无锡威孚高科技集团股份有限公司2018年第三季度报告正文 Stock Code: 000581, 200581 Notice No.: 2018-026 Short Form of the Stock: Weifu High-Tech, Su Weifu-B
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD.
TEXT of 3Q REPORT 2018
Section I. Important Notes
Board of Directors and the Supervisory Committee of Weifu High-Technology Group Co., Ltd. (hereinafter referred to as the Company) and its directors, supervisors and senior executives 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.
All directors of the Company are attended the Meeting for quarterly report deliberation.
Chen Xuejun, Principal of the Company; Ou Jianbin, Person in Charge of Accounting Work; Ou Jianbin, Person in Charge of Accounting Organization (Accounting Officer) hereby confirm that the Financial Report of the Third Quarterly Report is authentic, accurate and complete.
无锡威孚高科技集团股份有限公司2018年第三季度报告正文 Section II. Basic information of Company
I. Main accounting data and index
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes√No
||||||||
|-|-|-|-|-|-|-|
||Current period-end||Period-end of last year||Increase/decrease||
|Total assets(RMB)|20,773,232,822.40||20,231,006,224.36||2.68%||
|Net assets attributable to shareholders|15,595,739,954.18||14,835,673,669.75||||
||||||5.12%||
|of listed company (RMB)|||||||
|||||||Increase/decrease in|
|||Increase/decrease in|||||
|||||Year-begin to end of||comparison with|
||Current period|comparison with same|||||
|||||the Period||year-begin to|
|||period of last year|||||
|||||||Period-end of last year|
|Operating revenue (RMB)|1,898,914,219.62|3.60%||6,859,716,110.61||4.55%|
|Net profit attributable to shareholders|510,387,493.91|||2,055,630,198.83|||
|||-3.29%||||10.89%|
|of the listed company (RMB)|||||||
|Net profit attributable to shareholders|||||||
|of the listed company after deducting|452,953,425.86|-5.90%||1,831,818,927.43||8.42%|
|non-recurring gains and losses(RMB)|||||||
|Net cash flow arising from operating||||506,069,810.46|||
||--|--||||11.06%|
|activities(RMB)|||||||
|Basic earnings per share|0.51|||2.04|||
|||-3.77%||||10.87%|
|(RMB/Share)|||||||
|Diluted earnings per share|0.51|||2.04|||
|||-3.77%||||10.87%|
|(RMB/Share)|||||||
|Weighted average ROE|3.41%|-0.40%||13.33%||-0.34%|

 Items and amount of extraordinary profit (gains)/losses
√Applicable □Not applicable
In RMB
||||
|-|-|-|
||Amount from year-begin||
|Item||Note|
||to end of the Period||
|Gains/losses from the disposal of non-current asset (including the write-off that accrued for|||
||-5,470,321.32||
|impairment of assets)|||
|Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed|||
||30,811,684.32||
|in quota or ration according to national standards, which are closely relevant to enterprise’s|||

无锡威孚高科技集团股份有限公司2018年第三季度报告正文
||||
|-|-|-|
|business)|||
|Gains/losses from entrusted investment or assets management|239,529,818.37||
|Restoring of receivable impairment provision that tested individually|512,580.00||
|Other non-operating income and expenditure except for the aforementioned items|357,642.14||
|Less: impact on income tax|40,267,115.83||
|Impact on minority shareholders’ equity (post-tax)|1,663,016.28||
|Total|223,811,271.40|--|

 Concerning the extraordinary profit (gain)/loss defined byQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable√ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss.
II. Statement of the total shareholders and shares-held of top ten shareholders at end of the Period
1. Common and preferred stockholders with voting rights recover and the top ten share-holding
In Share
|||||||||
|-|-|-|-|-|-|-|-|
|Total common shareholders at the||Total preferred stockholders with voting rights recover at the end of||||||
||63,367||||||0|
|end of report period||report period (if applicable)||||||
|Top ten shareholders||||||||
|||||||Number of share||
||||Proportion||Amount of|||
|||Nature of||Amount of||pledged/frozen||
|Shareholders|||of shares||restricted|||
|||shareholder||shares held||State of||
||||held||shares held||Amount|
|||||||share||
|WUXI INDUSTRY DEVELOPMENT GROUPCO., LTD.||State-ownedcorporate|20.22%|204,059,398||||
|ROBERT BOSCH GMBH||Foreign corporate|14.16%|142,841,400||||
|Hong Kong Securities Clearing Company Ltd.(HKSCC)||Foreign corporate|2.68%|27,062,534||||
|Bank of Communication – HSBC Jixin DoubleCore Strategy Mixed Securities Investment Fund||Other|2.45%|24,749,432||||
|BBH BOS S/A FIDELITY FD - CHINA FOCUSFD||Foreign corporate|1.75%|17,705,754||||
|Central Huijin Investment Ltd.||State-owned|1.27%|12,811,200||||

