Weifu High-Technology Group Co., Ltd.
ANNUAL REPORT 2013
April 2014
Section I. Important Notice, Contents and Paraphrase
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.
Other directors attended the board meeting on auditing the report except for the following directors
|||||
|-|-|-|-|
|||Reason for absence|Entrusted|
|Name of absent director|Position of absent director|||
|Xing Min|Independent director|On a business trip|Du Fangci|

The profit distribution plan that deliberated and approved by the Board is: based on total stock issue of the Company dated 31 December 2013, distributed 3.00 Yuan (tax included) bonus in cash for every 10-share hold by all shareholders, 00 shares bonus issued (tax included) and no capitalizing of common reserves carried out. Chen Xuejun, Principal of the Company, Ou Jianbin, person in charger of accounting works and Ou Jianbin, person in charge of accounting organ (accounting principal) hereby confirm that the Financial Report of 2013 Annual Report is authentic, accurate and complete.
Concerning the forward-looking statements with future planning involved in the Report, they do not constitute a substantial commitment for investors. Investors should be cautious with investment risks.
Contents
Section I. Important Notice,Contents andparaphrase………………………………………………2 Section II. CompanyProfile………………………………………………………………………..7 Section III. Accounting data and summary of finnaicalindexes………………………………….. 9 Section IV. Report of the Board ofDirectors………………………………………………………12 Section V.ImportantEvents………………………………………………………………………..33 Section VI. Changes in Shares and particular about shareholders……………………………...42 Section VII. Particulars about Directors, Supervisors, Senior Executives andmployees…………47 Section VIII. CorporateGovemance………………………………………………………………53 Section IX. InternalControl……………………………………………………………………….58 Section X. Financial Report………………………………………………………………………60 Section XI. Documents available forreference…………………………………………………..171
Paraphrase
||||
|-|-|-|
|Items|Refers to|Contents|
|Company, The Company, Weifu|||
||Refers to|Weifu High-Technology Group Co., Ltd.|
|High-technology|||
|Weifu Group|Refers to|Wuxi Weifu Group Co., Ltd.|
|Industry Group|Refers to|Wuxi Industry Development Group Co., Ltd.|
|Robert Bosch, Robert Bosch Company|Refers to|Robert Bosch Co., Ltd.、ROBERT BOSCH GMBH|
|Bosch Automobile Diesel, Bosch Diesel|||
||Refers to|Bosch Automobile Diesel System Co., Ltd.|
|System|||
|Weifu Automotive Diesel|Refers to|Wuxi Weifu Automotive Diesel System Co., Ltd.|
|Weifu Leader|Refers to|Wuxi Weifu Leader Catalytic Converter Co., Ltd.|
|Weifu Jinning|Refers to|Nanjing Weifu Jinning Co., Ltd.|
|Weifu Chang’an|Refers to|Wuxi Weifu Chang’an Co., Ltd.|
|Weifu Mashan|Refers to|Weifu Mashan Pump Glib Co., Ltd.|
|Weifu ITM|Refers to|Wuxi Weifu ITM Supercharging Technique Co., Ltd.|
|Weifu Tianli|Refers to|Ningbo Weifu Tianli Supercharging Technique Co., Ltd.|
|Weifu Jialin|Refers to|Chaoyang Weifu Jialin Machinery Manufacture Co., Ltd.|
|Weifu Schmidt|Refers to|Wuxi Weifu Schmidt Power System Spare Parts Co., Ltd.|
|Weifu International Trade|Refers to|Wuxi Weifu International Trade Co. Ltd.|
|Weifu Nano|Refers to|Jiangsu Weifu Nano Technology Co., Ltd.|
|Autocam|Refers to|Wuxi Weifu-Autocam Fine Machinery Co. Ltd.|
|Weifu Environment|Refers to|Wuxi Weifu Environment Catalyst Co.,Ltd.|
|Kunming Xitong|Refers to|Kunming Xitong Machinery Co., Ltd.|
|Weifu Tianshi|Refers to||
|||Anhui Weifu Tianshi Machinery Co., Ltd.|
|Zhonglian Automobile Electronic|Refers to|Zhonglian Automobile Electronic Co., Ltd.|
|Yinlun Co.,Ltd|Refers to|Zhejiang Yinlun Machinery Co., Ltd.|
|Wanliyang|Refers to|Zhejiang Wanliyang Transmission Co., Ltd.|
|Jiangsu Hongbao|Refers to|Jiangsu Hongbao Hardware Co., Ltd.|
|Wiscom Technology|Refers to|Jiangsu Wiscom Technology Co., Ltd.|
|HopeRun Technology|Refers to|HopeRun Technology Corporation|
|Yunyi Electric|Refers to|Jiangsu Yunyi Electric Co., Ltd.|

||||
|-|-|-|
|Jinan Qingqi|Refers to|Jinan Qingqi Motorcycle Co., Ltd.|
|CSRC|Refers to|China Securities Regulatory Commission|
|SZ Stock Exchange|Refers to|Shenzhen Stock Exchange|
|Jiangsu Gongzheng|Refers to|Jiangsu Gongzheng Tianye Certified Public Accountants Co., Ltd.|
|The reporting period|Refers to|From 1 Jan. 2013 to 31 Dec. 2013|

Indication of major risks
Information Disclosure Media appointed by the Company are: China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao website (www.cninfo.com.cn). All the information is based on disclosure from them. Investors are advised to pay attention to investment risks.
Section II Company profile
I. Company information
|||||
|-|-|-|-|
|Short form of the stock|Weifu High- Tech, Su Weifu-B|Stock code|000581, 200581|
|Stock exchange for listing|Shenzhen Stock Exchange|||
|Name of the Company (in|无锡威孚高科技集团股份有限公司|||
|Chinese)||||
|Short form of the Company||||
||威孚高科|||
|(in Chinese)||||
|Foreign name of the||||
||WEIFU HIGH-TECHNOLOGY GROUP CO.,LTD.|||
|Company(if applicable)||||
|Short form of foreign name of||||
||WFHT|||
|the Company(if applicable)||||
|Legal representative|Chen Xuejun|||
|Registrations add.|No.5, Huashan Road, New District, Wuxi City|||
|Code for registrations add|214028|||
|Offices add.|No.107, Renmin West Road, Wuxi City|||
|Codes for office add.|214031|||
|Company’s Internet Web Site|http://www.weifu.com.cn|||
|E-mail|Web @ weifu.com.cn|||

II. Person/Way to contact
||||
|-|-|-|
||Secretary of the Board|Rep. of security affairs|
|Name|Zhou Weixing|Yan Guohong|
|Contact add.|No.107, Renmin West Road, Wuxi City|No.107, Renmin West Road, Wuxi City|
|Tel.|0510-82719579|0510-82719579|
|Fax.|0510-82751025|0510-82751025|
|E-mail|wfjt@public1.wx.js.cn|wfjt@public1.wx.js.cn|

III. Information disclosure and preparation place
|||
|-|-|
|Newspaper appointed for information disclosure|China Securities Journal; Securities Times; Hong Kong Commercial Daily|
|Website for annual report publish appointed by||
||http://www.cninfo.com.cn|
|CSRC||

|||
|-|-|
|Preparation place for annual report|Office of the Board of Directors|

IV. Registration changes of the Company
|||||||
|-|-|-|-|-|-|
||||Registration NO. for|No. of taxation|Organization|
||Date for registration|Place for registration||||
||||enterprise legal license|registration|code|
|||No.107, Renmin West||||
|Initial registration|1988-10-27||GuoJiZi No.: 1707|320208250456967|25045696-7|
|||Road, Wuxi City||||
|Registration at end||No.5, Huashan Road,||||
||2013-10-20||320200000014926|320208250456967|25045696-7|
|of report period||New District, Wuxi City||||
|Changes of main business since listing||||||
|||No changes||||
|(if applicable)||||||
|||The company’s controlling shareholder was Weifu Group before 2009.The controlling||||
|||shareholder changed to Industry Group from 31st May 2009 because Industry Group||||
|Previous changes for controlling||||||
|||merged Weifu Group in 2009.Becasue both Weifu Group and Industry Group were wholly||||
|shareholders (if applicable)||||||
|||state-owned companies of Wuxi State-owned Assets Supervision & Administration||||
|||Commission of State Council, which as actual controller had no changes.||||

V. Other relevant information
CPA engaged by the Company
|||
|-|-|
|Name of CPA|Jiangsu Gongzheng Tianye Certified Public Accountants Co., Ltd. (LLP)|
|Offices add. for CPA|No.28, Liangxi Road, Wuxi City|
|Signing Accountants|Bo Lingjing, Liu Darong|

Sponsor engaged by the Company for performing continuous supervision duties in reporting period
√ Applicable □ Not applicable
|||||
|-|-|-|-|
|||Name of sponsor||
|Name of sponsor|Offices add. for sponsor||Continuous supervision period|
|||deputy||
||No.1508, Xinzha Road, Jing’an|Zhang Qiying,Wen||
|Everbright Securities Co.,Ltd|||2012-3-1 to 2013-12-31|
||District, Shanghai City|Guangxia||

Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable√ Not applicable
Section III. Accounting data and summary of financial indexes I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not
□Yes√□ No
||||||
|-|-|-|-|-|
||||Changes over last year||
||2013|2012||2011|
||||(%)||
|Operating income (RMB)|5,589,307,689.55|5,015,283,418.71|11.45%|5,898,113,089.49|
|Net profit attributable to|1,108,221,450.83|889,326,939.46|||
|shareholders of the listed|||24.61%|1,204,617,075.56|
|company(RMB)|||||
|Net profit attributable to|||||
|shareholders of the listed company|||||
||1,013,085,655.87|852,679,760.32|18.81%|1,166,866,705.09|
|after deducting non-recurring gains|||||
|and losses(RMB)|||||
|Net cash flow arising from|803,958,123.13|1,165,759,218.46|-31.04%||
|||||326,269,185.07|
|operating activities(RMB)|||||
|Basic earnings per share|1.09|0.9|21.11%||
|||||1.42|
|(RMB/Share)|||||
|Diluted earnings per share|1.09|0.9|21.11%||
|||||1.42|
|(RMB/Share)|||||
|Weighted average ROE (%)|12.12%|11.36%|0.76%|26.27%|
||||Changes over end of||
||End of 2013|End of 2012||End of 2011|
||||last year (%)||
|Total assets (RMB)|13,074,232,730.91|11,055,973,932.34|18.25%|7,929,217,436.19|
|Net assets attributable to|9,600,765,223.81|8,655,980,755.24|||
|shareholder of listed company|||10.91%|5,064,060,401.35|
|(RMB)|||||

II. 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)
In RMB
||||||
|-|-|-|-|-|
||Net profit attributable to shareholders of listed||Net assets attributable to shareholders of listed||
||company||company||
|||||Amount at|
||Amount in this period|Amount in last period|Amount at period-end||
|||||period-begin|
|Chinese GAAP|1,108,221,450.83|889,326,939.46|9,600,765,223.81|8,655,980,755.24|
|Items and amount adjusted by IAS|||||

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)
In RMB
||||||
|-|-|-|-|-|
||Net profit attributable to shareholders of listed||Net assets attributable to shareholders of listed||
||company||company||
|||||Amount at|
||Amount in this period|Amount in last period|Amount at period-end||
|||||period-begin|
|Chinese GAAP|1,108,221,450.83|889,326,939.46|9,600,765,223.81|8,655,980,755.24|
|Items and amount adjusted by foreign accounting rules|||||

3. Reasons for the differences of accounting data under accounting rules in and out of China
III. Items and amounts of extraordinary profit (gains)/loss
In RMB
||||||
|-|-|-|-|-|
|Item|Amount in 2013|Amount in 2012|Amount in 2011|Note|
|Gains/losses from the disposal of non-current asset|13,126,709.30||||
|(including the write-off that accrued for impairment of||4,352,926.75|3,755,577.19||
|assets)|||||
|Governmental subsidy reckoned into current gains/losses|19,375,596.41||||
|(not including the subsidy enjoyed in quota or ration|||||
|||15,105,216.19|34,526,848.90||
|according to national standards, which are closely|||||
|relevant to enterprise’s business)|||||
|Gains arising from investment cost, obtained from|||||
|subsidiaries, affiliated enterprises and joint ventures,|||||
|which is less than fair value of identifiable net assets, that|||727,964.94||
|deserves to enjoy in invested units while investment|||||
|obtained|||||
|Profit and loss of assets delegation on others’ investment|91,274,698.13||||
|||24,750,377.29|||
|or management|||||
|Switch-back of impairment of account receivable that|||||
|||789,303.74|4,435,891.56||
|practice impairment test independent|||||

||||||
|-|-|-|-|-|
|Other non-operating income and expenditure except for|-1,806,748.05||||
|||-412,785.88|3,107,697.30||
|the aforementioned items|||||
|Less: Impact on income tax|19,872,935.33|6,429,913.94|7,019,338.38||
|Impact on minority shareholders’ equity (post-tax)|6,961,525.50|1,507,945.01|1,784,271.04||
|Total|95,135,794.96|36,647,179.14|37,750,370.47|--|

 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
Section IV. Report of the Board of Directors
I. Introduction
(I)General introduction
production and marketing on national auto market during 2013 achieved 22.1168 million and 21.9841 million respectively, announced by China Association of Automobile Manufactures, respectively increased by14.76% and13.87% year-on-year, including 18.0852 million and 17.9289 million respectively for production and marketing of passenger cars, respectively securing16.50% and15.71% year-on-year growth rate, and 4.0316 million and 4.0552 million of commercial vehicles with growth rate of7.56% and6.40% year-on-year respectively.
Thanks to the development of automobile industry and increase in commercial vehicles production and sales, heavy truck in particular, during the reporting period, the Company secured development direction, focusing on the target, centralized by benefits, and seize the market opportunity under the precondition of improving quality, efficiency and strictly controlling the risks and costs. Products from three major business units of the Company stability increase in production and sales, shares in major markets improved substantially, product mix gains a further optimized and operation performance of the Company growth steadily.
Operation revenue of RMB 5.589 billion for the reporting period, up11.45% on a year-on-year basis; net profit attributable to parent company of RMB 1.108 billion, an increase of24.61% from the year-ago period; total assets of RMB 13.074 billion, a18.25% up year-on-year and equity attributable to owners of parent company of RMB 9,600 million, up10.91% on a year-on-year basis.
(II)Major works
1. System and process optimization, implementation pre-control of risk management
Organize and judge the responsibility, system and process of vary functional departments, established an integrative process management model and risk management mechanism, prevent and control financial risks through process management;
2. Promote lean accounting idea and improve economic operation quality
Carry out lean accounting management and standard cost management, implement value stream analysis and cost variance analysis, strengthen project cost control and improve the financial management assures the maximization of revenue for the Group;
3. Deepening quality management, further enhance the ability in quality control
By mode of cross check, completed the annual examination plan of internal quality management system in three aspect of customer oriented process, support process and management process. Exercise on-site assessment for the service condition of quality tools, assessment coverage up to100%. By vary means of value stream analysis and KPI Tree decomposition, promoting the preparation of SMED standard documents in vary divisions, made the bottleneck process management implemented efficiency in every divisions.
4. Orderly speed up theR&D platform and ability construction
Engineering Institute Technology Center: came to one of the provincial engineering center in first 26 enterprises conferred by NDRC of Jiangsu Province in 2013. Increase a series of high-end test capacity as SCR pump nozzle test, 3D vibration integration and test with condition variation, enhanced in the technique development test ability greatly.R&D Center of Exhaust After Treatment System: with the goal of building the first-classR&D Center, further to perfected test capacity and established and improved testing process and standards. Complete research cooperation platform and promote construction for the key laboratory. SuperchargersR&D Center: carrying out works by focusing on test capacity construction,R&D project management, capacity establishment of core technology and newR&D, completing initially the building of turbine dynamometer position, debug and accepted the axis orbit test system and test system of impeller natural frequency.
5. Implemented Industrial Layout Adjustment, steadily promote infrastructure
Temporary facilities transfer of Weifu Industry Park were completed by highly design-driven and well-through planning; municipal works of industry park finished the pre-buried of road construction and drain pipe for storm sewage, and body structure of Weifu industry park will top off at the end of 2013.
6. Accelerate the information construction, strengthengroup’s core competence
To build up a business platform with priority of―gets through industrial value chain and achieve integration of finance andbusiness‖, focusing on process optimization and system integration, establish SAP template and system management standards for group management.
II. Main business analysis
1. Introduction
In the reporting, thecompany’s main business was automotive component and parts industry with no changes, mainly engaged in the development, manufactures and sales of automotive fuel injection system, automotive post-processing system and intake system of engine. The following table is the change ofcompany’s operating revenue, cost, and expenses etc.:
|||||
|-|-|-|-|
|In 10 thousand yuan||||
|Item|2013|2012|Increase y-o-y (%)|
|Operating revenue|558,930.77|501,528.34|11.45|
|Operating cost|416,980.73|377,347.76|10.50|
|Sales tax and additions|3,245.85|3,183.29|1.97|
|Sales expenses|20715.29|19,064.35|8.66|
|Administration expenses|55,828.54|44,454.40|25.59|
|Financial expenses|-5,689.11|-7,549.49||
|Loss of assets impairment|8,862.12|2,111.57|319.69|
|Investment income|64,249.33|39,621.93|62.16|
|Opreating profit|123,236.69|102,538.39|20.19|
|Total profit|125,730.96|103,801.69|21.13|
|Net profit attributable to owner of parent company|110,822.15|88,932.69|24.61|

Review and summarization on the progress of development strategy and operation plan disclosed in previous period during the
reporting period
In 2013, based on the development of economic situation and trend of the market changes, and around the development strategy of the Company and targets at the beginning of the year, Board of the Company seized market opportunity, promoted strategic restructuring of the economy, strictly controlled the risks, positively prepared the warm-up for implementation of regulation of Standard IV Emission and market-einfuehrung, guarantee a sustainable development for theCompany’s operation performance.
Reasons for difference of actual operation performance has20% lower or higher than profit forecast of the Year disclosed
□ Applicable√ Not applicable
2. Revenue
Explanation
The company mainly engaged in automobile parts, and achieved operating revenue RMB 5.589 billion, increasing11.45% y-o-y.
Whether income from physical sales larger than income from labors or not
√ Yes□ No
||||||
|-|-|-|-|-|
|||||Increase/decrease|
|Industries|Item|2013|2012||
|||||y-o-y (%)|
||Sales volume|155|139|11.51%|
|Fuel injection|||||
|system—multiple-piston|Production volume|163|135|20.74%|
|pump(10 thousand)|Stock volume|19|11|72.73%|
||Sales volume|585|552|5.98%|
|Fuel injection|||||
||Production volume|632|505|25.15%|
|system—injector(10 thousand)|||||
||Stock volume|115|68|69.12%|
||Sales volume|149|123|21.14%|
|Post-processing|||||
||Production volume|159|124|28.23%|
|system—purifier(10 thousand)|||||
||Stock volume|36|26|38.46%|
||Sales volume|106|100|6%|
|Post-processing|||||
||Production volume|105|93|12.9%|
|system—muffler(10 thousand)|||||
||Stock volume|9|10|-10%|
||Sales volume|28|23|21.74%|
|Intake system—turbocharger(10|||||
||Production volume|28|24|16.67%|
|thousand)|||||
||Stock volume|5|5|0%|

 Reasons for y-o-y relevant data with over30% changes
√Applicable□Not applicable
1. Because of the stable macro-economic situation, rapidly development of the logistic industry and great growth
of sales in heavy truck market, drive the stock of production and sales of the fuel injection system products growth
year-on-year.
2. With the promotion of regulation of National IV Emission Standars, stock of production and sales of the aftertreatment system products growth on a y-o-y basis
Material orders in hands
□ Applicable√ Not applicable
Material changes or adjustment for products or services of the Company in reporting period
□ Applicable√ Not applicable
Major sales of the Company
|||
|-|-|
|Total top five clients in sales (RMB)|2,018,065,018.65|
|Proportion in total annual sales volume for top five clients (%)|36.1%|

 Information of top five clients of the Company
√Applicable□Not applicable
|||||
|-|-|-|-|
|Serial|Name|Sales (RMB)|Proportion in total annual sales (%)|
|1|Client 1|601,336,432.13|10.76%|
|2|Client 2|419,471,583.81|7.5%|
|3|Client 3|371,895,431.33|6.65%|
|4|Client 4|324,806,138.72|5.81%|
|5|Client 5|300,555,432.66|5.38%|
|Total|--|2,018,065,018.65|36.1%|

 3. Cost
Industry classification
In RMB
||||||||
|-|-|-|-|-|-|-|
|||2013||2012|||
|Industry||||||Y-o-y changes|
||Item||Ratio in operation||Ratio in operation||
|classification||Amount||Amount||(%)|
||||cost (%)||cost (%)||
|Automobile parts|Direct material|2,932,939,105.10|77.47%|2,650,613,999.10|77.03%|10.65%|
|Automobile parts|Labor cost|336,433,791.03|8.89%|295,830,221.43|8.6%|13.73%|
|Automobile parts|Depreciation|113,287,016.34|2.99%|107,988,731.56|3.14%|4.91%|
||Varieties of||||||
|Automobile parts||403,066,029.67|10.65%|386,767,817.42|11.24%|4.21%|
||consumption||||||

Product classification
In RMB
||||||||
|-|-|-|-|-|-|-|
|||2013||2012|||
||||Ratio in||Ratio in|Y-o-y|
|Industry classification|Item||||||
|||Amount|operation cost|Amount|operation|changes (%)|
||||(%)||cost (%)||
|Fuel injection system|Direct material|2,001,127,856.10|72.11%|1,903,254,331.70|72.91%|5.14%|
|Fuel injection system|Labor cost|303,491,485.66|10.94%|269,670,504.29|10.33%|12.54%|
|Fuel injection system|Depreciation|98,562,552.54|3.55%|95,296,901.78|3.65%|3.43%|
||Varieties of||||||
|Fuel injection system||371,768,012.63|13.4%|342,136,504.59|13.11%|8.66%|
||consumption||||||
|Intake system|Direct material|96,361,023.76|75.15%|112,288,382.49|79.89%|-14.18%|
|Intake system|Labor cost|14,606,404.08|11.39%|12,353,819.64|8.79%|18.23%|
|Intake system|Depreciation|9,587,386.03|7.48%|8,550,060.53|6.08%|12.13%|
||Varieties of||||||
|Intake system||7,670,333.89|5.98%|7,355,389.59|5.23%|4.28%|
||consumption||||||
|Post-processing system|Direct material|835,450,225.24|94.66%|635,071,284.91|92%|31.55%|
|Post-processing system|Labor cost|18,335,901.29|2.08%|13,805,897.50|2%|32.81%|
|Post-processing system|Depreciation|5,137,077.76|0.58%|4,141,769.25|0.6%|24.03%|
||Varieties of||||||
|Post-processing system||23,627,683.16|2.68%|37,275,923.24|5.4%|-36.61%|
||consumption||||||

Note
Production and sales of post-processing system is growing faster, so direct material and labor cost etc. is growing faster.
Main suppliers of the Company
|||
|-|-|
|Total purchase amount from top five suppliers (RMB)|1,101,122,434.17|
|Proportion in total annual purchase amount for top five suppliers (%)|34.26%|

 Information of top five suppliers of the Company
√Applicable□Not applicable
|||||
|-|-|-|-|
|Serial|Name|Sum of purchase (RMB)|Proportion in total annual sum of purchase (%)|
|1|Client 1|572,876,806.37|17.83%|
|2|Client 2|205,426,321.64|6.39%|
|3|Client 3|126,786,523.40|3.95%|
|4|Client 4|112,931,063.61|3.51%|
|5|Client 5|83,101,719.15|2.59%|
|Total|--|1,101,122,434.17|34.26%|

4. Expenses
In the reporting, thecompany’s main expenses are as follows:
|||||
|-|-|-|-|
|In 10 thousand yuan||||
|Name|2013|2012|Increase y-o-y (%)|
|Sales expenses|20,715.29|19,064.35|8.66|
|Administration expenses|55,828.54|44,454.40|25.59|
|Financial expenses|-5,689.11|-7,549.49||
|Income tax expenses|10,301.61|10,377.96|-0.74|

5.R&D expenses
During the reporting period, the Company orderly speed up theR&D platform and ability construction, speed up the process of technology center of engineering institute,R&D center of exhaust after treatment and superchargeR&D center, enhanced greatly in aspect of the ability in technology development testing. In 2013, theR&D expenses of the Company were RMB211, 699,000, accounting for2.12% of the latest audited net profit and3.79% of the latest audited operating income.
6. Cash flow
In RMB
|||||
|-|-|-|-|
|Item|2013|2012|Y-o-y changes (%)|
|Subtotal of cash in-flow from operation activity|6,384,171,015.19|6,442,560,329.86|-0.91%|
|Subtotal of cash out-flow from operation activity|5,580,212,892.06|5,276,801,111.40|5.75%|
|Net cash flow from operation activity|803,958,123.13|1,165,759,218.46|-31.04%|
|Subtotal of cash in-flow from investment activity|2,036,906,091.62|259,134,993.55|686.04%|
|Subtotal of cash out-flow from investment activity|3,094,204,131.67|1,916,823,809.13|61.42%|
|Net cash flow from investment activity|-1,057,298,040.05|-1,657,688,815.58||
|Subtotal of cash in-flow from financing activity|888,120,000.00|3,517,125,210.00|-74.75%|
|Subtotal of cash out-flow from financing activity|778,844,160.72|1,338,170,679.02|-41.8%|
|Net cash flow from financing activity|109,275,839.28|2,178,954,530.98|-94.98%|
|Net increased amount of cash and cash equivalent|-144,064,077.64|1,687,024,933.86|-108.54%|

 Reasons for y-o-y relevant data with over30% changes
√Applicable □Inapplicable
1. Net cash flow from operation activity
Net cash flow from operation activity in 2013 decreased RMB 361,801,100 than that of 2012 at a down of31.04%, mainly because notes receivable, accounts receivable and the inventory balance increased in this year.
2. Net cash flow from investment activity
Net cash flow from investment activity in 2013 increased RMB 600,390,800 than that of 2012, mainly because investment of
financial products increased in last year and the investment to joint venture Bosch Diesel System.
3. Net cash flow from financing activity
Net cash flow from financing activity in 2013 decreased RMB 2,069,678,700 than that of 2012, mainly because privately offering
raised capital RMB 2,850,124,300 in last year.
Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company
□Applicable√Not applicable
III. Composition of main business
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Increase/decrease|Increase/decrease|Increase/decrease|
||||Gross profit||||
||Operating revenue|Operating cost||of operating|of operating cost|of gross profit|
||||ratio (%)||||
|||||revenue y-o-y (%)|y-o-y (%)|ratio y-o-y (%)|
|According to industries|||||||
|Automobile parts|5,157,336,631.31|3,785,725,942.14|26.6%|10.88%|10.01%|0.58%|
|According to products|||||||
|Automobile fuel|||||||
||3,915,983,172.09|2,774,949,906.93|29.14%|6.78%|5.2%|1.06%|
|injection system|||||||
|Intake system|172,146,754.65|128,225,147.76|25.51%|12.09%|13.27%|-0.78%|
|Automobile|||||||
|post-processing|1,069,206,704.57|882,550,887.45|17.46%|28.77%|27.85%|0.59%|
|system|||||||
|According to region|||||||
|Domestic|4,902,874,502.23|3,544,580,678.04|27.7%|12.4%|12.22%|0.12%|
|Oversea|254,462,129.08|241,145,264.10|5.23%|-12.06%|-14.65%|2.87%|

 Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on latest oneyear’s scope of period-end
□ Applicable√ Not applicable
IV. Assets and liability analysis
1. Major changes of assets
In RMB
||||||||
|-|-|-|-|-|-|-|
||End of 2013||End of 2012||Ratio|Notes of|
|||Ratio in total||Ratio in total|changes|major|
||Amount||Amount||||
|||assets (%)||assets (%)|(%)|changes|
|Monetary fund|2,447,555,672.40|18.72%|2,600,714,219.36|23.52%|-4.8%||
|Account receivable|1,132,835,466.09|8.66%|1,036,392,701.40|9.37%|-0.71%||
|Inventory|986,790,491.70|7.55%|759,505,087.10|6.87%|0.68%||
|Investment real estate|3,424,363.44|0.03%|3,881,346.30|0.04%|-0.01%||

|||||||
|-|-|-|-|-|-|
|Long-term equity investment|2,622,500,708.20|20.06%|2,192,275,239.86|19.83%|0.23%|
|Fix assets|1,471,037,804.88|11.25%|1,404,806,234.18|12.71%|-1.46%|
|Construction in progress|199,463,338.80|1.53%|65,649,548.48|0.59%|0.94%|

2. Major changes of liability
In RMB
||||||||
|-|-|-|-|-|-|-|
||2013||2012||Ratio|Notes of|
|||Ratio in total||Ratio in total|changes|major|
||Amount||Amount||||
|||assets (%)||assets (%)|(%)|changes|
|Short-term loans|399,500,000.00|3.06%|70,000,000.00|0.63%|2.43%||
|Long-term loans|60,000,000.00|0.46%|||0.46%||

3. Assets and liabilities measured by fair value
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Changes of fair|Accumulative|||||
||Amount at the|||Devaluation of|Amount of|Amount of||
|||value|changes of fair||||Amount in the|
|Items|beginning|||withdrawing|purchase in the|sale in the||
|||gains/losses in|value reckoned into||||end of period|
||period|||in the period|period|period||
|||this period|equity|||||
|Financial assets||||||||
|3.Financial|265,689,600.00|42,490,055.00|||||385,009,400.00|
|assets available|||||69,331,500.00|||
|for sales||||||||
|Aforementione|265,689,600.00|42,490,055.00|||||385,009,400.00|
||||||69,331,500.00|||
|d total||||||||
|Financial|0.00||||||0.00|
|liabilities||||||||

Whether the attribute of thecompany’s major assets measurement has a lot changes in the reporting
□ Yes√ No
V. Analysis on core competitiveness
The Company is the important domestic supplier of automobile components, mainly providing diesel fuel injection system, vehicle post-processing system and engine intake system (booster). In recent years, the Company increased its ability to adapt to and satisfy market through optimization of product structure, consolidation of technical advantage, improvement of manufacture ability and promotion of management innovation, realizing steady expansion of economic scale and market share. During the reporting period, the core competitiveness has no change.
1. Advanced technical advantage. The Company is one of the major high-tech enterprises under the national torch plan and high-tech enterprise of Jiangsu province, focusing on technical research and owning―national
technologycenter‖ and―postdoctoral scientific research workstation‖. The Company takes the leading position as
to its diesel fuel injection system technology. Common Rail Technology is the mature technology that recognized
in market at present, and has over two decades development history out of China. The high pressure common rail
products, produced by joint-stock enterprise of the Company Bosche Diesel, were entered the market of China on a large scale. The above said paoducts are the first choice for customers at present, the matching componenets owes a certain capacity and now is further to expand in order to push the home-made process. The Company has core technology in post-processing system and the ability to provide goods for downstream clients under centralized system. Besides, it launched new products such as SCR, POC and DOC meeting the national IV emission requirement in respect of diesel vehicles. Currently, the Company layouting the capacity in line with the marke demands, and the electronic control VE pump, developed by controlling subsidiary Weifu Jinning, has qualified the emission standard of National IV.
2. Complete set of product specification, complete industry chain and great production scale. Its diesel injection system products are vastly used in diesel engines with various powers, mating for various trucks, buses, engineering machinery, Marine, generator set.The Company produced 1,630,000 set of diesel multi-cylinder pumps and 6,320,000 set of fuel injectors in the reporting period. The Company owns advanced post-processing system production lines, producing 1,590,000 set of purifiers in the reporting period. The supercharger products can satisfy needs from light and heavy business vehicles and certain passenger vehicles, producing 280,000 set of superchargers in the reporting period.
3. Stable customers and matured market. With years of development, the Company has established long-term stable partnership with many domestic main engine producers. Besides, the constant stable development of the PRC economy will drive forward the healthy development of its three major business segments.
VI. Investment analysis
1. Situation of foreign equity investment
(1) Situation of foreign investment
||||
|-|-|-|
|Situation of foreign investment|||
|Investment in reporting period (RMB)|Investment in same period of last year (RMB)|Changes (%)|
|24,981,687.00|573,815,000.00|-95.65%|
|Situation of the invested company|||
|||Equity proportion in invested|
|Name|Main business||
|||company for Listed company (%)|
|Weifu Autocam|Automobile parts|51%|
|Weifu Schmidt|Automobile parts|66%|

(2)Holding equity of financial enterprise
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||Amount of|Proportion of|Amount of|Proportion of|||||
|||Initial|||||Book value at the|Gains and loss in|||
||||stock-holding at|stock-holding at|stock-holding at|stock-holding at|||Accounting||
|Name|Type|investment|||||end of the period|the reporting|||
||||the beginning of|the beginning of|the end of the|the end of the|||subject|Source of stock|
|||cost(RMB)|||||(RMB)|(RMB)|||
||||the period (Share)|the period (%)|period (Share)|period (%)|||||
|Guolian|Securitiescompany||||||||||
||||||||||Long-term stockright investment||
|Securities||12,000,000.00|18,000,000|1.2%|18,000,000|1.2%|12,000,000.00|360,000.00||Subscription|
|Co., Ltd.|||||||||||
|Nanjing|||||||||||
|Hengtai|Insurancecompany||||||||Long-term stockright investment||
|Insurance||1,000,000.00|1,000,000|1.85%|1,000,000|1.85%|1,000,000.00|||Subscription|
|and Broker|||||||||||
|Co., Ltd.|||||||||||
|Total||13,000,000.00|19,000,000|--|19,000,000|--|13,000,000.00|360,000.00|--|--|

