苏威孚Ｂ:2022年半年度报告（英文版）

WEIFU HIGH-TECHNOLOGY GROUP CO. LTD.SEMI-ANNUAL REPORT 2022

August 2022Section I. Important Notice Contents and Interpretation

Board of Directors Supervisory Committee all directors supervisors and senior

executives of Weifu High-Technology Group Co. Ltd. (hereinafter referred to as the

Company) hereby confirm that there are no any fictitious statements misleading

statements or important omissions carried in this report and shall take all

responsibilities individual and/or joint for the reality accuracy and completion of the

whole contents.Wang Xiaodong Principal of the Company Ou Jianbin person in charge of accounting

works and Ou Jianbin person in charge of accounting organ (accounting principal)

hereby confirm that the Financial Report of 2022 Semi-Annual Report is authentic

accurate and complete.All directors are attend the Meeting for the Report deliberation.The forward-looking statements with future plans involved in the Report do not

constitute a substantial commitment for investors. Investors and related parties should

maintain sufficient risk awareness and investors are advised to exercise caution of

investment risks.The Company may face main risks in future operation and countermeasures are

describes in the “Management Discussion and Analysis” the investors are advised to

check them out.The Company has no plan of cash dividend distributed no cash bonus and capitalizing

of common reserves either carried out.The Report is prepared in Chinese and English respectively. In the event of any

discrepancy between the two versions the Chinese version shall prevail.

1Contents

Section I. Important Notice Contents and Interpret... 1

Section II. Company Profile and Main Financial Ind... 5

Section III. Management Discussion and Analysis ..... 8

Section IV. Corporate Governance ................... 22

Section V. Environmental and Social Responsibility.. 24

Section VI. Important Matters ...................... 28

Section VII. Changes in Shares and Particulars abo.. 38

Section VIII. Preferred Stock ...................... 42

Section IX. Corporate Bonds ........................ 43

Section X. Financial Report ........................ 44

2Documents Available for Reference

I. Financial statement carrying the signatures and seals of person in charge of the company principal of the

accounting works and person in charge of accounting organ (accounting Supervisor);

II. Original documents of the Company and manuscripts of public notices that disclosed in the website designated

by CSRC during the reporting period;

III. The Semi-Annual report summary published on China Securities Journal Securities Times and Hong Kong

Commercial Daily during the Period.IV. Place for preparation: Office of the BOD of the Company

3Interpretation

Items Refers to Contents

Company The Company WFHT Refers to WEIFU HIGH-TECHNOLOGY GROUP CO. LTD.Weifu Group Refers to Wuxi Weifu Group Co. Ltd.Wuxi Industry Group Refers to Wuxi Industry Development Group Co. Ltd.Robert Bosch Robert Bosch Company Refers to Robert Bosch Co. Ltd ROBERT BOSCH GMBH

RBCD Refers to Bosch powertrain Co. Ltd

WFLD Refers to WUXI WEIFU LIDA CATALYTIC CONVERTER CO. LTD.WFJN Refers to NANJING WEIFU JINNING CO. LTD.NINGBO WEIFU TIANLI TURBOCHARGING TECHNOLOGY

WFTT Refers to

CO.LTD.WFCA Refers to WUXI WEIFU CHANG′AN CO.LTD.WFMA Refers to WUXI WEIFU MASHAN FUEL INJECTION EQUIPMENT CO. LTD.WFTR Refers to WUXI WEIFU INTERNATIONAL TRADE CO.LTD.WFSC Refers to WUXI WEIFU SCHMITTER POWERTRAIN COMPONENTS CO.LTD.WFAM Refers to WUXI WEIFU AUTOCAM PRECISION MACHINERY CO.LTD.WFDT Refers to WUXI WEIFU E-DRIVE TECHNOLOGIES CO. LTD.WFAS Refers to WUXI WEIFU AUTOSMART SEATING SYSTEM CO. LTD.SPV Refers to Weifu Holding ApS

IRD Refers to IRD Fuel Cells A/S

Borit Refers to Borit NV

WFFC Refers to Wuxi Weifu Qinglong Power Technology Co. Ltd.WFEC Refers to Wuxi Weifu Environmental Catalysts. Co. Ltd.WFPM Refers to Wuxi Weifu Precision Machinery Manufacturing Co. Ltd.Zhonglian Electronics Refers to Zhonglian Automobile Electronics Co. Ltd.Guokai Metal Refers to Wuxi Guokai Metal Resources Co. Ltd.Hebei Machinery Refers to Hebei Machinery Import and Export Co. Ltd

CSRC Refers to China Securities Regulatory Commission

SZSE Refers to Shenzhen Stock Exchange

The reporting period Refers to 1 January 2022 to 30 June 2022

4Section II Company Profile and Main Financial Indexes

I. Company profile

Short form of the stock WFHT Su Weifu-B Stock code 000581 200581

Stock exchange for listing Shenzhen Stock Exchange

Name of the Company (in Chinese) 无锡威孚高科技集团股份有限公司

Short form of the Company (in Chinese if applicable) 威孚高科

Foreign name of the Company (if applicable) WEIFU HIGH-TECHNOLOGY GROUP CO.LTD.Short form of foreign name of the Company (if

WFHT

applicable)

Legal representative Wang Xiaodong

II. Person/Way to contact

Secretary of the Board Rep. of security affairs

Name Liu Jinjun Xu Kan

Contact add. No.5 Huashan Road Xinwu District Wuxi No.5 Huashan Road Xinwu District Wuxi

Tel. 0510-80505999 0510-80505999

Fax. 0510-80505199 0510-80505199

E-mail Web@weifu.com.cn Web@weifu.com.cn

III. Others

1. Way of contact

Whether registrations address offices address and codes as well as website and email of the Company changed in

reporting period or not

□Applicable□Not applicable

Registrations address offices address and codes as well as website and email of the Company has no change in

reporting period found more details in Annual Report 2021.

2. Information disclosure and preparation place

Whether information disclosure and preparation place changed in reporting period or not

□Applicable□Not applicable

The newspaper appointed for information disclosure website for semi-annual report publish appointed by CSRC

and preparation place for semi-annual report have no change in reporting period found more details in Annual

Report 2021.

53.Other relevant information

Whether other relevant information has changed in the reporting period

□Applicable□Not applicable

IV. Main accounting data and financial indexes

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

□Yes □No

Changes in the current period

Current period Same period of last year compared with the same period of

the previous year (+-)

Operation income (RMB) 7321835360.98 9037691756.24 -18.99%

Net profit attributable to shareholders of

1232762710.951645389487.32-25.08%

the listed company(RMB)

Net profit attributable to shareholders of

the listed company after deducting non- 1269045170.40 1702220554.09 -25.45%

recurring gains and losses(RMB)

Net cash flows arising from operating

-2493982044.8980191609.17-3210.03%

activities (RMB)

Basic earnings per share (RMB/Share) 1.25 1.66 -24.70%

Diluted earnings per share (RMB/Share) 1.25 1.66 -24.70%

Weighted average ROE 6.24% 8.72% -2.48%

Changes at end of the current

Current period-end period-end of last year period compared with the end of

previous year (+-)

Total assets (RMB) 31402279358.05 27970858427.84 12.27%

Net assets attributable to shareholder of

18976164813.5219398607689.65-2.18%

listed company (RMB)

V. Difference of the accounting data under accounting rules in and out of China

1. Difference of the net profit and net assets disclosed in financial report under both IAS (International

Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)

□Applicable□Not applicable

The Company had no difference of the net profit or net assets disclosed in financial report under either IAS (International

Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.

2. Difference of the net profit and net assets disclosed in financial report under both foreign accounting

rules and Chinese GAAP (Generally Accepted Accounting Principles)

□Applicable□Not applicable

The Company had no difference of the net profit or net assets disclosed in financial report under either foreign accounting rules or

Chinese GAAP (Generally Accepted Accounting Principles) in the period.

6VI. Items and amounts of extraordinary profit (gains)/loss

□Applicable □Not applicable

Unit: RMB/CNY

Item Amount Note

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

-285098.92

for impairment of assets)

Governmental grants reckoned into current gains/losses (except for those with normal

operation business concerned and conform to the national policies & regulations and are 26095621.93

continuously enjoyed at a fixed or quantitative basis according to certain standards)

Profit and loss of assets delegation on others’ investment or management 508215.09

Except for the effective hedging operations related to normal business operation of the

Company the gains/losses of fair value changes from holding the trading financial assets

-69141331.87

and trading financial liabilities and the investment earnings obtained from disposing the

trading financial asset trading financial liability and financial assets available for sale

Switch back of provision for depreciation of account receivable which was singly taken

593396.00

depreciation test

Other non-operating income and expenditure except for the aforementioned items 197098.29

Less: Impact on income tax -6602079.68

Impact on minority shareholders’ equity (post-tax) 852439.65

Total -36282459.45

Specific information on other items of profits/losses that qualified the definition of non-recurring profit(gain)/loss

□Applicable□Not applicable

The Company does not have other items of profits/losses that qualified the definition of non-recurring profit(gain)/loss

Information on the definition of non-recurring profit(gain)/loss that listed in theQ&A Announcement No.1 on Information Disclosure

for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss as the recurring

profit(gain)/loss

□Applicable□Not applicable

The Company does not have any non-recurring profit(gain)/loss listed under theQ&A Announcement No.1 on Information Disclosure

for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/lossdefined as recurring

profit(gain)/loss

7Section III Management Discussion and Analysis

I. Main businesses of the company in the reporting period

(1) Main business of the Company

Main business of the Company including the R & D production and sales of automotive core components. During

the reporting period the main products were diesel fuel injection system products and exhaust gas treatment system

products and air management system products. At the same time the core component products of the fuel cell have

been produced and sold in small quantities.

1. Diesel fuel injection system products are widely used for diesel engines of a variety of power supporting various

types of trucks passenger cars construction machinery marine machinery agricultural machinery generator sets

etc. and satisfy the National VI and non-road National IV emissions regulations for vehicles. We have been taking

a leading position in the industry in terms of product variety manufacturing scale market share etc. While doing a

good job in matching with domestic main engines some products are exported to the Americas Southeast Asia the

Middle East and other regions.

2. Exhaust gas treatment system products can meet the National VI and non-road National IV emission regulations

for vehicles of which the technical level market scale and production capacity are in a leading position in China

and are widely used in passenger cars commercial vehicles non-road machinery etc. and can provide strong

support for the upgrading of the engine manufacturers' products.

3. Air management system products (turbochargers) can meet the National VI and non-road National IV emission

regulations for vehicles covering commercial vehicles passenger vehicles construction machinery agricultural

machinery generator sets and other fields and supporting major domestic engine manufacturers and OEMs.

4. The fuel cell core components include "one membrane and two plates" (membrane electrode graphite bipolar

plate metal bipolar plate) and BOP key components etc. supporting domestic and foreign fuel cell stacks and

system manufacturers.

(2) Business model of the CompanyThe Company follows the operating philosophy of “making competitive products creating famous brands andachieving joint value growth” implements the business model that parent company unifies the management and

subsidiaries decentralize the production. The parent company is responsible for making strategic development

planning and operation targets and making the unified management instruction and assessment for the finance

significant personnel management core raw materials quality control and the R&D of technologies.The

subsidiaries arrange production based on the order management model of market which makes the subsidiaries

keep the consistent quality with the company helps keep abreast of customer needs and saving logistics costs

maintain the timeliness of products production and supply and improve the company’s economic benefits.

(3) Development of the industry

The industry in which the company operates belongs to the automotive components manufacturing industry which

is closely related to the development of the auto industry. In the first half of 2022 China's auto industry faced with

8triple pressures from supply shock demand contraction and weakening expectations. The shortage of chip and the

rise in the price of raw materials for power batteries especially the outbreaks of the pandemic in Jilin Shanghai and

other regions caused a serious impact on the supply chain of China's automobile industry chain. From mid to late

March to April the production and sales of automobiles had a sharp decline posing severe challenges to the steady

growth of the industry. From January to June 2022 China produced 12.117 million automobiles and sold 12.057

million automobiles a year-on-year decrease of 3.7% and 6.6% respectively.

1. Commercial vehicle market

From January to June 2022 produced 1.683 million commercial vehicles and sold 1.702 million commercial

vehicles a year-on-year decrease of 38.5% and 41.2% respectively. In terms of production and sales of different

models produced 176000 passenger cars and sold 180000 passenger cars declined by 31.8% and 30.5% on a year-

on-year basis respectively; produced 1.507 million trucks and sold 1.522 million trucks a year-on-year decrease of

39.3% and 42.2% respectively.

The first half of last year driven by environmental protection policies enterprises seized the opportunity for

switching emission standards between the National V and the National VI resulting in a long-term truck purchase

peak the high production of heavy-duty National V diesel vehicles which caused insufficient demand there were

still a small number of vehicles to be sold in addition the sales of blue-plate light truck inventory vehicles was also

relatively slow. Moreover in the first half of this year due to the impact of the pandemic the start of infrastructure

construction was slow and the construction speed was lower than expected so the production and sales of trucks

fell sharply on a year-on-year basis. At the same time the pandemic in the first half of the year had a great impact

on the demand for tourism passenger cars and city buses and the passenger car market continued to be sluggish.

2. Passenger car market

From January to June 2022 produced 10.434 million passenger vehicles and sold 10.355 million passenger vehicles

an increase of 6.0% and 3.4% on a year-on-year basis respectively. Production and sales ended a decline and the

overall level returned to normal. In terms of vehicle models sedans and SUVs increased slightly on a year-on-year

basis while other models still had a decline.Judging from the performance of the passenger car market in the first half of the year consumer demand has been

suppressed to a certain extent due to the pandemic. Since the end of May the state and local governments have

successively issued a series of powerful policies to stimulate consumption providing obvious supports for the rapid

recovery and improvement of consumer confidence.

3. New energy vehicle market

From January to June 2022 produced 2.661 million new energy vehicles and sold 2.6 million new energy vehicles

both a year-on-year increase of 1.2 times and a market share of 21.6%. Among them the sales of new energy

passenger vehicles accounted for 24.0% of the total sales of passenger vehicles and the proportion of new energy

vehicles in Chinese brand passenger vehicles has reached 39.8%.

4. Off road market

In the first half of 2022 the market demand for construction machinery and agricultural machinery will decrease

due to the slowdown of macroeconomic growth repeated COVID-19 insufficient effective commencement rate of

projects adjustment of agricultural machinery subsidy policies and other factors. From January to June 2022 the

9sales volume of diesel internal combustion engines for construction machinery was 450000 a year-on-year decrease

of 23.8%; The sales volume of diesel internal combustion engines for agricultural machinery was 650000 a year-

on-year decrease of 24.8%.(Note: the above industry data are from CAAM and CICEIA.)

(4) Business of the Company in reporting period

Since this year facing the rigorous macroeconomic and downward pressure of the auto industry the Company has

implemented the annual work targets conscientiously we achieved a performance better than the industry standard

by actively carried out various measures to cope with the challenges. During the reporting period operation revenue

from the Company was 7.322 billion yuan down 18.99% from the same period of last year; the net profit attributable

to shareholder of listed company amounted to 1.233 billion yuan 25.08% drop from the same period of previous

year.Main work carried out by the company during the reporting period:

1. Improved marketing management and accelerated market expansion. Exhaust gas treatment system: steadily

expanded the hybrid market and key platform projects had a high acquisition rate. Air management system: air

intake products have entered the supply system of many new customers and gradually acquired projects; gasoline

superchargers achieved mass production and the sales had a rapid growth. Diesel fuel injection system: the T4 Off-

road market of dispensing pump expanded vigorously with a high coverage rate of major customers and projects.seized the export order market mechanical products grew rapidly and Inline pump exports far exceeded

expectations. New business products: continued to expand the leading enterprise customers of the electric drive

parts business; accelerated the hydrogen fuel cell business and newly acquired a number of domestic and foreign

customer projects such as "one membrane and two plates" hydrogen circulating pumps and valve BOP products;

promoted 3D radar mass production projects in an orderly manner and focused on expanding 4D radar customer

projects; reached cooperation intentions with some customers in wheel motor business.

2.Strengthened technological innovation and promoted new product research and development. Diesel fuel injection

system: dual-fuel direct injection products jointly developed localization projects with customers and completed

the first round of customer engine performance tests; developed platform projects such as methanol pumps and

methanol injectors; carried out research on hydrogen internal combustion engine injection and other projects.Exhaust gas treatment system: in terms of passenger vehicles completed the development of the light-duty diesel

vehicle purifier platform stage has been and the batch production of key projects of several key customers has been

completed; in terms of commercial vehicles completed the development and production conversion of a number of

National VI platforms and customer projects; for non-road completed the announcement certification of customers

and the development of key projects for many customers. Air intake system: National VI diesel engine and natural

gas projects were progressing in an orderly manner; the gasoline supercharger products achieved SOPs for several

projects and successfully obtained the hybrid projects of major customers; the 48V electric supercharger completed

the A sample review. At the same time key R&D projects such as hydrogen fuel cells and intelligent network

connections were progressing steadily as planned.

3. Optimized strategic planning and promoted investment cooperation. Optimized the company's new strategic

blueprint and formed a new strategic pattern for the comprehensive development of the four major sectors of

10"energy saving and emission reduction" "green hydrogen energy" "smart electric" and "other core components";

completed the global capacity planning and production capacity investment planning of hydrogen fuel cells

formulated strategic development planning for PEM water electrolysis hydrogen production system equipment and

carried out new energy industrial park project planning. Completed the strategic business product planning for the

electric drive core parts business thermal management system and core parts business and continued to optimize

the development planning for the millimeter-wave radar business. Comprehensively promoted global capacity

building investment in hydrogen energy business completed investment in R&D and capacity expansion of IRD

and Borit; successively established hydrogen energy divisions and hydrogen fuel cell joint ventures and accelerated

capacity building in the Asia-Pacific region; implemented thermal management system and parts business

investment cooperation and VH M&A projects were progressing in an orderly manner; participated in the

investment of industrial funds related to automobiles and sought cooperation opportunities in the upstream and

downstream industry chains. In the fields of water electrolysis for hydrogen production from renewable energy

sources intelligent network connection and other fields we investigated potential cooperation projects and actively

planned for cooperation possibilities.

4.Strengthened quality management and promoted information construction. Deepened the effective

implementation of Q11 on site built a Q11 training base; established development quality management capabilities

improved the identification of quality valves for software evaluation needs introduced positive development quality

tools improved software FMEA and special feature management maturity; created a special follow-up re-

examinations mechanism for quality improvement; organized the product review of 17 types of core products;

promoted the launch of the measuring instrument management system in the business department and unified and

standardized the management requirements for measuring instruments. The project management system was

released to promote the point-to-point connection of the whole process of engineering projects; the construction of

R&D building new energy industry bases and other projects were steadily advanced. The SAP S4 HANA upgrade

project was officially launched realizing the upgrade of application version and the migration of historical data and

optimizing the system capabilities; the process management system project was launched realizing the systematic

application of products from design to process management and standardizing the management process of process

data.; the IT service platform has been operating online.

5. Promoted management upgrade and improved operating efficiency. Completed the performance review and

signing of the company’s organization at all levels cooperated with the budget management to complete the

business plan and budget succession and formed an optimization plan; promoted the inspection tracking and

correction of business monitoring analysis and performance of the business department. Optimized the

procurement system improved the procurement system documents upgraded the supplier classification and refined

the supplier performance management plan so as to ensure the continuous and efficient operation of the

procurement business. Strengthened the management of inventory and slow-moving materials strictly reviewed the

production scheduling plan of slow-moving products and conducted regular inspections. Continued to promote the

operation of the company's risk control compliance internal audit trinity and three risk prevention and control

management mechanisms. Strengthened the introduction of talents related to strategic new businesses andoptimized the allocation of talent teams; multi-dimensionally promoted the "San Hang Yi Jiang” talent capacity

11development project continued to carry out school-enterprise cooperation and strengthened the training of

industrial workers.II. Core Competitiveness Analysis

1. Industry and brand advantages. The company was established in 1958 after more than 60 years of development

it has become a famous manufacturer of auto parts at home and has established long-term and stable cooperative

relations with major domestic main engine factories and vehicle manufacturers the existing automobile core

components main products (including diesel fuel injection system exhaust gas treatment system air management

system) have strong market competitiveness and higher market share. The company is a pacesetter enterprise in

China's internal combustion engine industry and ranks in the top 30 enterprises in China’s auto parts industry.

2. Technology and product advantages. The Company is a national high-tech enterprise. It has scientific research

platforms such as "National Enterprise Technology Center" "National High-tech Research and Development Plan

Achievement Industrialization Base" "Post-Doctoral Scientific Research Workstation" "Jiangsu Postgraduate

Workstation" and number of provincial-level engineering and technological research centers provincial-level

engineering laboratories and other research and development institutions mainly focus on fuel injection systems

exhaust gas treatment systems and air management systems to conduct technical research and product development.The Company has mastered a number of core patented technologies the main product technical indicators are at the

leading level in the industry. In recent years the Company focuses on the strategic layout in the fields of green

hydrogen and smart electric established a new energy and network technology research institute built a hydrogen

energy fuel cell test center and formed technical research and development capabilities of hydrogen fuel cell core

components and intelligent network vehicle products.

3.Management and manufacturing advantages. The Company has a complete organizational structure and

management systems process and has built a financial sharing platforms which can realize the effective migration

and stable operation of organization & personnel business & accounting; The established human resources

information system platforms can ensure the timely and accurate standardization of organization personnel salary

and attendance; built a purchase sharing system opened up the information interconnection of enterprises and

suppliers and achieved the closed-loop management of the procurement process; carried out the Weifu Production

System (WPS) with lean philosophy established the quality management system with the whole process and has

strong capabilities in production and manufacturing quality assurance cost control and product delivery.The

Company focuses on intelligent manufacturing continues to build intelligent factories with Weifu characteristics

and promotes the application of cloud computing and 5G networks which can strongly support the Company’s

future business development.

4. Advantages in marketing and service. The Company has a stable professional and experienced marketing team

that can provide targeted support and services according to customer needs and customer relationships are

harmonious. For long-term strategic customers the company has established a four-in-one marketing collaboration

organization composed of leaders key account managers marketing departments and business departments. The

Company’s management exchanges regular visits to promote exchanges and cooperation.The Company has a

relatively perfect after-sales service system has built after-sales service network and intelligent service platform

12established special maintenance technology service stations nationwide to regularly provide end users with the

training of operation and maintenance fault analysis and judgment and provide customers with fast timely and

professional comprehensive after-sales services.

5.Talent team advantage. The Company's management team has extensive experience and a good industry

reputation in the Automobile components industry. The Company pays attention to the growth of employees and

the construction of a core talent team. After years of accumulation it has accumulated a group of professional and

high-quality management and technical personnel established a reasonable talent echelon and provided strong

manpower resource guarantee for the Company's long-term and stable development. The Company's human

resource management system is relatively complete continuously optimizing various human resource management

systems to provide a fair value realization platform for employees' career development. The Company pays attention

to the service and care of employees improves the service experience of employees through the establishment of

employee self-service platformand creates a working environment with warmth and sense of belonging.

6. Advantages of international cooperation. The Company is committed to the core auto parts industry and has

continued to carry out in-depth cooperation with domestic and foreign strategic partners for a long time. The

Company began to cooperate with the industry giant Robert Bosch Company in 1984 established a long-term and

stable cooperative relationship and continued to expand cooperation in new business areas the cooperation model

between the two parties has become a model in the industry. At the same time the Company has established joint

ventures with Autocam Corporation of the United States and Schmidt Corporation of Germany and has cooperated

closely in the field of high-end precision manufacturing. Through long-term cooperation with well-known European

and American enterprises the Company has cultivated a group of middle and senior management and technical

personnel who have international communication skills international vision and familiarity with international

standards and have mastered the international advanced R&D process design quality control and production

management capabilities which accelerated the sound development of the Company's business and promoted the

development in international business and market.

7. Excellent corporate culture. The Company takes “quality and intelligence driving a better life”as a mission and

"100-year Weifu auto core parts industry expert" as a vision fulfills the core value of "focus innovation

responsibility integration" insists on the enterprise spirit of "doing practical things daring to act being good at

cooperation bravely contending for the first". Created a cultural system of "quality and intelligence" "quality" and

"intelligence" is the Company's cultural double engine reflecting the persistence of the original aspiration and the

pursuit of the future. The excellent corporate culture makes a sustainable operation for the Company provides strong

support for the Company to become a trustworthy and respected industrial experts and plays a positive role in

achieving the Company's strategic objectives.III. Main business analysis

Overview

See the “I. Main businesses of the company in the reporting period”

Change of main financial data on a y-o-y basis

Unit: RMB/CNY

13Same period of last y-o-y changes

Current period Reasons

year (+-)

Operation revenue 7321835360.98 9037691756.24 -18.99%

Operation cost 6024571742.71 7497917157.07 -19.65%

Sales expenses 79020592.43 111193615.56 -28.93%

Administrative expenses 277212254.79 266226378.32 4.13%

Financial cost 29774064.57 15935073.06 86.85% Increase in borrowings

Income tax expense 100553787.21 117972661.22 -14.77%

R&D investment 289631376.50 249583255.99 16.05%

the purchase volume increase

Net cash flow arising from

-2493982044.89 80191609.17 -3210.03% due to the development of

operation activities

platform trade business

Net cash flow arising from Increase in cash flow due to

1556579998.88951130720.4963.66%

investment activities the maturity of financial

Net cash flow arising from

1338690663.84 -496851948.29 369.43% Increase in borrowings

financing activities

Net increase of cash and cash

396766366.07531062209.58-25.29%

equivalent

Major changes on profit composition or profit resources in reporting period

√Applicable □Not applicable

During the reporting period WFTR a wholly-owned subsidiary of the company actively expanded the platform trade business and

achieved good results.Constitution of operation revenue

Unit: RMB/CNY

Current period Same period of lat year Increase/d

ecrease y-

Ratio in operation Ratio in operation

Amount Amount o-y(+-)

revenue revenue

Total operation revenue 7321835360.98 100% 9037691756.24 100% -18.99%

According to industries

Automobile components 6928141770.13 94.63% 8767778890.21 97.01% -20.98%

Platform trading business 184662503.01 2.52% -- -- --

Other business 209031087.84 2.85% 269912866.03 2.99% -22.56%

According to products

Fuel injection system 3439477050.57 46.98% 3998550461.69 44.24% -13.98%

Exhaust Gas Treatment

3228708237.8544.10%4379307721.3648.46%-26.27%

System

Air management system 259956481.71 3.55% 389920707.16 4.31% -33.33%

Platform trading business 184662503.01 2.52% -- -- --

Other business 209031087.84 2.85% 269912866.03 2.99% -22.56%

According to region

Domestic 7056320042.47 96.37% 8782591522.28 97.18% -19.66%

Foreign 265515318.51 3.63% 255100233.96 2.82% 4.08%

The industries products or regions accounting for over 10% of the company’s operating revenue or operating profit

□Applicable □Not applicable

14Unit: RMB/CNY

Increase/d

Increase/decre Increase/dec

ecrease of

Gross ase of rease of

Operation revenue Operation cost gross

profit ratio operation operation

profit ratio

revenue y-o-y cost y-o-y

y-o-y

According to industries

Automobile components 6928141770.13 5858547460.17 15.44% -20.98% -19.35% -1.71%

Platform trading business 184662503.01 -- 100.00% -- -- --

According to products

Fuel injection system 3439477050.57 2715439179.66 21.05% -13.98% -11.13% -2.53%

Exhaust Gas Treatment

3228708237.852940323990.548.93%-26.27%-25.54%-0.90%

System

Air management system 259956481.71 202784289.97 21.99% -33.33% -21.99% -11.35%

Platform trading business 184662503.01 -- 100.00% -- -- --

According to region

Domestic 6847288954.63 5606995023.25 18.11% -19.56% -20.09% 0.53%

Foreign 265515318.51 251552436.92 5.26% 4.08% 1.47% 2.44%

Under circumstances of adjustment in reporting period for statistic scope of main business data adjusted main business based on latest

one year’s scope of period-end

□Applicable□Not applicable

Reasons for y-o-y relevant data with over 30% changes

□Applicable □Not applicable

1. During the reporting period affected by the macroeconomic situation and the downturn of the automobile industry the sales of six

cylinder superchargers and natural gas superchargers in the intake system products decreased significantly compared with the same

period last year.

2. During the reporting period WFTR a wholly-owned subsidiary of the company actively expanded the platform trade business and

achieved good results.IV. Analysis of non-main business

□Applicable □Not applicable

Unit: RMB/CNY

Ratio in total

Amount Note Whether be sustainable (Y/N)

profit

Y (The Company’s joint

ventures RBCD and Zhonglian

Mainly from the joint ventures

Investment income 928792343.97 67.75% Electronics have stable

RBCD and Zhonglian Electronics

production and operation both

on a sustained basis)

Mainly refers to the changes in the

Gain/loss of fair

-74432928.14 -5.43% fair value of the shares of listed

value changes

companies held by the company

Mainly due to inventory

Asset impairment -104219783.98 -7.60%

depreciation loss

Non-operating

218285.290.02%

income

Non-operating

2196565.870.16%

expense

15V. Assets and liability

1. Major changes of assets composition

Unit: RMB/CNY

End of the current period End of last year

Ratio

Notes of major changes

Ratio in Ratio in changes(+-)

Amount Amount

total assets total assets

Monetary fund 2357955196.57 7.51% 1896063265.69 6.78% 0.73%

Account Mainly the increase of

4545410759.8814.47%2053800293.777.34%7.13%

receivable platform trade business

Consumption of

Inventory 2167754348.61 6.90% 3445396375.09 12.32% -5.42% inventory and decrease

of finished products

Investment real

18653199.320.06%19387746.560.07%-0.01%

estate

Long-term

equity 5582235398.43 17.78% 5717944788.12 20.44% -2.66%

investment

Fix assets 2954329704.27 9.41% 2932210452.51 10.48% -1.07%

Construction in Increase in fixed assets

500684157.531.59%387429933.081.39%0.20%

progress investment

Right-of-use

28757850.600.09%23148405.580.08%0.01%

assets

Increased borrowings

Short-term

4187682800.94 13.34% 1437958206.55 5.14% 8.20% for platform trade

loans

business

Due settlement of

Contractual

93104665.28 0.30% 136427636.39 0.49% -0.19% contract liability

liability

business

Long-term Financing structure

200000000.000.64%0.00%0.64%

loans adjustment

Lease of new plant and

Lease liability 21504518.33 0.07% 15795469.25 0.06% 0.01%

equipment

2. Major foreign assets

□Applicable □Not applicable

Foreign

Whether

Earn assets as a

there is a

Formation Assets Controls to safeguard the ings percentag

Assets Location Operation model significant

reasons size security of assets statu e of the

risk of

s Company’

impairment

s assets

The wholly-

The Company will pay full

owned subsidiary

attention to the changes in

Enterprise of the Company

IRD industry and market strengthen

combined RMB development

Fuel the corporate governance

under the 500.119 Denmark production and N/A 2.64% N

Cells personnel management

different million sales of the

A/S financial management auditing

control component

supervision and performance

products of fuel

assessment

cell

The wholly- The Company will pay full

owned subsidiary attention to the changes in

Enterprise

of the Company industry and market strengthen

combined RMB13

Borit production and the corporate governance

under the 2.6833 Belgium N/A 0.70% N

NV sales of the personnel management

different million

component financial management auditing

control

products of fuel supervision and performance

cell assessment

163. Assets and liability measured by fair value

□Applicable □Not applicable

Unit: RMB/CNY

Deva

Accum

luati Amo

ulative

on of unt

Changes of fair change

with Amount of of

Amount at the value s of fair Other changes Amount at

Items draw purchase in the sale

beginning period gains/losses in value (+-) period-end

ing period in the

this period reckone

in the perio

d into

perio d

equity

Financial assets

1.Trading

financial

asset(excluding 7692496307.12 -74432928.14 4467213265.48 -6519715515.15 5565561129.31

derivative

financial assets)

2.Other equity

instrument 285048000.00 392742690.00 0.00 677790690.00

investment

3. Account

receivable 713017014.50 162560570.30 875577584.80

financing

4. Forex contracts 74734940.30 212552603.87 -265068221.00 22219323.17

Subtotal of

8765296261.92-74432928.145072508559.35-6622223165.857141148727.28

financial assets

Above total 8765296261.92 -74432928.14 5072508559.35 -6622223165.85 7141148727.28

Financial

0.000.00

liabilities

Other changes refers tot he redemption at maturity

Whether there have major changes on measurement attributes for main assets of the Company in report period or not

□Yes □No

4. The assets rights restricted till end of the period

Unit: RMB/CNY

Book value at

Item Restriction reason

period-end

Monetary fund 41882720.34 Cash deposit paid for bank acceptance

Monetary fund 188440.00 Cash deposit for Mastercard

Monetary fund 4185316.40 Court freeze

Note receivable 335966479.97 Notes pledge for bank acceptance

Account

receivable 142178619.60 Notes pledge for bank acceptance

financing

In accordance with the civil ruling No.(2016)Y03MC2490 and No.(2016) Y03MC2492 of

Guangdong Shenzhen Intermediate People's Court (Hereinafter referred to as Shenzhen

Intermediate People's Court) the property with the value of 217 million Yuan under the

Trading financial

188795623.32 name of the Company and other seven respondents and the third party Shenzhen Hejun

asset

Chuangye Holdings Co. Ltd. (Hereinafter referred to as Hejun Company) was frozen. As

of the end of the reporting period 4.71 million shares of Miracle Automation and

11739102 shares of SNAT held by the Company were frozen.

Total 713197199.63 --

17VI. Investment analysis

1. Overall situation

□Applicable□Not applicable

2. The major equity investment obtained in the reporting period

□Applicable□Not applicable

3. The major non-equity investment doing in the reporting period

□Applicable□Not applicable

4. Financial assets investment

(1) Securities investment

□Applicable □Not applicable

Unit: RMB/CNY

Cum

Acc ulati

C urr

Shor ount ve

Vari od en

t ing Book value fair Acc

ety e Current t Profit and loss Capit

form Initial mea at the valu Current ount

of of gain/loss of sal in the Book value at al

of investment sure beginning e purchase ing

secu se fair value es Reporting period-end Sour

secu cost men of the chan amount subj

ritie cu changes a Period ce

ritie t period ges ect

s riti m

s mod in

es ou

el equi

mest Mea

Trad

ic sure

60 - ing

and SN 199208000 d by 15364330 - 112472616.0 Own

08 41170692.0 fina

forei AT .00 fair 8.00 41170692.00 0 funds

41 0 ncial

gn valu

asset

stoc e

mest Mea

Mira Trad

ic sure

00 cle - ing

and 69331500. d by 11379360 - Own

20 Aut 26658600.0 87135000.00 fina

forei 00 fair 0.00 26658600.00 funds

09 oma 0 ncial

gn valu

tion asset

stoc e

mest Mea

Guo Trad

ic sure

60 lian ing

and 12000000. d by 20879517 198981411.0 Own

14 Secu -9813767.00 -9813767.00 fina

forei 00 fair 8.00 0 funds

56 ritie ncial

gn valu

s asset

stoc e

mest Mea

Lifa Trad

ic sure

60 n ing

and d by Own

17 Tech 62845.00 77802.11 -8044.16 -8044.16 69757.95 fina

forei fair funds

77 nolo ncial

gn valu

gy asset

stoc e

18Do

mest Mea

Trad

ic sure

00 ST ing

and d by 613265.4 Own

09 Zoty 613265.48 -72776.52 -72776.52 540488.96 fina

forei fair 8 funds

80 e ncial

gn valu

asset

stoc e

28121561047630988613265.40.-3991992739

Total -- 77723879.6 0.00 -- --.488.1180077723879.681

Disclosure date of securities investment 2012-03-24

approval of the Board 2013-06-04

Disclosure date of securities investment

approval of General Meeting(if

applicable)

Note: 1) SNAT is formerly known as SDEC which has a name changed during the reporting period;

2) ST Zotye is resulted by the transfer of receivables to shares from WFLD.

(2) Derivative investment

□Applicable□Not applicable

There are no derivative investment during the reporting period.

5. Application of raised proceeds

□Applicable□Not applicable

There are no application of raised proceeds during the reporting period.VII. Sales of major assets and equity

1.Sales of major assets

□Applicable□Not applicable

No major assets were sold during the reporting period.

2. Sales of major equity

□Applicable□Not applicable

No major equity were sold during the reporting period.VIII. Analysis of the main equity participation and controlling subsidiary

□Applicable □Not applicable

Main subsidiary and stock-jointly enterprise with over 10% influence on net profit of the Company

Unit: RMB/CNY

Compa

Main

ny Type Register capital Total assets Net assets Operation income Operation profit Net profit

business

name

Exhaust

gas

Subsidi

WFLD treatment 502596300.00 6271286452.43 2420109469.19 3287233284.58 148289843.47 138297551.67

ary

system

products

Fuel

Subsidi

WFJN injection 346286825.80 1472348435.92 1102536370.45 447804363.41 72979744.63 65145897.60

ary

system

19products

Equity

Fuel

particip

injection USD 1687151931.0

RBCD ation 17986727113.38 8589683121.91 8322989203.32 1900166894.31

system 382500000.00 1

enterpr

products

ise

Equity

Zhongl

particip Gasoline

ian

ation system 600620000.00 7732113510.27 6755050308.74 9460906.82 843080505.79 841207709.66

Electro

enterpr products

nics

ise

Subsidiary obtained and disposed in the Period

□Applicable □Not applicable

Mode of acquisition and disposal

Name Impact on overall operation and business performance

during the reporting period

The enterprise mainly engaged in the R&D production and sale of the

Wuxi Weifu Qinglong core component products related with hydrogen fuel cell. Establishment

Investment set-up

Power Technology Co. Ltd. of the subsidiary had no major impact on the overall operation and

business performance of the Company during the reporting period.Explanation on holding equity participation enterprise

Affected by the macroeconomic and downward of the auto industry the operation income and net profit from WFLD WFJN RBCD

and Zhonglian Electronics have a y-o-y decline in various degrees.IX. The structured subject controlled by the Company

□Applicable□Not applicable

X. Risks and countermeasures

1. Macro economy and market risks

Suffered by the COVID-19 epidemic the macro economy and market environment are still complicated and severe and the industry

will still face greater pressure. If industry demand declines it will have a certain impact on the company's production and operation

and profitability.Countermeasures: The company will always pay attention to macroeconomic and industry development trends consolidate its current

business market position actively expand new businesses and strive to improve the company's core competitiveness and overall risk

resistance.

2. Operating management and control risks

As the company’s business scope continues to expand especially in the new energy field the management span is rather large and

there are potential operating management and investment risks.The external environment was affected by the epidemic the varying

affected degree of customers and sales declines restrictions on logistics and transportation areas delayed payment by some customers

and increased pressure on fund operation quality and repayment has brought certain risks to the company’s business.Countermeasures: the company will continue to promote the optimization and improvement of internal management perfect the

procedures further manage standardization and control the management risks; focus on the impact of market dynamics on the Company;

continue to develop strategy customers and gradually strengthen the new business market connection and new new products promotion.

