income tax deferred income tax

assets and liabilities assets or liabilities after assets and liabilities at assets or liabilities afteroff-set period-begin off-set

Deferred income tax

assets 160480342.59 292185225.31 159298304.33 303420166.65

Deferred income tax

liabilities 160480342.59 25158384.10 159298304.33 24870008.46

(4) Details of unrecognized deferred income tax assets

In RMB

Item Ending balance Opening balance

Bad debts reserve 1650635637.90 1649563010.58

Impairment provision for inventory 41227616.51 37424287.75

Loss from subsidiary 980425414.18 923958282.87

Impairment provision of long-term equity investment 8223048.38 8223048.38

Impairment provision of fixed assets 117528130.18 105358787.68

Impairment provision of intangible assets 500518.24 448292.66

Other equity instrument investment 13600000.00 13600000.00

Wages payable withholding expense etc. 49304003.51

Total 2812140365.39 2787879713.43

(5) The deductible losses of unrecognized deferred income tax assets will expire in following years

In RMB

73WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Maturity year Ending amount Opening amount Note

20257635552.89

202635549747.8746267496.16

202754654198.3790932850.34

202878468430.44104023377.77

2029100167878.24119116583.00

2030 and the following years 75877616.48

No expiration date 635707542.78 555982422.71

Total 980425414.18 923958282.87

22.Other non-current assets

In RMB

Ending balance Opening balance

Item

Book balance Impairmentprovision Book value Book balance

Impairment

provision Book value

Contract

acquisition cost 4508573.62 4508573.62 4330621.43 4330621.43

Engineering

equipment paid in 238522332.55 238522332.55 186322984.79 186322984.79

advance

Large deposit

certificates with a

maturity of more 592113602.74 592113602.74 689071260.28 689071260.28

than one year

Financial products 146615749.63 146615749.63 160163280.47 146615749.63 13547530.84

Total 981760258.54 146615749.63 835144508.91 1039888146.97 146615749.63 893272397.34

23.Assets with restricted ownership or use right

In RMB

Ending Opening

Item

Book balance Book value Restriction Restrictiontype reason Book balance Book value

Restriction Restriction

type reason

Monetary Notes paid for Notes paid for

funds 142735966.40 142735966.40 Cash deposit bank 20363281.63 20363281.63 Cash deposit bankacceptance acceptance

Bill Notes pledge

receivable 43071798.39 43071798.39 Pledge for bankacceptance

Monetary IRD IRD

funds 8470394.37 8470394.37 Cash deposit performance 7583721.64 7583721.64 Cash deposit performancebond bond

Monetary Letter of Letter of

funds 278566.46 278566.46 Cash deposit guarantee 719003.22 719003.22 Cash deposit guaranteedeposit deposit

Monetary Cash deposit Cash deposit

funds 225875.75 225875.75 Cash deposit for 202231.29 202231.29 Cash deposit forMastercard Mastercard

Monetary

funds 4000.00 4000.00 Cash deposit ETC freezing

Receivables Notes pledge Notes pledge

financing 704783096.16 704783096.16 Pledge for bank 556575612.27 556575612.27 Pledge for bankacceptance acceptance

Total 856493899.14 856493899.14 628519648.44 628519648.44

24.Short-term borrowings

(1) Category of short-term borrowings

In RMB

74WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Item Ending balance Opening balance

Credit loan 627673659.47 392800433.57

Accrued interest 461441.29 319714.38

Total 628135100.76 393120147.95

Explanation on short-term borrowings: Nil

(2) Overdue and unpaid short-term loans

Other explanation: Nil

25.Note payable

In RMB

Category Ending balance Opening balance

Bank acceptance bill 2229593501.21 2014217247.05

Total 2229593501.21 2014217247.05

At the end of the current period the total amount of matured but unpaid notes payable is 0.00 yuan.

26.Accounts payable

(1) Accounts payable

In RMB

Item Ending balance Opening balance

Operating funds payable for labor or goods 3478083715.81 3661507490.23

Accounts payable for engineering equipment 136046292.89 238437702.05

Total 3614130008.70 3899945192.28

(2) Important accounts payable with aging over 1 year or overdue

Other explanation: Nil

27.Other accounts payable

In RMB

Item Ending balance Opening balance

Other accounts payable 68287577.76 44547794.12

Total 68287577.76 44547794.12

(1) Interest payable

Nil

(2) Dividends payable

Nil

(3) Other accounts payable

1) By nature

In RMB

Item Ending balance Opening balance

Deposit and margin 37417497.89 13909942.25

75WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Social insurance and reserves funds withholding 1741601.11 1301468.22

Intercourse funds of entities 25512145.98 23526000.00

Other 3616332.78 5810383.65

Total 68287577.76 44547794.12

2) Important other payables with aging over 1 year or overdue

In RMB

Item Ending balance Reasons for not repaying or carry-over

Ningbo Jiangbei High-tech Industrial Park

Development and Construction Co. Ltd 19026000.00 Not yet meeting the conditions for carry-over

Total 19026000.00

28.Accounts received in advance

(1) Accounts received in advance

In RMB

Item Ending balance Opening balance

Rent received in advance 491544.03 2652511.04

Total 491544.03 2652511.04

(2) Significant accounts receivable in advance with aging over 1 year or overdue

Other explanation: Nil

29.Contract liabilities

In RMB

Item Ending balance Opening balance

Advance payment for goods 106520784.44 56148545.13

Total 106520784.44 56148545.13

30.Wage payable

(1)Wage payable

In RMB

Item Opening balance Current increased Current decreased Ending balance

I. Short-term compensation 286170405.86 727814454.00 825164230.70 188820629.16

II. Post-employment welfare-

defined contribution plans 28540420.13 109348642.27 111620472.25 26268590.15

III. Dismissed welfare 1023380.23 1176014.13 1565908.99 633485.37

IV. Incentive funds paid within one

year 67660000.00 11882539.72 55777460.28

V. Other short-term welfare-

Housing subsidies employee 21883842.70 1774903.60 20108939.10

benefits and welfare funds

Total 405278048.92 838339110.40 952008055.26 291609104.06

Explanation of severance benefits: Severance benefits refer to the employee compensation payable arising from the internal early

retirement plan implemented by the company. The amount expected to be paid in the following year is presented under this account

item.

76WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

(2) Short-term compensation

In RMB

Item Opening balance Current increased Current decreased Ending balance

1. Wages bonuses allowances and

subsidies 270773275.35 588520936.84 685386664.11 173907548.08

2. Welfare for workers and staff 39536850.69 39065296.63 471554.06

3. Social insurance 312450.03 37269497.29 37158374.88 423572.44

Including: Medical insurance 231732.98 29976846.46 29955428.77 253150.67

Work injury insurance 71875.47 4143641.89 4149838.51 65678.85

Maternity insurance 8841.58 3149008.94 3053107.60 104742.92

4. Housing accumulation fund 778913.00 44548861.66 44420974.66 906800.00

5. Labor union expenditure and

personnel education expense 9551179.06 9516916.77 9318976.03 9749119.80

6. Other short-term compensation -

social security 4754588.42 8421390.75 9813944.39 3362034.78

Total 286170405.86 727814454.00 825164230.70 188820629.16

(3) Define contribution plans

In RMB

Item Opening balance Current increased Current decreased Ending balance

1. Basic endowment premium 8666008.76 91053617.00 93892104.38 5827521.38

2. Unemployment insurance 20356.56 2574494.07 2543067.99 51782.64

3. Enterprise annuity 19854054.81 15720531.20 15185299.88 20389286.13

Total 28540420.13 109348642.27 111620472.25 26268590.15

Other explanation:

Post-employment welfare - defined contribution plans:

The Company participates in the pension insurance and unemployment insurance plans established by government authorities by

laws a certain percentage of the social security fee regulated by the government will pay by the Company monthly for the plans.Other than the aforesaid monthly contribution the Company takes no further payment obligation. The corresponding expenditures

shall be recognized in the current period's profit or loss or the cost of relevant assets when incurred. For details of the enterprise

annuity plan please refer to Note XVIII.4 "Annuity Plan".

31.Tax payable

In RMB

Item Ending balance Opening balance

Value-added tax 23680370.78 17962320.77

Corporation income tax 16205148.92 15110401.06

Individual income tax 3687823.96 6198892.34

City maintaining & construction tax 1651718.54 1103941.58

Educational surtax 1183359.40 798036.26

Property tax 6493108.57 6355132.42

Land use tax 1347498.21 1556476.60

Stamp tax 2172567.73 2469983.52

Others 236338.43 155033.86

Total 56657934.54 51710218.41

77WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

32.Non-current liabilities due within one year

In RMB

Item Ending balance Opening balance

Long-term borrowings due within one year 100210680.56 200010680.56

Lease payments due within one year 29550032.13 20693207.97

Total 129760712.69 220703888.53

33.Other current liabilities

In RMB

Item Ending balance Opening balance

Rebate payable 242680986.60 282435925.87

Pending sales tax 8090646.75 2950311.81

Total 250771633.35 285386237.68

Changes in short-term bonds payable: Nil

34.Long-term borrowings

(1) By category

In RMB

Item Ending balance Opening balance

Credit loan 190210680.56 300010680.56

Minus: long-term borrowings maturing within one year 100210680.56 200010680.56

Total 90000000.00 100000000.00

35.Lease liabilities

In RMB

Item Ending balance Opening balance

Lease payments 114180680.20 73534246.81

Financing expense not recognized 7778039.21 5524522.36

Minus: lease liabilities maturing within one year 29550032.13 20693207.97

Total 76852608.86 47316516.48

36.Long-term accounts payable

In RMB

Item Ending balance Opening balance

Long-term accounts payable 8740000.00 8740000.00

Special accounts payable 18265082.11 18265082.11

Total 27005082.11 27005082.11

(1) By nature

In RMB

Item Ending balance Opening balance

Hi-tech Branch of Nanjing Finance Bureau (note* ) Financial support funds (2008) 960000.00 960000.00

Hi-tech Branch of Nanjing Finance Bureau (note* ) Financial support funds (2011) 5040000.00 5040000.00

Hi-tech Branch of Nanjing Finance Bureau (note* ) Financial support funds (2013) 2740000.00 2740000.00

78WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Total 8740000.00 8740000.00

Other explanation:

Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is

allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from December 27 2010 to December

27 2025. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.

Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is

allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from December 28 2011 to December 28

2026. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.

Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is

allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from December 18 2013 to December 18

2028. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.

(2) Special accounts payable

In RMB

Item Opening Current Current Cause ofbalance increased decreased Ending balance formation

Removal compensation of

subsidiary WFJN 18265082.11 18265082.11

Refer to the

explanation

Total 18265082.11 18265082.11

Other explanation:

In line with regulation of the house acquisition decision of People’s government of Xuanwu District Nanjing City Ning Xuan Fu

Zheng Zi (2012) No.001 part of the lands and property of WFJN needs expropriation in order to carry out the comprehensively

improvement of Ming Great Wall. According to the house expropriation and compensation agreement in state-owned lands signed

between WFJN and House Expropriation Management Office of Xuanwu District Nanjing City 19706700.00 yuan in total were

compensated including operation losses from lessee 1441600.00 yuan in total. The above compensation was received in last

period and is making up for the losses from lessee and the above lands and property have not been collected up to June 30 2025.

