无锡威孚高科技集团股份有限公司2016年年度报告摘要 Stock Code: 000581, 200581 Public Notice No: 2017-007 Short Form of the Stock: Weifu High- Tech, Su Weifu-B
Weifu High-Technology Group Co., Ltd.
Summary of Annual Report 2016
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.
Statement
No directors, supervisors or senior management declare the authenticity, accuracy and integrity of the report cannot be guaranteed or there is objection.
Other directors attending the Meeting for annual report deliberation except for the followed
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|-|-|-|-|
|Name of director absent|Title for absent director|Reasons for absent|Attorney|
|Rudolf Maier|Director|On a business trip|Chen Xuejun|
|Chen Yudong|Director|On a business trip|Chen Xuejun|

Prompt of non-standard audit opinion
□ Applicable√ Not applicable
Profit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the Board in the reporting period
√Applicable□Not applicable
Whether has capitalizing of common reserves carried out
□Yes√ No
The profit distribution plan that deliberated and approved by the Board is: based on total stock issued 1,008,950,570 shares, distributed 6 Yuan (tax included) bonus in cash for every 10-share hold by all shareholders, 0 shares bonus issued (tax included) and no capitalizing of common reserves carried out.
Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period
□ Applicable√ Not applicable
II. Company profile
1. Company Profile
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|-|-|-|-|-|
|Short form of the stock|Weifu High- Tech, 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, New District, Wuxi City||No.5, Huashan Road, New District, Wuxi City||
|Fax.|0510-80505199||0510-80505199||
|Tel.|0510-80505999||0510-80505999||
|E-mail|wfjt@public1.wx.js.cn||wfjt@public1.wx.js.cn||

无锡威孚高科技集团股份有限公司2016年年度报告摘要 2. Main business or product introduction in the reporting period
(i) Main business of the company
1. The company belongs to auto parts industry, and its main business products include diesel fuel injection system products, exhaust after-treatment system products and air management system products.
2. Main uses of the company's products
(1) The diesel fuel injection 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. The products meet the needs of national emission standards.
(2) The exhaust after-treatment system products mainly support the major manufacturers of automobile, motorcycle and general machinery at home which meet the national emission standards.
(3) The wheel diameter range of air management system products (supercharger) covers 30mm to 125mm whole series which matches with most of the domestic small-bore diesel engine plants and some six-cylinder diesel engine manufacturers and meet the needs of the light and heavy commercial vehicles and some passenger cars. The company has the vacuum valve control that meets the emission standards of Euro IV& Euro V, the electronically controlled variable geometry turbochargers, the titanium-aluminum alloy superchargers, the electric superchargers, the ceramic ball bearing superchargers and some kinds of gasoline engine turbochargers.
3. Business model of the Company
The company follows the operating philosophy of making competitive products, creating famous brands, striving for first choices, and creating value for the users, implements the business model that parent company unifies the management and subsidiaries decentralize the production. Namely, the group 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 technology of the subsidiaries. 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 thecompany’s economic benefits.
During the reporting period, theCompany’s main business and business model have no significant changes. (II) Development stage and periodic characteristics of the industry the company involves and the company's industry position during the reporting period
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|The Company belongs to the industry of auto parts, which is closely related to macro-economic situations, auto|
|industry policies and market demands. The Company has grown into one of key domestic enterprises for|
|providing core auto (power engineering) parts after more than 60 years of development, and has formed a distinct|
|advantage within industry since it has always kept pace with the upgrading of national motor vehicle emission|
|standards, been busy with strategic disposition and enhanced its technical reserves these years. The Company|
|features a full line of diesel fuel injection systems as well as excellent exhaust gas after-treatment system|