3.The risks of fluctuations in raw material prices

The company's main raw materials include various grades of steel aluminum precious metals etc. the continuous rise in prices will

bring the risks of rising costs to the company.Countermeasures: the company will actively improve market forecasting ability plan for production capacity in advance reasonably

control raw material inventory to reduce the risk of raw material price fluctuations. At the same time it will continue to optimize supply

chain management strengthen the vertical integration capability of the industrial chain and transfer some risks through cost control

20measures and product price adjustments to reduce the impact of raw material price fluctuations on performance.

4. Risks associated with financial instruments

The company's main financial instruments include monetary funds structured deposits receivables equity instrument investments

wealth management products loans payable etc. In the operation process the risksrelated to financial instruments faced by the

company mainly include credit risk market risk and liquidity risk.Countermeasures: confirm and analyze the various risks faced by the Company establish an appropriate risk tolerance bottom line

and carry out risk management and timely monitor various risks to ensure that the risks are controlled within a limited range and the

negative impact of the risks on the company’s operating performance is reduced to the minimum level to maximize the interests of

shareholders and other investors.

21无锡威孚高科技集团股份有限公司2022年半年度报告全文

Section IV. Corporate Governance

I. AGM and extraordinary general meeting

1. AGM held in the period

Participation ratio

Meeting Type Holding date Disclosure date Resolutions

for investors

Annual General Notice No.: 2022-036 released on

AGM 40.82% 2022-05-18 2022-05-19

Meeting of 2021 Juchao Website (www.cninfo.com.cn)

2. Request for extraordinary general meeting by preferred stockholders with rights to vote

□Applicable□Not applicable

II. Changes of directors supervisors and senior executives

□Applicable□Not applicable

There were no changes in the directors supervisors and senior executives during the reporting period found more in the Annual

Report 2021.III. Profit distribution plan and capitalizing of common reserves in the period

□Applicable□Not applicable

There are no cash dividend bonus and capitalizing of common reserves carried out in the semi-annual

IV. Implementation of the stock incentive plans employee stock ownership plans or other

employee incentives

□Applicable □Not applicable

1. Stock incentive

On October 12 2020 the Company held the 17th session of the 9thBoard of Directors to deliberated and approved

relevant proposal as the "Restricted Stock Incentive Plan 2020 (Draft)".On November 3 2020 the Company held the second extraordinary shareholders’ general meeting of 2020 to

deliberated and approved relevant proposals as the "Restricted Stock Incentive Plan 2020 (Draft) and its summary"

"Proposal on Assessment Management Measures for Restricted Stock Incentive Plan Implementation" and

"Proposal to Request the Shareholders’ General Meeting to Authorized BOD to Fully Handle Matters Regarding

Stock Incentive"

On November 12 2020 the Company held the 21st session of 9th BOD as authorized by the second extraordinary

shareholders’ general meeting of 2020 deliberated and approved the "Proposal on Adjusting the List of Incentive

Objects of the Restricted Stock Incentive Plan and the Number of Rights Granted" and the "Proposal on the First

22无锡威孚高科技集团股份有限公司2022年半年度报告全文

Grant of Restricted Stocks to Incentive Objects of the 2020 Restricted Stock Incentive Plan". The BOD considers

that conditions for the initial grant of 2020 restricted stock incentive plan have been met and November 12 2020

is determine as the initial grant date 19540000 restricted shares are granted to 601 incentive recipients at a grant

price of 15.48 yuan/Share.The Notice on Completion of the First Grant of 2020 Restricted Stock Incentive Plan was released by the Company

dated December 8 2020.On October 22 2021 the Company held the 5th session of 10th BOD to deliberated and approved relevant proposals

as Adjustment of the Buy-back Price on Restricted Stock Incentive Plan for year of 2020 and Buy-back and

Cancellation of the Restricted Stocks Partially Granted without Circulation for year of 2020 and decided to buy-

back and cancel 291000 restricted shares held by 11 incentive recipients that had been granted but not yet unlocked.As of December 20 2021 cancellation of the above mentioned buy-back shares are completed at the Shenzhen

Branch of CSDC. After cancellation number of the incentive recipients for the first grant of 2020 restricted stock

incentive plan was adjusted from 601 to 590 restricted stock of 19249000 shares are being held in total.

2. Implementation of employee stock ownership plan

□Applicable□Not applicable

3. Other employee incentives

□Applicable□Not applicable

23无锡威孚高科技集团股份有限公司2022年半年度报告全文

Section V. Environmental and Social Responsibility

I. Important environmental issues

The listed Company and its subsidiary whether belong to the key sewage units released from environmental protection department:

□Yes □No

Main Pollutant

mb Distributi Exce

pollutants emission

Company/ Emission er on of Emission Total emission ssive

and standards Total emissions

Subsidiary mode of emission concentration approved emis

featured implemente

outf outlets sion

pollutant d

alls

COD 75mg/l

ammonia

nitrogen

15.5mg/l total

Chemical

phosphorus

oxygen Discharged

0.1mg/l total Wastewater COD 7.34 tons

demand(C to the COD 78 tons

nitrogen16.6mg/ quality ammonia

OD) municipal ammonia nitrogen

l petroleum standards nitrogen 1.52

ammonia sewage pipe 7.8 tons total

WFMS’s 0.8mg/l for tons total

nitrogen network after phosphorus 0.52

1 sewage COD 75mg/l discharge to phosphorus 0.01 N/A

total treatment by tons total

outlets ammonia municipal tons total

nitrogen sewage nitrogen10.4 tons

nitrogen sewers nitrogen1.62

total treatment petroleum 1.95

15.5mg/l total (GB/T3196 tons petroleum

nitrogen station of the tons

phosphorus 2-2015) 0.08 tons

and Company

0.1mg/l total

petroleum

nitrogen

16.6mg/l

petroleum

0.8mg/l

COD

Discharged COD 150mg/l

Wastewater 1.201tons COD ≤8.924tons

to the ammonia

COD quality ammonia ammonia nitrogen

municipal nitrogen

ammonia standards nitrogen ≤0.682tons total

sewage pipe 32.2mg/l total

nitrogen WFAC’s for 0.258tons total nitrogen≤1.017ton

network after nitrogen 40.2m

WFHT petroleum 1 sewage discharge to nitrogen 0.322 s total N/A treatment by g/l total

total outlets municipal tons total phosphorus

sewage phosphorus

nitrogen sewers phosphorus ≤0.094tons

treatment 3.41mg/l

petroleum (GB/T3196 0.027 tons petroleum ≤0.410

station of the petroleum

2-2015) petroleum tons

Company 1.84mg/l

0.015tons

5 in

machine

Organized workshop Integrated

emission of s 10 in Emission

waste gas heat Standard of

NMTHC after HCY- 19 treatment 1.5mg/l Air 1.16 tons 2.523 tons N/A

W + active workshop pollutants

carbon s and 4 in (GB16297-

adsorption assembly 1996)

workshop

Organized Integrated

emission of Emission

waste gas Standard of

4 in 101

NMTHC after HCY- 4 1.94mg/l Air 0.27864 tons 1.152 tons N/A

workshop

W + active pollutants

carbon (GB16297-

adsorption 1996)

24无锡威孚高科技集团股份有限公司2022年半年度报告全文

Organized Emission

emission of 1 in heat Standards

ammonia treatment Ammonia 0.7 for Odor Ammonia Ammonia

Ammonia 1 N/A

after spray workshop mg/l Pollutants 0.0117 tons 0.071tons

tower s (GB14554-

adsorption 93)

Integrated

Organized Emission

2 in heat

emission of Standard of

Particulate treatment

particulates 2 2mg/m3 Air 0.0027 tons 0.048 tons N/A

s workshop

after fabric pollutants

filter (GB16297-

1996)

Hazardous

wasters as

waste oil

waste

emulsion

cleaning

fluid Entrusted

grinding with the Not

wheel ash legally app Not Not

Not applicable 436.539 tons 946.2 tons N/A

sewage qualified lica applicable applicable

pre- units for ble

treatment disposal

sludge

oil-

containing

cartridge

and the

rest

COD

Discharged COD 41mg/L

COD Wastewater 1.7737tons COD 35.018

to the suspensions

ammonia quality suspensions tons suspensions

municipal 11mg/L

nitrogen standards 0.4759 tons 26.263 tons

sewage pipe ammonia

total for ammonia ammonia nitrogen

network after Sewage nitrogen

WFCA phosphoru 1 discharge to nitrogen 0.0121 2.626 tons total N/A

treatment by outlets 0.28mg/L total

s total municipal tons total phosphorus 0.438

sewage phosphorus

nitrogen sewers phosphorus tons total

treatment 0.055mg/L

suspension (GB/T3196 0.0024 tons nitrogen3.502

station of the total nitrogen

s 2-2015) total nitrogen tons

Company 5.01mg/L

0.2167 tons

Discharged

Wastewater

to the

quality

municipal

standards

sewage pipe COD 100mg/L

COD for COD 5 tons

network after Sewage ammonia

ammonia 1 discharge to ammonia Not applicable N/A

treatment by outlets nitrogen

nitrogen municipal nitrogen 1 tons

sewage 20mg/L

sewers

treatment

(GB/T3196

station of the

2-2015)

Company

Hazardous

wasters as

WFJN

waste oil

oily

sludge Entrusted

grinding with the Not

wheel ash legally app Not Not

Not applicable 145.71 tons Not applicable N/A

empty qualified lica applicable applicable

barrels units for ble

activated disposal

carbon

filter and

the rest

25无锡威孚高科技集团股份有限公司2022年半年度报告全文

Construction and operation of pollution prevention facilities

(i) Improve environmental protection system and enhance environmental protection management

Each company has set up a special environmental protection department to carry out the company's environmental protection work

hired professional environmental protection management personnel established an environmental protection management system and

related systems carried out environmental protection management knowledge training arranged special personnel to operate and

maintain environmental protection treatment facilities and continuously improved the company's environmental protection

management performance.(ii) Comply with environmental laws regulations and rules

Each company strictly abides by the Environmental Protection Law of the People's Republic of China the Water Pollution Prevention

and Control Law of the People's Republic of China the Air Pollution Prevention and Control Law of the People's Republic of China

the Law on the Prevention and Control of Environmental Pollution by Solid Wastes of the People's Republic of China and the

Environmental Noise Pollution Prevention and Control Law of the People's Republic of China and other laws and regulations at the

same time the company has formulated a series of internal rules and regulations such as Environmental Protection Management

System Wastewater Discharge Management Measures Exhaust Emissions Management Measures Solid Wastes Management

Measures Environmental Noise Management Measures and Contingency Plan for Environmental Emergencies and earnestly fulfills

the responsibilities of protecting the environment.(iii) Strengthen the management of pollutant emissions

1．Carry out environmental monitoring and strengthen pollution discharge monitoring

Each company has installed online monitoring equipment for major pollutants and completed networking in accordance with the

requirements of the environmental protection department to realize real-time monitoring of the concentration of major pollutants at

the same time entrusted a qualified environmental testing unit to carry out regular environmental monitoring on the discharge of waste

water waste gas and environmental noise so as to further grasp the comprehensive discharge of pollutants.Environmental monitoring to further grasp the overall discharge of pollutants.

2. Implement manufacturing process upgrades to reduce pollution reduce consumption and increase efficiency

The company uses low-volatile VOC raw and auxiliary materials process substitution to reduce pollutant emissions at the source;

increases investment in reuse equipment such as reclaimed water reuse and reduces pollutant emissions at the end.

3.Improve the operation and maintenance level of environmental protection facilities to ensure that pollutants are discharged up to

standard.The company continues to increase investment in environmental protection continuously upgrades and transforms waste water waste

gas and other environmental protection treatment facilities; formulates and revises operational documents such as environmental

protection management operation instructions further standardizes the management of environmental protection facilities carries out

daily spot inspections workshop inspections and random checks to supervise and guarantee the effective operation of the treatment

facilities so as to ensure that all kinds of pollutants are discharged up to the standard.Environmental impact assessment of construction projects and other administrative licenses for environmental protection

All companies strictly abide by the Environmental Impact Assessment Law of the People's Republic of China Regulations Concerning

the Environmental Protection Management and other laws and regulations at all stages of project construction and operation to ensure

that the environmental protection facilities of the construction project and the main body of the project are designed constructed and

put into production at the same time. During the reporting period all construction projects were approved by the competent

environmental protection department. During the reporting period all projects passed the environmental protection acceptance

inspection by the competent environmental protection department before they were put into production.Contingency plan for environmental emergencies

Each company prepares or revises the Contingency Plan for Environmental Emergencies in a timely manner in accordance with the

relevant requirements of the contingency plans for environmental emergencies of enterprises and institutions and files them with the

26无锡威孚高科技集团股份有限公司2022年半年度报告全文

local environmental protection authority. Each company prepares an annual emergency plan drill plan and organizes drills on a regular

basis to ensure effective control of emergencies and reduce harm to the environment.Environmental self-monitoring program

Each company regularly entrusts third-party monitoring agencies to carry out environmental monitoring of pollutants such as waste

gas waste water and noise as required so as to keep abreast of pollutant emissions in a timely manner.Administrative penalties for environmental issues during the reporting period

Other environmental information that should be disclosed

Regularly carry out internal and external audits of the environmental management system and continuously improve the environmental

management level through self-examination and external supervision to ensure the company's legal and compliant pollution discharge

and the effective operation of the environmental management system.Measures taken to reduce carbon emissions during the reporting period and their effects

□Applicable □Not applicable

As an important part of the company’s core value saving resources and reducing consumption on the one hand are conducive to the

improvement of enterprise efficiency and at the same time are also conducive to the improvement of resource utilization rate of the

whole society. Therefore the company continuously improves resource utilization rate through technological innovation vigorously

promotes energy conservation and emission reduction and strives to achieve green production.The company’s existing main business is based on the energy saving and emission reduction of automobiles. At present the company’s

main products have all met the requirements of national emission regulations and we are actively stocking products that meet more

stringent emission regulations. In recent years the company has accelerated the layout and development of new energy businesses such

as green hydrogen energy and intelligent electric power which helps achieve the goals of peak carbon dioxide emissions and carbon

neutrality.Other environmental related information

Nil

II. Social responsibility

During the reporting period the company organized employees a donation of 75000 yuan to the Red Cross Society of Wuxi. The

company has been awarded the honorary unit of Wuxi "Red Cross Donating-raising Work Organization Award" for many consecutive

years. In March of this year the company's labor union and all female employees joined hands with Wuxi Special Education School

to carry out a book donation activity caring for the vulnerable groups around them with practical actions and conveying care and best

wishes to the children at the special school. A total of 1611 books were donated this time including classics children's books science

stories etc. Since this year the company has provided real assistance through various channels such as Wuxi Federation of Trade

Unions Red Cross Society "Weifu Group Public Welfare Mutual Aid Fund" and other channels helping employees solve problems

such as disease education and difficulties totally assisted 77 employees with 328600 yuan in total. The employees of the company

also joined the "Wuxi Happy Volunteers" to go to the nursing homes in Wuxi to offer love and warmth to the elderly.The company actively built the trade union work brand of "Wei Gongyi · Fu Xiangzhu" of "red leadership enjoys high prestige"

actively undertook social responsibility strengthened the concept of social responsibility gathered the strength of employees worked

hard overcame difficulties together and established a good corporate image so as to contribute to promoting the sustainable

development of the enterprise and boosting the high-quality economic development of the company.

27无锡威孚高科技集团股份有限公司2022年半年度报告全文

Section VI. Important Matters

I. Undertakings that the actual controller shareholders related party buyers and the

Company have fulfilled during the reporting period and have not yet fulfilled by the end of

reporting period

□Applicable□Not applicable

No undertakings that the actual controller shareholders related party buyers and the Company have fulfilled during the reporting

period and have not yet fulfilled by the end of the period

II. Non-operational fund occupation from controlling shareholders and its related party

□Applicable□Not applicable

No non-operational fund occupation from controlling shareholders and its related party in period.III. External guarantee out of the regulations

□Applicable□Not applicable

No external guarantee out of the regulations occurred in the period.IV. Appointment and non-reappointment (dismissal) of CPA

Whether the financial report of semi-annual report has been audited

□Yes □No

The semi-annual report of the Company is unaudited.V. Explanation from Board of Directors and Supervisory Committee for “Non-standard auditreport” that issued by CPA

□Applicable□Not applicable

VI. Explanation from the BOD on the previous year’s “non-standard audit report”

□Applicable□Not applicable

VII. Bankruptcy reorganization

□Applicable□Not applicable

No bankruptcy reorganization occurred during the reporting period.VIII. Litigation

Major litigation and arbitration

□Applicable□Not applicable

No major litigation and arbitration occurred in the Period.

28无锡威孚高科技集团股份有限公司2022年半年度报告全文

Other litigation

□Applicable □Not applicable

Amount Whether

Trial Results Judgment

Basic Situation of Related to Formed Progress of

and Effects of Implementation Disclosure Disclosure

Litigation the Case Accrued Litigation

Litigation of Litigation Date Index

(Arbitration) (10’000Yu Liabiliti (Arbitration)

(Arbitration) (Arbitration)

an) es

On March 6

2017 the

company

received the civil

ruling

No.(2016)Y03M By the company’s

C2490 and application for

No.(2016) reconsideration

Y03MC2492 Shenzhen

from Shenzhen Intermediate

Intermediate People's Court

People's Court deemed the total

about the dispute assets that Cinda

case that the Company applied

plaintiff applicant for preservation to

China Cinda be RMB

Asset 217027697.23.Management Co. The total value of

Ltd. Shenzhen 15.3 million shares

Branch of SNAT Stock and

(hereinafter 4.71 million shares

referred to as of Miracle“Cinda Automation held byCompany”) the company has (Announceme

appealed the exceeded the total This litigation nt No.: 2017-

respondent Weifu assets that Cinda will not affect 002 2017-

High Technology Company applied the company’s 023)

Not yet

and other seven 21703 N for preservation daily 2017-03-08 published on

implemented

respondents and therefore 3560898 operating Juchao

the shareholders shares of SNAT activities for Website

of the third party Stock held by the the time being (www.cninfo.Hejun Company company was com.cn)

damaged the unfrozen. Up to the

interests of end of the reporting

corporate period the

creditors which company’s frozen

adopted the assets were as

mandatory follows: 4.71

measures to million shares of

freeze the assets Miracles

with value of Automation held by

RMB 217 million the company and its

under the name of fruits and

the Company and 11739102 shares

other seven of SNAT Stock held

respondents and by the company and

Hejun Company. its fruits. At present

Freeze 4.71 this litigation is still

million shares of in first instance

Miracle

Automation and

15.3 million

shares of SNAT

Stock held by the

company.

29无锡威孚高科技集团股份有限公司2022年半年度报告全文

The Company has

applied to Futian

People's Court of

Shenzhen for

compulsory

liquidation with

Hejun Company.The civil ruling

paper (Yue (0304)

QS [2017] No. 5)

made by Shenzhen

Futian District

People’s Court

ruled that Hejun

Company should be

made compulsory (Announceme

The Company has

liquidation.In There is no Shenzhen nt No.: 2017-

applied to Futian

process of the case impact on Intermediate 023)

People's Court of

the liquidation team daily Court declares published on

Shenzhen for 3300 N 2017-12-06

found that Hejun operation the bankruptcy Juchao

compulsory

Company was activities of of Hejun Website

liquidation with

insolvent and turned the Company Company (www.cninfo.Hejun Company

to the Shenzhen com.cn)

Intermediate Court

to apply for

bankruptcy. The

Company has

received the a Civil

Ruling Letter from

Shenzhen

Intermediate Court.Hejun Company

declared to

bankruptcy and

terminated the

bankruptcy

proceedings for

Hejun Company.IX. Penalty and rectification

□Applicable□Not applicable

X. Integrity of the company and its controlling shareholders and actual controllers

□Applicable□Not applicable

XI. Major related party transaction

1. Day-to-day related party transaction

□Applicable □Not applicable

Whe

ther

Cont Clea

over

Typ ent Related ring

Relate Propor Trading the

e of of party form

Pricin d tion in limit appr Available Index

relat relat transactio for Date of

Related Relation g party simila approve oved similar of

ed ed n amount relat disclosu

party ship princi transa r d (in 10 limit market disclo

tran party (in 10 ed re

ple ction transa thousan ed price sure

sact trans thousand trans

price ctions d Yuan) or

ion actio Yuan) actio

not

n n

(Y/

30无锡威孚高科技集团股份有限公司2022年半年度报告全文

Pro

cure Proc

Pricin

men urem Acc

g on

t of ent ordi

Associat the Notice

goo of ng

ed fair Marke Market 2022- No.:

WFPM ds good 1694.79 0.33% 4000 N to

enterpri value t price price 04-19 2022-

and s and the

se in 012

labo labor cont

marke

r servi ract

serv ces

ices

Pro

Associat

cure Proc

ed Pricin

men urem Acc

enterpri g on

t of ent ordi

se the Notice

goo of ng

controlli fair Marke Market 2022- No.:

RBCD ds good 17450.80 3.41% 45000 N to

ng value t price price 04-19 2022-

and s and the

subsidia in 012

labo labor cont

ry of marke

r servi ract

Robert t

serv ces

Bosch

ices

Pricin

Acc

Pro Proc g on

Associat ordi

cure urem the Notice

ed ng

men ent fair Marke Market 2022- No.:

WFEC enterpri 24664.69 4.82% 70000 N to

t of of value t price price 04-19 2022-

se of the

goo good in 012

WFLD cont

ds s marke

ract

Pro

cure Proc

Pricin

Second men urem Acc

g on

largest t of ent ordi

Robert the Notice

sharehol goo of ng

Bosch fair Marke Market 2022- No.:

der of ds good 9390.61 1.83% 30000 N to

Compan value t price price 04-19 2022-

the and s and the

y in 012

Compan labo labor cont

marke

y r servi ract

serv ces

ices

Pricin

Acc

Pro Proc g on

ordi

Associat cure urem the Notice

Changch ng

ed men ent fair Marke Market 2022- No.:

un 34.25 0.01% 150 N to

enterpri t of of value t price price 04-19 2022-

Xuyang the

se goo good in 012

cont

ds s marke

ract

Pricin

Sale Acc

Sale g on

s of ordi

Associat s of the Notice

goo ng

ed good fair Marke Market 2022- No.:

WFPM ds 52.27 0.01% 1000 N to

enterpri s and value t price price 04-19 2022-

and the

se servi in 012

serv cont

ces marke

ices ract

Associat

ed Pricin

Sale Acc

enterpri Sale g on

s of ordi

se s of the Notice

goo ng

controlli good fair Marke 163326.9 22.31 Market 2022- No.:

RBCD ds 350000 N to

ng s and value t price 3 % price 04-19 2022-

and the

subsidia servi in 012

serv cont

ry of ces marke

ices ract

Robert t

Bosch

31无锡威孚高科技集团股份有限公司2022年半年度报告全文

Pricin

Sale Acc

Sale g on

Associat s of ordi

s of the Notice

ed goo ng

good fair Marke Market 2022- No.:

WFEC enterpri ds 15.86 0.00% 700 N to

s and value t price price 04-19 2022-

se of and the

servi in 012

WFLD serv cont

ces marke

ices ract

Pricin

Second Sale Acc

Sale g on

largest s of ordi

Robert s of the Notice

sharehol goo ng

Bosch good fair Marke Market 2022- No.:

der of ds 72466.82 9.90% 180000 N to

Compan s and value t price price 04-19 2022-

the and the

y servi in 012

Compan serv cont

ces marke

y ices ract

Pricin

Sale Acc

Sale g on

s of ordi

Associat s of the Notice

Changch goo ng

ed good fair Marke Market 2022- No.:

un ds 18.15 0.00% 500 N to

enterpri s and value t price price 04-19 2022-

Xuyang and the

se servi in 012

serv cont

ces marke

ices ract

Pricin

Sale Acc

Sale g on

s of ordi

Affiliate s of the Notice

Hebei goo ng

d good fair Marke Market 2022- No.:

Machine ds 7760.74 1.06% 20000 N to

compan s and value t price price 04-19 2022-

ry and the

y servi in 012

serv cont

ces marke

ices ract

Associat

ed Pricin

Tech Acc

enterpri g on

nical ordi

se the Notice

servi ng

controlli Oth fair Marke Market 2022- No.:

RBCD ce 50 N to

ng er value t price price 04-19 2022-

fee the

subsidia in 012

paya cont

ry of marke

ble ract

Robert t

Bosch

Associat Pay

ed ment Pricin

Acc

enterpri of g on

ordi

se. tech the Notice

controlli Oth nical fair Marke Market 2022- No.:

RBCD 31.20 150 N to

ng er com value t price price 04-19 2022-

the

subsidia miss in 012

cont

ry of ion marke

ract

Robert fee t

Bosch etc.Associat

ed Pricin

Acc

enterpri Purc g on

ordi

se. hasi the Notice

controlli Oth ng fair Marke Market 2022- No.:

RBCD 131.49 250 N to

ng er fixed value t price price 04-19 2022-

the

subsidia asset in 012

cont

ry of s marke

ract

Robert t

Bosch

32无锡威孚高科技集团股份有限公司2022年半年度报告全文

Pay

ment Pricin

Second Acc

of g on

largest ordi

Robert tech the Notice

sharehol ng

Bosch Oth nical fair Marke Market 2022- No.:

der of 13.05 100 N to

Compan er com value t price price 04-19 2022-

the the

y miss in 012

Compan cont

ion marke

y ract

fee t

etc.Pricin

Second Acc

Purc g on

largest ordi

Robert hasi the Notice

sharehol ng

Bosch Oth ng fair Marke Market 2022- No.:

der of 5.47 2800 N to

Compan er fixed value t price price 04-19 2022-

the the

y asset in 012

Compan cont

s marke

y ract

Tech Pricin

Acc

nical g on

Associat ordi

servi the Notice

ed ng

Oth ce fair Marke Market 2022- No.:

WFEC enterpri 50 N to

er fee value t price price 04-19 2022-

se of the

paya in 012

WFLD cont

ble marke

ract

etc. t

Prov Pricin

Acc

ision g on

Associat ordi

of the Notice

ed ng

Oth tech fair Marke Market 2022- No.:

WFEC enterpri 150 N to

er nical value t price price 04-19 2022-

se of the

servi in 012

WFLD cont

ces marke

ract

etc. t

Pricin

Acc

g on

Associat Leas ordi

the Notice

ed e ng

Oth fair Marke Market 2022- No.:

WFEC enterpri recei 119.04 300 N to

er value t price price 04-19 2022-

se of vabl the

in 012

WFLD e cont

marke

ract

Pricin

Acc

Ener g on

Associat ordi

gy the Notice

ed ng

Oth paya fair Marke Market 2022- No.:

WFEC enterpri 61.45 200 N to

er ble- value t price price 04-19 2022-

se of the

utilit in 012

WFLD cont

ies marke

ract

297237.6

Total -- -- -- 705400 -- -- -- -- --

Detail of sales return with major

Not applicable

amount involved

Being deliberated and approved by AGM of 2021 total day-to-day related party transaction for year of

2022 predicted as 7054 million Yuan actually2972.3761 million Yuan occurred in the Period the related

Report the actual implementation of

transaction classified according to types are as: 1. it estimated that procurement of goods and labor

the day-to-day related transactions

service from related party in 2022 will up to 1491.5 million Yuan while 532.3514 million Yuan occurred

which were projected about their

actually in the Period; 2. it estimated that sales of goods and labor service to related party in 2022 will

total amount by types during the

up to 5522 million Yuan actually 2436.4077 million Yuan occurred during the reporting period; 3. it

reporting period (if applicable)

estimated that other related transactions with related party for year of 2022 will up to 40.5 million Yuan

while 3.617 million Yuan actually occurred.Reasons for major differences

between trading price and market Not applicable

reference price (if applicable)

33无锡威孚高科技集团股份有限公司2022年半年度报告全文

2. Related party transactions of assets acquisition and sold

□Applicable□Not applicable

No related party transactions of assets acquisition and sold occurred during the reporting period

3. Related party transactions of mutual investment outside

□Applicable□Not applicable

No related party transactions of mutual investment outside occurred during the reporting period.

4. Contact of related party credit and debt

□Applicable□Not applicable

The Company had no contact of related party credit and debt in the reporting period.

5.Transaction with related financial companies

□Applicable□Not applicable

There are no deposits loans credits or other financial business occurred between the Company and the related finance companies or

related parties

6.Transaction between the financial companies that controlled by the Company and related parties

□Applicable□Not applicable

There are no deposits loans credits or other financial business occurred between the financial companies that controlled by the

Company and related parties

7. Other material related party transactions

□Applicable □Not applicable

On January 7 2022 the Company held the 6th session of 10th BOD to deliberated and approved the Proposal on Establishment of a

Joint Venture Company for Hydrogen Fuel Cell Parts and Related Transactions. The joint venture completed the industrial &

commercial registration procedures on June 30 2022 and obtained the Business License issued by Market Supervision Administration

of Wuxi National High-tech Industrial Development Zone (Xinwu District of Wuxi).On February 7 2022 the Company held the 7th session of 10th BOD to deliberated and approved the Proposal on Acquisition of Equity

and Related Transactions. At present the acquisition is progressing in an orderly manner as planned.On May 5 2022 the Company held the 10th session of 10th BOD to deliberated and approved the Proposal to Increase Capital in a

Participating Company and Related Transaction. The participating company Xichan Weixin completed the industrial & commercial

registration procedures on June 29 2022 and obtained the new Business License.Inquiries of related website with interim report disclosed with material related transaction concerned

Announcement Disclosure date Website for disclosure

Notice on Establishment of a Joint Venture Company for

2022-01-11 Juchao Website(http://www.cninfo.com.cn)

Hydrogen Fuel Cell Parts and Related Transactions

Notice on Acquisition of Equity and Related Transactions 2022-02-09 Juchao Website(http://www.cninfo.com.cn)

Notice on Increasing Capital in a Participating Company and

2022-05-07 Juchao Website(http://www.cninfo.com.cn)

Related Transaction

34无锡威孚高科技集团股份有限公司2022年半年度报告全文

XII. Significant contract and implementations

1. Trusteeship contract and leasing

(1) Trusteeship

□Applicable□Not applicable

No trusteeship occurred during the reporting period

(2) Contract

□Applicable□Not applicable

No contract occurred during the reporting period

(3) Leasing

□Applicable□Not applicable

No leasing occurred during the reporting period

2. Material guarantees

□Applicable□Not applicable

No material guarantees occurred during the reporting period

3.Trust financing

□Applicable □Not applicable

Unit: 10’000 yuan

Impairment for the

Capital Amount Outstanding Amount overdue

Type overdue financial

sources occurred balance for collection

management

Bank Wealth Management Own funds 82908 34681 0 0

Brokerage financial products Own funds 101612 64500 0 0

Trust financial products Own funds 349329 229250 0 0

Other types Own funds 163796 139570 0 0

Total 697645 468001

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

□Applicable □Not applicable

Unit: 10’000 yuan

ount

het

rese

rve Whe

ap Summ

Actu for ther

pr ary of

al dev has

Capi Crit ov the

So Antici colle alua entr

Truste tal eria Refere Actual ed items

urc pated cted tion ust

e inve for nce gains/l by and

Truste Amoun e Start End incom gain of fina

institu Type stme fixin annual osses leg related

e type t of date date e (if s/los with nce

tion r nt g rate of in al query

fun applic ses dra plan

name purp rewa return period pr index

ds able) in win in

ose rd oc (if

peri g in the

ed applic

od the futur

ur able)

Yea e

r (if

appl

icab

)

le)

35无锡威孚高科技集团股份有限公司2022年半年度报告全文

Refe

renc

Coll

Non- Ban ecte

annu

guara k d

O al

nteed 2022 2022 fina acco

37006 wn rate 2.50%- 672.1

Bank Bank floati -01- -09- ncia 95.99 rdin Y Y

0 fun of 3.05% 5

ng 05 30 l g to

ds retur

inco prod the

n by

me ucts cont

the

ract

cont

ract

Refe

Coll renc

Coll

ecti e

Non- ecte

ve annu

guara d

O asse al

nteed 2022 2024 4.70%- acco

Broke Securi wn t rate 5971. 2273.floati 46000 -01- -04- 15.73 rdin Y Y

rage ties fun man of 22 81

ng 07 25 % g to

ds age retur

inco the April

men n by

me cont 19

t the

ract 2022

plan cont

(Anno

ract

uncem

Refe

ent

renc

Coll No.e

Non- ecte 2022-

annu

guara Coll d 013)

O al

nteed 2022 2024 ecti acco

wn rate 6.30%- 3127. 7172.Trust Trust floati 23000 -01- -03- on rdin Y Y

fun of 7.1% 55 48

ng 27 18 trust g to

ds retur

inco plan the

n by

me cont

the

ract

cont

ract

Refe

renc

Coll

Other Non- Priv ecte

annu

profes guara ate d

O al

Other sional nteed 2022 2022 Equi acco

wn rate 2.00%- 247.9 341.4

(Fund financ floati 5100 -02- -08- ty rdin Y Y

fun of 10% 9 7

s etc.) ial ng 24 24 Prod g to

ds retur

institu inco ucts the

n by

tions me etc. cont

the

ract

cont

ract

444169442.1045

Total -- -- -- -- -- -- -- -- -- --

0759.91

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

□Applicable□Not applicable

4. Other significant contract

□Applicable□Not applicable

The company had no other significant contract in the reporting period.XIII. Explanation on other material matters

□Applicable□Not applicable

There are no explanation on other material matters in the period

36无锡威孚高科技集团股份有限公司2022年半年度报告全文

XIV. Material matters of subsidiary of the Company

□Applicable□Not applicable

37无锡威孚高科技集团股份有限公司2022年半年度报告全文

Section VII. Changes in Shares and Particulars about Shareholders

I. Changes in Share Capital

1. Changes in Share Capital

Unit: Share

Before the Change Increase/Decrease in the Change (+ -) After the Change

Public

New reserve Ot

Bonus Subt

Amount Proportion shares transfer he Amount Proportion

shares otal

issued into share rs

capital

I. Restricted shares 19289336 1.91% 19289336 1.91%

1. State-owned shares

2. State-owned legal person’s

3. Other domestic shares 19289336 1.91% 19289336 1.91%

Including: Domestic legal

person’s shares

Domestic natural person’s

192893361.91%192893361.91%

4. Foreign shares

Including: Foreign legal

person’s shares

Foreign natural person’s shares

II. Unrestricted shares 989370234 98.09% 989370234 98.09%

1. RMB ordinary shares 816990234 81.00% 816990234 81.00%

2. Domestically listed foreign

17238000017.09%17238000017.09%

3. Overseas listed foreign shares

4. Others

III. Total shares 1008659570 100.00% 1008659570 100.00%

Reasons for share changed

□Applicable□Not applicable

Approval of share changed

□Applicable□Not applicable

Ownership transfer of share changed

□Applicable□Not applicable

Implementation progress of shares repurchase

□Applicable □Not applicable

On April 15 2022 the Company held 8th session of 10th BOD to deliberated and approved the Proposal on Repurchase Plan of Some

A-Share of the Company.On May 10 2022 the Company implemented the share repurchase (A-Share) initially by means of centralized competitive trading. As

of June 30 2022 total of 4982800 shares (A-Share) were repurchased by means of centralized competitive bidding trading through

a special securities account for repurchase representing 0.49% of the current total share capital of which the highest trading price

was 20.85 yuan/Share while the lowest trading price was 19.30 yuan/Share total amount paid in aggregated as 100001057.07 yuan

(transaction fees included).

38无锡威孚高科技集团股份有限公司2022年半年度报告全文

Implementation progress of reducing holdings of shares buy-back by centralized bidding

□Applicable□Not applicable

Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common

shareholders of Company in latest year and period

□Applicable□Not applicable

Other information necessary to disclose or need to disclosed under requirement from security regulators

□Applicable□Not applicable

2. Changes of lock-up stocks

□Applicable□Not applicable

II. Securities issuance and listing

□Applicable□Not applicable

III. Amount of shareholders of the Company and particulars about shares holding

Unit: share

Total common stock shareholders at end of Total preference shareholders with voting rights

687200

the reporting period recovered at end of reporting period (if applicable)

Particulars about common shares held above 5% by shareholders or top ten common shareholders

Information of

Amount of Amount shares

Amount of

Proporti common of pledged

Changes in common

Nature of on of shares held restricted tagged or

Full name of Shareholders reporting shares held

shareholder shares at the end of common frozen

period (+-) without

held reporting shares State

restriction Am

period held of

ount

Wuxi Industry Development State-owned

20.23%20405939800204059398

Group Co. Ltd. corporate

Foreign

Robert Bosch Co. Ltd 14.16% 142841400 0 0 142841400

corporate

Hong Kong Securities Foreign

2.20%22213969-2495452022213969

Clearing Company corporate

BBH BOS S/A FIDELITY Foreign

1.40%14122915-1321800014122915

FD - CHINA FOCUS FD corporate

NSSF - 413 Other 0.72% 7230000 1890000 0 7230000

FIDELITY INVMT TRT

Foreign

FIDELITY INTL SMALL 0.70% 7043386 0 0 7043386

corporate

CAP FUND

Shanghai Chongyang

Strategic Investment Co. Ltd.Other 0.55% 5500106 5500106 0 5500106

- Chongyang Strategy YZ

Funds

Industrial and Commercial

Bank of China Limited -

Other 0.39% 3943482 236900 0 3943482

Fullgoal CSI Bonus Enhanced

Securities Investment Fund

Domestic

Xie Zuogang nature 0.38% 3812086 0 0 3812086

person

Basic Pension Insurance

Other 0.34% 3422856 -4292800 0 3422856

Fund- 1003

39无锡威孚高科技集团股份有限公司2022年半年度报告全文

Strategy investor or general legal person becoming

the top 10 common shareholders by placing new N/A

shares (if applicable)

Among the aforesaid shareholders there has no associated relationship between

Wuxi Industry Development Croup Co. Ltd. and other shareholders the first

Explanation on associated relationship among the

largest shareholder of the Company; and they do not belong to the persons acting

aforesaid shareholders

in concert regulated by the Management Measure of Information Disclosure on

Change of Shareholding for Listed Company.Description of the above shareholders in relation to

delegate/entrusted voting rights and abstention from N/A

voting rights.As of June 30 2022 the repurchase special securities account of Weifu High-

Technology Group Co. Ltd has 5039077 shares of ordinary A-Share

Special note on the repurchase account among the top

representing 0.50% of the shareholding hereby stated that in according withe

10 shareholders (if applicable) (refer to Note 11)

relevant requirement they do not included in the top 10 shareholders of the

Company.Particular about top ten shareholders with un-lock up common stocks held

Amount of common shares Type of shares

Shareholders’ name held without restriction at

Period-end Type Amount

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

RMB common shares 115260600

Robert Bosch Co. Ltd 142841400

Domestically listed

27580800

foreign shares

Hong Kong Securities Clearing Company 22213969 RMB common shares 22213969

Domestically listed

BBH BOS S/A FIDELITY FD - CHINA FOCUS FD 14122915 14122915

foreign shares

NSSF - 413 7230000 RMB common shares 7230000

FIDELITY INVMT TRT FIDELITY INTL SMALL Domestically listed

70433867043386

CAP FUND foreign shares

Shanghai Chongyang Strategic Investment Co. Ltd. -

5500106 RMB common shares 5500106

Chongyang Strategy YZ Funds

Industrial and Commercial Bank of China Limited -

Fullgoal CSI Bonus Enhanced Securities Investment 3943482 RMB common shares 3943482

Fund

Domestically listed

Xie Zuogang 3812086 3812086

foreign shares

Basic Pension Insurance Fund- 1003 3422856 RMB common shares 3422856

Among the aforesaid shareholders there has no associated relationship between

Expiation on associated relationship or consistent

Wuxi Industry Development Croup Co. Ltd. and other shareholders the first

actors within the top 10 un-lock up common

largest shareholder of the Company; and they do not belong to the persons acting

shareholders and between top 10 un-lock up common

in concert regulated by the Management Measure of Information Disclosure on

shareholders and top 10 common shareholders

Change of Shareholding for Listed Company.Whether top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held have a buy-back

agreement dealing in reporting period

□Yes □No

The top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held of the Company have no

buy-back agreement dealing in reporting period.IV. Changes in shareholdings of directors supervisors and senior executives

□Applicable□Not applicable

There were no changes in shareholdings of the directors supervisors and senior executive during the reporting period found more in

Annual Report 2021

40无锡威孚高科技集团股份有限公司2022年半年度报告全文

V. Changes in controlling shareholders or actual controllers

Change of controlling shareholder during the reporting period

□Applicable□Not applicable

The Company had no change of controlling shareholder during the reporting period

Change of actual controller during the reporting period

□Applicable□Not applicable

The Company had no change of actual controller during the reporting period

41无锡威孚高科技集团股份有限公司2022年半年度报告全文

Section VIII. Preferred Stock

□Applicable□Not applicable

The Company had no preferred stock in the Period.