37.Long-term wages payable

(1) Long-term wages payable

In RMB

Item Ending balance Opening balance

I.Post-employment benefits - Defined benefit plan net liabilities 20903411.37 19879635.58

II. Dismiss welfare 6837075.84 11027155.79

III. Other long-term welfare 15212070.31 15212070.31

Total 42952557.52 46118861.68

(2) Changes in defined benefit plan

Present value of defined benefit plan

In RMB

Item Current period Last period

I. Opening balance 19879635.58 21238891.62

II. Cost of defined benefit plan booked into current profit and loss 620384.67 325440.87

79WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

1.Current service cost 620384.67 325440.87

III. Cost of defined benefit plan booked into other comprehensive income -451530.88

1.Actuarial gains (losses are represented by “-”) -451530.88

IV. Other changes 403391.12 -970341.44

1.Welfare paid -1840954.97 -438808.45

2.Translation difference of foreign currency statements 2244346.09 -531532.99

V. Ending balance 20903411.37 20142460.17

Other explanation:

According to relevant regulations in Italy the Trattamento di Fine Rapporto (TFR) system is established. VHIO shall calculate and

offer severance to employees in accordance with employees’ employment period and taxable base salary when they leave or are

dismissed. The plan predicts future cash outflows at the inflation rate and determines its present value at the discount rate. The

above-mentioned benefit plan poses actuarial risks to VHIO mainly including interest rate risk and inflation risk. The decrease in

interest rates will lead to an increase in the present value of the defined benefit plan obligations. In addition the present value of

benefit plan obligations is related to the future payment standards of the plan which are determined on the basis of inflation rates.Therefore an increase in inflation rate will also lead to an increase in planned liabilities.

38.Anticipated liability

In RMB

Item Ending balance Opening balance Formation cause

Pending dispute and litigation 567714.68 508477.63

Product quality assurance 129215558.74 121072840.23

Environmental protection commitment 321812.81 288233.90

Total 130105086.23 121869551.76

Other explanations including important assumptions and estimation explanations related to significant provisions: Nil

39.Deferred income

In RMB

Item Opening balance Current increased Current decreased Ending balance Cause of formation

Government grant 151419335.74 12430090.50 24402761.17 501828.16 139948493.23

Total 151419335.74 12430090.50 24402761.17 501828.16 139948493.23

Other explanation:

Item with government grants involved:

In RMB

New Amount reckoned Translation of Assets

Items of liabilities Opening balance grants in into other income foreign currency Endingbalance related/Incomethe Period in the period statements related

Appropriation for R&D ability of

distributive high-pressure common

rail system for diesel engine use and 3973394.44 390825.69 3582568.75 Asset/Income

production line technological related

transformation project

R&D and industrialization of the

high-pressure variable pump of the

common rail system of diesel engine 688639.41 342637.95 346001.46 Asset related

for automobile

Fund of industry upgrade (2014) 33722041.39 6298651.31 27423390.08 Asset related

New-built assets compensation after

the removal of parent company 26199457.92 8204471.17 17994986.75 Asset related

80WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Fund of industry upgrade (2016) 40000000.00 40000000.00 Asset related

Guiding capital for the technical

reform from State Hi-Tech Technical 1354537.03 609075.87 745461.16 Income related

Commission

Implementation of the variable cross-

section turbocharger for diesel engine 1624110.44 472494.70 1151615.74 Asset related

Municipal technological reform fund

allocation in 2020 2295544.70 302658.40 1992886.30 Asset related

Strategic cooperation agreement

funding for key enterprise of smart 1708305.34 187259.45 1521045.89 Asset related

manufacturing in high-tech zone

R&D and industrialization project of

high-performance proton exchange

membrane fuel cell membrane 6296840.52 1003042.03 5293798.49 Asset related

electrode for vehicles

2023 Wuxi industrial transformation

and upgrading fund 8114753.86 505115.26 7609638.60 Asset related

Technical renovation and capacity

optimization project for annual

production of 150000 sets of 1472238.25 101940.57 1370297.68 Asset related

turbochargers

Project on the Application of High

Durability Dynamic Seal 1530000.00 1530000.00 Asset related

Development Machine

Equipment Investment Project in the

Pilot Scale Stage of Hydrogen Fuel 582043.36 69090.41 512952.95 Asset related

Cell Components in 2022

Other 21857429.08 12430090.50 5915498.36 501828.16 28873849.38 Asset related

Total 151419335.74 12430090.50 24402761.17 501828.16

139948493.2

3

40.Share

In RMB

Change during the year (+/-)

Opening balance New Bonus Shares Ending balanceshares share transferred from Other Subtotalissued capital reserve

Total

996986293.00-25000000.00-25000000.00971986293.00

shares

41.Capital reserve

In RMB

Item Opening balance Current increase Current decrease Ending balance

Capital premium (Share capital premium) 3158553526.22 444722092.24 2713831433.98

Other capital reserve 105095575.22 1472411.17 3909.02 106564077.37

Total 3263649101.44 1472411.17 444726001.26 2820395511.35

Other explanation including changes in the period and reasons for changes;

(1) Share capital premium decreased by 444722092.24 yuan in the Period as the company canceled 25000000 written-off

treasury shares which resulted in a decrease in share premium.

(2) The increase of 1472411.17 yuan in other capital reserves in the current period is due to changes in other equity of joint

ventures which the company enjoys in proportion to its shareholding; The decrease of 3909.02 yuan in other capital reserves in

the current period was the handling fee for buy backing shares.

42.Treasury stock

In RMB

Item Opening balance Current increase Current decrease Ending balance

Stock repurchases 469722092.24 100005328.00 469722092.24 100005328.00

81WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Repurchase obligation of restricted stock

incentive plan

Total 469722092.24 100005328.00 469722092.24 100005328.00

Other explanations including changes in the current period and explanations of the reasons for the changes:

Decreased by 469722092.24 yuan in the Period as the company cancelled 25000000.00 written-off treasury shares.

43.Other comprehensive income

In RMB

Current period

Less: written in Less: written in

other other

Account comprehensive comprehensive

Less: Attribut

Opening income in income in inco Attributable to able toItem Endingbalance before

income tax previous period previous period

me parent minority balance

and carried and carried tax company after shareholin the year forward to forward to expe tax ders

current retained earnings nse after tax

gains/losses in current period

I. Other comprehensive

income that cannot be

reclassified to -1437353.97 -1437353.97

gains/losses

Including: Remeasure

changes in defined -1453362.77 -1453362.77

benefit plans

Other comprehensive

income that cannot be

transferred to 16008.80 16008.80

gains/losses under

equity method

II. Other comprehensive

income items which will 137032360. 137032360.0 148602119.3

be reclassified 11569759.36

subsequently to 03 3 9

gains/losses

Conversion difference 137032360. 137032360.0 148602119.3

of foreign currency 11569759.36

financial statement 03 3 9

Total other 137032360. 137032360.0 147164765.4

comprehensive income 10132405.39

0332

Other explanations including the conversion of the effective portion of cash flow hedging gains and losses into adjustments to the

initial recognition amount of the hedged item: Nil.

44.Reasonable reserve

In RMB

Item Opening balance Current increase Current decrease Ending balance

Work safety expense 6257090.28 15315886.41 13283896.65 8289080.04

Total 6257090.28 15315886.41 13283896.65 8289080.04

Other explanation including changes and reasons for changes:

(1) Explanation on the withdrawing of special reserves (work safety expense): According to the Administrative Measures on the

Withdrawing and Use of Enterprise Safety Production Expenses (CZ [2022] No.136) jointly issued by the Ministry of Finance and

the State Administration of Work Safety in the current period the Company adopted excess retreat method for quarterly withdrawal

by taking the actual operating income of the previous period as the withdrawing basis.

(2) Among the above work safety expense including the work safety expense accrued by the Company in line with regulations and

the parts attributed to shareholders of the Company in work safety expense accrued by subsidiary in line with regulations.

45.Surplus reserve

In RMB

Item Opening balance Current increased Current decreased Ending balance

82WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Statutory surplus reserves 510100496.00 510100496.00

Total 510100496.00 510100496.00

Other explanation including changes and reasons for changes:

Pursuit to the Company Law and Article of Association the Company withdraws statutory surplus reserve on 10% of the net profit.No more amounts shall be withdrawal if the accumulated statutory surplus reserve takes over 50% of the registered capital.

46.Retained profit

In RMB

Item Current period Last period

Retained profits at the end of last year before adjustment 15523124882.77 15054950398.12

Retained profits at the beginning of the year after adjustment 15523124882.77 15054950398.12

Add: net profits attributable to owners of patent company of this period 701870308.75 1659533740.63

Less: Withdraw employee rewards and welfare funds 5535978.52

Cash dividends payable 872473493.70 1185823277.46

Retained profit at period-end 15352521697.82 15523124882.77

Details about adjusting the retained profits at the beginning of the period:

1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the

retained profits at the beginning of the period amounting to 0 yuan.

2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0 yuan.

3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0 yuan

4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 yuan.

5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 yuan

47.Operating income and cost

In RMB

Current period Last period

Item

Income Cost Income Cost

Main operating 5664265047.26 4727893633.72 5602366875.45 4625977661.64

Other business 96153585.85 37329159.55 91866677.27 30382562.42

Total 5760418633.11 4765222793.27 5694233552.72 4656360224.06

Breakdown information of operating income and operating cost:

In RMB

Energy conservation and Energy conservation and

Type emission reduction: emission reduction:

Energy conservation

of Segment of automotive Segment of automotive

and emission reduction: Segment of green Intelligent electric

fuel injection system after-treatment system Segment of intake hydrogen products products

Total

contra

ct products products

system products

Operating Operating Operating Operating Operating Operating Operating Operating Operatin Operatin Operating Operating

income cost income cost income cost income cost g income g cost income cost

Busine

ss type

Includi

ng:

Primar

y

busine

ss

Includi

ng:

recogn

ize at a 2313650 1836530 1844896 1601070 4338716 3440430 1030691 9061358 411553 401135 5664265 4727893

certain 577.35 419.01 152.37 878.09 15.55 18.19 340.94 04.38 61.05 14.05 047.26 633.72

point

in time

Recog

nized

within

a

certain

83WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

period

of time

Other

busine

ss

Includi

ng:

recogn

ize at a 58470580 22229440 14845988 6170486. 4469988 283673.4 7039232. 2922977 84825790 31606577

certain .74 .12 .00 15 .93 9 77 .34 .44 .10

point

in time

Recog

nized

within

a

certain

period

of time

Lease

incom 9603005. 5025338. 1014123.34 53 91 571060.06

710666.1126183.8113277955722582.

e 6 6 .41 45

Total 2381724 1863785 1860756 1607812 4390522 3444528 1037730 9090587 411553 401135 5760418 4765222163.43 197.66 264.28 424.30 70.64 75.54 573.71 81.72 61.05 14.05 633.11 793.27

48.Operating tax and extra

In RMB

Item Current period Last Period

City maintaining & construction tax 7020427.71 5794135.28

Educational surtax 5025514.39 4148769.09

Property tax 12450878.16 10803395.41

Land use tax 2664542.78 2892897.92

Vehicle use tax 9789.10 3536.00

Stamp duty 4264416.03 4000044.56

Other taxes 390464.52 617416.53

Total 31826032.69 28260194.79

49.Administration expenses

In RMB

Item Current period Last period

Salary and wage related expense 204152165.94 184784922.02

Depreciation charger and long-term

assets amortization 71505562.18 59381681.77

Consumption of office materials and

business travel charge 13749617.83 10158382.36

Other 91866536.05 76614673.16

Total 381273882.00 330939659.31

50.Sales expenses

In RMB

Item Current period Last Period

Salary and wage related expense 44704795.75 41075635.21

Consumption of office materials and business travel charge 5640944.50 5532210.03

Warehouse charge 2221697.97 10002106.13

Business entertainment fee 3830951.97 5635855.05

Other 27600272.59 15174719.90

Total 83998662.78 77420526.32

51.R&D expenditure

In RMB

84WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Item Current period Last period

Technology development expenditure 350722149.70 302233285.34

Total 350722149.70 302233285.34

52.Financial expenses

In RMB

Item Current period Last period

Interest expenses 9045918.64 13772229.94

Interest income 26681031.13 18112595.69

Gains/losses from exchange -19703453.00 10342985.06

Handling charges 2265521.40 2209219.32

Total -35073044.09 8211838.63

53.Other income

In RMB

Sources of income generated Current period Last period

Government grants with routine operation activity concerned 33077846.97 40309960.72

VAT instant refund 42098842.88 83247274.78

Tax credit for overseas subsidiaries 277977.10 6583950.25

Refund of individual income tax handling fee 678611.32 744863.36

Total 76133278.27 130886049.11

Among them the details of government subsidies are as follows:

