Stock Code: 000581 200581 Public Notice No: 2021-008

Short Form of the Stock: WFHT Su Weifu-B

Weifu High-Technology Group Co. Ltd.Summary of Annual Report 2020

I. Important Notice

The summary is abstract from full-text of annual report for more details of operating results financial condition and future

development plan of the Company investors should found in the full-text of annual report that published on media appointed by

CSRC.

The directors supervisors and senior officers declared that they guarantee the matters in the Report are truthful accurate and

completed without objection.

All directors are attend the Meeting of the Board for Report deliberation.

Prompt of non-standard audit opinion

□ Applicable √ Not applicable

Profit distribution plan of common stock or public reserve transfer into share capital deliberated by the Board in the reporting period

√Applicable □Not applicable

Transfer of public reserve into share capital

□Yes √No

The profit distribution plan that deliberated and approved by the Board is: based on total share capital of 1008894293 distributed

15 Yuan (tax included) bonus in cash for every 10-share hold by all shareholders 0 share bonus issued (tax included) and no public

reserve transfer into share capital either.Profit distribution plan of preferred stock deliberated and approved by the Board in the reporting period

□ Applicable √ Not applicable

II. Company information

1. Company Profile

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

Stock exchange for listing Shenzhen Stock Exchange

Person/Way to contact Secretary of the Board Rep. of security affairs

Name Zhou Weixing Yan Guohong

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

Fax. 0510-80505199 0510-80505199

Tel. 0510-80505999 0510-80505999

E-mail wfjt@public1.wx.js.cn wfjt@public1.wx.js.cn

2. Main business or products introduction in the reporting period

(i) Main business of the Company

According to the data released by China Association of Automobile Manufacturers: the production and sales

volume of automobiles for year of 2020 in the country amounted to 25.22 million and 25.31 million respectively

with 2% and 1.9% down from a year earlier respectively; of which the production and sales volume of passenger

vehicles were19.99 million and 20.18 million respectively with 6.5% and 6% declined over same period of last

year respectively. In 2020 driven by the elimination of National III vehicles the tightening of

overload/over-speed and infrastructure investment the annual production and sales of commercial vehicles

showed significant growth. The production and sales volume of commercial vehicles in 2020 were respectively

amounted as 5.23 million and 5.13 million exceeding 5 million for the first time and reaching a record high. The

production and sales of commercial vehicle increasing by 20.0% and 18.7% on a y-o-y basis respectively.

During the reporting period the company's main business was the production and sales of automobile components.

The main products included diesel fuel management system products after-treatment system products and air

management system products. Since the beginning of the year the company has actively seized market

opportunities seized key products and key customers and achieved a steady increase in market share. The

business of the three major systems has grown rapidly and achieved the company's goal of over tens of billions of

operating income.Main uses of the Company's products:

1. The fuel management system products are widely used in different power diesel engines supporting all types of

trucks passenger cars buses construction machinery marine and generator sets. The company not only makes

products matching with the main engines used at home but also exports some products to the Americas Southeast

Asia and the Middle East. Products can meet the national emission regulation standards.

2. After-treatment system products which mainly support the major manufacturers of automobile motorcycle and

general machinery at home and meet the national emission standards.

3. Air management system products (supercharger)matches with most of the domestic small-bore diesel engine

plants and some 6-cyl diesel engine manufacturers and meet the needs of the light and heavy commercial vehicles

some passenger cars and engineering machinery. Products can meet the national emission regulation standards.