42无锡威孚高科技集团股份有限公司2022年半年度报告全文

Section IX. Corporate Bonds

□Applicable□Not applicable

43无锡威孚高科技集团股份有限公司2022年半年度报告全文

Section X. Financial Report

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 2022

Unit: RMB/CNY

Item June 30 2022 January 1 2022

Current assets:

Monetary funds 2357955196.57 1896063265.69

Settlement provisions

Capital lent

Trading financial assets 3783299041.48 6076436069.42

Derivative financial assets

Note receivable 990397272.62 1116550186.21

Account receivable 4545410759.88 2053800293.77

Receivable financing 875577584.80 713017014.50

Accounts paid in advance 3128509070.58 178059249.99

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance receivable

Other account receivable 603753032.49 17908078.54

Including: Interest receivable

Dividend receivable 577318855.11

Buying back the sale of financial assets

Inventories 2167754348.61 3445396375.09

Contractual assets

Assets held for sale

Non-current asset due within one year

Other current assets 52225842.73 220320922.50

Total current assets 18504882149.76 15717551455.71

Non-current assets:

Loans and payments on behalf

Debt investment

44无锡威孚高科技集团股份有限公司2022年半年度报告全文

Other debt investment

Long-term account receivable

Long-term equity investment 5582235398.43 5717944788.12

Investment in other equity instrument 677790690.00 285048000.00

Other non-current financial assets 1804481411.00 1690795178.00

Investment real estate 18653199.32 19387746.56

Fixed assets 2954329704.27 2932210452.51

Construction in progress 500684157.53 387429933.08

Productive biological asset

Oil and gas asset

Right-of-use assets 28757850.60 23148405.58

Intangible assets 429178519.56 440593119.82

Expense on Research and Development

Goodwill 224425945.78 231255015.75

Long-term expenses to be apportioned 11947263.62 15304783.57

Deferred income tax asset 247248306.68 242248194.57

Other non-current asset 417664761.50 267941354.57

Total non-current asset 12897397208.29 12253306972.13

Total assets 31402279358.05 27970858427.84

Current liabilities:

Short-term loans 4187682800.94 1437958206.55

Loan from central bank

Capital borrowed

Trading financial liability

Derivative financial liability

Note payable 1603408581.52 1760032216.30

Account payable 4244994572.77 3206653702.59

Accounts received in advance 6950948.17 2854518.96

Contractual liability 93104665.28 136427636.39

Selling financial asset of repurchase

Absorbing deposit and interbank deposit

Security trading of agency

Security sales of agency

Wage payable 244436555.93 339888502.70

Taxes payable 110831058.87 40105648.88

Other account payable 468263626.36 359905317.46

Including: Interest payable 5621.94 6184.14

Dividend payable 165975264.00 25671100.00

Commission charge and commission payable

Reinsurance payable

Liability held for sale

Non-current liabilities due within one year 31696560.71 34088773.68

Other current liabilities 169153621.43 212969271.55

Total current liabilities 11160522991.98 7530883795.06

Non-current liabilities:

Insurance contract reserve

Long-term loans 200000000.00

Bonds payable

45无锡威孚高科技集团股份有限公司2022年半年度报告全文

Including: Preferred stock

Perpetual capital securities

Lease liability 21504518.33 15795469.25

Long-term account payable 32015082.11 32015082.11

Long-term wages payable 108311923.19 108311923.19

Accrual liability

Deferred income 280016332.08 298052867.56

Deferred income tax liabilities 20805712.81 23097535.20

Other non-current liabilities

Total non-current liabilities 662653568.52 477272877.31

Total liabilities 11823176560.50 8008156672.37

Owner’s equity:

Share capital 1008659570.00 1008659570.00

Other equity instrument

Including: Preferred stock

Perpetual capital securities

Capital public reserve 3406077313.83 3371344172.82

Less: Inventory shares 339452454.81 270249797.74

Other comprehensive income -49425996.76 -36746344.60

Reasonable reserve 1715465.25 712215.31

Surplus public reserve 510100496.00 510100496.00

Provision of general risk

Retained profit 14438490420.01 14814787377.86

Total owner’ s equity attributable to parent company 18976164813.52 19398607689.65

Minority interests 602937984.03 564094065.82

Total owner’ s equity 19579102797.55 19962701755.47

Total liabilities and owner’ s equity 31402279358.05 27970858427.84

Legal Representative: Wang Xiaodong

Person in charge of accounting works: Ou Jianbin

Person in charge of accounting institute: Ou Jianbin

2. Balance Sheet of Parent Company

Unit: RMB/CNY

Item June 30 2022 January 1 2022

Current assets:

Monetary funds 1161936356.09 1002808546.46

Trading financial assets 3438370002.19 5493703374.82

Derivative financial assets

Note receivable 216245787.47 303726372.69

Account receivable 925360503.38 536957890.22

Receivable financing

Accounts paid in advance 95671538.79 93419268.82

Other account receivable 3837362710.21 204125517.63

Including: Interest receivable 102777.78 113055.56

Dividend receivable 560425376.21 26718900.00

Inventories 612225270.17 1076094722.15

46无锡威孚高科技集团股份有限公司2022年半年度报告全文

Contractual assets

Assets held for sale

Non-current assets maturing within one year

Other current assets 7467232.94 149352872.77

Total current assets 10294639401.24 8860188565.56

Non-current assets:

Debt investment

Other debt investment

Long-term receivables

Long-term equity investments 6840345524.26 6867282228.56

Investment in other equity instrument 601850690.00 209108000.00

Other non-current financial assets 1804481411.00 1690795178.00

Investment real estate

Fixed assets 1794069819.22 1786089596.76

Construction in progress 311929452.27 239183999.25

Productive biological assets

Oil and natural gas assets

Right-of-use assets 8182385.14 1240879.96

Intangible assets 211090286.11 209952168.75

Research and development costs

Goodwill

Long-term deferred expenses 274190.98 348970.34

Deferred income tax assets 90660050.91 85012991.24

Other non-current assets 321480754.07 185646711.53

Total non-current assets 11984364563.96 11274660724.39

Total assets 22279003965.20 20134849289.95

Current liabilities

Short-term borrowings 2566129633.33 272578883.63

Trading financial liability

Derivative financial liability

Notes payable 445310209.74 569405391.94

Account payable 876228070.03 1012390712.80

Accounts received in advance

Contract liability 6849874.49 7879319.15

Wage payable 158053645.19 220719432.58

Taxes payable 19993113.26 12427327.61

Other accounts payable 1311764098.96 392455373.80

Including: Interest payable 117777.78

Dividend payable 165975264.00

Liability held for sale

Non-current liabilities due within one year 462484.41 462484.41

Other current liabilities 130116125.31 143935332.78

Total current liabilities 5514907254.72 2632254258.70

Non-current liabilities:

Long-term loans

Bonds payable

Including: preferred stock

Perpetual capital securities

47无锡威孚高科技集团股份有限公司2022年半年度报告全文

Lease liability 7993740.15 1003106.55

Long-term account payable

Long term employee compensation payable 103482333.50 103482333.50

Accrued liabilities

Deferred income 253285007.42 265509545.34

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 364761081.07 369994985.39

Total liabilities 5879668335.79 3002249244.09

Owners’ equity:

Share capital 1008659570.00 1008659570.00

Other equity instrument

Including: preferred stock

Perpetual capital securities

Capital public reserve 3522974136.55 3487154855.59

Less: Inventory shares 339452454.81 270249797.74

Other comprehensive income

Special reserve

Surplus reserve 510100496.00 510100496.00

Retained profit 11697053881.67 12396934922.01

Total owner’s equity 16399335629.41 17132600045.86

Total liabilities and owner’s equity 22279003965.20 20134849289.95

3. Consolidated Profit Statement

Unit: RMB/CNY

Item 2022 semi-annual 2021 semi-annual

I. Total operating income 7321835360.98 9037691756.24

Including: Operating income 7321835360.98 9037691756.24

Interest income

Insurance gained

Commission charge and commission income

II. Total operating cost 6729087452.78 8179064974.32

Including: Operating cost 6024571742.71 7497917157.07

Interest expense

Commission charge and commission expense

Cash surrender value

Net amount of expense of compensation

Net amount of withdrawal of insurance contract reserve

Bonus expense of guarantee slip

Reinsurance expense

Tax and extras 28877421.78 38209494.32

Sales expense 79020592.43 111193615.56

Administrative expense 277212254.79 266226378.32

R&D expense 289631376.50 249583255.99

Financial expense 29774064.57 15935073.06

Including: Interest expenses 34275262.65 14244003.27

Interest income 13927929.36 16673615.70

48无锡威孚高科技集团股份有限公司2022年半年度报告全文

Add: other income 26095621.93 23433211.68

Investment income (Loss is listed with “-”) 928792343.97 1105771532.34

Including: Investment income on affiliated company and

823400731.10962736510.68

joint venture

The termination of income recognition for financial

-680357.44-609970.51

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

Exchange income (Loss is listed with “-”)

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

Income from change of fair value (Loss is listed with “-”) -74432928.14 -86131772.46

Loss of credit impairment (Loss is listed with “-”) 2083427.81 6750336.12

Losses of devaluation of asset (Loss is listed with “-”) -104219783.98 -103997387.44

Income from assets disposal (Loss is listed with “-”) 1890279.95 2926586.82

III. Operating profit (Loss is listed with “-”) 1372956869.74 1807379288.98

Add: Non-operating income 218285.29 488184.66

Less: Non-operating expense 2196565.87 851627.30

IV. Total profit (Loss is listed with “-”) 1370978589.16 1807015846.34

Less: Income tax expense 100553787.21 117972661.22

V. Net profit (Net loss is listed with “-”) 1270424801.95 1689043185.12

(i) Classify by business continuity

1.continuous operating net profit (net loss listed with ‘-”) 1270424801.95 1689043185.12

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

(ii) Classify by ownership

1.Net profit attributable to owner’s of parent company 1232762710.95 1645389487.32

2.Minority shareholders’ gains and losses 37662091.00 43653697.80

VI. Net after-tax of other comprehensive income -12679652.16 -18712800.55

Net after-tax of other comprehensive income attributable to owners

-12679652.16-18712800.55

of parent company

(I) Other comprehensive income items which will not be

reclassified subsequently to profit of loss

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

2.Other comprehensive income under equity method that

cannot be transfer to gain/loss

3.Change of fair value of investment in other equity

instrument

4.Fair value change of enterprise's credit risk

5. Other

(ii) Other comprehensive income items which will be reclassified

-12679652.16-18712800.55

subsequently to profit or loss

1.Other comprehensive income under equity method that

can transfer to gain/loss

2.Change of fair value of other debt investment

3.Amount of financial assets re-classify to other

comprehensive income

4.Credit impairment provision for other debt investment

5.Cash flow hedging reserve

6.Translation differences arising on translation of foreign

-12679652.16-18712800.55

currency financial statements

7.Other

Net after-tax of other comprehensive income attributable to minority

shareholders

VII. Total comprehensive income 1257745149.79 1670330384.57

Total comprehensive income attributable to owners of parent

1220083058.791626676686.77

Company

Total comprehensive income attributable to minority shareholders 37662091.00 43653697.80

49无锡威孚高科技集团股份有限公司2022年半年度报告全文

VIII. Earnings per share:

(i) Basic earnings per share 1.25 1.66

(ii) Diluted earnings per share 1.25 1.66

Legal Representative: Wang Xiaodong

Person in charge of accounting works: Ou Jianbin

Person in charge of accounting institute: Ou Jianbin

4. Profit Statement of Parent Company

Unit: RMB/CNY

Item 2022 semi-annual 2021 semi-annual

I. Operating income 2411189208.04 3220943476.43

Less: Operating cost 1919986159.54 2403527534.87

Taxes and surcharge 13501778.32 21834137.85

Sales expenses 14392542.42 17546893.57

Administration expenses 144366869.06 135426334.91

R&D expenses 115694064.37 87747468.92

Financial expenses -8310144.29 -7223028.80

Including: interest expenses 18380946.47 3350273.60

Interest income 31657392.66 13656977.09

Add: other income 15713320.73 15396596.15

Investment income (Loss is listed with “-”) 835209662.03 1028633777.97

Including: Investment income on affiliated Company and

734429287.99831855487.43

joint venture

The termination of income recognition for financial

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

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

Changing income of fair value (Loss is listed with “-”) -74417034.85 -86218789.02

Loss of credit impairment (Loss is listed with “-”) 477241.11 780808.33

Losses of devaluation of asset (Loss is listed with “-”) -45999971.02 -10358756.04

Income on disposal of assets (Loss is listed with “-”) 146113.46 723623.73

II. Operating profit (Loss is listed with “-”) 942687270.08 1511041396.23

Add: Non-operating income 138467.56 56000.29

Less: Non-operating expense 613619.53 575906.72

III. Total Profit (Loss is listed with “-”) 942212118.11 1510521489.80

Less: Income tax 33033489.65 76926523.99

IV. Net profit (Net loss is listed with “-”) 909178628.46 1433594965.81(i)continuous operating net profit (net loss listed with ‘-”) 909178628.46 1433594965.81(ii) termination of net profit (net loss listed with ‘-”)

V. Net after-tax of other comprehensive income

(I) Other comprehensive income items which will not be

reclassified subsequently to profit of loss

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

2.Other comprehensive income under equity method that

cannot be transfer to gain/loss

3.Change of fair value of investment in other equity

instrument

4.Fair value change of enterprise's credit risk

5. Other

(II) Other comprehensive income items which will be reclassified

subsequently to profit or loss

50无锡威孚高科技集团股份有限公司2022年半年度报告全文

1.Other comprehensive income under equity method that

can transfer to gain/loss

2.Change of fair value of other debt investment

3.Amount of financial assets re-classify to other

comprehensive income

4.Credit impairment provision for other debt investment

5.Cash flow hedging reserve

6.Translation differences arising on translation of foreign

currency financial statements

7.Other

VI. Total comprehensive income 909178628.46 1433594965.81

VII. Earnings per share:

(i) Basic earnings per share

(ii) Diluted earnings per share

5. Consolidated Cash Flow Statement

Unit: RMB/CNY

Item 2022 semi-annual 2021 semi-annual

I. Cash flows arising from operating activities:

Cash received from selling commodities and providing labor

8608596903.677104973474.71

services

Net increase of customer deposit and interbank deposit

Net increase of loan from central bank

Net increase of capital borrowed from other financial institution

Cash received from original insurance contract fee

Net cash received from reinsurance business

Net increase of insured savings and investment

Cash received from interest commission charge and commission

Net increase of capital borrowed

Net increase of returned business capital

Net cash received by agents in sale and purchase of securities

Write-back of tax received 232035625.20 22377551.77

Other cash received concerning operating activities 22438681.72 23837717.02

Subtotal of cash inflow arising from operating activities 8863071210.59 7151188743.50

Cash paid for purchasing commodities and receiving labor service 10123953273.86 5800001521.45

Net increase of customer loans and advances

Net increase of deposits in central bank and interbank

Cash paid for original insurance contract compensation

Net increase of capital lent

Cash paid for interest commission charge and commission

Cash paid for bonus of guarantee slip

Cash paid to/for staff and workers 736897874.74 769474843.18

Taxes paid 223299890.76 241303901.65

Other cash paid concerning operating activities 272902216.12 260216868.05

Subtotal of cash outflow arising from operating activities 11357053255.48 7070997134.33

Net cash flows arising from operating activities -2493982044.89 80191609.17

II. Cash flows arising from investing activities:

Cash received from recovering investment 6783202982.62 9674956210.22

Cash received from investment income 510529403.51 476145091.90

51无锡威孚高科技集团股份有限公司2022年半年度报告全文

Net cash received from disposal of fixed intangible and other

7007242.747301988.55

long-term assets

Net cash received from disposal of subsidiaries and other units

Other cash received concerning investing activities 1108314.69

Subtotal of cash inflow from investing activities 7300739628.87 10159511605.36

Cash paid for purchasing fixed intangible and other long-term

622264336.12312048305.49

assets

Cash paid for investment 5121895293.87 8896332579.38

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 5744159629.99 9208380884.87

Net cash flows arising from investing activities 1556579998.88 951130720.49

III. Cash flows arising from financing activities

Cash received from absorbing investment

Including: Cash received from absorbing minority shareholders’

investment by subsidiaries

Cash received from loans 4061893674.46 1107957631.62

Other cash received concerning financing activities

Subtotal of cash inflow from financing activities 4061893674.46 1107957631.62

Cash paid for settling debts 1122521453.43 212778637.77

Cash paid for dividend and profit distributing or interest paying 1499815013.36 1385111066.13

Including: Dividend and profit of minority shareholder paid by

25671100.0013970282.31

subsidiaries

Other cash paid concerning financing activities 100866543.83 6919876.01

Subtotal of cash outflow from financing activities 2723203010.62 1604809579.91

Net cash flows arising from financing activities 1338690663.84 -496851948.29

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

-4522251.76-3408171.79

exchange rate

V. Net increase of cash and cash equivalents 396766366.07 531062209.58

Add: Balance of cash and cash equivalents at the period -begin 1094018936.73 944946018.70

VI. Balance of cash and cash equivalents at the period -end 1490785302.80 1476008228.28

6. Cash Flow Statement of Parent Company

Unit: RMB/CNY

Item 2022 semi-annual 2021 semi-annual

I. Cash flows arising from operating activities:

Cash received from selling commodities and providing labor

2206683069.383242751680.23

services

Write-back of tax received 186226813.27

Other cash received concerning operating activities 13662628.42 12609442.48

Subtotal of cash inflow arising from operating activities 2406572511.07 3255361122.71

Cash paid for purchasing commodities and receiving labor

1469241728.461994221184.67

service

Cash paid to/for staff and workers 389448409.74 437457769.95

Taxes paid 138600504.19 113149540.45

Other cash paid concerning operating activities 94078994.56 73953894.64

Subtotal of cash outflow arising from operating activities 2091369636.95 2618782389.71

Net cash flows arising from operating activities 315202874.12 636578733.00

II. Cash flows arising from investing activities:

Cash received from recovering investment 4401242982.62 7526445210.22

52无锡威孚高科技集团股份有限公司2022年半年度报告全文

Cash received from investment income 515008090.22 467905359.02

Net cash received from disposal of fixed intangible and other

2092031.774642596.78

long-term assets

Net cash received from disposal of subsidiaries and other units

Other cash received concerning investing activities 333677757.87 126059237.40

Subtotal of cash inflow from investing activities 5252020862.48 8125052403.42

Cash paid for purchasing fixed intangible and other long-term

427352475.87168425236.10

assets

Cash paid for investment 3082493337.87 6901181670.00

Net cash received from subsidiaries and other units obtained

Other cash paid concerning investing activities 3408840000.00 135221125.00

Subtotal of cash outflow from investing activities 6918685813.74 7204828031.10

Net cash flows arising from investing activities -1666664951.26 920224372.32

III. Cash flows arising from financing activities

Cash received from absorbing investment

Cash received from loans 2618386800.00 276862000.00

Other cash received concerning financing activities 783729243.68 30000000.00

Subtotal of cash inflow from financing activities 3402116043.68 306862000.00

Cash paid for settling debts 326483000.00 102000000.00

Cash paid for dividend and profit distributing or interest paying 1459828775.80 1361089903.10

Other cash paid concerning financing activities 100720981.37 48290.60

Subtotal of cash outflow from financing activities 1887032757.17 1463138193.70

Net cash flows arising from financing activities 1515083286.51 -1156276193.70

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

-3140478.44-1128178.25

exchange rate

V. Net increase of cash and cash equivalents 160480730.93 399398733.37

Add: Balance of cash and cash equivalents at the period -begin 488417498.83 651188544.53

VI. Balance of cash and cash equivalents at the period -end 648898229.76 1050587277.90

53无锡威孚高科技集团股份有限公司2022年半年度报告全文

7. Statement of Changes in Owners’ Equity (Consolidated)

Current Period

Unit: RMB/CNY

2022 semi-annual

Owners’ equity attributable to the parent Company

Other

equity instrument Provis Total Item

Share Pref Perpet O

Less: Other Reasona Minority

Capital Surplus ion of owners’

erre ual t Inventory comprehensive ble Retained profit Other Subtotal interests capital reserve reserve genera equity

d capital h shares income reserve l risk

stoc securit e

k ies r

I. Balance at

10086533713427024979712215.51010049614814787377.19398607689.56409406519962701

the end of -36746344.60

the last year 9570.00 4172.82 7.74 31 .00 86 65 .82 755.47

Add:

Changes of

accounting

policy

Error

correction

of the last

period

Enterprise

combine

under the

same

control

Other

54无锡威孚高科技集团股份有限公司2022年半年度报告全文

II. Balance

at the 100865 337134 27024979 712215. 510100496 14814787377. 19398607689. 564094065 19962701

-36746344.60

beginning of 9570.00 4172.82 7.74 31 .00 86 65 .82 755.47

this year

III.Increase/

Decrease in -

34733169202657.10032438843918.

this year -12679652.16 -376296957.85 -422442876.13 383598957

(Decrease is 41.01 07 9.94 21 .92

listed with

“-”)

(i) Total

1232762710.91220083058.737662091.12577451

comprehens -12679652.16

ive income 5 9 00 49.79

(ii) Owners’ -

devoted and 347331 69202657. 1086139.9

-34469516.0633383376.decreased 41.01 07 2

capital 14

1.Common

invested by

shareholders

2. Capital

invested by

holders of

other equity

instruments

3. Amount

reckoned

into owners 347331 1086139.9 35819280.

34733141.01

equity with 41.01 2 93

share-based

payment

69202657.

4. Other -69202657.07 69202657.

55无锡威孚高科技集团股份有限公司2022年半年度报告全文

---

(III) Profit

1609059668.81609059668.816090596

distribution

0068.80

Withdrawal

of surplus

reserves

Withdrawal

of general

risk

provisions

Distribution - - -

for owners

1609059668.81609059668.816090596

(or

shareholders 0 0 68.80

)

4. Other

(IV)

Carrying

forward

internal

owners’

equity

1. Capital

reserves

conversed to

capital

(share

capital)

2. Surplus

reserves

conversed to

capital

(share

56无锡威孚高科技集团股份有限公司2022年半年度报告全文

capital)

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)

1003241098937.2

Reasonable 1003249.94 95687.29

reserve 9.94 3

Withdrawal 132394 1346071.8 14585537.

13239465.25

in the report 65.25 6 11

period

2. Usage in

1223621250384.513486599.

the report 12236215.31

period 15.31 7 88

57无锡威孚高科技集团股份有限公司2022年半年度报告全文

(VI)Others

IV. Balance

at the end of 100865 340607 33945245 171546 510100496 14438490420. 18976164813. 602937984 19579102

-49425996.76

the report 9570.00 7313.83 4.81 5.25 .00 01 52 .03 797.55

period

Last Period

Unit: RMB/CNY

2021 semi-annual

Owners’ equity attributable to the parent Company

Other

equity

instrument

Item Pr ua Less: Other Provision Minority Total owners’ Share ef Capital Reasonabl Surplus Othe

l Inventory comprehens of general Retained profit Subtotal interests equity capital err Ot reserve e reserve reserve r

ca shares ive income risk

ed he

pit

st r

rit

ies

I. Balance

at the end 1008950 3294242 303627977 13916619. 2333490. 510100496 13756102424. 18282017990. 512447908 18794465899.of the last 570.00 368.28 .74 47 03 .00 62 66 .36 02

year

Add:

Changes

accountin

g policy

58无锡威孚高科技集团股份有限公司2022年半年度报告全文

Error

correction

of the last

period

Enterprise

combine

under the

same

control

Other

II.Balance at

the 1008950 3294242 303627977 13916619. 2333490. 510100496 13756102424. 18282017990. 512447908 18794465899.beginning 570.00 368.28 .74 47 03 .00 62 66 .36 02

of this

year

III.Increase/

Decrease -

in this 3735106 194126.9 30900981.

18712800.134284380.68153116773.47184017754.68

year 6.35 9 21

(Decrease 55

is listed

with “-”)

(i) Total

comprehe 1645389487.3 1626676686.7 43653697. 1670330384.5

18712800.

nsive 2 7 80 7

income 55

(ii)

Owners’

devoted 3735106 1174655.4

37351066.3538525721.77

and 6.35 2

decreased

capital

59无锡威孚高科技集团股份有限公司2022年半年度报告全文

1.Commo

n shares

invested

sharehold

ers

2. Capital

invested

by holders

of other

equity

instrument

3. Amount

reckoned

into

owners

37351061174655.4

equity 37351066.35 38525721.77

with 6.35 2

share-

based

payment

4. Other

(III) Profit - - - -

distributio 1513341439.5 1513341439.5 13970282. 1527311721.8

n 0 0 31 1

Withdraw

al of

surplus

reserves

Withdraw

al of

general

risk

provisions

60无锡威孚高科技集团股份有限公司2022年半年度报告全文

Distributi

----

on for

1513341439.51513341439.513970282.1527311721.8

owners (or

sharehold 0 0 31 1

ers)

4. Other

(IV)

Carrying

forward

internal

owners’

equity

1. Capital

reserves

conversed

to capital

(share

capital)

2. Surplus

reserves

conversed

to capital

(share

capital)

Remedyin

g loss

with

surplus

reserve

4．Carry-

over

retained

earnings

from the

defined

benefit

plans

61无锡威孚高科技集团股份有限公司2022年半年度报告全文

5．Carry-

over

retained

earnings

from other

comprehe

nsive

income

6. Other

(V)

194126.9

Reasonabl 194126.99 42910.30 237037.29

e reserve 9

Withdraw

12481921203727.4

al in the 12481928.66 13685656.08

report 8.66 2

period

2. Usage

in the 1228780 1160817.1

12287801.6713448618.79

report 1.67 2

period

(VI)Other

2236332.862236332.862236332.86

IV.Balance at -

100895033315933036279772527617.51010049613890386805.18435134764.54334888918978483653.

the end of 4796181.0

the report 570.00 434.63 .74 02 .00 30 13 .57 70 8

period

62无锡威孚高科技集团股份有限公司2022年半年度报告全文

8. Statement of Changes in Owners’ Equity (Parent Company)

Current Period

Unit: RMB/CNY

2022 semi-annual

Other equity

Other

instrument

compr

Item Pref OShare Perpetua Capital public Less: Inventory ehensi Reasonable Total owners’

erre t Surplus reserve Retained profit Other

capital l capital reserve shares ve reserve equity

d h

securitie incom

stoc e

s e

k r

I. Balance at the

10086593487154855.512396934922.017132600045.8

end of the last 270249797.74 0.00 510100496.00

year 570.00 9 1 6

Add:

Changes of

accounting policy

Error

correction of the

last period

Other

II. Balance at the

10086593487154855.512396934922.017132600045.8

beginning of this 270249797.74 0.00 510100496.00

year 570.00 9 1 6

III. Increase/

Decrease in this

35819280.9669202657.07-699881040.34-733264416.45

year (Decrease is

listed with “-”)

(i) Total

comprehensive 909178628.46 909178628.46

income

(ii) Owners’

devoted and 35819280.96 69202657.07 -33383376.11

decreased capital

1.Common shares

invested by

shareholders

2. Capital

invested by

holders of other

equity

instruments

63无锡威孚高科技集团股份有限公司2022年半年度报告全文

3. Amount

reckoned into

owners equity 35819280.96 35819280.96

with share-based

payment

4. Other 69202657.07 -69202657.07

(III) Profit

-1609059668.80-1609059668.80

distribution

1. Withdrawal of

surplus reserves

2. Distribution for

owners (or -1609059668.80 -1609059668.80

shareholders)

3. Other

(IV) Carrying

forward internal

owners’ equity

1. Capital

reserves

conversed to

capital (share

capital)

2. Surplus

reserves

conversed to

capital (share

capital)

3. Remedying

loss with surplus

reserve

4．Carry-over

retained earnings

from the defined

benefit plans

5．Carry-over

retained earnings

from other

comprehensive

income

6. Other

(V) Reasonable

reserve

1. Withdrawal in

3366170.403366170.40

the report period

64无锡威孚高科技集团股份有限公司2022年半年度报告全文

2. Usage in the

3366170.403366170.40

report period

(VI)Others

IV. Balance at the

10086593522974136.516399335629.4

end of the report 339452454.81 0.00 510100496.00 11697053881.67

period 570.00 5 1

Last period

Unit: RMB/CNY

2021 semi-annual

Other equity

instrument

Other

Pr Perp

compr

ef etual O

Item Capital public Less: Inventory ehensi Reasonable

Share capital err capit t Surplus reserve Retained profit Other Total owners’ equity

reserve shares ve reserve

ed al h

incom

st secu e

oc ritie r

k s

I. Balance at

1008950570.0

the end of the 3407732016.61 303627977.74 0.00 510100496.00 11698982965.62 16322138070.49

last year 0

Add:

Changes of

accounting

policy

Error

correction of

the last period

Other

II. Balance at

1008950570.0

the beginning 3407732016.61 303627977.74 0.00 510100496.00 11698982965.62 16322138070.49

of this year 0

III. Increase/

Decrease in this

year (Decrease 38525721.77 -77510140.83 -38984419.06

is listed with

“-”)

(i) Total

comprehensive 1433594965.81 1433594965.81

income

65无锡威孚高科技集团股份有限公司2022年半年度报告全文

(ii) Owners’

devoted and

38525721.7738525721.77

decreased

capital

1.Common

shares invested

by shareholders

2. Capital

invested by

holders of other

equity

instruments

3. Amount

reckoned into

owners equity 38525721.77 38525721.77

with share-

based payment

4. Other

(III) Profit

-1513341439.50-1513341439.50

distribution

1. Withdrawal

of surplus

reserves

2. Distribution

for owners (or -1513341439.50 -1513341439.50

shareholders)

3. Other

(IV) Carrying

forward internal

owners’ equity

1. Capital

reserves

conversed to

capital (share

capital)

2. Surplus

reserves

conversed to

capital (share

capital)

66无锡威孚高科技集团股份有限公司2022年半年度报告全文

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

3218208.9

in the report 3218208.90

period 0

2. Usage in the 3218208.9

3218208.90

report period 0

(VI)Others 2236332.86 2236332.86

IV. Balance at

1008950570.0

the end of the 3446257738.38 303627977.74 0.00 510100496.00 11621472824.79 16283153651.43

report period 0

67无锡威孚高科技集团股份有限公司2022年半年度报告全文

III . Basic information of the Company

1. Historical origin of the Company

By the approval of STGS (1992) No. 130 issued by Jiangsu Economic Restructuring Committee Weifu High-

Technology Group Co. Ltd. (hereinafter referred to “the Company” or “Company”) was established as a company

of limited liability with funds raised from targeted sources and registered at Wuxi Administration for Industry &

Commerce in October 1992. The original share capital of the Company totaled 115.4355 million yuan including

state-owned share capital amounting to 92.4355 million yuan public corporate share capital amounting to 8 million

yuan and inner employee share capital amounting to 15 million yuan.Between year of 1994 and 1995 the Company was restructured and became a holding subsidiary of Wuxi Weifu

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

issued 68 million special ordinary shares (B-share) with value of 1.00 yuan for each and the total value of those

shares amounted to 68 million yuan. After the issuance the Company’s total share capital increased to 183.4355

million yuan.By the approval of CSRC in June 1998 the Company issued 120 million RMB ordinary shares (A-share) at

Shenzhen Stock Exchange through on-line pricing and issuing. After the issuance the total share capital of the

Company amounted to 303.4355 million yuan.In the middle of 1999 deliberated and approved by the Board and Shareholders’ General Meeting the Company

implemented the plan of granting 3 bonus shares for each 10 shares. After that the total share capital of the Company

amounted to 394.46615 million yuan of which state-owned shares amounted to 120.16615 million yuan public

corporate shares 10.4 million yuan foreign-funded shares (B-share) 88.40 million yuan RMB ordinary shares (A-

share) 156 million yuan and inner employee shares 19.5 million yuan.In the year of 2000 by the approval of the CSRC and based upon the total share capital of 303.4355 million shares

after the issuance of A-share in June 1998 the Company allotted 3 shares for each 10 shares with a price of 10

yuan for each allotted share. Actually 41.9 million shares was allotted and the total share capital after the allotment

increased to 436.36615 million yuan of which state-owned corporate shares amounted to 121.56615 million yuan

public corporate shares 10.4 million yuan foreign-funded shares (B-share) 88.4 million yuan and RMB ordinary

shares (A-share) 216 million yuan.In April 2005 Board of Directors of the Company has examined and approved 2004 Profit Pre-distribution Plan

and examined and approved by 2004 Shareholders’ General Meeting the Company distributed 3 shares for each

10 shares to the whole shareholders totaling to 130909845 shares in 2005.

According to the Share Merger Reform Scheme of the Company that passed by related shareholders’ meeting of

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

Merger Reform of Weifu High-Technology Co. Ltd. issued by State-owned Assets Supervision & Administration

Commission of Jiangsu Province the Weifu Group etc. 8 non-circulating shareholders arranged pricing with

granting 1.7 shares for each 10 shares to circulating A-share shareholders (totally granted 47736000 shares) so as

to realize the originally non-circulating shares can be traded on market when satisfied certain conditions the scheme

has been implemented on April 5 2006.

68无锡威孚高科技集团股份有限公司2022年半年度报告全文

On 27 May 2009 Weifu Group satisfied the consideration arrangement by dispatching 0.5 shares for each 10 shares

based on the number of circulating A share as prior to Share Merger Reform according to the aforesaid Share

Merger Reform with an aggregate of 14039979 shares dispatched. Subsequent to implementation of dispatch of

consideration shares Weifu Group then held 100021999 shares of the Company representing 17.63% of the total

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

Industry Development Group Co. Ltd. issued by the State-owned Assets Supervision and Administration

Commission of Wuxi City Government Wuxi Industry Development Group Co. Ltd. (hereinafter referred to as

Wuxi Industry Group) acquired Weifu Group. After the merger Weifu Group was then revoked and its assets and

credits & debts were transferred to be under the name of Wuxi Industry Group. Accordingly Wuxi Industry Group

became the first largest shareholder of the Company since then.In accordance with the resolutions of shareholders' meeting and provisions of amended constitution and approved

by [2012] No. 109 document of China Securities Regulatory Commission in February 2012 the Company issued

RMB ordinary shares (A-share) of 112858000 shares to Wuxi Industry Groups and overseas strategic investor

privately Robert Bosch Co. Ltd. (ROBERT BOSCHGMBH) (hereinafter referred to as Robert Bosch Company)

face value was ONE yuan per share added registered capital of 112858000 yuan and the registered capital after

change was 680133995 yuan. Wuxi Industry Group is the first majority shareholder of the Company and Robert

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

also passed in Annual General Meeting 2012 of the Company in May 2013. On basis of total share capital

680133995 shares distribute 5-share for every 10 shares held by whole shareholders 340066997 shares in total

are distributed. Total share capital of the Company amounting 1020200992 yuan up to 31 December 2013.Deliberated and approved by the company’s first extraordinary general meeting in 2015 the company has

repurchased 11250422 shares of A shares from August 26 2015 to September 8 2015 and has finished the

cancellation procedures for above repurchase shares in China Securities Depository and Clearing Corporation

Limited Shenzhen Branch on September 16 2015; after the cancellation of repurchase shares the company’s paid-

up capital (share capital) becomes 1008950570 yuan after the change.After deliberation and approved by the 5th session of 10th BOD for year of 2021 the 291000 restricted shares are

buy-back and canceled by the Company initially granted under the 2020 Restricted Share Incentive Plan. The

cancellation of the above mentioned buy-back shares are completed at the Shenzhen Branch of CSDC on December

20 2021; the paid-in capital (equity) of the Company comes to 1008659570.00 yuan after changed.

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-massesDepartment Finance Department Purchase DepartmentManufacturing Quality

Department MS (Mechanical System) division AC(Automotive Components) divisionand DS (Diesel System )

69无锡威孚高科技集团股份有限公司2022年半年度报告全文

division etc. and subsidiaries such as WUXI WEIFU LIDA CATALYTIC CONVERTER CO. LTD NANJING

WFJN CO. LTD IRD Fuel Cells A/S and Borit NV etc.

3. Business nature and major operation activities of the Company

Operation scope of parent company: Technology development and consulting service in the machinery industry;

manufacture of engine fuel oil system products fuel oil system testers and equipment manufacturing of auto

electronic parts automotive electrical components non-standard equipment non-standard knife tool and exhaust

after-treatment system; sales of the general machinery hardware & electrical equipment chemical products & raw

materials (excluding hazardous chemicals) automotive components and vehicles (excluding nine-seat passenger

car); internal combustion engine maintenance; leasing of the own houses; import and export business in respect of

diversified commodities and technologies (other than those commodities and technologies limited or forbidden by

the State for import and export) by self-operation and works as agent for such business. Research and test

development of engineering and technical; R&D of the energy recovery system; manufacture of auto components

and accessories; general equipment manufacturing (excluding special equipment manufacturing) (any projects that

needs to be approved by laws can only be carried out after getting approval by relevant authorities) General items:

engage in investment activities with self-owned funds (except for items subject to approval according to the law

independently carry out business activities according to laws with business licenses )

Major subsidiaries respectively activate in production and sales of engine accessories automotive components

mufflers purifiers and fuel cell components etc.

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

Financial report of the Company were approved by the Board of Directors for reporting dated August 23 2022.