无锡威孚高科技集团股份有限公司2018年第三季度报告正文
|||||||
|-|-|-|-|-|-|
||corporate|||||
|FIDELITY INVMT TRT FIDELITY INTLSMALL CAP FUND|Foreign corporate||0.55%|5,568,804||
|Huatai Securities Co., Ltd.|State-ownedcorporate||0.54%|5,481,598||
|Agricultural Bank of China – CIC 500 ETF|Other||0.52%|5,294,649||
|RBC EMERGING MARKETS EQUITY FUND|Foreign corporate||0.47%|4,760,065||
|Particular about top ten shareholders with un-restrict shares held||||||
|||Amount of un-restrict||Type of shares||
|Shareholders||||||
|||common shares held||Type|Amount|
|WUXI INDUSTRY DEVELOPMENT GROUP CO.,LTD.||204,059,398||||
|||||RMB common shares|204,059,398|
|ROBERT BOSCH GMBH||142,841,400||RMB common shares|115,260,600|
|||||Domestically listed foreign shares|27,580,800|
|Hong Kong Securities Clearing Company Ltd.(HKSCC)||27,062,534||||
|||||RMB common shares|27,062,534|
|Bank of Communication – HSBC Jixin Double CoreStrategy Mixed Securities Investment Fund||24,749,432||||
|||||RMB common shares|24,749,432|
|BBH BOS S/A FIDELITY FD - CHINA FOCUS FD||17,705,754||Domestically listed foreign shares|17,705,754|
|Central Huijin Investment Ltd.||12,811,200||RMB common shares|12,811,200|
|FIDELITY INVMT TRT FIDELITY INTL SMALLCAP FUND||5,568,804||||
|||||Domestically listed foreign shares|5,568,804|
|Huatai Securities Co., Ltd.||5,481,598||RMB common shares|5,481,598|
|Agricultural Bank of China – CIC 500 ETF||5,294,649||RMB common shares|5,294,649|
|RBC EMERGING MARKETS EQUITY FUND||4,760,065||Domestically listed foreign shares|4,760,065|
|||Among the top ten shareholders, there has no associated relationship||||
|Explanation on related relationship or concerted||between Wuxi Industry Development Group Co., Ltd. and other||||
|||shareholders, the first largest shareholder of the Company; and they do not||||
|action among the abovementioned shareholders||||||
|||belong to the consistent actionist regulated by the Management Measure of||||
|||Information Disclosure on Change of Shareholding for Listed Company.||||
|Explanation on top 10 shareholders involving margin||||||
|||Not applicable||||
|business (if applicable) (see note 4)||||||