4. Key parts of the fuel cell including membrane electrodes graphite bipolar plates metal bipolar plates and BOP

key components for domestic and foreign fuel cell reactor and system manufacturers.(ii) During the reporting period development stage and periodical characteristics of the industry to which the

company belongs as well as the company’s position in the industry

2021 is the first year for the development of the "14th Five-Year Plan" and is also the year to embark on a new

journey of building a socialist modern country in an all-round way and march towards the second centenary goal.It is a milestone in our country's development process. As the epidemic prevention and control becomes normal

the economy as a whole will maintain growth under the influence of a low base and recovery resonance. Standing

at the historical intersection of the "two centenary" goals the auto industry will fully enter a new stage of

transformation and upgrading with high-quality development. The new development pattern which is dominated

by the domestic large-scale cycle and the mutual promotion of the international and domestic double cycles has

given China's auto industry more significant responsibilities. During the "14th Five-Year Plan" period our

country's auto industry will maintain a steady development trend. From the perspective of the development

situation promoting automobile consumption is the main task of stabilizing growth and expanding domestic

demand; enhancing the independent controllability of the supply chain of the industrial chain is the main means to

achieve high-quality industrial development; the upgrading of emission regulations and the new dual-slope policy

are compelling companies to carry out more stringent reforms to reduce consumption and emissions; carbon

peaking and carbon neutrality promote the further development of new energy vehicles; intelligent networking

rapid penetration of ADAS and smart cockpits and 5G promote the development of the Internet of Vehicles. In the

new round of technological revolution and industrial transformation the company will respond to industry

challenges with a positive attitude seize industry development opportunities and strive to jointly create a better

tomorrow for the auto industry.

After more than 60 years of hard work the company has become a backbone enterprise of key parts of domestic

auto 80% products of the existing Automobile components core business are matched with the electronic control

systems and electronically controlled. The company will actively respond to the national new energy and

intelligent network strategy take the Automobile components industry chain as the core and other related fields as

supplements lay out new energy auto drive technology and promote the hydrogen fuel cell technology and

intelligent network technology research and development capacity building. Market objectives: consolidate the

existing business market position and take a position in the new business potential market. Technical objectives:

strengthen the technical strength of the pillar business lay out the new business frontier technology and actively

expand new areas based on the existing business. Strive to achieve the goal of becoming a leader in the auto core

parts enterprises.

3. Main accounting data and financial indexes

(1) Main accounting data and financial indexes for recently three years

Whether it has retroactive adjustment or re-statement on previous accounting data or not

□Yes √ No

In RMB

2020 2019 Changes over last year 2018

Operating revenue 12883826306.60 8784356960.30 46.67% 8721674671.18

Net profit attributable to shareholders of the

listed company

2772769377.96 2268026432.78 22.25% 2396077415.21

Net profit attributable to shareholders of the

listed company after deducting

non-recurring gains and losses

2089986086.10 1947408959.68 7.32% 2014800714.20

Net cash flows arising from operating

activities

781811234.01 1048670053.23 -25.45% 874381526.63

Basic earnings per share (RMB/Share) 2.79 2.25 24.00% 2.37

Diluted earnings per share (RMB/Share) 2.79 2.25 24.00% 2.37

Weighted average ROE 15.78% 13.77% 2.01% 15.48%

Year-end of 2020 Year-end of 2019

Changes over end of last

year

Year-end of 2018

Total assets 27350695388.21 23958348185.78 14.16% 20892041460.30

Net assets attributable to shareholder of

listed company

18282017990.66 16990405136.62 7.60% 15913828778.82

(2) Quarterly main financial index

In RMB

Q 1 Q 2 Q 3 Q 4

Operating revenue 2772108717.43 3822294907.13 3324132346.07 2965290335.97

Net profit attributable to shareholders of the

listed company

549996717.72 776347707.26 903901365.25 542523587.73

Net profit attributable to shareholders of the

listed company after deducting

non-recurring gains and losses

495225376.36 680349352.50 572795992.17 341615365.07

Net cash flows arising from operating

activities

319204809.86 118452262.55 624717046.92 -280562885.32

Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial

index disclosed in the company’s quarterly report and semi-annual report

□Yes √ No

4. Shares and shareholders

(1) Particulars about common stock shareholders preference shareholders with voting rights recovered and