5. Scope of consolidate financial statement

Shareholding ratio Registered

(%) Proportion capital Statement

Short name of

Name of subsidiary of votes (in 10 Business scope consolidate

subsidiary Directly Indirectly (%) thousand (Y/N)

yuan)

Internal-

NANJING WEIFU JINNING CO. LTD. WFJN 80.00 -- 80.00 34628.70 combustion engine Y

accessories

WUXI WEIFU LIDA CATALYTIC CONVERTER Purifier and

WFLD 94.81 -- 94.81 50259.63 Y

CO. LTD. muffler

Internal-

WUXI WEIFU MASHAN FUEL INJECTION

WFMA 100.00 -- 100.00 16500 combustion engine Y

EQUIPMENT CO. LTD.accessories

Internal-

WUXI WEIFU CHANG A?N CO.LTD. WFCA 100.00 -- 100.00 21000 combustion engine Y

accessories

WUXI WEIFU INTERNATIONAL TRADE

WFTR 100.00 -- 100.00 3000 Trade Y

CO.LTD.Internal-

WUXI WEIFU SCHMITTER POWERTRAIN

WFSC 66.00 -- 66.00 7600 combustion engine Y

COMPONENTS CO.LTD.accessories

Internal-

NINGBO WEIFU TIANLI TURBOCHARGING

WFTT 98.83 1.17 100.00 11136 combustion engine Y

TECHNOLOGY CO.LTD.accessories

WUXI WEIFU AUTOCAM PRECISION Automotive

WFAM 51.00 -- 51.00 USD2110 Y

MACHINERY CO.LTD. components

WUXI WEIFU LIDA CATALYTIC CONVERTER WFLD Purifier and

-- 60.00 60.00 1000 Y

(WUHAN) CO. LTD. (WUHAN) muffler

Weifu Lida (Chongqing) Automotive components Co. WFLD Purifier and

-- 100.00 100.00 5000 Y

Ltd. (Chongqing) muffler

Nanchang Weifu Lida Automotive Components Co. WFLD Purifier and

-- 100.00 100.00 5000 Y

Ltd. (Nanchang) muffler

WUXI WEIFU AUTOSMART SEATING SYSTEM

WFAS -- 66.00 66.00 10000 Smart car device Y

CO. LTD.

70无锡威孚高科技集团股份有限公司2022年半年度报告全文

WUXI WEIFU E-DRIVE TECHNOLOGIES CO.WFDT 80.00 -- 80.00 USD2000 Wheel motor Y

LTD.Weifu Holding ApS SPV 100.00 -- 100.00 DKK2425 Investment Y

Fuel cell

IRD Fuel Cells A/S IRD -- 100.00 100.00 DKK10108 Y

components

Fuel cell

IRD FUEL CELLS LLC IRD America -- 100.00 100.00 USD651.91 Y

components

Fuel cell

Borit NV Borit -- 100.00 100.00 EUR1180.96 Y

components

Fuel cell

Borit Inc. Borit America -- 100.00 100.00 USD0.1 Y

components

Fuel cell

Wuxi Weifu Qinglong Power Technology Co. Ltd. WFFC 45.00 30.00 75.00 50000 Y

components

IV. Basis of preparation of financial statements

1. Preparation base

The financial statement were stated in compliance with Accounting Standard for Business Enterprises –Basic Norms

issued by Ministry of Finance the specific 42 accounting rules revised and issued dated 15 February 2006 and later

the Application Instruments of Accounting Standards and interpretation on Accounting standards and other relevant

regulations (together as “Accounting Standards for Business Enterprise”) as well as the Compilation Rules for

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

Report (Amended in 2014) issued by CSRC in respect of the actual transactions and proceedings on a basis of

ongoing operation.In line with relevant regulations of Accounting Standards of Business Enterprise accounting of the Company is on

accrual basis. Except for certain financial instruments the financial statement measured on historical cost. Assets

have impairment been found corresponding depreciation reserves shall accrual according to relevant rules.

2. Going concern

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

sustainable operation ability of the Company within 12 months since end of the reporting period.V. Major Accounting Policies and Estimation

Specific accounting policies and estimation attention:

The Company and its subsidiaries are mainly engaged in the manufacture and sales of engine fuel oil system

products automotive components mufflers purifiers and fuel cell components etc. in line with the actual

operational characteristics and relevant accounting standards many specific accounting policies and estimation have

been formulated for the transactions and events with revenue recognized concerned. As for the explanation on major

accounting judgment and estimation found more in Note V- 36. Other major accounting policies and estimation

1. Statement on observation of Accounting Standard for Business Enterprises

Financial statements prepared by the Company were in accordance with requirements of Accounting Standard for

Business Enterprises which truly and completely reflected the financial information of the Company during the

reporting period such as financial position operation achievements and cash flow.

2. Accounting period

Accounting period of the Company consist of annual and mid-term mid-term refers to the reporting period shorter

71无锡威孚高科技集团股份有限公司2022年半年度报告全文

than one annual accounting year. The company adopts Gregorian calendar as accounting period namely form each

1 January to 31 December.

3. Business cycles

Normal business cycle is the period from purchasing assets used for process by the Company to the cash and cash

equivalent achieved. The Company’s normal business cycle was one-year (12 months).

4. Recording currency

The Company’s reporting currency is the RMB yuan.

5. Accounting Treatment Method for Business Combinations under the same/different control

Business combination is the transaction or events that two or two above independent enterprises combined as a

reporting entity. Business combination including enterprise combined under the same control and business

combined under different control.

(1) The business combination under the same control

Enterprise combination under the same control is the enterprise who take part in the combination are have the same

ultimate controller or under the same controller the control is not temporary. The assets and liability acquired by

combining party are measured by book value of the combined party on combination date. Balance of net asset’s

book value acquired by combining party and combine consideration paid (or total book value of the shares issued)

shall adjusted capital reserve (share premium); if the capital reserves (share premium) is not enough for deducted

adjusted for retained earnings. Vary directly expenses occurred for enterprise combination the combining party

shall reckoned into current gains/losses while occurring. Combination day is the date when combining party

obtained controlling rights from the combined party.

(2) Combine not under the same control

A business combination not involving entities under common control is a business combination in which all of the

combining entities are not ultimately controlled by the same party or parties both before and after the

combination.As a purchaser fair value of the assets (equity of purchaser held before the date of purchasing included)

for purchasing controlling right from the purchaser the liability occurred or undertake on purchasing date less the

fair value of identifiable net assets of the purchaser obtained in combination recognized as goodwill if the results

is positive; if the number is negative the acquirer shall firstly review the measurement of the fair value of the

identifiable assets obtained liabilities incurred and contingent liabilities incurred as well as the combination

costs.After that if the combination costs are still lower than the fair value of the identifiable net assets obtained the

acquirer shall recognize the difference as the profit or loss in the current period.Other directly expenses cost for

combination shall be reckoned into current gains/losses. Difference of the fair value of assets paid and its book

values reckoned into current gains/losses. On purchasing date the identifiable assets liability or contingency of the

purchaser obtained by the Company recognized by fair value that required identification conditions; Acquisition

date refers to the date on which the acquirer effectively obtains control of the purchaser.

6. Preparation method for consolidated financial statement

(1) Recognition principle of consolidated scope

On basis of the financial statement of the parent company and owned subsidiaries prepared consolidated statement

in line with relevant information. The scope of consolidation of consolidated financial statements is ascertained on

the basis of effective control. Once certain elements involved in the above definition of control change due to

72无锡威孚高科技集团股份有限公司2022年半年度报告全文

changes of relevant facts or circumstances the Company will make separate assessment.

(2) Basis of control

Control is the right to govern an invested party so as to obtain variable return through participating in the invested

party’s relevant activities and the ability to affect such return by use of the aforesaid right over the invested

party.Relevant activates refers to activates have major influence on return of the invested party’s.

(3) Consolidation process

Subsidiaries are consolidated from the date on which the company obtains their actual control and are de-

consolidated from the date that such control ceases.All significant inter-group balances investment transactions

and unrealized profits are eliminated in the consolidated financial statements.For subsidiaries being disposed the

operating results and cash flows prior to the date of disposal are included in the consolidated income statement and

consolidated cash flow statement; for subsidiaries disposed during the period the opening balances of the

consolidated balance sheet would not be restated. For subsidiaries acquired from a business combination not under

common control their operating results and cash flows subsequent to the acquisition date are included in the

consolidated income statement and consolidated cash flow statement and the opening balances and comparative

figures of the consolidated balance sheet would not be restated. For subsidiaries acquired from a business

combination under common control their operating results and cash flows from the date of commencement of the

accounting period in which the combination occurred to the date of combination are included in the consolidated

income statement and consolidated cash flow statement and the comparative figures of the consolidated balance

sheet would be restated.In preparing the consolidated financial statements where the accounting policies or the accounting periods are

inconsistent between the company and subsidiaries the financial statements of subsidiaries are adjusted in

accordance with the accounting policies and accounting period of the company.Concerning the subsidiary obtained under combination with different control adjusted several financial statement

of the subsidiary based on the fair value of recognizable net assets on purchased day while financial statement

consolidation; concerning the subsidiary obtained under combination with same control considered current status

of being control by ultimate controller for consolidation while financial statement consolidation.The unrealized gains and losses from the internal transactions occurred in the assets the Company sold to the

subsidiaries fully offset "the net profit attributable to the owners of the parent company". The unrealized gains and

losses from the internal transactions occurred in the assets the subsidiaries sold to the Company are distributed and

offset between "the net profit attributable to the owners of the parent company" and "minority interest" according

to the distribution ratio of the Company to the subsidiary. The unrealized gains and losses from the internal

transactions occurred in the assets sold among the subsidiaries are distributed and offset between "the net profit

attributable to the owners of the parent company" and "minority interest" according to the distribution ratio of the

Company to the subsidiary of the seller.The share of the subsidiary’s ownership interest not attributable to the Company is listed as “minority interest” item

under the ownership interest in the consolidated balance sheet. The share of the subsidiary’s current profit or loss

attributable to the minority interests is listed as "minority interest" item under the net profit item in the consolidated

income statement. The share of the subsidiary’s current consolidated income attributable to the minority interests is

listed as the “total consolidated income attributable to the minority shareholders” item under the total consolidated

income item in the consolidated income statement. If there are minority shareholders add the "minority interests"

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item in the consolidated statement of change in equity to reflect the changes of the minority interests. If the losses

of the current period shared by a subsidiary’s minority shareholders exceed the share that the minority shareholders

hold in the subsidiary ownership interest in the beginning of the period the balance still charges against the minority

interests.When the control over a subsidiary is ceased due to disposal of a portion of an interest in a subsidiary the fair value

of the remaining equity interest is re-measured on the date when the control ceased. The difference between the sum

of the consideration received from disposal of equity interest and the fair value of the remaining equity interest less

the net assets attributable to the company since the acquisition date is recognized as the investment income from

the loss of control. Other comprehensive income relating to original equity investment in subsidiaries shall be treated

on the same basis as if the relevant assets or liabilities were disposed of by the purchaser directly when the control

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

from re-measuring net liabilities or net assets under defined benefit scheme by the original subsidiary. Subsequent

measurement of the remaining equity interests shall be in accordance with relevant accounting standards such as

Accounting Standards for business Enterprises 2 – Long-term Equity Investments or Accounting Standards for

business Enterprises 22 – Financial Instruments Recognition and Measurement.The company shall determine whether loss of control arising from disposal in a series of transactions should be

regarded as a bundle of transactions. When the economic effects and terms and conditions of the disposal

transactions met one or more of the following situations the transactions shall normally be accounted for as a bundle

of transactions: * The transactions are entered into after considering the mutual consequences of each individual

transaction; * The transactions need to be considered as a whole in order to achieve a deal in commercial

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

transactions in the series; * The result of an individual transaction is not economical but it would be economical

after taking into account of other transactions in the series. When the transactions are not regarded as a bundle oftransactions the individual transactions shall be accounted as “disposal of a portion of an interest in a subsidiarywhich does not lead to loss of control” and “disposal of a portion of an interest in a subsidiary which lead to loss ofcontrol”. When the transactions are regarded as a bundle of transactions the transactions shall be accounted as a

single disposal transaction; however the difference between the consideration received from disposal and the share

of net assets disposed in each individual transactions before loss of control shall be recognized as other

comprehensive income and reclassified as profit or loss arising from the loss of control when control is lost.

7. Joint arrangement classification and accounting treatment for joint operations

In accordance with the Company’s rights and obligation under a joint arrangement the Company classifies joint

arrangements into: joint ventures and joint operations.The Company confirms the following items related to the share of interests in its joint operations and in accordance

with the provisions of the relevant accounting standards for accounting treatment:

(1) Recognize the assets held solely by the Company and recognize assets held jointly by the Company in

appropriation to the share of the Company;

(2) Recognize the obligations assumed solely by the Company and recognize obligations assumed jointly by the

Company in appropriation to the share of the Company;

(3) Recognize revenue from disposal of the share of joint operations of the Company;

(4) Recognize fees solely occurred by Company;

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(5) Recognize fees from joint operations in appropriation to the share of the Company.

8. Recognition standards for cash and cash equivalent

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

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

amount and investment with minor variation in risks.

9. Foreign currency business and conversion

The occurred foreign currency transactions are converted into the recording currency in accordance with the middle

rate of the market exchange rate published by the People's Bank of China on the transaction date. There into the

occurred foreign currency exchange or transactions involved in the foreign currency exchange are converted in

accordance with the actual exchange rate in the transactions.At the balance sheet date the account balance of the foreign currency monetary assets and liabilities is converted

into the recording currency amountin accordance with the middle rate of the market exchange rate published by the

People's Bank of China on the transaction date. The balance between the recording currency amount converted

according toexchange rate at the balance sheet date and the original recording currency amount is disposed as the

exchange gains or losses. There into theexchange gains or lossesoccurred in the foreign currency loans related to

the purchase and construction of fixed assets are disposed according to the principle of capitalization of borrowing

costs; the exchange gains and losses occurred during the start-up are included in the start-up costs; the rest is

included in the current financial expenses.At the balance sheet date the foreign currency non-monetary itemsmeasured withthe historical costs are convertedin

accordance with the middle rate of the market exchange rate published by the People's Bank of China on the

transaction datewithout changing its original recording currency amount; the foreign currency non-monetary

itemsmeasured with the fair value are convertedin accordance with the middle rate of the market exchange rate

published by the People's Bank of China on the fair value dateand the generated exchange gains and losses are

included in the current profits and losses as the gains and losses from changes in fair value.The following displays the methods for translating financial statements involving foreign operations into the

statements in RMB: The asset and liability items in the balance sheets for overseas operations are translated at thespot exchange rates on the balance sheet date. Among the owners’ equity items the items other than “undistributedprofits” are translated at the spot exchange rates of the transaction dates. The income and expense items in the

income statements of overseas operations are translated at the average exchange rates of the transaction dates.The

exchange difference arising from the above mentioned translation are recognized in other comprehensive income

and is shown separately under owner’ equity in the balance sheet; such exchange difference will be reclassified to

profit or loss in current year when the foreign operation is disposed according to the proportion of disposal.The cash flows of overseas operations are translated at the average exchange rates on the dates of the cash flows.The effect of exchange rate changes on cash is presented separately in the cash flow statement.

10. Financial instrument

Financial instrument is the contract that taken shape of the financial asses for an enterprise and of the financial

liability or equity instrument for other units.

(1) Recognition and termination of financial instrument

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

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The recognition of a financial assets shall be terminated if it meets one of the following conditions:

* the contractual right to receive the cash flow of the financial assets terminates; and

* the financial assets is transferred and the company transfers substantially all the risks and rewards of ownership

of the financial asset to the transferring party;

* the financial asset was transferred and control although the company has neither transferred nor retained almost

all the risks and rewards of the ownership of a financial asset it relinquishes control over the financial asset.If all or part of the current obligations of a financial liability has been discharged the financial liability or part of it

is terminated for recognition. When the Company (debtor) and the creditor sign an agreement to replace the existing

financial liabilities with new financial liabilities and the new financial liabilities and the existing financial liabilities

are substantially different from the contract terms terminated the recognition of the existing financial liabilities and

recognize the new financial liabilities at the same time.Financial assets are traded in the normal way and their accounting recognition and terminated the recognition of

proceed on a trade date basis.

(2) Classification and measurement of financial assets

At the initial recognition according to the business model of managing financial assets and the contractual cash

flow characteristics of financial assets the Company classifies the financial assets into the financial assets measured

at amortized cost the financial assets measured at fair value and whose changes are included in other comprehensive

income and the financial assets measured at fair value and whose changes are included in current profit or loss.Financial assets are measured at fair value at initial recognition but if the receivables or receivables financing

arising from the sale of goods or the provision of services do not include a significant financing component or do

not consider a financing component that does not exceed one year it shall be initially measured in accordance with

the transaction value. For financial assets measured at fair value and whose changes are included in the current

profit or loss related transaction costs are directly included in the current profit and loss; for other types of financial

assets related transaction costs are included in the initially recognized amount.The business model for managing financial assets refers to how the Company manages financial assets to generate

cash flows. The business model determines whether the cash flow of financial assets managed by the Company is

based on contract cash flow selling financial assets or both. The Company determines the business model for

managing financial assets based on objective facts and based on the specific business objectives of financial assets

management determined by key management personnel.The Company evaluates the contractual cash flow characteristics of financial assets to determine whether the

contractual cash flows generated by the relevant financial assets on a specific date are only payments for the

principal and the interest based on the outstanding principal amount. The principal is the fair value of the financial

assets at initial recognition; the interest includes the time value of money the credit risk associated with the

outstanding principal amount for a specific period and other basic borrowing risks costs and consideration of profit.In addition the Company evaluates the contractual terms that may result in changes in the time distribution or the

amount of contractual cash flows of the financial assets to determine whether they meet the requirements of the

above contractual cash flow characteristics.Only when the Company changes its business model of managing financial assets all affected financial assets are

reclassified on the first day of the first reporting period after the business model changes otherwise the financial

assets are not allowed to be reclassified after initial recognition.

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* Financial assets measured at amortized cost

The Company classifies the financial assets that meet the following conditions and haven’t been designated as

financial assets measured at fair value and whose changes are included in current profit or loss as financial assets

measured at amortized cost:

A. the group's business model for managing the financial assets is to collect contractual cash flows; and

B. the contractual terms of the financial assets stipulate that cash flow generated on a specific date is only paid for

the principal and interest based on the outstanding principal amount.After initial recognition such financial assets are measured at amortized cost by using the effective interest method.Gains or losses arising from financial assets which are measured at amortized cost and are not a component of any

hedging relationship are included in current profit or loss when being terminated for recognition amortized by

effective interest method or impaired.* Financial assets measured at fair value and whose changes are included in other comprehensive income

The Company classifies the financial assets that meet the following conditions and haven’t been designated as

financial assets measured at fair value and whose changes are included in current profit or loss as financial assets

measured at fair value and whose changes are included in other comprehensive income:

A. the Group's business model for managing the financial assets is targeted at both the collection of contractual cash

flows and the sale of financial assets; and

B. the contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only the

payment of the principal and the interest based on the outstanding principal amount.After initial recognition such financial assets are subsequently measured at fair value. Interests impairment losses

or gains and exchange gains and losses calculated by using the effective interest method are included in profit or

loss for the period and other gains or losses are included in other comprehensive income. When being terminate for

recognition the accumulated gains or losses previously included in other comprehensive income are transferred

from other comprehensive income and included in current profit or loss.* Financial assets measured at fair value and whose changes are included in current profit or loss

Except for the above financial assets measured at amortized cost and measured at fair value and whose changes are

included in other comprehensive income the Company classifies all other financial assets as financial assets

measured at fair value and whose changes are included in current profit or loss. In the initial recognition in order

to eliminate or significantly reduce accounting mismatch the Company irreversibly designates part of the financial

assets that should be measured at amortized cost or measured at fair value and whose changes are included in the

other comprehensive income as the financial assets measured at fair value and whose changes are included in current

profit or loss.After the initial recognition such financial assets are subsequently measured at fair value and the gains or losses

(including interests and dividend income) are included in the current profit and loss unless the financial assets are

part of the hedging relationship.However for non-trading equity instrument investments the Company irreversibly designates them as the financial

assets that are measured at fair value and whose changes are included in other comprehensive income in the initial

recognition. The designation is made based on a single investment and the relevant investment is in line with the

definition of equity instruments from the issuer's perspective. After initial recognition such financial assets are

subsequently measured at fair value. Dividend income that meets the conditions is included in profit or loss and

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other gains or losses and changes in fair value are included in other comprehensive income. When it is terminated

for recognition the accumulated gains or losses previously included in other comprehensive income are transferred

from other comprehensive income and included in retained earnings.

(3) Classification and measurement of financial liabilities

The financial liabilities of the Company are classified as financial liabilities measured at fair value and whose

changes are included in current profit or loss and financial liabilities measured at amortized cost at the initial

recognition. For financial liabilities that are not classified as financial liabilities measured at fair value and whose

changes are included in current profit or loss the related transaction expenses are included in the initial recognition

amount.* Financial liability measured by fair value and with variation reckoned into current gains/losses

Financial liability measured by fair value and with variation reckoned into current gains/losses including tradable

financial liability and the financial liabilities that are designated as fair value in the initial recognition and whose

changes are included in current profit or loss. For such financial liabilities the subsequent measurement is based on

fair value and the gains or losses arising from changes in fair value and the dividends and interest expenses related

to these financial liabilities are included in current profit or loss.* Financial liability measured by amortized cost

Other financial liabilities are subsequently measured at amortized cost by using the effective interest method. The

gain or loss arising from recognition termination or amortization is included in current profit or loss.* Distinctions between financial liabilities and equity instruments

Financial liabilities are liabilities that meet one of the following conditions:

A. Contractual obligations to deliver cash or other financial assets to other parties.B. Contractual obligations to exchange financial assets or financial liabilities with other parties under potentially

adverse conditions.C. Non-derivative contracts that must be settled or that can be settled by the company's own equity instruments in

the future and the enterprise will deliver a variable amount of its own equity instruments according to the contract.D. Derivative contracts that must be settled or that can be settled by the company's own equity instruments in the

future except for derivatives contracts that exchange a fixed amount of cash or other financial assets with a fixed

amount of their own equity instruments.An equity instrument is a contract that proves it has a residual equity in the assets of an enterprise after deducting

all liabilities.If the Company cannot unconditionally avoid performing a contractual obligation by delivering cash or other

financial assets the contractual obligation is consistent with the definition of financial liability.If a financial instrument is required to be settled or can be settled by the Company's own equity instruments it is

necessary to consider whether the Company's own equity instruments used to settle the instrument are a substitute

for cash or other financial assets or to make the instrument holder enjoy the residual equity in the assets of the

issuer after deducting all liabilities. In the former case the instrument is the Company's financial liability; if it is the

latter the instrument is the Company's equity instrument.

(4) Fair value of financial instruments

The company uses valuation techniques that are applicable under current circumstances and that have sufficient

available data and other information support to determine the fair value of related financial assets and financial

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liabilities. The company divides the input values used by valuation techniques into the following levels and uses

them in sequence:

* The first-level input value is the unadjusted quotation of the same assets or liabilities that can be obtained on the

measurement date in the active market;

* The second-level input value is the direct or indirect observable input value of the relevant assets or liabilities

other than the first-level input value including quotations of similar assets or liabilities in an active market;

quotations of same or similar assets or liabilities in an active market; other observable input value other than

quotations such as interest rate and yield curves that are observable during the normal quote interval; market-

validated input value etc.;

* The third-level input value is the unobservable input value of the relevant assets or liabilities including the

interest rate that cannot be directly observed or cannot be verified by observable market data stock volatility future

cash flow of the retirement obligation assumed in the business combination and financial forecasting made by its

own data etc.

(5) Impairment of financial assets

On the basis of expected credit losses the Company performs impairment treatment on financial assets measured

at amortized cost and creditors’ investmentetc. measured at fair value and whose changes are included in other

comprehensive income and recognize the provisions for loss.* Measurement of expected credit losses

Expected credit loss refers to the weighted average of credit losses of financial instruments weighted by the risk of

default. Credit loss refers to the difference between all contractual cash flows that the Company discounts at the

original actual interest rate and are receivable in accordance with contract and all cash flows expected to be received

that is the present value of all cash shortages. Among them for the purchase or source of financial assets that have

suffered credit impairment the Company discounts the financial assets at the actual interest rate adjusted by credit.When measuring expected credit losses the Company individually evaluates credit risk for financial assets with

significantly different credit risks such as receivables involving litigation and arbitration with the other party or

receivables having obvious indications that the debtor is likely to be unable to fulfill its repayment obligations and

so on.Except for the financial assets that separately assess the credit risks the Company classified the account receivable

according to their characteristic of risks calculated the expected credit losses on basis of portfolio. Basis for

determining the portfolio as follow:

A - Note receivable

Note receivable1: bank acceptance

Note receivable2: trade acceptance

B - Account receivable

Account receivable 1: receivable from clients

Account receivable 2: receivable from internal related party

C- Receivable financing

Receivable financing 1: bank acceptance

Receivable financing 2: trade acceptance

D- Other account receivables

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Other account receivables 1: receivable from internal related party

Other account receivables 2: receivable from others

As for the note receivable account receivable receivable financing and other account receivable classified in

portfolio by referring to the experience of historical credit loss the expected credit loss is calculated by combining

the current situation and the forecast of future economic conditions.Except for the financial assets adopting simplified metering method the Company assesses at each balance sheet

date whether its credit risk has increased significantly since initial recognition. If credit risk has not increased

significantly since initial recognition it is in the first stage the Company measures the loss provisions based on the

amount equivalent to the expected credit loss in the next 12 months; if the credit risk has increased significantly

since initial recognition but no credit impairment has occurred it is in the second stage the Companymeasures the

loss provisions based on the amount equivalent to the expected credit loss for the entire duration; if credit

impairment occurs after initial recognition it is in the third stage the Companymeasures the loss provisions based

on the amount equivalent to the expected credit loss for the entire duration.For financial instruments with low credit

risks at the balance sheet date the Company assumes that their credit risks have not increased significantly since

initial recognition.The Company evaluates the expected credit losses of financial instruments based on individual items and

portfolios.When assessing expected credit losses the Company considers reasonable and evidence-based

information about past events current conditions and forecasts of future economic conditions.When the Company no longer reasonably expects to be able to fully or partially recover the contractual cash flow

of a financial asset the Company directly writes down the book balance of the financial asset.* Assessment of a significant increase in credit risk:

The Company determines the relative changes in default risk of the financial instrument occurred in the expected

duration and assess whether the credit risks offinancial instrument has increased significantly since the initial

recognition by comparing the risk of default of the financial instrument on the balance sheet date with the risk of

default offinancial instrument on the initial recognition date. When determining whether the credit risk has increased

significantly since the initial recognition the Company considers reasonable and evidence-based information that

can be obtained without unnecessary additional costs or effort including forward-looking information. The

information considered by the Company includes:

A. The debtor fails to pay the principal and interest according to the contractual maturity date;

B. Serious worsening of external or internal credit rating (if any) of the financial instruments that have occurred or

are expected;

C. Serious deterioration of the debtor’s operating results that have occurred or are expected;

D. Changes in existing or anticipated technical market economic or legal circumstances that will have a material

adverse effect on the debtor's ability to repay the company.Based on the nature of financial instruments the Company assesses whether credit risk has increased significantly

on the basis of a single financial instrument or combination of financial instruments. When conducting an

assessment based on a combination of financial instruments the Company can classify financial instruments based

on common credit risk characteristics such as overdue information and credit risk ratings.The Company believes that financial assets are subject to default in the following circumstances:

The debtor is unlikely to pay the full amount to the Company and the assessment does not consider the Company

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to take recourse actions such as realizing collateral (if held).* Financial assets with credit impairment

On the balance sheet date the Company assesses whether the credit of financial assets measured at amortized cost

and the credit of debt investments measured at fair value and whose changes are included in other comprehensive

income has been impaired. When one or more events that adversely affect the expected future cash flows of a

financial asset occur the financial asset becomes a financial asset that has suffered credit impairment. Evidence that

credit impairment has occurred in financial assets includes the following observable information:

A. The issuer or the debtor has significant financial difficulties;

B. The debtor breaches the contract such as default or overdue repayment of interest or principal;

C. The Company gives concessions to the debtor that will not be made in any other circumstances for economic or

contractual considerations relating to the financial difficulties of the debtor;

D. The debtor is likely to go bankrupt or carry out other financial restructurings;

E. The financial difficulties of the issuer or the debtor have caused the active market of the financial asset to

disappear.* Presentation of expected credit loss provisions

In order to reflect the changes in the credit risk of financial instruments since the initial recognition the Company

re-measures the expected credit losses on each balance sheet date and the resulting increase or reversal of the loss

provisions shall be included in current profit and loss as impairment losses or gains. For financial assets measured

at amortized cost the loss provisions are written off against the book value of the financial assets listed in the

balance sheet; for debt investments measured at fair value and whose changes are included in other comprehensive

income the Company recognizes the loss provisions in other comprehensive income and does not deduct the book

value of the financial asset.* Write-off

If the Company no longer reasonably expects that the financial asset contract cash flow can be fully or partially

recovered directly write down the book balance of the financial asset. Such write-downs constitute the termination

of recognition for related financial assets. This usually occurs when the Company determines that the debtor has no

assets or sources of income to generate sufficient cash flow to repay the amount that will be written down. However

according to the Company's procedures for recovering the due amount the financial assets that have been written

down may still be affected by the execution activities.If the financial assets that have been written down are recovered afterwards they shall be included in the profit or

loss of the period being recovered as the reversal of the impairment loss

(6) Transfer of financial assets

The transfer of financial assets refers to the transfer or delivery of financial assets to the other party (the transferee)

other than the issuer of the financial assets.For financial assets that the Company has transferred almost all risks and rewards of ownership of financial assets

to the transferee terminate the recognition of the financial assets; if almost all the risks and rewards of ownership

of financial assets have been retained do not terminate the recognition of the financial assets.If the Company has neither transferred nor retained almost all the risks and rewards of ownership of financial assets

dispose as following situations: If the control of the financial assets is abandoned terminate the recognition of the

financial assets and determine the resulting assets and liabilities. If the control of the financial assets is not

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abandoned determine the relevant financial assets according to the extent to which they continue to be involved in

the transferred financial assets and determine the related liabilities accordingly.

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

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

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

assets and liabilities are listed in the balance sheet without being balanced out.

11. Note receivable

Note receivable 1: bank acceptance

Note receivable 2: trade acceptance

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

current conditions and forecasts of the future economic situation.

12.Account receivable

Account receivable 1: receivable from clients

Account receivable 2: receivable from internal related party

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

current conditions and forecasts of the future economic situation.

13.Account receivable financing

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

other comprehensive income are classified as receivables financing within one year(including one year) from the

date of acquisition. Relevant accounting policy found more in 10. Financial Instrument in Note V.

14.Other account receivables

Determination method of expected credit loss and accounting treatment

Other account receivables 1: receivable from internal related party

Other account receivables 2: receivable from others

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

current conditions and forecasts of the future economic situation.

15.Inventory

(1) Classification of inventories

The Company’s inventories are categorized into stock materials product in process and stock goods etc.

(2) Pricing for delivered inventories

The cost of inventory at the time of acquisition and delivery is calculated according to the standard cost method

and the difference in cost that it should bear is carried forward at the end of the period and the standard cost is

adjusted to the actual cost.

(3) Recognition evidence for net realizable value of inventories and withdrawal method for inventory impairment

provision

Inventories as at period-end are priced at the lower of costs and net realizable values; at period end on the basis of

overall clearance about inventories inventory impairment provision is withdrew for uncollectible part of costs of

inventories which result from destroy of inventories out-of-time of all and part inventories or sales price lowering

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than cost. Inventory impairment provision for stock goods and quantity of raw materials is subject to the difference

between costs of single inventory item over its net realizable value. As for other raw materials with large quantity

and comparatively low unit prices inventory impairment provision is withdrawn pursuant to categories.As for finished goods commodities and materials available for direct sales their net realizable values are determined

by their estimated selling prices less estimated sales expenses and relevant taxes. For material inventories held for

purpose of production their net realizable values are determined by the estimated selling prices of finished products

less estimated costs estimated sales expenses and relevant taxes accumulated till completion of production. As for

inventories held for implementation of sales contracts or service contracts their net realizable values are calculated

on the basis of contract prices. In the event that inventories held by a company exceed order amount as agreed in

sales contracts net realizable values of the surplus part are calculated on the basis of normal sale price.

(4) Inventory system

Perpetual Inventory System is adopted by the Company and takes a physical inventory.

(5) Amortization of low-value consumables and wrappage

* Low-value consumables

The Company adopts one-off amortization method to amortize the low-value consumables.* Wrappage

The Company adopts one-off amortization method to amortize the wrappage at the time of receipt.

16.Contractual assets

The Company presents the Contractual assets or Contractual liability in the balance sheet based on the relationship

between the performance obligation and the customer’s payment.Recognition method and standard of Contractual assets: Contractual assets refer to the right of a company to receive

consideration after transferring goods or providing services to customers and this right depends on other factors

besides the passage of time. The company's unconditional (that is only depending on the passage of time) right to

collect consideration from customers are separately listed as receivables.Method for determining expected credit losses of Contractual assets: the method for determining expected credit

losses of Contractual assets is consistent with the method for determining expected credit losses of accounts

receivable.Accounting treatment method of expected credit losses of Contractual assets: if the Contractual assets are impaired

the company shall debit the "asset impairment loss" subject and credit the "contract asset impairment provision"

subject according to the amount that should be written down. When reversing the provision for asset impairment

that has already been withdrawn make opposite accounting entries.

17.Assets held for sale

The Company classifies non-current assets or disposal groups that meet all of the following conditions as held-for-

sale: according to the practice of selling this type of assets or disposal groups in a similar transaction the non-

current assets or disposal group can be sold immediately at its current condition; The sale is likely to occur that is

the Company has made resolution on the selling plan and obtained definite purchase commitment the selling is

estimated to be completed within one year. Those assets whose disposal is subject to approval from relevant

authority or supervisory department under relevant requirements are subject to that approval.Where the Company loses control over its subsidiary due to disposal of investment in the subsidiary whether or not

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the Company retains part equity investment after such disposal investment in the subsidiary shall be classified in

its entirety as held for sale in the separate financial statement of the parent company subject to that the investment

in the subsidiary proposed to be disposed satisfies the conditions for being classified as held for sale and all the

assets and liabilities of the subsidiary shall be classified as held for sale in consolidated financial statement.The purchase commitment identified refers to the legally binding purchase agreement entered into between the

Company and other parties which sets out certain major terms relating to transaction price time and adequately

stringent punishment for default which render an extremely minor possibility for material adjustment or revocation

of the agreement.Assets held for sale are measured at the lower of heir carrying value and fair value less selling expense. If the

carrying value is higher than fair value less selling expense the excess shall be recognized as impairment loss and

recorded in profit or loss for the period and allowance for impairment shall be provided for in respect of the assets.In respect of impairment loss recognized for disposal group held for sale carrying value of the goodwill in the

disposal group shall be deducted first and then deduct the carrying value of the non-current assets within the

disposal group applicable to this measurement standard on a pro rata basis according to the proportion taken by their

carrying value.If the net amount of fair value of non-current assets held for sale less sales expense on subsequent balance sheet

date increases the amount previously reduced for accounting shall be recovered and reverted from the impairment

loss recognized after the asset is classified under the category of held for sale with the amount reverted recorded in

profit or loss for the period. Impairment loss recognized before the asset is classified under the category of held for

sale shall not be reverted.If the net amount of fair value of the disposal group held for sale on the subsequent balance

sheet date less sales expenses increases the amount reduced for accounting in previous periods shall be restored

and shall be reverted in the impairment loss recognized in respect of the non-current assets which are applicable to

relevant measurement provisions after classification into the category of held for sale with the reverted amount

charged in profit or loss for the current period. The written-off carrying value of goodwill shall not be reverted.The non-current assets in the non-current assets or disposal group held for sale is not depreciated or amortized and

the debt interests and other fees in the disposal group held for sale continue to be recognized.If the non-current assets or disposal group are no longer classified as held for sale since they no longer meet the

condition of being classified as held for sale or the non-current assets are removed from the disposal group held for

sale they will be measured at the lower of the following:

(i)The amount after their book value before they are classified as held for sale is adjusted based on the depreciation

amortization or impairment that should have been recognized given they are not classified as held for sale;

(ii) The recoverable amount.

18.Long-term equity investment

Long-term equity investments refer to long-term equity investments in which the Company has control joint control

or significant influence over the invested party. Long-term equity investment without control or joint control or

significant influence of the Group is accounted for as available-for-sale financial assets or financial assets measured

by fair value and with variation reckoned into current gains/losses. As for other accounting policies found more in

“10. Financial instrument” in Note V.

(1) Determination of initial investment cost

Investment costs of the long-term equity investment are recognized by the follow according to different way of

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acquirement:

* For a long-term equity investment acquired through a business combination involving enterprises under common

control the initial investment cost of the long-term equity investment shall be the absorbing party’s share of the

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

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

paid non-cash assets transferred as well as the book value of the debts borne by the absorbing party shall offset

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

the consideration of the merger is satisfied by issue of equity securities the initial investment cost of the long-term

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

consolidated financial statements of the ultimate controlling party on the date of combination. With the total face

value of the shares issued as share capital the difference between the initial cost of the long-term equity investment

and total face value of the shares issued shall be used to offset against the capital reserve. If the capital reserve is

insufficient to offset the retained earnings shall be adjusted. For business combination resulted in an enterprise

under common control by acquiring equity of the absorbing party under common control through a stage-upapproach with several transactions these transactions will be judged whether they shall be treat as “transactions ina basket”. If they belong to “transactions in a basket” these transactions will be accounted for a transaction in

obtaining control. If they are not belong to “transactions in a basket” the initial investment cost of the long-term

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

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

between the initial cost of the long-term equity investment and the aggregate of the carrying amount of the long-

term equity investment before merging and the carrying amount the additional consideration paid for further share

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

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

held equity investment accounted for using equity method on the date of combination or recognized for available-

for-sale financial assets will not be accounted for.* For the long-term equity investment obtained by business combination not under the same control the fair value

of the assets involved the equity instruments issued and the liabilities incurred or assumed on the transaction date

plus the combined cost directly related to the acquisition is used as the initial investment cost of the long-term equity

investment. The identifiable assets of the combined party and the liabilities (including contingent liabilities)

assumed by the combined party on the combining date are all measured at fair value regardless of the amount of

minority shareholders’ equity. The amount of the combined cost exceeding the fair value of the identifiable net

assets of the combined party obtained by the Company is recorded as goodwill and the amount below the fair value

of the identifiable net assets of the combining party is directly recognized in the consolidated income statement.(For

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

common control through a stage-up approach with several transactions these transactions will be judged whether

they shall be treat as “transactions in a basket”. If they belong to “transactions in a basket” these transactions will

be accounted for a transaction in obtaining control. If they are not belong to “transactions in a basket” the initial

investment cost of the long-term equity investment accounted for using cost method shall be the aggregate of the

carrying amount of equity investment previously held by the acquire and the additional investment cost. For

previously held equity accounted for using equity method relevant other comprehensive income will not be

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accounted for. For previously held equity investment classified as available-for-sale financial asset the difference

between its fair value and carrying amount as well as the accumulated movement in fair value previously included

in the other comprehensive income shall be transferred to profit or loss for the current period.)