Subsidy projects Current period Last period Related to asset/income

Annual production of 300000 four cylinder engine

supercharger technology renovation project 6771.94 Related to asset

Depreciation/amortization compensation for newly built asset

after the relocation of the parent Company 8204471.17 8771401.60 Related to asset

Technical transformation of catalytic reduction system for

commercial vehicles with an annual output of 180000 units 57777.78 60222.22 Related to asset

Research and industrialization project of high-pressure

variable pump for common rail system of automotive diesel 342637.95 499317.53 Related to asset

engine

Intelligent manufacturing demonstration project funds 35999.56 89925.24 Related to asset

Research Institute of Motor Vehicle Exhaust Aftertreatment

Technology 22026.39 Related to asset

Implementation plan for variable cross-section turbochargers

in diesel engines 472494.70 540821.30 Related to asset

Subsidy for the annual production of 200000 gasoline engine

turbochargers technology renovation project 137039.64 137881.94 Related to asset

Annual production of 150000 gasoline engine turbochargers 103967.86 103967.92 Related to asset

Technical Transformation Guidance Fund of the National

High tech Management Committee 609075.87 609075.97 Related to asset

Industrial upgrading fund 6298651.31 8540272.85 Related to income

R&D capability and production line technology

transformation project of distributed high-pressure common 390825.69 390825.70 Related to asset

rail system for diesel engines

Funding for municipal level technological renovation projects

in 2020 302658.40 307827.42 Related to asset

The second batch of provincial special funds for industrial

and information industry transformation in 2019 58959.60 211422.34 Related to asset

Subsidies for stabilizing and expanding positions 375067.19 13500.00 Related to income

Technical Renovation and Capacity Optimization Project for

Annual Production of 150000 Turbochargers 101940.57 101940.53 Related to asset

85WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Subsidy projects Current period Last period Related to asset/income

The third batch of provincial special funds for industrial and

information industry transformation and upgrading in 2021 1003042.03 513223.58 Related to asset

2023 Wuxi Industrial Transformation and Upgrading Fund

(Second Batch) Support Project Intelligent Construction 505115.26 443246.59 Related to asset

Project

3 R 697092.82 Related to income

Anione 50521.95 Related to income

Provincial specialized refined unique and new small and

medium-sized enterprises 150000.00 Related to income

Ningbo (Jiangbei) High tech Industrial Park 840000.00 Related to income

Industrial upgrading subsidy 11433123.80 Related to income

Subsidies for high-tech enterprises 100000.00 Related to income

Funds for industrial transformation and upgrading 2230000.04 Related to income

The 2024 Municipal Industrial Transformation and Upgrading

(Intelligentization Construction Project) 1990000.00 Related to asset

2021 Annual Quality Brand Standard Subsidy Fund 1710000.00 Related to income

Subsidies for talent policies 1150000.00 Related to income

Innovation subsidies in the equity market 400000.00 Related to income

The sixth batch of the new energy vehicle special project 500000.00 Related to income

Reward for Industrial Enterprises to Maintain Steady Growth 110000.00 Related to income

Other 5888122.35 5775551.09 Related to asset/income

Total 33077846.97 40309960.72

54. Income from change of fair value

In RMB

Sources Current period Last period

Changes in the fair value of tradable financial assets 27874369.01 -105956110.61

Total 27874369.01 -105956110.61

55. Investment income

In RMB

Item Current period Last period

Income of long-term equity investment measured with equity method 537786063.13 734287171.95

Investment income from holding of tradable financial assets 8904917.47 37864494.00

Investment income from disposal of tradable financial assets 957401.23

Income from debt restructuring -90729.00 -284132.56

Gains/losses recognized when financing of accounts receivable is terminated for discounting -1612166.00 -2198912.35

Total 545945486.83 769668621.04

56.Credit impairment loss

In RMB

Item Current period Last period

Bad debt loss of accounts receivable -491957.86 -865695.62

Bad debt loss of other accounts receivable -1461928.21 4356331.08

86WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Total -1953886.07 3490635.46

57.Asset impairment loss

In RMB

Item Current period Last period

1. Loss of inventory falling price and loss of contract performance cost impairment -72319585.77 -66803279.10

Total -72319585.77 -66803279.10

58. Income from assets disposal

In RMB

Sources Current period Last period

Income from disposal of non-current assets 636603.52 7727515.15

Losses from disposal of non-current assets -2678147.48 -1868313.66

Total -2041543.96 5859201.49

59.Non-operating income

In RMB

Item Current period Last period Amount reckoned into currentnon-recurring gains/losses

Payables that do not need to be paid 988957.32 429031.67 988957.32

Liquidated damages and compensation income 1590079.15 71807.84 1590079.15

Other 15432.64 199579.16 15432.64

Total 2594469.11 700418.67 2594469.11

60.Non-operating expense

In RMB

Item Current period Last period Amount reckoned into currentnon-recurring gains/losses

Donation 200000.00 213500.00 200000.00

Non-current assets disposal losses 3120421.81 385558.12 3120421.81

Including: loss on scrapping of fixed assets 3120421.81 385558.12 3120421.81

Penalty and breach of contract compensation

expenses 23172.01 2748402.93 23172.01

Other 1115.02 14354.30 1115.02

Total 3344708.84 3361815.35 3344708.84

61. Income tax expense

(1) Income tax expense

In RMB

Item Current period Last period

Payable tax in current period 33995641.69 34807415.48

Deferred income tax expense 8193965.24 -11103694.92

Total 42189606.93 23703720.56

(2) Adjustment on accounting profit and income tax expenses

In RMB

Item Current period

87WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Total profit 755336035.34

Income tax measured at statutory/applicable tax rate 113300405.30

Impact by different tax rate applied by subsidies -1693819.95

Impact from adjusting the previous income tax -1151535.65

Impact by non-taxable revenue -77416680.91

Impact on cost expenses and losses unable to be deducted 499222.35

Impact by the deductible losses of the un-recognized previous deferred income tax -15739440.56

The deductible temporary differences or deductible losses of the un-recognized

deferred income tax assets in the Period 27109715.25

Impact on additional deduction -3247057.18

Other 528798.28

Income tax expense 42189606.93

62.Other comprehensive income

See NotesVII 43 “Other comprehensive income”.

63. Items of cash flow statement

(1) Cash received in relation to operation activities

Other cash received in related to operation activities

In RMB

Item Current period Last period

Interest income 8107660.40 18112595.69

Government grants 12054487.84 19534548.13

Other 4970706.43 16773005.42

Total 25132854.67 54420149.24

Explanation on other cash received in relation to operation activities: Nil

Other cash paid in relation to operation activities

In RMB

Item Current period Last period

Cash cost 309302243.69 320543557.21

Other 4841083.61 12024400.43

Total 314143327.30 332567957.64

Explanation on other cash paid in relation to operation activities: Nil

(2) Cash in related to investment activities

Nil

(3) Cash in related to financing activities

Other cash paid in related to financing activities

In RMB

Item Current period Last period

Lease payments 23042522.75 9325420.84

Shares repurchase for restricted stock incentive plan unlocked 63567420.00

Repurchase of A shares 100005328.00

Other 9439.42 10353.00

88WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Total 123057290.17 72903193.84

Explanation on other cash paid in relation to financing activities: Nil

Changes in liabilities arising from financing activities

□Applicable ?Not applicable

(4) Explanation on cash flow listed at net amount

Nil

(5) Significant activities and financial impacts that do not involve current cash inflows and outflows but

affect the financial condition of the company or may affect the cash flow of the company in the future

Nil

64.Supplementary information to statement of cash flow

(1) Supplementary information to statement of cash flow

In RMB

Supplementary information Current period Last Period

1. Net profit adjusted to cash flow of operation activities:

Net profit 713146428.41 1001587824.42

Add: Assets impairment provision 74273471.84 63312643.64

Depreciation of fixed assets consumption of oil assets and depreciation of productive biology assets 318198397.15 282824515.77

Depreciation of right-of-use assets 17921960.23 8189471.05

Amortization of intangible assets 32244387.75 36545321.55

Amortization of long-term deferred expenses 3595375.61 4236889.73

Losses from disposal of fixed assets intangible assets and other long-term assets (gains shall be filled in

with the sign of “-”) 2041543.96 -5859201.49

Losses on scrapping of fixed assets (gains shall be filled in with the sign of “-”) 3120421.81 385321.29

Gains/losses from changes in fair value(gains shall be filled in with the sign of “-”) -27874369.01 105956110.61

Financial expenses (gains shall be filled in with the sign of “-”) -25308408.52 10831104.48

Investment losses (gains shall be filled in with the sign of “-”) -544242591.83 -771867533.39

Decrease of deferred income tax asset (increase shall be filled in with the sign of “-”) 10158100.24 -15433648.34

Increase of deferred income tax liability (decrease shall be filled in with the sign of “-”) 1365216.74 4329953.42

Decrease of inventory (increase shall be filled in with the sign of “-”) 226450506.94 110740083.45

Decrease of operating receivable accounts (increase shall be filled in with the sign of “-”) -422168504.08 -46728537.49

Increase of operating payable accounts (decrease shall be filled in with the sign of “-”) 107694431.99 95327334.27

Other 2257909.51 3514664.40

Net cash flows arising from operating activities 492874278.74 887892317.37

2. Major investments and financing activities that do not involve cash receipts and payments

Debt-to-capital

Convertible bonds maturing within one year

Financing to lease fixed assets

3. Net change of cash and cash equivalents:

Balance of cash at period end 2205802925.80 1874301039.39

Less: Balance of cash equivalent at year-begin 1756944672.22 2061986694.41

Add: Balance at year-end of cash equivalents

Less: Balance at year-begin of cash equivalents

89WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Net increase of cash and cash equivalents 448858253.58 -187685655.02

(2) Net cash payment for the acquisition of subsidiaries in the period

Nil

(3) Net cash received from the disposal of subsidiaries

Nil

(4) Components of cash and cash equivalent

In RMB

Item Ending balance Opening balance

I. Cash 2205802925.80 1756944672.22

Including: Cash on hand 5161.51 5360.59

Bank deposit available for payment at any time 2205797764.29 1756884345.96

Other monetary funds available for payment at any time 54965.67

II. Balance of cash and cash equivalents at the period-end 2205802925.80 1756944672.22

(5) Items whose application scope is restricted but are still listed as cash and cash equivalents

Nil

(6) Monetary items not belonging to cash and cash equivalents

Item Current period Last period Reasons for not belonging tocash and cash equivalents

Bank deposit - principal of time deposits with a 110000000.00 460000000.00 Do not meet the definition of cashmaturity of more than three months and cash equivalents.Bank deposit - accrued interest on time bank deposits

with a maturity of more than three months 920650.69 783541.52

Do not meet the definition of cash

and cash equivalents.Other monetary funds - margin paid for bank

acceptance bill 142735966.40 20363281.63

Do not meet the definition of cash

and cash equivalents.Other monetary funds - IRD performance bond 8470394.37 7583721.64 Do not meet the definition of cashand cash equivalents.Other monetary funds - Mastercard margin 225875.75 202231.29 Do not meet the definition of cashand cash equivalents.Other monetary funds - Guarantee letter margin 278566.46 719003.22 Do not meet the definition of cashand cash equivalents.Other monetary funds - ETC freeze 4000.00 Do not meet the definition of cashand cash equivalents.Total 262631453.67 489655779.30

(7) Notes to other significant activities

Nil

65.Notes to changes in entries of owners’ equity

Explain the items and amount at period-end adjusted for “Other” at end of the last year: Nil

90WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

66. Item of foreign currency

(1) Item of foreign currency

In RMB

Item Ending balance of foreigncurrency Rate of conversion

Ending RMB balance

converted

Monetary funds

Including: USD 24898489.10 7.1586 178238334.31

EUR 24863114.11 8.4024 208910008.02

HKD 7038125.85 0.91195 6418418.87

JPY 16498003.00 0.049594 818201.97

DKK 97140927.46 1.1263 109409826.59

Accounts receivable

Including: USD 2697452.11 7.1586 19309980.68

EUR 30082464.69 8.4024 252764901.31

HKD

DKK 24236367.20 1.1263 27297420.38

Long-term borrowings

Including: USD

EUR

HKD

Other accounts receivable

Including: EUR 454612.94 8.4024 3819839.77

DKK 8246202.64 1.1263 9287698.03

Short-term borrowings

EUR 3001854.83 8.4024 25222785.02

Accounts payable

Including: USD 686323.79 7.1586 4913117.48

EUR 23709748.03 8.4024 199218786.85

JPY 55008998.00 0.049594 2728116.24

DKK 31593316.38 1.1263 35583552.24

CHF 95156.24 8.9721 853751.30

Other accounts payable

Including: EUR 5403.28 8.4024 45400.52

USD 1087.90 7.1586 7787.84

DKK 895565.40 1.1263 1008675.31

Non-current liabilities due

within one year

Including: USD 142410.22 7.1586 1019457.80

EUR 766847.71 8.4024 6443361.20

DKK 2608084.13 1.1263 2937485.16

Leasing liabilities

Including: USD

EUR 2627660.73 8.4024 22078656.52

DKK 17473839.18 1.1263 19680785.07

Other explanation:

91WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

(2) Explanation on overseas operating entities. For important overseas operating entities it is necessary

to disclose their main overseas business locations the functional currency used for accounting and the

basis for the selection. In the event that there are changes in the functional currency used for

accounting the reasons for such changes should also be disclosed.□Applicable □Not applicable

IRD a subsidiary of the Company was established in Denmark in 1996. The 66% equity of IRD were acquired by the Company in

cash in April 2019. In October 2020 the company acquired the remaining 34.00% equity of IRD in cash thus the Company holds

100% equity of IRD. IRD is denominated in Danish Krone and IRD is mainly engaged in R&D production and sales of fuel cell

components.Borit a subsidiary of the company was established in Belgium in 2010. The Company acquired 100% equity of Borit in cash in

November 2020. Borit is denominated in Euro and engaged in R&D production and sales of fuel cell components.VHIO a subsidiary of the company was established in Italy in 2000. The Company acquired 100.00% equity of VHIO in cash in

October 2022. The company is denominated in Euro and engaged in R&D production and sales of vacuum and hydraulic pumps.

67.Lease

(1) The company as the lessee

?Applicable□Not applicable

Variable lease payments not included in the measurement of lease liabilities

□Applicable □Not applicable

Variable lease payments not included in the measurement of lease liabilities are recognized in current gains/losses at the time of

occurrence.When the Company's assessment results of renewal options termination options or purchase options change the lease liability is

remeasured at the present value of the revised lease payments and the revised discount rate and the carrying amount of the right-of-

use asset is adjusted accordingly. In case there are changes in the substantial lease payments the expected amount payable for the

guaranteed residual value or the variable lease payments dependent on the index or rate the lease liability is remeasured at the

present value of the revised lease payments and the original discount rate and the carrying amount of the right-of-use asset is

adjusted accordingly.Leasing costs of simplified handling of short-term leasing or leasing costs for low value assets

□Applicable □Not applicable

For short-term leases (the lease term not exceeding 12 months at the commencement date) and leases of low-value assets (assets with

value of less than 2000 yuan) the Company adopts a simplified treatment method not recognizing right-of-use assets and lease

liabilities. Instead the lease payments are recognized in the relevant asset costs or current profits and losses on a straight-line basis or

other systematically reasonable methods over each period within the lease term.Situation involving sale and leaseback transactions

Nil

(2) The company as the lessor

Operating lease with the company as the lessor

□Applicable □Not applicable

In RMB

Including: income related to variable lease payments not included in

Item Rental income

rental income

Rental of houses and equipment 13391341.58

92WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Total 13391341.58

Financing lease with the company as the lessor

□Applicable□Not applicable

Annual un-discounted rental income for the next five years

□Applicable□Not applicable

Adjustment table for un-discounted rental income and net lease investments: Nil

(3) Recognize gains/losses arising from financing lease sale with the company as producer or dealer

□Applicable□Not applicable

68.Data resource

Nil

69.Others

Nil

VIII. R&D expenditure

In RMB

Item Current period Last period

Employee compensation 153794341.30 136777851.37

Direct investment 105732400.86 78083296.26

Depreciation and amortization 50983948.92 52746394.50

Other 40211458.62 34625743.21

Total 350722149.70 302233285.34

Including: expensed R&D expenditure 350722149.70 302233285.34

1. R&D items that meet capitalization conditions

Nil

2. Important outsourced projects under research

Nil

IX. Changes in consolidation scope

1. Enterprise combination not under the same control

(1) Enterprise combines not under the same control occurred in the period

Nil

(2) Consolidation cost and goodwill

93WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Nil

(3) Book value of identifiable assets and liabilities of the merged party on the merger date

Nil

(4) Gains or losses arising from the remeasurement of equity held before the acquisition date at fair value

Whether it is a business combination realized by two or more transactions of exchange and a transaction of obtained control rights in

the Period or not

□Yes□No

(5) Explanation on the inability to reasonably determine the merger consideration or the fair value of

identifiable assets and liabilities of the acquired party on the purchase date or at the end of the merger

period

Nil

(6) Other explanation

Nil

2. Enterprise combination under the same control

(1) Enterprise combination under the same control that occurred in the current period

Nil

(2) Consolidation cost

Nil

(3) Book value of assets and liabilities of the merged party on merger date

Nil

3. Reverse purchase

Basic information of the transaction basis for the transaction constituting reverse acquisition whether the assets and liabilities

retained by the listed company constitute a business and the basis thereof determination of the combination cost amount of equity

adjustment when handled in accordance with equity transactions and its calculation.

4. Disposal of subsidiaries

94WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Whether there are transactions or events involving the loss of control over subsidiaries in the current period or not

□Yes □No

Whether there is a a situation where the investment in a subsidiary is disposed of step by step through multiple transactions and

control is lost in the current period or not

□Yes □No

5. Changes in the scope of consolidation due to other reasons

Explanation of changes in the scope of consolidation caused by other reasons (such as the establishment of new subsidiaries

liquidation of subsidiaries etc.) and their related situations:

Investment and establishment: Weifu ET Hydrogen Energy Technology (Wuxi) Co. Ltd.

6. Others

Nil

X. Equity in other entities

1. Equity in subsidiary

(1) Constitute of enterprise group

In ten thousand

Subsidiary Registered Main operation Registered

Shareholding ratio

capital place place Business nature Acquired wayDirectly Indirectly

WFJN 34628.68 Nanjing Nanjing Spare parts of internal- 80.00% Enterprise combines undercombustion engine the same control

WFLD 50259.63 Wuxi Wuxi Automobile exhaustpurifier muffler 100.00%

Enterprise combines under

the same control

WFMA 16500 Wuxi Wuxi Spare parts of internal-combustion engine 100.00% Investment

WFCA 21000 Wuxi Wuxi Spare parts of internal-combustion engine 100.00% Investment

WFTR 3000 Wuxi Wuxi Trading 100.00% Enterprise combines underthe same control

WFSC 7600 Wuxi Wuxi Spare parts of internal-combustion engine 66.00% Investment

WFTT 11136 Ningbo Ningbo Spare parts of internal-combustion engine 98.83% 1.17%

Enterprise combines not

under the same control

WFAM USD3310 Wuxi Wuxi Spare parts of internal- 51.00% Enterprise combines notcombustion engine under the same control

WFLD 300 Wuhan Wuhan Automobile exhaust(Wuhan) purifier muffler 60.00% Investment

WFLD

(Chongqing) 5000 Chongqing Chongqing

Automobile exhaust

purifier muffler 100.00% Investment

WFLD Automobile exhaust

(Nanchang) 3000 Nanchang Nanchang purifier muffler 100.00% Investment

WFAS 16500 Wuxi Wuxi Smart car equipment 66.00% Investment

WFLH 2000 Fuzhou Fuzhou Smart car equipment 40.00% Investment

WFDT USD2000 Wuxi Wuxi Hub Motor 80.00% Enterprise combines notunder the same control

WFQL 50000 Wuxi Wuxi Fuel cell components 45.00% 30.00% Investment

VHCN 13400 Wuxi Wuxi Vacuum and hydraulicpump 100.00%

Enterprise combines not

under the same control

WFSS 35000 Wuxi Wuxi Smart car equipment 61.43% Investment

WFET EUR1213.6 Wuxi Wuxi Hydrogen storageequipment 51.00% Investment

SPV DKK13867.50 Denmark Denmark Investment 100.00% Investment

95WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

IRD DKK12732 Denmark Denmark Fuel cell components 100.00% Enterprise combines notunder the same control

IRD America USD1543 America America Fuel cell components 100.00% Enterprise combines notunder the same control

Borit EUR2183 Belgium Belgium Fuel cell components 100.00% Enterprise combines notunder the same control

Borit America USD5 America America Fuel cell components 100.00% Enterprise combines notunder the same control

VHIO EUR500 Italy Italy Vacuum and hydraulic 100.00% Enterprise combines notpump under the same control

Explanation on shareholding ratio in subsidiary different from ratio of voting right:

The Company’s wholly-owned subsidiary WFAS jointly established WFLH with Ningbo Mihe Technology Co. Ltd. and

Qihengcheng Automotive Technology (Shanghai) Co. Ltd. The registered capital of WFLH at its establishment was RMB 20 million

with WFAS contributing RMB 8 million holding a 40% stake; Ningbo Mihe Technology Co. Ltd. contributing RMB 6 million

holding a 30% stake; and Qihengcheng Automotive Technology (Shanghai) Co. Ltd. contributing RMB 6 million holding a 30%

stake. According to the articles of association of WFLH and the relevant investment agreements WFAS is able to exercise control

over WFLH.Basis for holding half or less of the voting rights but still controlling the investee and holding more than half of the voting rights but

not controlling the investee: Nil

Basis for inclusion in the scope of consolidation of significant structured entities control: Nil

Basis for determining whether a company is an agent or a principal: Nil

Other explanation:

In February 2025 the Company together with Voith HySTech GmbH jointly invested to establish Weifu ET Hydrogen Energy

Technology (Wuxi) Co. Ltd. whose registered capital at the time of establishment is EUR12136000.00. The Company subscribed

for a capital contribution of EUR6189360.00 with 51.00% shareholding; Voith HySTech GmbH subscribed for a capital

contribution of EUR 5946640.00 with 49.00% shareholding. Since February 2025 the Company has included it in the scope of

consolidation of the consolidated financial statements.