top ten shareholders

In Share

Total common

stock

shareholders in

reporting

period-end

58092

Total common stock

shareholders at end of

last month before annual

report disclosed

63444

Total preference

shareholders with

voting rights

recovered at end of

reporting period

0

Total preference shareholders

with voting rights recovered at

end of last month before

annual report disclosed

0

Top ten shareholders

Name of Shareholders

Nature of

shareholder

Proportion

of shares

held

Amount of

shares held

Number of

lock-up

stocks held

Number of shares

pledged/frozen

State of

share

Amoun

t

Wuxi Industry Development Group Co. Ltd.State-owned

corporate

20.22% 204059398

ROBERT BOSCH GMBH

Foreign

corporate

14.16% 142841400

Hong Kong Securities Clearing Company

Foreign

corporate

6.44% 65003072

BBH BOS S/A FIDELITY FD - CHINA FOCUS

FD

Foreign

corporate

1.60% 16093515

Central Huijin Assets Management Co. Ltd.

State-owned

corporate

1.27% 12811200

Basic Pension Insurance Fund- 1003 Other 1.11% 11163306

Monetary Authority of Macao - own fund

Foreign

corporate

0.78% 7824148

FIDELITY INVMT TRT FIDELITY INTL SMALL

CAP FUND

Foreign

corporate

0.73% 7339586

NSSF - 412 Other 0.63% 6376708

NSSF - 413 Other 0.58% 5850000

Explanation on associated relationship among the aforesaid

shareholders

Among the aforesaid shareholders there has no associated

relationship between Wuxi Industry Development Croup Co.Ltd. and other shareholders the first largest shareholder of the

Company; and they do not belong to the persons acting in

concert regulated by the Management Measure of Information

Disclosure on Change of Shareholding for Listed Company.

Explanation on shareholders involving margin business (if

applicable)

N/A

(2) Total preferred stock shareholders of the Company and shares held by top ten shareholders with

preferred stock held

□ Applicable √ Not applicable

The Company had no shareholders with preferred stock held in the reporting.

(3) Property right and controlling relationships between the actual controllers of the Company and the

Company is as follows:

5. Corporate bonds

Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when

annual report approved for released or fail to cash in full on due

No

III. Discussion and Analysis of the Operation

1. Brief introduction of operation in the reporting period

(i) Overall situation

Since the beginning of the year the market environment has been complex and changeable. In the face of the

severe challenges brought by the epidemic the government quickly introduced a series of policy measures to deal

with the epidemic and promote the resumption of work and production so that the macro economy has shown a

rapid recovery after the COVID-19 epidemic was effectively controlled realizing the economy from falling to

rising maintaining the overall economic and social stability. The performance of the automobile industry was

much better than expected. Although the production and sales of the whole year were stable and slightly decreased

the overall performance presented strong development resilience and driving force. According to the data released

by China Association of Automobile Manufacturers: the production and sales volume of automobiles for the

whole year amounted to 25.22 million and 25.31 million respectively with 2% and 1.9% down from a year earlier

respectively; of which the production and sales volume of passenger vehicles were 19.99 million and 20.18

million respectively with 6.5% and 6% declined over same period of last year respectively the production and

sales volume of commercial vehicles were respectively amounted as 5.23 million and 5.13 million a y-o-y growth

of 20.0% and 18.7% respectively.

Facing the complex and changeable external environment the company’s board of directors actively responded to

the national epidemic prevention requirements actively did a good job in the epidemic prevention and control and

the resumption of work and production had the courage to fulfill social responsibilities seized the policy

opportunities of national economic recovery and concentrated on forging ahead in concert the company

outperformed the annual various operating performance indicators established at the beginning of the year. During

the reporting period operating revenue achieved 12.884 billion yuan with 46.67% up on a y-o-y basis; total profit

amounted to 3.003 billion yuan with 22.54% increase on a y-o-y basis; total assets of the Company was 27.351

billion yuan with 14.16% up from a year earlier; and the owners interest attributable to parent company was

18.282 billion yuan a y-o-y growth of 7.60% achieved.