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period
□ Yes√ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back agreement dealing in reporting period.
2. Total of shareholders with preferred stock held and the top ten shareholdings
□Applicable √Not applicable
无锡威孚高科技集团股份有限公司2018年第三季度报告正文 Section III. Important events
I. Particular about major changes from items of main accounting statements and financial indexes as well as reasons
√ Applicable□Not applicable
(I) Changes of items of balance sheet and cause analysis:
1. Other account receivable: increased 13.9407 million Yuan over that of beginning of the year with185.96% up, mainly due to the increase of intercourse funds between units;
2. Construction in progress: increased 81.4001 million Yuan over that of beginning of the year with81.12% up, mainly because equipment for technical improvement increased;
3. Short-term loans: increased 104.7551 million Yuan over that of beginning of the year with43.11% up, mainly because loans from subsidiary increased;
4. Taxes payable: decreased 36.9732 million Yuan over that of beginning of the year with39.39% down, mainly because income tax payables declined;
5. Deferred income tax liability: decreased 14.9778 million Yuan over that of beginning of the year with86.05% down, mainly due to the sales of financial assets available for sale and decline of fair value;
6. Other comprehensive income: decreased 84.4024 million Yuan over that of beginning of the year with96.83% down, mainly because the fair value of financial assets available for sale declined
(II) Changes of items of income statement and cause analysis:
1. Sales expenses: increased 39.08 million Yuan from last period, mainly because guarantee fee and salary for sales increased on a y-o-y basis;
2. Financial expenses: decreased 16.03 million Yuan from last period, mainly because exchange earnings and interest income increased on a y-o-y basis
(III) Changes of items of cash flow statement and cause analysis:
1. Net cash flow arising from investment activity: 2400.72 million Yuan declined as out-flow compared with same period of last year, mainly because recovery of financial products due increased on a y-o-y basis;
2. Net cash flow arising from financing activity: 556.93 million Yuan increased as out-flow compared with same period of last year, mainly because dividend distribution increased on a y-o-y basis.
II. Progress of significant events, their influences, and analysis and explanation of their solutions
√ Applicable□Not applicable
(I) Proposed application for listing in the national middle and small enterprises stock transfer system by the controlling subsidiary Weifu Tianli
On 25 October 2016, the
8th
board of directors of the Company held the
9th
meeting to consider and approve the
无锡威孚高科技集团股份有限公司2018年第三季度报告正文 proposal relating to proposed application for listing in the national middle and small enterprises stock transfer system by the controlling subsidiary Ningbo Weifu Tianli Supercharging Technique Co., Ltd. on 30 December 2016, Weifu Tianli was served with the notice of acceptance from the National Middle and Small Enterprise Stock Transfer System Company Limited (GP2016120120). The relevant announcements (No.: 2016-020, No.: 2016-023 and 2017-001) were published on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Information Website (http://www.cninfo.com.cn). At the current stage, this matter is in the progress of consideration and approval.
(II) Parts of the joint-stockenterprise’s equity held by the Company freeze
1. On 6 March 2017, the Company received litigation documents mailed by Shenzhen IntermediatePeople’s Court of Guangdong Province (hereinafter referred to as Shenzhen IntermediatePeople’s Court). The documents were concerning about the dispute case that the plaintiff applicant China Cinda Asset Management Co., Ltd. Shenzhen Branch appealed the respondent Weifu High Technology and other seven respondents and the third party Shenzhen Hejun Venture Holding Co., Ltd. (hereinafter referred to as Hejun Company) damaged the interests of corporate creditors, two cases are included in total. After civil ruling as No.(2016)Y03MC2490 and No.(2016) Y03MC2492 from Shenzhen Intermediate People's Court, the assets under the name of above said eight defendants 217 million Yuan in total are being seal up, seized or freeze. Ended as the reporting period, the 4.71 million shares of Miracle Logistics and 11,739,102 shares of SDEC Stock held by the Company has been freeze. The first trial open dated 24 September 2017, and further courts will give until further notice.
2. The Company has applied to the Futian Court for compulsory liquidation of Hejun Company. Futian Court has made a civil ruling ((2017) Yue 0304 QS No. 5) which ruled to execute compulsory liquidation to Hejun Company. The Company will actively cooperate with the court to do the relevant liquidation work and safeguard the legitimate rights and interests of the Company.
(III) In accordance with the
15th
session of
8th
BOD held on 26 March 2018, the Company plans to invest on the E-round preferred stock issued by Protean Holdings Corp. and a Sino-foreign joint venture will establishes by the two parties in China. According to the investment cooperation agreement, the company paid the initial investment of 24 million US dollars on May 21, 2018. The company obtained the equity certificate of subscribing 10,212,765 shares of E-round preferred stock issued by Protean and became a shareholder of the Protean E-round preferred stock with the equity certificate number of Number E-1, which certified that the Company was the stock holder of 10,212,765 shares under the name of Protean Company. Relevant works with joint venture concerned are still in smooth process.
||||
|-|-|-|
||Disclosure||
|Overview||Query index for interim notice|
||date||
|Proposed application for listing inthe national middle and smallenterprises stock transfer system bythe controlling subsidiary WeifuTianli|2016-10-27|(Notice No. 2016-023) Published on Juchao Website (www.cninfo.com.cn)|
||2017-01-07|(Notice No. 2017-001) Published on Juchao Website (www.cninfo.com.cn)|