* Long-term investments obtained through other ways:

A. Initial investment cost of long-term equity investment obtained through cash payment is determined according

to actual payment for purchase;

B. Initial investment cost of long-term equity investment obtained through issuance of equity securities is

determined at fair value of such securities;

C. Initial investment cost of long-term equity investment (exchanged-in) obtained through exchange with non-

monetary assets which is of commercial nature is determined at fair value of the assets exchanged-out; otherwise

determined at carrying value of the assets exchanged-out if it is not of commercial nature;

D. Initial investment cost of long-term equity investment obtained through debt reorganization is determined at fair

value of such investment.

(2) Subsequent measurement on long-term equity investment

* Presented controlling ability on invested party the investment shall use cost method for measurement.* Long-term equity investments with joint control (excluding those constitute joint ventures) or significant

influence on the invested party are accounted for using equity method.Under the equity method where the initial investment cost of a long-term equity investment exceeds the investor’s

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

made to the initial investment cost. Where the initial investment cost is less than the investor’s interest in the fair

value of the invested party’s identifiable net assets at the acquisition date the difference shall be charged to profit

or loss for the current period and the cost of the long term equity investment shall be adjusted accordingly.Under the equity method investment gain and other comprehensive income shall be recognized based on the

Group’s share of the net profits or losses and other comprehensive income made by the invested party respectively.Meanwhile the carrying amount of long-term equity investment shall be adjusted. The carrying amount of long-

term equity investment shall be reduced based on the Group’s share of profit or cash dividend distributed by the

invested party. In respect of the other movement of net profit or loss other comprehensive income and profit

distribution of invested party the carrying value of long-term equity investment shall be adjusted and included in

the capital reserves. The Group shall recognize its share of the invested party’s net profits or losses based on the

fair values of the invested party’s individual separately identifiable assets at the time of acquisition after making

appropriate adjustments thereto. In the event of in-conformity between the accounting policies and accounting

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

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

comprehensive income shall be recognized accordingly. In respect of the transactions between the Group and its

associates and joint ventures in which the assets disposed of or sold are not classified as operation the share of

unrealized gain or loss arising from inter-group transactions shall be eliminated by the portion attributable to the

Company. Investment gain shall be recognized accordingly. However any unrealized loss arising from inter-group

transactions between the Group and an invested party is not eliminated to the extent that the loss is impairment loss

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

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

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

in profit or loss for the current period. In the event that the Group sold an asset classified as operation to its associates

or joint ventures the difference between the carrying value of consideration received and operation shall be fully

included in profit or loss for the current period. In the event that the Company acquired an asset which formed an

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

“Accounting Standards for Business Enterprises No. 20 “Business combination”. All profit or loss related to the

transaction shall be accounted for.The Group’s share of net losses of the invested party shall be recognized to the extent that the carrying amount of

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

net investment in the invested party are reduced to zero. If the Group has to assume additional obligations the

estimated obligation assumed shall be provided for and charged to the profit or loss as investment loss for the period.Where the invested party is making profits in subsequent periods the Group shall resume recognizing its share of

profits after setting off against the share of unrecognized losses.* Acquisition of minority interest

Upon the preparation of the consolidated financial statements since acquisition of minority interest increased of

long-term equity investment which was compared to fair value of identifiable net assets recognized which are

measured based on the continuous measurement since the acquisition date (or combination date) of subsidiaries

attributable to the Group calculated according to the proportion of newly acquired shares the difference of which

recognized as adjusted capital surplus capital surplus insufficient to set off impairment and adjusted retained

earnings.* Disposal of long-term equity investments

In these consolidated financial statements for disposal of a portion of the long-term equity investments in a

subsidiary without loss of control the difference between disposal cost and disposal of long-term equity investments

relative to the net assets of the subsidiary is charged to the owners’ equity. If disposal of a portion of the long-term

equity investments in a subsidiary by the parent company results in a change in control it shall be accounted for inaccordance with the relevant accounting policies as described in Note V.-6 “Preparation Method of the ConsolidatedFinancial Statements”.On disposal of a long-term equity investment otherwise the difference between the carrying amount of the

investment and the actual consideration paid is recognized through profit or loss in the current period.In respect of long-term equity investment accounted for using equity method with the remaining equity interest after

disposal also accounted for using equity method other comprehensive income previously under owners’ equity

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

liability by invested party on pro rata basis at the time of disposal. The owners’ equity recognized for the movement

of other owners’ equity (excluding net profit or loss other comprehensive income and profit distribution of invested

party) shall be transferred to profit or loss for the current period on pro rata basis.In respect of long-term equity investment accounted for using cost method with the remaining equity interest after

disposal also accounted for cost equity method other comprehensive income measured and reckoned under equity

method or financial instrument before control of the invested party unit acquired shall be accounted for in

accordance with the same accounting treatment for direct disposal of relevant asset or liability by invested party on

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pro rata basis at the time of disposal and shall be transferred to profit or loss for the current period on pro rata basis;

among the net assets of invested party unit recognized by equity method (excluding net profit or loss other

comprehensive income and profit distribution of invested party) shall be transferred to profit or loss for the current

period on pro rata basis.In the event of loss of control over invested party due to partial disposal of equity investment by the Group in

preparing separate financial statements the remaining equity interest which can apply common control or impose

significant influence over the invested party after disposal shall be accounted for using equity method. Such

remaining equity interest shall be treated as accounting for using equity method since it is obtained and adjustment

was made accordingly. For remaining equity interest which cannot apply common control or impose significant

influence over the invested party after disposal it shall be accounted for using the recognition and measurement

standard of financial instruments. The difference between its fair value and carrying amount as at the date of losing

control shall be included in profit or loss for the current period. In respect of other comprehensive income recognized

using equity method or the recognition and measurement standard of financial instruments before the Group

obtained control over the invested party it shall be accounted for in accordance with the same accounting treatment

for direct disposal of relevant asset or liability by invested party at the time when the control over invested party is

lost. Movement of other owners’ equity (excluding net profit or loss other comprehensive income and profit

distribution under net asset of invested party accounted for and recognized using equity method) shall be transferred

to profit or loss for the current period at the time when the control over invested party is lost. Of which for the

remaining equity interest after disposal accounted for using equity method other comprehensive income and other

owners’ equity shall be transferred on pro rata basis. For the remaining equity interest after disposal accounted for

using the recognition and measurement standard of financial instruments other comprehensive income and other

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

investment by the Group the remaining equity interest after disposal shall be accounted for using the recognition

and measurement standard of financial instruments. The difference between its fair value and carrying amount as at

the date of losing common control or significant influence shall be included in profit or loss for the current period.In respect of other comprehensive income recognized under previous equity investment using equity method it

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

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

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

accounted for and recognized using equity method) shall be transferred to profit or loss for the current period at the

time when equity method was ceased to be used.The Group disposes its equity investment in subsidiary by a stage-up approach with several transactions until the

control over the subsidiary is lost. If the said transactions belong to “transactions in a basket” each transaction shall

be accounted for as a single transaction of disposing equity investment of subsidiary and loss of control. The

difference between the disposal consideration for each transaction and the carrying amount of the corresponding

long-term equity investment of disposed equity interest before loss of control shall initially recognized as other

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

period upon loss of control.

(3) Impairment test method and withdrawal method for impairment provision

88无锡威孚高科技集团股份有限公司2022年半年度报告全文Found more in Note V-25.”impairment of long-term assets”

(4) Criteria of Joint control and significant influence

Joint control is the Company’s contractually agreed sharing of control over an arrangement which relevant activities

of such arrangement must be decided by unanimously agreement from parties who share control. All the participants

or participant group whether have controlling over such arrangement as a group or not shall be judge firstly than

judge that whether the decision-making for such arrangement are agreed unanimity by the participants or not.Significant influence is the power of the Company to participate in the financial and operating policy decisions of

an invested party but to fail to control or joint control the formulation of such policies together with other

parties.While recognizing whether have significant influence by invested party the potential factors of voting power

as current convertible bonds and current executable warrant of the invested party held by investors and other parties

shall be thank over.

19.Investment real estate

Measurement model of investment real estate

Cost measurement

Depreciation or amortization

Investment real estate is stated at cost. During which the cost of externally purchased properties held-for-investment

includes purchasing price relevant taxes and surcharges and other expenses which are directly attributable to the

asset. Cost of self construction of properties held for investment is composed of necessary expenses occurred for

constructing those assets to a state expected to be available for use. Properties held for investment by investors are

stated at the value agreed in an investment contract or agreement but those under contract or agreement without

fair value are stated at fair value.The Company adopts cost methodology amid subsequent measurement of properties held for investment while

depreciation and amortization is calculated using the straight-line method according to their estimated useful lives.The basis of provision for impairment of properties held for investment is referred to Note V-“25.Impairment oflong-term assets”

20.Fix assets

(1) Recognition conditions

Fixed assets refer to the tangible assets for production of products provision of labor lease or operation with a

service life excess one year and has more unit value.

(2) Depreciation methods

Years of depreciation Scrap value rate Yearly depreciation

Category Depreciation method（year）（%） rate（%）

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

Machinery equipment Straight-line depreciation 10 5 9.50

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

Electronic and other

Straight-line depreciation 3～10 5 9.50～31.67

equipment

For the fixed assets with impairment provision the depreciation amount shall be calculated after deducting the

accumulated amount of impairment provision for fixed assets

(3) Recognition basis valuation and depreciation method for financial lease assets

Not applicable

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(4) The impairment test method and provision for impairment of fixed assetsThe impairment test method and provision for impairment of fixed assets found more in Note V-25.“Impairmentof long-term assets”.

21.Construction in progress

From the date on which the fixed assets built by the Company come into an expected usable state the projects under

construction are converted into fixed assets on the basis of the estimated value of project estimates or pricing or

project actual costs etc. Depreciation is calculated from the next month. Further adjustments are made to the

difference of the original value of fixed assets after final accounting is completed upon completion of projects.The basis of provision for impairment of properties held for construction in processis referred to Note V-“25.Impairment of long-term assets”

22.Borrowing costs

(1) Recognition of capitalization of borrowing costs

Borrowing costs comprise interest occurred amortization of discounts or premiums ancillary costs and exchange

differences in connection with foreign currency borrowings. The borrowing costs of the Company which incur from

the special borrowings occupied by the fixed assets that need more than one year (including one year) for

construction development of investment properties or inventories or from general borrowings are capitalized and

recorded in relevant assets costs; other borrowing costs are recognized as expenses and recorded in the profit or loss

in the period when they are occurred. Relevant borrowing costs start to be capitalized when all of the following

three conditions are met:

* Capital expenditure has been occurred;

* Borrowing costs have been occurred;

* Acquisition or construction necessary for the assets to come into an expected usable state has been carried out.

(2) Period of capitalization of borrowing costs

Borrowing costs arising from purchasing fixed asset investment real estate and inventory and occurred after such

assets reached to its intended use of status or sales than reckoned into assets costs while satisfy the above mentioned

capitalization condition; capitalization of borrowing costs shall be suspended and recognized as current expenditure

during periods in which construction of fixed assets investment real estate and inventory are interrupted abnormally

when the interruption is for a continuous period of more than 3 months until the acquisition construction or

production of the qualifying asset is resumed; capitalization shall discontinue when the qualifying asset is ready for

its intended use or sale the borrowing costs occurred subsequently shall reckoned into financial expenses while

occurring for the current period.

(3) Measure of capitalization for borrowing cost

In respect of the special borrowings borrowed for acquisition construction or production and development of the

assets qualified for capitalization the amount of interests expenses of the special borrowings actually occurred in

the period less interest income derived from unused borrowings deposited in banks or less investment income

derived from provisional investment are recognized.With respect to the general borrowings occupied for acquisition construction or production and development of the

assets qualified for capitalization the capitalized interest amount for general borrowings is calculated and

recognized by multiplying a weighted average of the accumulated expenditure on the assets in excess of the

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expenditure on the some assets of the special borrowings by a capitalization rate for general borrowings. The

capitalization rate is determined by calculation of the weighted average interest rate of the general borrowings.

23.Right-of-use assets

The right-of-use asset refers to the right of the Company as the lessee to use the leased asset during the lease term.On the commencement date of the lease term the Company recognizes the right-of-use assets for leases other than

short-term leases and leases of low-value assets. Right-of-use assets are initially measured at cost. The cost includes

the initial measurement amount of the lease liability; the lease payments made on or before the commencement date

of the lease term deduct the relevant amount of the lease incentive already enjoyedif there is a lease incentive;the

initial direct expenses incurred by the lessee; the cost expected to be incurred by the lessee to dismantle and remove

the leased assets restore the site where the leased assets locate or restore the leased assets to the condition agreed

upon in the lease terms but this does not includethe cost attributable to the production of inventory.The Company subsequently uses the straight-line method to depreciate the right-of-use assets. If it can be reasonably

determined that the ownership of the leased asset can be obtained at the expiration of the lease term the Company

shall accrue depreciation over the remaining useful life of the leased asset. If it cannot be reasonably determined

that the ownership of the leased asset can be obtained at the expiration of the lease term the Company shall accrue

depreciation within the shorter of the lease term and the remaining useful life of the leased asset. When the

recoverable amount is lower than the book value of the right-of-use asset the Company shall write down its book

value to the recoverable amount.

24. Intangible assets

(1) Measurement use of life and impairment testing

* Measurement of intangible assets

The intangible assets of the Company including land use rights patented technology and non-patents technology

etc.The cost of a purchased intangible asset shall be determined by the expenditure actually occurred and other related

costs.The cost of an intangible asset contributed by an investor shall be determined in accordance with the value stipulated

in the investment contract or agreement except where the value stipulated in the contract or agreement is not fair.The intangible assets acquired through exchange of non-monetary assets which is commercial in substance is

carried at the fair value of the assets exchanged out; for those not commercial in substance they are carried at the

carrying amount of the assets exchanged out.The intangible assets acquired through debt reorganization are recognized at the fair value.* Amortization methods and time limit for intangible assets:

Land use right of the company had average amortization by the transfer years from the beginning date of transfer

(date of getting land use light); Patented technology non-patented technology and other intangible assets of the

Company are amortizedby straight-line method with the shortest terms among expected useful life benefit years

regulated in the contract and effective age regulated by the laws. The amortization amount shall count in relevant

assets costs and current gains/losses according to the benefit object.As for the intangible assets as trademark with uncertain benefit terms amortization shall not be carried.Impairment testing methods and accrual for depreciation reserves for the intangible assets found more in Note V-

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“25.Impairment of long-term assets”.

(2)Internal accounting policies relating to research and development expenditures

Expenses incurred during the research phase are recognized as profit or loss in the current period; expenses incurred

during the development phase that satisfy the following conditions are recognized as intangible assets (patented

technology and non-patents technology):

* It is technically feasible that the intangible asset can be used or sold upon completion;

* there is intention to complete the intangible asset for use or sale;

* The products produced using the intangible asset has a market or the intangible asset itself has a market;

* there is sufficient support in terms of technology financial resources and other resources in order to complete the

development of the intangible asset and there is capability to use or sell the intangible asset;

* the expenses attributable to the development phase of the intangible asset can be measured reliably.If the expenses incurred during the development phase did not qualify the above mentioned conditions such

expenses incurred are accounted for in the profit or loss for the current period.The development expenditure

reckoned in gains/losses previously shall not be recognized as assets in later period. The capitalized expenses in

development stage listed as development expenditure in balance sheet and shall be transfer as intangible assets

since such item reached its expected conditions for service.

25. Impairment of long-term assets

The Company will judge if there is any indication of impairment as at the balance sheet date in respect of non-

current non-financial assets such as fixed assets construction in progress intangible assets with a finite useful life

investment properties measured at cost and long-term equity investments in subsidiaries joint controlled entities

and associates. If there is any evidence indicating that an asset may be impaired recoverable amount shall be

estimated for impairment test. Goodwill intangible assets with an indefinite useful life and intangible assets beyond

working conditions will be tested for impairment annually regardless of whether there is any indication of

impairment.If the impairment test result shows that the recoverable amount of an asset is less than its carrying amount the

impairment provision will be made according to the difference and recognized as an impairment loss. The

recoverable amount of an asset is the higher of its fair value less costs of disposal and the present value of the future

cash flows expected to be derived from the asset. An asset’s fair value is the price in a sale agreement in an arm’s

length transaction. If there is no sale agreement but the asset is traded in an active market fair value shall be

determined based on the bid price. If there is neither sale agreement nor active market for an asset fair value shall

be based on the best available information. Costs of disposal are expenses attributable to disposal of the asset

including legal fee relevant tax and surcharges transportation fee and direct expenses incurred to prepare the asset

for its intended sale. The present value of the future cash flows expected to be derived from the asset over the course

of continued use and final disposal is determined as the amount discounted using an appropriately selected discount

rate. Provisions for assets impairment shall be made and recognized for the individual asset. If it is not possible to

estimate the recoverable amount of the individual asset the Group shall determine the recoverable amount of the

asset group to which the asset belongs. The asset group is the smallest group of assets capable of generating cash

flows independently.For the purpose of impairment testing the carrying amount of goodwill presented separately in the financial

statements shall be allocated to the asset groups or group of assets benefiting from synergy of business combination.

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If the recoverable amount is less than the carrying amount the Group shall recognize an impairment loss. The

amount of impairment loss shall first reduce the carrying amount of any goodwill allocated to the asset group or set

of asset groups and then reduce the carrying amount of other assets (other than goodwill) within the asset group or

set of asset groups pro rata on the basis of the carrying amount of each asset.An impairment loss recognized on the aforesaid assets shall not be reversed in a subsequent period in respect of the

part whose value can be recovered.

26.Long-term deferred expenses

Long-term expenses to be amortized of the Company the expenses that are already charged and with the beneficial

term of more than one year are evenly amortized over the beneficial term. For the long-term deferred expense items

cannot benefit the subsequent accounting periods the amortized value of such items is all recorded in the profit or

loss during recognition.

27.Contractual liability

The Company lists the obligation to transfer goods or provide labor services to customers for the consideration

received or receivable from customers as contractual liabilities such as the amount that the company has received

before the transfer of the promissorygoods.

28. Employee compensation

(1) Accounting treatment for short-term compensation

During the accounting period when the staff providing service to the Company the short-term remuneration actual

occurred shall recognized as liability and reckoned into current gains/losses. During the accounting period when

staff providing service to the Company the actual short-term compensation occurred shall recognized as liabilities

and reckoned into current gains/losses except for those in line with accounting standards or allow to reckoned into

capital costs; the welfare occurred shall reckoned into current gains/losses or relevant asses costs while actually

occurred. The employee compensation shall recognize as liabilities and reckoned into current gains/losses or

relevant assets costs while actually occurred. The employee benefits that belong to non-monetary benefits are

measured in accordance with the fair value; the social insurances including the medical insurance work-injury

insurance and maternity insurance and the housing fund that the enterprise pays for the employees as well as the

labor union expenditure and employee education funds withdrawn by rule should be calculated and determined as

the corresponding compensation amount and determined the corresponding liabilities in accordance with the

specified withdrawing basis and proportion and reckoned in the current profits and losses or relevant asset costs in

the accounting period that the employees provide services.

(2) Accounting treatment for post-employment benefit

The post-employment benefit included the defined contribution plans and defined benefit plans. Post-employment

benefits plan refers to the agreement about the post-employment benefits between the enterprise and employees or

the regulations or measures the enterprise established for providing post-employment benefits to employees.Thereinto the defined contribution plan refers to the post-employment benefits plan that the enterprise doesn’t

undertake the obligation of payment after depositing the fixed charges to the independent fund; the defined benefit

plans refers to post-employment benefits plans except the defined contribution plan.

(3) Accounting treatment for retirement benefits

When the Company terminates the employment relationship with employees before the end of the employment

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contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy the

Company shall recognize employee compensation liabilities arising from compensation for staff dismissal and

included in profit or loss for the current period when the Company cannot revoke unilaterally compensation for

dismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Company

recognize cost and expenses related to payment of compensation for dismissal and restructuring whichever is earlier.The early retirement plan shall be accounted for in accordance with the accounting principles for compensation for

termination of employment. The salaries or wages and the social contributions to be paid for the employees who

retire before schedule from the date on which the employees stop rendering services to the scheduled retirement

date shall be recognized (as compensation for termination of employment) in the current profit or loss by the Group

if the recognition principles for provisions are satisfied.

(4) Accounting treatment for other long-term employee benefits

Except for the compulsory insurance the Company provides the supplementary retirement benefits to the employees

satisfying some conditions the supplementary retirement benefits belong to the defined benefit plans and the

defined 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 in accordance

with the expected accumulated welfare unit method by the independent actuary by adopting the treasury bond rate

with similar obligation term and currency. The service charges related to the supplementary retirement benefits

(including the service costs of the current period the previous service costs and the settlement gains or losses) and

the net interest are reckoned in the current profits and losses or other asset costs the changes generated by

recalculating the net liabilities of defined benefit plans or net assets should be reckoned in other consolidated income.

29.Lease liability

Substantialon the commencement date of the lease term the Company recognizes the present value of the unpaid

lease payments as lease liabilities. Lease payments include the following five items: fixed payments and in-

substance fixed payments if there is a lease incentive deduct the amount related to the lease incentive; variable

lease payments that depend on an index or ratio which are determinedat the initial measurement according to the

index or ratio determination on the commencement date of lease term; exercise price for a purchase option provided

that the lessee is reasonably certain that the option shall be exercised; payments for exercising the option to terminate

the lease provided that the lease term reflects that the lessee shall exercise the option to terminate the lease option;

estimated payments due based on guaranteed residual value provided by the lessee.When calculating the present value of lease payments the interest rate implicit in the lease is used as the discount

rate. If the interest rate implicit in the lease cannot be determined the company’s incremental borrowing rate is used

as the discount rate. The Company calculates the interest expense of the lease liability in each period of the lease

term according to the fixed periodic interest rate and includes it in the current profit and loss unless it is otherwise

stipulated to be included in the cost of the relevant assets. Variable lease payments that are not included in the

measurement of lease liabilities are included in the current profit and loss when they are actually incurred unless

otherwise stipulated to be included in the cost of the relevant assets. After the commencement date of the lease term

when there is a change in the in-substance fixed payment or a change in the estimated amount payable for

theguaranteed residual value or a change in the index or ratio used to determine the lease payment or a change in

the evaluation results of the purchase option renewal option or termination option or when the actual exercise

94无锡威孚高科技集团股份有限公司2022年半年度报告全文

situation changes the Company shall re-measure the lease liability according to the present value of the changed

lease payments.

30. Accrual liability

(1) Recognition principle

An obligation related to a contingency such as guarantees provided to outsiders pending litigation or arbitration

product warranties redundancy plans onerous contracts reconstructing expected disposal of fixed assets etc. shall

be recognized as an estimated liability when all of the following conditions are satisfied:

* the obligation is a present obligation of the Company;

* it is Contingent that an outflow of economic benefits will be required to settle the obligation;

* the amount of the obligation can be measured reliably.

(2) Measurement method: Measure on the basis of the best estimates of the expenses necessary for paying off the

contingencies

31. Share-based payment

The Company’s share-based payment is a transaction that grants equity instruments or assumes liabilities

determined on the basis of equity instruments in order to obtain services provided by employees or other parties.The Company’s share-based payment is classified as equity-settled share-based payment and cash-settled share-

based payment.

(1) Equity-settled share-based payment and equity instruments

Equity-settled share-based payment in exchange for services provided by employees shall be measured at the fair

value of the equity instruments granted to employees. If the Company uses restricted stocks for share-based payment

employees contribute capital to subscribe for stocks and the stocks shall not be listed for circulation or transfer until

the unlocking conditions are met and unlocked; if the unlocking conditions specified in the final equity incentive

plan are not met the Company shall repurchase the stocks at the pre-agreed price. When the Company obtains the

payment for the employees to subscribe for restricted stocks it shall confirm the share capital and capital reserve

(share capital premium) according to the obtained subscription money and at the same time recognize a liability in

full for the repurchase obligation and recognize treasury shares. On each balance sheet date during the waiting

period the Company makes the best estimate of the number of vesting equity instruments based on the changes in

the latest obtained number of vested employees whether they meet the specified performance conditions and other

follow-up information. On this basis the services obtained in the current period are included in related costs or

expenses based on the fair value on the grant date and the capital reserve shall be increasedaccordingly.For share-based payments that cannot be vested in the end costs or expenses shall not be recognized unless the

vesting conditions are market conditions or non-vesting conditions. At this time regardless of whether the market

conditions or the non-vesting conditions are met as long as all non-market conditions in the vesting conditions are

met it is deemed as vesting.If the terms of equity-settled share-based payment are modified at least the services obtained should be confirmed

in accordance with the unmodified terms. In addition any modification that increases the fair value of the equity

instruments granted or a change that is beneficial to employees on the modification date is recognized as an

increase in services received.If the equity-settled share payment is canceled it will be treated as an accelerated vesting on the cancellation day

95无锡威孚高科技集团股份有限公司2022年半年度报告全文

and the unconfirmed amount will be confirmed immediately. If an employee or other party can choose to meet the

non-vesting conditions but fails to meet within the waiting period it shall be treated as cancellation of equity-settled

share-based payment. However if a new equity instrument is granted and it is determined on the date of grant of

the new equity instrument that the new equity instrument granted is used to replace the cancelled equity instrument

the granted substitute equity instruments shall be treated in the same way as the modification of the original equity

instrument terms and conditions.

(2) Cash-settled share-based payment and equity instruments

Cash-settled share-based payments are measured at the fair value of the liabilities calculated and determined on the

basis of shares or other equity instruments undertaken by the Company. If it’s vested immediately after the grant

the fair value of the liabilities assumed on the date of the grant is included in the cost or expense and the liability

is increased accordingly. If the service within the waiting period is completed or the specified performance

conditions are met the service obtained in the current period shall be included in the relevant costs or expenses

based on the best estimate of the vesting situation within the waiting periodand the fair value of the liabilities

assumed to increase the corresponding liabilities. On each balance sheet date and settlement date before the

settlement of the relevant liabilities the fair value of the liabilities is remeasured and the changes are included in

the current profit and loss.

32. Revenue

(1) Accounting policies used in revenue recognition and measurement

1)Revenue recognition principle

On the starting date of the contract the company evaluates the contract identifies each individual performance

obligation contained in the contract and determines whether each individual performance obligation is performed

within a certain period of time or at a certain point in time.When one of the following conditions is met it belongs to the performance obligation within a certain period of

time otherwise it belongs to the performance obligation at a certain point in time: * The customer obtains and

consumes the economic benefits brought by the company's performance while the company performs the contract;

* The customer can control the goods or services under construction during the company’s performance; * The

goods or services produced during the company’s performance have irreplaceable uses and the company has the

right to collect payment for the performance part that has been completed so far during the entire contract period.For performance obligations performed within a certain period of time the company recognizes revenue in

accordance with the performance progress during that period. When the performance progress cannot be reasonably

determined if the cost incurred is expected to be compensated the revenue shall be recognized according to the

amount of the cost incurred until the performance progress can be reasonably determined.For performance

obligations performed at a certain point in time revenue is recognized at the point when the customer obtains control

of the relevant goods or services. When judging whether the customer has obtained control of the goods the

company considers the following signs:* The company has the current right to receive payment for the goods that

is the customer has the current payment obligation for the goods; * The company has transferred the legal

ownership of the goods to the customer that is the customer has the legal ownership of the goods; * The company

has transferred the goods to the customer in kind that is the customer has physically taken possession of the goods;

* The company has transferred the main risks and rewards of the ownership of the goods to the customer that is

the customer has obtained the main risks and rewards of the ownership of the goods; * The customer has accepted

96无锡威孚高科技集团股份有限公司2022年半年度报告全文

the goods; * Other signs that the customer has obtained control of the goods.

2)Revenue measurement principle

* The company measures revenue based on the transaction price allocated to each individual performance obligation.The transaction price is the amount of consideration that the company expects to be entitled to receive due to the

transfer of goods or services to customers and does not include payments collected on behalf of third parties and

payments expected to be returned to customers.* If there is variable consideration in the contract the company shall determine the best estimate of the variable

consideration according to the expected value or the most likely amount but the transaction price including the

variable consideration shall not exceed the amount of cumulatively recognized revenue that is unlikely to be

significantly turned back when the relevant uncertainty is eliminated.* If there is a significant financing component in the contract the company shall determine the transaction price

based on the amount payable that the customer is assumed to pay in cash when obtaining the control of the goods

or services. The difference between the transaction price and the contract consideration shall be amortized by the

effective interest method during the contract period. On the starting date of the contract if the company expects that

the customer pays the price within one year after obtaining control of the goods or services the significant financing

components in the contract shall not be considered.* If the contract contains two or more performance obligations the company will allocate the transaction price to

each individual performance obligation based on the relative proportion of the stand-alone selling price of the goods

promised by each individual performance obligation on the starting date of the contract.

(2) The company's recognition criteria for sales revenue and specific judgment criteria for recognition time:

The company's domestic sales revenue confirmation time point: the company delivers goods as agreed in the order.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 the current reconciliation date are checked with the buyer. After both parties

check the risks and rewards are transferred to the buyer. The company issues an invoice to the buyer according to

the variety quantity and amount confirmed in the reconciliation and confirms the realization of sales revenue on

the reconciliation date.Confirmation time of the company's foreign sales revenue: after the customs review is completed the company

confirms the realization of sales revenue according to the export date specified on the customs declaration.Differences in accounting policies for revenue recognition due to different operating models for the same type of

business

N/A

33.Government grants

(1) Types

Government grants are transfer of monetary assets or non-monetary assets from the government to the Group at no

consideration. Government grants are classified into government grants related to assets and government grants

related to income.As for the assistance object not well-defined in government’s documents the classification criteria for assets-related

or income-related grants are as: whether the grants turn to long-term assets due to purchasing for construction or

other means.

(2) Recognition and measure

97无锡威孚高科技集团股份有限公司2022年半年度报告全文

The government grants shall be recognized while meet the additional conditions of the grants and amount is actually

can be obtained.If a government grant is in the form of a transfer of monetary asset the item shall be measured at the amount

received or receivable. If a government grant is in the form of a transfer of non-monetary asset the item shall be

measured at fair value. If the fair value can not be reliably acquired than measured by nominal amount.

(3) Accounting treatment

A government grant related to an asset shall be recognized as deferred income and reckoned into current

gains/losses according to the depreciation process in use life of such assets.A government grant related to income if they making up relevant expenses and losses for later period than

recognized deferred income and should reckoned into current gain/loss during the period while relevant expenses

are recognized; if they making up relevant expenses and losses that occurred than reckoned into current gains/losses.A government grant related to daily operation activity of the Company should reckoned into other income; those

without related to daily operation activity should reckoned into non-operation income and expenses.The financial discount funds received by the Company shall write down relevant borrowing costs.

34.Deferred income tax assets/Deferred income tax liabilities

(1) Deferred income tax assets or deferred income tax liabilities are realized based on the difference between the

carrying values of assets and liabilities and their taxation bases (as for the ones did not recognized as assets and

liability and with taxation basis recognized in line with tax regulations different between tax base and its book

value) at the tax rates applicable in the periods when the Company recovers such assets or settles such liabilities.

(2) Deferred income tax assets are realized to the extent that it is probable to obtain such taxable income which is

used to set off the deductible temporary difference. As at the balance sheet date if there is obvious evidence showing

that it is probable to obtain sufficient taxable income to set off the deductible temporary difference in future periods

deferred income tax assets not realized in previous accounting periods shall be realized.

(3) On balance sheet date re-review shall be made in respect of the carrying value of deferred income tax assets. If

it is impossible to obtain sufficient taxable income to set off the benefits of deferred income tax assets in future

periods then the carrying value of deferred income tax assets shall be reduced accordingly. If it is probable to obtain

sufficient taxable income then the amount reduced shall be switched back.

(4) Current income tax and deferred income tax considered as income tax expenses or incomes reckoned into current

gains/losses excluding the follow income tax:

* Enterprise combination;

* Transactions or events recognized in owner’s equity directly

35. Lease

(1)Accounting for operating lease

A lease is a contract whereby the lessor transfers the right to use the asset to the lessee for consideration within a

certain period of time. On the commencement date of the contract the Company assesses whether the contract is a

lease or contains a lease. A contract is or contains a lease if a party to a contract transfers its right to control the use

of one or more identified assets for a certain period of time in exchange for consideration. If the contract contains

multiple separate leases at the same time the Company shall split the contract and conduct accounting treatment for

98无锡威孚高科技集团股份有限公司2022年半年度报告全文

each separate lease. If the contract contains both lease and non-lease parts the lessee and the lessor shall split the

lease and non-lease parts.

(1) The Company as the lessee

For the general accounting treatment of the Company as a lessee please refer to Note V. 23 “Right-of-Use Assets”

and Note V. 29 “Lease Liabilities”.For short-term leases with a lease term of not more than 12 months and leases of low-value assets with low value

when a single asset is new the Company chooses not to recognize right-of-use assets and lease liabilities and the

relevant rental expenses are included in the current profit and loss or related asset cost on a straight-line basis during

each period of the lease term.If the lease changes and the following conditions are met at the same time the Company will account for the lease

change as a separate lease: the lease change expands the scope of the lease by adding the right to use one or more

leased assets; the increased consideration is equivalent to the amount of the separate price for the expanded part of

the lease adjusted according to the contract situation. If the lease change is not accounted for as a separate lease on

the effective date of the lease change the Company shall re-allocate the consideration of the contract after the

change re-determine the lease term and remeasure the lease liability at the present value calculated according to

the changed lease payment and the revised discount rate.

(2) The Company as the lessor

On the lease commencement date the Company classifies the leases that have substantially transferred almost all

the risks and rewards related to the ownership of leased assets as finance leases and other leases are operating leases.

1) Operating lease

The Company recognizes the lease receipts in various periods during the lease term for the rent in an operating

lease.The initial direct costs should be capitalized and apportioned on the same basis as the rental income

recognition in the lease period and included in the current profit and loss by installment. The obtained variable

lease payments related to the operating lease and not included in the lease receipts are included in the current profit

and loss when they actually incur.

2)Financing lease

On the commencement date of the lease term the Company recognizes the finance lease receivables based on the

net investment in the lease (the sum of the unguaranteed residual value and the present value of the lease receipts

not yet received on the commencement date of the lease term and discounted at the interest rate implicit in the lease)

and derecognizes the finance lease assets. During each period of the lease term the Company calculates and

recognizes interest income based on the interest rate implicit in the lease. The variable lease payments obtained by

the Company which are not included in the net lease investment measurement are included in the current profit

and loss when actually incurred.

(3) Sale and leaseback

In accordance with the provisions of the Accounting Standards for Business Enterprises No. 14 - Revenue the

Company evaluates and determines whether the asset transfer in the sale and leaseback transaction is a sale.

1) The Company as the lessee

If the asset transfer in a sale-and-leaseback transaction is a sale the Company shall measure the right-of-use asset

formed by the sale and leaseback based on the part of the original book value of the asset related to the right of use

obtained by leaseback and shall only recognize the gain or loss relevant to the rights transferred to the lessor.

99无锡威孚高科技集团股份有限公司2022年半年度报告全文

If the asset transfer in a sale-and-leaseback transaction is not a sale the Company shall continue to recognize the

transferred asset and at the same time recognize a financial liability equal to the transfer income and account for

the financial liability in accordance with the Accounting Standards for Business Enterprises No. 22 - Recognition

and Measurement of Financial Instruments.

2) The Company as the lessor

If the asset transfer in a sale-and-leaseback transaction is a sale the Company shall account for the purchase of

assets in accordance with other applicable accounting standards for business enterprises and shall account for the

lease of assets in accordance with the Accounting Standards for Business Enterprises No. 21 - Leases.If the asset transfer in a sale-and-leaseback transaction is not a sale the Company shall not recognize the transferred

asset but recognize a financial asset equal to the transfer income and account for the financial asset in accordance

with the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial

Instruments.

(2) Accounting treatment for financing lease

Not applicable

36.Other major accounting policy and estimation

In the process of applying the Company's accounting policies due to the inherent uncertainty of business activities

the Company needs to judge estimate and assume thebook value of the report items cannot be accurately measured.These judgments estimates and assumptions are made on the basis of the historical experience of the Company’s

management and by considering other relevant factors which shall impact the reported amounts ofincome expenses

assets and liabilities and the disclosure of contingent liabilities on the balance sheet date. However the actual results

caused by the estimated uncertainties may differ from the management's current estimates of the Company so as to

carry out the significant adjustments to the book value of the assets or liabilities to be affected.The Company regularly reviews the aforementioned judgments estimates and assumptions on the basis of

continuing operations the changes in accounting estimates only affect the current period of which the impactsare

recognized in the current period; the changes in accounting estimates not only affect the current period but also the

future periods of which the impacts are recognized in the current and future periods.On the balance sheet date the important areas ofthe financial statements that the Company needs to judge estimate

and assume are as follows:

(1) Provision for bad debts

The Company has used the expected credit loss model to assess the impairment of financial instruments. The

application of the expected credit loss model requires significant judgement and estimates and must consider all

reasonable and evidence-based information including forward-looking information.In making such judgments and

estimates the Company infers the expected changes in debtors’ credit risks based on historical repayment data

combined with economic policies macroeconomic indicators industry risks and other factors.

(2) Inventory falling price reserves

According to the inventory accounting policies the Company measures by the comparison between the cost and the

net realizable value if the cost is higher than the net realizable value and the old and unsalable inventories the

Company calculates and withdraws the inventory impairment. The inventory devalues to the net realizable value by

evaluating the inventory’s vendibility and net realizable value. To identify the inventory impairment the

100无锡威孚高科技集团股份有限公司2022年半年度报告全文

management needs to obtain the unambiguous evidences and consider the purpose to hold the inventory and judge

and estimate the impacts of events after the balance sheet date. The actual results and the differences between the

previously estimated results shall affect the book value of inventory and the provision or return of the inventory

impairment during the period estimated to be changed.

(3) Preparation for the impairment of non-financial & non-current assets

The Company checks whether the non-current assets except for the financial assets may decrease in value at the

balance sheet date. For the intangible assets with indefinite service life in addition to the annual impairment test

the impairment test is also needed when there is a sign of impairment. For the other non-current assets except for

the financial assets the impairment test is needed when it indicates that the book amounts may not be recoverable.When the book value of the asset or group of assets exceeds its recoverable amount i.e. the higher between the net

amount by subtracting the disposal costs from the fair value and the present value of expected future cash flows it

indicates the impairment.As for the net amount by subtracting the disposal costs from the fair value refer to the sales agreement price

similar to the assets in the fair trade or the observable market price and subtract the incremental costs

determination directly attributable to the disposal of the asset.When estimating the present value of the future cash flow the Company needs to make significant judgments to the

output price and related operating expenses of the asset (or asset group) and the discount rate used for calculating

the present value. When estimating the recoverable amount the Company shall adopt all the relevant information

can be obtained including the prediction related to the output price and related operating expenses based on the

reasonable and supportable assumptions.The Company tests whether its business reputation decreases in value every year which requires to estimating the

present value of the asset group allocated with goodwill or the future cash flow combined by the asset group. When

estimating the present value of the future cash flow the Company needs to estimate the future cash flows generated

by the asset group or the combination of asset group and select the proper discount rate to determine the present

value of the future cash flows.