(ii) Main work carried out

1. Seize market opportunities and achieve a new breakthrough in operating income of tens of billion yuan.

Since the beginning of the year the company actively responds to the complex market environment seized

opportunities seized key products and key customers and achieved a steady increase in market share. The three

major system businesses grew rapidly achieving the company's goal of over tens of billion yuan in revenue from

its main business. Fuel management system business achieved annual sales of 2.1 million sets of common rail

pumps hitting a record high; VE distribution pumps increased their share in the off-road market with sales

exceeding 350000 sets an increase of nearly 20% on a year-on-year basis; in terms of after-treatment system

business gasoline purifiers achieved annual sales volume exceeding 2 million sets diesel purifiers achieved

annual sales volume exceeding 500000 sets both year-on-year increase of over 50%. The overall market share of

passenger vehicles continued to rise. The commercial vehicle market was actively expanding its core customers'

National VI projects. In the off-road market a customer base for key projects has been established. In terms of air

management system business the four-cylinder turbocharger has been deployed in the gasoline engine market to

acquire key project customer groups. The company has maintained a leading position in the diesel engine market

share. Sales volume of six-cylinder turbochargers increase of over 50%，and it successfully acquired importantcustomers in the National-VI projects. Meanwhile，the company's manufacturing capabilities for precisionmanufacturing and parts processing have been rapidly improved.

2. Intensify technological research and development and promote the development of new products.

Continued to tap the technical potential of fuel injection system products and expand key customer project

products. The company has gradually achieved mass production in major customer projects for gasoline

turbocharger products six-cylinder turbochargers have won a full range of natural gas projects from important

customers four-cylinder gasoline turbocharger passenger car projects have successively obtained new

National-VI B projects and four-cylinder diesel turbocharger successfully obtained National-VI projects in key

markets. The company has completed the packaging development of the National-VI GPF catalyst products of

core customers on passenger vehicles for exhaust after-treatment system products and realized mass supply. The

WSP2.0 packaging platform is being developed on commercial vehicles and each stage of the test has been

completed on schedule; completed the design trial production and testing of functional samples of core

components for new energy products and mastered the basic research and development capabilities. In terms of

hydrogen fuel cell products the company has completed the fully independent development of core materials for

the fuel cell core materials from catalyst gas diffusion layer (GDL) to membrane electrode (MEA); completed the

full water-based ink formulation optimization and catalyst layer leveling optimization of catalyst coating

membrane (CCM) and the performance is greatly improved. For extended field products the first smart seat has

left the production line and commercial vehicle seats have officially started mass production.

3. Layout new business in an orderly manner. Continued to promote the strategic planning of fuel cells and

core components of the intelligent network newly increased and defined planning for key strategic products such

as metal bipolar plates auxiliary components (BOP) situational awareness systems automotive smart seats.

Focused on the two major fields of hydrogen fuel cell and intelligent network connection for new business layout.

The company has continued to increase the layout and investment of hydrogen fuel cells acquired 100% equity of

Belgian Borit Company and focused on developing IRD's business in the Chinese market and accelerated the

construction of the core competitiveness of bipolar plates with dual technology routes (metal graphite). In the

field of intelligent network connection the environmental situation awareness system has won a number of

customer projects and the current focus is on intelligent security and industrial intelligent manufacturing to

actively carry out product development manufacturing and market capacity building. The company has

completed the establishment of a joint venture of Weifu Autosmart Seating System Co. Ltd. (WFAS) and started

operations.