 (3)Situation of securities investment
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Varietyofsecurities||||Amount of||||||||
|||||stock-holding|Proportion of|Amount of|Proportion of|||||
|||Short form|Initial|||||Book value at the|Gains and loss in|||
||Code of|||at the|stock-holding at|stock-holding at|stock-holding at|||Accounting||
|||of|investment|||||end of the period|the reporting||Source of stock|
||securities|||beginning of|the beginning of|the end of the|the end of the|||subject||
|||securities|cost(RMB)|||||(RMB)|(RMB)|||
|||||the period|the period (%|period (Share)|period (%)|||||
|||||(Share)||||||||
|||||||||||Financial assets||
|Stock|600841|SDEC|199,208,000.00|23,680,000|2.72%|23,680,000|2.72%|268,294,400.00|1,681,280.00|available for|Subscription|
|||||||||||sales||
|||||||||||Financial assets||
|||Miracle||||||||||
|Stock|002009||69,331,500.00|||9,300,000|2.9%|116,715,000.00||available for|Subscription|
|||Logistics||||||||||
|||||||||||sales||
|Total|||268,539,500.00|23,680,000|--|32,980,000|--|385,009,400.00|1,681,280.00|--|--|
|Disclosure date of securitiesinvestment approval of Boardreport|||2012-03-24|||||||||
||||2013-06-04|||||||||
|Disclosure date of securitiesinvestment approval of Boardreport(if applicable)||||||||||||

Statement of holding other listedcompanies’ equity
√ Applicable□Not applicable
On 24th March 2012, the Company approved participation in the subscription of SDEC non-public offering A share in 23rd Meeting of 6th Session of the Board, subscribing for SDEC non-public offering stocks 14.8 million shares at the price of RMB 13.46 per share, which proportion in total stocks after SDEC non-public offering stocks was2.72%.The company committed no transfer after the subscription in 12 months, restricted period (2012-3-23-2013-3-22).SDEC implemented the plan of annual profit distribution and converting capital reserve into share capital for 2011 on 4th June 2012.( sending cash of RMB 0.5(tax included) per every 10 shares, converting 6 shares per every 10 shares. In the reporting, the company held SDEC 23.68 million shares. In May 2013, in line with the define authority in―Decision-making System of Major Investment andFinancial‖, being discussed by the management and approved from the Chairman, the Company decide to subscribe 9300000 private placement shares from Miracle Logistics with RMB 7.455 per share, a 2.9 percent in total share capital of Miracle Logistics after placement. The Company committed no transfer after the subscription in 12 months, restricted period (4 June 2013 to 3 June 2014).at the end of the reporting period the Company held Miracle Logistics 9.3 million shares.
2. Trust financing, investment of derivatives and entrustment loan
(1) Trust financing
In 10 thousand Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Amount of|||
|||Whether||||||Amount of||||
||Related||||||||reserve for||Actual|
|Name of||related||Amount of|||Determination|principal actual||Estimated||
||relationshi||Type||Start date of trust|End date of trust|||devaluation of||gains/losses in|
|trustee||trade or||trust financing|||method of reward|taking back in||income||
||p||||financing|financing|||withdrawing (if||period|
|||not||||||period||||
||||||||||applicable)|||
||||Bank|||||||||
||||financing,|||||||||
|Bank,|Non-relate||||||According to the|||||
|||No|management|257,685|2013-01-01|2013-12-31||174,775|0||9,127.47|
|trust|d party||||||agreement|||||
||||plan, trust|||||||||
||||products|||||||||
|Total||||257,685|--|--|--|174,775|0|0|9,127.47|
|||||All refers to the self-owned capital of the Company. The trust financing was cumulative amount; the actual capital for trust financing is RMB 2||||||||
|Capital resource||||||||||||
|||||billion at most, and recyclable within the limit.||||||||
|Overdue un-received principal and accumulated||||||||||||
|||||0||||||||
|earnings amount||||||||||||
|Lawsuit involved (if applicable)||||Not applicable||||||||
|Disclosure date for approval from the Board fortrust financing (if applicable)||||||||||||
|||||2013-03-28||||||||
|Disclosure date for approval from board ofshareholders for trust financing (if applicable)||||||||||||

(2) Investment of derivatives
In 10 thousand Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Ratio of||
|||Whether||||||Amount of||investment||
||Related||||||Investment|reserve for|Investment|amount at|Actual|
|||related||||||||||
|Operator|relationsh||Type|Initial investment|||amount at|devaluation of|amount at|period-end in net|gains/losses in|
|||trade or|||Start date|End date||||||
||ip||||||period-begin|withdrawing (if|period-end|assets of the|period|
|||not||||||||||
|||||||||applicable)||Company at||
|||||||||||period-end (%)||
|Total||||0|--|--|0||0|0%|0|
|Capital resource||||Not applicable||||||||
|Disclosure date for approval from theBoard for investment of derivatives (ifapplicable)||||||||||||
|Disclosure date for approval from board ofshareholders for investment of derivatives(if applicable)||||||||||||

(3) Entrustment loan
In 10 thousand Yuan
|||||||
|-|-|-|-|-|-|
|Loan object|Whether the related party|Amount of loan|Interest rate of loan|Guarantor or collateral|Use of loan object’s fund|
|Total|--|0|--|--|--|
|Disclosure date for approval from the Board forentrustment loan (if applicable)||||||
|Disclosure date for approval from board ofshareholders for entrustment loan (if applicable)||||||

3. Application of raised proceeds
(1)Overall application of raised proceeds
In 10 thousand Yuan
|||
|-|-|
|Total raised proceeds|285,012.43|
|Total raised proceeds invested during the reporting period|23,802.9|
|Total accumulative raised proceeds invested|185,878.64|
|Total raised proceeds for new purposes during the reporting period|0|
|Total accumulative raised proceeds for new purposes|0|
|Proportion of the total accumulative raised proceeds for new purposes (%)|0%|
|General application of raised proceeds||
|On 21 January 2012, the CSRC issued the reply on approving non-public issuance of Weifu High-technology Group Co., Ltd. (ZJXK(2012)No.109), pursuant to which, the Company was||
|approved to issue new shares not exceeding 112,858,000 by non-public offering. On 10 February 2012, Jiangsu Gongzheng issued capital verification report (SGW(2012)No.B006), stating that||
|as at 10 February 2012, Weifu High-tech has already issued 112,858,000 RMB common shares (A-share) and raised capital proceeds of RMB2,866,028,910.00. after deduction of issuance||
|expense of RMB15,904,657.07, the net raise proceeds was RMB2,850,124,252.93. As at the end of the reporting period, raise proceeds of RMB 1,858,786,400 has been invested.||

 (2) Situation of committed project of raised proceeds
In 10 thousand Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Projects||||||||||
|||Total|||Amount of|Investment|Predicted|||Project|
|Committed investment|changed or not|committed|Total|Amount|accumulated|program till the|serviceable|Profit achieved|Reach the|feasibility was|
|projects &investment|(including||investment after|invested in this|||||predicted||
|||investment of|||investment till|year-end|condition date|in this year||changed hugely|
|of raised fund|changed||adjustment (1)|year|||||interest or not||
|||raised capitals|||the year-end (2)|(3)=(2)/(1)|of project|||or not|
||partially)||||||||||
|Investment project commitment|||||||||||
|R&D of WAPS,|||||||||||
|industrialization,|||||||||||
|productivity expansion|No|62,032|62,032|2,251.63|20,821.32|33.57%|2013-10-31|||No|
|of diesel common rail|||||||||||
|system parts|||||||||||
|Construction project in|||||||||||
||No|57,750|57,750|14,928.52|16,858.09|29.19%|2013-10-31|||No|
|industrial zone|||||||||||
|Industrialization of tail|||||||||||
||Yes|26,000|26,000|6,622.75|18,968.8|72.96%|2015-06-30|||No|
|treatment system|||||||||||
|Research institution|||||||||||
||No|5,154|5,154||5,154|100%|2012-12-31|||No|
|project|||||||||||
|Battery material of|||||||||||
|engines and R&D of|No|10,000|10,000|||0%|2012-12-31|||No|
|battery|||||||||||
|Equity acquisition|No|34,381.5|34,381.5||34,381.5|100%|2012-06-30|2,348.1||No|
|Liquid assets|No|90,000|89,694.93||89,694.93|100%||||No|

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|supplementation|||||||||||
|Subtotal of|||||||||||
||--|285,317.5|285,012.43|23,802.9|185,878.64|--|--|2,348.1|--|--|
|commitment projects|||||||||||
|Investment orientation for fund arising out of plan|||||||||||
|Total|--|285,317.5|285,012.43|23,802.9|185,878.64|--|--|2,348.1|--|--|
||1. WAPS research development and industrial diesel common rail system components capacity enhancement project. Under the feasibility report of this project, the date||||||||||
||for reaching the condition for intended use was on 31 October 2013. As of 31 December 2013, the accumulative investment amounted to RMB 208,213,200,||||||||||
||representing investment progress of 33.57%. Reason for lag behind the progress included:||||||||||
||(1)the raised proceeds was not in place in time (the proceeds was expected to be in place in March 2011, while the actual cash time was February 2012);||||||||||
||(2) The project has WAPS system products involved, which was self-developed by the Company without example, the products have completed after work of||||||||||
||consistency and reliability and come to Market-Einfuehrung stage;||||||||||
||(3) components involved in the project with diesel common rail system: currently, with the promotion of emission standards of National IV, common rail products have||||||||||
||complete cover the market of National IV, the common rail components matching the Bosch diesel common rail products are in short supply, therefore, the Company||||||||||
|Situation about not|||||||||||
||rapid up the capacity improvement for common rail parts at present. Given this, the project will be accelerated in year of 2014.||||||||||
|coming up to schemed|||||||||||
|progress or expected|2. Under the feasibility report of Construction of industry park project, the date for reaching the condition for intended use was on 31 October 2013. As of 31 December||||||||||
|revenue and the|||||||||||
||2013, the accumulative investment amounted to RMB 168,580,900, representing investment progress of 29.19%. Reason for lag behind the progress included:||||||||||
|reason(In specific|||||||||||
|project)|(1) in 2012, the project not to start as scheduled due to the relocation of governmental parcel;||||||||||
||(2) In 1Q of 2013, relocation of government parcel was completed, the project start in April officially and in a good process recently.||||||||||
||(3) The relocation expected to be completed at the end of 2014.||||||||||
||3. Auto power battery materials and power battery research project. Under the feasibility report of this project, the date for reaching the condition for intended use was||||||||||
||31 December 2012. As of 31 December 2012, the accumulative investment was nil. Reasons included:||||||||||
||(1) the raised proceeds was not in place in time;||||||||||
||(2) The Company followed the project in the last two years, and there was great uncertainty in technology and policy, therefore, the Company was prudent for this||||||||||
||project and continued to follow development of power battery and would make decisions if needed.||||||||||
|Amount, usage and|||||||||||
||Not applicable||||||||||
|progress of using for|||||||||||
|fund raising out of the|||||||||||
|plan|||||||||||
||Not applicable||||||||||
|Change of|||||||||||
|implementation place|||||||||||
|of investment project|||||||||||

|||
|-|-|
|of raised capitals||
||Applicable|
||Occurred in reporting period|
||In consideration of the uncertainty of emission regulation promotion (Standard Three turns to Standard Four), and the lands are in short supply at the mean time, theoriginal investment plan of ―Industrialization of tail treatment system‖ met no needs of the subsidiary Wuxi Weifu Leader Catalytic Converter Co., Ltd. (hereinafterreferred to as‖ Weifu Leader‖) of implementing subject company in aspect of development. Therefore, part of the content in ―Industrialization of tail treatment system‖was changed by the Company. The abovementioned event has been deliberated and approve by 9th meeting of 7th session of the Board held on 26 March 2013 and annualshareholders’ general meeting of 2012 held on 23 May 2013 respectively, the ―Proposal of Changing the Investment Plan with Raised Proceeds‖ was published onJuchao Website dated 28 March 2013, found more details in Notice No.: 2013-007. The adjustment for the investment plan of ―Industrialization of tail treatment system‖changes no investment orientation of the raised proceeds, only the investment amount changed from RMB 260 million to RMB 340 million, the adjusted part will supplywith self-owned capital. The project expected to reach serviceable condition after adjustment in June 2015. The changes for raised proceed this time has no influence onthe investment orientation and actual content of implementation without affect the implementation of investment plan. The adjustment guarantees a normal utilization ofraised proceeds and smoothly implementation of projects of raised proceeds, and in line with the actual condition of the Company and long-term development plan.|
|Adjustment of||
|implementation way||
|for investment project||
|of raised capitals||
||Applicable|
||Jiangsu Gongzheng issued ―Weifu High-Technology Group Co., Ltd. certified report of self-finance input raising and investment project in advance‖ ―SGW[2012]No.: E1100‖,ended as 29th February 2012,the company actual investment amount by self-finance input raising and investment project in advance was RMB299,120,000,including 1. R&D of WAPS, industrialization, productivity expansion of diesel common rail system parts RMB 180,050,000; 2. Construction project inindustrial zone RMB 16,620,000; 3. Industrialization of tail treatment system RMB 28,560,000;4. Research institution project RMB 51,540,000; 5. Equity acquisition RMB 22,350,000. On 3rd March 2012, the 2nd Meeting of 7th Session of the Board approved of―proposal of using raised capitals to replace the fund from advanced input raised capitals project‖, which agreed to replace self-finance input raised capitals project inadvance by raised capitals RMB 299,120,000.|
|Regulation of||
|implementation ways||
|of investment project||
|of raised capitals||
|Invested in pre-phases||
|and replacement for|Not applicable|
|raised fund projects||
|Temporarily||
|supplement for the||
|current capitals with||
|idle raised capitals||
|Usage and trend of|Not applicable|
|unused raised capitals||
|Invested in pre-phases|On the storage and the usage of raised capitals, the company’s execution strictly based on related laws and regulations and three-party supervision protocol of raised|
|and replacement for|capitals (four-party supervision protocol of raised capitals) in the reporting period.|

|||
|-|-|
|raised fund projects||
|Temporarily||
|supplement for the||
||Not applicable|
|current capitals with||
|idle raised capitals||

(3)The changed project of raised proceeds
In 10 thousand Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||Total||||||||
||||||Progress of the|||||
||Correspondi|amount||Accumulation virtual|investment deadline|Predicted serviceable||Whether it has come|Whether the|
|Project after|ng original|invested|Virtual amount input|amount input up to|||||feasibility of the|
||||||the end of the|condition date of|Income achieved in|up to the scheduled||
|the change|committed|after|in the reporting|end of the reporting|||||project changed after|
||||||reporting|project|the reporting|income||
||project|adjustment||(2)|||||the alteration|
|||(1)|||(%)(3)=(2)/(1)|||||
|Industrializa|Industrializa|||||||||
|tion of tail|tion of tail|||||||||
|||26,000|6,622.75|18,968.8|72.96%|2015-06-30|||No|
|treatment|treatment|||||||||
|system|system|||||||||
|Total|--|26,000|6,622.75|18,968.8|--|--|0|--|--|
||||In consideration of the uncertainty of emission regulation promotion (Standard Three turns to Standard Four), and the lands are in short supply at the|||||||
||||mean time, the original investment plan of ―Industrialization of tail treatment system‖ met no needs of the Weifu Leader in aspect of development.|||||||
||||Therefore, part of the content in ―Industrialization of tail treatment system‖ was changed by the Company. The abovementioned event has been|||||||
||||deliberated and approve by 9th meeting of 7th session of the Board held on 26 March 2013 and annual shareholders’ general meeting of 2012 held on 23|||||||
||||May 2013 respectively, the ―Proposal of Changing the Investment Plan with Raised Proceeds‖ was published on Juchao Website dated 28 March 2013,|||||||
|Changing reason, decision procedure||||||||||
|and statement of disclosure(In specific|||found more details in Notice No.: 2013-007. The adjustment for the investment plan of ―Industrialization of tail treatment system‖ changes no investment|||||||
|project)|||orientation of the raised proceeds, only the investment amount changed from RMB 260 million to RMB 340 million, the adjusted part will supply with|||||||
||||self-owned capital. The project expected to reach serviceable condition after adjustment in June 2015. The changes for raised proceed this time has no|||||||
||||influence on the investment orientation and actual content of implementation without affect the implementation of investment plan. The adjustment|||||||
||||guarantees a normal utilization of raised proceeds and smoothly implementation of projects of raised proceeds, and in line with the actual condition of the|||||||
||||Company and long-term development plan.|||||||
|Reasons for falling behind the target||||||||||
||||Not applicable|||||||
|progress or target income(By projects)||||||||||
|Explanation on major changes of||||||||||
||||No major changes|||||||
|feasibility after the project changed||||||||||

4. Main subsidiaries and stock-jointly companies
Particular about main subsidiaries and stock-jointly companies
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Main products or|||||||
|Company name|Type|Industries||Register capital|Total assets|Net Assets|Operating revenue|Operating profit|Net profit|
||||service|||||||
||||Fuel injection|||||||
|Weifu Automotive||||||||||
||Subsidiary|Automobile parts|system|300,000,000.00|1,016,198,895.31|816,602,135.78|1,115,181,809.66|229,240,230.03|197,689,990.76|
|Diesel||||||||||
||||productions|||||||
||||Post-processing|||||||
|Weifu Leader|Subsidiary|Automobile parts|system|502,596,300.00|1,503,123,974.03|924,670,611.73|1,119,674,519.30|100,851,924.54|96,446,312.24|
||||productions|||||||
||||Fuel injection|||||||
|Weifu Jinning|Subsidiary|Automobile parts|system|346,286,825.80|1,116,570,769.55|756,984,965.35|768,142,576.59|148,927,020.76|134,104,759.41|
||||productions|||||||
||||Fuel injection|||||||
|Bosch Automobile|Joint-stock|||USD230,000,000.||||||
|||Automobile parts|system||6,039,584,611.00|4,404,763,995.00|5,398,098,727.00|1,134,183,957.00|939,239,423.00|
|Diesel|company|||00||||||
||||productions|||||||
|Zhonglian|Joint-stock||Petrol system|||||||
|||Automobile parts||600,620,000.00|2,218,238,464.85|2,213,042,562.45|9,986,413.34|893,130,474.91|892,554,116.99|
|Electronic|company||productions|||||||

Notes of main subsidiaries and stock-jointly companies
Bosch Automobile Diesel gained net profit RMB 0.939 billion in 2013,increasing104.13% than RMB 0.46 billion in 2012,mainly because with the promotion of National IV emission standards, the common rail products produced are in short supply
Particular about subsidiaries obtained or disposed in report period
√ Applicable□Not applicable
|||||
|-|-|-|-|
|Name of|Purpose of getting and treating||Influence on overall|
|company|subsidiary in the reporting|The way of getting and treating subsidiary in the reporting|product and performance|
|||According to the equity transfer agreement singed between the Company and Autocam Corporation,||
||||To expand the business|
||It’s helpful to improve the|||
|Weifu||the one percent equity of Weifu Autocam, hold by Autocam Corporation, was transferred to the|scale of the Company and|
||manufacturing level of automobile|||
|Autocam||Company; capital contributed by the Company accounted for 51 percent of the register capital of|improve the performance|
||parts of the Company|||
|||Weifu Autocam, thus comes to the controlling subsidiary of the Company.|level|

5. The significant progress of non-raised proceeds investment In 10 thousand Yuan
|||||||
|-|-|-|-|-|-|
||Total investment|Investment amount||||
|Name of the project|||Accumulation of actual investment amount ended of the period-end|Progress of the project|Earnings of the project|
||amount|in the annual||||
|Total|0|0|0|--|--|

VII. Prediction of business performance from January–March 2014
Estimation on 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 on reason
√ Applicable□ Not applicable
Earnings pre-announcement: substantial increase
Data type applied in the earnings pre-announcement: interval number
||||||||||
|-|-|-|-|-|-|-|-|-|
||From the beginning to the end termof next report|||The same periodlast year|variation(increase or decrease)||||
|Expected accumulated netprofits(ten thousandRMB)|38,850||41,440|25,899.27|increase|50%||60%|
|||--|||||--||
|basic earns per share|0.38|--|0.41|0.25|increase|52%|--|64%|
|Explanation for earningspre-announcement|1、The pre-announcement has not been audited by CPA in advance;2、The main reason of substantial increase of earnings is due to the stable increase of mainbusiness of Company. The increase of investment income also makes great contribution to theincrease of earnings. The business of high pressure common rail of the enterprise invested byCompany is expected to increase rapidly arising from the enforcement of emission regulationrelated to national standard Ⅳ. Accordingly, the investment income from the above-mentionedenterprise shall have a substantial increase.||||||||

VIII.Special purpose vehicle under the control of company
The company has no special purpose vehicle under the control of company
IX. Prospects on future development
The Company operates business in auto components industry, producing and selling fuel injection system product, auto post-processing system products and auto intake system products.
1. Industry Competition Structure and Growing Trend
Commercial vehicles market shows a recovery growth in 2013 after two-year earlier adjustment; affected by national macroeconomic environment, policy regulations and the process of industrialization, steady progress of urbanization in particular, market of commercial vehicles remain stable as a whole;
With the promotion and execution of National IV Emission Standard on a step-by-step basis, the technical capability of core components for commercial vehicles will be effectively increased, which is beneficial to the fast development of common rail system and aftertreatment products, the industry will face a differentiation.
2. Operation plan for year of 2014
More intense competition and challenge emerged forChina’s automotive industry in year of 2014. In the presence of update-schedule and new changes in automotive market, the Company, continues to focus on the goals of creating a leader with core components of the automotive (energetic) concerned in China, decision-making scientifically with precision management to promote the industrial restructuring; accelerate product structure optimization, rapidly manufacturing products and developing market advantage in stage of National IV, and made breakthroughs in strategic restructuring. Making efforts to improve the quality and effectiveness of economic gains execute stable development of the enterprise and continuously update competitiveness of the Group. (1) Seize opportunity to rapid up development of industrial restructuring focus on the market. Strongly encourage
the industry of exhaust after treatment, make steady progress for fuel system industry and rapidly promote the
industry of supercharger.
(2) Continuously improve management of quality, increase quality guarantee and ability to control in process continually.
(3) Perfect risk control system, strengthen the financial controlling. Reinforce budget control, respond quickly in changes of the operation environment through well-defined costs structure and break-even point, guarantee a continuously improvement in economic benefit for the Group.
(4) Carry out construction of major projects of the Group, adjust industrial layout and improve management standards. Guarantee a smooth implementation of relocation for Weifu Industry Park; trying to complete the framework construction of the main parts of factory houses of Weifu Leader Project; guarantee officially production of the Phase I project of ERP System as well as the start of Phase II project.
(5) Implement core talent strategy plans, continuous enhance efficiency of the staff and quality. Completes the term program of human resources, perfect core talent construction system of the Group.
3. Development strategy
To actively develop fuel injection system products, auto post-processing system products and engine intake system (supercharger) meeting the requirements of the national energy-saving and emission-reduction regulations. To hold independent development and external cooperation as the basic principles to realize future development strategy. To consolidate foundation, improve quality, expand market, strengthen actions and control risks based on the working principles of―pursuit for practice andefficiency‖. Manage to realize the target of being the leader in domestic automobile (power engineering) core components field.
4. Risk for year of 2014
The macroeconomic environment in and out of China, automotive industry policy and execution of the National IV Emission Standards will makes a large impact on development of the Company.
X. Explanation of the Board of Directors on the “Qualified Opinion” of the report made by the CPAs
Not applicable
XI.Explanation on changes of accounting policy, accounting estimation and settlement method compared with the lastyear’s financial report
Compared with lastyear’s financial report, accounting policy, accounting estimation and settlement method has no changes. XII. Particular about major accounting errors correction that needs retroactive re-statement in reporting period
No major accounting errors correction occurred in reporting period.
XIII. Compare with lastyear’s financial report; explain changes in consolidationstatement’s scope
One enterprise included in the consolidation scope from a year earlier.
According to the equity transfer agreement singed between the Company and Autocam Corporation, the one
percent equity of Weifu Autocam, hold by Autocam Corporation, was transferred to the Company; capital contributed by the Company accounted for 51 percent of the register capital of Weifu Autocam, thus comes to the controlling subsidiary of the Company. Weifu Autocam included in consolidation financial scope of the Company since being subsidiary of the Company.
XIV. Profit and dividend distribution
Establishment, implementation or adjustment of profit distribution policy especially the cash dividend policy during the reporting period
√Applicable□Not applicable
In accordance with the―Notice on Further Implementation of Relevant Matters of Cash Dividend for ListedCompany‖ from CSRC and―Notice on Further Implementation of Relevant Requirement of Cash Dividend for ListedCompany‖ from Jiangsu Securities Regulatory Bureau, and according to actual circumstance of the Company, amendment of part of the clause of―Article ofAssociation‖ was deliberated and approved in 2nd extraordinary general meeting of 2012 held dated 27 August 2012. (Found more in―Resolution Notice of 2nd extraordinary general meeting of2012‖ released on Juchao Website dated 28 August 2012). During the reporting period, profit distribution plan of the Company is strictly in line with the regulations of cash dividend policy regulated in―Article ofAssociation‖, fully listened to the opinions from the independent directors and minority investors, safeguarded the lawful interest of minority shareholders.
|||
|-|-|
|Special explanation on cash dividend policy||
|Satisfy regulations of General Meeting or requirement of Article of Association (Y/N):|Y|
|Well-defined and clearly dividend standards and proportion (Y/N):|Y|
|Completed relevant decision-making process and mechanism (Y/N):|Y|
|Independent directors perform duties completely and play a proper role (Y/N):|Y|
|Minority shareholders have opportunity to express opinions and demands totally and their legal rights are fully||
||Y|
|protected (Y/N):||
||Not|
|Condition and procedures are compliance and transparent while the cash bonus policy adjusted or changed (Y/N):||
||applicable|

 The profit distribution plan and capitalization of capital reserve plan of the Company for the last three years (reporting period included)
The profit distribution plan for 2011: based on the new total share capital of 680,133,995 shares, distribute cash dividend of RMB3.00 (tax included) for every 10 shares, and no capitalization of capital reserve. The plan has been implemented completely in July 2012.
The profit distribution plan for 2012: based on the total share capital of 680,133,995 shares as at the end of 2012, distribute cash dividend of RMB3.00 (tax included) for every 10 shares, 5 shares bonus issued (tax included) and no capitalization of capital reserve. The plan has been implemented completely in July 2013.
The profit distribution plan for 2013: based on the total share capital of 1,020,200,992 shares as at the end of 2013, distribute cash dividend of RMB3.00 (tax included) for every 10 shares, and no capitalization of capital reserve. Cash dividend in latest three years
In RMB
|||||
|-|-|-|-|
|||Net profit attributable to shareholders|Ratio in net profit attributable to shareholders of|
|Year for bonus|Amount for cash bonus|||
|||of listed company in consolidation|listed company contained in consolidation|
|shares|(tax included)|||
|||statement for bonus year|statement (%)|
|2013|306,060,297.60|1,108,221,450.83|27.62%|
|2012|204,040,198.50|889,326,939.46|22.94%|
|2011|204,040,198.50|1,204,617,075.56|16.94%|

The Company gains profits in reporting period and the retained profit of parent company is positive but no plan of cash dividend
proposed
□ Applicable√ Not applicable
XV. Profit distribution plan and capitalizing of common reserves plan for the Period
|||
|-|-|
|Bonus shares for every 10-share (Share)|0|
|Dividends for every 10-share (RMB) (Tax included)|3.00|
|Equity base of distribution plan (Share)|1,020,200,992|
|Total cash dividend(RMB) (Tax included)|306,060,297.60|
|Distributable profits (RMB)|3,013,207,193.32|
|Ratio of cash dividend in total profit distribution (%)|100%|
|Cash dividend policy:||
|Other||
|Detail explanation on profit distribution or capitalization from capital public reserve||
|The profit distribution plan for 2013: based on the total share capital of 1,020,200,992 shares as at the end of 2013, distribute cash||
|dividend of RMB3.00 (tax included) for every 10 shares, and no capitalization of capital reserve.||

XVI. Social responsibility
More details of the company―social responsibility report2013‖ could be found in Juchao Website, the identifiable information disclosure website by Shenzhen Stock Exchange. (www.cninfo.com.cn)
The listed company and subsidiaries is in the range of heavy pollution industry that regulated by State environment protection departments
□Yes√ No□Not applicable
The listed company and subsidiaries owes other major social safety issues
□Yes√ No□Not applicable
Administrative penalty occurred in reporting period
□Yes√ No□Not applicable
XVII.In the report period, reception of research, communication and interview
|||||||
|-|-|-|-|-|-|
||||||Contents discussed and material|
|Time|Place|Way|Type|Reception||
||||||provided|
||Office of the|Telephone|Institution|Institution||
|2013-03-28|||||Annual report|
||Board|communication||||
||Scene of the||Institution|Institution||
||||||Implementation of Standard IV and|
|2013-05-23|shareholders’|Spot research||||
||||||views on market in 2013|
||general meeting|||||
||||Institution|Teleconference, institutional|The performance communication|
||Office of the|Telephone||||
|2013-08-27||||investors, the largest online|meeting of Semi-annual Report of|
||Board|communication||||
|||||of meeting up to 81 people|the Company|
||||Institution|Huatai Securities industry||
||||||Communication and exchange of|
|2013-08-28|Office of the|Spot research||researcher Yao Hongguang,|Semi-annual Report of the Company|
||Board|||Ding Yunbo and other 6||
||||||and the future development|
|||||people||
||||||Basic condition of the Company,|
|2013-1-1 to|Office of the|Telephone||||
||||Individual|Public investor|implementation of Standard IV and|
|2013-12-31|Board|communication||||
||||||views on market in 2013|
||||||The Company answered the question|
||||||for investors online through the|
|2013-1-1 to|Office of the|||||
|||Written inquiry|Individual|Public investor|investor relations interactive|
|2013-12-31|Board|||||
||||||platform(http://irm.p5w.net/dqhd/sic|
||||||huan/)|

Section V. Important Events
I. Significant lawsuits and arbitrations of the Company
□ Applicable√ Not applicable
No lawsuit or arbitration of the company in the annual.
II.Questioned from media
□ Applicable√ Not applicable
No media questioned for the Company in reporting period
III. Non-operational fund occupation of the listed company from controlling shareholder and its related parties
In 10 thousand Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||Amount|Total|||||
||||||||||Date for|
|Shareholder|||Amount at|newly-incre|amount||Estimated|Estimated||
|or related|Occupation|Reasons|period-begi|ased in|repaid in|Amount at|repayment|repaid|payment|
||date|||||period-end|||estimated|
|person|||n|reporting|reporting||way|amount||
|||||period|period||||(month)|
|Total|||0|0|0|0|--|0|--|
|Ratio of total amount at period-end in||||||||||
||||0%|||||||
|net assets at period-end (%)||||||||||

IV. Bankruptcy reorganization
No bankruptcy reorganization of the Company
V.Trade of assets
1. Purchase of assets
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||Ratio of net|||||
|The other party||Purchase|Progress|Impact on|Impact on|profit|Related|The related|||
||Assets|||operation of the|gains/losses of|contributed to||relationship(appl|Date of||
|of transaction or||price(10|(Note 2)||||transaction or|||Index of disclosure|
||purchased|||Company (Note|the Company|listed company||icable for related|disclosure||
|final controller||thousand Yuan)|||||not||||
|||||3)|(Note 4)|in total net profit||transaction)|||
|||||||(%)|||||
||||||Enlarge||||||
|||||In favor of|||||||
|American|1% equity of||Ownership has|improving the|operation||||||
||||||volume and||||||
|Autocam Co.,|Weifu Autocam|140.17|transferred in|manufacture|||No|||Not applicable|
||||||improve the||||||
|Ltd.|hold||total|standards of|||||||
||||||performance||||||
|||||auto parts|||||||
||||||standards||||||
||Land assets of||||||||||
|||||||||||―Part of the land|
||industry group||||||||||
|||||||||||assets of largest|
||(104,378.3||||||||||
|||||To solve|To enhance the|||||shareholder transfer|
||s.q.m) locates at||||||||||
|Wuxi Industry|||Relevant|longstanding|independence|||||by wholly-owned|
||No.|||||||Substantial|||
|Development||5,125|formalities still|related|and integrity of||Yes||2013-12-12|subsidiary and|
||88,Huichang|||||||shareholder|||
|Group Co., Ltd.|||under procedure|tr ansaction|the assets of the|||||related transaction‖|
||Road, Chang’an||||||||||
|||||problems|Company|||||(Notice No.:|
||Street, Huishan||||||||||
|||||||||||2013-027) released|
||District, Wuxi||||||||||
|||||||||||on Juchao Website|
||City||||||||||

2. Sales of assets
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||Net profitcontributed to the||Ratio of net|||The related|||||
|||||||profit||||||||
|The other|||Trading|||contributed||||Assets rights|Credit and|||
|party of||||listed Company|Impact on|by the sold||Related|relationship(|concerned|liability|||
||Assets|Sales|price (in 10||||Pricing|||||Date of|Index of|
|transaction||||from the begin of|Company(N|assets for||transaction|applicable|transferred|concerned|||
||sold|date|thousand||||principal|||||disclosure|disclosure|
|or final||||the reporting to|ote3)|listed||or not|for related|ownership|shifted fully|||
||||Yuan)|||||||||||
|controller||||the sales date(in 10thousand Yuan)||company in|||transaction)|fully or not|or not|||
|||||||total profit||||||||
|||||||(%)||||||||