(4) Depreciation and amortization

The Company depreciates and amortizes the investment property fixed assets and intangible assets according to the

straight-line method in the service life after considering the residual value. The Companyregularly reviews the

service life to determine the depreciation and amortization expense amount to be reckoned in each reporting period.The service life is determined by the Company based on the past experience of similar assets and the expected

technological updating. If the previous estimates have significant changes the depreciation and amortization

expense shall be adjusted in future periods.

(5) Fair value of financial instrument

Financial instruments that do not have active markets to provide quotes need to use valuation techniques to

determine fair value.Valuation techniques include the latest transaction information discounted cash flow methods

and option pricing models.The Company has established a set of work processes to ensure that qualified personnel

are responsible for the calculation verification and review of fair value.The valuation model used by the Company

uses the market information as much as possible and uses the Company-specific information as little as possible.It

should be noted that part of the information used in the valuation model requires management’s estimation (such as

discount rate target exchange rate volatility etc.).The Company regularly reviews the above estimates and

101无锡威孚高科技集团股份有限公司2022年半年度报告全文

assumptions and makes adjustments if necessary.

(6) Income tax

In the Company’s normal business activities the final tax treatment and calculation of some transactions have some

uncertainties. Whether some projects can be disbursed from the cost and expenses before taxes requires needs to

get approval from the tax authorities. If the final affirmation of these tax matters differs from the initially estimated

amount the difference shall have an impact on its current and deferred income taxes during the final identification

period.

37.Changes of important accounting policy and estimation

(1)Changes of important accounting policies

□Applicable□Not applicable

(2) Changes of important accounting estimations

□Applicable□Not applicable

38. Other

N/A

VI. Taxation

1. Major taxes and tax rates

Tax Basis Tax rate

The output tax is calculated based on the

25%(IRD Denmark ) 21%(Borit

taxable income and VAT is calculated based

VAT Belgium) 13% 9% 6% Collection

on the difference after deducting the input tax

rate 5%

available for deduction for the current period

City maintaining & construction tax Turnover tax payable 7% 5%

15% 20% 21%(IRD America Borit

Corporation income tax Taxable income America) 22%(IRD Denmark )

25%(including Borit Belgium)

Educational surtax Turnover tax payable 5%

Disclose reasons for different taxpaying body

Taxpaying body Income tax rate

WFCA WFTR WFAS WFLD(Nanchang) WFDT Borit 25%

The Company WFJN WFLD WFTT WFLD(Chongqing) WFAM WFMA WFSC 15%

WFLD (WUHAN) 20%

IRD America Borit America 21%

SPV IRD 22%

2. Tax incentives

The Company WFJN WFLD WFTT WFAM WFMA WFSC is accredited as a high-tech enterprise and enjoy a

preferential income tax rate of 15% in 2022.According to the “Continuation of the Enterprise Income Tax Policies for Western Development ” No.23 (Year of

102无锡威孚高科技集团股份有限公司2022年半年度报告全文

2020) issued together by Ministry of Finance SAT and NDRCfrom 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 first

half of 2022 WFLD (Chongqing) paid its corporate income tax at the tax rate of 15%.In 2022 WFLD (Wuhan) meets the standards of small and low-profit enterprises and the part of the taxable income

not exceeding one million yuan shall be included in the taxable income at a reduced rate of 12.5% and the corporate

income tax shall be paid at the tax rate of 20%; the part of the taxable income exceeding one million yuan but not

more than three million yuan shall be included in the taxable income at a reduced rate of 25% and the corporate

income tax shall be paid at the tax rate of 20%.VII. Notes to major items in consolidated financial statements

1. Monetary fund

Unit: RMB/CNY

Item Ending balance Opening balance

Cash on hand 97884.43 150438.79

Cash in bank 2311600835.40 1864868497.94

Other monetary funds 46256476.74 31044328.96

Total 2357955196.57 1896063265.69

Including: Total amount saving aboard 165582379.20 69969414.25

Total amount with restriction on use for mortgage pledge or freeze 46256476.74 31044328.96

Other explanation

The ending balance of other monetary funds includes bank acceptance bill deposit 41882720.34 yuan Mastercard

deposit188440.00yuan frozen dividends 4185316.40 yuan. The frozen dividend of 4185316.40 yuan represents the part of dividends

distributed by SNAT (stock code:600841) and Miracle Automation (stock code:002009) from 2017 to 2022held by the Company as

trading financial assets. According to the notices numbered Yue 03MC [2016]2490 and Yue 03MC [2016]2492 served by Guangdong

Shenzhen Intermediate People’s Court these dividends were frozen.

2. Trading financial asset

Unit: RMB/CNY

Item Ending balance Opening balance

Financial assets measured at fair value and whose changes are included in current

3783299041.486076436069.42

profit or loss

Including:

SNAT 112472616.00 153643308.00

Miracle Automation 87135000.00 113793600.00

Lifan Technology 69757.95 77802.11

ST Zotye 540488.96

Forex contracts 22219323.17 74734940.30

Investment in other debt instruments and equity instrument 3560861855.40 5734186419.01

Including:

Total 3783299041.48 6076436069.42

103无锡威孚高科技集团股份有限公司2022年半年度报告全文

3. Note receivable

(1) Note receivable

Unit: RMB/CNY

Item Ending balance Opening balance

Bank acceptance bill 884440280.49 968022652.08

Trade acceptance bill 105956992.13 148527534.13

Total 990397272.62 1116550186.21

Unit: RMB/CNY

Ending balance Opening balance

Bad debt Bad debt

Book balance Book balance

provision provision

Category A A

m Provis Book value Provis Book value

Amount Ratio o ion Amount Ratio ion

u ratio ratio

Including

Note

receivable

with bad

100.001116550186.2100.001116550186.2

debt 990397272.62 990397272.62

%1%1

provision

accrual on

portfolio

Including:

Portfolio 1:

bank

884440280.4989.30%884440280.49968022652.0886.70%968022652.08

acceptance

bill

Portfolio 2:

trade

105956992.1310.70%105956992.13148527534.1313.30%148527534.13

acceptance

bill

100.001116550186.2100.001116550186.2

Total 990397272.62 990397272.62

%1%1

If the provision for bad debts of note receivable is made in accordance with the general model of expected credit losses please refer

to the disclosure of other receivables to disclose related information about bad-debt provisions:

□Applicable□Not applicable

(2) Bad debt provision accrual collected or switch back

Provision for bad debts in the current period:

□Applicable□Not applicable

(3) Notes receivable already pledged by the Company at the end of the period

Unit: RMB/CNY

Item Amount pledge at period-end

Bank acceptance bill 287986479.97

Trade acceptance bill 47980000.00

Total 335966479.97

104无锡威孚高科技集团股份有限公司2022年半年度报告全文

(4) Notes endorsement or discount and undue on balance sheet date

Unit: RMB/CNY

Item Amount derecognized at period-end Amount not derecognized at period-end

Bank acceptance bill 382416632.87

Trade acceptance bill 16226900.00

Total 398643532.87

(5) Notes transfer to account receivable due for failure implementation by drawer at period-end

Unit: RMB/CNY

Item Amount transfer to account receivable at period-end

Trade acceptance bill 7201691.00

Total 7201691.00

(6) Note receivable actually written-off in the period

Nil

4. Account receivable

(1) Classification of account receivable

Unit: RMB/CNY

Ending balance Opening balance

Book balance Bad debt provision Book balance Bad debt provision

Category Provis Book

Provision Book value

Amount Ratio Amount ion value Amount Ratio Amount

ratio

Account

receivable

with bad

debt 60762293. 100.0 613611 613611

60762293.061.31%2.87%100.00%

provision 06 0% 42.44 42.44

accrual on

a single

basis

Including:

Account

receivable

with bad

456611377198.6920703011.454541020769897.1323186520538002

debt 0.45% 1.12%.52%64759.886857.82%64.0593.77

provision

accrual on

portfolio

Includi

ng:

4626876064100.081465304.4545410213834100.084547720538002

Total 1.76% 3.95%.580%70759.888000.260%06.4993.77

Bad debt provision accrual on single basis: 60762293.06 yuan

Unit: RMB/CNY

Ending balance

Name

Book balance Bad debt provision Provision ratio Accrual causes

Hubei Meiyang Auto Industry Co. Ltd. 20139669.45 20139669.45 100.00% Have difficulty in collection

105无锡威孚高科技集团股份有限公司2022年半年度报告全文

Hunan Leopaard Auto Co. Ltd. 8910778.54 8910778.54 100.00% Have difficulty in collection

BD bills 7201691.00 7201691.00 100.00% Have difficulty in collection

Linyi Zotye Automobile components

6193466.77 6193466.77 100.00% Have difficulty in collection

Manufacturing Co. Ltd.Tongling Ruineng Purchasing Co. Ltd. 4320454.34 4320454.34 100.00% Have difficulty in collection

Brilliance Automotive Group Holdings Co.

3469091.33 3469091.33 100.00% Have difficulty in collection

Ltd.Zhejiang Zotye Auto Manufacturing Co. Ltd. 3117763.27 3117763.27 100.00% Have difficulty in collection

Dongfeng Chaoyang Diesel Co. Ltd. 1951447.02 1951447.02 100.00% Have difficulty in collection

Jiangsu Kawei Auto Industrial Group Co. Ltd. 1932476.26 1932476.26 100.00% Have difficulty in collection

Jiangsu Jintan Automobile Industry Co. Ltd. 1059798.43 1059798.43 100.00% Have difficulty in collection

Tianjin Leiwo Engine Co. Ltd. 1018054.89 1018054.89 100.00% Have difficulty in collection

Other custom 1447601.76 1447601.76 100.00% Have difficulty in collection

Total 60762293.06 60762293.06

Bad debt provision accrual on portfolio: 20703011.64 yuan

Unit: RMB/CNY

Ending balance

Name

Book balance Bad debt provision Provision ratio

Within 6 months 4455951901.25 0.00

6 months to 1 year 76568582.83 7656858.28 10.00%

1-2 years 22502280.54 4500456.10 20.00%

2-3 years 4242182.75 1696873.11 40.00%

Over 3 years 6848824.15 6848824.15 100.00%

Total 4566113771.52 20703011.64

If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses please

refer to the disclosure of other receivables to disclose related information about bad-debt provisions:

□Applicable□Not applicable

By account age

Unit: RMB/CNY

Account age Ending balance

Within 1 year (including 1 year) 4532520484.08

Including: Within 6 months 4455951901.25

6 months to 1 year 76568582.83

1-2 years 24066284.61

2-3 years 11551531.34

Over 3 years 58737764.55

3-4 years 58737764.55

Total 4626876064.58

(2) Bad debt provision accrual collected or switch back

Bad debt provision accrual in the period:

Unit: RMB/CNY

Amount changed in the period

Opening

Category Ending balance

balance Collected or Accrual Written-off Other

reversal

Bad debt

84547706.491028126.003168519.71935642.25-6365.8381465304.70

provision

Total 84547706.49 1028126.00 3168519.71 935642.25 -6365.83 81465304.70

Important bad debt provision collected or switch back: nil

106无锡威孚高科技集团股份有限公司2022年半年度报告全文

(3) Account receivable actual charge off in the Period

Unit: RMB/CNY

Item Amount charge off

Hunan Jiangnan Automobile Manufacturing Co. Ltd. Chongqing Branch 935638.55

Jiangxi Jiangling Motors Group Industrial Co. Ltd. 2.86

Longgong (Shanghai) Forklift Co. Ltd. 0.81

Weimar Agricultural Machinery Co. Ltd. 0.01

Changzhou Wujin Suochuan Electromechanical Co. Ltd. 0.02

Total 935642.25

Major charge-off for the major receivable: Nil

(4) Top 5 receivables at ending balance by arrears party

Unit: RMB/CNY

Ending balance of Ratio in total ending balance of account Ending balance of bad

Name

account receivable receivables debt reserve

Customer 1 396779123.91 8.58% 87832.18

RBCD 385798620.85 8.34% 56890.49

Robert Bosch Company 328749828.77 7.11% 845939.26

Customer 2 208242386.56 4.50% 1889958.00

Customer 3 135513111.82 2.93% 1162713.93

Total 1455083071.91 31.46%

(5) Account receivable derecognition due to financial assets transfer

Nil

(6) Assets and liabilities resulted by account receivable transfer and continues involvement

Nil

5. Account receivable financing

Unit: RMB/CNY

Item Ending balance Opening balance

Note receivable - Bank acceptance bill 875577584.80 713017014.50

Total 875577584.80 713017014.50

Increase and decrease in current period and changes in fair value of receivables financing

□Applicable□Not applicable

If the bad debt provision for account receivable is calculated and withdrawn according to the general model of expected credit loss

please refer to the disclosure method of other account receivables in aspect of impairment provision:

□Applicable□Not applicable

Other explanation:

During the management of enterprise liquidity the company will discount or endorse transfers before the maturity of some bills the

business model for managing bills receivable is to collect contractual cash flows and sell the financial asset so it is classified as

financial assets measured at fair value and whose changes are included in other comprehensive income which is listed in receivables

financing.

6. Account paid in advance

(1) Account age of account paid in advance

Unit: RMB/CNY

107无锡威孚高科技集团股份有限公司2022年半年度报告全文

Ending balance Opening balance

Account age

Amount Ratio Amount Ratio

Within 1 year 3124211770.74 99.86% 172019278.72 96.61%

1-2 years 3479238.57 0.11% 3318636.20 1.86%

2-3 years 573262.44 0.02% 1140843.34 0.64%

Over 3 years 244798.83 0.01% 1580491.73 0.89%

Total 3128509070.58 178059249.99

Explanation on reasons of failure to settle on important advance payment with age over one year: NA

(2) Top 5 account paid in advance at ending balance by prepayment object

Total period-end balance of top five account paid in advance by prepayment object amounted to 2794379522.02 Yuan takes 89.32

percent of the total advance payment at period-end.

7. Other account receivables

Unit: RMB/CNY

Item Ending balance Opening balance

Dividend receivable 577318855.11

Other account receivables 26434177.38 17908078.54

Total 603753032.49 17908078.54

(1) Interest receivable

1) Category of interest receivable

Nil

2) Significant overdue interest

Nil

3) Accrual of bad debt provision

□Applicable□Not applicable

(2) Dividend receivable

1) Category of dividend receivable

Unit: RMB/CNY

Item (or invested enterprise) Ending balance Opening balance

RBCD 382918855.11

Zhonglian Automobile Electronics Co. Ltd. 194400000.00

Total 577318855.11

2) Important dividend receivable with account age over one year

Nil

3) Accrual of bad debt provision

□Applicable□Not applicable

(3) Other account receivables

1) Other account receivables classification by nature

Unit: RMB/CNY

Nature Ending book balance Opening book balance

Intercourse funds from units 1878156.54 1991247.85

108无锡威孚高科技集团股份有限公司2022年半年度报告全文

Cash deposit 7938583.18 6212842.61

Staff loans and petty cash 2211482.29 555076.61

Social security and provident fund paid 10858487.31 10547050.70

Other 6954976.36 1952403.17

Total 29841685.68 21258620.94

2) Accrual of bad debt provision

Unit: RMB/CNY

Phase I Phase II Phase III Total

Expected credit losses Expected credit losses

Bad debt provision Expected credit for the entire duration for the entire duration

losses over next

(without credit (with credit

12 months

impairment occurred) impairment occurred)

Balance on Jan. 1 2022 3318719.00 31823.40 3350542.40

Balance of Jan. 1 2022 in the period

Current accrual 58372.50 58372.50

Current reversal 1310.00 96.60 1406.60

Balance on Jun. 30 2022 3375781.50 31726.80 3407508.30

Change of book balance of loss provision with amount has major changes in the period

□Applicable□Not applicable

By account age

Unit: RMB/CNY

Account age Ending balance

Within 1 year (including 1 year) 24074333.88

Including: Within 6 months 23490608.88

6 months to 1 year 583725.00

1-2 years 3022710.00

2-3 years 31806.80

Over 3 years 2712835.00

3-4 years 2712835.00

Total 29841685.68

3) Bad debt provision accrual collected or switch back

Bad debt provision accrual in the period:

Unit: RMB/CNY

Amount changed in the period

Opening

Category Ending balance

balance

Accrual Collected or reversal Written-off Other

Bad debt provision 3350542.40 58372.50 1406.60 3407508.30

Total 3350542.40 58372.50 1406.60 3407508.30

Including the important bad debt provision switch back or collected in the period: nil

4) Other receivables actually written-off during the reporting period

Nil

109无锡威孚高科技集团股份有限公司2022年半年度报告全文

5) Top 5 other receivables at ending balance by arrears party

Unit: RMB/CNY

Ratio in total

Ending

ending

Ending balance of

Enterprise Nature Account age balance of

balance bad debt

other

reserve

receivables

Ningbo Jiangbei High-Tech Industry

Deposit margin 1767000.00 Over 3 years 5.92% 1767000.00

Park Development Construction Co. Ltd.

7-12 months

Wuxi China Resources Gas Co. Ltd. Deposit margin 1364750.00 4.57% 245555.00

1-2 years

Zhenkunxing Industrial Supermarket

Deposit margin 1000000.00 1-2 years 3.35% 200000.00

(Shanghai) Co. Ltd.Within 6

Wuxi Youlian Thermal Power Co. Ltd. Deposit margin 750000.00 2.51%

months

Chongqing Airport Group Co. Ltd. Deposit margin 636710.00 1-2 years 2.13% 127342.00

Total 5518460.00 18.48% 2339897.00

6) Other account receivables related to government grants

Nil

7) Other receivable for termination of confirmation due to the transfer of financial assets

Nil

8) The amount of assets and liabilities that are transferred other receivable and continued to be involved

Nil

8. Inventory

Whether the Company needs to comply with the disclosure requirement of real estate industry

(1) Category of inventory

Unit: RMB/CNY

Ending balance Opening balance

Inventory Inventory

depreciation depreciation

Item reserve or reserve or

Provision for Provision for

Book balance Book value Book balance Book value

impairment of impairment of

contract contract

performance performance

costs costs

Materials

in stock 709886475.14 116703542.91 593182932.23 693636748.61 84791307.00 608845441.61

Goods in

process 387987399.81 16123840.68 371863559.13 406224039.14 18593866.28 387630172.86

Cash on 1315360360.4 1202707857.2 2578635721.7 2448920760.6

hand 112652503.24 129714961.12 9 5 4 2

110无锡威孚高科技集团股份有限公司2022年半年度报告全文

2413234235.42167754348.63678496509.43445396375.0

Total 245479886.83 233100134.40

4199

(2) Inventory depreciation reserve or provision for impairment of contract performance costs

Unit: RMB/CNY

Current increased Current decreased

Item Opening balance Switch back or Ending balance

Accrual Other Other

write-off

Materials in

84791307.0053801807.54-152390.7021737180.93116703542.91

stock

Goods in

18593866.289140454.4411610480.0416123840.68

process

Cash on

129714961.1241277522.00-89942.7358250037.15112652503.24

hand

Total 233100134.40 104219783.98 -242333.43 91597698.12 245479886.83

* Net realizable value of the inventory refers to: During the day-to-day activities results of the estimated sale price less costs which

are going to happen by estimation till works completed sales price estimated and relevant taxes.* Accrual basis for inventory depreciation reserve:

Item Accrual basis for inventory impairment Specific basis for recognition

provision

The materials sold due to finished goods Results from the estimated sale price of such inventory less the cost

Materials in stock manufactured its net realizable value is what will happen estimated sales expenses and relevant taxes till the

lower than the book value goods completed

The goods in process sold due to finished Results from the estimated sale price of such inventory less the cost

Goods in process goods manufactured its net realizable what will happen estimated sales expenses and relevant taxes till the

value is lower than the book value goods completed

Accrual basis for inventory impairment

Cash on hand Specific basis for recognition

provision

* Reasons of write-off for inventory falling price reserves:

Item Reasons of write-off

Materials in stock Used for production and the finished goods are realized sales

Goods in process Goods in process completed in the Period and corresponding finished goods are realized sales in the Period

Finished goods Sales in the Period

(3) Explanation on capitalization of borrowing costs at ending balance of inventory

Nil

(4) Assets completed without settlement from construction contract at period-end

Nil

9. Other current assets

Unit: RMB/CNY

Item Ending balance Opening balance

Receivable export tax rebates 8308752.40 6457803.72

VAT refund receivable 2799449.30 3985115.26

Prepaid taxes and VAT retained 35320464.57 204700549.12

Input tax to be deducted and certification 24779.13 6274.43

Other 5772397.33 5171179.97

Total 52225842.73 220320922.50

111无锡威孚高科技集团股份有限公司2022年半年度报告全文

10. Long-term equity investment

Unit: RMB/CNY

Current changes (+ -)

Ad Other Ending

dit Ca comp Cash balance

Opening ion pit Investment rehen dividend of

The invested Other Impair Ending balance

balance (book al al gain/loss sive or profit depreci

entity equity ment Other (book value)

value) inv red recognized inco announce ation

change accrual

est uct under equity me d to reserve

me ion adjust issued s

nt ment

I. Joint venture

II. Associated enterprise

Wuxi Weifu

Environmenta 71742990.2

794489840.10866232830.35

l Catalysts. 5

Co. Ltd.

3340114235.4583991385.7658373158267911.0

RBCD

586710.238

Zhonglian

Automobile 1378575785.7 168241541. 194400 1352417327.7

Electronics 7 93 000.00 0

Co. Ltd.Wuxi Weifu

Precision

Machinery 46014272.27 5377634.71 51391906.98

Manufacturin

g Co. Ltd.Changchun

Xuyang

Weifu

Automobile 10348819.93 -325008.02 10023811.91

components

Technology

Co. Ltd.Precors

5345878.98-47224.13-87222.055211432.80

GmbH

Wuxi Chelian

Tianxia

Information 143055955.62 -4365778.01 138690177.61

Technology

Co. Ltd.

5717944788.1824615542.9602375582235398.4

Subtotal -87222.05

259710.233

5717944788.1824615542.9602375582235398.4

Total -87222.05

259710.233

Other explanation

Explanation on those holding less than 20% of the voting rights but with significant influence:

(1) Precors GmbH:

Wholly-owned subsidiary of the Company - Borit holds 8.11% equity of Precors GmbH Borit appointed a director to Precors GmbH.Though the representative Borit can participate in the operation policies formulation of Precors GmbH and thus exercise a significant

influence over Precors GmbH.

(2) Wuxi Chelian Tianxia Information Technology Co. Ltd. (Hereinafter referred to as "Chelian Tianxia"):

The Company holds 8.8295% equity of Chelian Tianxia and appointed a director to Chelian Tianxia. Though the representative the

Company can participate in the operation policies formulation of Chelian Tianxi and thus exercise a significant influence over Chelian

Tianxi.

11. Other equity instrument investment

Unit: RMB/CNY

Item Ending balance Opening balance

112无锡威孚高科技集团股份有限公司2022年半年度报告全文

Wuxi Xidong Science & Technology Industrial Park 5000000.00 5000000.00

Beijing Zhike Industry Investment Holding Group Co. Ltd. 75940000.00 75940000.00

Rare earth Catalysis Innovation Research Institute (Dongying) Co. Ltd. 4108000.00 4108000.00

Wuxi Xichang Microchip Semi-Conductor 592742690.00 200000000.00

Total 677790690.00 285048000.00

Disclosure of the non-trading equity instrument investment item by item Nil

12. Other non-current financial assets

Unit: RMB/CNY

Item Ending balance Opening balance

Guolian Securities 198981411.00 208795178.00

Investments in other debt instruments and equity instruments held for more than

1605500000.001482000000.00

one year

Total 1804481411.00 1690795178.00

13. Investment real estate

(1) Investment real estate measured by cost

□Applicable □Not applicable

Unit: RMB/CNY

House and Land use Construction

Item Total

Building right in progress

I. original book value

1.Opening balance 65524052.61 65524052.61

2.Current increased

(1) outsourcing

(2) Inventory\fixed assets\construction in process

transfer-in

(3) increased by combination

3.Current decreased

(1) disposal

(2) other transfer-out

4.Ending balance 65524052.61 65524052.61

II. Accumulated depreciation and accumulated amortization

1.Opening balance 46136306.05 46136306.05

2.Current increased 734547.24 734547.24

(1) accrual or amortization 734547.24 734547.24

3.Current decreased

(1) disposal

(2) other transfer-out

4.Ending balance 46870853.29 46870853.29

III. Depreciation reserves

1.Opening balance

2.Current increased

(1) accrual

3. Current decreased

(1) disposal

(2) other transfer-out

4.Ending balance

113无锡威孚高科技集团股份有限公司2022年半年度报告全文

IV. Book value

1.Ending Book value 18653199.32 18653199.32

2.Opening Book value 19387746.56 19387746.56

(2) Investment real estate measured at fair value

□Applicable□Not applicable

(3) Investment real estate without property certification held

Nil

14. Fix assets

Unit: RMB/CNY

Item Ending balance Opening balance

Fix assets 2954329704.27 2932210452.51

Total 2954329704.27 2932210452.51

(1) Fixed assets

Unit: RMB/CNY

Machinery Transportation Electronic and

Item House and Building Total

equipment equipment other equipment

I. original book value:

1.Opening balance 1570238484.44 3540288690.19 32772506.07 714328321.31 5857628002.01

2.Current increased 3968861.62 150134593.58 1775227.26 77453375.33 233332057.79

(1) Purchase 11421478.97 280518.40 11701997.37

(2) Construction in

3968861.62138648414.761775227.2677172856.93221565360.57

progress transfer-in

(3) increased by

combination

(4) Financial lease

64699.8564699.85

transfer in

3.Current decreased 488813.38 55801683.90 541608.87 25693634.93 82525741.08

(1) disposal or

488813.3855801683.90541608.8725693634.9382525741.08

scrapping

4. Conversion of

foreign currency -1570653.76 -78182.36 -1648836.12

financial statement

5.Ending balance 1573718532.68 3633050946.11 34006124.46 766009879.35 6006785482.60

II. Accumulated

depreciation

1.Opening balance 439825229.29 1952082761.65 20404183.79 422378184.50 2834690359.23

2.Current increased 23668718.78 108449548.80 1094042.89 69868820.45 203081130.92

(1) accrual 23668718.78 108384848.95 1094042.89 69868820.45 203016431.07

(2) Financial lease

64699.8564699.85

transfer in

3.Current decreased 108540.49 44673027.09 440849.62 12955989.77 58178406.97

(1) disposal or

108540.4944673027.09440849.6212955989.7758178406.97

scrapping

4. Conversion of

foreign currency -1476090.66 -282881.62 -1758972.28

financial statement

5.Ending balance 463385407.58 2014383192.70 21057377.06 479008133.56 2977834110.90

III. Depreciation

reserves

1.Opening balance 84541933.61 73319.90 6111936.76 90727190.27

2.Current increased

114无锡威孚高科技集团股份有限公司2022年半年度报告全文

(1) accrual

3.Current decreased 15865748.28 239774.56 16105522.84

(1) disposal or

15865748.28239774.5616105522.84

scrapping

4.Ending balance 68676185.33 73319.90 5872162.20 74621667.43

IV. Book value

1.Ending Book value 1110333125.10 1549991568.08 12875427.50 281129583.59 2954329704.27

2.Opening Book

1130413255.151503663994.9312295002.38285838200.052932210452.51

value

(2) Temporarily idle fixed assets

Nil

(3) Fixed assets acquired by operating lease

Nil

(4) Fixed assets without property certification held

Unit: RMB/CNY

Item Book value Reasons for without the property certification

Plant and office building of Weifu Chang’an 33030126.18 Still in process of relevant property procedures

(5) Disposal of fixed assets

Nil

15. Construction in progress

Unit: RMB/CNY

Item Ending balance Opening balance

Construction in progress 500684157.53 387429933.08

Total 500684157.53 387429933.08

(1) Construction in progress

Unit: RMB/CNY

Ending balance Opening balance

Item Depreci Depreci

Book balance ation Book value Book balance ation Book value

reserves reserves

Technical transformation of

122449644.48122449644.4888688772.8588688772.85

parent company

Lot 103 phase V of the

112555657.23112555657.2389599174.4289599174.42

parent company

WFMS rebuilding of the

18686136.0618686136.0612185858.7412185858.74

parent company

Technical transformation of

102610702.98102610702.9872318870.7972318870.79

WFAM

Technical transformation of

10851400.1110851400.1113368288.8113368288.81

WFLD

Technical transformation of

28868788.1728868788.1723293601.3923293601.39

Denmark RID

Other project 104661828.50 104661828.50 87975366.08 87975366.08

Total 500684157.53 500684157.53 387429933.08 387429933.08

115无锡威孚高科技集团股份有限公司2022年半年度报告全文

(2) Changes of major projects under construction

Unit: RMB/CNY

includin

Accumu Interes

Other Proporti g:

Fixed lated t

Curren decre on of interest

assets amount capital

Bud Opening t ased Ending project Progre capitaliz

Item transfer- of ization Source of funds

get balance increas in the balance investm ss ed

in in the interest rate of

ed Perio ent in amount

Period capitaliz the

d budget of the

ation year

year

Technical

14637 Accumulate

transformation 886887 112610 122449

0931. funds of the

of parent 72.85 059.96 644.48

59 company

company

Lot 103 phase

22956 Accumulate

V of the 895991 112555

482.8 funds of the

parent 74.42 657.23

1 company

company

WFMS

Accumulate

rebuilding of 121858 6500 186861

funds of the

the parent 58.74 277.32 36.06

company

Technical 58916 Accumulate

72318828624102610

transformation 712.1 funds of the

70.79879.99702.98

of WFAM 8 company

Technical 22804 Accumulate

13368225321108514

transformation 206.3 funds of the

88.81095.0800.11

of WFLD 8 company

Technical

Accumulate

transformation 232936 5575 288687

funds of the

of Denmark 01.39 186.78 88.17

company

RID

26312

299454166556396022

Total 3797.

567.00035.03329.03

(3) The provision for impairment of construction projects

Nil

(4) Engineering materials

Nil

16. Right-of-use assets

Unit: RMB/CNY

Item House and Building Machinery equipment Total

I. Original book value:

1.Opening balance 17604684.01 21763912.85 39368596.86

2.Current increased 4586742.66 3286519.32 7873261.98

3.Current decreased 98126.31 98126.31

4. Conversion of foreign currency financial statement 164389.00 -543333.15 -378944.15

5.Ending balance 22355815.67 24408972.71 46764788.38

II. Accumulated depreciation

1.Opening balance 4140756.41 12079434.87 16220191.28

2.Current increased 1991793.85 133186.57 2124980.42

(1) Accrual 1991793.85 133186.57 2124980.42

3.Current decreased 38678.12 38678.12

116无锡威孚高科技集团股份有限公司2022年半年度报告全文

(1) Disposal

(2) Other 38678.12 38678.12

4. Conversion of foreign currency financial statement 35156.28 -334712.08 -299555.80

5.Ending balance 6167706.54 11839231.24 18006937.78

III. Depreciation reserves

1.Opening balance

2.Current increased

(1) Accrual

3.Current decreased

(1) Disposal

4.Ending balance

IV. Book value

1.Ending Book value 16188109.13 12569741.47 28757850.60

2.Opening Book value 13463927.60 9684477.98 23148405.58

17. Intangible assets

(1) Intangible assets

Unit: RMB/CNY

Trademark and

Non-patent Computer

Item Land use right Patent trademark Total

technology software

license

I. original book value

1.Opening balance 381012520.44 181889330.47 123152207.22 41597126.47 727651184.60

2.Current increased 0.00 0.00 0.00 13164056.03 0.00 13164056.03

(1) Purchase 13164056.03 13164056.03

(2) internal R&D

(3) increased by

combination

3.Current decreased 0.00 0.00 0.00 0.00 0.00 0.00

(1) disposal 0.00 0.00

4. Conversion of

foreign currency -4737184.37 -75126.18 -4812310.55

financial statement

5.Ending balance 381012520.44 0.00 177152146.10 136241137.07 41597126.47 736002930.08

II. accumulated

amortization

1.Opening balance 103617738.03 64204353.94 92880072.81 9709000.00 270411164.78

2.Current increased 4182399.21 0.00 7274384.09 10186855.50 0.00 21643638.80

(1) accrual 4182399.21 7274384.09 10186855.50 21643638.80

3.Current decreased

(1) disposal

4. Conversion of

foreign currency -1814061.02 -63232.04 -1877293.06

financial statement

5.Ending balance 107800137.24 0.00 69664677.01 103003696.27 9709000.00 290177510.52

III. Depreciation

reserves

1.Opening balance 16646900.00 16646900.00

2.Current increased

(1) accrual

117无锡威孚高科技集团股份有限公司2022年半年度报告全文

3.Current decreased

(1) disposal

4.Ending balance 16646900.00 16646900.00

IV. Book value

1.Ending Book value 273212383.20 0.00 107487469.09 33237440.80 15241226.47 429178519.56

2.Opening Book value 277394782.41 0.00 117684976.53 30272134.41 15241226.47 440593119.82

(2) Land use right without property certification held

Nil

18. Goodwill

(1) Original book value of goodwill

Unit: RMB/CNY

The invested

entity or

Opening balance Current increased Current decreased Ending balance

matters forming

goodwill

The invested

Formed by Translation of

entity or

Opening balance business foreign currency Disposal Ending balance

matters forming

combination statements

goodwill

Merged with

1784086.791784086.79

WFTT

Merged with

229470928.96-6829069.97222641858.99

Borit

Total 231255015.75 -6829069.97 224425945.78

(2) Goodwill depreciation reserves

Other explanation

1) Goodwill formed by the merger of WFTT:

In 2010 the Company controlling and combine WFTT by increasing the capital the goodwill is the number that combination cost

greater than the fair value of identical net assets of WFTT.

2) Goodwill formed by the merger of Borit:

In 2020 the company acquired 100.00% equity of Borit in the form of cash purchase the goodwill was the part that the cost of the

merger was greater than the fair value share of the identifiable net assets of Borit.

19. Long-term deferred expenses

Unit: RMB/CNY

Amortized in

Item Opening balance Current increased Other decrease Ending balance

the Period

Remodeling costs etc. 15304783.57 802773.19 4160293.14 0.00 11947263.62

Total 15304783.57 802773.19 4160293.14 0.00 11947263.62

20. Deferred income tax assets/Deferred income tax liabilities

(1) Deferred income tax assets that are not offset

Unit: RMB/CNY

Ending balance Opening balance

Item Deductible Deferred income tax Deductible temporary Deferred income tax

temporary difference assets difference assets

Unrealized profit from

42228033.406334205.0165251129.5510531677.19

insider transactions

118无锡威孚高科技集团股份有限公司2022年半年度报告全文

Bad debt provision 84662196.11 13027934.23 87681266.17 13383420.21

Inventory depreciation

237577309.8037278710.01224955223.9437688819.01

reserve

Depreciation reserves of

48551677.367319013.5757218038.148677481.50

fixed assets

Depreciation reserves of

16646900.002497035.0016646900.002497035.00

intangible assets

Deferred income 279305258.43 42180462.93 295502674.12 44620545.44

Payable salary accrued

1184211558.45180370131.321236037621.62188472847.67

expenses etc.Depreciation assets

46993667.627648746.4454047597.498868412.34

amortization difference

Deductible loss of

79414078.5217898035.1653658338.0511465129.69

subsidiary

Equity incentive 115567627.28 17856586.29 80742533.73 12498678.30

Fiscal and tax differences

378997.8472554.36378997.8472554.36

for leasing business

Total 2135537304.81 332483414.32 2172120320.65 338776600.71

(2) Deferred income tax liabilities that are not offset

Unit: RMB/CNY

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 10426145.95 1563921.87 10660027.75 1599004.14

merger not under the same control

The difference between the fair value

and taxation basis of IRD assets in a 62262316.74 13697709.68 68854748.78 15148044.73

merger not under the same control

The difference between the fair value

and taxation basis of Borit assets in a 22049472.63 5512368.16 25246551.70 6311637.91

merger not under the same control

Change of fair value of transaction

243001104.4336494552.16318337329.7447794985.96

financial asset

Accelerated depreciation of fixed assets 312152327.81 48772268.58 294934456.08 48772268.60

Total 649891367.56 106040820.45 718033114.05 119625941.34

(3) Deferred income tax assets and deferred income tax liabilities listed after off-set

Unit: RMB/CNY

Trade-off between Ending balance of Trade-off between the Opening balance of

the deferred deferred income tax deferred income tax deferred income tax

Item

income tax assets assets or liabilities after assets and liabilities at assets or liabilities after

and liabilities off-set period-begin off-set

Deferred income tax assets -85235107.64 247248306.68 -96528406.14 242248194.57

Deferred income tax

-85235107.6420805712.81-96528406.1423097535.20

liabilities

(4) Details of unrecognized deferred income tax assets

Unit: RMB/CNY

Item Ending balance Opening balance

Bad debt reserve 210616.89 216982.72

Inventory depreciation reserve 7902577.03 8144910.46

Loss from subsidiary 307204498.81 279247744.04

Depreciation reserves of fixed assets 26069990.07 33509152.13

Other equity instrument investment 13600000.00 13600000.00

119无锡威孚高科技集团股份有限公司2022年半年度报告全文

Equity incentive 3299059.19 2304871.81

Total 358286741.99 337023661.16

(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year

Unit: RMB/CNY

Maturity year Ending amount Opening amount Note

2022 3781066.93 Subsidiaries have operating losses

2023 485532.04 1171973.53 Subsidiaries have operating losses

2024 18520699.71 18520699.71 Subsidiaries have operating losses

2025 12151503.80 12151503.80 Subsidiaries have operating losses

2026 22596818.84 22596818.84 Subsidiaries have operating losses

2027 8082125.62 Subsidiaries have operating losses

Overseas subsidiaries have

No expiration period 245367818.80 221025681.23

operating losses

Total 307204498.81 279247744.04

21. Other non-current assets

Unit: RMB/CNY

Ending balance Opening balance

Item Provision Provision

Book balance for Book value Book balance for Book value

impairment impairment

Engineering

equipment paid in 417664761.50 417664761.50 267941354.57 267941354.57

advance

Total 417664761.50 0.00 417664761.50 267941354.57 0.00 267941354.57

22. Short-term loans

(1) Category of short-term borrowings

Unit: RMB/CNY

Item Ending balance Opening balance

Guaranteed Loan 72197000.00

Credit loan 4084272713.42 1264241086.57

Bill financing 100000000.00 100000000.00

Accrued interest 3410087.52 1520119.98

Total 4187682800.94 1437958206.55

(2) Overdue short-term loans without payment

Nil

23. Note payable

Unit: RMB/CNY

Category Ending balance Opening balance

Bank acceptance bill 1603408581.52 1760032216.30

Total 1603408581.52 1760032216.30

Notes expired at year-end without paid was 0.00 Yuan.

120无锡威孚高科技集团股份有限公司2022年半年度报告全文

Other instructions: The deposit paid for issuing the above bank acceptance bill was 41882720.34 yuan and the

pledged bills receivable was 478145099.57 yuan.