(2) Important non-wholly-owned subsidiary

In RMB

Subsidiary Shareholding ratio of Gains/losses attributable to Dividend announced to distribute Ending equity ofminority minority in the Period for minority in the Period minority

WFJN 20.00% 6121692.08 238396667.41

Explanation on holding ratio different from the voting right ratio for minority shareholders: Nil

Other explanation: Nil

(3) Main financial information of the important non-wholly-owned subsidiary

In RMB

Ending balance Opening balance

Subsi

Current Non- Current

Non- Total Non- Current Non- Total

diary

assets current

Total liabilitie currentassets liabilitie liabilitie

Current current Total currentassets assets liabilitie liabilitie liabilitieassets s s s assets s s s

WFJ 1077576 467293 1544870 303481 46908 350389 943823 574847 1518670 309127 45928 355056

N 716.95 376.06 093.01 848.74 025.17 873.91 610.32 189.45 799.77 770.07 252.37 022.44

In RMB

Current period Last period

Subsidiar Total Cash flowOperation Net profit comprehensiv from Operation

Total Cash flow

y Income e income operation Income

Net profit comprehensive from operation

activity income activity

312060940.130608460.420864345.0641568618.8121876628.7121876628.7103197928.0

WFJN 30608460.40

5074554

Other explanation: Nil

96WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

(4) Significant restrictions on the use of enterprise group assets and pay off debts of enterprise group

Nil

(5) Financial support or other support provided to structured entities included in the scope of

consolidated financial statements

Nil

2. Transactions where the share of owners’ equity in subsidiaries changes while the company still

maintains control over the subsidiary

(1) Description of situation where the share of owners’ equity in subsidiaries changes

Nil

(2) Impact of the transaction on the minority shareholders' equity and the owners' equity attributable to

the parent company

Other explanation: Nil

3. Equity in joint venture and associated enterprises

(1) Important joint venture and associated enterprises

Joint venture or Main operation Registered Shareholding ratio Accounting treatment on investment for

associated enterprise place place Business nature Directly Indirect joint venture and associated enterprises

WFEC Wuxi Wuxi Catalyst 49.00% Equity method

RBCD Wuxi Wuxi Internal-combustionengine accessories 32.50% 1.50% Equity method

Zhonglian Electronics Shanghai Shanghai Internal-combustionengine accessories 20.00% Equity method

Shareholding ratio different from the voting right ratio: Nil

Basis for holding less than 20% of the voting rights but having significant influence or holding 20% or more of the voting rights but

not having significant influence: Nil

(2) Main financial information of important joint ventures

Other explanation: Nil

(3) Main financial information of important associated enterprises

In RMB

Ending balance/Current period Opening balance/Last Period

WFEC RBCD Zhonglian ZhonglianElectronics WFEC RBCD Electronics

Current assets 2798360659.76 12718907625.75 1641080582.70 3041695695.74 12910623291.25 119577141.22

Non -current assets 409615350.79 3381936920.63 9053837750.71 472221845.21 3547389964.65 9254084391.23

Total assets 3207976010.55 16100844546.38 10694918333.41 3513917540.95 16458013255.90 9373661532.45

Current liabilities 1033285141.76 6693333424.86 1502550218.70 1270209456.66 7011624627.65 14640927.97

Non-current liabilities 178439302.24 7072613.32 182387083.75 169080572.93 7102848.04

Total liabilities 1211724444.00 6693333424.86 1509622832.02 1452596540.41 7180705200.58 21743776.01

Net assets 1996251566.55 9407511121.52 9185295501.39 2061321000.54 9277308055.32 9351917756.44

Minority interests

Equity attributable to

shareholders of the parent 1996251566.55 9407511121.52 9185295501.39 2061321000.54 9277308055.32 9351917756.44

97WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

company

Share of net assets

calculated based on the 978163267.61 3198553781.32 1837059100.28 1010047290.27 3154284738.81 1870383551.29

shareholding ratio

Adjustment matters

--Goodwill 267788761.35 1407265.96 267788761.35 1407265.96

--Unrealized profit of

internal trading -7670808.80 -8111869.63

--Other -0.28 -0.28

Book value of equity

investment in associated 978163267.61 3458671733.59 1838466366.24 1010047290.27 3413961630.25 1871790817.25

enterprise

Fair value of equity

investment for associated

enterprise with

consideration publicly

Operation income 1601080995.29 4370812361.63 13252075.68 1846803762.77 5271654599.19 17135271.43

Net profit 172976401.62 760784253.17 1333377744.95 221785840.51 1100633775.00 1254847847.50

Net profit from discontinued

operations

Other comprehensive

income

Total comprehensive

income 172976401.62 760784253.17 1333377744.95 221785840.51 1100633775.00 1254847847.50

Dividends received from

associated enterprise in the 117600000.00 49000000.00

year

Other explanation

Adjustment item for other “-0.28”: the differential tail;

(4) Summary of financial information of insignificant joint ventures and associated enterprises

In RMB

Ending balance/Current period Opening balance/Last period

Joint venture:

Amount based on shareholding ratio

Associated enterprise:

Total book value of investment 727456942.54 351004139.17

Amount based on shareholding ratio

--Net profit -74974261.24 -1393571.96

--Total comprehensive income -74974261.24 -1393571.96

(5) Major limitation on capital transfer ability to the Company from joint venture or associated

enterprise

Nil

(6) Excess loss occurred in joint venture or associated enterprise

Nil

(7) Unconfirmed commitment with joint venture investment concerned

Nil

(8) Contingent liability with joint venture or associated enterprise investment concerned

Nil

98WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

4. Major joint operation

Nil

5. Structured body excluding in consolidated financial statement

Relevant explanations for structured entities not included in the scope of the consolidated financial statements: Nil

6. Other

Nil

XI. Government grant

7. Government grant recognized at report ending in terms of amount receivable

□Applicable□Not applicable

Reasons for not receiving the expected amount of government grants at the expected time point

□Applicable□Not applicable

8. Liabilities involved with government grant

□Applicable □Not applicable

In RMB

Current increase Amount bookedOpening into non- Amount carried Other changesEntities balance in government business income forward to other in current Ending balance

Asset/income

grant income period relatedin current period

Deferred

income 73326831.65 1990000.00 13643605.65 61673226.00 Asset related

Deferred

income 2708708.63 25000.00 2683708.63

Asset/income

related

Deferred

income 75383795.46 10440090.50 10734155.52 501828.16 75591558.60 Income related

Total 151419335.74 12430090.50 24402761.17 501828.16 139948493.23

9. Government grant booked into current gains/losses

□Applicable □Not applicable

In RMB

Accounting title Current period Last period

Other revenue 33077846.97 40309960.72

Total 33077846.97 40309960.72

XII. Risk related to financial instruments

1. Risks from financial instruments

Main financial instrument of the Company including monetary funds structured deposits accounts receivable equity instrument

investment financial products loans and account payable etc. more details of the financial instrument can be found in relevant

items of Note VII. Risks concerned with the above-mentioned financial instrument and the risk management policy takes for lower

the risks are as follow:

Aims of engaging in the risk management is to achieve equilibrium between the risk and benefit lower the adverse impact on

performance of the Company to minimum standards and maximized the benefit for shareholders and other investors. Base on the

risk management targets the basic tactics of the risk management is to recognized and analyzed the vary risks that the Company

counted established an appropriate risk exposure baseline and caring risk management supervise the vary risks timely and reliably

99WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

in order to control the risk in a limited range.In business process the risks with financial instrument concerned happen in front of the Company mainly including credit exposure

market risk and liquidity risk. BOD of the Company takes full charge of the risk management target and policy-making and takes

ultimate responsibility for the target of risk management and policy. Compliance department and financial control department

manager and monitor those risk exposures to ensuring the risks are control in a limited range.Credit Risk

Credit risk refers to the risk that one party of a financial instrument fails to perform its obligations and resulting in the financial loss

of other party. The company's credit risk mainly comes from monetary funds structured deposits note receivable accounts

receivable other accounts receivable. The management has established an appropriate credit policy and continuously monitors the

exposure to these credit risks.The monetary funds and structured deposits held by the Company are mainly deposited in financial institutions such as commercial

banks the management believes that these commercial banks have higher credit and asset status and have lower credit risks. The

Company adopts quota policies to avoid credit risks to any financial institutions.For accounts receivable other receivables and bills receivable the Company sets relevant policies to control the credit risk exposure.To prevent the risks the company has formulated a new customer credit evaluation system and an existing customer credit sales

balance analysis system. The new customer credit evaluation system aims at new customers the company will investigate a

customer’s background according to the established process to determine whether to give the customer a credit line and the credit line

size and credit period. Accordingly the company has set a credit limit and a credit period for each customer which is the maximum

amount that does not require additional approval. The analysis system for credit sales balance of existing customers means that after

receiving a purchase order from an existing customer the company will check the order amount and the balance of the accounts

owed by the customer so far if the total of the two exceeds the credit limit of the customer the company can only sell to the customer

on the premise of additional approval otherwise the customer must be required to pay the corresponding amount in advance. In

addition for the credit sales that have occurred the company analyzes and audits the monthly statements for risk warning of accounts

receivable to ensure that the company’s overall credit risk is within a controllable range.The maximum credit risk exposure of the Company is the carrying amount of each financial asset on the balance sheet.Market risk

Market risk of the financial instrument refers to the fair value of financial instrument or future cash flow due to fluctuations in the

market price changes and produce mainly includes the IRR FX risk and other price risk.

1) Interest rate risk

IRR refers to the fluctuate risks on Company’s financial status and cash flow arising from rates changes in market. IRR of the

Company mainly related with the bank loans. In order to lower the fluctuate of IRR the Company in line with the anticipative

change orientation choose floating rate or fixed rate that is the rate in future period will goes up prospectively then choose fixed

rate; if the rate in future period will decline prospectively then choose the floating rate. In order to minor the bad impact from

difference between the expectation and real condition loans for liquid funds of the Company are choose the short-term period and

agreed the terms of prepayment in particular.

2) Foreign exchange risk

FX risks refer to the losses arising from exchange rate movement. The FX risk sustain by the Company mainly related with the USD

EUR SF JPY HKD DKK except for the USD EUR SF JPY HKD and DKK carried out for the equipment purchasing of parent

company and WFAS material purchasing of parent company technical service and trademark usage costs of parent company the

import and export of WFTR operation of IRD operation of Borit and operation of VHIO and other main business of the Company

are pricing and settle with RMB (yuan). As the foreign financial assets and liabilities takes minor ratio in total assets the Company

has small FX risk of the financial instrument considered by management of the Company.As of June 30 2025 except for the follow assets or liabilities listed with foreign currency assets and liabilities of the Company are

carried with RMB.

100WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

* Foreign currency assets of the Company till end of June 30 2025:

Item Ending foreign Ending RMB balancecurrency balance Convert rate converted Ratio in assets (%)

Monetary funds

Including: USD 24898489.10 7.1586 178238334.31 0.63

EUR 24863114.11 8.4024 208910008.02 0.74

HKD 7038125.85 0.91195 6418418.87 0.02

-

JPY 16498003.00 0.049594 818201.97

DKK 97140927.46 1.1263 109409826.59 0.39

Accounts receivable

Including: USD 2697452.11 7.1586 19309980.68 0.07

EUR 30082464.69 8.4024 252764901.31 0.89

DKK 24236367.20 1.1263 27297420.38 0.10

Other accounts receivable

Including: EUR 454612.94 8.4024 3819839.77 0.01

DKK 8246202.64 1.1263 9287698.03 0.03

Total ratio in assets 2.88

* Foreign currency liability of the Company till end of June 30 2025:

Item Ending foreign Ending RMB balancecurrency balance Convert rate converted Ratio in assets(%)

Accounts payable

Including: USD 686323.79 7.1586 4913117.48 0.06

EUR 23709748.03 8.4024 199218786.85 2.52

JPY 55008998.00 0.0496 2728116.24 0.03

DKK 31593316.38 1.1263 35583552.24 0.45

CHF 95156.24 8.9721 853751.30 0.01

Other accounts payable

Including: EUR 1087.90 7.1586 7787.84

DKK

Non-current liabilities due within one year

Including: USD 142410.22 7.1586 1019457.80 0.01

EUR 766847.71 8.4024 6443361.20 0.08

DKK 2608084.13 1.1263 2937485.16 0.04

Leasing liabilities

Including USD

EUR 2627660.73 8.4024 22078656.52 0.28

DKK 17473839.18 1.1263 19680785.07 0.25

Total ratio in liabilities 3.73

* Other pricing risk

The equity instrument investment held by the Company with classification astradable financial assets and other non-current financial

assets are measured on fair value of the balance sheet date. The fluctuation of expected price for these investments will affect the

gains/losses from changes in fair valuefor the Company.Furthermore on the premise of deliberated and approved in 8th meeting of 10th session of the BOD the Company exercise entrust

financing with the self-owned idle capital; therefore the Company has the risks of collecting no principal due to entrust financial

products default. Aims at such risk the Company formulated the Management Mechanism of Capital Financing and well-defined

101WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

the authority to entrust financial management audit process reporting system Choice of trustee daily monitoring and verification

and investigation of responsibility etc. In order to lower the adverse impact from unpredictable factors the Company choose short-

term and medium period for investment and investment product’s term is up to 5 years in principle; The variety of investment

includes bank financial products trust plans of trust companies asset management plans of asset management companies various

products issued by securities companies fund companies and insurance companies etc.Liquidity risk

Liquidity risk refers to the capital shortage risk occurred during the clearing obligation implemented by the enterprise in way of cash

paid or other financial assets. The Company aims at guarantee the Company has rich capital to pay the due debts therefore a

financial control department is established for collectively controlling such risks. On the one hand the financial control department

monitoring the cash balance the marketable securities which can be converted into cash at any time and the rolling forecast on cash

flow in future 12 months ensuring the Company on condition of reasonable prediction owes rich capital to paid the debts; on the

other hand building a favorable relationship with the banks rationally design the line of credit credit products and credit terms

guarantee a sufficient limit for bank credits in order to satisfy vary short-term financing requirements.