无锡威孚高科技集团股份有限公司2016年年度报告摘要
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|technology. As a major provider for domestic self-owned motor after-treatment market, the Company takes a|
|leading position in domestic market in terms of technical level, market size and production capability with high|
|superiority in its integrated technology of catalyst and after-treatment system. The Company also has a full line of|
|air intake systems (supercharger) and its technical strength is a lead in domestic market with the production in line|
|with national emission standard. At present, the Company has finished the whole industry chain layout in terms of|
|air intake system, diesel fuel injection system and exhaust gas after-treatment system, which is able to provide|
|systematic integration solution for the customers, and it is also one of the companies which have the most|
|complete product reserves and can satisfy the national emission standard.|
|From the perspective of development history of Chinese auto market, it has stepped into a mature stage with|
|stable growth after rapid growth in past decades of years, and the sales growth will be slowing down every year in|
|future and the core technologies will be changing with each passing day. Nowadays, the problems regarding|
|pollution and haze have become serious social issues concerned by the public, therefore, the government shall|
|take a further step to strengthen the implement of emission regulation as well as the supervision and improvement|
|on motor vehicle exhaust emissions, meanwhile, the government shall be dedicated to promote the development|
|of new energy automobiles. In order to meet the upgrading requirements of emission regulation, the Company|
|shall be planning research and development direction for new technologies, actively promoting the adjustment of|
|product structures, accelerating to cultivate new growth point of sales, keeping enhancing competitive capacity,|
|and building a new development pattern.|

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 for accounting policy changed and accounting error correction or not
□Yes√ No
In RMB
||||||
|-|-|-|-|-|
||||Changes over||
||2016|2015||2014|
||||last year||
||6,422,700,399.27|5,741,643,746.42|||
|Operating income|||11.86%|6,354,480,020.38|
|Net profit attributable to shareholders of the listed|1,672,224,317.05|1,515,388,285.71|||
||||10.35%|1,539,439,686.81|
|company|||||
|Net profit attributable to shareholders of the listed|||||
|company after deducting non-recurring gains and|1,435,963,836.76|1,232,371,453.62|16.52%|1,404,877,811.26|
|losses|||||
|Net cash flow arising from operating activities|527,344,364.04|542,045,770.17|-2.71%|889,899,654.79|
|Basic earnings per share (RMB/Share)|1.66|1.49|11.41%|1.51|
|Diluted earnings per share (RMB/Share)|1.66|1.49|11.41%|1.51|
|Weighted average ROE|13.53%|13.32%|0.21%|15.05%|

无锡威孚高科技集团股份有限公司2016年年度报告摘要
||||||
|-|-|-|-|-|
||||Changes over||
||End of 2016|End of 2015||End of 2014|
||||end of last year||
||17,263,771,897.78|15,704,093,069.04|||
|Total assets|||9.93%|14,488,589,167.90|
|Net assets attributable to shareholder of listed|12,927,344,292.47|11,783,228,273.39|||
||||9.71%|10,859,034,688.96|
|company|||||

(2) Quarterly main financial index
In RMB
||||||
|-|-|-|-|-|
||1st Q|2nd Q|3rd Q|4th Q|
||1,533,288,775.97|1,833,187,676.52|1,522,896,852.89|1,533,327,093.89|
|Operating income|||||
|Net profit attributable to shareholders of the listed|405,471,329.51|538,097,206.21|366,126,109.76|362,529,671.57|
|company|||||
|Net profit attributable to shareholders of the listed|331,616,138.91|498,016,578.22|307,178,949.97|299,152,169.66|
|company after deducting non-recurring gains and|||||
|losses|||||
||42,831,760.61|150,709,254.34|55,521,302.20|278,282,046.89|
|Net cash flow arising from operating activities|||||

 Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial index disclosed in thecompany’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 preference||||
|||Total common|||Total preference|||||||
|Total common||||||||shareholders with||||
|||stock|||shareholders|||||||
|stock||||||||voting rights||||
|||shareholders at|||with voting|||||||
|shareholders in|44,781||44,711||||0|recovered at end of||0||
|||end of last month|||rights recovered|||||||
|reporting||||||||last month before||||
|||before annual|||at end of|||||||
|period-end||||||||annual report||||
|||report disclosed|||reporting period|||||||
|||||||||disclosed||||
|Top ten shareholders||||||||||||
||||||||||Number of shares|||
|||||||Proportion||Amount of|pledged/frozen|||
|||||Nature of|||Amount of|||||
|Full name of Shareholders||||||of shares||restricted shares|State of|||
|||||shareholder||held|shares held|held|||Amount|
||||||||||share|||
|Wuxi Industry Development Group Co., Ltd||||State-ownedcorporate||20.22%|204,059,398|||||
|ROBERT BOSCH GMBH||||Foreigncorporate||14.16%|142,841,400|||||
|China Securities Finance Corporation Limited||||State-ownedcorporate||2.63%|26,555,515|||||
|UBS AG||||Foreigncorporate||2.61%|26,373,988|||||