3. Enterprise merger
VI.Implementation of thecompany’s equity incentive and the effects
No equity incentive plan formulated and implemented by the Company.
VII. Significant related transaction
1. Related transaction connected to routine operations
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Proportion|||||
|||||||Related|||Similar|||
||||||||in the|Related||||
|||Related|Related||Related|transaction|||trading|||
|Related||||Pricing|||amount of|transaction||Date of|Index of|
||Related relationship|transaction|transaction||transaction|amount (in 10|||market|||
|transaction parties||||principal|||the same|settlement||disclosure|disclosure|
|||type|content||price|thousand|||price|||
||||||||transaction|mode||||
|||||||Yuan)|(%)||available|||
|Wuxi Weifu Precision||Procurement of|Procureme|||||||2013-03-2|‖Prediction|
|||||||||According to||||
|Machinery|Associated company|goods or labor|nt of|Market price||7,435.12|2.31%|||8|of Daily|
|||||||||the contract||||
|Manufacturing Co., Ltd.||service|goods||||||||Related|
||Associated company,||||||||||Transaction|
||controlling subsidiary|Procurement of|Procureme|||||According to|||for year of|
|Bosch Diesel System||goods or labor|nt of|Market price||20,237.51|6.3%||||2013‖ and|
||of German Bosch|||||||the contract||||
|||service|goods||||||||―Resolution|
||Company|||||||||||
||||||||||||Notice of|
|Wuxi Weifu||Procurement of|Procureme|||||||||
||Joint venture of Weifu|||||||According to|||Annual|
|Environment Protection||goods or labor|nt of|Market price||57,068.57|17.76%||||Shareholder|
||Leader|||||||the contract||||
|Catalyst Co.,Ltd.||service|goods||||||||s General|
||Joint venture at last year|Procurement of|Procureme||||||||Meeting of|
|||||||||According to||||
|Weifu Autocam|and from February to|goods or labor|nt of|Market price||1,062.05|0.33%||||2012‖|
|||||||||the contract|||published on|
||June of this period|service|goods|||||||||
||||||||||||Juchao|
||second largest|Procurement of|Procureme|||||||||
|German Bosch||||||||According to|||Website|
||shareholder of the|goods or labor|nt of|Market price||7,334.22|2.28%|||||
|Company||||||||the contract||||
||Company|service|goods|||||||||
|Wuxi Weifu Precision||||||||||||
||||Sales of|||||According to||||
|Machinery|Associated company|Sales of goods||Market price||1,861.53|0.33%|||||
||||goods|||||the contract||||
|Manufacturing Co., Ltd.||||||||||||
||Associated company,|||||||||||
|Bosch Diesel System|controlling subsidiary|Sales of goods|Sales of|Market price||60,133.64|10.76%|According to||||
||of German Bosch||goods|||||the contract||||
||Company|||||||||||
|Wuxi Weifu||||||||||||
||Joint venture of Weifu||Sales of|||||According to||||
|Environment Protection||Sales of goods||Market price||1,716.31|0.31%|||||
||Leader||goods|||||the contract||||
|Catalyst Co.,Ltd.||||||||||||
||Joint venture at last year||Sales of|||||According to||||
|Weifu Autocam||Sales of goods||Market price||210.35|0.04%|||||
||and from February to||goods|||||the contract||||

|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||June of this period|||||||||||
||Associated company,|Other||||||||||
||||Technolog|||||||||
|Bosch Diesel System|controlling subsidiary||y service|||503.94|0.09%|According to||||
||of German Bosch|||||||the contract||||
||Company||payable|||||||||
|Wuxi Weifu||Other||||||||||
||Joint venture of Weifu||Rental|||||According to||||
|Environment Protection||||||206.16|0.04%|||||
||Leader||receivable|||||the contract||||
|Catalyst Co.,Ltd.||||||||||||
||Associated company,|Other||||||||||
||||Purchase|||||||||
|Bosch Diesel System|controlling subsidiary||of fixed|||9.64|0%|According to||||
||of German Bosch|||||||the contract||||
||||assets|||||||||
||Company|||||||||||
|||Other|Land and|||||||||
|Wuxi Industry Group|Substantial shareholder||trademark|||432.32|0.08%|According to||||
||of the Company||fee|||||the contract||||
||||payable|||||||||
||second largest||Technolog|||||||||
|German Bosch||||||||According to||||
||shareholder of the|Other|y service|||1,645.82|0.29%|||||
|Company||||||||the contract||||
||Company||payable|||||||||
|Total||||--|--|159,857.18|--|--|--|--|--|
|||||The above mentioned related transactions are the necessary trading which closely concerned with daily||||||||
|Necessity and sustainable of related transaction as well as reasons of related||||operation of the Company, Board of the Company guarantee the above mentioned exercising in a fair value||||||||
|transaction with related parties(not with other marketing dealers)||||pricing and reasonable payment/receive condition from point of protecting interest of investors, no interest||||||||
|||||of the listed company injured.||||||||
|Influence on independence of listed company from related transaction||||Shows no influence on independence of the Company||||||||
|Report the actual implementation of the normal related transactions which were||||The total amount from daily related transaction in reporting period still in the predicted amount that||||||||
|projected about their total amount by types during the reporting period(if||||approved in Annual Shareholders’ General Meeting of 2012, the predicted amount of daily related||||||||
|applicable)||||transactions for year of 2013 at year-begin amounting as RMB 2,294,500,000 in total.||||||||

2. Related transaction incurred by purchase or sales of assets
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Income|||
||||||Book value of|Assessment|Market fair|Transfer||from|||
|||Type of|Content of||||||Clearing form|assets|||
|Related|Relati|||Pricing|assets transfer|value of assets|value (10|price (10|||Disclosure||
|||related|related||||||for related|transfer||Index of disclosure|
|party|onship|||principle|(10 thousand|transfer (10|thousand|thousand|||date||
|||transaction|transaction||||||transaction|(10|||
||||||Yuan)|thousand Yuan)|Yuan)|Yuan)|||||
|||||||||||thousand|||
|||||||||||Yuan)|||
|Wuxi|Substa|Land|Land assets of|||||||||―Part of the land assets|
|||||Appraisal|||||According to||||
|Industry|ntial|assets|industry group||2,399.74|5,125|5,125|5,125|||2013-12-12|of largest shareholder|
|||||value|||||agreement||||
|Develop|shareh|transfer|(104,378.3|||||||||transfer by|

||||||
|-|-|-|-|-|
|ment|older|s.q.m) locates||wholly-owned|
|Group||at No.||subsidiary and related|
|Co., Ltd.||88,Huichang||transaction‖ (Notice|
|||Road,||No.: 2013-027) released|
|||Chang’an||on Juchao Website|
|||Street,|||
|||Huishan|||
|||District, Wuxi|||
|||City|||
|Reason of major difference between the|||||
|transfer price and book value or assessed|||The purchase of the land is occurred earlier, and the real estate market price rose faster in recent years.||
|value(if applicable)|||||
|Influence on the operation results and|||To solve longstanding problems and related transactions of big shareholders industrial group, and to enhance the independence and integrity of||
|financial status of the Company|||the assets of the Company||

3. Significant related transaction from jointly investment outside
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Main business||Total assets of invested|Net assets of invested|Net profit of invested|
|Same||Pricing|||Register capital of||||
||Relationship||Enterprise invested|of invested||enterprise(10 thousand|enterprise(10 thousand|enterprise(10 thousand|
|investors||principle|||invested enterprise||||
|||||enterprise||Yuan)|Yuan)|Yuan)|

 4. Credits and liability of related party
Whether have non-operation related liabilities and credits relations or not
□Yes√No
|||||||||
|-|-|-|-|-|-|-|-|
|Related|||Reasons for|Whether has non-operation|Balance at period-begin (10|Amount in this period(10|Balance at period-end (10|
||Relationship|Type||||||
|party|||occurring|fund occupation or not|thousand Yuan)|thousand Yuan)|thousand Yuan)|

 5. Other significant related transactions
Nil
Inquiry of disclosure website for relevant interim reports of material related transaction
||||
|-|-|-|
|Notice name|Dated for disclosed|Website for interim report disclosed|

VIII. Significant contracts and its implementation
1. Trusteeship, contracting and lease
(1) Trusteeship
Explanation on trust
Not applicable
Items generated over10% gains/losses in total profit in reporting period for the Company
□ Applicable√ Not applicable
(2) Contract
Explanation on contract
Not applicable
Items generated over10% gains/losses in total profit in reporting period for the Company
□ Applicable√ Not applicable
(3) Lease
Explanation on lease
Not applicable
Items generated over10% gains/losses in total profit in reporting period for the Company
□ Applicable√ Not applicable
2. Guarantees
In 10 thousand Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|Particulars about the external guarantee of the Company (Barring the guarantee for the controlling subsidiaries)|||||||||
||Related||Actual date of||||||
||||||||Complete|Guarantee|
||Announcem||happening||||||
|Name of the||Guarantee||Actual|Guarantee|Guarantee|implement|for related|
||ent||(Date of||||||
|Company guaranteed||limit||guarantee limit|type|term|ation or|party (Yes|
||disclosure||signing||||||
||||||||not|or no)|
||date||agreement)||||||
|Guarantee of the Company for the subsidiaries|||||||||
||Related||Actual date of||||||
||||||||Complete|Guarantee|
||Announcem||happening||||||
|Name of the||Guarantee||Actual|Guarantee|Guarantee|implement|for related|
||ent||(Date of||||||
|Company guaranteed||limit||guarantee limit|type|term|ation or|party (Yes|
||disclosure||signing||||||
||||||||not|or no)|
||date||agreement)||||||
|Ningbo Tianli|||||||||
||||||Joint liability||||
|Turbocharging|2014-01-17|6,000|2013-12-24|6,000||3 years|No|No|
||||||guaranty||||
|Technology Co., Ltd.|||||||||
|||||Total amount of actual|||||
|Total amount of approving|||||||||
|||||occurred guarantee for|||||
|guarantee for subsidiaries in||25,000||||6,000|||
|||||subsidiaries in report period|||||
|report period (B1)|||||||||
|||||(B2)|||||
|||||Total balance of actual|||||
|Total amount of approved|||||||||
|||||guarantee for subsidiaries at|||||
|guarantee for subsidiaries at the||25,000||||6,000|||
|||||the end of reporting period|||||
|end of reporting period (B3)|||||||||
|||||(B4)|||||
|Total amount of guarantee of the Company( total of two abovementioned guarantee)|||||||||
|Total amount of approving||||Total amount of actual|||||
|guarantee in report period||25,000||occurred guarantee in report||6,000|||
|(A1+B1)||||period (A2+B2)|||||
|Total amount of approved||25,000||Total balance of actual||6,000|||

|||
|-|-|
|guarantee at the end of reportperiod (A3+B3)|guarantee at the end of report|
||period (A4+B4)|
|The proportion of the total amount of actually guarantee in the||
||0.62%|
|net assets of the Company (that is A4+ B4)(%)||
|Including:||
|Amount of guarantee for shareholders, actual controller and its|0|
|related parties(C)||
|The debts guarantee amount provided for the guaranteed parties||
||0|
|whose assets-liability ratio exceed 70% directly or indirectly(D)||
|Proportion of total amount of guarantee in net assets of the||
||0|
|Company exceed 50%(E)||
|Total amount of the aforesaid three guarantees(C+D+E)|0|

 Explanation on guarantee with composite way
(1) Guarantee provided against regulations
In 10 thousand Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||Amount|||||
|||||||guarantee|||||
||||Ratio in||||Ratio in||||
||Relationsh|Amount||||against||||Predicted|
|Guarantee|ip with|guarantee|net assets|Guarantee|Guarantee|regulation|net assets|Predicted|Predictedamountrelieve|date|
||||at||||at|methods to|||
|name|listed|against||type|term|ended||||relieve(mo|
||||period-end||||period-end|relieve|||
||company|regulation||||before||||nth)|
||||(%)||||(%)||||
|||||||annual|||||
|||||||report|||||
|Total||0|0%|--|--|0|0%|--|--|--|

 3. Other significant contract
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Name ofcounterpart||Book|Appraisal||Base date||||||
||||value of|value for||||||||
||||amount|assets||||||||
||||involved|involved||||Trading|Whether||Implemen|
|Companyenteredinto acontract|||||Appraisal|of assets||||||
||||in|in||||price (in|constitute|Related|tation|
|||Date of|||agency (i|f evaluatio|Pricing|||||
||||contract|contract(i||||10|related|relationsh|ended as|
|||contract|||applicable|n (if|principle|||||
||||(in 10|n 10||||thousand|transactio|ip|reporting|
||||||)|applicable||||||
||||thousand|thousand||)||Yuan)|n or not||period|
||||Yuan) (if|Yuan) (if||||||||
||||applicable|applicable||||||||
||||)|)||||||||

4. Other significant transaction
Nil
IX. Implementation of commitments
1. Commitments from the Company or shareholders (with over5% shares held) occurred in reporting period or occurred in previous period but continued to this period
|||||||
|-|-|-|-|-|-|
|Commitm|Commitm||Dated for|Commitment||
|||Contents|||Implementation|
|ents|ent party||commitment|term||
|||In order to promote the listed company’s steady and healthy||||
||Wuxi|||||
||Industry|development, fully mobilize senior executives so as to ensure|||Implemented|
||Developm|to combine the interests of the governance and shareholders|2006-04-05||after related|
|||of the Company, Weifu Industry Group committed: after||||
||ent Group||||policy released|
|||Weifu High-tech finishing Share Merger Reform, under||||
||Co., Ltd.|||||
|||related regulations of the state and Wuxi government in terms||||

|||||
|-|-|-|-|
|||of governance encouragement system of listed company, the||
|||Group would the stock incentive plan for management level||
|||of Weifu High-tech.||
|Commitments inreport ofacquisitionor equitychange||||
|Commitments inassetsreorganization||||
|Commitments ininitialpublicoffering orrefinancing|Wuxi|||
||Industry|||
|||The privately offering of the Company totally issue||
||Developm|||
|||112,858,000 A-shares to substantial shareholder Wuxi||
||ent Group|||
|||Industry Group and foreign strategy investor ROBERT||
||Co., Ltd.||Implementing|
|||BOSCH GMBH. The above said shares are listed for trading||
||and|in Shenzhen Stock Exchange since 29 February 2012 with||
||ROBERT|||
|||36-month restriction||
||BOSCH|||
||GMBH|||
|othercommitments tominorityshareholders of theCompany||||
|Completed||||
|on time or|Yes|||
|not||||
|Detail||||
|reasons for||||
|un-comple||||
|ment and||||
||Not-applicable|||
|further||||
|plan(if||||
|applicable||||
|)||||

2. Concerning assts or project of the Company, which has profit forecast, and reporting period still in forecasting period, explain reasons of reaching the original profit forecast
|||||||||
|-|-|-|-|-|-|-|-|
||||Forecast|Actual|Reasons failureto reachedforecast (ifapplicable)|||
|Assets or||||||Disclosure date|Index of|
||Date starting|Date ended for|performance|performance||||
|project owes||||||for original|original|
||for forecast|forecast|currently (in 10|currently (in 10||||
|profit forecast||||||forecast|forecast|
||||thousand Yuan)|thousand Yuan)||||

X. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
|||
|-|-|
|Name of domestic accounting firm|Jiangsu Gongzheng Tianye CPA Co., Ltd. (LLP)|
|Remuneration for domestic accounting firm (in 10 thousand Yuan)|150|
|Continuous life of auditing service for foreign accounting firm|22|
|Name of domestic CPA|Bo Lingjing, Liu Darong|

Whether re-appointed accounting firms in this period or not
□ Yes√ No
Appointment of internal control auditing accounting firm, financial consultant or sponsor
√Applicable□Not applicable
Being deliberated in Annual Shareholders General Meeting of 2012, Jiangsu Gongzheng Tianye CPA Co., Ltd. was appointed as audit accounting firm for internal control of the Company for year of 2013. For supervision needs of targeted placement of 2012, Everbright Securities Co., Ltd. was the sponsor of the Company for duty of continues supervising.
XI. Explanation from Supervisory Committee and Independent Directors (if applicable) for “Qualified Opinion” from the CPA
Not applicable
XII. Penalty and rectification
||||||||
|-|-|-|-|-|-|-|
||||Type of||||
|||||Conclusion (if||Index of|
|Name|Type|Reasons|investigation and||Disclosure date||
|||||applicable)||disclosure|
||||penalty||||

Explanation on rectification
Particular about directors, supervisors, senior executives and shareholders with over5% shares held suspected illegal dealings of the stock of the Company and earnings of illegal dealings taken back by the Company that disclosed
□Applicable√ Not applicable
XIII. Suspension and delisting after disclosure of annual report
Not applicable
XIV. Other material events
Nil
XV. Significant events of the subsidiaries
Nil
XVI. Corporate bond offering
Nil
Section VI. Changes in Shares and Particulars about Shareholders I. Changes in Shares
In shares
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the Change||Increase/Decrease in the Change (+, -)|||||After the Change||
||||||Capitaliz|||||
||||New|||||||
|||Proportion||Bonus|ation of||||Proportion|
||Amount||shares|||Others|Subtotal|Amount||
|||(%)||shares|public||||(%)|
||||issued|||||||
||||||reserve|||||
|I. Restricted shares|156,186,216|22.96%||78,093,107|||78,093,107|234,279,323|22.96%|
|1. State holding|0|||||||0||
|2. State-owned corporate||||||||||
||79,311,999|11.66%||39,655,999|||39,655,999|118,967,998|11.66%|
|shares||||||||||
|3. Other domestic shares|33,817|0.01%||16,908|||16,908|50,725|0.01%|
|Including: domestic||||||||||
||0|||||||0||
|corporate shares||||||||||
|Domestic nature person||||||||||
||33,817|0.01%||16,908|||16,908|50,725|0.01%|
|shares||||||||||
|4. Foreign shares|76,840,400|11.3%||38,420,200|||38,420,200|115,260,600|11.3%|
|Including: Foreign||||||||||
||76,840,400|11.3%||38,420,200|||38,420,200|115,260,600|11.3%|
|corporate shares||||||||||
|Foreign nature person||||||||||
||0|||||||0||
|shares||||||||||
|II. Unrestricted shares|523,947,779|77.04%||261,973,890|||261,973,890|785,921,669|77.04%|
|1. RMB Ordinary shares|409,027,779|60.14%||204,513,890|||204,513,890|613,541,669|60.14%|
|2. Domestically listed||||||||||
||114,920,000|16.9%||57,460,000|||57,460,000|172,380,000|16.9%|
|foreign shares||||||||||
|3. Foreign listed foreign||||||||||
||0|||||||0||
|shares||||||||||
|4. Other|0|||||||0||
|III. Total shares|680,133,995|100%||340,066,997|||340,066,997|1,020,200,992|100%|

 Reasons for share changed
√Applicable□Not applicable
According to the equity distribution plan for 2012: based on the total share capital of 680,133,995 shares dated 31 December 2013, distributed 3 Yuan (tax included) bonus in cash for every 10-share hold by all shareholders, 5 shares bonus issued (tax included) and no capitalizing of common reserves carried out. The plan has been implemented completely in July 2013, the total share capital of the Company increased from 680,133,995 shares to 1,020,200,992 shares.
Approval of share changed
√Applicable□Not applicable
The equity distribution plan for 2012 was deliberated and approved by 2012 Annual General Meeting in May 2013.
Ownership transfer of share changed
√Applicable□Not applicable
The equity distribution plan for 2012 was deliberated and approved by 2012 Annual General Meeting in May 2013 and it has been implemented completely in July 2013.
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
During the reporting period, share capital increase to 1,020,200,992 shares from 680,133,995 shares due to the
implementation of annual interest distribution plan for year of 2012, thus, earnings per shares dilluted to RMB
1.09, and net assets per share attributable to common shareholders of Company dilluted to RMB 9.41.
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□Applicable√ Not applicable
II. Security offering and listing
1. Previous security offering in latest three years at period-end
||||||||
|-|-|-|-|-|-|-|
|Stock/derivative||Offering price|Circulation||Numbers approved|End of trading|
||Offering date|||Listing date|||
|securities||(or interest rate)|number||for trading|date|
|Stock|||||||
|Privately offering|2012-02-07|25.395|112,858,000|2012-02-29|112,858,000||
|Convertible corporate bond, separable-traded convertible bond and corporate bonds|||||||
|Warrant|||||||

Explanation on security offering in previous three years
On 21 January 2012, being approved by CSRC―Approval of Reply on Privately Offering of WEIFU HIGH-TECHNOLOGY GROUPCO.,LTD‖ (ZJXK[2012] No.109), the Company offering no more than 112,858,000 new shares in total.
The privately offering of the Company totally issue 112,858,000 shares to two objects with offering price of 25.395 Yuan per share for 2866.0289 million Yuan collected. The above said shares are listed for trading in Shenzhen Stock Exchange since 29 February 2012 with 36-month restriction; listing date predicted as 1 March 2015.
2. Explanation on changes of total shares and shareholders structure as well as changes of structure of assets and liability
According to the equity distribution plan for 2012: based on the total share capital of 680,133,995 shares dated 31 December 2013, distributed 3 Yuan (tax included) bonus in cash for every 10-share hold by all shareholders, 5 shares bonus issued (tax included) and no capitalizing of common reserves carried out. The plan has been implemented completely in July 2013, the total share capital of the Company increased from 680,133,995 shares to 1,020,200,992 shares. Shareholders structure and structure of assets and liability of the Company had no change.
3. Existing internal staff shares
||||
|-|-|-|
|Offering date of internal staff||Circulation numbers of internal staff|
||Offering price for internal staff shares(RMB)||
|shares||shares(Share)|

III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
In shares
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Total shareholders at the end of|||||Total shareholders ended as the 5th trading day||||||
|||34,932|||||||43,033||
|reporting period|||||before annual report disclosed||||||
|Particulars about shares held above 5% by shareholders or top 10 shareholding|||||||||||
||||Proport||||||Number of share||
|||||Total|||||||
||||ion of||||Amount of|Amount of|pledged/frozen||
|Full name of|Nature of|||shareholders||Changes in|||||
|Shareholders|shareholder||shares|at the end of||report period|restrict shares|un-restrict|State of||
||||held(%)||||held|shares held||Amount|
|||||report period|||||share||
|WUXI INDUSTRYDEVELOPMENTCROUP CO., LTD.|State-ownedlegal person||20%|204,059,398||68019799|118,967,998|85,091,400|||
|ROBERT BOSCH|Foreign legal||14%|142,841,400||47613800|115,260,600|27,580,800|||

|||||||||
|-|-|-|-|-|-|-|-|
|GMBH|person|||||||
|China ConstructionBank－FullgoalTianbo InnovationTheme StockSecurities InvestmentFund|Domesticnon-state-ownedlegal person|1.65%|16,800,000|-2429260||16,800,000||
|BBH BOS S/AFIDELITY FD -CHINA FOCUS FD|Foreign legalperson|1.58%|16,111,179|15691758||16,111,179||
|BOCOM—FullgoalTianyi Value SecurityInvestment Fund|Domesticnon-state-ownedlegal person|1.46%|14,944,463|7075973||14,944,463||
|China MerchantsBank Co.,Ltd.—Fullgoal TianheStable SelectedSecurities InvestmentFund|Domesticnon-state-ownedlegal person|1.15%|11,778,994|4496878||11,778,994||
|CCB—Yinhua CoreValue SelectedSecurities InvestmentFund|Domesticnon-state-ownedlegal person|1.08%|11,026,311|425912||11,026,311||
|NCI—Bonus—Individual Bonus-018L-FH002 Shen|Domesticnon-state-ownedlegal person|0.86%|8,723,489|3868971||8,723,489||
|National SocialSecurity Fund-108portfolio|Domesticnon-state-ownedlegal person|0.71%|7,249,714|7249714||7,249,714||
|ZhongrongInternational Trust –Huixin No.1Securities InvestmentSingle Fund Trust|Domesticnon-state-ownedlegal person|0.7%|7,153,378|7153378||7,153,378||
|||Among the top ten shareholders, the Company knew there has no associated relationship||||||
|||between Wuxi Industry Development Croup Co., Ltd., the first largest shareholder of the||||||
|||Company, and other shareholders; and they do not belong to the consistent actionist||||||
|Explanation on associated relationship||regulated by the Management Measure of Information Disclosure on Change of||||||
|among the aforesaid shareholders||Shareholding for Listed Company. Fullgoal Tianbo Innovation Theme Stock Securities||||||
|||Investment Fund, Fullgoal Tianyi Value Security Investment Fund and Fullgoal Tianhe||||||
|||Stable Selected Securities Investment Fund shares same fund manager –Fullgoal Fund||||||
|||Management Co., Ltd.||||||
|Particular about top ten shareholders with un-restrict shares held||||||||
||||||Amount of|Type of shares||
|Shareholders’ name|||||un-restricted shares|||
|||||||Type|Amount|
||||||held at period-end|||
|WUXI INDUSTRY DEVELOPMENT CROUP CO., LTD.|||||85,091,400|RMB common||
||||||||85,091,400|
|||||||shares||
|ROBERT BOSCH GMBH|||||27,580,800|Domestically||
||||||||27,580,800|
|||||||foreign shares||
|China Construction Bank－Fullgoal Tianbo Innovation Theme StockSecurities Investment Fund|||||16,800,000|RMB common||
||||||||16,800,000|
|||||||shares||
|BBH BOS S/A FIDELITY FD - CHINA FOCUS FD|||||16,111,179|Domestically||
||||||||16,111,179|
|||||||foreign shares||
|BOCOM—Fullgoal Tianyi Value Security Investment Fund|||||14,944,463|RMB common||
||||||||14,944,463|
|||||||shares||
|China Merchants Bank Co., Ltd.—Fullgoal Tianhe Stable SelectedSecurities Investment Fund|||||11,778,994|RMB common||
||||||||11,778,994|
|||||||shares||
|CCB—Yinhua Core Value Selected Securities Investment Fund|||||11,026,311|RMB common|11,026,311|

|||||
|-|-|-|-|
|||shares||
|NCI—Bonus—Individual Bonus -018L-FH002 Shen|8,723,489|RMB common||
||||8,723,489|
|||shares||
|National Social Security Fund-108 portfolio|7,249,714|RMB common||
||||7,249,714|
|||shares||
|Zhongrong International Trust – Huixin No.1 Securities InvestmentSingle Fund Trust|7,153,378|RMB common||
||||7,153,378|
|||shares||
||Among the top ten shareholders, the Company knew there|||
||has no associated relationship between Wuxi Industry|||
||Development Croup Co., Ltd., the first largest shareholder of|||
||the Company, and other shareholders; and they do not|||
|Expiation on associated relationship or consistent actors within the|belong to the consistent actionist regulated by the|||
||Management Measure of Information Disclosure on Change|||
|top 10 un-restrict shareholders and between top 10 un-restrict||||
||of Shareholding for Listed Company. Fullgoal Tianbo|||
|shareholders and top 10 shareholders||||
||Innovation Theme Stock Securities Investment Fund,|||
||Fullgoal Tianyi Value Security Investment Fund and|||
||Fullgoal Tianhe Stable Selected Securities Investment Fund|||
||shares same fund manager –Fullgoal Fund Management Co.,|||
||Ltd.|||

Whether has a buy-back agreement dealing in reporting period
□Yes√No
2. Controlling shareholder of the Company
Corporation
|||||||
|-|-|-|-|-|-|
||Legal|||||
|||Date|Organization|||
|Controlling shareholder|rep./person in|||Register capital|Main business|
|||established|code|||
||charge of unit|||||
||||||Authorizing the state-owned assets|
||||||operation within a certain areas,|
||||||investment management of significant|
|Wuxi Industry||||||
||Jiang|||RMB|project, investment and development|
|Development Group Co.,||1995-10-05|13600265-4|||
||Guoxiong|||3,589,379,241.46|of manufacturing and services and|
|Ltd.||||||
||||||venture capital in high-tech|
||||||achievement, entrust enterprise and|
||||||management|
|Operation result, financial||||||
|status, cash flow and future|Not applicable|||||
|development strategy etc.||||||
|Equity of other||||||
|domestic/foreign listed||||||
|company with share||||||
||Substantial shareholder of the Company—Industry Group is the controlling shareholder of Wuxi Taiji|||||
|controlling and share||||||
||Industry Co., Ltd. (stock code: 600667)|||||
|participation by controlling||||||
|shareholder in reporting||||||
|period||||||

Changes of controlling shareholder in reporting period
□ Applicable√ Not applicable
3. Actual controller of the Company
Corporation
|||||||
|-|-|-|-|-|-|
||Legal rep./person in|Date|Organization|Register|Main|
|Actual controller||||||
||charge of unit|established|code|capital|business|
|State-owned Assets Supervision & Administration||||||
|Commission of Wuxi Municipality of Jiangsu||||||
|Province||||||
|Operation result, financial status, cash flow and|Not applicable|||||

|||
|-|-|
|future development strategy etc.||
|Equity of other domestic/foreign listed company||
||Not applicable|
|controlled by actual controller in reporting period||

Changes of actual controllers reporting period
□Applicable√Not applicable
Property right and controlling relationship between the actual controller and the Company is as follow:
State-owned Assets Supervision& Administration
Commission of Wuxi Municipality of Jiangsu Province
100%
Wuxi Industry Development Croup Co., Ltd.
20%
Weifu High-Technology Group Co., Ltd.
Actual controller controlling the Company by entrust or other assets management
□Applicable√Not applicable
4. Particulars about other legal person shareholders with over10% shares held
|||||||
|-|-|-|-|-|-|
||||Organiz|||
|Corporate|Legal rep./person|Date||Register||
||||ation||Main business or management activity|
|shareholders|in charge of unit|established||capital||
||||code|||
||||||Development, manufacture and sales of automotive|
||||||equipment and engine equipment; engaged in|
||||||electro-technical, electronic technology, machinery|
|ROBERT|Heiko Carrie、|||EUR 1,200|manufacturing and optical system as well as produce|
|||1886-11-15||||
|BOSCH GMBH|Bettina Holzwarth|||million|iron, metal and plastic products and similar commodity.|
||||||The company engaged in vary trading business|
||||||concerned with its business scope and established|
||||||relevant company concerned with its business scope|

 IV. Share holding increasing plan proposed or implemented in reporting period from shareholder of the Company and its concerted action person
||||||||
|-|-|-|-|-|-|-|
||Shares holdingplans to increased|||||Disclosure dated|
|Shareholder/conc||Ratio of shares||Ratio of sharesactually increased(%)|||
||||Shares holding||Initial disclosure|for end of|
|erted action||plans to increased|||||
||||actually increased||date|shareholding|
|person||(%)|||||
|||||||increased|

 Explanation on others
Not applicable
Section VII. Particulars about Directors, Supervisors and Senior Executives and Employees
I. Changes of shares held by directors, supervisors and senior executives
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Increasing|Decreasing||
||||||||Shares|||Shares|
||||||Start dated|||shares held|shares held||
||Title|W o r k in g|Sex|Age|of office|End date of|held at|in this|in this|held at|
|Name||status||||office term|period-beg|||period-end|
||||||term|||period|period||
||||||||in (Share)|||(Share)|
|||||||||(Share)|(Share)||
|||Currently|||||||||
|Chen|Chairman||M|46|2012-03-07|2015-03-06|3,169|1,584||4,753|
|Xuejun||in office|||||||||
|Wang|Vice Chairman|Currently in|||||||||
||||M|47|2012-03-07|2015-03-06|521|260||781|
|Xiaodong|& GM|office|||||||||
|Rudolf||Currently in|||||||||
||Vice Chairman||M|56|2012-03-07|2015-03-06|||||
|Maier||office|||||||||
|Ge||Currently in|||||||||
||Director||M|59|2012-03-07|2015-03-06|25,468|12,734||38,202|
|Songping||office|||||||||
|Hua||Currently in|||||||||
||Director||F|49|2012-03-07|2015-03-06|||||
|Wanrong||office|||||||||
|Chen||Currently in|||||||||
||Director||M|52|2012-03-07|2015-03-06|||||
|Yudong||office|||||||||
||Director,||||||||||
||Deputy General||||||||||
|||Currently in|||||||||
|Ou Jianbin|Manager and||M|47|2012-03-07|2015-03-06|||||
|||office|||||||||
||financing||||||||||
||Charger||||||||||
||Independent|Currently in|||||||||
|Du Fangci|||M|69|2012-03-07|2015-03-06|||||
||Director|office|||||||||
||Independent|Currently in|||||||||
|Yu Xiaoli|||F|50|2012-03-07|2015-03-06|||||
||Director|office|||||||||
||Independent|Currently in|||||||||
|Xing Min|||M|59|2012-03-07|2015-03-06|||||
||Director|office|||||||||
|Zhang|Independent|Currently in|||||||||
||||M|49|2012-03-07|2015-03-06|||||
|Hongfa|Director|office|||||||||
||Chairman of the||||||||||
|Shi||Currently in|||||||||
||Supervisory||M|51|2012-03-07|2015-03-06|1,782|891||2,673|
|Xingyuan||office|||||||||
||Committee||||||||||
|Gao||Currently in|||||||||
||Supervisor||M|59|2012-03-07|2015-03-06|10,297|5,148||15,445|
|Guoyuan||office|||||||||
|||Currently in|||||||||
|Liu Jinjun|Supervisor||M|38|2012-03-07|2015-03-06|||||
|||office|||||||||
|Miu||Currently in|||||||||
||Deputy GM||M|50|2012-03-07|2015-03-06|||||
|Yuming||office|||||||||
|Wang||Currently in|||||||||
||Deputy GM||M|58|2012-03-07|2015-03-06|||||
|Yawei||office|||||||||
|Xu||Currently in|||||||||
||Deputy GM||M|42|2012-03-07|2015-03-06|2,000|1,000||3,000|
|Yunfeng||office|||||||||
|Zhou|Secretary of|Currently in|||||||||
||||M|50|2012-03-07|2015-03-06|2,377|1,188||3,565|
|Weixing|Board|office|||||||||
|Total|--|--|--|--|--|--|45,614|22,805|0|68,419|