4. Continuously improve operation and management capabilities. Information construction: the company

continued to promote projects such as intelligent manufacturing supply chain collaboration and process

management through information technology’s strong supports to the optimization and upgrading of the

company's management level. Completed the high-level planning and design of the supply chain data collection

and preliminary analysis; completed the construction of the Aris process management platform and the unified

process management portal which provided a guarantee for the efficient operation of the long-term mechanism of

the process management system. Steadily advanced the company's information security work. Compliance

management: the company made plans for the overall construction of the company's risk management system so

as to create three lines of defense for risk control with the goal of "essential compliance". Built a risk database for

the company’s people finance property and engineering pilot domains and integrated risk management and

internal control elements into the business process design. Controlled the legal compliance risks in the company's

various investments and other major projects. Manufacturing quality: continuously improved the company's

quality system management platform including special process audits cross-divisional cross-quantitative audits

professional auditor echelon construction and quality system group certification etc. continued to improve

product projects promoted intelligent manufacturing projects and realized equipment information management;

Comprehensively promoted the manufacturing informatization and completed the on-line of multiple functional

modules; realized the comprehensive informatization management of the production process. Financial

management: strengthened internal business collaboration and optimized related transaction business processes.Strictly controlled slow-moving inventory and accounts receivable beyond credit period. Purchasing and logistics:

completed the second phase construction of the company's procurement sharing system established and

implemented the indirect material category management processes to achieve cost control goals; completed the

planning and promotion plan of the organizational structure based on "category management" and immediately

started organizational optimization work. Carried out the logistics informatization and automation pilot work

started the overall planning project of the supply chain completed the status survey and high-level design work.Human resources: continued to promote the strategic planning of human resources and comprehensively analyzed

the future development direction of the management mechanism and the talent team. Starting from the

competency model and actual business needs strengthened team building planned and carried out special training

and improved work efficiency; in order to fully mobilize the enthusiasm sense of responsibility and mission of

the company’s senior management and core personnel paid attention to the interests of all shareholders and the

company’s long-term development and the preservation and appreciation of state-owned assets launched the

company's 2020 restricted stock incentive plan and the first grant was completed at the end of the year.

2. Whether the main business had major change in the reporting period

□Yes √No

3. The industries products or regions accounting for over 10% of the company’s operating income or

operating profit

√Applicable □Not applicable

In RMB

Products Operating revenue Operating profit

Gross

profit

ratio

Increase/decrease

of operating

revenue y-o-y

Increase/decrease

of operating

profit y-o-y

Increase/decrease

of gross profit

ratio y-o-y

Automobile fuel

injection system

5365576457.96 1402884591.93 26.15% 10.11% -4.92% -4.13%

Automobile exhaust

after-treatment system

6408508512.76 659958345.55 10.30% 111.08% 51.83% -4.02%

Air management

system

656346519.18 243014071.47 37.03% 47.20% 99.62% 9.73%

4. Whether the characteristics of management seasonal or cyclical need special attention

□ Yes √ No

5. In the reporting period note of major changes in operating revenue operating cost total net profit

attributable to common stock shareholders of listed company or composing the previous reporting period

□ Applicable √ Not applicable

6. Facing delisting

□Applicable √Not applicable

7. Relevant items involving financial report

(1) Particulars about the changes in aspect of accounting policy estimates and calculation method

compared with the financial report of last year

√ Applicable □Not applicable

Implementation of new revenue standards: the Ministry of Finance revised the Accounting Standards for Business

Enterprise No.14- Revenue in 2017 which go into effect on 1 January 2020. The revised standard requires that the

cumulative impact of the first implementation of the standard be adjusted by the amount of opening retained

earnings and other related items in the financial statement for the period of first-time implementation for

comparable periods. Found more in the “V.-35 Change of important accounting policy and estimation” carried in

Section XII. Financial Report

(2) Major accounting errors within reporting period that needs retrospective restatement

□ Applicable √ Not applicable

No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.

(3) Compare with last year’s financial report; explain changes in consolidation statement’s scope

√Applicable □Not applicable

Changes of

consolidate

scope

Enterprise Equity obtained method

Contribution

ratio

Consolidate

scope increased

Borit NV A wholly-owned subsidiary purchased in cash during the period through SPV 100.00%

Consolidate

scope increased

Autosmart Seating

The enterprise jointly invested by controlling subsidiary of the Company -

Weifu Leader and Qiqiong Automobile Technology (Shanghai) Co. Ltd.

66%

Board of Directors of

Weifu High-Technology Group Co. Ltd.

20 April 2021