无锡威孚高科技集团股份有限公司2018年第三季度报告正文
||||
|-|-|-|
|Parts of the joint-stock enterprise’sequity held by the Company freeze|2017-03-08|(Notice No. 2017-002) Published on Juchao Website (www.cninfo.com.cn)|
||2017-12-06|(Notice No. 2017-023) Published on Juchao Website (www.cninfo.com.cn)|
|The Company invest on the E-roundpreferred stock issued by ProteanHoldings Corp. and a Sino-foreignjoint venture will establishes by thetwo parties in China|2018-03-28|(Notice No. 2018-003) Published on Juchao Website (www.cninfo.com.cn)|
||2018-05-30|(Notice No. 2018-014) Published on Juchao Website (www.cninfo.com.cn)|

III. Commitments that the company, shareholders, actual controller, offeror, directors, supervisors, senior management or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
□ Applicable√ Not applicable
There are no commitments that the company, shareholders, actual controller, offeror, directors, supervisors, senior management or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period.
IV. Estimation of operation performance for year of 2018
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation of reason
□Applicable √Not applicable
V. Particular about security investment
√ Applicable □Not applicable
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||Book|Changes||||||||
|||||||||Curre||Profit||||
|||||Account|value at|in fair|||||Book|||
|Variety||Short|||||Cumulativ|nt||and loss||||
||Code of||Initial|ing|the|value of|||Current||value at||Sourc|
|of||form of|||||e fair value|purch||in the||Accountin||
||securiti||investm|measure|beginni|the|||sales||the end||e of|
|securitie||securitie|ent cost||||changes in|ase||Reporti||g subject||
||es|||ment|ng of|current|||amount||of the||stock|
|s||s|||||equity|amou||ng||||
|||||model|the|profit|||||period|||
|||||||||nt||Period||||
||||||period|and loss||||||||
|Domesti||||||||||||Financial||
|||||Measure||||||||||
|c and|||199,208||186,966|-52,859,|-2,897,858||37,880,|-52,805,|105,848|assets|Own|
||600841|SDEC||d by fair||||||||||
|foreign|||,000.00||,000.00|532.00|.24||000.00|846.59|,940.00|available|funds|
|||||value||||||||||
|stocks||||||||||||for sales||
|Domesti||||||||||||Financial||
|||Miracle||Measure||||||||||
|c and|||69,331,||79,410,|-37,632,|5,664,952.|||-37,397,|41,777,|assets|Own|
||002009|Logistic||d by fair||||||||||
|foreign|||500.00||600.00|900.00|50|||400.00|700.00|available|funds|
|||s||value||||||||||
|stocks||||||||||||for sales||

无锡威孚高科技集团股份有限公司2018年第三季度报告正文
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||268,539||266,376|-90,492,|2,767,094.|0.00|37,880,|-90,203|, 147,626|||
|Total||--||||||||--|--|
||,500.00||,600.00|432.00|26||000.00|246.59|,640.00|||
|Disclosure date of|2012-03-24|||||||||||
|securities investment||||||||||||
||2013-06-04|||||||||||
|approval from the Board||||||||||||

VI. Trust financing
√ Applicable□Not applicable
In 10 thousand Yuan
||||||
|-|-|-|-|-|
|Type|Capital resources|Amount for entrust|Balance un-expired|Overdue amount|
|Bank financing product|Own funds|348,000|257,000.00|0|
|Trust financing products|Own funds|112,790|97,808.00|0|
|Other|Own funds|166,150|101,546.87|0|
|Total||626,940|456,354.87|0|