24. Account payable

(1) Account payable

Unit: RMB/CNY

Item Ending balance Opening balance

Within 1 year 4175265277.10 3066299727.36

1-2 years 35697326.45 64962570.18

2-3 years 15537530.83 52067026.49

Over three years 18494438.39 23324378.56

Total 4244994572.77 3206653702.59

(2) Important account payable with account age over one year

Nil

25. Accounts received in advance

(1) Accounts received in advance

Unit: RMB/CNY

Item Ending balance Opening balance

Within 1 year 6950948.17 2854518.96

Total 6950948.17 2854518.96

(2) Important accounts received in advance with account age over one year

Nil

26. Contractual liability

Unit: RMB/CNY

Item Ending balance Opening balance

Within 1 year 83891206.70 132406102.56

1-2 years 6993861.44 2681086.39

2-3 years 980715.77 132196.85

Over three years 1238881.37 1208250.59

Total 93104665.28 136427636.39

27. Wage payable

(1) Wage payable

Unit: RMB/CNY

Item Opening balance Current increased Current decreased Ending balance

I. Short-term compensation 207822331.67 563755117.95 629587546.74 141989902.88

II. Post-employment welfare- defined 20279307.31 77575291.02 77050211.90 20804386.43

121无锡威孚高科技集团股份有限公司2022年半年度报告全文

contribution plans

III. Dismissed welfare 1245327.09 65317.00 793904.69 516739.40

IV. Other welfare due within one year 93880000.00 28789384.41 65090615.59

V. Other short-term welfare-Housing

subsidies employee benefits and 16661536.63 50202.00 676827.00 16034911.63

welfare funds

Total 339888502.70 641445927.97 736897874.74 244436555.93

(2) Short-term compensation

Unit: RMB/CNY

Item Opening balance Current increased Current decreased Ending balance

1. Wages bonuses allowances

197176934.90427946015.89494611467.55130511483.24

and subsidies

2. Welfare for workers and staff 72058.92 53435111.58 53196916.36 310254.14

3. Social insurance 192691.73 35139421.94 35127823.25 204290.42

Including: Medical insurance 172605.50 28881038.83 28872696.66 180947.67

Work injury insurance 16653.30 3352037.11 3350742.65 17947.76

Maternity insurance 3432.93 2906346.00 2904383.94 5394.99

4. Housing accumulation fund 656874.00 39725051.00 39655442.00 726483.00

5. Labor union expenditure and

9611229.936924420.006405696.5610129953.37

personnel education expense

6.Other short-term salary-social

112542.19585097.54590201.02107438.71

security

Total 207822331.67 563755117.95 629587546.74 141989902.88

(3) Defined contribution plans

Unit: RMB/CNY

Item Opening balance Current increased Current decreased Ending balance

1. Basic endowment insurance 416445.06 60492393.14 60534131.19 374707.01

2. Unemployment insurance 25533.44 2004087.85 2015564.79 14056.50

3. Enterprise annuity 19837328.81 15078810.03 14500515.92 20415622.92

Total 20279307.31 77575291.02 77050211.90 20804386.43

28. Taxes payable

Unit: RMB/CNY

Item Ending balance Opening balance

Value-added tax 41776505.38 24533584.80

Corporation income tax 57082502.91 2317331.81

Individual income tax 510802.49 3528037.22

City maintaining & construction tax 2937740.31 1750188.23

Educational surtax 2099999.44 1250134.44

Other (including stamp tax and local

6423508.346726372.38

funds)

Total 110831058.87 40105648.88

122无锡威孚高科技集团股份有限公司2022年半年度报告全文

29. Other account payable

Unit: RMB/CNY

Item Ending balance Opening balance

Interest payable 5621.94 6184.14

Dividend payable 165975264.00 25671100.00

Other accounts payable 302282740.42 334228033.32

Total 468263626.36 359905317.46

(1) Interest payable

Unit: RMB/CNY

Item Ending balance Opening balance

Other 5621.94 6184.14

Total 5621.94 6184.14

Major overdue interest: nil

(2) Dividend payable

Unit: RMB/CNY

Item Ending balance Opening balance

Common stock dividend 165975264.00 25671100.00

Total 165975264.00 25671100.00

Other explanation including important dividends payable that have not been paid for more than 1 year and the reasons for non-

payment should be disclosed: Nil

(3) Other account payable

1) Classification of other accounts payable according to nature of account

Unit: RMB/CNY

Item Ending balance Opening balance

Deposit and margin 27357681.81 24601774.89

Social insurance and reserves funds that withholding 1504143.84 1695074.09

Intercourse funds of unit 30982145.98 33562145.98

Restricted Share repurchases obligations 238302620.00 269101020.00

Other 4136148.79 5268018.36

Total 302282740.42 334228033.32

2) Significant other payable with over one year age

Unit: RMB/CNY

Item Ending balance Reasons for non-repayment or carry-over

Nanjing Jidian Industrial Group Co. Ltd. 4500000.00 Intercourse funds

Restricted share repurchase obligation 238302620.00 Restricted stock repurchase business

Total 242802620.00

123无锡威孚高科技集团股份有限公司2022年半年度报告全文

30. Non-current liabilities due within one year

Unit: RMB/CNY

Item Ending balance Opening balance

Long-term borrowings due within one

27101755.7027744527.80

year

Lease payments due within one year 4571288.34 6318273.66

Interest payable 23516.67 25972.22

Total 31696560.71 34088773.68

31. Other current liabilities

Unit: RMB/CNY

Item Ending balance Opening balance

Rebate payable 160130711.03 198936922.68

Pending sales tax 9022910.40 14032348.87

Total 169153621.43 212969271.55

32. Long-term loans

(1) Category of Long-term loans

Unit: RMB/CNY

Item Ending balance Opening balance

Guaranteed loan 200000000.00

Total 200000000.00

33. Lease liability

Unit: RMB/CNY

Item Ending balance Opening balance

Lease Payments 21504518.33 15795469.25

Total 21504518.33 15795469.25

34. Long-term account payable

Unit: RMB/CNY

Item Ending balance Opening balance

Long-term account payable 13750000.00 13750000.00

Special accounts payable 18265082.11 18265082.11

Total 32015082.11 32015082.11

(1) Long-term account payable listed by nature

Unit: RMB/CNY

Item Ending balance Opening balance

Hi-tech Branch of Nanjing Finance Bureau (note * ) Financial support funds (2007) 1230000.00 1230000.00

Hi-tech Branch of Nanjing Finance Bureau (note * ) Financial support funds (2008) 2750000.00 2750000.00

Hi-tech Branch of Nanjing Finance Bureau (note * ) Financial support funds (2009) 1030000.00 1030000.00

Hi-tech Branch of Nanjing Finance Bureau (note * ) Financial support funds (2010) 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

Total 13750000.00 13750000.00

Other explanation:

124无锡威孚高科技集团股份有限公司2022年半年度报告全文

Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is

allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from 17 September 2007 to 17 September

2022. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.

Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is

allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from 10 November 2008 to 10 November

2023. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.

Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is

allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from 27 October 2009 to 27 October 2024.Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is

allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from 27 December 2010 to 27 December

2025. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.

Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is

allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from 28 December 2011 to 28 December

2026. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.

Note * : To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone financial supporting capital is

allotted by High-tech branch of Finance Bureau of Nanjing for supporting use the term is from 18 December 2013 to 18 December

2028. Provided that the operation period in the zone is less than 15 years financial supporting capital will be reimbursed.

(2) Special accounts payable

Unit: RMB/CNY

Opening Current Current Ending Cause of

Item

balance increased decreased balance formation

Removal compensation of subsidiary WFJN 18265082.11 18265082.11

Total 18265082.11 18265082.11

Other explanation:

In line with regulation of the house acquisition decision of People’s government of Xuanwu District Nanjing City Ning Xuan Fu

Zheng Zi (2012) No.001 part of the lands and property of WFJN needs expropriation in order to carry out the comprehensively

improvement of Ming Great Wall. According to the house expropriation and compensation agreement in state-owned lands signed

between WFJN and House Expropriation Management Office of Xuanwu District Nanjing City 19.7067 million yuan in total are

compensate including operation losses from lessee 1.4416 million yuan in total. The above compensation was received in last period

and is making up for the losses from lessee and the above lands and property have not been collected up to 30 June 2022.

35. Long-term wages payable

(1) Long-term wages payable

Unit: RMB/CNY

Item Ending balance Opening balance

1. Termination benefits 4829589.69 4829589.69

2. Other long-term benefits 103482333.50 103482333.50

Total 108311923.19 108311923.19

(2) Changes in defined benefit plans

Nil

125无锡威孚高科技集团股份有限公司2022年半年度报告全文

36. Deferred income

Unit: RMB/CNY

Item Opening balance Current increased Current decreased Ending balance Cause of formation

Government grants 298052867.56 685099.46 18721634.94 280016332.08

Total 298052867.56 685099.46 18721634.94 280016332.08

Item with government grants involved:

Unit: RMB/CNY

Amount Cost

New Amount

reckoned reduct Assets

Opening grants reckoned into Other

Item in non- ion in Ending balance related/Inco

balance in the other income changes

operation the me related

Period in the period

revenue period

Industrialization

project for injection

VE pump system with Assets

electronically 721000.26 721000.26 0.00 related/Inco

controlled high me related

pressure for less-

emission diesel used

Appropriation on

reforming of

production line

technology and R&D Assets

6318348.62390825.705927522.92

ability of common rail related

system for diesel by

distributive high-

voltage

Fund of industry Income

60520000.0060520000.00

upgrade (2013) related

R&D and

industrialization of

the high-pressure

Assets

variable pump of the 3817474.67 555205.50 3262269.17

common rail system

of diesel engine for

automobile

Research institute of

motor vehicle exhaust Assets

648660.17262398.42386261.75

aftertreatment related

technology

Fund of industry Income

36831000.0036831000.00

upgrade (2014) related

New-built assets

compensation after Assets

83134428.949245732.7673888696.18

the removal of parent related

company

Fund of industry Income

40000000.0040000000.00

upgrade (2016) related

Guiding capital for

the technical reform

Assets

from State Hi-Tech 5057667.33 635276.68 4422390.65

Technical

Commission

126无锡威孚高科技集团股份有限公司2022年半年度报告全文

Implementation of the

variable cross-section Assets

5882788.71777352.105105436.61

turbocharger for related

diesel engine

Demonstration project

Assets

for intelligent 652381.50 97052.14 555329.36

manufacturing

The 2nd batch of

provincial special

funds for industry Assets

3446350.12580448.742865901.38

transformation of related

industrial and

information in 2019

Municipal

technological reform Assets

4143406.07302165.363841240.71

fund allocation in related

2020

Strategic cooperation

agreement funding for

Assets

key enterprise of 4450869.59 319883.18 4130986.41

smart manufacturing

in high-tech zone

The 3rd batch of

provincial special

funds for industry Assets

13500000.0013500000.00

transformation of related

industrial and

information in 2021

Assets

7322

Other 28928491.58 4834294.10 -47163.42 24779296.94 related/Inco

62.88

me related

298052867.57322

Total 0.00 18721634.94 0.00 -47163.42 280016332.08

662.88

Other explanation:

(1) Appropriation on industrialization project of electrical control and high voltage jet VE system of low emissions diesel: in September

2009 WFJN signed “Project Contract of Technology Outcome Transferring Special Capital in Jiangsu Province” with Nanjing

Technical Bureau according to which WFJN received appropriation 6.35 million Yuan in 2009 4.775 million Yuan received in 2010

and 0.875 million Yuan received in 2011. According to the contract the attendance date of this project was: from October 2009 to

March 2012. This contract agreed 62% of newly increased investment in project would be spent in fixed assets investment which are

belongs to the government grand with assets/income concerned. In 2013 accepted by the science & technology agency of Jiangsu

Province and 4789997.04 Yuan with income related was reckoned into current operation revenue directly; the 7210002.96 Yuan

with assets related was amortized during the predicted service period of the assets and 721000.26 Yuan amortized in the Period.

(2) The appropriation for research and development ability of distributive high-pressure common rail system for diesel engine use and

production line technological transformation project: according to XCJ No. [2010] 59 the Company has received special funds of 7.1

million yuan appropriated by Finance Bureau of Wuxi New District in 2011 and used for the Company’s research and development

ability of distributive high-pressure common rail system for diesel engine use and production line technological transformation project;

this appropriation belongs to government grants related to assets amount of 390825.70 yuan was reversed based on the depreciation

schedule of the related assets during the period.

(3) Industry upgrading funds (2013): In accordance with the document Xi Xin Guan Jing Fa [2013] No.379 Xi Xin Guan Jing Fa

[2013] No.455 Xi Xin Guan Cai Fa [2013] No.128 and Xi Xin Guan Cai Fa [2013] No.153 the Company received funds of 60.52

million yuan appropriated for industry upgrading in 2013.

(4) R&D and industrialization of the high pressure variable pump of the common rail system of diesel engine for automobile: the

Company received appropriated for the project in 2013 with 8.05 million yuan in line with documents of Xi Ke Ji [2013] No.186 Xi

Ke Ji [2013] No.208 Xi Cai Gong Mao [2013] No.104 Xi Cai Gong Mao [2013] No.138 Xi Ke Ji [2014] No.125 Xi Cai Gong Mao

[2014] No.58 Xi Ke Ji [2014] No. 246 and Xi Cai Gong Mao [2014] No.162. Received 3 million yuan in 2014 and 0.45 million yuan

127无锡威孚高科技集团股份有限公司2022年半年度报告全文

in 2015; and belongs to government grant with assets concerned and shall be amortized according to the depreciation process amount

of 555205.50 yuan amortizes in the year.

(5) Vehicle exhaust after-treatment technology research institute project: in 2012 the subsidiary WFLD has applied for equipment

purchase assisting funds to Wuxi Huishan Science and Technology Bureau and Wuxi Science and Technology Bureau for the vehicle

exhaust after-treatment technology research institute project. This declaration has been approved by Wuxi Huishan Science and

Technology Bureau and Wuxi Science and Technology Bureau in 2012 and the company has received appropriation of 2.4 million

yuan in 2012 and received appropriation of 1.6 million yuan in 2013. This appropriation belongs to government grants related to assets

and will be amortized according to the depreciation process amount of 262398.42 yuan amortizes in the year.

(6) Industry upgrading funds (2014): In accordance with the document Xi Xin Guan Jing Fa [2014] No.427 and Xi Xin Guan Cai Fa

[2014] No.143 the Company received funds of 36.831 million yuan appropriated for industry upgrading in 2014.

(7) New-built assets compensation after the removal of parent company: policy relocation compensation received by the Company

and will be amortized according to the depreciation of new-built assets amount of 9245732.76 yuan amortizes in the year.

(8) Fund of industry upgrade (2016): In accordance with the document Xi Xin Guan Jing Fa [2016] No.585 and Xi Xin Fa [2016]

No.70 the Company received funds of 40 million yuan appropriated for industry upgrading in 2016.

(9) Guiding capital for the technical reform from State Hi-Tech Technical Commission: In accordance with the document Xi Jing Xin

ZH [2016] No.9 and Xi Cai GM [2016] No.56 the Company received a 9.74 million yuan for the guiding capital of technical reform

(1st batch) from Wuxi for year of 2016 and belongs to government grant with assets concerned and shall be amortized according to

the depreciation process amount of 635276.68 yuan amortize in the year.

(10) Implementation of the variable cross-section turbocharger for diesel engine: In accordance with the document YCZ Fa[2016]

NO.623 and “Strong Industrial Base Project Contract for year of 2016” subsidiary WFTT received a specific subsidy of 16.97 million

yuan (760000 yuan received in the period) the fund supporting strong industrial base project (made-in-China 2025) of central industrial

transformation and upgrading 2016 from Ministry of Industry and Information Technology; and belongs to government grant with

assets concerned and shall be amortized according to the depreciation process amount of 777352.10 yuan amortize in the year.

(11) Demonstration project for intelligent manufacturing: under the Notice Relating to Selection of the Intelligent Manufacturing Model

Project in Huishan District in 2016 (HJXF[2016]No.36) a fiscal subsidy of 3000000 yuan was granted by relevant government

authority in Huishan district to our subsidiary WFLD in 2017 to be utilized for transformation and upgrade of WFLD’s intelligent

manufacturing facilities. This subsidy belongs to government grant related to assets which shall be amortized based on the depreciation

progress of the assets. Amortization for the year amounts to 97052.14 yuan.

(12) The 2nd batch of provincial special funds for industry transformation of industrial and information in 2019: according to XCGM

[2019] No. 121 the Company received a special fund of 5 million yuan in 2020 this subsidy was related to the "Weifu High-Technology

New Factory Internet Construction" projects and belonged to government grants related to assets. and shall be amortized according to

the depreciation process amount of 580448.74 yuan amortize in the year.

(13) Municipal technological reform fund allocation in 2020: according to XGXZH [2020] No. 16 the Company received 4.77 million

yuan of municipal technological transformation fund project allocation in 2020 which was related to key technological transformation

projects and belonged to government grants related to assets. and shall be amortized according to the depreciation process amount of

302165.36 yuan amortize in the year.

(14) Strategic cooperation agreement funding for key enterprise of smart manufacturing in high-tech zone: according to XXGXF [2020]

No. 61 the Company received a related grant of 4.06 million yuan in 2020 0.7 million yuan received in the Period this grant was

related to the intelligent transformation project and belonged to the government grants related to assets. and shall be amortized

according to the depreciation process amount of 319883.18 yuan amortize in the year.

(15) The 3rd batch of provincial special funds for industry transformation of industrial and information in 2021: according to the SCGM

[2021] No.92 the government grant 13.5 million yuan received in 2021 was for the research development and industrialization of

membrane electrodes for high-performance automotive proton exchange membrane fuel cells which was an assets related government

grants.

37. Share capital

Unit: RMB/CNY

128无锡威孚高科技集团股份有限公司2022年半年度报告全文

Change during the period (+ -)

Opening balance Shares transferred New shares Bonus Ending balance

from capital Other Subtotal

issued share

reserve

Total shares 1008659570.00 1008659570.00

38. Capital reserve

Unit: RMB/CNY

Item Opening balance Current increased Current decreased Ending balance

Capital premium (Share

3238990188.723238990188.72

capital premium)

Other Capital reserve 132353984.10 34733141.01 167087125.11

Total 3371344172.82 34733141.01 3406077313.83

Other explanation including changes in the period and reasons for changes;

Other capital reserves have 34733141.01 yuan increased in the current period which is the net amount after deducting the

35819280.93 yuan amount attributable to shareholders from share-based payment fee 1086139.92 yuan settled by equity.

39. Treasury stock

Unit: RMB/CNY

Current

Item Opening balance Current increased Ending balance

decreased

Share repurchases 1148777.74 100001057.07 101149834.81

Repurchase obligation of

269101020.0030798400.00238302620.00

restricted stock incentive plan

Total 270249797.74 100001057.07 30798400.00 339452454.81

Other explanations including changes in the current period and explanations of the reasons for the changes:

Share repurchase: shares increased due to the repurchase of 4982800.00 shares by way of centralized bidding in 2022

Repurchase obligation of restricted stock incentive plan：The decrease of 30798400.00 yuan in the current period is the cash

dividend received by the restricted stock incentive object in the current period.

40. Other comprehensive income

Unit: RMB/CNY

Current period

Less:

written

in other

compreh

ensive

income

in Belong to

Account previous Less:

Opening previous Belong to minority Ending

Item before period income

balance period parent company sharehold balance

income tax in and tax

and after tax ers after

the year carried expense

carried tax

forward

to gains

retained

and

earnings

losses in

current

period

129无锡威孚高科技集团股份有限公司2022年半年度报告全文

I. Other

comprehensive

income that

16008.8016008.80

cannot be

reclassified to

profit or loss

Other

comprehensive

income that

cannot be

16008.8016008.80

transferred to

profit or loss

under the equity

method

II. Other

comprehensive

income items -

---

which will be 12679652.

36762353.4012679652.1649442005.56

reclassified 16

subsequently to

profit or loss

Conversion

difference of -

---

foreign currency 12679652.

36762353.4012679652.1649442005.56

financial 16

statement

Total other -

---

comprehensive 12679652.

36746344.6012679652.1649425996.76

income 16

Other explanation including the adjustment on initial recognition for arbitrage items that transfer from the effective part of cash flow

hedge profit/loss: nil

41. Reasonable reserve

Unit: RMB/CNY

Item Opening balance Current increased Current decreased Ending balance

Safety production costs 712215.31 13239465.25 12236215.31 1715465.25

Total 712215.31 13239465.25 12236215.31 1715465.25

Other explanation including changes and reasons for changes:

(1) Instructions for the withdrawing of special reserves (safe production cost): According to the CQ [2012] No. 16 - Administrative

Measures on the Withdrawing and Use of Enterprise Safety Production Expenses jointly issued by the Ministry of Finance and the

State Administration of Work Safety in the current period the Company adopted excess retreat method for quarterly withdrawal by

taking the actual operating income of the previous period as the withdrawing basis.

(2) Among the above safety production costs including the safety production costs accrual by the Company in line with regulations

and the parts enjoy by shareholders of the Company in safety production costs accrual by subsidiary in line with regulations.

42. Surplus reserve

Unit: RMB/CNY

Item Opening balance Current increased Current decreased Ending balance

Statutory surplus reserves 510100496.00 510100496.00

Total 510100496.00 510100496.00

43. Retained profit

Unit: RMB/CNY

Item Current period Last period

130无锡威孚高科技集团股份有限公司2022年半年度报告全文

Retained profits at the end of last year before adjustment 14814787377.86 13756102424.62

Retained profits at the beginning of the year after adjustment 14814787377.86 13756102424.62

Add: The net profits belong to owners of patent company of this period 1232762710.95 2575371419.80

Less: cash dividends payable 1609059668.80 1513341439.50

Less: Withdraw employee rewards and welfare funds 4081359.92

Add: Net effect of disposal other equity instrument investment 736332.86

Retained profit at period-end 14438490420.01 14814787377.86

Details about adjusting the retained profits at the beginning of the period:

1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the retained

profits at the beginning of the period amounting to 0 yuan.

2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0 yuan.

3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0 yuan

4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 yuan.

5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 yuan

44. Operating income and cost

Unit: RMB/CNY

Current period Last Period

Item

Income Cost Income Cost

Main operating 7112804273.14 5858547460.17 8767778890.21 7264238382.73

Other business 209031087.84 166024282.54 269912866.03 233678774.34

Total 7321835360.98 6024571742.71 9037691756.24 7497917157.07

Information on the top five items of revenue recognized during the reporting period:

Unit: RMB/CNY

Serial Name Income amount

1 RBCD 1633269280.49

2 Customer 1 777256393.13

3 Robert Bosch Company 724668201.55

4 Customer 2 678105449.94

5 Customer 3 269171662.59

45. Operating tax and extras

Unit: RMB/CNY

Item Current period Last Period

City maintaining & construction tax 8634987.02 14341221.75

Educational surtax 6170777.25 10225750.57

Property tax 8897091.90 8796684.97

Land use tax 2253305.65 2254956.27

Vehicle use tax 3985.52 4723.44

Stamp duty 2394141.59 2318539.73

Other taxes 523132.85 267617.59

Total 28877421.78 38209494.32

46. Sales expenses

Unit: RMB/CNY

131无锡威孚高科技集团股份有限公司2022年半年度报告全文

Item Current period Last Period

Salary and fringe benefit 24952862.28 26304864.83

Consumption of office materials and

3302587.074474074.11

business travel charge

Warehouse charge 1044900.83 3451305.60

Three guarantees and quality cost 30734960.85 41751346.64

Business entertainment fee 9087067.46 12819753.95

Other 9898213.94 22392270.43

Total 79020592.43 111193615.56

47. Administration expenses

Unit: RMB/CNY

Item Current period Last Period

Salary and fringe benefit 151774582.74 150875422.64

Depreciation charger and long-term

37588034.1035267896.09

assets amortization

Consumption of office materials and

6085675.947618286.05

business travel charge

Share-based payment 22799516.92 24256881.94

Other 58964445.09 48207891.60

Total 277212254.79 266226378.32

48. R&D expenses

Unit: RMB/CNY

Item Current period Last Period

Technological development expenses 289631376.50 249583255.99

Total 289631376.50 249583255.99

49. Financial expenses

Unit: RMB/CNY

Item Current period Last Period

Interest expenses 34275262.65 14244003.27

Note discount interest expenses 3052594.14 13128344.93

Less: interest income 13927929.36 16673615.70

Gains/losses from exchange 4316196.05 928280.82

Handling charges 2057941.09 4308059.74

Total 29774064.57 15935073.06

50. Other income

Unit: RMB/CNY

Sources of income generated Current period Last Period

Government grants with routine

26095621.9323433211.68

operation activity concerned

Total 26095621.93 23433211.68

132无锡威孚高科技集团股份有限公司2022年半年度报告全文

51. Investment income

Unit: RMB/CNY

Item Current period Last Period

Income of long-term equity investment

823400731.10962736510.68

calculated based on equity

Investment income from holding financial

964645.903468760.80

assets available for sales

Investment income of financial products 105107324.41 140176231.37

Other -680357.44 -609970.51

Total 928792343.97 1105771532.34

52. Income from change of fair value

Unit: RMB/CNY

Sources Current period Last Period

Changes in the fair value of wealth management products 3290951.54 5597561.64

Changes in the fair value of the stocks of listed companies held-excluding the stocks

-77723879.68-91729334.10

of listed companies that are included in other equity instrument investments

Total -74432928.14 -86131772.46

53. Credit impairment loss

Unit: RMB/CNY

Item Current period Last Period

Bad debt loss 2083427.81 6750336.12

Total 2083427.81 6750336.12

54. Assets impairment loss

Unit: RMB/CNY

Item Current period Last Period

Loss of inventory falling price and loss of

-104219783.98-103997387.44

contract performance cost impairment

Total -104219783.98 -103997387.44

55. Income from assets disposal

Unit: RMB/CNY

Sources Current period Last Period

Income from disposal of non-current

3597231.293076178.86

assets

Losses from disposal of non-current

-1706951.34-149592.04

assets

Total 1890279.95 2926586.82

133无锡威孚高科技集团股份有限公司2022年半年度报告全文

56. Non-operating income

Unit: RMB/CNY

Amount reckoned into current

Item Current period Last Period

non-recurring gains/losses

Other 218285.29 488184.66 218285.29

Total 218285.29 488184.66 218285.29

Government subsidies included in the current profit and loss: nil

57. Non-operating expense

Unit: RMB/CNY

Amount reckoned into current

Item Current period Last Period

non-recurring gains/losses

Donation 160000.00

Total non-current asset

2175378.87625271.192175378.87

retirement losses

Including: loss of fixed assets

2175378.87625271.192175378.87

scrap

Other 21187.00 66356.11 21187.00

Total 2196565.87 851627.30 2196565.87

58. Income tax expense

(1) Income tax expense

Unit: RMB/CNY

Item Current period Last Period

Payable tax in current period 106918042.74 248833342.25

Adjusted the previous income tax 281934.62 1167902.15

Increase/decrease of deferred income tax

6279057.80-131973066.28

assets

Increase/decrease of deferred income tax

-12925247.95-55516.90

liability

Total 100553787.21 117972661.22

(2) Adjustment on accounting profit and income tax expenses

Unit: RMB/CNY

Item Current period

Total profit 1370978589.16

Income tax measured by statutory/applicable tax rate 205646788.37

Impact by different tax rate applied by subsidies 13053639.86

Adjusted the previous income tax 281934.62

Impact by non-taxable revenue -112982994.62

134无锡威孚高科技集团股份有限公司2022年半年度报告全文

Impact on cost expenses and losses that unable to deducted -9390248.84

Impact by the deductible losses of the un-recognized previous deferred

-6429812.52

income tax

The deductible temporary differences or deductible losses of the un-

5235274.07

recognized deferred income tax assets in the Period

Other 5139206.27

Income tax expense 100553787.21

59. Other comprehensive income

See Note VII. 40 “Other comprehensive income”

60. Items of ash flow statement

(1) Other cash received in relation to operation activities

Unit: RMB/CNY

Item Current period Last Period

Interest income 13927929.36 16673615.70

Government grants 8106249.87 6670613.29

Other 404502.49 493488.03

Total 22438681.72 23837717.02

(2) Other cash paid in relation to operation activities

Unit: RMB/CNY

Item Current period Last Period

Cash cost 254434197.77 250964650.29

Other 18468018.35 9252217.76

Total 272902216.12 260216868.05

(3) Cash received from other investment activities

Unit: RMB/CNY

Item Current period Last Period

Borit acquisition money returned 1108314.69

Total 1108314.69

(4) Cash paid related with investment activities

Nil

(5) Other cash received in relation to financing activities

Nil

(6) Cash paid related with financing activities

Unit: RMB/CNY

Item Current period Last Period

Loans of Wuxi Industry Group are paid 5470000.00

135无锡威孚高科技集团股份有限公司2022年半年度报告全文

by WFLD

National debt paid transfer to loans 345194.00

Lease payments 865486.76 1104682.01

Share repurchase 100001057.07

Total 100866543.83 6919876.01

61. Supplementary information to statement of cash flow

(1) Supplementary information to statement of cash flow

Unit: RMB/CNY

Supplementary information Current period Last Period

1. Net profit adjusted to cash flow of operation activities:

Net profit 1270424801.95 1689043185.12

Add: Assets impairment provision 102136356.17 97247051.32

Depreciation of fixed assets consumption of oil assets and depreciation

203750978.31188585414.05

of productive biology assets

Depreciation of right-of-use assets 2124980.42 3246652.07

Amortization of intangible assets 21643638.80 22053152.82

Amortization of long-term deferred expenses 4160293.14 10464905.27

Loss from disposal of fixed assets intangible assets and other long-

-1890279.95-2926586.82

term assets (gain is listed with “-”)

Losses on scrapping of fixed assets (gain is listed with “-”) 2175378.87 625271.19

Gain/loss of fair value changes (gain is listed with “-”) 74432928.14 86131772.46

Financial expenses (gain is listed with “-”) 36972909.58 14026658.93

Investment loss (gain is listed with “-”) -929472701.41 -1105771532.34

Decrease of deferred income tax asset ((increase is listed with “-”) 6279057.80 -134106651.78

Increase of deferred income tax liability (decrease is listed with “-”) -12925247.95 -2907134.81

Decrease of inventory (increase is listed with “-”) 1265262274.11 622604921.62

Decrease of operating receivable accounts (increase is listed with “-”) -5235236937.97 -44866280.95

Increase of operating payable accounts (decrease is listed with “-”) 659261306.91 -1402007014.29

Other 36918218.19 38747825.31

Net cash flows arising from operating activities -2493982044.89 80191609.17

2. Material investment and financing not involved in cash flow

Conversion of debt into capital

Switching Company bonds due within one year

financing lease of fixed assets

3. Net change of cash and cash equivalents:

Balance of cash at period end 1490785302.80 1476008228.28

Less: Balance of cash equivalent at period-begin 1094018936.73 944946018.70

Add: Balance at period-end of cash equivalents

Less: Balance at period-begin of cash equivalents

Net increase of cash and cash equivalents 396766366.07 531062209.58

(2) Net cash payment for the acquisition of a subsidiary in the period

Nil

136无锡威孚高科技集团股份有限公司2022年半年度报告全文

(3) Net cash received from the disposal of subsidiaries

Nil

(4) Constitution of cash and cash equivalent

Unit: RMB/CNY

Item Ending balance Opening balance

I. Cash 1490785302.80 1094018936.73

Including: Cash on hand 97884.43 150438.79

Bank deposit available for payment at any time 1490687418.37 1093868497.94

III. Balance of cash and cash equivalents at the period-

1490785302.801094018936.73

end

Other explanation:

The difference between bank deposits available for payment at any time and the bank deposits in Note VII. 1 "Monetary Funds" is

the company's fixed deposits in the bank.

62. Note of the changes of owners’ equity

Explain the items and amount at period-end adjusted for “Other” at end of the last year: nil

63. Assets with ownership or use right restricted

Unit: RMB/CNY

Book value at

Item Restriction reason

period-end

Monetary fund 41882720.34 Cash deposit paid for bank acceptance

Note receivable 335966479.97 Notes pledge for bank acceptance

Monetary fund 188440.00 Cash deposit for Mastercard

Monetary fund 4185316.40 Court freeze

Account

receivable 142178619.60 Notes pledge for bank acceptance

financing

In accordance with the civil ruling No.(2016)Y03MC2490 and No.(2016)

Y03MC2492 of Guangdong Shenzhen Intermediate People's Court the property with

the value of 217 million yuan under the name of the Company and other seven

Trading financial

188795623.32 respondents and the third party Shenzhen Hejun Chuangye Holdings Co. Ltd.

asset

(Hereinafter referred to as Hejun Company) was frozen. As of the end of the reporting

period 4.71 million shares of Miracle Automation and 11739102 shares of SDEC

held by the Company were frozen.Total 713197199.63

64. Item of foreign currency

(1) Item of foreign currency

Unit: RMB/CNY

Closing balance of foreign Ending RMB balance

Item Rate of conversion

currency converted

Monetary fund

Including: USD 6306874.16 6.7114 42327959.18

137无锡威孚高科技集团股份有限公司2022年半年度报告全文

EUR 20343256.77 7.0084 142573634.99

HKD 16555587.57 0.8552 14158338.49

JPY 361309032.00 0.049136 17753280.60

DKK 5875093.79 0.9422 5535513.37

Account receivable

Including: USD 5703570.03 6.7114 38278939.90

EUR 1123220.09 7.0084 7871975.68

JPY 7091196.00 0.049136 348433.01

DKK 19264105.05 0.9422 18150639.78

Long-term loans

Including: USD

EUR

HKD

Other account receivables

Including: DKK 3183888.87 0.9422 2999860.09

Short-term loans

Including: USD 1106598.36 6.7114 7426824.23

EUR 27373707.15 7.0084 191845889.19

Account payable

Including: USD 770313.72 6.7114 5169883.50

EUR 2403640.58 7.0084 16845674.64

JPY 24899918.00 0.049136 1223482.37

CHF 209442.70 7.0299 1472361.24

DKK 12537073.02 0.9422 11812430.20

GBP 2450.00 8.1365 19934.43

Other account payable

Including: USD 1087.90 6.7114 7301.33

DKK 140969.52 0.9422 132821.48

Non-current liabilities due

within one year

Including: EUR 460417.53 7.0084 3226790.22

DKK 1114977.70 0.9422 1050531.99

(2) Explanation on foreign operational entity including as for the major foreign operational entity disclosed

main operation place book-keeping currency and basis for selection; if the book-keeping currency changed

explain reasons

□Applicable □Not applicable

Subsidiary of the Company IRD was established in Denmark in 1996. The 66% equity of IRD were required by the Company in cash

in April 2019 and in October 2020 increasing the shareholding to 34.00% by cash purchase. After the increase in holdings the

company acquired 100.00% of the company's equity. Book-keeping currency of IRD was Danish krone and IRD mainly engaged in

the R&D production and sales of fuel cell components.Subsidiary Borit was established in Belgium in 2010. the Company acquired 100% equity of Borit by cash acquisition in November

2020. Borit is denominated in Euro and engaged in the R&D production and sales of fuel cell components.

138无锡威孚高科技集团股份有限公司2022年半年度报告全文

65. Government grants

(1) Government grants

Unit: RMB/CNY

Amount reckoned in

Category Amount Item

current gain/loss

Construction of the R&D center for fuel cells in Denmark 800000.00 Other income 800000.00

Job stabilization subsidy 2310744.62 Other income 2310744.62

2021 the 28th batch of grants for Enterprise Technology Center

1000000.00 Other income 1000000.00

of Zhejiang Province

Subsidy funds for manufacturing individual champions

500000.00 Other income 500000.00

specializing in new small giants

2020 the financial support funds for introduce investment

583329.00 Other income 583329.00

enterprise Tong Cai (2016) No. 187

Construction of innovation pilot benchmark 90000.00 Other income 90000.00

Funding of talent training 330000.00 Other income 330000.00

Service charge for three agencies 993890.43 Other income 993890.43

Other 1498285.82 Other income 1498285.82

Total 8106249.87

(2) Government grants rebate

□Applicable□Not applicable

66. Other

Nil

VIII. Changes of consolidation scope

1. Enterprise combined under the different control

(1) Enterprise combines not under the same control occurred in the period

Nil

(2) Combination cost and goodwill

Nil

(3) Identifiable assets and liability on purchasing date under the purchaser

Nil

(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing date

Whether it is a business combination realized by two or more transactions of exchange and a transaction of

obtained control rights in the Period or not

□Yes □No

139无锡威孚高科技集团股份有限公司2022年半年度报告全文

(5) Notes relating to the purchase date or the end of the period in which the merger consideration or the fair

value of the purchasee’s identifiable assets and liabilities cannot be reasonable determined

Nil

(6) Other explanation

Nil

2. Enterprise combines under the same control

(1) Business combinations under the same control that occurred in the current period

Nil

(2) Consolidation cost

Nil

(3) Book value of assets and liabilities of the merged party on the merger date

Nil

3. Reverse purchase

Basic information of the transaction the basis on which the transaction constitutes a reverse purchase whether the

assets and liabilities retained by the listed company constitute a business and the basis thereof the determination of

the merger cost the amount of the adjusted equity according to the equity transactions and its calculation: NA

4. Disposal of subsidiaries

Whether there is a single disposal of an investment in a subsidiary that resulted in a loss of control

□Yes □No

Whether there is a step-by-step disposal of investment in a subsidiary through multiple transactions and loss of

control during the period

□Yes □No

5. Other reasons for consolidation range changed

Explanation on changes in the scope of consolidation due to other reasons (e.g. new establishment of a subsidiary subsidiary

liquidation etc.) and related information:

On June 30 2022 a Japanese company co-invested in the Wuxi Weifu Qinglong Power Technology Co. Ltd with IRD FUEL CELLS

A/S BORIT NV ROBERT BOSCH INTERNATIONALE BETEILIGUNGEN AG and Wuxi High-Tech Zone New Dynamic

Industrial Development Fund (Limited Partnership) the Company holds 45% equity directly and 30% equity indirectly.