II. Post-holding
Major working experience of directors, supervisors and senior executive at the present in latest five years
Mr. Chen Xuejun, born in May 1967, a university background and a senior economist. He worked for the Company in July of 1986. He has served as chairman of
4th
and
5th
Session of supervisory committee, deputy chairman of
6th
Session of the Board and General Manager of the Company. Now he serves as Director of Board of Industry Group, substantial shareholder of the Company and also is the Chairman of
7th
session of the Board and secretary of Party Committee.
Mr. Wang Xiaodong, born in November 1966, a university graduate, MBA and senior engineer. He worked in the Company in 1989 and has served successively as Division Chief of Products Development Department of the Company, deputy GM of Bosch Automotive Diesel System Co., Ltd. and supervisor of
6th
Session of Supervisory Committee of the Company. Now he serves as deputy chairman of
7th
session of the Board and GM of the Company.
Mr. Rudolf Maier, born in October 1957, a German citizenship with a doctor degree. He has served successively as chairman of commercial vehicle dept. diesel injection system, in German Bosch, chairman of German Bosch Diesel System China, deputy chairman of Bosch Automobile Diesel and Director of
5th
and
6th
Session of the Board. Now he serves as executive deputy chairman of technology research of German Bosch Diesel System and deputy Chairman of
7th
session of the Board.
Mr. Ou Jianbin, born in June 1966, a senior college graduated and an accountant. He worked for the Company in July 1987, and served as Director and deputy GM of Weifu Jinning, Deputy GM and GM of Weifu Leader. Now he serves as Director of
7th
session of the Board, standing deputy GM and CFO of the Company.
Mr. Ge Songping, born in November 1954, a senior college graduated and a senior accountant. He has served successively as deputy GM of Industry Group, substantial shareholder of the Company and secretary of discipline committee, Director of
5th
and
6th
Session of the Board. Now he serves as vice researcher of Industry Group, substantial shareholder of the Company and Director of
7th
session of the Board.
Ms. Hua Wanrong, born in September 1964, graduate from University and a senior accountant. She has served successively as director of investment development dept. of Industry Group, substantial shareholder of the Company; now she serves as director of financial management dept. of Industry Group and Director of
7th session of the Board of the Company.
Mr. Chen Yudong, born in September 1961, an America citizenship and a Doctor. He has served successively as senior deputy president of petrol system dept. of German Bosch, who in charge of business in mainland China, and also in charge of sales business of automobile products in China for German Bosch. Now he serves as President of Bosch (China) Investment Ltd. and Director of
7th
session of the Board of the Company.
Mr. Du Fangci, born in November 1944 and graduate from University, a senior engineer. He has served successively as Division Chief of former Automobile Section of Machine Building Industry Ministry and Division Chief of State Bureau of Machine Building Industry, independent director of
6th
Session of the Board. Now he serves as Consultant of China Association of Automobile Manufactures and Independent Director of
7th
session of the Board of the Company.
Ms. Yu Xiaoli, born in January 1963, doctor from Zhejiang University and a professor. She serves as teaching assistant and professor/deputy professor in Zhejiang University since 1985; and served as independent director of 6th
Session of the Board. Now she serves as Director of the institute of Zhejiang University Power Machinery and Vehicular Engineering Institute, Chairman of Zhejiang Bozong Automobile Technology Co., Ltd., Independent Director of Yinlun, Independent Director of Wanliyang and Independent Director of
7th
session of the Board of the Company. Mr. Xing Min, born in January 1954, graduate from University, MBA and a senior engineer. He has served successively as vice chief of Bureau of Retired Veteran Cadres of Machinery Dept,, secretary of Party Committee of Administration Division and deputy director, director of Labor Division, secretary of Party Committee of China National Heavy Machinery Corporation (CHMC), GM and secretary of Party Committee of China National
Machine Tools Corporation (CNMTC). Now he serves as vice chairman and secretary-general of China Internal
Combustion Engine Industry Association (CICEIA), Independent Director of Jinan Qingqi, and Independent Director of Yunyi Electric and Independent Director of
7th
session of the Board of the Company.
Mr. Zhang Hongfa, born in September 1964, graduate from University, a senior accountant. He has worked in Jiangsu Institute of Certified Public Accountants since 1998. Now he serves as deputy secretary and standing director of Association, member of Expert Consultative Committee of Jiangsu Procuratorate, special auditor of Jiangsu Audit Office, vice director of professional consultant committee and director of inspection committee of Jiangsu Institute of CPA, Independent Director of Jiangsu Hongbao, Independent Director of Wiscom, Independent Director of HopeRun Technology and Independent Director of
7th
session of the Board of the Company.
Mr. Shi Xingyua, born in May 1962, a postgraduate and senior engineer. He worked in the Company in July 1984. He has served successively as director of GM office, GM assistant and deputy GM of the Company as well as director of 5th
and
6th
session of the Board, deputy secretary of party committee and chairman of labor union of the Company. Now he serves as chairman of supervisory committee of
7th
session of the Board, deputy secretary of party committee and chairman of labor union of the Company.
Mr. Gao Guoyuan, born in March 1954, a senior college graduated, master degree and senior engineer. He worked for the Company in 1970. And has served successively as GM assistant and Director of
4th, 5th,
and
6th
Session of the Board and deputy GM of the Company. Now he serves as Supervisor of
7th
session of Supervisory Committee. Mr. Liu Jinjun, born in September 1975, graduates from University, a MSIE and engineer. He worked in the Company in August 1995. He has served successively as Manager ofH&R administrative and technology sales manager of Weifu Auto Diesel. Now he serves as director ofH&R and Supervisor of
7th
session of Supervisory Committee.
Mr. Miao Yuming, born in April 1963, a university background, MBA and senior engineer. He worked in the Company in August 1983, and successively served as /director of sales dept. of the Company, assistant GM and deputy GM of the Company. Now he serves as deputy GM of the Company and deputy GM of Bosch Automobile Diesel.
Mr. Wang Yawei, born in May 1955, postgraduate degree, chief senior engineer. He successively served as deputy chief of production research institution of the Company, chief designer of technology center, chief engineer of the Company and deputy GM as well as director of engineering technology institution. Now he serves as deputy GM and director of Engineering and Technology Research Institute of the Company.
Mr. Xu Yunfeng, born in November 1971, graduate from University, a Master and engineer. He worked in the Company in July 1994, and has successively served as vice director of product research institute of Technology Center of the Company, Manager, assistant GM and GM of sales dept. of Weifu Automobile Diesel. Now he serves as deputy GM of the Company.
Mr. Zhou Weixing, born in January 1963, graduate from University, a senior engineer. He worked in the Company in 1985. He successively served as representative of security affairs, director of security office and secretary of the 5th and
6th
Session of the Board. Now he serves as secretary of the Board of
7th
session of the Board.
Post-holding inshareholder’s unit
√Applicable□Not applicable
|||||||
|-|-|-|-|-|-|
|||||End date|Weather receiving|
|Name|Name of shareholder’s units|Position|Start dated of|of office|remuneration from|
||||office term|||
|||||term|shareholder’s units|
|Rudolf||Executive vice president of||||
||ROBERT BOSCH GMBH||2011-01-01||Yes|
|Maier||technology research of Diesel System||||
|Ge|Wuxi Industry Development|||||
|||Vice researchor|2011-12-01||Yes|
|Songping|Group Co., Ltd.|||||
|Hua|Wuxi Industry Development|Director of financial management||||
||||2011-12-01||Yes|
|Wanrong|Group Co., Ltd.|dept.||||
|Chen||||||
||Bosch (China) Investment Ltd.|President|2011-01-01||Yes|
|Yudong||||||

||||||
|-|-|-|-|-|
|Miu|Bosch Automobile Diesel||||
|||Deputy GM|2012-03-01|Yes|
|Yuming|System Co., Ltd||||

Post-holding in other unit
√Applicable□Not applicable
|||||||
|-|-|-|-|-|-|
||||||Weather|
||||Start dated||receiving|
|Name|Name of other units|Position|of office|End date of|remuneration|
|||||office term||
||||term||from other|
||||||units|
|Du Fangci|CAAM|Consultant|2012-04-01||Yes|
||Zhejiang University Power Machinery|||||
|Yu Xiaoli||Director|2000-01-01||Yes|
||and Vehicular Engineering Institute|||||
|Yu Xiaoli|Zhejiang Yinlun Machinery Co., Ltd.|Independent director|2011-07-21|2014-07-21|Yes|
|Yu Xiaoli|Zhejiang Wanliyang Transmission Co., Ltd.|Independent director|2011-09-01|2014-08-31|Yes|
||Zhejiang Bozong Automobile Technology|||||
|Yu Xiaoli||Chairman|2008-04-01||Yes|
||Co., Ltd.|||||
|Xing Min|CICEIA|Vice chairman and secretary|2 008-08-01||Yes|
|Xing Min|Jiangsu Yunyi Electric Co., Ltd.|Independent director|2013-05-15|2016-05-14|Yes|
|Xing Min|Jinan Qingqi Motorcycle Co., Ltd.|Independent director|2012-05-25|2015-05-24|Yes|
|Zhang|Jiangsu Institute of Certified Public|Vice secretary and standing||||
||||1998-06-01||Yes|
|Hongfa|Accountants|director||||
|Zhang||||||
||Jiangsu Hongbao Hardware Co., Ltd.|Independent director|2010-12-10|2014-03-31|Yes|
|Hongfa||||||
|Zhang||||||
||Wiscom System Co., Ltd.|Independent director|2013-04-22|2016-04-21|Yes|
|Hongfa||||||
|Zhang||||||
||HopeRun Technology Corporation|Independent director|2013-01-31|2016-01-30|Yes|
|Hongfa||||||
|Explanatio||||||
|n on||||||
|post-holdi|The aforesaid are the independent directors of the Company|||||
|ng in other||||||
|unit||||||

III. Remuneration for directors, supervisors and senior executives
Decision-making procedures, determination bases and actual payment of remunerations of directors, supervisors and senior management
Decision-making procedure: the remuneration and examination committee recommend the remuneration proposal in respect of directors, supervisors and senior management according to the Remuneration and Remuneration Incentive Examination Plan approved at general meeting based on the completion of annual major targets, and shall be submitted to the board for approval and implementation.
Determination bases: Remuneration and Remuneration Incentive Examination Plan approved at general meeting. Actual payment: the annual remuneration comprises of basic annual salary and performance-related remuneration. Basic annual salary is determined according to specific positions and performance-related remuneration is directly
related to economic benefits of the Company which is granted according to completion of each annual benefit
target.
Remuneration of directors, supervisors and senior management of the Company during the reporting period Remuneration for directors, supervisors and senior executives in reporting period
In 10 thousand Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|||||||Total||
||||||Total||Remuneration|
|||||||remuneration||
||||||remuneration||actually|
|Name|Title|Sex|Age|Post-holding status||obtained from||
||||||obtained from||obtained at|
||||||the Company|shareholder’s|period-end|
|||||||unit||
|Chen Xuejun|Chairman|M|46|Currently in office|62||62|
|Wang||||||||
||Vice Chairman, GM|M|47|Currently in office|62||62|
|Xiaodong||||||||
|Rudolf Maier|Vice Chairman|M|56|Currently in office||||
|Ge Songping|Director|M|59|Currently in office||||
|Hua Wanrong|Director|F|49|Currently in office||||
|Chen Yudong|Director|M|52|Currently in office||||
||Director, standing vice GM|||||||
|Ou Jianbin|and person in charge of|M|47|Currently in office|51||51|
||finance|||||||
|Du Fangci|Independent director|M|69|Currently in office|8.3||8.3|
|Yu Xiaoli|Independent director|F|50|Currently in office|8.3||8.3|
|Xing Min|Independent director|M|59|Currently in office|8.3||8.3|
|Zhang Hongfa|Independent director|M|49|Currently in office|8.3||8.3|
||Chairman of supervisory|||||||
|Shi Xingyuan||M|51|Currently in office|51||51|
||committee|||||||
|Gao Guoyuan|Supervisor|M|59|Currently in office|51||51|
|Liu Jinjun|Supervisor|M|38|Currently in office|32||32|
|Miu Yuming|Deputy GM|M|50|Currently in office||||
|Wang Yawei|Deputy GM|M|58|Currently in office|51||51|
|Xu Yunfeng|Deputy GM|M|42|Currently in office|51||51|
|Zhou Weixing|Secretary of the Board|M|50|Currently in office|30||30|
|Total|--|--|--|--|474.2|0|474.2|

 Delegated equity incentive for directors, supervisors and senior executives in reporting period
□ Applicable√ Not applicable
IV. Post-leaving and dismissals for directors, supervisors and senior executives
||||||
|-|-|-|-|-|
|Name|Title|Type|Date|Reasons|

V. Changes of core technology team or key technicians in reporting period (not including directors, supervisors and senior executives)
In reporting period, personnel, core technology team or key technicians (not including directors, supervisors and senior executives) who affects a lot in core competition of the Company has no changes.
VI. Particulars of workforce
1. Ended as 31 December 2013, the Company owes 5,179 person on-posts while 365 people leaved, the Company has no retired employees to bear the cost
Composition:
Staff composition Education composition
2. Remuneration policy and training program of employees:
(1) Remuneration policy: perfect the―Performance ManagementSystem‖ and―Management System of SalaryWelfare‖ of the Group, standard and well-defined the competency for vary department and every staffs, organized operation mechanism and performance remuneration management mode, promote the implementation of
performance and remuneration sytem in the Group.
(2) Trainning program of employees: push forward the establishment ofstaff’s career development, strengthen development channel mechanism, boost the mid-and-long term training as well as development for the talents, speed up the pace of talent system construction. The Company organized vary type of employee training irregularly to the demand of production development. Training methods are more modern and qualify charateristic needs of the employees, made the staff accept the training more effectively.
3. As at 31 December 2013, the labor force dispatched by the Company was 2521, with expenses of RMB 117.75 million.
Section VIII. Corporate governance
I. Brief introduction of corporate governance
During the reporting period, the Company earnestly implemented the Basic Internal Control Standards for Enterprise and its guidance in strict accordance to the requirements of the Company Law, Securities Law, Listing Rules of Shenzhen Stock Exchange as well as Guidance on Standard Operation of Listed Company on Main Board, continued to improve and enhance legal person governance structure and internal control system, thus to standardize its operation. There was no difference between the actual governance and requirements provided in relevant documents of the CSRC.
1. General Meeting: the Company convenes general meeting in a strict accordance to the Company Law, Rules of General Meeting of Listed Company, Listing Rules of Shenzhen Stock Exchange, the Articles of Association as well as Working Procedures of General Meeting. Voting is made by spot meeting and network votes. Lawyers are invited to attend the meetings and meeting minutes are well recorded. All the shareholders, especially minority shareholders, are equally treated and fully exercise their rights.
2. Relationship between the controlling shareholders and the Company: the Company is independent from its controlling shareholders in respect of personnel, assets and finance, with independent organs and businesses. The board, supervisory committee and operation management organ of the Company operate independently. Controlling shareholdersdon’t intervene in theCompany’s decisions and operating activities, whether directly or indirectly, without content from general meeting, anddon’t occupy theCompany’s capital for any non-operation purpose.
3. The Board: the directors can earnestly perform their duties according to the Listing Rules of Shenzhen Stock Exchange, the Articles of Association and the Working Procedures of the Board. They are familiar with related laws and rules, as well as the rights, obligations and duties for being a director. At present, the Board of the Company comprises of 11 directors, among which, 4 are independent directors which accounts for over one third of the board members. Number and constitution of the board accord with relevant laws and rules.
4. Performance of duties by independent directors: the independent directors can earnestly perform their duties, namely loyalty and diligence, according to the Articles of Association, the Working System of Independent Directors and Annual Work System of Independent Directors. They take active participation in meetings of the board and general meeting. Prior to the participation, they actively acquire the information needed for making decisions, aiming to protect the interests of the Company and shareholders, especially the minority shareholders. Independent directors have no objection in relation to the relevant issues of the Company.
5. The supervisory committee: the supervisors can perform their duties of supervision according to the Company Law, the Articles of Association and Working Procedures of the Supervisory Committee. At present, the supervisory committee of the Company comprises of 3 supervisors, among which, 2 are employee representative supervisors which accounts for over one third of the committee members. Number and constitution of the committee accord with relevant laws and rules. For consideration of the entire shareholders, the supervisory committee earnestly performs their duties with legal working procedures and high efficient operation. They supervise the lawfulness of directors and senior management on their duty performance, pay constant attention to information disclosure, issue opinions on legal operation, finance, application of raised proceeds, and fairness of
related transaction, objectivity and truthfulness of the audit report issued by accounting firm, and issue audit opinion on periodic reports of the Company.
6. Information Disclosure and investor relation management: the Company can disclose relevant information on truthful, accurate, complete, prompt and fair basis in strict accordance to the Listing Rules of Shenzhen Stock Exchange, Guidance on Standardized Operation of Listed Company on Main Board of Shenzhen Stock Exchange, the Articles of Association, Information Disclosure Management System, Insider Information and Insider Management System, Accounting System in Respect of Material Mistake in Annual Report Information Disclosure as well as Investor Relation Management System. Investor relation is well managed, with focus on good communication between the Company and investors.
7. Related transaction: independent directors issue independent opinions on occurred related transactions; the supervisory committee makes inspection and supervision on occurred related transaction. The related transaction of the Company is fair and reasonable, with legal decision-making procedures and objective pricing bases and fair transaction price, without harm to the interests of the Company and its shareholders, especially the minority shareholders. All material transactions are entered into with contracts.
8. Internal control: the Company further implements the Basic Internal Control Standards for Enterprise and its guidance, and establishes internal control system in headquarter and certain important subsidiaries. Aiming to improve the management, the Company optimized its working procedures, improved internal control system, and identified and controlled operation risks. As for the detail of―Self-evaluation report of internal control for year of2013‖, found in the information disclosure website Shenzhen Juchao Website (www.cninfo.com.cn) appointed by Shenzhen Stock Exchange
Is there any difference between corporate governance and the requirements of the Company Law and relevant regulations of the CSRC
□ Yes√ No
There is no difference between corporate governance and the requirements of the Company Law and relevant regulations of the CSRC
Progress of the special activity for corporate governance, establishment and implementation of insider information registration management system
During the reporting period, in strictly follow the new version of―Registration and Administration ofInsiders‖ (released on Juchao Website (www.cninfo.com.cn) dated 16 February 2012) and relevant regulation of―Regulation of Formulate the Registration and Administration of Insiders for ListedCompany‖ from CSRC, the Company do a good job in aspect of inside information confidential as well as the registration and filing over
|||
|-|-|
||No insiders of the Company made use of significant and sensitive information to trade|
|stock of the Company before information was disclosed in year of 2013. Also there was not occurrence of||
|punishment taken by regulatory authorities due to the implementation of insider registration management system||
|or on suspicion of insider trading.||

 stock of the Company against the regulations.
II. In the report period, the Company held annualshareholders’ general meeting and extraordinaryshareholders’ general meeting
1. AnnualShareholders’ General Meeting in the report period
|||||||
|-|-|-|-|-|-|
|Session||||||
|||||Date of||
|of|Date|Name of meeting motion|Situation||Index of disclosure|
|||||disclosure||
|meeting||||||
||||All have been|2013-05-2|(No.: 2013-014)|
|2012|2013-05-23|1. Report from the Board for year of 2012||||
||||deliberated|4|published on Juchao|

||||
|-|-|-|
|2. Report from Supervisory Committee for year of 20123. Annual Report of 2012 and Summary4. Financial Result Report for year of 20125. Profit Distribution Plan of 20126. Prediction of Total daily Related transaction for year of20137. Engagement of audit firms for financial report of 20138. Engagement of audit firms for internal control of 20139. Proposal of change the investment project with fundraised10. Proposal of revised the article of association of theCompany|and passed|Website(www.cninfo|
|||.com.cn)|

2. Extraordinaryshareholders’ general meeting in the report period
|||||||
|-|-|-|-|-|-|
|||Name of meeting||||
|Session of meeting|Date||Situation|Date of disclosure|Index of disclosure|
|||motion||||

III. Responsibility performance of independent directors in report period
1. The attending of independent directors to Board meetings andshareholders’ general meeting
||||||||
|-|-|-|-|-|-|-|
|The attending of independent directors|||||||
||Times of Board||||||
|||||||Whether absent|
||meeting||Times of|Times of|||
|Name of independent||Times of|||Times of|the Meeting for|
||supposed to||attending by|entrusted|||
|director||Presence|||Absence|the second time|
||attend in the||communication|presence|||
|||||||in a row or not|
||report period||||||
|Du Fangci|6|1|5|||No|
|Yu Xiaoli|6|1|5|||No|
|Xing Min|6|1|5|||No|
|Zhang Hongfa|6|1|5|||No|
|Times attending shareholders’ general|||||||
|||1|||||
|meeting from independent directors|||||||

Explanation of absent the Board Meeting for the second time in a row
2. Objection for relevant events from independent directors
Whether independent directors come up with objection aboutcompany’s relevant matters or not
□ Yes√ No
Independent directors has no objections for relevant events in reporting period
3. Other explanation about responsibility performance of independent directors
Whether the opinions from independent directors have been adopted or not
√Yes□ No
Independentdirectors’ explanation on adoption or not adoption of relevant recommendations of the Company
The independent directors earnestly performed their duties endowed by relevant laws, regulations, the Articles of
Association and independent director system pursuant to the Company Law, Opinions on Establishing
Independent Director System in Listed Company, the Articles of Association and relevant laws and regulations.
They take active participation in meetings of the board and general meeting. Prior to the participation, they
actively acquire the information needed for making decisions. They considered each proposal in meetings and actively joined discussion and offered their recommendations. They issued independent opinions on significant issues. Diligent, loyal and responsible were their attitude when performing their duties, so as to fully exercise their influences as independent directors. They protected the interests of the Company and shareholders. Independent directors have no objection in relation to the relevant issues of the Company.
IV. Performance of subordinate committees of the Board in reporting period
1. One meeting of Audit committee of the Board, deliberated the followed:―Financial Result Report of2012‖,―Annual Report of 2012 and itsSummary‖,―Conclusion Report of auditing for year of2012‖,―Engagement of audit institute for financial report of2013‖,―Engagement of audit institute for internal control of the Company of2013‖.
2. One meeting of remuneration and appraisal committee of the Board, deliberate―Remuneration evaluation and payment for senior executive of2012‖;
3. One meeting of strategy committee of the Board, deliberate―Operation target for year of2013‖
V. Works from Supervisory Committee
Whether the Company has risks or not in reporting period that found in supervisory activity from supervisory committee
□ Yes√ No
Supervisory committee has no objection about supervision events in reporting period
VI. Independence of the Company in aspect of business, personnel, assets, institute and finance relative to its controlling shareholder
During the reporting period, the Company continued to keep independent in business, personnel, asset, organ and finance, with complete set of business system and ability to conduct independent operation.
1. Business: the Company had independent production system, purchase and sale system and land use right. Industry property, trademark, non-patent technology and other intangible assets related to its production operation business were all owned by the Company. It was totally independent from controlling shareholders in business, with independent and complete business and ability to conduct business independently.
2. Personnel: the Company was independent in management of labor force, administration and salary. The general manager, deputy general manager, financial principal, marketing principal, secretary to the board and other senior management only took positions in the Company and received remuneration from the Company, and took no position in substantial shareholders. Directors and senior management of the Company were determined through legal procedures; no controlling shareholder intervened in engagement and dismissal of personnel which should be determined by the board and general meeting.
3. Asset: there was clear property relation between the Company and substantial shareholders. It had independent and complete production, supply and sales system. Industry property, trademark, non-patent technology and other intangible assets were all owned by the Company.
4. Organ: the Company had sound organ system and independent internal organs which were totally separated
with controlling shareholders. There was no subordinate relation and normal operation can be promised. The
Company set general meeting, the board and the supervisory committee and other decision-making and supervision organs. The production operation and administrative management (including labor force, finance, technology, etc) were totally independent from controlling shareholders. The office organ and production operation place were separated from controlling shareholders, without joint operation.
5. Finance: the Company set independent finance department, and established independent accounting calculation system and finance management system. It had independent bank account and paid tax independently.
VII. Horizontal Competition
No horizontal competitions exist in the Company, controlling shareholders and actual controllers
VIII. Appraisal and incentive mechanism for senior executives
Engagement, examination and incentives of senior management are made according to relevant provisions in the Company Law and the Articles of Association. According to the Remuneration and Remuneration Incentive Examination Plan, the Company determined the annual remuneration of senior management which comprised of basic annual salary and performance-related remuneration. Basic annual salary was determined according to specific positions and performance-related remuneration was directly related to economic benefits of the Company which was granted according to completion of each annual benefit target. Till now, the Company has not implemented equity incentive measures.
Section IX. Internal control
I. Internal control construction
In accordance with the―Basic Norms of Internal Control forEnterprise‖ and matching guidelines as well as other requirement from internal control supervision, the Company continues and fully promote the construction of internal control. Focusing on main units, major business and high-risk area, formulate a self-evaluation of internal control and release procedure of the reports. Furthermore, engaged qualified accounting firms to exercise audit for the effective-ness of internal control regularly. The evaluation report and audit report for internal control in every year are disclosed timely in line with relevant supervision requirement since the internal control construction implemented in 2012. In 2013, by means of organized the department function and mechanism procedures, optimized the deficits and track corrective, as well as internal activity of internal audit, the Company promotes an upgrade in management and ability for the internal control. Under the principle of benefit maximization and possible to avoid risks, the internal control system of the Company are being improved continuously. Overall performance of the internal control system of the Company can be found in―Appraisal Report of Internal Control for year of2013‖.
II. Statement of the Board on responsibility of internal control
In line with the regulation mechanism ofenterprise’ internal control, Board of the Company has responsibility to established and improve its internal control and implemented internal control effectively, evaluate the effectiveness and release the evaluation report of internal control strictly according to the facts. Supervisory committee kept eyes on the implementation and establishment of internal control from the Board. Managers are responsible for organizing and leading the daily running of company internal control. Board of the Company, Supervisory Committee, Directors, Supervisors and Senior Executives guarantee that there are no any fictitious statements, misleading statements or important omissions carried in the―Appraisal Report of Internal Control for year of2013‖, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents. TheCompany’s internal control aims at guarantee a legal operation management reasonably, assets safety, the real and completion of the financial report and relevant information, improve the business results and achieve the development strategy. Because of the inherent feature of internal control, reasonable assurance only can be provided for the realization of the above mentioned targets. Furthermore, inappropriate internal control may be resulted by the changes of conditions, or failure of controlling policy and procedures implementation, the validity of internal control that calculated according to evaluation results of internal control has a certain risks.
III. Bases for construction of financial report internal control
The Company carry out internal control evaluation in line with the regulation system ofenterprise’s internal control and―Basic Norms of Internal Control forEnterprise‖ jointly issued by five ministries of the State, and―Internal Control Guidelines for ListedCompanies‖.
IV. Self-evaluation report of internal control
|||
|-|-|
|Details of major defects in self-evaluation report that found in reporting period||
|No major defect has been found in the report period according to the standard of defects in self-evaluation.||
|Date of self-evaluation report of||
||2014-04-15|
|internal control disclosed (full-text)||
|Index of self-evaluation report of|‖Self-evaluation report of internal control for 2013‖, more details found in Juchao website|
|internal control disclosed(full-text)|(www.cninfo.com.cn) appointed by Shenzhen Stock Exchange|

V. Audit report of internal control
√ Applicable□ Not applicable
|||
|-|-|
|Auditing comments section for audit report of internal control||
|Audit institute considers that: according to relevant regulations and ―Basic Rules of Internal Control for Enterprises‖, WeifuHigh-Technology Co., Ltd., in all major aspects, keeps an efficiency of internal control of financial report dated 31 December 2013.||
|Disclosure date of audit report of||
||2014-04-15|
|internal control (full-text)||
|Index of audit report of internal|‖Audit report of internal control for year of 2013‖, more details found in Juchao website|
|control (full-text)|(www.cninfo.com.cn) appointed by Shenzhen Stock Exchange|

Whether modified audit opinions carried out for the audit report of internal control from CPA or not
□ Yes√ No
Whether audit report of internal control, issued by CPA, is in agreement with self-evaluation report, issued by the Board
√ Yes□ No
VI. Establishment and enforcement of Accountability Mechanism for Major Errors in Annual Report
The―accountability mechanism for major errors in annual reportdisclosure‖ was deliberated and approved on 20 April 2010, relevant notice found in Juchao website (www.cninfo.com.cn). In reporting period, no major correction for accounting errors, supplementation for major missing information and correction of performance forecast been found.
Section X. Financial Report
I. Audit report
|||
|-|-|
|Type of audit opinion|Standard unqualified opinion|
|Signing date of audit report|2014-04-11|
||Jiangsu Gongzheng Tianye Certified Public Accountants Co.,|
|Name of audit institute||
||Ltd. (LLP)|
|Document serial of audit report|Su Gong W[2014]No.: A472|
|CPA’s name|Bo Lingjing, Liu Darong|

Auditor’s Report
To all shareholders of Weifu High-Technology Group Co., Ltd.:
We have audited the Companying consolidated and parentCompany’s financial statements of Weifu High-Technology Group Co., Ltd(―WeifuHigh-Tech‖), including balance sheet of 31 December 2013, and profit statement, and cash flow statement, and statement on changes ofshareholders’ equity for the year ended, and notes to the financial statements for the year ended.
I.Management’s responsibility for the financial statements
Management of the Company is responsible for prepare and present financial statement of the Company, which including: (1) Prepare financial statements with fair presentation in line with Accounting Standards for Business Enterprises; (2) Designing, executed and maintaining necessary internal control in order to prevent fundamental miscarrying in financial statement from fraudulent or errors.
II. Auditor's responsibility
Our responsibility is to express an audit opinion on these financial statements based on our audit. We performed our audit in accordance with Chinese Certified Public Accountants' Auditing Standards. Those standards require us to comply with professional ethics, and to plan and perform our audit so as to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures of the financial statements. The selective audit procedures depend on auditor's judgment, including the evaluation of the risk of material misstatement of the consolidated financial statements due to frauds or errors. When evaluating risk, we consider internal control related to financial statements, in order to design auditing procedures, but not for the purpose of expressing an opinion on the internal control's effectiveness. An audit also includes assessing the appropriateness of the accounting policies adopted and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that we have obtained sufficient and appropriate audit evidences to provide a basis for our audit
opinion.
III. Auditing opinion
In our opinion, in all material aspects, WeifuHi-Tech’s financial statements have been prepared in accordance with the Enterprises Accounting Standards and Enterprises Accounting System, and they fairly present the financial status of the consolidated and parentcompany’s as of December 31, 2013, and its operation results and cash flows for the year ended.
Jiangsu Gongzheng Tianye CPA Co., Ltd. (LLP.) Chinese CPA Bo Lingjing
Wuxi China Chinese CPA Liu Darong
11 April 2014
(II) Financial statement
Unit in note of financial statement refers to CNY: RMB (Yuan)
1. Consolidated balance sheet
Prepared by Weifu High-Technology Group Co., Ltd
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary fund|2,447,555,672.40|2,600,714,219.36|
|Settlement provisions|||
|Capital lent|||
|Transaction finance asset|||
|Notes receivable|1,090,280,233.40|898,720,248.22|
|Account receivable|1,132,835,466.09|1,036,392,701.40|
|Accounts paid in advance|174,401,410.49|143,500,001.15|
|Insurance receivable|||
|Reinsurance receivables|||
|Contract reserve of reinsurance receivable|||
|Interest receivable|51,438,634.58|37,619,858.83|
|Dividend receivable|22,937,046.01|107,616,777.91|
|Other receivables|11,486,223.97|10,147,631.52|
|Purchase restituted finance asset|||
|Inventories|986,790,491.70|759,505,087.10|
|Non-current asset due within one year|||
|Other current assets|1,580,056,398.02|500,118,243.81|
|Total current assets|7,497,781,576.66|6,094,334,769.30|
|Non-current assets:|||

||||
|-|-|-|
|Granted entrust loans and advances|||
|Financial assets available for sale|385,009,400.00|265,689,600.00|
|Hold-to-maturity investment|400,000,000.00|649,000,000.00|
|Long-term account receivable|||
|Long-term equity investment|2,622,500,708.20|2,192,275,239.86|
|Investment real estate|3,424,363.44|3,881,346.30|
|Fixed assets|1,471,037,804.88|1,404,806,234.18|
|Construction in process|199,463,338.80|65,649,548.48|
|Engineering material|||
|Disposal of fixed asset|||
|Productive biological assets|||
|Oil and gas asset|||
|Intangible assets|360,284,868.85|280,305,865.12|
|Expense on Research and Development|||
|Goodwill|1,784,086.79|1,784,086.79|
|Long-term expenses to be apportioned|16,331,775.24|12,227,687.75|
|Deferred income tax asset|116,614,808.05|86,019,554.56|
|Other non-current asset|||
|Total non-current asset|5,576,451,154.25|4,961,639,163.04|
|Total assets|13,074,232,730.91|11,055,973,932.34|
|Current liabilities:|||
|Short-term loans|399,500,000.00|70,000,000.00|
|Loan from central bank|||
|Absorbing deposit and interbank deposit|||
|Capital borrowed|||
|Transaction financial liabilities|||
|Notes payable|383,418,397.65|278,184,200.63|
|Accounts payable|1,476,781,979.39|1,133,511,331.25|
|Accounts received in advance|42,297,015.90|52,622,311.97|
|Selling financial asset of repurchase|||
|Commission charge and commission payable|||
|Wage payable|295,838,993.71|276,292,169.70|
|Taxes payable|43,814,597.61|27,471,710.92|
|Interest payable|996,716.67|220,500.00|
|Dividend payable|||
|Other accounts payable|87,324,894.86|71,364,242.12|
|Reinsurance payables|||
|Insurance contract reserve|||
|Security trading of agency|||
|Security sales of agency|||
|Non-current liabilities due within 1 year|||
|Other current liabilities|26,314,544.23|22,102,265.27|
|Total current liabilities|2,756,287,140.02|1,931,768,731.86|
|Non-current liabilities:|||
|Long-term loans|60,000,000.00||
|Bonds payable|||

||||
|-|-|-|
|Long-term account payable|19,191,818.00|16,790,909.00|
|Special accounts payable|25,655,817.40||
|Projected liabilities|||
|Deferred income tax liabilities|19,938,394.40|12,551,182.40|
|Other non-current liabilities|195,506,040.61|133,879,108.31|
|Total non-current liabilities|320,292,070.41|163,221,199.71|
|Total liabilities|3,076,579,210.43|2,094,989,931.57|
|Owners’ equity(or Shareholders’ equity):|||
|Paid-in capital( or share capital)|1,020,200,992.00|680,133,995.00|
|Capital public reserve|3,729,042,104.57|3,689,694,029.52|
|Less: Inventory shares|||
|Reasonable reserve|1,255,141.19||
|Surplus public reserve|433,608,687.76|340,066,997.50|
|Provision of general risk|||
|Retained profit|4,416,658,298.29|3,946,085,733.22|
|Balance difference of foreign currency translation|||
|Total owner’s equity attributable to parent Company|9,600,765,223.81|8,655,980,755.24|
|Minority interests|396,888,296.67|305,003,245.53|
|Total owner’s equity( or shareholders equity)|9,997,653,520.48|8,960,984,000.77|
|Total liabilities and owner’s equity( or shareholders equity)|13,074,232,730.91|11,055,973,932.34|