无锡威孚高科技集团股份有限公司2016年年度报告摘要
|||||
|-|-|-|-|
|Kangjian Assets Management Company –Client’sfund|Foreigncorporate|1.52%|15,339,892|
|Central Huijin Assets Management Co., Ltd.|State-ownedcorporate|1.27%|12,811,200|
|BBH BOS S/A FIDELITY FD - CHINA FOCUS FD|Foreigncorporate|1.23%|12,382,279|
|Puxin Investment Company- Client’s fund|Foreigncorporate|1.01%|10,225,177|
|RBC EMERGING MARKETS EQUITY FUND|Foreigncorporate|0.95%|9,626,264|
|MERRILL LYNCH INTERNATIONAL|Foreigncorporate|0.88%|8,915,000|
||Among the top ten shareholders, there has no associated relationship betweenWuxi Industry Development Croup Co., Ltd. and other shareholders, the firstlargest shareholder of the Company; and they do not belong to the consistentactionist regulated by the Management Measure of Information Disclosure onChange of Shareholding for Listed Company.|||
|Explanation on associated relationship among the||||
|aforesaid shareholders||||
|Explanation on shareholders involving margin|Not applicable|||
|business (if applicable)||||

(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:
State-owned Assets Supervision& Administration
Commission of Wuxi Municipality of Jiangsu Province
100%
Wuxi Industry Development Croup Co., Ltd.
20.22%
Weifu High-Technology Group Co., Ltd.
III. Discussion and analysis by the Management Team
1. Introduction of operation in the reporting period
(I) General introduction
Under the influence of the purchase tax reduced by50% in 2016, car market gets aormer greately with saels volume over the prediction at beginning of the Year. Production and sales of the vehicles in the whole year has a
growth trends of steady rise overall. According to the numbers from CAAM: in 2016, the whole national has a
production and sales of vehicle amounts of 28.12 million and 28.03 million repectively, a y-o-y growth14.46%
无锡威孚高科技集团股份有限公司2016年年度报告摘要 and13.65%, including 24.42 million and 24.38 million respectively for passenger cars, with a15.50% and14.93% growth on a y-o-y basis, passenger cars is still the main driving force for the development of automotive industry. The Country put more investment in key areas in the Year, and increased spending on efforts of governance overload, as the continuse growth in logistic industry, the commercial vehicle, medium and heavy commercial vehicle in particular has a strong recovery, the declining tendency for two consecutive years in negative growth is over.
Benefited from the stable growth of automobile market and the recovery of commercial vehicles, the Company has achieved a sound development in various businesses and all the economic indexes have exceeded the goals set at the beginning of the year.
Fuel injection systems have seized the opportunity of non-road T3 emission upgrading to accelerate the expansion of non-road market and captured the market quickly; automotive common-rail high-pressure pump products have taken the market opportunities and achieved stable growth of sales at month-on-month basis, completed the tasks delivered by the customers with quantity and quality guaranteed; after-treatment systems have maintained a sound momentum of sales growth benefited from the implementation of national purchase tax halve policy and the increase of market share of Chinese brand passenger vehicles; the business of air intake systems (superchargers) has a good development momentum; diesel superchargers have seized key customers and its market share maintains stable growth; gas superchargers have been ready for bulk supply after preliminary technical development and customer authentication and will become a new highlight for development of auto core parts. Regarding the parts manufacture business, the Company has drastically boosted its production capacity with nearly zero-defect quality guaranteed, able to meet the delivery requirement.
During the Period, the Company achieved operation revenue of 6423 million Yuan with a y-o-y growth of11.86%; total profit amounting to 1819 million Yuan, a9.32% growth on a y-o-y basis; total assets amounting to 17264 million Yuan, a9.93% up from a year earlier; and the equity attributable to owners of parent company amounting to 12927 million Yuan, a9.71% growth on a y-o-y basis.
(II) Works implemented