6. Other

Nil

140无锡威孚高科技集团股份有限公司2022年半年度报告全文

IX. Equity in other entity

1. Equity in subsidiary

(1) Constitute of enterprise group

Main Share-holding ratio

Registered

Subsidiary operation Business nature Acquired way

place Directly Indirectly

place

Spare parts of internal- Enterprise combines under

WFJN Nanjing Nanjing 80.00%

combustion engine the same control

Automobile exhaust Enterprise combines under

WFLD Wuxi Wuxi 94.81%

purifier muffler the same control

Spare parts of internal-

WFMA Wuxi Wuxi 100.00% Investment

combustion engine

Spare parts of internal-

WFCA Wuxi Wuxi 100.00% Investment

combustion engine

Enterprise combines under

WFTR Wuxi Wuxi Trading 100.00%

the same control

Spare parts of internal-

WFSC Wuxi Wuxi 66.00% Investment

combustion engine

Spare parts of internal- Enterprise combined under

WFTT Ningbo Ningbo 98.83% 1.17%

combustion engine the different control

Spare parts of internal- Enterprise combined under

WFAM Wuxi Wuxi 51.00%

combustion engine the different control

WFLD Automobile exhaust

Wuhan Wuhan 60.00% Investment

(WUHAN) purifier muffler

WFLD Chongqin Automobile exhaust

Chongqing 100.00% Investment

(Chongqing) g purifier muffler

WFLD Automobile exhaust

Nanchang Nanchang 100.00% Investment

(Nanchang) purifier muffler

WFAS Wuxi Wuxi Smart car device 66.00% Investment

Enterprise combined under

WFDT Wuxi Wuxi Wheel motor 80.00%

the different control

WFFC Wuxi Wuxi Fuel cell components 45.00% 30.00% Investment

SPV Denmark Denmark Investment 100.00% Investment

Enterprise combined under

IRD Denmark Denmark Fuel cell components 100.00%

the different control

Enterprise combined under

IRD America America America Fuel cell components 100.00%

the different control

Enterprise combined under

Borit Belgium Belgium Fuel cell components 100.00%

the different control

Enterprise combined under

Borit America America America Fuel cell components 100.00%

the different control

Explanation on share-holding ratio in subsidiary different from ratio of voting right: nil

(2) Important non-wholly-owned subsidiary

Unit: RMB/CNY

Dividend announced to

Share-holding ratio Gains/losses attributable to Ending equity of

Subsidiary distribute for minority in

of minority minority in the Period minority the Period

WFJN 20.00% 13647361.87 220264640.74

WFSC 34.00% 3558197.18 24614948.50

WFLD 5.19% 4689571.65 139655362.58

WFAM 49.00% 15808199.77 205837114.54

Total 37703330.47 590372066.36

Explanation on holding ratio different from the voting right ratio for minority shareholders: nil

141无锡威孚高科技集团股份有限公司2022年半年度报告全文

(3) Main finance of the important non-wholly-owned subsidiary

Unit: RMB/CNY

Ending balance

Subsidiary Non -current Current Non-current

Current assets Total assets Total liabilities

assets liabilities liabilities

1472348435.9

WFJN 1158547830.40 313800605.52 332967393.67 36844671.80 369812065.47

WFSC 194100650.20 49340187.51 243440837.71 170649693.14 170649693.14

1419720518.76271286452.43631534169.63851176983.2

WFLD 4851565933.64 219642813.61

9334

WFAM 411355529.72 524911152.62 936266682.34 452201892.87 64732998.05 516934890.92

2307772464.48923342408.44587353149.34908573632.7

Total 6615569943.96 321220483.46

4017

Unit: RMB/CNY

Opening balance

Subsidi

ary Non -current Non-current Current assets Total assets Current liabilities Total liabilities

assets liabilities

WFJN 1163244507.43 312639160.97 1475883668.40 403140636.22 39065672.06 442206308.28

WFSC 216066879.24 46302741.60 262369620.84 200467446.49 200467446.49

WFLD 4503223903.30 1354614615.10 5857838518.40 3558321743.41 21480042.25 3579801785.66

WFAM 413380063.83 483832825.41 897212889.24 450194211.90 59932162.99 510126374.89

Total 6295915353.80 2197389343.08 8493304696.88 4612124038.02 120477877.30 4732601915.32

Unit: RMB/CNY

Current period

Subsidiary Total comprehensive Cash flow from operation

Operation Income Net profit

income activity

WFJN 447804363.41 65145897.60 65145897.60 -51110746.71

WFSC 226170484.98 10460851.26 10460851.26 -33350047.74

WFLD 3287233284.58 138297551.67 138297551.67 397683438.88

WFAM 330358273.12 32245277.07 32245277.07 92627392.88

Total 4291566406.09 246149577.60 246149577.60 405850037.31

Unit: RMB/CNY

Last Period

Subsidiary Total comprehensive Cash flow from operation

Operation Income Net profit

income activity

WFJN 541395186.39 88001445.49 88001445.49 -11789938.06

WFSC 206427800.85 10430300.86 10430300.86 45758253.85

WFLD 4394119908.54 139109362.55 139109362.55 -670433668.67

WFAM 308180892.75 34874756.04 34874756.04 25574054.82

Total 5450123788.53 272415864.94 272415864.94 -610891298.06

(4) Significant restrictions on the use of enterprise group assets and pay off debts of the enterprise group

Nil

(5) Financial or other supporting offers to the structured entity included in consolidated financial statement

range

Nil

142无锡威孚高科技集团股份有限公司2022年半年度报告全文

2. Transaction that has owners’ equity shares changed in subsidiary but still with controlling rights

(1) Owners’ equity shares changed in subsidiary

Nil

(2) Impact on minority’s interest and owners’ equity attributable to parent company

Nil

3. Equity in joint venture and associated enterprise

(1) Important joint venture and associated enterprise

Share-holding ratio Accounting

Main treatment on

Regist

operat investment for

Joint venture or associated enterprise ered Business nature

ion Directly Indirectly joint venture and place

place associated

enterprise

Wuxi Weifu Environmental Catalysts. Co.Wuxi Wuxi Catalyst 49.00% Equity method

Ltd.Internal-combustion

RBCD Wuxi Wuxi 32.50% 1.50% Equity method

engine accessories

Zhonglian Automobile Electronics Co. Shang Shang Internal-combustion

20.00% Equity method

Ltd. hai hai engine accessories

Wuxi Weifu Precision Machinery Internal-combustion

Wuxi Wuxi 20.00% Equity method

Manufacturing Co. Ltd. engine accessories

Changchun Xuyang Weifu Automobile Chang Chang Automobile

34.00% Equity method

Components Technology Co. Ltd. chun chun components

Germa Germa Fuel cell

PrecorsGmbH 8.11% Equity method

ny ny components

Wuxi ChelianTianxia Information

Wuxi Wuxi Telematics services 8.83% Equity method

Technology Co. Ltd.Holding shares ratio different from the voting right ratio: nil

Has major influence with less 20% voting rights hold or has minor influence with over 20% (20% included) voting rights hold:

(1)Precors GmbH:

Wholly-owned subsidiary of the Company - Borit holds 8.11% equity of Precors Borit appointed a director to Precors. Though the

representative Borit can participate in the operation policies formulation of Precors and thus exercise a significant influence over

Precors.

(2)ChelianTianxia:

The Company holds 8.8295% equity of Chelian Tianxia and appointed a director to Chelian Tianxia. Though the representative the

Company can participate in the operation policies formulation of Chelian Tianxi and thus exercise a significant influence over Chelian

Tianxi.

(2) Main financial information of the important joint venture

Nil

(3) Main financial information of the important associated enterprise

Unit: RMB/CNY

Ending balance/Current period Opening balance/Last Period

Zhonglian Zhonglian

WFEC RBCD WFEC RBCD

Electronics Electronics

3102810812.315083675405.61201826767.84359756878.814697384325.8

Current assets 71871241.06

05087

Non -current 6530286742.4 6819520183.8

337992109.462903051707.73344385727.943080929311.51

assets 7 9

3440802921.717986727113.37732113510.24704142606.817778313637.36891391424.9

Total assets

687285

Current 1176624832.7 2858118635.5

9397043991.47974515296.058623318592.842970685.68

liabilities 6 1

143无锡威孚高科技集团股份有限公司2022年半年度报告全文

Non-current

496355986.252547905.48224616134.382578140.19

liabilities

1672980819.03082734769.8

Total liabilities 9397043991.47 977063201.53 8623318592.84 5548825.87

Minority

shareholders’

equity

Attributable to

parent company 1767822102.7 6755050308.7 1621407836.9 6885842599.0

8589683121.919154995044.54

shareholders’ 5 4 3 8

equity

Share of net

assets calculated 1351010061.7 1377168519.8

866232830.352920492261.44794489840.103112698315.15

by shareholding 5 2

ratio

Adjustment

items

--Goodwill 267788761.35 1407265.96 267788761.35 1407265.96

--Unrealized

profit of internal -30013111.43 -40372840.77

trading

--other -0.28 -0.01 -0.28 -0.01

Book value of

equity

1352417327.71378575785.7

investment in 866232830.35 3158267911.08 794489840.10 3340114235.45

associated

enterprise e

Fair value of the

equity

investment of

associated

enterprise with

public offers

concerned

Operation 2448287999.5 4268529267.9 10208920776.8

8322989203.329460906.8211255332.80

income 4 7 1

Net profit 142874508.54 1687151931.01 841207709.66 184342978.45 1988551544.06 891476084.86

Net profit of the

termination of

operation

Other

comprehensive

income

Total

comprehensive 142874508.54 1687151931.01 841207709.66 184342978.45 1988551544.06 891476084.86

income

Dividends

received from

382918855.1249000000.00279062772.15

joint venture in

the year

(4) Financial summary for non-important Joint venture and associated enterprise

Unit: RMB/CNY

Ending balance/Current period Opening balance/Last Period

Joint venture:

Amount based on share-holding ratio

Associated enterprise:

Total book value of investment 205317329.30 204764926.80

Amount based on share-holding ratio

144无锡威孚高科技集团股份有限公司2022年半年度报告全文

--Net profit 639624.55 19892865.88

--Total comprehensive income 639624.55 19892865.88

(5) Major limitation on capital transfer ability to the Company from joint venture or associated enterprise

Nil

(6) Excess loss occurred in joint venture or associated enterprise

Nil

(7) Unconfirmed commitment with joint venture investment concerned

Nil

(8) Intangible liability with joint venture or associated enterprise investment concerned

Nil

4. Major conduct joint operation

Nil

5. Structured body excluding in consolidate financial statement

6. Other

Nil

X. Risk related with financial instrument

Main financial instrument of the Company including monetary funds structured deposits account receivable equity

instrument investment financial products loans and account payable etc. more details of the financial instrument

can be found in relevant items of Note VII. Risks concerned with the above-mentioned financial instrument and

the risk management policy takes for lower the risks are as follow:

Aims of engaging in the risk management is to achieve equilibrium between the risk and benefit lower the adverse

impact on performance of the Company to minimum standards and maximized the benefit for shareholders and

other investors. Base on the risk management targets the basic tactics of the risk management is to recognized and

analyzed the vary risks that the Company counted established an appropriate risk exposure baseline and caring risk

management supervise the vary risks timely and reliably in order to control the risk in a limited range.In business process the risks with financial instrument concerned happen in front of the Company mainly including

credit exposure market risk and liquidity risk. BOD of the Company takes full charge of the risk management target

and policy-making and takes ultimate responsibility for the target of risk management and policy. Compliance

department and financial control department manager and monitor those risk exposures to ensuring the risks are

control in a limited range.

1. Credit Risk

Credit risk refers to the risk that one party of a financial instrument fails to perform its obligations and resulting in

145无锡威孚高科技集团股份有限公司2022年半年度报告全文

the financial loss of other party. The company's credit risk mainly comes from monetary funds structured deposits

note receivable account receivable and other account receivables etc. 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.

2. Market risk

Market risk of the financial instrument refers to the fair value of financial instrument or future cash flow due to

fluctuations in the market price changes and produce mainly includes the IRR FX risk and other price risk.

(1) Interest rate risk (IRR)

IRR refers to the fluctuate risks on Company’s financial status and cash flow arising from rates changes in market.IRR of the Company mainly related with the bank loans. In order to lower the fluctuate of IRR the Company in

line with the anticipative change orientation choose floating rate or fixed rate that is the rate in future period will

goes up prospectively than choose fixed rate; if the rate in future period will decline prospectively than choose the

floating rate. In order to minor the bad impact from difference between the expectation and real condition loans for

liquid funds of the Company are choose the short-term period and agreed the terms of prepayment in particular.

(2) Foreign exchange (FX) risk

FX risks refer to the losses arising from exchange rate movement. The FX risk sustain by the Company mainly

related with the USD EUR CHF JPY HKD and DKK except for the USD EUR CHF JPY HKD and DKK

carried out for the machinery equipment purchasing of parent company and WFAM material purchasing of parent

company technical service and trademark usage costs of parent company the import and export of WFTR

operation of IRD and operation of Borit other main business of the Company are pricing and settle with RMB

(CNY). In consequence of the foreign financial assets and liabilities takes minor ratio in total assets the Company

has small FX risk of the financial instrument considered by management of the Company.As of June 30 2022 except for the follow assets or liabilities listed with foreign currency assets and liabilities of

146无锡威孚高科技集团股份有限公司2022年半年度报告全文

the Company are carried with CNY/RMB

* Foreign currency assets of the Company as of June 30 2022

Item Ending foreign currency Convert rate Ending CNY balance Share of assets(%)

balance converted

Monetary fund

Including: USD 6306874.16 6.7114 42327959.18 0.13

EUR 20343256.77 7.0084 142573634.99 0.45

HKD 16555587.57 0.8552 14158338.49 0.05

JPY 361309032.00 0.049136 17753280.60 0.06

DKK 5875093.79 0.9422 5535513.37 0.02

Account receivable

Including: USD 5703570.03 6.7114 38278939.90 0.12

EUR 1123220.09 7.0084 7871975.68 0.03

JPY 7091196.00 0.049136 348433.01 0.00

DKK 19264105.05 0.9422 18150639.78 0.06

Other account receivable

Including: DKK 3183888.87 0.9422 2999860.09 0.01

Total share of assets 0.93

* Foreign currency liability of the Company as of 30 June 2022:

Ending foreign currency Ending CNY balance

Item Convert rate Share of liabilities(%)

balance converted

Short-term loans

Including: USD 1106598.36 6.7114 7426824.23 0.06

EUR 27373707.15 7.0084 191845889.19 1.62

Account payable

Including: USD 770313.72 6.7114 5169883.50 0.04

EUR 2403640.58 7.0084 16845674.64 0.14

JPY 24899918.00 0.049136 1223482.37 0.01

CHF 209442.70 7.0299 1472361.24 0.01

DKK 12537073.02 0.9422 11812430.20 0.10

GBP 2450.00 8.1365 19934.43 0.00

Other account payable

Including: USD 1087.90 6.7114 7301.33 0.00

DKK 140969.52 0.9422 132821.48 0.00

Non-current liabilities due

within one year

Including: EUR 460417.53 7.0084 3226790.22 0.03

DKK 1114977.70 0.9422 1050531.99 0.01

Total ratio in liabilities 2.02

* Other pricing risk

The equity instrument investment held by the Company with classification as trading financial asset and other non-

current financial assets are measured on fair value of the balance sheet date. The fluctuation of expected price for

these investments will affect the gains/losses of fair value changes for the Company.Furthermore on the premise of deliberated and approved in 5th session of 9th BOD the Company exercise entrust

financing with the self-owned idle capital; therefore the Company has the risks of collecting no principal due toentrust financial products default. Aims at such risk the Company formulated a “Management Mechanism ofCapital Financing” and well-defined the authority approval investment decision-making calculation management

and risk controls for the entrust financing in order to guarantee a security funds and prevent investment risk

147无锡威孚高科技集团股份有限公司2022年半年度报告全文

efficiently. 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 3 years in principle; in variety of investment

the Company did not invest for the stocks derivative products security investment fund and the entrust financial

products aims at security investment as well as other investment with securities concerned.

3. Liquidity risk

Liquidity risk refers to the capital shortage risk occurred during the clearing obligation implemented by the

enterprise in way of cash paid or other financial assets. The Company aims at guarantee the Company has rich

capital to pay the due debts therefore a financial control department is established for collectively controlling such

risks. On the one hand the financial control department monitoring the cash balance the marketable securities

which can be converted into cash at any time and the rolling forecast on cash flow in future 12 months ensuring the

Company on condition of reasonable prediction owes rich capital to paid the debts; on the other hand building a

favorable relationship with the banks rationally design the line of credit credit products and credit terms guarantee

a sufficient limit for bank credits in order to satisfy vary short-term financing requirements.XI. Disclosure of fair value

1. Ending fair value of the assets and liabilities measured by fair value

Unit: RMB/CNY

Ending fair value

Item

First-order Second-order Third-order Total

I. Sustaining measured by fair value -- -- -- --

(i)Trading financial asset 200217862.91 22219323.17 3560861855.40 3783299041.48

1.Financial assets measured at fair value and whose

200217862.9122219323.173560861855.403783299041.48

changes are included in current profit or loss

(1) Investment in debt instruments 3560861855.40 3560861855.40

(2) Investment in equity instruments 200217862.91 200217862.91

(3)Forex contracts 22219323.17 22219323.17

(ii)Other equity instrument investment 677790690.00 677790690.00

(iii)Account receivable financing 875577584.80 875577584.80

(iv)Other non-current assets-equity instrument

198981411.00198981411.00

investment

(v)Other non-current assets-Other debt instrument

1605500000.001605500000.00

and equity instrument investment

Total assets sustaining measured by fair value 200217862.91 221200734.17 6719730130.20 7141148727.28

II. Non-persistent measure -- -- -- --

2. Recognized basis for the market price sustaining and non-persistent measured by fair value on first-order

On 30 June 2022 the trading financial asset-equity instrument investment held by the Company refers to the

SNAT (stock code: 600841) Miracle Automation (Stock code: 002009) Lifan Technology (Stock code: 601777)

and ST Zotye (Stock code: 000980) determining basis of the market price at period-end refers to the closing price

of 30 June 2022.

3. The qualitative and quantitative information for the valuation technique and critical parameter that

sustaining and non-persistent measured by fair value on second-order

On 30 June 2022 other non-current financial assets-equity instrument investment held by the Company refers to

the Guolian Securities (stock code: 601456) determining basis of the market price at period-end refers to the

148无锡威孚高科技集团股份有限公司2022年半年度报告全文

closing price and liquidity discounts of 30 June 2022.The trading financial assets that are continuously measured at the second level of fair value are swap contracts and

forward foreign exchange settlement and sale contracts. The fair value measurement is based on the fair value of

the swap contracts and forward foreign exchange settlement and sale contracts provided by the bank that signed the

contract.

4. The qualitative and quantitative information for the valuation technique and critical parameter that

sustaining and non-persistent measured by fair value on third-order

(1) Account receivable financing

For this part of financial assets the Company uses discounted cash flow valuation techniques to determine its fair

value. Among them important unobservable input values mainly include discount rate and contractual cash flow

maturity period. The cash flow with a contract expiration period of 12 months (inclusive) shall not be discounted

and the cost shall be regarded as its fair value.

(2) Fair value of other equity instrument investment-Changes in fair value included in other comprehensive income

Due to the lack of market liquidity for this part of financial assets the Company uses the replacement cost method

to determine its fair value. Among them the important unobservable input values mainly include the financial data

of the invested company etc.

(3) Fair value of other debt instrument and equity instrument investment

The fair value of wealth management products is determined by the Company using discounted cash flow valuation

techniques. Among them the important unobservable input values are mainly the expected annualized rate of return

and the risk factor of wealth management products.

5. Continuous third-level fair value measurement items adjustment information between the opening and

closing book value and sensitivity analysis of unobservable parameters

Nil

6. Continuous fair value measurement items if there is a conversion between various levels in the current

period the reasons for the conversion and the policy for determining the timing of the conversion

Nil

7. Changes in valuation technology during the current period and reasons for the changes

Nil

8. The fair value of financial assets and financial liabilities not measured by fair value

Nil

9. Other

Nil

XII. Related party and related party transactions

1. Parent company of the enterprise

Share-holding ratio Voting right

Registration

Parent company Business nature Registered capital on the enterprise for ratio on the

place

parent company enterprise

Operation of

Wuxi Industry Group Wuxi RMB 5289262000.00 20.23% 20.23%

state-owned assets

149无锡威孚高科技集团股份有限公司2022年半年度报告全文

Explanation on parent company of the enterprise

Wuxi Industry Group is an enterprise controlled by the State-owned Assets Management Committee of Wuxi Municipal People’s

Government. Its business scope includes foreign investment by using its own assets house leasing services self-operating and acting

as an agent for the import and export business of various commodities and technologies (Except for goods and technologies that are

restricted by the state or prohibited for import and export) domestic trade (excluding national restricted and prohibited items). (Projects

that are subject to approval in accordance with the law can be operated only after being approved by relevant departments).Ultimate controller of the Company is State-owned Assets Supervision & Administration Commission of Wuxi Municipality of Jiangsu

Province.Other explanation

Nil

2. Subsidiary of the enterpriseFound more in Note IX. 1.” Equity in subsidiary”

3. Joint venture and associated enterprise

Found more in Note IX.3. “Equity in joint venture and associated enterprise”

Other associated enterprise or joint ventures which has related transaction with the Company in the period or occurred previous: Nil

4. Other Related party

Other Related party Relationship with the Enterprise

Robert Bosch Company Second largest shareholder of the Company

Guokai Metal The enterprise controlled by parent company

Hebei Machinery The actual controller is the related natural person of the company

Key executive Director supervisor and senior executive of the Company

5. Related transaction

(1) Goods purchasing labor service providing and receiving

Goods purchasing/labor service receiving

Unit: RMB/CNY

Whether more than

Content of related Approved

Related party Current period the transaction limit Last Period

transaction transaction limit

(Y/N)

WFPM Goods and labor 16947881.11 40000000.00 N 18852456.91

RBCD Goods and labor 174508017.89 450000000.00 N 218444783.58

WFEC Goods 246646895.23 700000000.00 N 905770785.87

Robert Bosch

Goods and labor 93906096.78 300000000.00 N 115666003.14

Company

Changchun

Goods 342520.00 1500000.00 N

Xuyang

Goods sold/labor service providing

Unit: RMB/CNY

Related party Content of related transaction Current period Last Period

WFPM Goods and labor 522692.40 19742012.48

RBCD Goods and labor 1633269280.49 2250967590.73

WFEC Goods and labor 158613.70 3581524.21

Robert Bosch Company Goods and labor 724668201.55 649193996.57

150无锡威孚高科技集团股份有限公司2022年半年度报告全文

Changchun Xuyang Goods 181484.70

Hebei Machinery Goods 77607431.74

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

As a lessor for the Company:

Unit: RMB/CNY

Lessee Assets type Lease income recognized in the Period Lease income recognized at last Period

WFEC Workshop 1190379.04

As a lessee for the Company:nil

(4) Related guarantee

Nil

(5) Related party’s borrowed/lending funds

Unit: RMB/CNY

Related party Amount of loan Starting date Expiry date Note

Borrowing

Wuxi Industry Group 5470000.00 2021-07-29 2022-07-21

Lending

(6) Related party’s assets transfer and debt reorganization

Nil

(7) Remuneration of key manager

Unit: RMB/CNY

Item Current period Last Period

Remuneration of key manager 4400000.00 6230000.00

(8) Other related transactions

Unit: RMB/CNY

Related party Item Current period Last Period

RBCD Payment of technical commission fee etc. 312038.48 -

RBCD Purchasing fixed assets 1314941.34 528378.37

151无锡威孚高科技集团股份有限公司2022年半年度报告全文

Robert Bosch Company Payment of technical commission fee etc. 130459.36 4123940.70

Robert Bosch Company Sales of fix assets - 272339.98

Robert Bosch Company Purchasing fixed assets 54716.98 599549.16

WFEC Sales of fix assets - 414601.77

WFEC Energy payable- utilities 614493.68 -

6. Receivable/payable items of related parties

(1) Receivable item

Unit: RMB/CNY

Ending balance Opening balance

Item Related party

Book balance Bad debt provision Book balance Bad debt provision

Account receivable WFPM 4660960.64 10925.29 1233084.39

Account receivable RBCD 385798620.85 56890.49 48954455.60 56805.74

Robert Bosch

Account receivable 328749828.77 845939.26 236685486.17 426203.85

Company

Other account Robert Bosch

692995.30

receivable Company

Account paid in Robert Bosch

539263.12

advance Company

Other non-current Robert Bosch

37057941.009932547.00

assets Company

Account receivable WFEC 64400.00 6440.00 6212780.39

Account receivable Changchun Xuyang 227321.23 2224.35 995215.93

Account receivable Hebei Machinery 86362016.99

Account paid in

Guokai Metal 793600.00

advance

(2) Payable item

Unit: RMB/CNY

Item Related party Ending book balance Opening book balance

Account payable WFPM 9711292.58 11634159.55

Other account payable WFPM 29000.00 29000.00

Account payable WFEC 302317621.63 299939408.63

Account payable RBCD 25567164.72 33418536.50

Account payable Robert Bosch Company 3316768.42 16412385.58

Account payable Guokai Metal 2.86

Other current liabilities RBCD 0.05 120466375.78

Other current liabilities Robert Bosch Company 3170.62 39165.98

Other current liabilities WFEC 1415.05

Other account payable Wuxi Industry Group 5475621.94 5476184.14

Contractual liability RBCD 0.36 0.36

Contractual liability Robert Bosch Company 113046.28 796325.77

Contractual liability WFEC 10884.98

Other account payable Guokai Metal 2717849.00 2717849.00

152无锡威孚高科技集团股份有限公司2022年半年度报告全文

7. Undertakings of related party

Nil

8. Other

Nil

XIII. Share-based payment

1. Overall situation of share-based payment

□Applicable □Not applicable

Unit: RMB/CNY

Total amount of various equity instruments granted

0.00

by the company in the current period

Total amount of various equity instruments

0.00

exercised by the company in the current period

Total amount of various equity instruments

0.00

invalidated by the company in the current period

The grant price is 15.48 Yuan per share; the exercise time is from the first

trading day 24 months after the completion of the registration of the restricted

The scope of the exercise price of the stock options

stocks granted in the first tranche to the last trading day within 60 months

issued by the company at the end of the period and

from the date of completion of the registration of the restricted stock granted

the remaining period of the contract

in the first tranche so the remaining period of the contract is 3 years and 5

months.

2. Share-based payment settled by equity

□Applicable □Not applicable

Unit: RMB/CNY

Determine based on the closing price of the

Method for determining the fair value of equity instruments on the grant date

restricted stock on the grant date

Basis for determining the number of vesting equity instruments Unlocking conditions

Reasons for the significant difference between estimate in the current period and

N/A

estimate in the prior period

Cumulative amount of equity-settled share-based payments included in the

118866686.47

capital reserve

Total amount of expenses confirmed by equity-settled share-based payments in

35819280.93

the current period

Other explanation

This restricted stock incentive plan has been reviewed and approved by the company's second extraordinary general meeting of

shareholders in 2020. The overview of this restricted stock incentive plan is as follows:

(1) Stock source: the company's A-share common Share repurchased from the secondary market.

(2) Grant date: November 12 2020.

(3) Grant objects and number of grants: 19540000 restricted stocks were granted to 601 incentive objects of the company and its

subsidiaries.

(4) Grant price: 15.48 Yuan/share.

(5) Grant registration completion date: December 4 2020.

(6) Lifting the restrictions on sales:

153无锡威孚高科技集团股份有限公司2022年半年度报告全文

Ratio of unlocked

Unlock period Unlock time quantity to granted

quantity

Starting from the first trading day 24 months after the completion of the registration

Phase I unlocked 4/10

of the first grant and ending on the last trading day within 36 months

Starting from the first trading day 36 months after the completion of the registration

Phase II unlocked 3/10

of the first grant and ending on the last trading day within 48 months

Starting from the first trading day 48 months after the completion of the registration

Phase III unlocked 3/10

of the first grant and ending on the last trading day within 60 months

(7)Performance appraisal requirements at the company level:

Unlock conditions Performance appraisal requirements

1. the weighted average ROE for year of 2021 is not less than 10%;

2. the growth rate of self-operating profit in 2021 will not be less than 6% compared with the year of

The first batch of unlock

2019 the absolute amount will not be less than 845 million Yuan;

conditions

3. the cash dividends for year of 2021 shall be no less than 50% of the profit available for distribution of

the current year.

1. the weighted average ROE for year of 2022 is not less than 10%;

2. the growth rate of self-operating profit in 2022 will not be less than 12% compared with the year of

The second batch of

2019 the absolute amount will not be less than 892 million Yuan;

unlocking conditions

3. the cash dividends for year of 2022 shall be no less than 50% of the profit available for distribution of

the current year.

1. the weighted average ROE for year of 2023 is not less than 10%;

2. the growth rate of self-operating profit in 2023 will not be less than 20% compared with the year of

The third batch of unlocking

2019 the absolute amount will not be less than 958 million Yuan;

conditions

3. the cash dividends for year of 2023 shall be no less than 50% of the profit available for distribution of

the current year.Other explanation: self-operating profit refers to the net profit attributable to the owners of the parent company after deducting non-

recurring gains and losses and deducting the investment income from RBCD and Zhonglian Electronics.

3. Share-based payment settled by cash

□Applicable □Not applicable

4. Modification and termination of share-based payment

Nil

5. Other

Nil

XIV. Undertakings or contingency

1. Important undertakings

Important undertakings on balance sheet date : Nil

2. Contingency

(1) Contingency on balance sheet date

Nil

(2) For the important contingency not necessary to disclosed by the Company explained reasons

The Company has no important contingency that need to disclosed

3. Other

Nil

154无锡威孚高科技集团股份有限公司2022年半年度报告全文

XV. Events after balance sheet date

1. Important non adjustment matters

Nil

2. Profit distribution

Nil

3. Sales return

Nil

4. Other events after balance sheet dateOn February 7 2022 the Company held the 7th session of 10th BOD to deliberated and approved the “Proposal onEquity Acquisition and Related Transactions”. The Company intends to pay a cash with consideration of

approximately € 60 million to Robert Bosch S.p.A. Società Unipersonale for the 100% equity acquisition of

VHIT S.p.A. ocietàUnipersonale and its wholly-owned subsidiary VHIT Automotive Systems(Wuxi) Co. Ltd held

by Robert Bosch S.p.A. Società Unipersonale. After the transaction VHIT and VHCN will include in the scope of

consolidate statement.XVI. Other important events

1. Previous accounting errors collection

Nil

2. Debt restructuring

Nil

3. Assets replacement

Nil

4. Pension plan

The Enterprise Annuity Plan under the name of WFHT has deliberated and approved by 8th session of 7th 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 adjusted the economic benefits in due time in principle of

responding to the economic strength of the enterprise the amount paid by the enterprise at current period control in

the 8 percent of the total salary of last year the maximum annual allocation to employees shall not exceed five times

the average allocation to employees and the excess shall not be counted towards the allocation. The individual

155无锡威孚高科技集团股份有限公司2022年半年度报告全文

contribution is limited to 1% of one’s total salary for the previous year. Specific paying ratio later shall be adjusted

correspondingly in line with the operation condition of the Company.In December 2012 the Company received the Reply on annuity plans reporting under the name of WFHT from

labor security administration department later the Company entered into the Entrusted Management Contract of

the Annuity Plan of WFHT with PICC.

5. Termination of operation

Not applicable

6. Segment

(1) Recognition basis and accounting policy for reportable segment

Determine the operating segments in line with the internal organization structure management requirement and

internal reporting system. Operating segment of the Company refers to the followed components that have been

satisfied at the same time:

* The component is able to generate revenues and expenses in routine activities;

* Management of the Company is able to assess the operation results regularly and determine resources allocation

and performance evaluation for the component;

* Being analyzed financial status operation results and cash flow of the components are able to require by the

Company

The Company mainly engaged in the manufacture of fuel system of internal combustion engine and fuel cell

components products auto components muffler and purifier etc. based on the product segment the Company

determine 4 reporting segments as auto fuel injection system and fuel cell components air management system and

exhaust gas treatment system and platform trading business. Accounting policy for the 4 reporting segments are

shares the same policy state in Note V

Segment assets exclude trading financial asset other account receivables-dividend receivable other non-current

financial assets other equity instrument investment long term equity investment and other retained assets since

these assets are not related to products operation.

(2) Financial information for reportable segment

Unit: RMB/CNY

Add:

investment/inco

me measured by

Fuel injection equity debt

Exhaust Gas Auto air instrument &

system & Fuel

Treatment management Platform trading instrument Offset of

Item cell components Total

System products system products business investment or segment

products

division division retained assets

division and

income/losses

on holdings and

disposals etc.Operating 3624502718.3 3303183248.8 7321835360.9

revenue 264983477.58 184662503.01 55496586.76 3 2 8

Operating 2840070534.1 3007896515.6 6024571742.7

cost 205014212.18 28409519.28 7 4 1

156无锡威孚高科技集团股份有限公司2022年半年度报告全文

Total 1370978589.1

285746385.7064188537.725203744.82161466407.39854359415.83-14097.70

Profit 6

1270424801.9

Net profit 241136739.90 55819933.05 2147505.09 121099805.54 850210281.10 -10537.27

Total 9444092186.3 5284615141.2 4701883464.0 12388798458. 1318556132.8 31402279358.assets 901446241.17 5 5 0 11 3 05

Total 2940523194.0 3878743245.8 4580783658.4 11823176560.liabilities 452454237.45 -344716.26 28983058.99 3 1 6 50

(3) If the company has no reportable segments or is unable to disclose the total assets and liabilities of each

reportable segment it should state the reasons

Not applicable

(4) Other explanation

Nil

7. Major transaction and events makes influence on investor’s decision

Nil

8. Other

Nil

XVII. Principal notes of financial statements of parent company

1. Account receivable

(1) Classification of account receivable

Unit: RMB/CNY

Ending balance

Category Book balance Bad debt provision

Provision Book value

Amount Ratio Amount

ratio

Account receivable with bad debt

7705639.710.82%7705639.71100.00%

provision accrual on a single basis

Including:

Account receivable with bad debt

928422567.5599.18%3062064.170.33%925360503.38

provision accrual on portfolio

Including:

Receivables from clients 742137856.93 79.28% 3062064.17 0.41% 739075792.76

Receivables from internal related

186284710.6219.90%186284710.62

parties

Total 936128207.26 100.00% 10767703.88 1.15% 925360503.38

Unit: RMB/CNY

Opening balance

Category Book balance Bad debt provision

Provision Book value

Amount Ratio Amount

ratio

Account receivable with bad debt

7803945.241.42%7803945.24100.00%

provision accrual on a single basis

157无锡威孚高科技集团股份有限公司2022年半年度报告全文

Including:

Account receivable with bad debt

540453844.9798.58%3495954.750.65%536957890.22

provision accrual on portfolio

Including:

Receivables from clients 324001494.50 59.10% 3495954.75 1.08% 320505539.75

Receivables from internal related

216452350.4739.48%216452350.47

parties

Total 548257790.21 100.00% 11299899.99 2.06% 536957890.22

Bad debt provision accrual on single basis: 7705639.71 yuan

Unit: RMB/CNY

Ending balance

Name Bad debt

Book balance Provision ratio Accrual causes

provision

BD bills 7201691.00 7201691.00 100.00% Have difficulty in collection

Tianjin LOVOL Engines Co. Ltd. 503945.24 503945.24 100.00% Have difficulty in collection

Quanchai Engine Co. Ltd. 3.47 3.47 100.00% Have difficulty in collection

Total 7705639.71 7705639.71

Bad debt provision accrual on portfolio:3062064.17 yuan

Unit: RMB/CNY

Ending balance

Name

Book balance Bad debt provision Provision ratio

Within 6 months 729344451.43

6 months to 1 year 8379147.23 837914.72 10.00%

1-2 years 2039943.17 407988.63 20.00%

2-3 years 930257.13 372102.85 40.00%

Over 3 years 1444057.97 1444057.97 100.00%

Total 742137856.93 3062064.17

If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses please

refer to the disclosure of other receivables to disclose related information about bad-debt provisions:

□Applicable □Not applicable

By account age

Unit: RMB/CNY

Account age Ending balance

Within 1 year (including 1 year) 924008309.28

Including: Within 6 months 915629162.05

6 months to 1 year 8379147.23

1-2 years 2543888.41

2-3 years 930257.13

Over 3 years 8645752.44

3-4 years 8645752.44

Total 936128207.26

(2) Bad debt provision accrual collected or switch back

Bad debt provision accrual in the period:

Unit: RMB/CNY

158无锡威孚高科技集团股份有限公司2022年半年度报告全文

Amount changed in the period Ending balance

Category Opening balance Collected or

Accrual Charge off Other

reversal

Bad debt provision 11299899.99 532196.11 10767703.88

Total 11299899.99 532196.11 10767703.88

Important bad debt provision collected or switch back: nil

(3) Account receivable actual charge off in the Period

Nil

(4) Top 5 receivables at ending balance by arrears party

Unit: RMB/CNY

Ending balance of Ratio in total ending balance of Ending balance of bad debt

Name

account receivable account receivables reserve

RBCD 385781400.37 41.21% 56890.49

Custom 2 132064675.11 14.11% 331649.87

WFTR 80332439.40 8.58%

WFCA 63975039.80 6.83%

Robert Bosch Company 48039920.31 5.13% 2717.43

Total 710193474.99 75.86%

(5) Account receivable derecognition due to financial assets transfer

Nil

(6) Assets and liabilities resulted by account receivable transfer and continues involvement

Nil

2. Other account receivable

Unit: RMB/CNY

Item Ending balance Opening balance

Interest receivable 102777.78 113055.56

Dividend receivable 560425376.21 26718900.00

Other account receivable 3276834556.22 177293562.07

Total 3837362710.21 204125517.63

(1) Interest receivable

1) Category of interest receivable

Unit: RMB/CNY

Item Ending balance Opening balance

Interest receivable of unified-borrowing & unified-lending 102777.78 113055.56

Total 102777.78 113055.56

159无锡威孚高科技集团股份有限公司2022年半年度报告全文

2) Significant overdue interest

Nil

3) Accrual of bad debt provision

□Applicable □Not applicable

(2) Dividend receivable

1) Category of dividend receivable

Unit: RMB/CNY

Item (or invested enterprise) Ending balance Opening balance

Zhonglian Automobile Electronics Co. Ltd. 194400000.00

RBCD 366025376.21

WFAM 26718900.00

Total 560425376.21 26718900.00

2) Important dividend receivable with account age over one year

Nil

3) Accrual of bad debt provision

□Applicable □Not applicable

(3) Other account receivable

1) Other account receivables classification by nature

Unit: RMB/CNY

Nature Ending book balance Opening book balance

Staff loans and petty cash 1041780.00 400080.00

Balance of related party in the consolidate scope 3266686521.72 169746521.72

Security deposit 3259262.41 1518640.00

Withholding the social security provident funds 6202190.99 5926527.66

Other 7328.10 9364.69

Total 3277197083.22 177601134.07

2) Accrual of bad debt provision

Unit: RMB/CNY

Phase I Phase II Phase III

Expected Expected credit losses for Expected credit losses for

Bad debt provision credit losses the entire duration the entire duration (with Total

over next 12 (without credit credit impairment

months impairment occurred) occurred)

Balance on Jan. 1 2022 307572.00 307572.00

Balance of Jan. 1 2022 in the period

Current accrual 54955.00 54955.00

Balance on Jun. 30 2022 362527.00 362527.00

Change of book balance of loss provision with amount has major changes in the period

□Applicable □Not applicable

160无锡威孚高科技集团股份有限公司2022年半年度报告全文

By account age

Unit: RMB/CNY

Account age Ending balance

Within 1 year (including 1 year) 3240762941.50

Including: Within 6 months 3226513391.50

6 months to 1 year 14249550.00

1-2 years 21843906.00

2-3 years 14552695.72

Over 3 years 37540.00

3-4 years 37540.00

Total 3277197083.22

3) Bad debt provision accrual collected or switch back

Bad debt provision accrual in the period:

Unit: RMB/CNY

Amount changed in the period

Opening

行情