 Legal Representative: Chen Xuejun
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin
2. Balance sheet of parent company
Prepared by Weifu High-Technology Group Co., Ltd
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary fund|1,485,894,410.54|1,566,564,504.46|
|Transaction finance asset|||
|Notes receivable|348,205,626.83|316,494,407.33|
|Account receivable|665,090,625.52|654,141,638.40|
|Accounts paid in advance|85,580,666.96|58,571,931.67|
|Interest receivable|45,000,000.00|31,963,747.72|
|Dividend receivable|21,925,117.50|102,868,978.88|
|Other receivables|2,907,285.14|23,509,170.62|
|Inventory|226,017,992.28|204,214,205.28|
|Non-current asset due within one year|||
|Other current assets|1,562,100,000.00|490,000,000.00|
|Total current assets|4,442,721,724.77|3,448,328,584.36|
|Non-current assets:|||
|Financial assets available for sale|385,009,400.00|265,689,600.00|
|Hold-to-maturity investment|400,000,000.00|649,000,000.00|

||||
|-|-|-|
|Long-term account receivable|||
|Long-term equity investment|3,632,576,088.69|3,174,930,767.12|
|Investment real estate|||
|Fixed assets|640,596,120.54|663,822,135.66|
|Construction in process|136,613,517.22|36,037,172.50|
|Engineering material|||
|Disposal of fixed asset|||
|Productive biological assets|||
|Oil and gas asset|||
|Intangible assets|198,885,843.05|183,908,044.23|
|Expense on Research and Development|||
|Goodwill|||
|Long-term expenses to be apportioned|||
|Deferred income tax asset|64,315,609.74|49,794,919.70|
|Other non-current asset|||
|Total non-current asset|5,457,996,579.24|5,023,182,639.21|
|Total assets|9,900,718,304.01|8,471,511,223.57|
|Current liabilities:|||
|Short-term loans|220,000,000.00||
|Transaction financial liabilities|||
|Notes payable|191,790,000.00|96,780,000.00|
|Accounts payable|596,257,017.04|524,096,818.13|
|Accounts received in advance|17,577,849.84|7,612,539.20|
|Wage payable|183,313,610.02|180,177,025.37|
|Taxes payable|38,260,172.61|21,422,094.21|
|Interest payable|340,511.11||
|Dividend payable|||
|Other accounts payable|219,154,760.28|62,293,809.89|
|Non-current liabilities due within 1 year|||
|Other current liabilities|||
|Total current liabilities|1,466,693,920.90|892,382,286.80|
|Non-current liabilities:|||
|Long-term loans|||
|Bonds payable|||
|Long-term account payable|||
|Special accounts payable|7,390,735.29||
|Projected liabilities|||
|Deferred income tax liabilities|17,470,485.00|9,972,240.00|
|Other non-current liabilities|181,898,815.24|115,759,108.31|
|Total non-current liabilities|206,760,035.53|125,731,348.31|
|Total liabilities|1,673,453,956.43|1,018,113,635.11|
|Owners’ equity(or Shareholders’ equity):|||
|Paid-in capital( or share capital)|1,020,200,992.00|680,133,995.00|
|Capital public reserve|3,760,247,474.50|3,717,757,419.50|
|Less: Inventory shares|||
|Reasonable reserve|||

||||
|-|-|-|
|Surplus public reserve|433,608,687.76|340,066,997.50|
|Provision of general risk|||
|Retained profit|3,013,207,193.32|2,715,439,176.46|
|Balance difference of foreign currency translation|||
|Total owner’s equity( or shareholders equity)|8,227,264,347.58|7,453,397,588.46|
|Total liabilities and owner’s equity( or shareholders equity)|9,900,718,304.01|8,471,511,223.57|

 Legal Representative: Chen Xuejun
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin
3. Consolidated profit statement
Prepared by Weifu High-Technology Group Co., Ltd
In RMB
||||
|-|-|-|
|Item|This Period|Last Period|
|I. Total operating income|5,589,307,689.55|5,015,283,418.71|
|Including: Operating income|5,589,307,689.55|5,015,283,418.71|
|Interest income|||
|Insurance gained|||
|Commission charge and commission income|||
|II. Total operating cost|4,999,434,131.48|4,386,118,820.24|
|Including: Operating cost|4,169,807,309.66|3,773,477,621.24|
|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|||
|Operating tax and extras|32,458,458.22|31,832,916.09|
|Sales expenses|207,152,852.24|190,643,487.97|
|Administration expenses|558,285,409.97|444,544,043.03|
|Financial expenses|-56,891,090.69|-75,494,945.74|
|Losses of devaluation of asset|88,621,192.08|21,115,697.65|
|Add: Changing income of fair value(Loss is listed with ―-‖)|||
|Investment income (Loss is listed with ―-‖)|642,493,295.01|396,219,312.90|
|Including: Investment income on affiliated Company and joint venture|549,177,316.88|368,812,771.97|
|Exchange income (Loss is listed with ―-‖)|||
|III. Operating profit (Loss is listed with ―-‖)|1,232,366,853.08|1,025,383,911.37|
|Add: Non-operating income|37,547,250.75|20,505,678.63|
|Less: Non-operating expense|12,604,472.52|7,872,719.89|
|Including: Disposal loss of non-current asset|4,013,576.76|1,364,127.23|
|IV. Total Profit (Loss is listed with ―-‖)|1,257,309,631.31|1,038,016,870.11|
|Less: Income tax|103,016,098.36|103,779,577.90|
|V. Net profit (Net loss is listed with ―-‖)|1,154,293,532.95|934,237,292.21|
|Including: net profit realized for merged party before combination|||

||||
|-|-|-|
|Net profit attributable to owner’s equity of parent Company|1,108,221,450.83|889,326,939.46|
|Minority shareholders’ gains and losses|46,072,082.12|44,910,352.75|
|VI. Earnings per share|--|--|
|i. Basic earnings per share|1.09|0.9|
|ii. Diluted earnings per share|1.09|0.9|
|VII. Other consolidated income|42,490,055.00|56,509,360.00|
|VIII. Total consolidated income|1,196,783,587.95|990,746,652.21|
|Total consolidated income attributable to owners of parent Company|1,150,711,505.83|945,836,299.46|
|Total consolidated income attributable to minority shareholders|46,072,082.12|44,910,352.75|

 Legal Representative: Chen Xuejun
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin
4. Profit statement of parent company
Prepared by Weifu High-Technology Group Co., Ltd
In RMB
||||
|-|-|-|
|Item|This Period|Last Period|
|I. Operation income|2,462,065,611.26|2,132,088,989.17|
|Less: Operation cost|1,983,561,133.99|1,782,615,888.55|
|Operating tax and extras|12,447,486.53|11,198,659.30|
|Sales expenses|103,626,329.78|100,733,250.93|
|Administration expenses|207,405,705.89|175,914,711.14|
|Financial expenses|-51,090,607.00|-74,305,747.48|
|Losses of devaluation of asset|43,991,263.31|6,802,374.73|
|Add: Changing income of fair value(Loss is listed with ―-‖)|||
|Investment income (Loss is listed with ―-‖)|807,499,619.20|630,849,457.36|
|Including: Investment income on affiliated Company and joint venture|495,674,234.35|324,586,557.36|
|II. Operating profit (Loss is listed with ―-‖)|969,623,917.96|759,979,309.36|
|Add: Non-operating income|6,257,329.56|9,925,274.63|
|Less: Non-operating expense|4,500,884.37|3,291,317.72|
|Including: Disposal loss of non-current asset|1,482,742.03|618,130.74|
|III. Total Profit (Loss is listed with ―-‖)|971,380,363.15|766,613,266.27|
|Less: Income tax|35,963,460.53|27,740,293.15|
|IV. Net profit (Net loss is listed with ―-‖)|935,416,902.62|738,872,973.12|
|V. Earnings per share|--|--|
|i. Basic earnings per share|||
|ii. Diluted earnings per share|||
|VI. Other consolidated income|42,490,055.00|56,509,360.00|
|VII. Total consolidated income|977,906,957.62|795,382,333.12|

 Legal Representative: Chen Xuejun
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin
5. Consolidated cash flow statement
Prepared by Weifu High-Technology Group Co., Ltd
In RMB
||||
|-|-|-|
|Item|This Period|Last Period|
|I. Cash flows arising from operating activities:|||
|Cash received from selling commodities and providing labor services|6,172,087,848.64|6,257,141,260.17|
|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|||
|Insured savings and net increase of investment|||
|Net increase of disposal of transaction financial asset|||
|Cash received from interest, commission charge and commission|||
|Net increase of capital borrowed|||
|Net increase of returned business capital|||
|Write-back of tax received|36,344,057.52|44,379,611.51|
|Other cash received concerning operating activities|175,739,109.03|141,039,458.18|
|Subtotal of cash inflow arising from operating activities|6,384,171,015.19|6,442,560,329.86|
|Cash paid for purchasing commodities and receiving labor service|3,998,317,410.40|3,903,794,051.95|
|Net increase of customer loans and advances|||
|Net increase of deposits in central bank and interbank|||
|Cash paid for original insurance contract compensation|||
|Cash paid for interest, commission charge and commission|||
|Cash paid for bonus of guarantee slip|||
|Cash paid to/for staff and workers|708,768,497.02|542,762,958.26|
|Taxes paid|434,633,292.96|451,789,302.20|
|Other cash paid concerning operating activities|438,493,691.68|378,454,798.99|
|Subtotal of cash outflow arising from operating activities|5,580,212,892.06|5,276,801,111.40|
|Net cash flows arising from operating activities|803,958,123.13|1,165,759,218.46|
|II. Cash flows arising from investing activities:|||
|Cash received from recovering investment|1,747,750,000.00|9,291,900.00|
|Cash received from investment income|215,105,271.93|235,527,376.75|
|Net cash received from disposal of fixed, intangible and other long-term assets|27,964,427.20|14,315,716.80|
|Net cash received from disposal of subsidiaries and other units|||
|Other cash received concerning investing activities|46,086,392.49||
|Subtotal of cash inflow from investing activities|2,036,906,091.62|259,134,993.55|
|Cash paid for purchasing fixed, intangible and other long-term assets|443,371,774.96|256,150,809.13|
|Cash paid for investment|2,648,881,501.00|1,660,673,000.00|
|Net increase of mortgaged loans|||
|Net cash received from subsidiaries and other units|||
|Other cash paid concerning investing activities|1,950,855.71||
|Subtotal of cash outflow from investing activities|3,094,204,131.67|1,916,823,809.13|
|Net cash flows arising from investing activities|-1,057,298,040.05|-1,657,688,815.58|
|III. Cash flows arising from financing activities:|||
|Cash received from absorbing investment|9,120,000.00|2,862,720,552.93|

||||
|-|-|-|
|Including: Cash received from absorbing minority shareholders’ investment by|||
||9,120,000.00|12,596,300.00|
|subsidiaries|||
|Cash received from loans|879,000,000.00|646,000,000.00|
|Cash received from issuing bonds|||
|Other cash received concerning financing activities||8,404,657.07|
|Subtotal of cash inflow from financing activities|888,120,000.00|3,517,125,210.00|
|Cash paid for settling debts|517,500,000.00|1,074,000,000.00|
|Cash paid for dividend and profit distributing or interest paying|261,005,069.72|255,426,930.95|
|Including: Dividend and profit of minority shareholder paid by subsidiaries|38,175,305.87|32,276,273.12|
|Other cash paid concerning financing activities|339,091.00|8,743,748.07|
|Subtotal of cash outflow from financing activities|778,844,160.72|1,338,170,679.02|
|Net cash flows arising from financing activities|109,275,839.28|2,178,954,530.98|
|IV. Influence on cash due to fluctuation in exchange rate|||
|V. Net increase of cash and cash equivalents|-144,064,077.64|1,687,024,933.86|
|Add: Balance of cash and cash equivalents at the period -begin|2,432,803,698.08|745,778,764.22|
|VI. Balance of cash and cash equivalents at the period –end|2,288,739,620.44|2,432,803,698.08|

 Legal Representative: Chen Xuejun
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin
6. Cash flow statement of parent company
Prepared by Weifu High-Technology Group Co., Ltd
In RMB
|||||
|-|-|-|-|
|Item||This Period|Last Period|
|I. Cash flows arising from operating activities:||||
|Cash received from selling commodities and providing labor services||2,843,747,396.06|2,778,522,440.94|
|Write-back of tax received||||
|Other cash received concerning operating activities||295,709,406.43|270,278,087.12|
|Subtotal of cash inflow arising from operating activities||3,139,456,802.49|3,048,800,528.06|
|Cash paid for purchasing commodities and receiving labor service||1,944,119,560.86|1,881,854,176.67|
|Cash paid to/for staff and workers||290,926,971.54|207,786,568.53|
|Taxes paid||153,325,573.83|135,099,550.27|
|Other cash paid concerning operating activities||181,221,420.94|161,194,834.36|
|Subtotal of cash outflow arising from operating activities||2,569,593,527.17|2,385,935,129.83|
|Net cash flows arising from operating activities||569,863,275.32|662,865,398.23|
|II. Cash flows arising from investing activities:||||
|Cash received from recovering investment||1,747,750,000.00|1,340,000.00|
|Cash received from investment income||443,108,613.13|515,364,899.46|
|Net cash received from disposal of fixed, intangible and other long-term assets||2,378,444.83|4,045,574.34|
|Net cash received from disposal of subsidiaries and other units||||
|Other cash received concerning investing activities||7,900,000.00||
|Subtotal of cash inflow from investing activities||2,201,137,057.96|520,750,473.80|
|Cash paid for purchasing fixed, intangible and other long-term assets||214,059,196.20|64,864,314.72|
|Cash paid for investment||2,665,163,188.00|1,890,673,000.00|
||Net cash received from subsidiaries and other units|||

||||
|-|-|-|
|Other cash paid concerning investing activities|509,264.71||
|Subtotal of cash outflow from investing activities|2,879,731,648.91|1,955,537,314.72|
|Net cash flows arising from investing activities|-678,594,590.95|-1,434,786,840.92|
|III. Cash flows arising from financing activities:|||
|Cash received from absorbing investment||2,850,124,252.93|
|Cash received from loans|440,000,000.00|570,000,000.00|
|Cash received from issuing bonds|||
|Other cash received concerning financing activities||8,404,657.07|
|Subtotal of cash inflow from financing activities|440,000,000.00|3,428,528,910.00|
|Cash paid for settling debts|220,000,000.00|1,035,000,000.00|
|Cash paid for dividend and profit distributing or interest paying|213,403,709.61|220,773,699.76|
|Other cash paid concerning financing activities||8,404,657.07|
|Subtotal of cash outflow from financing activities|433,403,709.61|1,264,178,356.83|
|Net cash flows arising from financing activities|6,596,290.39|2,164,350,553.17|
|IV. Influence on cash due to fluctuation in exchange rate|||
|V. Net increase of cash and cash equivalents|-102,135,025.24|1,392,429,110.48|
|Add: Balance of cash and cash equivalents at the period -begin|1,524,564,526.97|132,135,416.49|
|VI. Balance of cash and cash equivalents at the period –end|1,422,429,501.73|1,524,564,526.97|

 Legal Representative: Chen Xuejun
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin
7. Consolidate Changes ofOwners’ Equity
Prepared by Weifu High-Technology Group Co., Ltd
This Period
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||This Period||||||||||
||Owners’ equity attributable to the parent Company||||||||||
|Item|Paid-in capital(or||Less:|Reasonable||General|||Minority’s equity|Total Owners’|
|||Capital reserves|Treasury||Surplus reserves|risk|Retained profit|Other||equity|
||share capital)|||reserve|||||||
||||Stock|||provision|||||
|I. Balance at the end of the|||||||||||
||680,133,995.00|3,689,694,029.52|||340,066,997.50||3,946,085,733.22||305,003,245.53|8,960,984,000.77|
|last year|||||||||||
|Add: Changes of|||||||||||
|accounting policy|||||||||||
|Error correction of the last|||||||||||
|period|||||||||||
|Other|||||||||||
|II. Balance at the beginning of|||||||||||
||680,133,995.00|3,689,694,029.52|||340,066,997.50||3,946,085,733.22||305,003,245.53|8,960,984,000.77|
|this year|||||||||||
|III. Increase/ Decrease in this|||||||||||
|year (Decrease is listed with|340,066,997.00|39,348,075.05||1,255,141.19|93,541,690.26||470,572,565.07||91,885,051.14|1,036,669,519.71|
|―-‖)|||||||||||
|(I) Net profit|||||||1,108,221,450.83||46,072,082.12|1,154,293,532.95|
|(II) Other consolidated income||42,490,055.00||||||||42,490,055.00|
|Subtotal of (I) and (II)||42,490,055.00|||||1,108,221,450.83||46,072,082.12|1,196,783,587.95|
|(III) Owners’ devoted and|||||||||||
|||-3,141,979.95|||||||73,309,536.01|70,167,556.06|
|decreased capital|||||||||||
|1. Owners’ devoted capital|||||||||73,309,536.01|73,309,536.01|
|2. Amount calculated into|||||||||||
|owners’ equity paid in shares|||||||||||
|3. Other||-3,141,979.95||||||||-3,141,979.95|
|(IV) Profit distribution|340,066,997.00||||93,541,690.26||-637,648,885.76||-27,705,305.87|-231,745,504.37|
|1. Withdrawal of surplus|||||||||||
||||||93,541,690.26||-93,541,690.26||||
|reserves|||||||||||
|2. Withdrawal of general risk|||||||||||
|provisions|||||||||||
|3. Distribution for owners (or|||||||-204,040,198.50||-27,705,305.87|-231,745,504.37|

|||||||||
|-|-|-|-|-|-|-|-|
|shareholders)||||||||
|4. Other|340,066,997.00||||-340,066,997.00|||
|(V) 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．Other||||||||
|(VI) Reasonable reserve|||1,255,141.19|||208,738.88|1,463,880.07|
|1. Withdrawal in the report||||||||
||||17,366,734.77|||2,119,500.71|19,486,235.48|
|period||||||||
|2. Usage in the report period|||16,111,593.58|||1,910,761.83|18,022,355.41|
|(VII)Others||||||||
|IV. Balance at the end of the|||||||9,997,653,520.48|
||1,020,200,992.00|3,729,042,104.57|1,255,141.19|433,608,687.76|4,416,658,298.29|396,888,296.67||
|report period||||||||

Amount at last year
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount at last year||||||||||
||Owners’ equity attributable to the parent Company||||||||||
|Item|Paid-in||Less:|Reasonable||General|||Minority’s equity|Total Owners’|
||capital(or share|Capital reserves|Treasury||Surplus reserves|risk|Retained profit|Other||equity|
|||||reserve|||||||
||capital)||Stock|||provision|||||
|I. Balance at the end of the last|||||||||||
||567,275,995.00|895,918,416.59|||283,637,997.50||3,317,227,992.26||276,328,103.75|5,340,388,505.10|
|year|||||||||||
|Add: Retroactive adjustment|||||||||||
|arising from combination under|||||||||||
|same control|||||||||||
|Add: Changes of accounting|||||||||||
|policy|||||||||||
|Error correction of the last|||||||||||
|period|||||||||||
|Other|||||||||||

|||||||||
|-|-|-|-|-|-|-|-|
|II. Balance at the beginning of||||||||
||567,275,995.00|895,918,416.59||283,637,997.50|3,317,227,992.26|276,328,103.75|5,340,388,505.10|
|this year||||||||
|III. Increase/ Decrease in this year||||||||
||112,858,000.00|2,793,775,612.93||56,429,000.00|628,857,740.96|28,675,141.78|3,620,595,495.67|
|(Decrease is listed with ―-‖)||||||||
|(I) Net profit|||||889,326,939.46|44,910,352.75|934,237,292.21|
|(II) Other consolidated income||56,509,360.00|||||56,509,360.00|
|Subtotal of (I) and (II)||56,509,360.00|||889,326,939.46|44,910,352.75|990,746,652.21|
|(III) Owners’ devoted and||||||||
||112,858,000.00|2,737,266,252.93||||12,596,300.00|2,862,720,552.93|
|decreased capital||||||||
|1. Owners’ devoted capital|112,858,000.00|2,737,266,252.93||||12,596,300.00|2,862,720,552.93|
|2. Amount calculated into owners’||||||||
|equity paid in shares||||||||
|3. Other||||||||
|(IV) Profit distribution||||56,429,000.00|-260,469,198.50|-28,831,510.97|-232,871,709.47|
|1. Withdrawal of surplus reserves||||56,429,000.00|-56,429,000.00|||
|2. Withdrawal of general risk||||||||
|provisions||||||||
|3. Distribution for owners (or||||||||
||||||-204,040,198.50|-28,831,510.97|-232,871,709.47|
|shareholders)||||||||
|4. Other||||||||
|(V) 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. Other||||||||
|(VI) Reasonable reserve||||||||
|1. Withdrawal in the report period|||18,232,197.57|||2,071,770.49|20,303,968.06|
|2. Usage in the report period|||18,232,197.57|||2,071,770.49|20,303,968.06|
|(VII)Others||||||||
|IV. Balance at the end of the report||||||||
||680,133,995.00|3,689,694,029.52||340,066,997.50|3,946,085,733.22|305,003,245.53|8,960,984,000.77|
|period||||||||

Legal Representative: Chen Xuejun Person in charge of accounting works: Ou Jianbin Person in charge of accounting institute: Ou Jianbin
8. Statement on Changes ofOwners’ Equity of Parent Company
Prepared by Weifu High-Technology Group Co., Ltd
This Period
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||This Period||||||||
|Item|Paid-in capital(or||Less:|Reasonable|Surplus|General risk||Total Owners’|
|||Capital reserves|Treasury||||Retained profit||
||share capital)|||reserve|reserves|provision||equity|
||||Stock||||||
|I. Balance at the end of the last year|680,133,995.00|3,717,757,419.50|||340,066,997.50||2,715,439,176.46|7,453,397,588.46|
|Add: Changes of accounting policy|||||||||
|Error correction of the last period|||||||||
|Other|||||||||
|II. Balance at the beginning of this year|680,133,995.00|3,717,757,419.50|||340,066,997.50||2,715,439,176.46|7,453,397,588.46|
|III. Increase/ Decrease in this year (Decrease is|||||||||
||340,066,997.00|42,490,055.00|||93,541,690.26||297,768,016.86|773,866,759.12|
|listed with ―-‖)|||||||||
|(I) Net profit|||||||935,416,902.62|935,416,902.62|
|(II) Other consolidated income||42,490,055.00||||||42,490,055.00|
|Subtotal of (I) and (II)||42,490,055.00|||||935,416,902.62|977,906,957.62|
|(III) Owners’ devoted and decreased capital|||||||||
|1. Owners’ devoted capital|||||||||
|2. Amount calculated into Owners’ equity paid|||||||||
|in shares|||||||||
|3. Other|||||||||
|(IV) Profit distribution|340,066,997.00||||93,541,690.26||-637,648,885.76|-204,040,198.50|
|1. Withdrawal of surplus reserves|||||93,541,690.26||-93,541,690.26||
|2. Withdrawal of general risk provisions|||||||||
|3. Distribution for owners (or shareholders)|||||||-204,040,198.50|-204,040,198.50|
|4. Others|340,066,997.00||||||-340,066,997.00||
|(V) 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. Others|||||||
|(VI) Reasonable reserve|||||||
|1. Withdrawal in the report period|||4,032,088.99|||4,032,088.99|
|2. Usage in the report period|||4,032,088.99|||4,032,088.99|
|(VII) Others|||||||
|IV. Balance at the end of the report period|1,020,200,992.00|3,760,247,474.50||433,608,687.76|3,013,207,193.32|8,227,264,347.58|

 Amount at last year
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount at last year||||||||
||||Less:||||||
|Item|Paid-in capital(or|||Reasonable||General risk||Total Owners’|
|||Capital reserves|Treasury||Surplus reserves||Retained profit||
||share capital)|||reserve||provision||equity|
||||Stock||||||
|I. Balance at the end of the last year|567,275,995.00|923,981,806.57|||283,637,997.50||2,237,035,401.84|4,011,931,200.91|
|Add: Changes of accounting policy|||||||||
|Error correction of the last period|||||||||
|Other|||||||||
|II. Balance at the beginning of this year|567,275,995.00|923,981,806.57|||283,637,997.50||2,237,035,401.84|4,011,931,200.91|
|III. Increase/ Decrease in this year (Decrease is|||||||||
||112,858,000.00|2,793,775,612.93|||56,429,000.00||478,403,774.62|3,441,466,387.55|
|listed with ―-‖)|||||||||
|(I) Net profit|||||||738,872,973.12|738,872,973.12|
|(II) Other consolidated income||56,509,360.00||||||56,509,360.00|
|Subtotal of (I) and (II)||56,509,360.00|||||738,872,973.12|795,382,333.12|
|(III) Owners’ devoted and decreased capital|112,858,000.00|2,737,266,252.93||||||2,850,124,252.93|
|1. Owners’ devoted capital|112,858,000.00|2,737,266,252.93||||||2,850,124,252.93|
|2. Amount calculated into Owners’ equity paid|||||||||
|in shares|||||||||
|3. Other|||||||||
|(IV) Profit distribution|||||56,429,000.00||-260,469,198.50|-204,040,198.50|
|1. Withdrawal of surplus reserves|||||56,429,000.00||-56,429,000.00||
|2. Withdrawal of general risk provisions|||||||||
|3. Distribution for owners (or shareholders)|||||||-204,040,198.50|-204,040,198.50|
|4. Others|||||||||

||||||||
|-|-|-|-|-|-|-|
|(V) 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. Others|||||||
|(VI) Reasonable reserve|||||||
|1. Withdrawal in the report period|||4,688,219.42|||4,688,219.42|
|2. Usage in the report period|||4,688,219.42|||4,688,219.42|
|(VII) Others|||||||
|IV. Balance at the end of the report period|680,133,995.00|3,717,757,419.50||340,066,997.50|2,715,439,176.46|7,453,397,588.46|