2. Hedge

(1) Risk management for hedge business

□Applicable□Not applicable

(2) The company conducts eligible hedging business and applies hedging accounting

Other explanation: Nil

(3) The company conducts hedging business for risk management purposes and expects to achieve the

risk management objectives but has not applied hedging accounting.□Applicable□Not applicable

3. Financial assets

(1) By transfer manner

□Applicable □Not applicable

In RMB

Transfer method Nature of transferred financial assets Amount of transferred Derecognized Judgment basis forfinancial asset or not derecognition

Bill Bank acceptance bills in accounts Almost all of its risks and

endorsement receivable financing that have not yet 332387308.38 Derecognizedmatured rewards have been transferred

Bank acceptance bills in accounts

Bill discounting receivable financing that have not yet 355410716.69 Derecognized Almost all of its risks and

matured rewards have been transferred

Total 687798025.07

(2) Financial assets derecognized due to assignment

□Applicable □Not applicable

In RMB

Methods of transferring Amount of derecognized Gains/losses related to de-

Item

financial assets financial assets recognition

Accounts receivable financing Bill endorsement 332387308.38

Accounts receivable financing Bill discounting 355410716.69 -1612166.00

102WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Total 687798025.07 -1612166.00

(3) Financial assets which are assigned and involved continuously

□Applicable □Not applicable

Other explanation: Nil

XIII. Disclosure of fair value

1. Ending fair value of the assets and liabilities measured at fair value

In RMB

Ending fair value

Item

First level Second level Third level Total

I. Sustaining measured at fair value -- -- -- --

(I) Tradable financial assets 1110489.45 1023934181.67 1025044671.12

1. Financial assets measured at fair value and

whose changes are included in current profits 1110489.45 1023934181.67 1025044671.12

and losses

(1) Investment in equity instrument 1110489.45 1110489.45

(2) Investment in other liability

instruments and equity instrument 1023934181.67 1023934181.67

(II) Other non-current financial assets 689856655.22 689856655.22

1. Financial assets designated to be measured

at fair value and whose changes are included 689856655.22 689856655.22

in current profits and losses

(1) Investment in equity instrument 689856655.22 689856655.22

(III)Receivable financing 2013389318.37 2013389318.37

1. Financial assets measured at fair value and

whose changes are included in other 2013389318.37 2013389318.37

comprehensive income

(IV) Other equity instrument investment 677790690.00 677790690.00

1. Financial assets measured at fair value and

whose changes are included in current 677790690.00 677790690.00

gains/losses

Total assets sustaining measured at fair value 1110489.45 4404970845.26 4406081334.71

II. non-persistent measure of fair value -- -- -- --

2. Recognized basis for the market price sustaining and non-persistent measured at fair value on first

level

On June 30 2025 the tradable financial assets equity instrument investments held by the Company Hanma Technology (Stock

code: 600375). The fair value at the end of the period is determined at the closing price as of June 30 2025.

3. The qualitative and quantitative information for the valuation technique and critical parameter that

sustaining and non-persistent measured at fair value on second level

Nil

4. The qualitative and quantitative information for the valuation technique and critical parameter that

sustaining and non-persistent measured at fair value on third level

(1) Financing of receivable

For this portion of financial assets the company uses the discounted cash flow valuation technique to determine their fair value.Among them the important unobservable input values mainly include the discount rate the maturity period of the contractual cash

103WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

flows etc. For the cash flows with a contractual maturity period within 12 months (inclusive) no discounting is carried out and

the cost is taken as their fair value.

(2) Investments in other equity instruments

For this portion of financial assets due to the lack of market liquidity the company uses the replacement cost method to determine

their fair value. Among them the important unobservable input values mainly include the financial data of the invested company

etc.

(3) Investments in other debt instruments and equity instruments

For this portion of financial assets the company uses the valuation technique of discounted cash flows to determine them. Among

them the important unobservable input values mainly include the expected annualized rate of return the risk coefficient etc.

5. Continuous third-level fair value measurement items adjustment information between the opening

and closing book value and sensitivity analysis of unobservable parameters

Nil

6. Continuous fair value measurement items if there is a conversion between various levels in the

current period the reasons for the conversion and the policy for determining the timing of the

conversion

Nil

7. Changes in valuation technology during the current period and reasons for the changes

Nil

8. The fair value of financial assets and financial liabilities not measured at fair value

Nil

9. Other

Nil

XIV. Related party and related party transactions

1. Parent company of the company

Parent Registration place Business nature Registered capital shareholding ratio on the Voting right ratio oncompany enterprise for parent company the enterprise

Wuxi Industry Wuxi Operation of state-Group owned assets 6008531000.00 21.93% 21.93%

Explanation on parent company of the company

As of June 30 2025 Wuxi Industry Group holds 21.93% equity of the company.Wuxi Industry Group is an enterprise controlled by the State-owned Assets Management Committee of Wuxi Municipal People’s

Government. Its business scope includes foreign investment by using its own assets house leasing services self-operating and acting

as an agent for the import and export business of various commodities and technologies (Except for goods and technologies that are

restricted by the state or prohibited for import and export) domestic trade (excluding national restricted and prohibited items).(Projects that are subject to approval in accordance with laws can be operated only after being approved by relevant departments).Ultimate controller of the Company is the State-owned Assets Supervision & Administration Commission of Wuxi Municipality of

Jiangsu Province.Other explanation: Nil

104WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

2. Subsidiary of the Company

For more details of the Company’s subsidiaries please refer to Note X.1(1) “Component of enterprise group”.

3. Joint venture and associated enterprise

For more details please refer to Note V.3. Equity in Joint Venture and Associated Enterprises.Other joint venture or associated enterprises which have related transaction with the Company in the current period or previous

periods: Nil

4. Other related party

Other related party Relationship with the Company

Robert Bosch Company Second largest shareholder of the Company

Guokai Metals Enterprise controlled by the parent company

Urban Public Distribution Enterprise controlled by the parent company

FAILCONTECH Enterprise controlled by the parent company

Jiangsu Huilian Aluminum Industry Co. Ltd. (hereinafter referred to as

Enterprise controlled by the parent company

“Huilian Aluminum Industry”)

Wuxi IoT Innovation Center Co. Ltd. (hereinafter referred to as “Wuxi IoT”) Enterprise controlled by the parent company

Jiangsu Wuxi National Grain Reserve Depot Co. Ltd. (hereinafter referred to

as “Wuxi Grain Depot”) Enterprise controlled by the parent company

Wuxi Security Service Co. Ltd. (hereinafter referred to as “Wuxi Security”) Enterprise controlled by the parent company

Wuxi Zhongcui Food Co. Ltd. (hereinafter referred to as “Zhongcui Food”) Enterprise controlled by the parent company

Eleventh Design and Research Institute of Information Industry Electronic Enterprise indirectly controlled by parent

Science and Technology Engineering Co. Ltd. (hereinafter referred to as the company of the Companythe Company’s related

“Eleventh Institute of Science and Technology”) natural person serves as director

Enterprise indirectly controlled by parent

Wuxi Junhai Xichan Investment Management Co. Ltd. (hereinafter referred to

as "Junhai Xichan") company of the Companythe Company’s related

natural person serves as director

Key management Directors supervisors and senior executives of

the company

5. Related transaction

(1) Goods purchasing labor service providing and receiving

Goods purchasing/labor service receiving

In RMB

Content of

Related party related Current period Approved Whether more than thetransaction limit transaction limit (Y/N) Last Periodtransaction

WFPM Goods and labor 8667024.62 30000000.00 N 18856716.80

RBCD Goods and labor 121775133.27 252000000.00 N 121126592.18

WFEC Goods and labor 98795531.83 968000000.00 N 150641937.84

Bosch Goods and labor 116055402.96 281000000.00 N 111047597.86

FAILCONTECH Goods and labor 89960.17 Y 14500.00

Eleventh Institute of

Science and Technology Goods 0.00 N 28301.89

Wuxi IoT Goods and labor 0.00 N 20660.38

Goods sold/labor service providing

In RMB

Related party Content of related transaction Current period Last Period

105WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

WFPM Goods and labor 697100.72 387979.10

RBCD Goods and labor 613584470.39 660179963.62

WFEC Goods and labor 358670.32 247567.53

Bosch Goods and labor 1049548207.99 994815431.08

Changchun Xuyang Goods and labor 9557770.46 506713.80

Wuxi Zhuowei Goods and labor 4994665.10 5155881.45

Grain Reserves Goods and labor 3967.02 0.00

Description of related transactions in the purchase and sale of goods provision and acceptance of labor services

Nil

(2) Related trusteeship management/contract & entrust management/ outsourcing

Nil

(3) Related lease

The company as lessor:

In RMB

Lessee Assets type Lease income recognized in Lease income recognized atthe Period last Period

WFEC Workshop 1004452.20 1003317.02

RBCD Parking lot 265200.00 234000.00

Lezhuo Bowei Workshop and equipment 1600014.00 1548658.50

Junhai Xichan Workshop 9174.32 0.00

Explanation on related lease

WFLD entered into a house leasing contract with WFEC. The plant locating at No.9 Linjiang Road Wuxi Xinwu District owed by

WFLD was rented out to WFEC. WFLD recognized that the rental income in the period from Jan. 1 2025 to June 30 2025 was

1004452.20 yuan.

WFJN signed a house leasing contract with Lezhuo Bowei. Lezhuo Bowei leased a portion of WFJN’s plant located at No. 12

Liuzhou North Road Pukou District Nanjing City. The lease term is from January 1 2025 to December 31 2025. WFJN has

confirmed the rental income of 1463214.00 yuan for the period from January 1 2025 to June 30 2025; Lezhuo Bowei also rented

some equipment from WFJN and WFJN confirmed equipment rental income of 136800.00 yuan in the period from January 1 2025

to June 30 2025.WFHT and Junhai Xichan signed a house lease contract reaching the following agreement on Junhai Xichan's rental of the office and

meeting room on the first floor of the annex building of the R&D building located at No. 17 Changjiang Road Wuxi: The rental

income for the period from January 1 2025 to June 30 2025 is 9174.32 yuan.The company as lessee:

In RMB

Simplified rental Variable lease

fees for short-term payments notincluded in the Interest expense onleases and low value Increased right-of-

Lesseor Assets asset leases (if measurement of

Rent paid lease liabilities use asset

type applicable) lease liabilities (if

assumed

applicable)

Current Last Current Last Current period Last Current Last Current Lastperiod period period period period period period period period

Wuxi

AutoLink Housing

Intelligent and 2698200.00 0.00

Manufacturing equipment

Co. Ltd.Explanation on related leasing:

106WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

WFSS signed a lease contract with Wuxi AutoLink Intelligent Manufacturing Co. Ltd. The latter leased as a whole package its

property located at No. 8 Huayun Road Wuxi City (including workshops parking lots and supporting office furniture facilities

equipment etc.) to WFSS. The lease term is from June 1 2024 to May 31 2026. Based on this WFSS recognized the property lease

expenses of RMB 2698200.00 for the period from January to June 2025.