 Details of the single major amount, or high-risk trust investment with low security, poor fluidity and non-guaranteed:
√ Applicable□Not applicable
In 10 thousand Yuan
||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||Amou||Whet|Summ|
||||||||||||||nt of||her|ary of|
||||||||||Ref|||Actu|||||
||||||||||||||reserve|Wheth|has|the|
||||||||||eren|||al|||||
||||||||Capita|||Anticipa|||for|er|entru|items|
|Truste||||Sou|||||ce|||colle|||||
||||||||l|Criteri||ted|Actual||devalu|approv|st|and|
|e||||rce|S|E|||ann|||cted|||||
||Trustee||||||invest|a for||income|gains/los||ation|ed by|finan|relate|
|institut||Type|Amount|of|tart|nd|||ual|||gains|||||
||type||||||ment|fixing||(if|ses in||of|legal|ce|d|
|ion r||||fun|date|date|||rate|||/losse|||||
||||||||purpos|reward||applicab|period||withdr|proced|plan|query|
|name||||ds|||||of|||s in|||||
||||||||e|||le)|||awing|ure|in|index|
||||||||||retu|||perio|||||
||||||||||||||(if|(Y/N)|the|(if|
||||||||||rn|||d|||||
||||||||||||||applica||futur|applic|
||||||||||||||ble)||e|able)|
|||||||||Refere|||||||||
|||||||||nce|||||||||
||Bank||||||Bank|||||Colle|||||
|||non-gua||Ow||||annual|||||||||
||financi||||||financi|||||cted|||||
|||ranteed||n|2018-|2019-||ized|5.00|10,012.6|10,012.6||||||
|Bank|al||581,000||||al|||||by||Y|Y||
|||floating||fun|01-03|04-08||yield|%|2|2||||||
||produc||||||produc|||||agree|||||
|||income||ds||||by|||||||||
||ts||||||ts|||||ment|||||
|||||||||agree|||||||||
|||||||||ment|||||||||
||Trust|Non-gua||Ow|||Collec|Refere||||Colle|||||
||||||2018-|2019-|||6.00||||||||
|Trust|financi|ranteed|143,000|n|||tive|nce||4,465.24|4,465.24|cted||Y|Y||
||||||01-04|01-28|||%||||||||
||ng|floating||fun|||trust|annual||||by|||||

无锡威孚高科技集团股份有限公司2018年第三季度报告正文
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||produc|income||ds|||schem|ized||||agree||||
||ts||||||e|yield||||ment||||
|||||||||by||||||||
|||||||||agree||||||||
|||||||||ment||||||||
|||||||||Refere||||||||
||||||||Fund|nce||||||||
|||||||||||||Colle||||
|||Non-gua||Ow|||produc|annual||||||||
|Others||||||||||||cted||||
|||ranteed||n|2018-|2019-|ts with|ized|7.00|||||||
|(funds,|Other||92,000|||||||7,738.04|7,738.04|by|Y|Y||
|||floating||fun|01-04|09-09|fixed|yield|%|||||||
|etc.)||||||||||||agree||||
|||income||ds|||incom|by||||||||
|||||||||||||ment||||
||||||||e|agree||||||||
|||||||||ment||||||||
|Total|||816,000|--|--|--|--|--|--|22,215.9|22,215.9|--|--|--|--|

 Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable√ Not applicable
VII. Particulars about derivatives investment
□ Applicable √ Not applicable
The Company had no derivatives investment in Period.
VIII. Registration form of receiving research, communication and interview in the report period
√ Applicable □Not applicable
|||||
|-|-|-|-|
|||Type of||
|Date|Method||Index for the interview and research|
|||investors||
|Form 1 July to 30|Written||The Company answered 36 questions for investors online through the investor relations|
|||Other||
|September 2018|inquiry||interactive platform(http://irm.p5w.net/dqhd/sichuan/)|
||Telephone|||
|Form 1 July to 30|||Basic condition of the Company and views on market in 2017, communication with|
||communicat|Other||
|September 2018|||investors by telephone more than 50|
||ion|||

IX. External security against the rules
□ Applicable √ Not applicable
The Company has no external security against the rules in the Period
无锡威孚高科技集团股份有限公司2018年第三季度报告正文
||
|-|
|X. Controlling shareholders' and its related party's non-business capital occupying of the|
|listed company|

□ Applicable √ Not applicable
There are no controlling shareholders' and its related party's non-business capital occupying of the listed company.
Board of Directors of
Weifu High-Technology Group Co., Ltd.
30 Oct. 2018