 Legal Representative: Chen Xuejun Person in charge of accounting works: Ou Jianbin Person in charge of accounting institute: Ou Jianbin
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) 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―theCompany‖ 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 RMB 115.4355 million, including state-owned share capital amounting to RMB 92.4355 million, public corporate share capital amounting to RMB 8 million and inner employee share capital amounting to RMB 15 million.
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―WeifuGroup‖).
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 RMB 1.00 for each, and the total value of those shares amounted to RMB 68 million. After the issuance, theCompany’s total share capital increased to RMB 183.4355 million.
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 RMB 303.4355 million.
In the middle of 1999, deliberated and approved by the Board andShareholders’ 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 RMB 394.46615 million, of which state-owned shares amounted to RMB 120.16615 million, public corporate shares RMB 10.4 million, foreign-funded shares (B-share) RMB 88.40 million, RMB ordinary shares (A-share) RMB 156 million and inner employee shares RMB 19.5 million.
In the year 2000, by the approval of the CSRC and based upon the total share capital of 303.4355 million shares after the issuance of A-share in June 1998, the Company allotted 3 shares for each 10 shares, with a price of RMB 10 for each allotted share. Actually 41.9 million shares was allotted, and the total share capital after the allotment increased to RMB 436.36615 million, of which state-owned corporate shares amounted to RMB 121.56615 million, public corporate shares RMB 10.4 million, foreign-funded shares (B-share) RMB 88.4 million and RMB ordinary shares (A-share) RMB 216 million.
In April 2005, Board of Directors of the Company has examined and approved 2004 Profit Pre-distribution Plan, and examined and approved by 2004Shareholders’ General Meeting , the Company distributed 3 shares for each 10 shares to the whole shareholders totaling to 130,909,845 shares in 2005.
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) According to the Share Merger Reform Scheme of the Company that passed by relatedshareholders’ 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 47,736,000 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.
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 shares as prior to Share Merger Reform, according to the aforesaid Share Merger Reform, with an aggregate of 14,039,979 shares dispatched. Subsequent to implementation of dispatch of consideration shares, Weifu Group then held 100,021,999 shares of the Company, representing17.63% 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 Feb., the Company issued RMB ordinary shares (A-share) of 112,858,000 shares to Wuxi Industry Groups and overseas strategic investor, ROBERT BOSCH GMBH (hereinafter referred to as Germany BOSCH), face value was RMB 1 Yuan per share, added registered capital of RMB112,858,000 Yuan , and the registered capital after change was RMB 680,133,995 Yuan. Wuxi Industry Group is the first majority shareholder of the Company, and Germany BOSCH is the second majority shareholder of the Company.
In March 2013, the profit distribution replan 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 680,133,995 shares, distribute 5-share for every 10 shares held by whole shareholders, 340,066,997 shares in total are distributed. Total share captial of the Company amounting RMB 1,020,200,992 up to 31 December 2013.
2. Registered place, organization structure and head office of the Company
Registered place and head office of the Company: Wuxi, Jiangsu.
The registration number of the Company was 320200000014926.
The Company sets upShareholders’ General Meeting, the Board of Directors and the Supervisory Committee.
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) The Company sets up Administration Department, Engineering Technology Research Institution, Human Resources Department, Office of the Board, Risk Management Department, Information Systems Department, Market& Strategy Plan Department, Party-masses Security Department, Finance Control Department, Project Purchase Department, MS Business Segment, AC Business Segment, and subsidiaries such as Wuxi Weifu Leader Catalytic Converter Co., Ltd. (referred to as Weifu Leader), Nanjing Weifu Jinning Co., Ltd. (referred to as Weifu Jinning), and Wuxi Weifu Automotive Diesel System Co., Ltd. (referred to as Weifu Diesel System).
3. Business nature and major operation activities of the Company
Operation scope of parent company: manufacture of engine fuel oil system products, fuel oil system testers and equipments; sales of energy-oriented machinery, hardware& electric materials, chemical products and raw materials (other than chemical dangerous). Auto spare parts, autos (other than autos under-9 seats); repair of engine, technological development and consultancy service of machinery industry; 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
Major subsidiaries respectively activate in production and sales of engine accessories, auto spare parts, mufflers, and purifiers.
4. Relevant party offering approval reporting of financial statements and date thereof
Financial statements of the Company were approved by the Board of Directors for reporting dated 11 April 2014. IV. Major Accounting Policies, Accounting Estimation and Previous Errors of the Company 1. Basis of preparation of financial statements
The financial statement were stated in compliance with Accounting Standard for Enterprises No.30-Presentation of Financial Statement, with recognitions and measurements made by reference to Accounting Standard for Enterprises and Application Instruments thereof promulgated by the Ministry of Finance dated 15 February 2006 in respect of the actual transactions and proceedings, on a basis of ongoing operation.
2. Statement on observation of Accounting Standard for Enterprises
Financial statements prepared by the Company were in accordance with requirements of Accounting Standard for Enterprises, which truly and completely reflected the financial information of the Company, such as financial position, operation achievements and cash flow.
3. Accounting period
The accounting period of the Company comprises of annual period and interim period, among which, the annual period commences from 1 January to 31 December, and interim period includes monthly, quarterly and half-year. 4. Currency used in book-keeping
TheCompany’s reporting currency is the RMB Yuan.
5. Accounting treatment methods for business combination under and not under the same control
(1)Business combination under the same control
Business combination under the same control: consideration paid by acquirer for combination and net assets
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) acquired by him shall all be measured with carrying value. Difference between carrying values of net assets and combination consideration respectively obtained and paid by acquirer over total par value of shares in issue shall be used to adjust capital reserve; when capital reserve is insufficient for offset, then retained profit shall be adjusted. All direct related expenses arising from business combination, including auditing expenses paid for combination, evaluation expenses and law service expenses, shall be recorded in current gains and losses upon occurrence; while procedure charge and commission arising from issuance of equity securities or bonds in relation to business combination shall be accounted in initial measurement amount ofshareholders’ equity or liabilities. (2) Business combination not under the same control
Business combination not under the same control: combination cost paid by acquirer and net recognizable assets obtained from combination shall be measured at fair value. In the event that difference between combination costs over fair value of net recognizable assets obtained from combination is positive, thus such difference shall be recognized as goodwill; if negative, and then shall be accounted in current gains and losses. All direct related expenses arising from business combination including auditing expenses paid for combination, evaluation expenses and law service expenses shall be recorded in business combination cost; while procedure charge and commission arising from issuance of equity securities or bonds in relation to business combination shall be accounted in initial measurement amount ofshareholders’ equity or liabilities.
6. Relevant specific accounting policy for equity disposal on step-by-step basis to lose control
(1) A principle of judgment of “Package Deal”
(2) Accounting method for “Package Deal”
(3) Accounting method for Non “Package Deal”
7. Preparation method for consolidated statements
(1) Preparing method of consolidated financial statements
(1) Confirmation principle of consolidation scope
Preparation of the consolidation financial statement of the Company mainly complied with the consolidation scope recognized by Parent Company Theory, details consolidation scope as:
①More than half of the equity capital of the investee enterprise that owned by Parent company, directly/indirectly and jointly owned more than half of the equity capital by indirectly and directly included;
②Other investee enterprises control by Parent company including:
A. Holding more than half of voting right of the investee through agreement with other investors of the investee enterprises;；
B. Having the rights of financial and operation strategy controlled according to Article of Association to Agreement;
C. Having the rights of appointment and dismissal on majoritypersonnel’s in Board or in similar power institution of the enterprise;
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) D. Having more than half of the rights to vote in Board or similar power institution of the enterprise.
(2) Measures used in consolidation
①The Company consolidations permit since the day of actual control right obtained; cease consolidation since the day of control right lost. Consolidation financial statement based on the financial statement of the Company and other relevant information of vary subsidiaries that joint in the consolidation scope, adjusted long-term equity investment to subsidiaries according to equity method, off-setting the investment, transaction and contacts between the Company and vary subsidiaries that in the consolidation scope, consolidated for preparation after minorityshareholders’ gains/loss and minorityshareholders’ equity calculation.
②Concerning the different accounting policy or accounting period between the Company and subsidiaries, consolidating after adjustment onsubsidiaries’ financial statement based on theCompany’s accounting policy or accounting period.
③Concerning 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. (2)Disclosure of related accounting method for buy-and-resell or sell-and-repurchase of equities in the same subsidiary within two successive accounting years
Nil
8. Determination criteria of cash and cash equivalent
Cash equivalent represents such kind of investment featuring with short term (generally due within 3 months since purchase day), active liquidity, being easy for converting to cash with already-known amount, as well as tiny exposure to value change risks.
9. Foreign currency business and the conversion of foreign currency statement
(1) Foreign currency business
Foreign currency business is accounted with amount denominated in RMB as translated at the spot exchange rate as of the occurrence day of such business. The occurred foreign currency exchange business or transactions with foreign currency exchange involved shall be translated at the effective exchange rate (i.e. exchange rate adopted by banks for such transactions) adopted by such transaction.
(2) Translation of foreign currency statement
As at balance sheet date, division between foreign currency monetary items and foreign currency non-monetary items are dealt with according to the following principles:
Foreign currency monetary items are translated at spot exchange rate as of balance sheet date, and then recorded in current gains and losses when happening during normal operation period; exchange gains and losses related to borrowings for purchasing fixed assets are disposed with principle of capitalization of borrowing expense. Monetary item represents the monetary capital, and assets or liabilities respectively received or paid at fixed or
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) insurable amount, among other things, stock cash, bank deposit, account receivables, other receivables, long-term receivables, short-term loans, account payables, other payables, long-term loans, bond payables and long-term payables, etc.
Foreign currency non-monetary items are translated at spot exchange rate as of transaction date, with no change in its amount accounted in standard currency. Non-monetary items represent items except for monetary items. As for foreign currency non-monetary items measured at fair value, translation is subject to the spot exchange rate as of the date when fair value is recognized. Difference between the accounted standard currency amount subsequent to translation and its original accounted standard currency amount is dealt with as movement in fair value (movement in exchange rate included), and then recorded in current gains and losses.
10. Financial instruments
Financial instruments including financial assets, financial liability and equity instrument.
(1) Classification of financial instruments
In terms of investment purposes and economic natures, the Company divides its financial assets into transactional financial assets, financial assets available for sale, account receivables and held-to-maturity investments, among which, transactional financial asset is measured at fair value and movement of its fair value is recorded in current gains and losses; financial asset available for sale is measured at fair value and movement of its fair value is recorded inshareholders’ equity; account receivables and held-to-maturity investments are measured at amortized cost.
(2) Recognition basis and measurement method for financial instruments
In the case that when a company constitutes one party to financial instrument agreement, one item of financial asset or financial liability shall then be recognized.
In terms of economic nature, the Company divides its financial liabilities into two groups, namely financial liabilities at fair value through gains and losses and other financial liabilities at amortized cost.
(3) Recognition basis and measurement method for transfer of financial assets
That the Company grants or delivers financial assets to party other than the issuer of such financial assets equals transfer of financial assets. Financial assets transferred could be the entire or part of such financial assets. Two forms are listed as follows:
①Transfer of right for collecting cash flow of financial assets to another party;
②Transfer financial assets to another party, while the aforementioned right is retained, with obligation of paying such cash flow to final collector.
In the even that the Company has transferred almost all risks and remunerations arising from ownership of all or part financial assets to another party, accordingly, recognition for such entire or part financial assets shall be ceased. Gains and losses are determined by the received consideration less the carrying value of the transferred
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) financial assets. Meanwhile, the original accumulated gains or losses of financial assets recognized in theowners’ equity shall transferred to gains and losses; when all risks and remunerations attached to ownership are retained, recognition for such entire or part financial assets shall continue, and the consideration received shall be viewed as financial liabilities.
As for the financial assets which the Company has neither transferred nor retained all risks and remunerations attached to ownership of such financial assets, while control upon such financial assets still exists, recognition shall be conducted in light of the degree of its continuous involvement in the transferred financial assets. Accordingly, relevant liabilities shall be recognized.
(4) Recognition condition for termination of financial liability
Upon satisfaction of one of the following condition, financial assets will immediately experience discontinued recognition:
①Right entitled by contract in respect of collection of cash flow from such financial asset terminates.
②Such financial assets have been transferred and meet discontinued recognition condition for financial assets as regulated by Accounting Standard for Enterprise No.23-Transfer of Financial Assets.
Only when present obligations under financial liability have been released entirely or partly, could cease recognition of such financial liability or part thereof.
(5) Deciding of fair value of financial assets and financial liabilities
① In case of an active market, financial assets or financial liabilities which are respectively held and proposed to be undertaken by the Company are subject to the prevailing offer price of such market, and financial assets or financial liabilities which are respectively proposed to be held and undertaken by the Company are subject to the prevailing asked price of such market. In case of absence of such prevailing offer or asked prices, market quotation of the latest transaction or adjusted market quotation of the latest transaction shall be adopted, except that there is clear evidence showing that such market quotation is not fair value.
② In case of absence of an active market, the Company recognizes fair value by reference to valuation technology which includes reference to the price adopted by parties who are willing to make business and knowing conditions quite well in their latest transactions, reference to prevailing fair values of other financial instruments with similar essence, discount cash flow method and option pricing pattern.
(6) Impairment test method and impairment provision method for financial assets (not including account receivables)
The Company conducts inspection on carrying values of financial assets, except for transactional financial assets, as at balance sheet date. If there is objective evidence indicating that impairment has happened to financial assets, impairment reserve then shall be provided. Financial asset with great amount in single item is subject to separate impairment test. In case of any objective evidence indicating that impairment has happened to such financial asset, impairment loss shall be recognized and recorded in current gains and losses. As for the financial assets with no
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) great amount in single item and those which prove to be not impaired after separate test, the Company will conduct impairment test on basis of credit portfolio which is determined in light ofcustomers’ credit records and historical bad debts, so as to recognize impairment loss.
Objective evidence indicating impairment happens to financial assets means the proceedings meeting the three characteristics: actually occurred subsequent to initial recognition of such financial assets, bring influence over the estimated future cash flow of such financial assets, and such influence could be reliably measured by the Company.
The followings are included in objective evidences indicating impairment happens to financial assets:
A: Serious financial difficulty happens to issuer or debtor;
B: Breach of terms of contract by debtor, such as breach or overdue in repaying interest or principal;
C: Creditor makes concession for debtors who experience financial trouble in light of consideration for economy or laws;
D: Debtor is very likely to experience bankrupt or financial reorganization;
E: Financial assets are not able to be traded in active market since material financial difficulty happens to issuer; F: It is unable to judge whether cash flow from certain asset in a group of financial assets has decreased, while it is finally found that the estimated future cash flow of such financial asset has actually decreased since its initial recognition and the decrease can be reliably measured by reference to the general valuation based on open data. For example, payment capacity of debtor of such financial assets portfolio gradually worsens, or unemployment in country or region where the debtor locates risen, price of guaranty falls greatly in the place where it locate, and the industry in which it belongs to is unpromising;
G: Material negative changes happen to technologies, markets, economy or law environment in which debtor operates, which leads to that equity instrument investor is not likely to be able to recover investment cost;
H: Fair value of equity instrument investment experiences severe or non-temporary falling;
I: Other objective evidence indicating impairment happens to financial assets.
In the event of impairment in financial asset at amortized cost, impairment loss is calculated based on the difference between carrying value and present value of estimated future cash flow discounted at effective interest rate.
After impairment loss is recognized for financial asset at amortized cost, if there is objective evidence indicating value of such financial asset has recovered, which is objectively related to proceedings occurred after recognition of such loss, the original impairment loss shall be reversed and recorded in current gains and losses. However, the carrying value subsequent to such reversal shall not exceed the amortized cost of such financial asset as at the reversal date on assumption that such impairment loss had not been provided.
Judging standards for vary impairment of financial assets available for sale
At end of the Period, if the fair value of financial assets avilable for sale drop dramatically, or after considering various relevant factors, the trend is estimate falls temporary, than impairment shall be recognized. The original
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) accumulated loss throughowners’ equity directly arising from falling fair value shall be reversed and impairment recognized. As for the recognized impairment losses of debt instruments available for sale, in later accounting period, if the fair value gose up and objectively relevant to the event recognized after original impairment losses confirmed, the original recognized impairment losses shall be reversed and reckoned into current gains/losses. Impairment losses arising from invesment of equity insutrument availabel for sale, shall not be reversed through gains and losses.
Standards of―serious‖down for fair value of equity insutrument availabel for sale investment: Generally speaking, as for those active equity investmentin in a good market liquidity, over50% decline will recognize as serious down.
Standards of―non-temporary‖down for fair value of equity insutrument availabel for sale investment: Generally speaking, if consecutive drop for over 6 months, than shall recognize as―non-temporarydown‖.
(7)As for reclassification of un-matured held-to-maturity investments into financial assets available for sale, explain the holding purposes or references for change of ability
Nil
11. Recognition standards and accrual method for bad debt provision for accounts receivable
(1) Bad debt provision for accounts receivable with single major amount
|||
|-|-|
||The Company’s account receivables with above RMB 1 million in single item is defined as|
||account receivables with significant amount in single item. Such kind of account receivables are|
|Determine basis or amountstandards for single significantamount||
||recognized as bad debts in case of impossible collection though with bankrupt properties or|
||heritages of debtors due to their bankrupt or death, or in the even that debtors haven’t|
||implemented their repayment obligations over 3 years upon expiration and there are obvious|
||evidences indicating impossible collection.|
|Withdrawal method for account|As for account receivables with significant amount in single item which can not be directly|
|with single significant amount and|recognized as bad debts, debt provision shall be provided according to the Company’s policies|
|withdrawal single item bad debt|by aged analysis method. 100% bad debt provision shall be provided for those account|
|provision|receivables with great amount in single item which can be directly recognized as bad debts|

 (2) Accounts whose bad debts provision was accrued by combination
||||
|-|-|-|
||Methods on withdrawal of bad debt||
|Combination||Basis for combination recognized|
||provision based on combination||
|||A combination classified by age as major risk characteristic,|
|Age combination|Age analysis method||
|||withdrawal bad debt provision by age analysis method|

In combination, accounts whose bad debts provision was accrued by age analysis:
√ Applicable□ Not applicable
||||
|-|-|-|
|Account age|Rate for receivables (%)|Rate for other receivables (%)|
|Within 1 year (one year included)|10%|10%|
|Within 6 months|0%|0%|
|6 months to 1 year|10%|10%|
|1－2 years|20%|20%|
|2－3 years|40%|40%|
|Over 3 years|100%|100%|
|3－4 years|100%|100%|
|4－5 years|100%|100%|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||
|-|-|-|
|Over 5 years|100%|100%|

 In combination, withdrawal proportion of bad debt provision based on balance proportion:
□Applicable√ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods:
□Applicable√ Not applicable
(3) Accounts with single significant amount and bad debts provision accrued individually
|||
|-|-|
||Account receivable meeting the following conditions: account receivable whose single amount is not|
|Reasons for withdrawal||
||significant, impossible collection though with bankrupt properties or heritages of debtors due to their|
|single item bad debt||
||bankrupt or death, debtors haven’t implemented their repayment obligations over 3 years upon expiration|
|provision||
||and there are obvious evidences indicating impossible collection.|
|Withdrawal method for|100% for provision percentage for percentage of total accounts receivable outstanding and 100% for|
|bad debt provision|provision percentage for percentage of total other receivable outstanding|

12. Inventories
(1)Classification of inventories
TheCompany’s inventories are categorized into stock materials, product in process and stock goods etc.
(2)Pricing for delivered inventories
Pricing method: Other
A. Generally, stock materials are calculated at planned cost. Material cost difference is individually set according to classification of grant types. Pursuant to the difference between the planned cost of the received or delivered raw materials and the material cost the aforesaid cost should share after carrying forward at period-end, the Company adjusts the planned cost to effective cost; finished products are priced at effective costs, and carried forward to operating cost by weighted average method when being delivered;
B. Products in process are priced at effective costs, and carried forward to finished products at actually occurred cost;
C. Finished self-produced products are priced at effective costs, and carried forward to operating cost by weighted average method; external purchase goods (from import and export trades) are carried forward to sales cost by individual pricing method.
(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 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.
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) As for inventories such as stock goods 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
Inventory system: Perpetual Inventory System
(5) Amortization of low-value consumables and wrappage
Low-value consumables
Amortization Method: one-off amortization
Wrappage
Amortization Method: one-off amortization
13. Long-term equity investment
(1)Recognition of investment cost
Long-term equity investment mainly includes the equity investments made to subsidiaries, joint ventures and associates, and the equity investment whichcouldn’t entitle the Company to conduct control, common control or significant influence over the invested units and which have no quotation price in active market and whose fair value could not be able to measured surely.
Initial investment cost of long-term equity investment of the Company is recognized by the following ways based on different acquisition ways:
①In situation of a long-term equity investment acquired through business combination under common control, the carrying value of theowners’ equity of the acquired company as at the combination date is deemed as initial investment cost for this long-term equity investment; difference between acquisition cost and initial investment cost is used to adjust capital reserve. In case of insufficient capital reserve for offset, retained profit shall be then adjusted.
②In situation of a long-term equity investment acquired through business combination not under common control, the initial investment cost of long-term equity investment is determined at the fair value of assets involved at trading dated, equity instrument issued as well as liabilities occurred or undertaken. Realizable assets and liabilities undertaken by such assets (including contingent liabilities) of the party being combined as at the combination date are all measured at fair values, without consideration to amount of minority interests. The surplus of combination cost less fair value net realizable assets of the party being combined is recorded as goodwill, and the deficit is directly recognized in the consolidated statement of gains and losses.
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)③Long-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 injected by investor is determined at the agreed value in investment contract or agreement. In case of an unfair contract or agreement value, measurement shall be conducted at fair value;
D. 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;
E. Initial investment cost of long-term equity investment obtained through debt reorganization is determined at fair value of such investment.
(2)Recognition method for subsequent measurement and gains and losses
①Investment to subsidiaries is calculated under cost method: it is referred to the equity investment made to subsidiaries held by the Company which can conduct control upon invested unit. If the Company holds over50% equities of an entity or has control power in such entity though equity holding is fewer than50%, such entity comprises a subsidiary of the Company.
②Investment to joint ventures or associates is calculated under equity method: it is referred to the equity investment made to joint ventures held by the Company which can conduct common control upon the joint venture with other joint parties; it is referred to the equity investment made to associates held by the Company which has material influence upon such associates. In the event that the Company holds equities of an entity from20% to50% and no essential control exists in such entity meanwhile or that though the Company holds equities of an entity fewer than20% while it has material influence upon such entity, then the entity shall be deemed as a joint venture or associate of the Company. When recognizing its share in net gains and losses of the invested unit, the Company shall achieve recognition based on fair values of various realizable assets of such invested unit upon obtaining such investment after adjustment in net profit of such invested unit. In case of any inconsistency of the accounting policies and accounting periods adopted by invested unit and the Company, financial statements of such invested unit shall be subject to adjustment in compliance with accounting policies and accounting periods adopted by the Company, so as to recognize investment gains and losses on that basis. As for treatment for other movement ofowners’ equity other than net gains and losses of invested unit, carrying value of long-term equity investment shall be subject to adjustment which shall be then recorded inowners’ equity.
③Long-term equity investment to entities where the Company has no control, common control or material influence:
Long-term equity investment which has no quotation in active market and whose fair value could not be reliably measured is calculated under cost method.
Long-term equity investment which has quotation in active market or whose fair value could be reliably measured
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) is presented under item of financial asset available for sale, and is measured at fair value, and fair value movement thereof shall be recorded inshareholders’ equity.
(3)Reference for confirmation of common control and material influence in invested unit
Common control over invested unit means common control over certain economic activity pursuant to contract agreement, and only exists when investors who need to share control power on material financial and operation decisions related to such economic activity make unanimous agreement. That a party has material influence upon invested unit means that such party has power to join decision-making related to finance and operation decisions of the invested unit, while no ability of control or joint control with other parties upon establishement of such decisions.
(4)Impairment test method and withdrawal method for impairment provision
If any impairment indication is found in long-term equity investment by the Company in its period-end inspection, the recoverable amount shall be estimated. In case of such recoverable amount lowering than its carrying value, impairment provision shall be withdrawn for long-term investment by reference to the difference of the aforesaid two items. As for long-term equity investment which has no quotation in active market and whose fair value could not be reliably measured, its impairment loss is determined by reference to its carrying value less the amount recognized through discounting future cash flow at the prevailing market yield ratio of similar financial assets, and then recorded in current gains and losses. As for long-term equity investment except for financial assets available for sale, its impairment provision will not be reversed during asset permanent period once it is withdrawn. Impairment loss of financial assets available for sale can be reversed through equities.
14. Investment real estate
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 the provision for impairment of relevant fixed assets.
15. Fixed assets
(1) Recognition of fixed assets
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) Fixed assets refer to the buildings, machinery and equipment, transportation vehicle and other equipments related to operation with useful lives of more than one year and held for production of products, provision of labor, lease or operation. A fixed asset is recognized when it is Contingent that the relevant economic benefits flow into the enterprise and the cost of the fixed assets can be reliably measured.
(2) Basis of recognition and method of measurement of fixed assets by financing lease
The assets will be classified as fixed assets by financing lease if the Company satisfies one or more of the following conditions:
①As stipulated in the lease agreement (or a reasonable judgment made pursuant to relevant conditions at the commencement date of the lease), the ownership of fixed assets by financing lease can be passed to the Company when the lease expires;
②As the Company has a option to acquire the leased fixed assets and the agreed price of purchase is far below the fair value of leased fixed assets at the time of exercise of the option, it is certain that the Company will exercise the option at the commencement date of the lease;
③Despite that the ownership of fixed assets is not transferable, the lease period represents75% or more of the useful life of leased fixed assets;
④The present value of the minimum lease payment by the Company at the commencement date of lease is equal to90% or more of the fair value of leased fixed assets at the commencement date of lease. The present value of the minimum lease payment received by the lesser at the commencement date of lease is equal to90% or more of the fair value of leased fixed assets at the commencement date of lease;
⑤ Due to the special nature of the leased assets, those assets can be used only by the Company if without any substantial renovation;
⑥The fixed assets by financing lease is carried at the lower of the fair value of the leased fixed assets at the commencement date of lease and the present value of the minimum lease payment.
(3) Depreciation of fixed assets
|||||
|-|-|-|-|
|Classification|Depreciation time(Year)|Residual rate (%)|Annual depreciation rate (%)|
|House and Building|20-35|5%|2.71-4.75%|
|Machinery equipment|10|5%|9.50%|
|Electronic equipment|3-5|5%|19.00-31.67%|
|Transportation equipment|4-5|5%|19.00-23.75%|
|Other equipment|5-10|5%|9.5-19.00%|

(4) Impairment testing of fixed assets and provision for impairment
At the end of the Reporting Period, the Company carries out a review on fixed assets. If the following conditions exist, the Company shall value the recoverable amount of fixed assets in order to determine whether there is any
impairment of fixed assets. For fixed assets with recoverable amount falling below the carrying amount, the
Company will make a provision for impairment loss on fixed asset equals to an amount of the difference between
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) the recoverable amount and the carrying amount. Provision is made based on a single item basis, and based on a group of assets to which the assets belong to if it is hard to estimate the recoverable amount of the single assets. The impairment provision cannot be reversed in the period of duration of the assets once it is provided.
①There is a significant decrease in the market price of fixed assets. Such decrease is beyond any decrease to the large extent in the market price as time goes by or any expected decrease from normal use of fixed assets;
②Fixed assets are obsolete and damaged;
③There is a significant negative change to the intended use of fixed assets, such as idleness or forthcoming idleness of the fixed assets, termination or restructuring of the operating business to which the fixed assets belong to and disposal of fixed assets earlier than the end of its useful life, thereby resulting in negative influence on the Company;
④There is a significant current or recent change in the economic, technological and legal environment in which the Company operates and in the market in which fixed assets are, thereby resulting in negative influence on the Company;
⑤There is a significant increase in the market interest rate or return on investment in other markets, posing a potential impact on the discount rate on the calculation of the present value of the estimated future cash flows, thereby resulting in significant decrease in recoverable amount of fixed assets;
⑥There is evidence from internal reports of the enterprise that the economic benefits of the fixed assets have been lower or will be lower than expected, for example, the net cash flows or operating profits (or losses) of the fixed assets are far lower (or higher) than the expected amount;
⑦Other circumstances showing an indication of impairment of fixed assets.
(5) Other explanation
Nil
16. Construction in process
(1) Classification of construction in process
Construction in process will calculate base on the category while project approved and initiated. Pricing of construction in progress: To determine construction costs based on the actual occurrence of expenditures. Self-operated projects are measured with direct materials, direct salary and direct construction expenses; contract projects are measured with the project contract amount payables; equipment installment projects are measured with the value of installed equipments, installment fees and occurred expenses for trial operation of projects. Costs of construction in progress also include borrowing expenses and exchange gains and losses which shall be capitalized.
(2) Standard and timing of converting projects under construction into fixed assets
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
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) to the difference of the original value of fixed assets after final accounting is completed upon completion of projects; however, the original depreciation is not adjusted.
(3) Recognition standards and accrual method of impairment provision for construction in process: The Company carries out a comprehensive inspection of projects under construction at the conclusion of each year. Where there is an indication of impairment, the recoverable amount is estimated and impairment is provided on the basis of the difference between the amount recoverable by a project and the carrying amount of such project. Impairment provision is not reversed during the period of duration of the assets once it is provided.
17. 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:
① Capital expenditure has been occurred;
② Borrowing costs have been occurred;
③Acquisition or construction necessary for the assets to come into an expected usable state has been carried out. (2) Period of capitalization of borrowing costs
The borrowing costs in relation to acquisition or construction of fixed assets, investment properties and inventories, incurring before the assets reach an expected usable state or saleable state, are recorded in the costs of the assets when the above conditions of capitalization are met. When acquisition or construction of fixed assets undergo abnormal suspension, and the suspension lasts for more than 3 months consecutively, then the capitalization of suspension borrowing ceases and will be recognized as current expenses, until the acquisition or construction of assets start again. When the expected usable state or saleable state is achieved, capitalization of borrowing costs ceases, and the borrowing costs incurring subsequently are directly recorded into financial expenses in the period when they are occurred.
(3) Capitalize cost suspension
When acquisition or construction of fixed assets undergo abnormal suspension, and the suspension lasts for more than 3 months consecutively, then the capitalization of suspension borrowing ceases and will be recognized as current expenses, until the acquisition or construction of assets start again. When the expected usable state or saleable state is achieved, capitalization of borrowing costs ceases, and the borrowing costs incurring subsequently are directly recorded into financial expenses in the period when they are occurred.
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) (4) Calculation of capitalized amounts of borrowing costs
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 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. 18. Biological assets
Nil
19. Oil/gas assets
Nil
20. Intangible assets
(1) Measurement of intangible assets
The intangible assets of the Company include land use rights 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.
Expenditure in the research stage of the intangible assets with independent research and development should be included in the profit or loss for the current period in which they are occurred; expenditure in the development stage should be recognized as intangible assets (patent technologies and non-patent technologies) when all of the following conditions are met:
①It is technically feasible that the intangible assets are completed for the purpose of their uses or sales;
②The Company has an intention to complete the intangible assets for their uses or the sale;
③Ways of creating economic benefits by intangible assets include proof of existing market of the products manufactured by use of intangible assets or the existing market of intangible assets and the proof of the use if the intangible assets are only for theCompany’s internal use;
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)④The Company has sufficient technical and financial resources and other supporting resources to complete the research and development of such intangible assets and are capable of using or selling such intangible assets;⑤Expenditure occurred in the development stage of such intangible assets can be accurately calculated;
⑥The cycle of the product produced with the intangible assets is above one year.
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).
(2) Service life estimation for intangible assets with limited service life
||||
|-|-|-|
|Item|Service life expected|Basis|

(3) Determination basis for intangible assets with uncertain service life
(4) Withdrawal of impairment of intangible assets
The Company tests impairment of the intangible assets with indefinite benefit years such as goodwill annually and estimates their recoverable amounts and impairment of the intangible asset is provided at the difference between the estimated recoverable amount and the carrying amount of such intangible assets.
A year-end review is conducted to other intangible assets. When there is an indication of impairment, the recoverable amount is estimated and impairment of the intangible asset is provided at the difference between the estimated recoverable amount and the carrying amount of such intangible assets. The impairment provision is not reversed during the duration of the assets once it is provided.
①The intangible assets have been replaced by other new technology so that there is a material adverse effect on their capacity to generate economic benefits for the Company;
②The market value has fallen substantially in the current period and is not expected to recover in the remaining amortization period;
③ The intangible assets have exceeded the term protected by laws but some of them can still be used;
④Other circumstances sufficient to prove that impairment has been made actually.
(5) Divide the specific standards research stage and development stage
(6) Calculation of expenditure for internalR&D projects
21. Amortization of long-term prepaid 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.
22. Assets transfer with repurchase condition attached
Nil
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) 23. Estimated liability
An obligation related to a contingency, such as guarantees provided to outsiders, pending litigations or arbitrations, 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:
(1) Recognition standards for estimated liability
①the obligation is a present obligation of the Company;
② It is Contingent that an outflow of economic benefits will be required to settle the obligation;
③the amount of the obligation can be measured reliably.
(2) Measurement method for estimated liability
Measure on the basis of the best estimates of the expenses necessary for paying off the contingencies
On the balance sheet date, the carrying amount of estimated liabilities is reviewed. If there is obvious evidence that the carrying amount cannot actually reflect the current best estimates, then the carrying amount is adjusted according to the current best estimates.
24. Share-based payment and equity instrument
(1) Category of share-based payment
Nil
(2) Recognition method for fair-value of equity instrument
Nil
(3) Basis of best estimation for vesting equity instrument
Nil
(4) Relevant accounting treatment for implementation, amendment and termination of shares payment plan
Nil
25. Shares of the Company repurchased
Nil
26. Revenue
(1) Detail judgment standards for recognition of selling goods revenue
①the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;
②the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
③the amount of revenue can be measured reliably;
④ It is Contingent that the associated economic benefits will flow into the Company;
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)⑤related cost that occurred or to be occurred can be measured reliably.
Time point of revenue realization for domestic sales revenue: The Company delivers goods according to orders. On the accounting date as agreed with purchaser, the Company checks the goods that the purchaser has received and inspected during the period from previous accounting date to this accounting date. After such check between both parties, relevant risk or remuneration shall be transferred to the purchaser. The Company issues invoice to purchaser according to the variety, quantity and amount as recognized in the aforesaid check, and realizes sales revenue on the accounting date.
The Company realizes sales revenue in respect of export overseas sales on the following time point: upon examination by the custom, the Company realizes sales revenue according to the export date as set out on the custom clearance paper.
(2) Recognition of revenue of assets using right abalienation
Revenue from use by others of enterprise assets shall be recognized only when the associated economic benefit can flow into the Company, and the amount of revenue can be measured reliably.
(3) Basis of recognition of labor revenue providing
Revenue from the rendering of services shall be recognized only when all of the following conditions are satisfied: the amount of revenue and costs occurred or to be occurred for the transaction involving the rendering of services can be measured reliably; the associated economic benefits can flow into the Company; the stage of completion of the transaction can be measured reliably.
(4) Recognition basis and method of construction progress completion while recognize revenue from labor service providing and from construction contract by percentage of completion method
27. Government Subsidies
(1) Category
The government subsidy is divided into government subsidy related to profits and government subsidy related to assets.
(2) Accounting policy
The government subsidies pertinent to assets mean the government assts that are obtained by the Company used for purchase or construction, or forming the long-term assets by other way; and government subsidies pertinent to income refers to all the government subsidies except those pertinent to assets.
Asset-related government subsidies are recognized as deferred income, and are allocated evenly over the useful life of related assets and are included in the current profit and loss.
The government subsidy pertinent to incomes shall be treated respectively in accordance with the circumstances as follows:
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) 1) Those subsidies used for compensating the related future expenses or losses of the Company shall be recognized as deferred income and shall included in the current gains/losses during the period when the relevant expenses are recognized; or
2) Those subsidies used for compensating the related expenses or losses incurred to the Company shall be directly included in current gains/losses.
The government subsidy shall be recognized and measured in the light of the actual amount that received. And government subsidy shall be recognized and measure in the light of receivable amount only the followed conditions required, that is having solid evidence of the subsidy was appropriated by a fix quota standard; and having solid evidence of qualified relevant condition of financial support policy rules; and such financial support funds are expected to received.
28. Deferred income tax assets and deferred income tax liabilities
(1) Basis of affirming the deferred income tax assets
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 at the tax rates applicable in the periods when the Company recovers such assets or settles such liabilities.
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.
(2) Basis of affirming the deferred income tax liabilities
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.
29. Operation leasing, financing leasing
(1) Accounting treatment of operation leasing
Operating lease refers to other lease other than finance lease. The rental expenses of the operating leased assets are recognized as relevant assets costs or expenses over the lease term on a straight-line basis.
(2) Accounting treatment of financing leasing
Finance lease refers to a lease that has transferred in substance all the risks and rewards related to the ownership of an asset, no matter whether the ownership of it has been transferred eventually.
The finance lease assets are carried at the lower of the fair value of the leased assets and the present value of the minimum lease payments on the lease beginning date, and the minimum lease payments are recorded in long-term payables, with the difference as unrecognized finance expenses. The initial direct costs arising from finance lease of the Company are recorded in the value of the leased assets. Depreciation and impairment are provided for the finance lease assets according to the policies of the Company.
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) Where there is reasonable assurance that the ownership of the leased assets can be obtained when the lease term expires, depreciation is provided for the leased assets over the estimated useful life. Otherwise, depreciation is provided for the leased assets at the lower of the lease term and the estimated useful life of the leased assets. The Company allocates the unrecognized financing expenses over the lease term by using the effective interest rate method and in accordance with the principles of borrowing costs.
On the balance sheet date, the Company lists the difference of the long-term payables related to finance lease less unrecognized financing expenses as finance lease payable and non-current liabilities due within one year respectively.
(3) Accounting treatment of sale and leaseback
30. Assets held for sales
(1) Recognition of assets held for sales
Nil
(2) Accounting treatment of assets held for sales
Nil
31. Assets securitization
Nil
32. Hedge accounting
Nil
33. Changes of major accounting policies and accounting estimation
Whether there have changes of major accounting policies and accounting estimation in report period or not□ Yes√ No
Accounting policies and accounting estimation has no changed in reporting period
(1) Changes in accounting policies
Whether have changes in accounting policies in report period
□ Yes√ No
(2) Changes in accounting estimates
Whether have changes in accounting estimates in report period
□ Yes√ No
34. Error correction of previous accounting
Whether has error correction of previous accounting occurred in this period
□ Yes√ No
No error correction of previous been found
(1) Retrospective Restatement
Is there has errors of previous accounting adopt retrospective restatement in this period
□ Yes√ No
(2) Prospective Application
Is there has errors of previous accounting adopt retrospective restatement in this period
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)□ Yes√ No
35. Other major accounting policy, accounting estimation and preparation method for financial statement (1) Goodwill
In the business combination not under the same control, the difference of the merger cost in excess of the fair value of net identifiable assets of the acquired party is recognized as the goodwill.
Goodwill listed alone in financial statement, while conducting impairment testing, amortized book value of the goodwill to assets group or assets combination benefit from synergy effect of expected enterprise combination. If the recoverable amount of assets group or assets combination, that with goodwill amortized, lower its book value, than recognized as impairment losses correspondingly. Impairment losses should deducting book value of goodwill, amortized to assets group or assets combination, than deducting other book value of vary assets by proportion in line with ratio of book value of vary assets other than goodwill in such assets group or assets combination.
(2)Employees’ remuneration
Employees’ remuneration includes:employees’ salaries, bonus, allowance and subsidies; welfare provision; social insurance such as pension insurance, unemployment insurance and work injury insurance etc.; housing reserve fund, labor union expenditures and staff education expenditures; benefits not in monetary value; compensation paid for the termination of employment contracts with employees; relevant expenditures relating to the provision of other services by employees.
In the accounting period in which employees provide service to the Company, payableemployees’ remuneration is recognized as liabilities. Other than the compensation for termination of the labor relationship with employees, theemployees’ remuneration is recorded in fixed assets costs, intangible assets costs, product costs or labor costs respectively according to the beneficiaries of the services provided by employees. Theemployees’ remuneration other than the above is directly recorded in the profit or loss.
Prior to the expiry of the labor contracts of employees, the compensation for termination of the labor relationship with employees or encouraging employees to accept to be laid off is recognized as estimated liabilities and recorded in the profit or loss.
(3) Accounting for income tax
The Company applies the balance sheet liability method for accounting of income tax. Current income tax and deferred income tax is recorded in the profit or loss as income tax expenses or gains, but the income tax arising from the following conditions is excluded:
1) Business combination;
2) The transaction events directly recognized in theowner’s equity.
(V) Taxation
1. Major taxes and tax rates
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||
|-|-|-|
|Tax|Basis|Tax rate|
|||Tax rate for sale of goods is 17%; rate for exported commodities|
|VAT|Sale of goods|is stipulated by the state with declaration of export tax rebate,|
|||rate of tax may be ―exempted, credited and refunded‖|
|Operation tax|Revenue from lease|5%|
|City maintaining & construction tax|Turnover tax payable|7%|
|Corporation income tax|Taxable income|15% for the parent company|
|Educational surtax|Turnover tax payable|5%|