(4) Connected guarantee

Nil

(5) Related party’s borrowed/lending funds

Nil

(6) Related party’s assets transfer and debt restructuring

Nil

(7) Remuneration of key management

In RMB

Item Current period Last period

Remuneration of key manager 1980000.00 1950000.00

(8) Other related transactions

Related party Contents of item Current period Last period

WFPM Purchase of fixed assets 4075.81 3000.00

Robert Bosch Company Technology royalties paid etc. -- 2430001.29

Robert Bosch Company Purchase of fixed assets 396460.18 --

Robert Bosch Company Providing of technical services etc. 3539.82 --

WFEC Payable for technical services -- 258396.23

WFEC Providing of technology service etc. 769622.64 244150.94

WFEC Utilities payable 260287.4 106859.84

WFEC Sale of fixed assets 1483185.84

Lezhuo Bowei Utilities receivable 995901.03 888799.56

AutoLink Utilities payable 85129.73 --

Wuxi Industry Group Providing of technology service etc. -- 374764.15

Eleventh Institute of Science and Technology Purchase of fixed assets 100471.70 --

Zhongcui Food Purchase cafeteria ingredients 2017973.30 --

Urban public delivery Holding Purchase cafeteria ingredients 1491928.78 1086549.83

6. Receivable/payable items of related parties

(1) Receivable item

In RMB

Ending balance Opening balance

Item Related party

Book balance Bad debtsreserve Book balance

Bad debts

reserve

Accounts receivable WFPM 246700.75 4805.16 253087.10

Accounts receivable RBCD 640873405.61 2870670.80 807220878.29 3096153.84

Accounts receivable Robert BoschCompany 552506295.11 867665.22 638685114.08 1347705.10

107WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Accounts receivable Lezhuo Bowei 5712044.31 5234363.76 0.03

Accounts receivable WFEC 2495330.24 2599809.56

Accounts receivable Changchun Xuyang 13735475.15 9644850.41

Accounts receivable Wuxi Grain Depot 7409.48 242500.00

Other accounts Robert Bosch

receivable Company 3632005.25 225599.82 2885068.34 225599.82

Other accounts

receivable AutoLink 449700.00 449700.00

Dividends receivable WFPM 5357758.49 5357758.49

Robert Bosch

Prepayments 2560854.64 10933876.91

Company

Prepayments AutoLink 207404.87

Robert Bosch

Other non-current assets 7513200.00

Company

Other non-current assets Wuxi Industry Group 5452800.00 5452800.00

Total 1233237183.90 3968741.00 1496473006.94 4669458.79

(2) Payable item

In RMB

Item Related party Ending book balance Opening book balance

Accounts payable WFPM 6722446.17 7803153.23

Accounts payable WFEC 50258720.88 581475733.94

Accounts payable RBCD 60231544.03 67673428.74

Accounts payable Robert Bosch Company 10425972.31 28113764.28

Accounts payable AutoLink 1478079.00

Accounts payable Eleventh Institute of Science 46000.00

and Technology

Other current liabilities RBCD 0.05 0.05

Other current liabilities WFEC 9859.30

Other current liabilities WFPM 26394.04 26394.04

Other accounts payable WFPM 29000.00 29000.00

Unearned revenue Robert Bosch Company 41380.29

Contract liabilities WFPM 203031.12

Contract liabilities RBCD 0.36 0.36

Contract liabilities Robert Bosch Company 1241256.42 325299.33

Contract liabilities WFEC 75840.73

Contract liabilities WFPM 203031.12

Wuxi AutoLink Intelligent

Rent liability 3959404.89 2228404.32

Manufacturing Co. Ltd.Total 133097770.27 689529368.73

7. Undertakings of related party

Nil

8. Other

Nil

108WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

XV. Share-based payment

1. Overall situation of share-based payment

□Applicable ?Not applicable

2. Share-based payment settled by equity

□Applicable ?Not applicable

3. Share-based payment settled by cash

□Applicable □ Not applicable

4. Current share-based payment expenses

□Applicable ?Not applicable

5. Modification and termination of share-based payment

Nil

6. Other

Nil

XVI. Undertakings or contingency

1. Important undertakings

Important commitments existing as of the balance sheet date

Nil

2. Contingency

(1) Major contingency on balance sheet date

Contingent liabilities arising from providing debt guarantees for other entities and their financial impact

Guarantees for subsidiaries: as of June 30 2025 the Company has provided guarantees for all debts incurred by its subsidiary

VHWX and Shenzhen BYD Supply Chain Management Co. Ltd. due to performance obligations with the guaranteed amount being

10.00 million yuan.

As of June 30 2025 the Company has provided guarantee limit of 562.73 million yuan to its grandchild company VHIO. The scope

of the guarantee includes but is not limited to financing-related guarantees arising from the application for financing business

(including loans bank acceptance bills foreign exchange derivative transactions letters of credit letters of guarantee etc.) and

performance-related guarantees arising from daily operations.Other contingent liabilities and their financial impact

The company has no other significant contingent matters that need to be disclosed.

(2) Explain reasons for the important contingency unnecessary to disclosed by the Company

The Company has no important contingency that need to disclosed

3. Other

Nil

109WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

XVII. Events after the balance sheet date

1. Important non-adjusting events

Nil

2. Profit distribution

Cash dividends for every 10 shares proposed to be

distributed (yuan) 1

Share bonus for every 10 shares proposed to be

distributed (shares) 0

Transfer of capital reserve into share capital (per10

shares) proposed 0

Cash dividends for every 10 shares declared to be

distributed(yuan) 1

Share bonus for every 10 shares declared to be

distributed (shares) 0

Transfer of capital reserve into share capital (per 10

shares) approved 0

Based on the latest total share capital of the company (966785693 shares) a cash

dividend of RMB1.00 (including tax) will be distributed for every 10 shares

without bonus shares or capital reserve conversion into share capital. The total

planned cash dividend for this round is 96678569.30 yuan (including tax). If there

is a change in the total share capital of the company before the implementation of

Profit distribution plan

the distribution plan the company will distribute according to the principle of

unchanged distribution ratio and adjusted total distribution amount. The above-

mentioned distribution plan complies with the provisions of the company's articles

of association and the review procedures and fully protects the legitimate rights

and interests of small and medium-sized investors.

3. Return of sales

Nil

4. Other events after balance sheet date

Nil

XVIII. Other important events

1. Previous accounting errors correction

(1) Retrospective restatement

Nil

(2) Prospective application

Nil

2. Debt restructuring

Nil

110WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

3. Asset replacement

(1) Non-monetary asset replacement

Nil

(2) Other asset replacement

Nil

4. Pension plan

The Enterprise Annuity Plan under the name of WFHT has deliberated and approved by 8th meeting of 7th session of the BOD: in

order to mobilize the initiative and creativity of the employees established a talent long-term incentive mechanism enhance the

cohesive force and competitiveness in enterprise the Company carried out the above mentioned annuity plan since the date of reply

of plans reporting received from labor security administration department. Annuity plans are: the annuity fund are paid by the

enterprise and employees together; the enterprise’s contribution shall not exceed 8% of the gross salary of the employees of the

enterprise per year the combined contribution of the enterprise and the individual employee shall not exceed 12% of the total salary

of the employees of the enterprise. In accordance with the State’s annuity policy the Company will adjust the economic benefits in

due time in principle of responding to the economic strength of the enterprise the amount paid by the enterprise at current period

control in the 8% of the total salary of last year the maximum annual allocation to employees shall not exceed five times the average

allocation to employees and the excess shall not be counted towards the allocation. The individual contribution is limited to 1% of

one’s total salary for the previous year. Specific paying ratio later shall be adjusted correspondingly in line with the operation

condition of the Company.In December 2012 the Company received the Reply on annuity plans reporting under the name of WFHT from the labor security

administration department and later the Company entered into the Entrusted Management Contract of the Annuity Plan of WFHT

with PICC.

5. Termination of operation

Not applicable

6. Segment

(1) Recognition basis and accounting policy for reportable segment

Determine the operating segments in line with the internal organization structure management requirement and internal reporting

system. Operating segment of the Company shall satisfy the following conditions at the same time:

* The component is able to generate revenues and expenses in routine activities;

* Management of the Company is able to assess the operation results regularly and determine resources allocation and performance

evaluation for the component;

* The Company can obtain relevant accounting information such as the financial position operating results and cash flows of this

component through analysis.If two or more operating segments have similar economic characteristics and meet certain conditions they can be merged into one

operating segment.In consideration of the principle of importance the company determines the reporting segments on the basis of operating segments.The reporting segment of the company is a business unit that provides different products or services or operates in different regions.Due to the need for different technologies and market strategies in various businesses or regions the company independently

111WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

manages the production and operation activities of each reporting segment evaluates their operating results individually and decides

to allocate resources to them and evaluate their performance. The company mainly produces products of automotive internal

combustion engine fuel systems fuel cell components automotive parts mufflers purifiers vacuum and hydraulic pumps etc. And

it determines the reporting segments on the basis of products or service contents. However due to the mixed operation of related

businesses the total assets total liabilities and period expenses have not been allocated.

(2) Financial information for reportable segment

In RMB

Energy Energy

Energy conservation conservation and conservation

and emission emission and emission Segment of Offsetting

Item reduction: Segment reduction: reduction: Segment of greenof automotive fuel Segment of Segment of Intelligent electric hydrogen products between Total

injection system automotive after- automotive products segments

products treatment system intake system

products products

Revenue 2381724163.43 1860756264.28 439052270.64 1037730573.71 41155361.05 5760418633.11

Cost 1863785197.66 1607812424.30 344452875.54 909058781.72 40113514.05 4765222793.27

(3) The company shall state the reasons if it has no reportable segments or is unable to disclose the total

assets and liabilities of each reportable segment.The company mainly produces products of automotive internal combustion engine fuel systems fuel cell components automotive

parts mufflers purifiers vacuum and hydraulic pumps etc. And it determines the reporting segments on the basis of products or

service contents. However due to the mixed operation of related businesses the total assets total liabilities and period expenses

have not been allocated.

(4) Other explanations

Nil

7. Major transaction and events influencing investor’s decision

Nil

8. Other

Nil

XIX. Principal notes of financial statements of parent company

1. Accounts receivable

(1) By account age

In RMB

Aging Ending book balance Beginning book balance

Within one year(inclusive) 1390634941.06 1482006067.41

Including: within six months 1380821175.95 1460455344.98

Six months to one year 9813765.11 21550722.43

1-2 years 4746680.94 6409424.43

2-3 years 4931500.72 8408261.89

Over three years 1271157.56 1242046.26

112WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

3 - 4 years 659157.04 546653.26

4 - 5 years 531522.85 583255.45

Over 5 years 80477.67 112137.55

Total 1401584280.28 1498065799.99

(2) Disclosure by classification based on the accrual method of bad debts reserve

In RMB

Ending balance Opening balance

Category Book balance Bad debts reserve Book Book balance Bad debts reserve Book

Amount Ratio Amount Accrual Accrualratio value Amount Ratio Amount ratio value

Accounts receivable 1374631. 1374631. 1439571. 1439571.with bad debts reserve 0.10% 100.00% 0.10% 100.00%

accrued on single basis 66 66 54 54

Including:

Accounts receivable 1400209 4583456. 1395626 1496626 6690538. 1489935

with bad debts reserve 99.90% 0.33% 99.91% 0.45%

accrued on portfolio 648.62 66 191.96 228.45 40 690.05

Including:

Receivables from 1198225 4583456. 1193641 1331265 6690538. 1324575

customers 85.49% 0.38% 88.87% 0.50%167.36 66 710.70 647.15 40 108.75

Receivables from 2019844 2019844 1653605 1653605

internal related parties 14.42% 11.04%81.26 81.26 81.30 81.30

14015845958088.139562614980658130109.1489935

Total 100.00% 0.43% 100.00% 0.54%

280.2832191.96799.9994690.05

Bad debts reserve accrued on single basis:

In RMB

Beginning balance Ending balance

Name Book Bad debts Book Bad debts Accrual

balance reserve balance reserve ratio Accrued causes

SAIC HONGYAN

Automotive Co. Ltd 935626.30 935626.30 870686.42 870686.42 100.00%

Have difficulty in

collection

Tianjin Leiwo Engine Co. Have difficulty in

Ltd. 503945.24 503945.24 503945.24 503945.24 100.00% collection

Total 1439571.54 1439571.54 1374631.66 1374631.66

Bad debts reserve accrued on portfolio:

In RMB

Ending balance

Name

Book balance Bad debts reserve Accrual ratio

Within 6 months 1178836694.69

6 months to one year 8943078.69 894307.87 10.00%

1-2 years 4746680.94 949336.18 20.00%

2-3 years 4931500.72 1972600.29 40.00%

Over 3 years 767212.32 767212.32 100.00%

Total 1198225167.36 4583456.66

Explanation on determining the basis of this portfolio:

In the portfolio accounts receivable from internal related parties:

Name of related party Amount Ratio of bad debts reserve (%)

WFTR 101538714.88

WFSC 40701961.92

VHWX 27260252.82

113WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

WFSS 24188215.69

WFLD 3820430.64

WFAM 2846945.66

WFQL 1603782.88

WFET 19341.08

WFAS 4835.69

Total 201984481.26

Bad debts reserves accrued on general model of expected credit loss:

□Applicable□Not applicable

(3) Bad debts reserve accrued recovered or reversed

Bad debts reserve accrued in the period:

In RMB

Amount changed in the period

Category Opening balance Recovered or Ending balanceAccrued reversed Written-off Other

Accrued on single basis 1439571.54 64939.88 1374631.66

Accrued on portfolio 6690538.40 1972342.36 134739.38 4583456.66

Total 8130109.94 0.00 2037282.24 134739.38 0.00 5958088.32

Important bad debts reserve recovered or reversed in the period：Nil

(4) Accounts receivable written off in the Period

In RMB

Item Write-off amount

Actual written-off accounts receivable 134739.38

(5) Top 5 receivables and contract assets at ending balance by debtor

In RMB

Ending Ratio in total ending Ending balance of bad

Ending balance of

Ending balance of balance of balance of accounts debts reserve and

Name accounts receivable and

accounts receivable contract receivable and impairment provision of

contract assets

assets contract assets contract assets

RBCD 640871936.61 640871936.61 45.72% 2870670.80

Robert

Bosch 193493767.27 193493767.27 13.81% 452865.50

Company

Client 2 114583033.92 114583033.92 8.18% 250.00

WFTR 101538714.88 101538714.88 7.24%

Client 4 63701626.15 63701626.15 4.54%

Total 1114189078.83 1114189078.83 79.49% 3323786.30

2. Other accounts receivable

In RMB

Item Ending balance Opening balance

Interest receivable 1279404.99 6702396.94

114WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Dividends receivable 510296644.26 5357758.49

Other accounts receivable 1255090046.73 1417306880.03

Total 1766666095.98 1429367035.46

(1) Interest receivable

1) Category of interest receivable

In RMB

Item Ending balance Opening balance

Interest receivable of subsidiaries 1279404.99 6702396.94

Total 1279404.99 6702396.94

2) Significant overdue interest

Other explanation: Nil

3) Accrued bad debts reserve

□Applicable□Not applicable

4) Bad debts reserve accrued recovered or reversed

Nil

5) Interest receivable charged off during the report period

Nil

(2) Dividends receivable

1) Category of dividends receivable

In RMB

Investee Ending balance Opening balance

Zhonglian Electronics 300000000.00

RBCD 204938885.77

WFPM 5357758.49 5357758.49

Total 510296644.26 5357758.49

2) Important dividends receivable with aging over one year

Nil

3) Accrued bad debts reserve

□Applicable□Not applicable

4) Bad debts reserve accrued recovered or reversed

Nil

5) Dividends receivable charged off during the report period

(3) Other accounts receivable

1) By nature

115WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

In RMB

Nature Ending book balance Opening book balance

Staff loans and petty cash 528104.67 330080.00

Balance of related party in the consolidation scope 2885583741.12 3051023208.99

Margin 3018966.99 3097870.78

Social security and provident fund paid 6137410.85 6199417.67

Other 6813617.11 3051521.21

Total 2902081840.74 3063702098.65

2) By aging

In RMB

Aging Ending book balance Beginning book balance

Within one year (One year included) 146839052.63 216098598.61

Including: within 6 months 146839052.63 38421387.82

6 months to one year 177677210.79

1-2 years 23838960.57 279688422.50

2-3 years 933729008.92 2566161181.33

Over 3 years 1797674818.62 1753896.21

3-4 years 1797417538.62 50000.00

4-5 years 250080.00 1688070.00

Over five years 7200.00 15826.21

Total 2902081840.74 3063702098.65

3) Disclosure by classification based on the accrual method of bad debts reserve

Provision for bad debts reserve based on the general model of expected credit loss:

In RMB

Phase I Phase II Phase III

Expected credit Expected credit loss for Expected credit loss forBad debts reserve

loss over next 12 the entire duration the entire duration (with

Total

months (without credit credit impairmentimpairment occurred) occurred)

Balance of Jan. 1 2025 2326890.69 1644068327.93 1646395218.62

Balance of Jan. 1 2025 in the

period

Current accrual 607825.39 607825.39

Current reversal 11250.00 11250.00

Balance on June 30 2025 2934716.08 1644068327.93 1646991794.01

Change of book balance of loss provision with amount has major changes in the period

□Applicable□Not applicable

4) Bad debts reserve accrued recovered or reversed

Bad debts reserve accrued in the period:

In RMB

Amount changed in the period

Category Opening balance Ending balance

Accrued Recovered or reversed Written-off Other

Bad debts

reserve 1646395218.62 607825.39 11250.00 1646991794.01

Total 1646395218.62 607825.39 11250.00 1646991794.01

116WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Including the important bad debts reserve recovered or reversed in the period

5) Other receivables charged off during the report period

Nil

6) Top 5 other receivables at ending balance by debtor

In RMB

Ratio in total

Name Nature Ending balance Aging ending balance of Ending balance of

other receivables bad debts reserve

WFTR Balance of related party inthe consolidation scope 2728260000.00 2-4 years 94.01% 1644068327.93

WFCA Balance of related party inthe consolidation scope 133610000.00 Within 1 year 4.60%

IRD Fuel Cells A/S Balance of related party inthe consolidation scope 23713741.12 1-2 years 0.82%

Wuxi Xingzhou

Energy

Development Co. Security deposit 1045373.12 1-4 years 0.04% 523949.19

Ltd.Wuxi Youlian

Thermal Power Security deposit 750000.00 3-4 years 0.03% 750000.00

Co. Ltd.Total 2887379114.24 99.50% 1645342277.12

7) Those booked into other accounts receivable due to centralized fund management

Other explanation: Nil

3. Long-term equity investments

In RMB

Ending balance Opening balance

Item Book balance Impairment Impairmentprovision Book value Book balance provision Book value

Investment in

subsidiary 4144257102.63 4144257102.63 3846281133.43 3846281133.43

Investment in

associated

enterprises and 5516981272.31 5516981272.31 5533108674.14 5533108674.14

joint venture

Total 9661238374.94 9661238374.94 9379389807.57 9379389807.57

(1) Investment in subsidiaries

In RMB

Opening Changes in current period Ending

Investee Opening balance balance of Ending balance balance of(book value) impairment Additional Negative

Impairment

(book value) impairment

provision Investment Investment

provision Other

accrued provision

WFJN 185704551.82 185704551.82

WFLD 658974151.79 658974151.79

WFMA 170989402.39 170989402.39

WFCA 222662029.98 222662029.98

WFTR 33726511.51 33726511.51

WFSC 51116685.47 51116685.47

WFTT 238063380.00 238063380.00

WFAM 82454467.99 82454467.99

117WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

WFDT 54012820.23 54012820.23

SPV 1564188899.46 273914271.20 1838103170.66

WFLD(Chongqing) 191160.00 191160.00

WFAS 631890.00 631890.00

WFQL 225000000.00 225000000.00

VHWX 143559879.99 143559879.99

WFSS 215005302.80 215005302.80

WFET 24061698.00 24061698.00

Total 3846281133.43 297975969.20 4144257102.63

(2) Investment in associated enterprises and joint venture

In RMB

Current changes (+/ -)

Opening Opening Ending Ending

Investee balance balance of Investment Cash balance balance of(book impairment

Additional Capital gain/loss

Other

comprehensive Other dividend Impairment

(book provision

value) provision

investment reduction recognized income equity or profit provision Other

value) impairment

under adjustment change announced accruedequity to issued

I. Joint venture

II. Associated enterprise

32733

RBCD 96963. 2472964 2049388

33157

94.5385.7754571.1490

Zhonglian 1871790817. 2666755 3000000

18384

Electronics 25 48.99 00.00

66366.

24

WFPM 44293

-

228815.01884444253972.2787.12604.31

AutoLink 210866

-20410

149.896758663.7486.6218

Lezhuo 132760 - 11439

Bowei 771.59 1836152 9243.18.41 8

5533155169

Subtotal 08674. 0.00 4886230 18844 5049388

1436.827.1285.77

81272.

31

55331 4886230 18844 5049388 55169Total 08674. 36.82 7.12 85.77 81272.14 31

The recoverable amount is determined on the basis of the net amount after deducting disposal expenses from fair value

□Applicable□Not applicable

The recoverable amount is determined on the basis of the present value of expected future cash flows

□Applicable□Not applicable

Reasons for significant inconsistencies between the aforementioned information and the information used in impairment tests of

prior years or external information

Nil

Reasons for significant inconsistencies between the information used in the company’s impairment tests of prior years and the

actual situation of the current year

Nil

(3) Other explanations

Nil

4. Operating income and cost

In RMB

118WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

Current period Last period

Item

Income Cost Income Cost

Main business 1671101977.89 1426898652.14 1571269780.01 1272653914.93

Other business 149675813.72 127350888.53 76619546.23 53197251.79

Total 1820777791.61 1554249540.67 1647889326.24 1325851166.72

5. Investment income

In RMB

Item Current period Last period

Investment income of tradable financial assets during holding period 4729903.52 34771161.26

Investment income in subsidiaries 475645907.12

Investment income in joint ventures and associated enterprises 488623036.82 603770972.68

Revenue from debt restructuring -81788.63 -81000.00

Investment income from disposing of tradable financial assets 957401.23

Total 969874460.06 638461133.94

6. Others

Nil

XX. Supplementary Information

1. Current non-recurring gains/losses

□Applicable □Not applicable

In RMB

Item Amount Note

Gains/losses from the disposal of non-current assets -5161965.77

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 19434241.32

quantitative basis according to certain standards)

Except for the effective hedging operations related to normal business operation of the Company the

gains/losses from changes in fair valuefrom holding the tradable financial assets and trading financial

liabilities and the investment earnings obtained from disposing the tradable financial asset trading financial 28831770.24

liability and financial assets available for sale

Gains/losses of assets delegation on others’ investment or management 8904917.47

Reversal of impairment provision for receivables separately tested for impairment transfer back 315417.09

Gains/losses of debt restructuring -110699.11

Other non-operating income and expenditure except for the aforementioned items 3396476.85

Less: Impact on income tax 7648195.82

Impact on minority shareholders’ equity (After tax) 1434107.96

Total 46527854.31 --

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 are 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

119WEIFU HIGH-TECHNOLOGY GROUP CO. LTD. SEMI-ANNUAL FINANCIAL REPORT 2025

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 attributable to common stock stockholders of the Company 3.49% 0.72 0.72

Net profits attributable to common stock stockholders of the Company

after deducting non-recurring gains/losses 3.26% 0.67 0.67

3. Difference of the accounting data under accounting rules in and out of China

(1) Difference of the net profit and net assets disclosed in financial report under both IAS

(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting

Principles)

□Applicable□ Not applicable

(2) Difference of the net profit and net assets disclosed in financial report under both foreign

accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)

□Applicable□ Not applicable

(3) Explanation on data differences under the accounting standards in and out of China; as for the

differences adjustment audited by foreign auditing institute listed name of the institute

Nil

4. Other

Nil

120