1. The Company has continued to promote the construction of management accounting, further strengthened budget control; the Company also completed the preparation for building a group foreign currency cash pool, made a plan for the business of purchasing and exchanging foreign currencies, reduced use cost of foreign currency and boosted capital efficiency. In 2016, the group has sound financial incomes by optimizing structure configuration of financial products.
2. The Company has carried out continuous improvement activities and in 2016, the employee participation rate has reached up to80%. In the face of drastic growth of market demands and the increasing of customer delivery requirements of this year, the Company has taken an active role in efforts to production and quality control, maintained a good operation of the Company. Various indexes have reached the predetermined targets in the year of 2016, and the customer satisfaction has been enhanced drastically. At the same time, the company has
无锡威孚高科技集团股份有限公司2016年年度报告摘要 introduced Q11 manufacturing principle in the group, also promoted to build one-in-one-out firewall for 22 core products, and strengthened employee training and internal mistake-proofing ability.
3. The Company has completed the online of second phase and the third phase of ERP project of the group, and the first phase of MES system has already been staged online for related business divisions. The first phase of SRM has been successfully online and the group supercomputing center has performed preliminary operation. 4. The Company has completed the reengineering audit for ERP-SAP flow for six modules of the related subsidiaries, which has lay a solid flow basis for the company blue print design; meanwhile, The Company has also followed up the operation of risk assets of various business divisions based on the actual, taken a further step to control risks.
5. The Company has continued to promote safety and environmental protection target-oriented responsibility system to build safety enterprise, introduced normalized management of ISO14001 environmental management system, completed the construction of safety production standardization system and safe environmental protection organization network, ensuring the effective operation and control of the whole system and providing guarantees for sustainable and stable operation and management.
6. The Company has further deepened talent development strategy and promoted medium and long term incentive mechanism. The Company has also strengthened the construction of human resources integration and internal recruitment deployment platform. The Company has focused on strategy development goal of the Company and optimized the structural adjustment of human resources, promoted potential talents cultivation mechanism and enhanced the promotion of core talents incentive and management mechanism, ensuring the Company will share the development result together with the employees and the employee income will be increased steadily.
2. Whether the main business had major change in the reporting period
□ Yes√ No
3. About the industries, products, or regions accounting for over10% of thecompany’s operating income or operating profit
√Applicable□Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Gross|Increase/decrease|Increase/decrease|Increase/decrease|
|Name|Operating revenue|Operating cost|profit|of operating|of operating cost|of gross profit|
||||ratio|revenue y-o-y|y-o-y|ratio y-o-y|
|Auto fuel injection|||||||
||3,614,457,127.38|1,046,476,848.28|28.95%|19.19%|21.51%|0.55%|
|system|||||||
|Intake system|256,544,008.85|59,433,595.62|23.17%|19.97%|13.37%|-1.35%|
|Exhaust after-treatment|||||||
||2,172,222,471.77|350,352,821.50|16.13%|-0.05%|-7.67%|-1.33%|
|system|||||||

4. Whether the characteristics of management seasonal or cyclical need special attention
□ Yes√ No
无锡威孚高科技集团股份有限公司2016年年度报告摘要 5. In the reporting period, note of major changes in operating income, operating cost, total net profit attributable to common stock shareholders of listed company or composing the previous reporting period□ Applicable√ Not applicable
6. Particular about suspended and 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
No particulars about the changes in aspect of accounting policy, estimates or calculation method in Period.
(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 lastyear’s financial report; explain changes in consolidationstatement’s scope
□Applicable√Not applicable
The consolidation range of the Company has no changes in the Period
Board of Directors of
Weifu High-Technology Group Co., Ltd.
18 April 2017