The income tax rates applicable to each Branch Company or plant
The Company and its subsidiaries Weifu Jinning, Weifu Diesel System, Weifu Leader, Ningbo Weifu Tianli Supercharging Technique Co., Ltd. (hereinafter referred to as Weifu Tianli) and Wuxi Weifu-Autocam Fine Machinery Co. Ltd. (hereinafter referred to as Weifu-Autocam) are all high-tech enterprises, and enjoy a preferential tax rate of15% according to relevant state regulations on income taxation.
The income tax of Weifu Mashan Pump Glib Co., Ltd. (hereinafter referred to as―Weifu Mashan‖), Wuxi WeifuChang’an Co., Ltd.(hereinafter referred to as―WeifuChang’an‖), Wuxi Weifu International Trade Co. Ltd.(hereinafter referred to as―Weifu InternationalTrade‖), Jiangsu Weifu Nano Technology Co., Ltd. (hereinafter referred to as―WeifuNano‖), Wuxi Weifu ITM Supercharging Technique Co., Ltd.(hereinafter referred to as―Weifu ITM‖), Wuxi Weifu Schmidt Power System Spare Parts Co., Ltd.(hereinafter referred to as―Weifu Schmidt‖), Chaoyang Weifu Jialin Machinery Manufacture Co., Ltd.(hereinafter referred to as―Weifu Jialin‖), Kunming Xitong Machinery Co., Ltd.(hereinafter referred to as―Kunming Xitong‖) and Anhui Weifu Tianshi Machinery Co., Ltd. (hereinafter referred to as―WeifuTianshi‖) is25%.
2. Tax preference and approvals
||||||
|-|-|-|-|-|
|No.|Enterprise|Certification Serial ofHi-Tech Enterprise|Issuring or (receiving) dated|Expiration|
|1|Parent company|GF201132000279|2011-9-9|3-year|
|2|Nanjing Jinning|GF201132000048|2011-9-9|3-year|
|3|Weifu Diesel System|GF201132000112|2011-9-9|3-year|
|4|Weifu Leader|GF201132000006|2011-9-9|3-year|
|5|Weifu Tianli|GF201133100022|2011-9-6|3-year|
|6|Weifu-Autocam|GR201132001080|2011-11-8|3-year|

 3. Other explanation
Nil
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
VI. Enterprise consolidation and consolidated financial statements
1. Subsidiary
(1) Subsidiaries acquired by means of establishment or investment
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||The balance after the parent|
|||||||||||||Amount in|company’s owner’s equity|
|||||||||||||minority|writing down the excess of|
||||||||Balance of||Voting|Statements||interest used|the current loss undertaken|
|||Registra||||Investment||Holding||||||
||||Busines|Registered|Business||other items||right|combined|Minority’s|for writing|by minority shareholders of|
|Name|Type|tion||||amount actual at||proportion||||||
||||s nature|capital|scope||materially||proportion|(Y/N)|equity|down|the subsidiary over the share|
|||place||||period-end||(%)||||||
||||||||forming net||(%)|||minority|enjoyed by minority|
||||||||investment to|||||gain and|shareholders in the original|
||||||||subsidiary|||||loss|owner’s equity of the|
||||||||||||||subsidiary|
||||||Accesso|||||||||
||||||ries and|||||||||
||Wholly-||||matchin|||||||||
||||||g parts|||||||||
|Weifu|owned|Wuxi|Manufa|45,000,049.36|of|48,693,380.51||100%|100%|Y||||
|Mashan|subsidia||cturing|||||||||||
||||||internal|||||||||
||ry|||||||||||||
||||||combust|||||||||
||||||ion|||||||||
||||||engine|||||||||
||||||Accesso|||||||||
||||||ries and|||||||||
||||||matchin|||||||||
||Wholly-|||||||||||||
|Weifu|||||g parts|||||||||
||owned||Manufa|||||||||||
|Chang’a||Wuxi||60,000,000.00|of|70,902,037.30||100%|100%|Y||||
||subsidia||cturing|||||||||||
|n|ry||||internal|||||||||
||||||combust|||||||||
||||||ion|||||||||
||||||engine|||||||||
||Controll|||||||||||||
|Weifu|ing||Manufa||Nano|||||||||
|||Wuxi||30,000,000.00||24,000,000.00||80%|80%|Y|5,506,789.17|||
|Nano|subsidia||cturing||material|||||||||
||ry|||||||||||||
||Wholly-||||Accesso|||||||||
|Weifu||||||||||||||
|Diesel|owned|Wuxi|Manufa|300,000,000.00|ries and|260,187,500.00||100%|100%|Y||||
||subsidia||cturing||matchin|||||||||
|System||||||||||||||
||ry||||g parts|||||||||

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||of||||||
||||||internal||||||
||||||combust||||||
||||||ion||||||
||||||engine||||||
||||||Accesso||||||
||||||ries and||||||
||Controll||||matchin||||||
||||||g parts||||||
|Weifu|ing||Manufa||||||||
|||Wuxi||48,000,000.00|of|31,680,000.00|66%|66%|Y|10,721,595.09|
|Schmidt|s ubsidia||cturing||||||||
||||||internal||||||
||ry||||||||||
||||||combust||||||
||||||ion||||||
||||||engine||||||
||||||Accesso||||||
||||||ries and||||||
||||||matchin||||||
||Controll||||||||||
|Weifu|ing|Quanjia|Manufa||g parts||||||
|||||10,000,000.00|of|5,200,000.00|52%|52%|Y|2,446,361.71|
|Tianshi|subsidia|o|cturing||||||||
||ry||||internal||||||
||||||combust||||||
||||||ion||||||
||||||engine||||||

Other explanation on subsidiary obtained by establishment or investment:
(2) Subsidiaries acquired by business combination under the common control
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||Balance between the|
||||||||Balance of|||||||
|||||||||||Statements|||owners’ equity in parent|
||||||||other items|||||Amount in||
||||||||||||||offsetting the current losses|
||||||||which|||||minority||
|Name of|Type of|||||Actual|actually|Holding|Voting|combined||interest|attributable to minority|
|||Register|Busines|Registered|Business|investment|||||Minority’s||shareholders of subsidiaries|
|subsidia|subsidia||||||constitutes|proporti|proportion|||available to||
|||ed place|s nature|capital|scope|amount at|||||equity||over the share of beginning|
|ry|ry||||||net|on%|%|(Y/N)||offset minority||
|||||||period-end|||||||owner’s equity in such|
||||||||investment|||||gains and|subsidiaries by the minority|
||||||||in|||||losses|shareholders|
||||||||subsidiaries|||||||
||Controll||||Accesso|||||||||
|Weifu|ing|Nanjing|Manufa|346,286,825.80|ries and|178,639,593.52||80%|80%|Y|151,237,665.60|||
|Jinning|subsidia||cturing||matchin|||||||||
||ry||||g parts|||||||||

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||of||||||
||||||internal||||||
||||||combust||||||
||||||ion||||||
||||||engine||||||
||Controll||||||||||
|Weifu|ing||Manufa||Cleaner,||||||
|||Wuxi||502,596,300.00||460,113,855.00|94.81%|94.81%|Y|47,995,956.78|
|Leader|subsidia||cturing||muffler||||||
||ry||||||||||
|Weifu|Controll||||||||||
||||||Internati||||||
|Internati|ing||||||||||
|||Wuxi|Trading|30,000,000.00|onal|30,999,996.22|100%|100%|Y||
|onal|subsidia||||||||||
||||||trade||||||
|Trade|ry||||||||||

Other explanation on subsidiary obtained by enterprise merger under same control:
(3) Subsidiaries acquired by business combination not under the common control
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Statements|||Balance between the owners’|
||||||||||||||equity in parent offsetting the|
||||||||Balance ofother items|||||||
|||||||||||||Amount in|current losses attributable to|
|Name of|Type of|Registere|Business|Registered capital|Business|Actual investmentamount atperiod-end|which actually|Holdingproportion%|Voting|combined|Minority’s|minority interestavailable to offsetminority gains|minority shareholders ofsubsidiaries over the share ofbeginning owner’s equity in such|
|subsidiary|subsidiary|d place|nature||scope||constitutes net||proportion%||equity|||
||||||||investment insubsidiaries|||(Y/N)||and losses|subsidiaries by the minority|
||||||||||||||shareholders|
||||||Accesso|||||||||
||||||ries and|||||||||
||||||matchin|||||||||
||Wholly-|||||||||||||
|Weifu|owned||Manufa||g parts|||||||||
|||Wuxi||160,000,000.00|of|167,000,000.00||100%|100%|Y||||
|ITM|subsidia||cturing|||||||||||
||ry||||internal|||||||||
||||||combust|||||||||
||||||ion|||||||||
||||||engine|||||||||
||||||Accesso|||||||||
||Controll||||ries andmatchin|||||||||
|Weifu|ing|Ningbo|Manufa|104,690,000.00|g parts|90,229,100.00||51%|51%|Y|95,211,804.32|||
|Tianli|subsidia||cturing|||||||||||
||||||of|||||||||
||ry|||||||||||||
||||||internal|||||||||
||||||combust|||||||||

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||ion||||||
||||||engine||||||
||||||Accesso||||||
||||||ries and||||||
||||||matchin||||||
||Controll||||||||||
||||||g parts||||||
|Weifu|ing|Chaoyang|Manufa|8,000,000.00|of|4,685,868.73|51%|51%|Y|6,609,162.35|
|Jialin|subsidia||cturing||||||||
||||||internal||||||
||ry||||combust||||||
||||||ion||||||
||||||engine||||||
||||||Accesso||||||
||||||ries and||||||
||Controll||||matchin||||||
|Kunmin|||||g parts||||||
||ing|Kunmin|Manufa||||||||
|g||||4,000,000.00|of|5,471,793.17|70%|70%|Y|2,527,559.86|
||subsidia|g|cturing||||||||
|Xitong|||||internal||||||
||ry||||||||||
||||||combust||||||
||||||ion||||||
||||||engine||||||
||Controll||||Auto||||||
|Weifu-A|ing||Manufa||parts||||||
|||Wuxi||US$ 10,000,000||66,349,490.11|51%|51%|Y|74,631,401.79|
|utocam|subsidia||cturing||Auto||||||
||ry||||parts||||||

Other explanation on subsidiary obtained by enterprise merger not under the same control:
According to the equity transfer agreement singed between the Company and Autocam Corporation, the one percent equity of Weifu Autocam, hold by Autocam Corporation, was transferred to the Company; capital contributed by the Company accounted for 51 percent of the register capital of Weifu Autocam, thus comes to the controlling subsidiary of the Company.
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) 2. Special purposes entity or operation entity where controlling right is formed under entrusted operation or leasing
In RMB
||||
|-|-|-|
||Main business contact with the|Balance of main assets and liability at period-end recognized in|
|Name|||
||Company|consolidated statement|

Other explanation for special purposes entity or operation entity where controlling right is formed under entrusted operation or leasing:
3. Explanation for changes in consolidation scope
Explanation for changes in consolidation scope:
||||
|-|-|-|
|Name|Consolidate in the Year(Y/N)|Consolidate last year (Y/N)|
|Weifu Mashan|Y|Y|
|Weifu Chang’an|Y|Y|
|Weifu Nano|Y|Y|
|Weifu Diesel System|Y|Y|
|Weifu Jinning|Y|Y|
|Weifu Leader|Y|Y|
|Weifu International Trade|Y|Y|
|Weifu Schmidt [1]|Y|Y|
|Weifu ITM|Y|Y|
|Weifu Tianli|Y|Y|
|Weifu Jialin|Y|Y|
|Weifu Tianshi|Y|Y|
|Kunming Xitong|Y|Y|
|Weifu-Autocam [2]|Y|N|

√Applicable□ Not applicable
Comparing with last year, one unit increased in this year (period), reasons are:
[Note1]
Weifu Schmidt: Weifu Schmidt is a Sino-foreign joint venture jointly set up by the Company, Germany-based Schmitter Group Aktiengesellschaft and Shanghai Weishi Automobile Technology Development Co., Ltd., which obtained the No. 320200400033433 Corporate Business License issued by Wuxi Administration for Industry and Commerce, Jiangsu Province on Sept. 17, 2009. The registered capital of this company was RMB 18 million, where the Company invested RMB 8.10 million, representing45% of the registered capital; Germany-based Schmitter Group Aktiengesellschaft invested RMB 7.20 million, representing40% of the registered capital; Shanghai Weishi Automobile Technology Development Co., Ltd. invested RMB 2.70 million, representing15% of the registered capital. The RMB 2.70 million contributions from the Company during the year was the first contribution. The Company was the first largest shareholder of this company and held majority of voting rights in its board of directors; therefore, the Company consolidated it into the consolidated financial statements as a subsidiary since the date of its inception.
In 2013, the 15 percent shares of Weifu Schmidt held by Shanghai Weishi Automobile Technology Development Co., Ltd were transferred by the Company, and the Company increase capital for Weifu Schmidt after that, thus, the Company accounts for 66 percent in register capital of Weifu Schmidt after capital increased.
[Note2]
Weifu-Autocam: In line with the equity transfer agreement signed between the Company and Autocam Corporation, one percent equity hled by Autocam Corporation was transferred to the Company, thus the Company takes 51 percent shares of the register capital of Weifu-Autocam, which cames the controlling subsidiary of the Company. The Company bring Weifu-Autocam in consolidation statement scope since being subsidiary of the Company.
Comparing with last year, unit decreased in this year (period), reasons are:
4. Entities newly included in consolidate scope during the reporting period and entities ceasing to be
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) included in consolidate scope during the reporting period
Subsidiaries, special purposes entities, operation entity where controlling right is formed under entrusted operation or leasing newly included in consolidation scope during the period
In RMB
||||
|-|-|-|
|Name|Net assets as at period-end|Net profit for the period|
|Weifu-Autocam|152,505,786.08|22,408,746.65|

 Subsidiaries, special purposes entities, operation entity where controlling right is formed under entrusted operation or leasing ceasing to be included in consolidation scope during the period
In RMB
||||
|-|-|-|
|||Net profit from the year-begin to|
|Name|Net assets as at the disposal date||
|||the disposal date|

Other explanation on entities newly included in consolidation scope and entities ceasing to be included in consolidation scope: Weifu-Autocam: In line with the equity transfer agreement signed between the Company and Autocam Corporation, one percent equity hled by Autocam Corporation was transferred to the Company, thus the Company takes 51 percent shares of the register capital of Weifu-Autocam, which cames the controlling subsidiary of the Company. The Company bring Weifu-Autocam in consolidation statement scope since being subsidiary of the Company.
5. Business combination under the common control during the reporting period
In RMB
|||||||
|-|-|-|-|-|-|
||Basis for||Consolidated||Consolidated|
|||||Consolidated netprofit from thisperiod toconsolidation date||
||determination of|Actual controller|income for the||operating activities|
|Party to be consolidated|business|under the common|period from the||cash flow from this|
||combination under|control|period-begin to||period to|
||the common control||consolidation date||consolidation date|

 Other explanation for business combination under the common control:
6. Business combination not under the common control during the reporting period
In RMB
||||
|-|-|-|
|Party to be consolidated|Amount of goodwill|Calculation method for goodwill|

Other explanation for business combination not under the common control:
Achieved enterprise combination by multiple trading on step-by-step basis and obtained controlling rights in the Period
□Applicable√ Not applicable
7. Loss of subsidiaries due to disposal of equity interests without controlling rights during the
reporting period
||||
|-|-|-|
|Subsidiary|Disposal date|Recognition method for gains and losses|

 Other explanation for loss of subsidiaries due to disposal of equity interests without controlling rights
Dispose investment for subsidiary by multiple trading on step-by-step basis and losing controlling rights lasting to the Period□Applicable√ Not applicable
8. Counter purchase occurred during the reporting period
|||||
|-|-|-|-|
||||Calculation method for|
||Basis for determination of|Determination method for|goodwill recognized in|
|Backdoor||||
||counter purchase|consolidated costs|consolidation or recorded in|
||||current gains and losses|

 Other explanation for counter purchase:
9. Absorption consolidation occurred during the reporting period
In RMB
||||||
|-|-|-|-|-|
|Types of absorption consolidation|Major assets consolidated||Major liabilities consolidated||
|Absorption consolidation under common control|Item|Amount|Item|Amount|
|Absorption consolidation not under common|||||
||Item|Amount|Item|Amount|
|control|||||

Other explanation for absorption consolidation:
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) 10. Translation exchange rates for items in major statements of overseas operating entities
VII. Notes to major items in consolidated financial statements
1. Monetary capital
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing amount|||Opening amount|||
|Item|Amount in|Converting||Amount in|Converting||
||||Amount in RMB|||Amount in RMB|
||foreign currency|rate||foreign currency|rate||
|Cash:|--|--|1,127,043.52|--|--|481,336.46|
|RMB|--|--|1,127,043.52|--|--|481,336.46|
|Bank savings:|--|--|2,287,612,576.92|--|--|2,432,322,361.62|
|RMB|--|--|2,287,612,576.92|--|--|2,432,271,102.98|
|EUR||||2,427.47|8.3176|20,190.73|
|USD||||4,942.79|6.2855|31,067.91|
|Other monetary fund:|--|--|158,816,051.96|--|--|167,910,521.28|
|RMB|--|--|158,816,051.96|--|--|167,910,521.28|
|Total|--|--|2,447,555,672.40|--|--|2,600,714,219.36|

 Separate explanation is required for accounts with restricted application purposes, deposited overseas and of potential recovery risks arising from pledge, mortgage or frozen:
||||
|-|-|-|
|Item|2013-12-31|2012-12-31|
|Bank acceptance bill, L/C and other collateral|158,816,051.9|6 167,910,521.28|

 2. Transactional financial assets
(1) Transactional financial assets
In RMB
||||
|-|-|-|
|Item|Fair value as at period-end|Fair value as at period-begin|

 (2) Realization of restricted transactional financial assets
In RMB
||||
|-|-|-|
|Item|Other significant restrictions on restriction||
|||Amount as at period-end|
||conditions for sale or realization||

(3) Explanation for hedge instruments and related hedge transactions
3. Notes receivables
(1) Classification of notes receivables
In RMB
||||
|-|-|-|
|Types|Closing amount|Opening amount|
|Bank acceptance bill|1,016,340,233.40|855,360,248.22|
|Commercial acceptance bill|73,940,000.00|43,360,000.00|
|Total|1,090,280,233.40|898,720,248.22|

 (2) Notes receivable already pledged by the Company at the end of the period
In RMB
||||||
|-|-|-|-|-|
|Issuer|Issue date|Expiring date|Amount|Notes|
|Weichai Power Co., Ltd||2014-05-29|80,000,000.00|Total of multiple notes|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||||
|-|-|-|-|-|
|Dongfeng Automobile Company||2014-03-17|8,563,000.00|Total of multiple notes|
|Nanjing IVECO Automobile Co., Ltd.||2014-04-29|7,500,000.00|Total of multiple notes|
|Anhui Jianghuai Automobile Co., Ltd.||2014-02-19|7,000,000.00|Total of multiple notes|
|Total|--|--|103,063,000.00|--|

(3)Transfer of notes to notes receivable due to theissuer’s impossibility to perform its obligations, and un-matured notes endorsed to others by the Company as at the period-end
Notes transfer to account receivable due to weak performance of drawer
In RMB
||||||
|-|-|-|-|-|
|Issuer|Issue date|Expiring date|Amount|Notes|

Explanation:
Un-matured notes endorsed to others by the Company
In RMB
||||||
|-|-|-|-|-|
|Issuer|Issue date|Expiring date|Amount|Notes|
|Zhejiang Yuanjing Auto Parts Co., Ltd.||2014-04-17|94,199,648.00|Total of multiple notes|
|Anhui Quanchai Engine Co., Ltd.||2014-03-05|28,200,000.00|Total of multiple notes|
|Weichai Power Co., Ltd||2014-04-29|21,392,954.57|Total of multiple notes|
|Hangzhou Yiwei Automobile Industrial Co., Ltd.||2014-05-29|20,006,959.00|Total of multiple notes|
|Dongfeng Chaoyang Chaochai Engine Co., Ltd.||2014-05-23|11,500,000.00|Total of multiple notes|
|Total|--|--|175,299,561.57|--|

Explanation:
Explanation for commercial acceptance notes discounted or pledged:
Among the note receivable in period-end, RMB 103,063,000 bank acceptance bill was pledged for issuing of note payable
4. Dividend receivables
In RMB
||||||||
|-|-|-|-|-|-|-|
|||Increase in|Decrease in this||Reasons of|Depreciation for|
|Item|Opening amount|||Closing amount|||
|||this period|period||unrevoked|relevant account or not|
|Dividend receivables|||||||
||107,616,777.91||84,679,731.90|22,937,046.01|||
|aging within 1 year|||||||
|Including:|--|--|--|--|--|--|
|Bosch Diesel System|107,616,777.91||84,679,731.90|22,937,046.01||N|
|Including:|--|--|--|--|--|--|
|Total|107,616,777.91||84,679,731.90|22,937,046.01|--|--|

Explanation:
5. Interests receivables
(1) Interests receivables
In RMB
||||||
|-|-|-|-|-|
|Item|Opening amount|Increase in this period|Decrease in this period|Closing amount|
|Interest of bank savings|37,619,858.83|13,818,775.75||51,438,634.58|
|Total|37,619,858.83|13,818,775.75||51,438,634.58|

 (2)Overdue interests
In RMB
||||
|-|-|-|
|Loan provider|Times overdue (days)|Overdue interests|

(3)Explanation forinterests’ receivables
6. Account receivables
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) (1) Classified by categories
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing amount||||Opening amount||||
||Book balance||Bad debt reserve||Book balance||Bad debt reserve||
|Types|||||||||
|||Proport||Propor|||||
|||||||Proporti||Proport|
||Amount|ion|Amount|tion|Amount||Amount||
|||||||on (%)||ion (%)|
|||(%)||(%)|||||
|Account receivable with|||||||||
|single significant|||||||||
|amount and withdrawal|1,073,545.39|0.09%|1,073,545.39|100%|6,919,976.11|0.65%|6,919,976.11|100%|
|bad debt provision|||||||||
|separately|||||||||
|Account receivable of bad debt provision withdrawal by combination|||||||||
|Withdrawal bad debt|||||||||
||1,141,290,547.86|99.75%|8,455,081.77|0.74%|1,043,935,964.74|98.55%|7,543,263.34|0.72%|
|provision by age group|||||||||
|Subtotal of group|1,141,290,547.86|99.75%|8,455,081.77|0.74%|1,043,935,964.74|98.55%|7,543,263.34|0.72%|
|Accounts with single|||||||||
|significant amount and|||||||||
||1,857,615.66|0.16%|1,857,615.66|100%|8,449,350.69|0.8%|8,449,350.69|100%|
|bad debts provision|||||||||
|accrued individually|||||||||
|Total|1,144,221,708.91|--|11,386,242.82|--|1,059,305,291.54|--|22,912,590.14|--|

 Explanation for category of account receivables:
Other accounts receivable with amount in single item above RMB 1 million indicated other accounts receivable with significant amount in single item from which provision for bad debt was still drawn based on account age analysis method, as no objective evi Account receivable with single significant amount and withdrawal bad debt provision separately at period end
√Applicable□ Not applicable
In RMB
||||||
|-|-|-|-|-|
||||Accrual proportion||
|Content of account receivable|Book balance|Bad debt reserve||Reasons|
||||(%)||
|||||The account was too|
|Changzhou Mengfa Fuel Injector Co., Ltd.|1,073,545.39|1,073,545.39|100%||
|||||old to collect|
|Total|1,073,545.39|1,073,545.39|--|--|

Account receivable provided for bad debt reserve under aging analysis method in the groups:
√Applicable□ Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing amount|||Opening amount|||
||Book balance|||Book balance|||
|Age|||||||
|||Proportion|Bad debt reserve||Proportion(%)|Bad debt reserve|
||Amount|||Amount|||
|||(%)|||||
|within 1 year|||||||
|Including:|--|--|--|--|--|--|
|Within 6 months|1,100,786,007.10|96.45%||1,013,297,599.82|97.07%||
|6 months to 1 year|28,212,207.20|2.47%|2,821,220.72|14,021,801.93|1.34%|1,402,180.20|
|Subtotal of within|||||||
||1,128,998,214.30|98.92%|2,821,220.72|1,027,319,401.75|98.41%|1,402,180.20|
|1 year|||||||
|1-2 years|5,575,203.62|0.49%|1,115,040.72|12,213,147.26|1.17%|2,442,629.46|
|2-3 years|3,663,849.35|0.32%|1,465,539.74|1,174,936.75|0.11%|469,974.70|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||||||
|-|-|-|-|-|-|-|
|Over 3 years|3,053,280.5|9 0.27%|3,053,280.59|3,228,478.98|0.31%|3,228,478.98|
|Total|1,141,290,547.86|--|8,455,081.77|1,043,935,964.74|--|7,543,263.34|

 In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable
□Applicable√ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable
□Applicable√ Not applicable
Accounts with single significant amount and bad debts provision accrued individually at end of period
√Applicable□ Not applicable
In RMB
||||||
|-|-|-|-|-|
||||Provision||
|Contents of account receivables|Book balance|Bad debt reserve||Reason for provision|
||||proportion (%)||
|Mianyang Xinchen Engine Co., Ltd.|919,344.77|919,344.77|100%|The account was too old to collect|
|Changchai Wanzhou Diesel Co., ltd|837,472.95|837,472.95|100%|The account was too old to collect|
|Other clients|100,797.94|100,797.94|100%|The account was too old to collect|
|Total|1,857,615.66|1,857,615.66|--|--|

(2) Reversal or recovery of account receivables during the reporting period
In RMB
||||||
|-|-|-|-|-|
||||Accumulated provision of bad||
|Contents of account|Reason for reversal|Basis for determination of||Amounts reversed or|
||||debt reserve before reversal or||
|receivables|of recovery|original bad debt reserve||recovered|
||||recovery||

Provision for bad debt reserve for account receivable with single significant or minor amount but tested for impairment separately as at period-end:
In RMB
||||||
|-|-|-|-|-|
|Contents of account|||||
||Book balance|Bad debt amount|Provision proportion (%)|Reasons|
|receivables|||||

Explanation for account receivable with single minor amount while the risks of the group categorized with similar risk characteristics are relative significant:
(3) Account receivables actually written-off during the reporting period
In RMB
|||||||
|-|-|-|-|-|-|
||||||Arising from|
||Nature of account|Time of|Amount||related|
|Name of the company||||Reason for write-off||
||receivables|write-off|written off||transactions|
||||||(Y/N)|
|||||Old account age and unable||
|Liuzhou Special Diesel Engine Factory|Amount for goods||1,612,018.00||N|
|||||to collected||
|Shaoyang Shenfeng Engine||||Old account age and unable|N|
||Amount for goods||1,589,871.23|||
|Manufacturing Co., Ltd.||||to collected||
|Changzhou Wanzhou Diesel Engine||||Old account age and unable|N|
||Amount for goods||1,500,000.00|||
|Company||||to collected||
|||||Old account age and unable|N|
|Yuejin Light Automobile Co., Ltd.|Amount for goods||1,218,086.88|||
|||||to collected||
|Henan Agricultural Machinery||||Old account age and unable|N|
||Amount for goods||1,000,000.00|||
|Company||||to collected||
|Hubei Duoling Engine Machinery Co.,||||Old account age and unable|N|
||Amount for goods||775,624.61|||
|Ltd.||||to collected||
|Henan Xinxiang Internal-Combustion||||Old account age and unable|N|
||Amount for goods||753,754.25|||
|Engine Plant||||to collected||
|||||Old account age and unable|N|
|Yunnan Jinma Diesel Engine Factory|Amount for goods||579,210.11|||
|||||to collected||
|Dongfeng Nanchong Automobile Co.,|Amount for goods||569,974.38|Old account age and unable|N|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
|||||||
|-|-|-|-|-|-|
|Ltd.||||to collected||
|Guangxi Liuzhou Zhongxing Engine||||Old account age and unable|N|
||Amount for goods||474,895.94|||
|Plant||||to collected||
|Zhejiang Agricultural Machinery||||Old account age and unable|N|
||Amount for goods||457,800.00|||
|Accessories Company||||to collected||
|Jiangmen Zhongyu Suppliers Co., Ltd.|Amount for goods||411,734.00|Cancelled|N|
|||||Old account age and unable|N|
|Changchai Group Jintan Diesel Plant|Amount for goods||375,035.52|||
|||||to collected||
|Fujian Longma Agricultural Vehicles||||Old account age and unable|N|
||Amount for goods||365,169.92|||
|Manufacturing Co., Ltd.||||to collected||
|Kunming Zhong’an Tongjimao Co.,||||Old account age and unable|N|
||Amount for goods||328,425.01|||
|Ltd.||||to collected||
|Beijing Pingyang Road Communication||||Old account age and unable|N|
||Amount for goods||308,588.58|||
|Equipment Co., Ltd.||||to collected||
|||||Old account age and unable|N|
|Other clients|Amount for goods||1,931,663.30|||
|||||to collected||
|Total|--|--|14,251,851.73|--|--|

 Explanation for write-off of account receivables:
(4) Account receivables due from the shareholders holding5% or above voting shares of the Company during the reporting period
In RMB
||||||
|-|-|-|-|-|
||Closing amount||Opening amount||
|Name of the company||Bad debt provision||Bad debt provision|
||Book balance||Book balance||
|||accrual||accrual|

 (5) Top 5 account receivable
In RMB
||||||
|-|-|-|-|-|
||Relationship with the|||Proportion in total|
|Name of the company||Amount|Terms||
||Company|||account receivables (%)|
|Client1|Client|100,164,734.24|Within 1 year|8.75%|
|Client2|Client|93,542,554.80|Within 1 year|8.18%|
|Client3|Client|65,293,611.17|Within 1 year|5.71%|
|Client4|Client|55,725,753.60|Within 1 year|4.87%|
|Client5|Client|55,403,809.25|Within 1 year|4.84%|
|Total|--|370,130,463.06|--|32.35%|

 (6) Account receivables due from related parties
In RMB
|||||
|-|-|-|-|
||Relationship with||Proportion in total account|
|Name of the company||Amount||
||the Company||receivables (%)|
|Bosch Automobile Diesel System Co.,||||
||Associated company|100,164,734.24|8.75%|
|Ltd||||
|Wuxi Weifu Fine Machinery||||
||Associated company|1,180,465.57|0.1%|
|Manufacturing Co., Ltd.||||
|Total|--|101,345,199.81|8.85%|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) (7) Account receivables derecognized
In RMB
||||
|-|-|-|
|Item|De-recognition amount|Gains or losses related to derecognizing|

 (8) As for securities with account receivables as target subject, list the assets and liabilities arising from further involvement
In RMB
|||
|-|-|
|Item|Closing amount|
|Assets:||
|Liabilities:||

7. Other receivables
(1) Disclosure of other receivables by classification
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing amount||||Opening amount||||
||Book balance||Bad debt reserve||Book balance||Bad debt reserve||
|Types|||||||||
|||Proport||Proportio||Proportio||Proportio|
||Amount||Amount||Amount||Amount||
|||ion (%)||n (%)||n (%)||n (%)|
|Other receivable with|||||||||
|single significant amount|||||||||
||3,514,671.20|18.55%|3,514,671.20|100%|2,000,000.00|13.57%|2,000,000.00|100%|
|and withdrawal bad debt|||||||||
|provision separately|||||||||
|Other receivable of bad debt provision withdrawal by combination|||||||||
|Withdrawal bad debt|||||||||
||13,029,135.09|68.78%|1,542,911.12|11.84%|10,342,752.74|70.15%|195,121.22|1.89%|
|provision by age group|||||||||
|Subtotal of group|13,029,135.09|68.78%|1,542,911.12|11.84%|10,342,752.74|70.15%|195,121.22|1.89%|
|Other receivable with|||||||||
|single minor amount|||||||||
||2,400,000.00|12.67%|2,400,000.00|100%|2,400,000.00|16.28%|2,400,000.00|100%|
|while withdrawal bad|||||||||
|debt provision separately|||||||||
|Total|18,943,806.29|--|7,457,582.32|--|14,742,752.74|--|4,595,121.22|--|

 Explanation for category of other receivables:
Other accounts receivable with amount in single item above RMB 1 million indicated other accounts receivable with significant amount in single item from which provision for bad debt was still drawn based on account age analysis method, as no objective evidence showed that the potential depreciation would exceed provision for bad debt drawn by age analysis.
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period
√Applicable□ Not applicable
In RMB
||||||
|-|-|-|-|-|
|Contents of other receivables|Book balance|Bad debt amount|Provision proportion (%)|Reason|
|Jiangsu Techniques and Technology||||The account was too oldto collect|
||2,000,000.00|2,000,000.00|100%||
|Center|||||
|American HESS Company|1,514,671.20|1,514,671.20|100%|Bankruptcy|
|Total|3,514,671.20|3,514,671.20|--|--|

In combination, other accounts receivable whose bad debts provision was accrued by age analysis
√Applicable□ Not applicable
In RMB
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||||||
|-|-|-|-|-|-|-|
||Closing amount|||Opening amount|||
||Book balance|||Book balance|||
|Age|||||||
|||Proporti|Bad debt reserve||Proporti|Bad debt reserve|
||Amount|||Amount|||
|||on (%)|||on (%)||
|Within 1 year|||||||
|Including:|||||||
|Within 6 months|8,430,798.98|64.71%||9,504,648.34|91.9%||
|6 months to 1 year|510,368.30|3.92%|51,036.83|428,887.90|4.15%|42,888.80|
|Subtotal of within 1 year|8,941,167.28|68.63%|51,036.83|9,933,536.24|96.05%|42,888.80|
|1-2 years|3,180,701.40|24.41%|636,140.28|219,151.51|2.12%|43,830.30|
|2-3 years|85,887.34|0.66%|34,354.94|136,104.79|1.31%|54,441.92|
|Over 3 years|821,379.07|6.3%|821,379.07|53,960.20|0.52%|53,960.20|
|Total|13,029,135.09|--|1,542,911.12|10,342,752.74|--|195,121.22|

 In combination, withdrawal proportion of bad debt provision based on balance proportion for other account receivable
□Applicable√ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable
□Applicable√ Not applicable
Other receivable with single minor amount while withdrawal bad debt provision separately at end of period
√Applicable□ Not applicable
In RMB
||||||
|-|-|-|-|-|
||||Provision||
|||Bad debtreserve|||
|Contents of other receivables|Book balance||proportion|Reason for provision|
||||(%)||
|Nanjing University|600,000.00|600,000.00|100%|The account was too old to collect|
|Southeast University|600,000.00|600,000.00|100%|The account was too old to collect|
|Nanjing University of Science and Technology|600,000.00|600,000.00|100%|The account was too old to collect|
|Nanjing University of Technology|600,000.00|600,000.00|100%|The account was too old to collect|
|Total|2,400,000.00|2,400,000.00|--|--|

(2) Reversal or recovery of other receivables during the reporting period
In RMB
||||||
|-|-|-|-|-|
|||Basis for determinationofof original bad debt|Accumulated provision||
||Reason for reversal||of bad debt reserve|Amounts reversed or|
|Contents of other receivables|||||
||recovery||before reversal or|recovered|
|||reserve|recovery||

Provision for bad debt reserve for other receivable with single significant or minor amount but tested for impairment separately as at period-end:
In RMB
||||||
|-|-|-|-|-|
|Contents of account|||||
||Book balance|Bad debt amount|Provision proportion (%)|Reason|
|receivables|||||

Explanation for other receivable with single minor amount while the risks of the group categorized with similar risk characteristics are relative significant:
(3) Other receivables actually written-off during the reporting period
In RMB
|||||||
|-|-|-|-|-|-|
|Name of the|Nature of other|||Reason for|Arising from related|
|||Time of write-off|Amount written off|||
|company|receivables|||write-off|transactions (Y/N)|

Explanation for write-off of other receivables:
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) (4) Other receivables due from the shareholders holding5% or above voting shares of the Company during the reporting period
In RMB
||||||
|-|-|-|-|-|
||Closing amount||Opening amount||
|Name of the company|||||
||Book balance|Bad debt provision accrual|Book balance|Bad debt provision accrual|

 (5) Nature or content of other receivables with significant amount
In RMB
|||||
|-|-|-|-|
|Name of the company|Amount|Nature or content of account|Proportion in total other receivables (%)|

 Explanation:
(6) Top 5 other receivable
In RMB
||||||
|-|-|-|-|-|
|||||Proportion in total|
||Relationship with||||
|Name of the company||Amount|Terms|other receivables|
||the Company||||
|||||(%)|
|Ningbo Jiangbei High-Tech Industry Park Development|||||
||Non-related party|2,868,976.00|Within 2 years|15.14%|
|Construction Co., Ltd.|||||
|Jiangsu Techniques and Technology Center|Non-related party|2,000,000.00|Over 3 years|10.56%|
|American HESS Company|Non-related party|1,514,671.20|Over 1 year|8%|
|Nanjing University|Non-related party|600,000.00|Over 3 years|3.17%|
|Southeast University|Non-related party|600,000.00|Over 3 years|3.17%|
|Nanjing University of Science and Technology|Non-related party|600,000.00|Over 3 years|3.17%|
|Nanjing University of Technology|Non-related party|600,000.00|Over 3 years|3.17%|
|Total|--|8,783,647.20|--|46.38%|

 (7) Other receivables due from related parties
In RMB
|||||
|-|-|-|-|
||||Proportion in total other|
|Name of the company|Relationship with the Company|Amount||
||||receivables (%)|

 (8) Other receivables derecognized
In RMB
||||
|-|-|-|
|Item|De-recognition amount|Gains or losses related to de-recognition|

 (9) As for securities with other receivables as target subject, list the assets and liabilities arising from further involvement
In RMB
|||
|-|-|
|Item|Closing amount|
|Assets:||
|Liabilities:||

(10) Government subsidy recognized by amount receivable at end of period
In RMB
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
|||||||||
|-|-|-|-|-|-|-|-|
||||||||Reasons of fails to|
||Item of|||Time to|Amount|||
|Name of the||Closing|Age of|||Basis for|collected amount in|
||government|||collected|estimated to|||
|company||balance|period-end|||obtained|estimated time (if|
||subsidy|||estimated|obtained|||
||||||||applicable)|

 8. Payment in advance
(1) Analysis of payments in advance by aging
In RMB
||||||
|-|-|-|-|-|
||Closing amount||Opening amount||
|Age||Proportion||Proportion|
||Amount||Amount||
|||(%)||(%)|
|Within 1 year|155,732,339.89|89.3%|115,255,800.11|80.32%|
|1-2 years|10,851,413.45|6.22%|25,033,154.09|17.44%|
|2-3 years|7,092,296.14|4.07%|2,222,191.42|1.55%|
|Over 3 years|725,361.01|0.41%|988,855.53|0.69%|
|Total|174,401,410.49|--|143,500,001.15|--|

 Explanation for aging analysis of payments in advance:
(2) Top 5 of payments in advance
In RMB
||||||
|-|-|-|-|-|
||Relationship with||||
|Name of the company||Amount|Time|Reason for unsettlement|
||the Company||||
|||||Account of goods paid in advance|
|Jiangsu Daming Metal Products Co., Ltd.|Non-related party|7,343,103.40|Within 1 year||
|||||without delivery|
|Ipsen Industrial Furnace (Shanghai) Co.,||||Account of equipment paid in|
||Non-related party|6,529,500.00|Within 1 year||
|Ltd.||||advance without delivery|
|Jiangsu Electric Power Company Wuxi|||||
||Non-related party|5,953,786.73|Within 1 year|Electricity paid in advance|
|Power Supply Company ,/|||||
|||||Account of equipment paid in|
|Ningbo International Tendering Co., Ltd.|Non-related party|4,952,244.72|Within 1 year||
|||||advance without delivery|
|||||Account of equipment paid in|
|CAPI GROUP SRL|Non-related party|3,064,565.47|Within 1 year||
|||||advance without delivery|
|Total|--|27,843,200.32|--|--|

Explanation for major units paid in advance:
(3) Shareholders holding5% or above voting shares of the Company in payments in advance during the reporting period
In RMB
||||||
|-|-|-|-|-|
||Closing amount||Opening amount||
|Name of the company|||||
||Book balance|Bad debt provision accrual|Book balance|Bad debt provision accrual|
|Wuxi Industry Group|||15,155,700.00||
|Total|||15,155,700.00||

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) (4) Explanation for account paid in advance
9. Inventory
(1) Classification
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing amount|||Opening amount|||
|Item||Depreciation|||Depreciation||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|Raw materials|248,884,900.37|61,615,995.10|187,268,905.27|203,211,848.70|42,999,026.35|160,212,822.35|
|Product in process|141,732,336.39|2,813,579.63|138,918,756.76|144,838,941.60|3,702,985.07|141,135,956.53|
|Stock products|748,178,219.91|87,575,390.24|660,602,829.67|517,654,963.46|59,498,655.24|458,156,308.22|
|Total|1,138,795,456.67|152,004,964.97|986,790,491.70|865,705,753.76|106,200,666.66|759,505,087.10|

 (2) Inventory impairment provision
In RMB
|||||||
|-|-|-|-|-|-|
||Opening book|Provision for this|Decrease during this period|||
|Kinds of inventories|||||Closing book balance|
||balance|period|Reversal|Written-off||
|Raw materials|42,999,026.35|20,358,843.13||1,741,874.38|61,615,995.10|
|Product in process|3,702,985.07|||889,405.44|2,813,579.63|
|Stock products|59,498,655.24|39,069,942.47||10,993,207.47|87,575,390.24|
|Total|106,200,666.66|59,428,785.60||13,624,487.29|152,004,964.97|

 (3) Particular about inventory impairment provision
|||||
|-|-|-|-|
||||Proportion of the reversal|
|||Reason for||
||||amount during the year in|
|Item|Accrual basis for inventory impairment provision|reversal during the||
||||the period-end balance of|
|||period||
||||the inventory (%)|
|Raw||||
||Compared cost of inventory at period-end with its net realizable value||0.7%|
|materials||||
||by single item comparison method and withdrew provision for price|Written-off mainly||
|Stock|drop according to the balance between the net realizable value and cost.|||
|||due to sales|1.47%|
|products|As the country improved standard for vehicle exhaust emission, the|||
|||outside||
|Product in|Company had correspondingly withdrawn provision for devaluation for|||
||products and relevant raw materials failing to meet new standard.||0.63%|
|process||||

Explanation on inventory
10. Other current assets
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Entrust financing products|1,568,100,000.00|490,000,000.00|
|Receivable export tax rebates|11,430,742.61|9,913,435.88|
|Other|525,655.41|204,807.93|
|Total|1,580,056,398.02|500,118,243.81|

 Explanation on other current assets
11. Financial assets available for sale
(1) Particular about financial assets available for sale
In RMB
||||
|-|-|-|
|Item|Closing fair value|Opening fair value|
|Equity instrument available for sale|385,009,400.00|265,689,600.00|
|Total|385,009,400.00|265,689,600.00|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) For financial assets available for sale that re-category from investment held to maturity, re-category amounting as Yuan, and takes percent of the investment held to maturity before re-category.
Explanation on financial assets available for sale
In March 2012, privately offering shares of SDEC was purchased by the Company with restriction of one year.
In June 2013, privately offering shares of Miracle Logistics was purchased by the Company with restriction of one year.
(2) Long-term debt investment in financial assets available for sales
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||||Interestreceivable orreceived||
||||Initial||||||
||||||Opening|||Closing|
|Bond|Type|Book value|investment|Expired dated||Interest|||
||||||balance|||balance|
||||cost||||accumulative||

Explanation on long-term debt investment in financial assets available for sales
(3) Impairment of financial assets available for sale
In RMB
||||||
|-|-|-|-|-|
|Type of financial assets available for|Equity instrument|Debt instrument|||
||||Other|Total|
|sale|available for sale|available for sale|||

(4) Changes of impairment of financial assets available for sale in period
In RMB
||||||
|-|-|-|-|-|
|Type of financial assets|Equity instrument|Debt instrument|||
||||Other|Total|
|available for sale|available for sale|available for sale|||

(5) Explanation on closing fair value of equity instrument available for sale which was down sharply and drop continuously
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Decline||||
|Equity||||||Explanation on not to accrual|
||||changes (%)||Accrual||
|instrument||||Time to drop||impairment in line with the|
||Cost|Fair value|of fair value||impairment||
|available for||||continuously||difference between cost and|
|sale (by items)|||comparing||amount|closing fair value|
||||with its costs||||

12. Held-to-maturity investment
(1) Particular about held-to-maturity investment
In RMB
||||
|-|-|-|
|Item|Closing book balance|Opening book balance|
|Entrust financing products|400,000,000.00|649,000,000.00|
|Total|400,000,000.00|649,000,000.00|

 Explanation on held-to-maturity investment
(2) Held-to-maturity investment that sold in report period but not expired
In RMB
||||
|-|-|-|
|Item|Amount|Proportion in amount before sold (%)|

Explanation on held-to-maturity investment that sold in report period but not expired
13. Long-term account receivable
In RMB
||||
|-|-|-|
|Types|Closing amount|Opening amount|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
14. Investment for affiliated enterprise and joint ventures
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
||Equity proportion|Proportion of voting||||Total operation||
||||Total assets at|Total liability at|total net assets at||Net profit in this|
|Invested company|held by the|rights in invested||||revenue in this||
||||period-end|period-end|period-end||period|
||Company (%)|company (%)||||period||
|I. Joint venture||||||||
|Wuxi Weifu Environment||||||||
||49%|49%|1,115,168,851.02|552,201,468.92|562,967,382.10|1,121,738,597.56|88,736,820.17|
|Protection Catalyst Co., Ltd.||||||||
|II. Associated company||||||||
|Bosch Diesel System|34%|34%|6,039,584,611.00|1,634,820,616.00|4,404,763,995.00|5,398,098,727.00|939,239,423.00|
|Zhonglian Automobile Electronic||||||||
||20%|20%|2,218,238,464.85|5,195,902.40|2,213,042,562.45|9,986,413.34|892,554,116.99|
|Co., Ltd||||||||
|Wuxi Weifu Fine Machinery||||||||
||20%|20%|301,629,240.63|102,792,121.56|198,837,119.07|227,425,388.09|39,112,173.97|
|Manufacturing Co., Ltd.||||||||

Explanation on major accounting policy and accounting estimation in joint venture and affiliated enterprises difference from the policy and estimation of the Company:
15. Long-term equity investment
(1) Details of long-term equity investment
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Explanation||||
|||||||Proporti||on the||Impair||
|||||||on of|Proportion|incongruity||||
|||||||||||ment||
|||||||share|of voting|in share||||
||Calculati|||||||||provisi||
|||||Increase/decrease(||holding|rights in|holding|Impairment||Cash bonus this|
|Invested company|on|Investment cost|Opening balance||Closing balance|||||on of||
|||||+,-)||in|invested|proportion|provision||period|
||method|||||||||accrui||
|||||||invested|company|and voting||||
|||||||||||ng this||
|||||||compan|(%)|proportion||||
|||||||||||period||
|||||||y (%)||in invested||||
|||||||||company||||
|Wuxi Weifu-Autocam|Equity|||||||||||
|||37,842,087.00|66,604,790.02|-66,604,790.02|||||||10,470,000.00|
|Fine Machinery Co. Ltd.|method|||||||||||
|Wuxi Weifu Environment||||||||||||
||Equity|||||||||||
|Protection Catalyst Co.,||24,500,000.00|234,267,744.40|41,586,272.83|275,854,017.23|49%|49%|||||
||method|||||||||||
|Ltd.||||||||||||
|Bosch Diesel System|Equity|893,372,014.77|1,379,158,919.55|381,348,602.10|1,760,507,521.65|34%|34%|||||

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||method||||||||||
|Zhonglian Automobile|Equity||||||||||
|||120,124,000.00|375,291,329.83|68,724,448.62|444,015,778.45|20%|20%|||109,786,374.78|
|Electronic Co., Ltd|method||||||||||
|Wuxi Weifu Fine|||||||||||
||Equity||||||||||
|Machinery Manufacturing||2,000,000.00|34,012,456.06|5,170,934.81|39,183,390.87|20%|20%|||2,550,000.00|
||method||||||||||
|Co., Ltd.|||||||||||
|Guolian Securities Co.,|Cost||||||||||
|||12,000,000.00|12,000,000.00||12,000,000.00|1.2%|1.2%|||360,000.00|
|Ltd.|method||||||||||
||Cost||||||||||
|Guangxi Liufa Co., Ltd.||1,600,000.00|1,600,000.00||1,600,000.00|1.22%|1.22%||1,600,000.00||
||method||||||||||
|Financial Company of|||||||||||
||Cost||||||||||
|Changchai Group Co.,||800,000.00|800,000.00||800,000.00||||800,000.00||
||method||||||||||
|Ltd.|||||||||||
|H&J Vanguard Investment|Cost||||||||||
|||33,000,000.00|33,000,000.00||33,000,000.00|11.72%|11.72%||33,000,000.00||
|Co., Ltd.|method||||||||||
|Nanjing Hengtai|||||||||||
||Cost||||||||||
|Insurance and Broker Co.,||1,000,000.00|1,000,000.00||1,000,000.00|1.85%|1.85%||1,000,000.00||
||method||||||||||
|Ltd.|||||||||||
||Cost||||||||||
|Yangdong Co., Ltd.||2,355,900.00|2,355,900.00|-2,355,900.00||1.18%|1.18%||||
||method||||||||||
|Henan Gushi Weining Oil|Cost||||||||||
|||2,033,106.95|2,033,106.95||2,033,106.95||||2,033,106.95||
|Pump & Nozzle Co., Ltd.|method||||||||||
|Beijing Foton|||||||||||
||Cost||||||||||
|Environmental Engine||86,940,000.00|86,940,000.00||86,940,000.00|13.44%|13.44%||11,000,000.00||
||method||||||||||
|Co., Ltd.|||||||||||
|Wuxi Xidong|||||||||||
||Cost||||||||||
|Technological Industry||5,000,000.00|5,000,000.00||5,000,000.00|1.43%|1.43%||||
||method||||||||||
|Park Co., Ltd.|||||||||||
|Shanghai IMS|||||||||||
||Cost||||||||||
|Automotive Electronic||10,000,000.00|10,000,000.00||10,000,000.00|18.52%|18.52%||||
||method||||||||||
|System Co., Ltd.|||||||||||
|Total|--|1,232,567,108.72|2,244,064,246.81|427,869,568.34|2,671,933,815.15|--|--|--|49,433,106.95|123,166,374.78|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) (2) Limited ability for capital transfer to investment enterprise
In RMB
||||
|-|-|-|
|Long-term equity investment that has limited ability of capital||un-recognized investment losses|
||Restriction reasons||
|transfer to investment enterprise||accumulative in period|

Explanation on long-term equity investment
[Note1]Bosch Diesel System: register capital at beginning of the year wasUS$ 200 million andUS$ 30 million increased in the year. Increase register capital from the unpaid profit that distributed which was annouced in last year, register capital of Bosch Diesel System comes toUS$ 230 million after increased. And includingUS$ 74.75 million contributed by the Company, accounts for32.50% of the register capial while Weifu Jinning contributeUS$ 3.45 million, a1.5% in register capial.
[Note2] According to the equity transfer agreement singed between the Company and Autocam Corporation, the one percent equity of Weifu Autocam, hold by Autocam Corporation, was transferred to the Company; capital contributed by the Company accounted for 51 percent of the register capital of Weifu Autocam, thus comes to the controlling subsidiary of the Company. The Company calculated based on cost method.
16. Investment real estate
(1) Investment real estate measured by cost
In RMB
||||||
|-|-|-|-|-|
|||Increase|Decrease||
||Opening book|||Closing book|
|Item||during the|during this||
||balance|||balance|
|||period|period||
|I. Total original book value|24,091,482.75|||24,091,482.75|
|1. Houses and buildings|24,091,482.75|||24,091,482.75|
|II. Accumulated depreciation and accumulated amortization|20,210,136.45|456,982.86||20,667,119.31|
|1. Houses and buildings|20,210,136.45|456,982.86||20,667,119.31|
|III. Total net book value of investment real estate|3,881,346.30|-456,982.86||3,424,363.44|
|1. Houses and buildings|3,881,346.30|-456,982.86||3,424,363.44|
|V. Total book value of investment real estate|3,881,346.30|-456,982.86||3,424,363.44|
|1. Houses and buildings|3,881,346.30|-456,982.86||3,424,363.44|

 In RMB
|||
|-|-|
||This period|
|Depreciation and amortization amount in this period|456,982.86|

 (2) Investment real estate measured by fair value
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Increase during the period|||Decrease during this period|||
|Item|Opening fair value||Self-use real estate ortransfer from inventory|Gains/losses of||Transfer to|Closing|
|||Purchase||fair value|Disposal|self-use real|fair value|
|||||changed||estate||

Explain the investment real estate that changing measurement mold in report period, and the investment real estate without property certificate done as well as the reasons for property certificate un-finished and predicted the time to obtained that certificates
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) 17. Fixed assets
(1) Particular about fixed assets
In RMB
|||||||
|-|-|-|-|-|-|
||Opening book|||Decrease during this|Closing book|
|Item||Increase during the period||||
||balance|||period|balance|
|I. Total original book value:|2,623,391,562.99|320,913,396.33||44,446,284.91|2,899,858,674.41|
|Including: House and||||||
||754,436,264.43|23,116,140.40||3,200,811.95|774,351,592.88|
|Building||||||
|Machinery||||||
||1,589,205,727.01|234,289,284.84||35,115,159.29|1,788,379,852.56|
|equipment||||||
|Transportation tools|22,888,669.05|26,594,625.51||3,982,796.68|45,500,497.88|
|Other equipment|256,860,902.50|36,913,345.58||2,147,516.99|291,626,731.09|
||Opening book|Increase during|Accrual in this|Decrease during this|Book balance at|
|--||||||
||balance|this period|period|period|period-end|
|II. total of accumulated||||||
||1,115,928,394.29||218,786,200.86|29,486,057.28|1,305,228,537.87|
|depreciation:||||||
|Including: House and||||||
||194,260,954.92||28,941,630.91|1,474,305.31|221,728,280.52|
|Building||||||
|Machinery||||||
||772,960,847.70||149,544,599.60|23,454,835.35|899,050,611.95|
|equipment||||||
|Transportation tools|14,060,526.20||18,003,097.21|2,642,192.28|29,421,431.13|
|Other equipment|134,646,065.47||22,296,873.14|1,914,724.34|155,028,214.27|
||Opening book||||Book balance at|
|--||--||||
||balance||||period-end|
|III. total net value of fixed||||||
||1,507,463,168.70|--|||1,594,630,136.54|
|assets||||||
|Including: House and||||||
||560,175,309.51|--|||552,623,312.36|
|Building||||||
|Machinery||||||
||816,244,879.31|--|||889,329,240.61|
|equipment||||||
|Transportation tools|8,828,142.85|--|||16,079,066.75|
|Other equipment|122,214,837.03|--|||136,598,516.82|
|IV. Total impairment||||||
||102,656,934.52|--|||123,592,331.66|
|provision||||||
|Machinery||||||
||94,235,450.08|--|||115,009,921.02|
|equipment||||||
|Transportation tools|134,401.36|--|||133,515.66|
|Other equipment|8,287,083.08|--|||8,448,894.98|
|V. total book value of fixed|1,404,806,234.18||||1,471,037,804.88|
|||--||||
|assets||||||
|Including: House and||||||
||560,175,309.51|--|||552,623,312.36|
|Building||||||
|Machinery||||||
||722,009,429.23|--|||774,319,319.59|
|equipment||||||
|Transportation tools|8,693,741.49|--|||15,945,551.09|
|Other equipment|113,927,753.95|--|||128,149,621.84|

 Depreciation in this period amounting to 173,412,530.32 Yuan; original price transfer from construction in progress to fixed assets amounting as 184,719,320.30 Yuan
(2) Temporary idle fixed assets
In RMB
|||||||
|-|-|-|-|-|-|
|||Depreciation|Impairment|||
|Item|Original book value|||Net book value|Note|
|||accumulative|provision|||

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) (3) Fixed assets leasing-in by financing lease
In RMB
|||||
|-|-|-|-|
|Item|Original book value|Depreciation accumulative|Net book value|

 (4) Fixed assets leasing-out by operational lease
In RMB
|||
|-|-|
|Types|Closing book value|

(5) Fixed assets held for sale in period-end
In RMB
||||||
|-|-|-|-|-|
||||Disposal expense||
|Item|Book value|Fair value||Disposal date predicted|
||||predicted||

(6) Fixed assets with un-completed property certificates
||||
|-|-|-|
|||Times expected|
|Item|Reasons for un-completed certificate|for certificate|
|||completed|
|Plant and office building of Weifu Chang’an|Still in process of relevant property procedures|2014|
|Plant of parent company’s Huishan Technology|||
||Newly built plant, in process of relevant property procedures|2014|
|Center|||
|Plant and office building of Weifu Jinning|Newly built plant, in process of relevant property procedures|2014|

Explanation on fixed assets:
In depreciation accumulative for the Period, depreciation amount accrual amounting as RMB 173,412,530.32, opening amount for depreciation accumulative while Weifu-Autocam combined was RMB 45,373,670.54. In original fixed assets for the Period, original RMB 184,719,320.30 was transferred to fixed assets from construction in process, opening amount for original fixed assets while Weifu-Autocam combined was RMB 105,862,669.86, rests of the amount was the direct outsourcing.
No fixed assets through financial leasing at end of the Period
No fixed assets pledged at end of the Period
Particular about fixed assets without completed property certificate
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
18. Construction in process
(1) Construction in process
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing amount|||Opening amount|||
|Item|||||||
||Book balance|Impairment provision|Book value|Book balance|Impairment provision|Book value|
|R& D AS WELL AS|||||||
|INDUSTRIALIZATION OF WAPS AND|||||||
||1,166,919.67||1,166,919.67|705,837.58||705,837.58|
|CAPACITY PROMOTION FOR PARTS OF|||||||
|DIESEL COMMON RAIL SYSTEM|||||||
|Construction of industry zone district|134,769,103.17||134,769,103.17|4,352,455.56||4,352,455.56|
|Industrialization of auto tail-gas treatment|||||||
|||||13,265,410.92||13,265,410.92|
|system products|||||||
|Engineering research institution project||||35,345.48||35,345.48|
|Ningbo Tianli new plant project|22,101,076.65||22,101,076.65||||
|Other projects|43,948,350.20|2,522,110.89|41,426,239.31|51,759,620.61|4,469,121.67|47,290,498.94|
||||199,463,338.80|||65,649,548.48|
|Total|201,985,449.69|2,522,110.89||70,118,670.15|4,469,121.67||

 (2) Changes of major projects under construction
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||including:|Interest|||
|||||||Proportion of||Accumulatedamount ofinterest|||||
||Budge|Opening|Increase during|Transfer to fixed|Other|project|||interest|capitalizati|Capital||
|Item|||||decreas||Progress||capitalized|on rate of||Closing amount|
||t|amount|the period|assets||investment in|||||source||
||||||e|budget (%)||capitalization|amount of the|the year|||
||||||||||year|(%)|||
|R& D AS WELL AS|||||||||||||
|INDUSTRIALIZATI|||||||||||||
|ON OF WAPS AND|||||||||||||
|CAPACITY|||||||||||||
|||705,837.58|9,851,008.14|9,389,926.05|||44.20%||||Fund-raised|1,166,919.67|
|PROMOTION FOR|||||||||||||
|PARTS OF DIESEL|||||||||||||
|COMMON RAIL|||||||||||||
|SYSTEM|||||||||||||

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||||||||
|-|-|-|-|-|-|-|-|-|
|Construction of|||||||||
||4,352,455.56|130,416,647.61|||26.40%||Fund-raised|134,769,103.17|
|industry zone district|||||||||
|Industrialization of|||||||||
|auto tail-gas treatment|13,265,410.92|63,616,421.37|76,881,832.29||41.30%||Fund-raised||
|system products|||||||||
|Engineering research|||||||||
||35,345.48|477,777.71|513,123.19||100.00%||Fund-raised||
|institution project|||||||||
|Ningbo Tianli new|||||||Self-raised||
|||22,101,076.65|||25.50%|||22,101,076.65|
|plant project|||||||funds||
|Parent company’s|||||||||
|project of technical|||||||Self-raised||
||17,678,122.96|24,179,108.65|41,215,082.71|||||642,148.90|
|improvement|||||||funds||
|equipment|||||||||
|Weifu-Autocam’s|||||||Self-raised||
|||33,528,653.60|29,981,004.04|||||3,547,649.56|
|equipment project|||||||funds||
|Total|36,037,172.50|284,170,693.73|157,980,968.28|--|--|--|--|162,226,897.95|

 Explanation on changes of major projects under construction
No capitalized interest for above projects
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) (3) Construction in process impairment provision
In RMB
|||||||
|-|-|-|-|-|-|
|||Increase during the|Decrease during this|||
|Item|Opening amount|||Closing amount|Accrual Reason|
|||period|period|||
|Other projects|4,469,121.67||1,947,010.78|2,522,110.89||
|Total|4,469,121.67||1,947,010.78|2,522,110.89|--|

(4) Progress of material construction in progress
||||
|-|-|-|
|Item|progress|Note|
|R& D AS WELL AS INDUSTRIALIZATION OF WAPS AND CAPACITY PROMOTION FOR|||
||44.20%||
|PARTS OF DIESEL COMMON RAIL SYSTEM|||
|Construction of industry zone district|26.40%||
|Industrialization of auto tail-gas treatment system products|41.30%||
|Engineering research institution project|100.00%||
|Ningbo Tianli new plant project|25.50%||

(5) Explanation on construction in process
19. Construction materials
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|Decrease during this||
|Item|Opening amount|||Closing amount|
|||period|period||

Explanation on construction materials
20. Disposal of fixed assets
In RMB
|||||
|-|-|-|-|
|Item|Opening book value|Closing book value|Reasons for turn to disposal|

 Explain the progress of disposal of fixed assets transfer over one year
21. Productive biological assets
(1) Measured by cost
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|||
|Item|Opening book balance||Decrease during this period|Closing book balance|
|||period|||
|I. Crop farming|||||
|II. Livestock|||||
|III. Forestry|||||
|IV. Aquaculture|||||

(2) Measured by fair value
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|||
|Item|Opening book value||Decrease during this period|Closing book value|
|||period|||
|I. Crop farming|||||
|II. Livestock|||||
|III. Forestry|||||
|IV. Aquaculture|||||

Explanation on productive biological assets
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) 22. oil/gas assets
In RMB
||||||
|-|-|-|-|-|
|||Increase during the|||
|Item|Opening book balance||Decrease during this period|Closing book balance|
|||period|||

Explanation on oil/gas assets
23. Intangible assets
(1) Particular about intangible assets
In RMB
||||||
|-|-|-|-|-|
||Opening book|Increase during|Decrease during|Closing book|
|Item|||||
||balance|the period|this period|balance|
|I. Total original book value|340,571,428.49|92,260,726.52|1,150,072.22|431,682,082.79|
|Land use right of parent company|194,142,164.60|||194,142,164.60|
|Trademark of parent company||15,241,226.47||15,241,226.47|
|Computer software of parent company||3,880,140.18||3,880,140.18|
|Computer software of Weifu International Trade||21,367.52||21,367.52|
|Trademark license of Weifu Jinning|26,355,900.00|||26,355,900.00|
|Land use right of Weifu Jinning|28,751,600.00|||28,751,600.00|
|Land use right of Weifu Diesel System|13,231,740.00|||13,231,740.00|
|Computer software of Weifu Diesel System|1,535,120.08|300,854.70||1,835,974.78|
|Land use right of Weifu Leader||19,012,255.00||19,012,255.00|
|Computer software of Weifu Leader|1,570,988.78|270,917.96||1,841,906.74|
|Land use right of Weifu ITM|17,136,659.60|||17,136,659.60|
|Computer software of Weifu ITM||352,093.18||352,093.18|
|Land use right of Weifu Tianli|50,406,445.80|659,855.00||51,066,300.80|
|Computer software of Weifu Tianli|2,750,944.36|855,187.89||3,606,132.25|
|Land use right of Weifu Jialin|1,150,072.22||1,150,072.22||
|Land use right of Weifu Chang’an||51,250,000.00||51,250,000.00|
|Non-Patens technology of Weifu Schmidt|3,539,793.05|||3,539,793.05|
|Computer software of Weifu-Autocam||416,828.62||416,828.62|
|II. total accumulated amortization|43,618,663.37|11,301,957.43|170,306.86|54,750,313.94|
|Land use right of parent company|10,234,120.37|3,935,383.68||14,169,504.05|
|Trademark of parent company|||||
|Computer software of parent company||208,184.15||208,184.15|
|Computer software of Weifu International Trade||1,780.62||1,780.62|
|Trademark license of Weifu Jinning|9,709,000.00|||9,709,000.00|
|Land use right of Weifu Jinning|14,135,151.56|958,272.00||15,093,423.56|
|Land use right of Weifu Diesel System|2,371,526.60|282,083.46||2,653,610.06|
|Computer software of Weifu Diesel System|1,022,664.25|550,593.30||1,573,257.55|
|Land use right of Weifu Leader||95,379.21||95,379.21|
|Computer software of Weifu Leader|407,193.07|850,475.56||1,257,668.63|
|Land use right of Weifu ITM|3,284,526.48|342,733.20||3,627,259.68|
|Computer software of Weifu ITM||64,101.12||64,101.12|
|Land use right of Weifu Tianli|972,498.98|1,083,113.75||2,055,612.73|
|Computer software of Weifu Tianli|822,226.10|2,122,067.87||2,944,293.97|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||||
|-|-|-|-|-|
|Land use right of Weifu Jialin|158,285.20|12,021.66|170,306.86||
|Land use right of Weifu Chang’an||102,705.41||102,705.41|
|Non-Patens technology of Weifu Schmidt|501,470.76|353,979.36||855,450.12|
|Computer software of Weifu-Autocam||339,083.08||339,083.08|
|III. total net book value of intangible assets|296,952,765.12|80,958,769.09|979,765.36|376,931,768.85|
|Land use right of parent company|183,908,044.23|-3,935,383.68|0.00|179,972,660.55|
|Trademark of parent company|0.00|15,241,226.47|0.00|15,241,226.47|
|Computer software of parent company|0.00|3,671,956.03|0.00|3,671,956.03|
|Computer software of Weifu International Trade|0.00|19,586.90|0.00|19,586.90|
|Trademark license of Weifu Jinning|16,646,900.00|0.00|0.00|16,646,900.00|
|Land use right of Weifu Jinning|14,616,448.44|-958,272.00|0.00|13,658,176.44|
|Land use right of Weifu Diesel System|10,860,213.40|-282,083.46|0.00|10,578,129.94|
|Computer software of Weifu Diesel System|512,455.83|-249,738.60|0.00|262,717.23|
|Land use right of Weifu Leader|0.00|18,916,875.79|0.00|18,916,875.79|
|Computer software of Weifu Leader|1,163,795.71|-579,557.60|0.00|584,238.11|
|Land use right of Weifu ITM|13,852,133.12|-342,733.20|0.00|13,509,399.92|
|Computer software of Weifu ITM|0.00|287,992.06|0.00|287,992.06|
|Land use right of Weifu Tianli|49,433,946.82|-423,258.75|0.00|49,010,688.07|
|Computer software of Weifu Tianli|1,928,718.26|-1,266,879.98|0.00|661,838.28|
|Land use right of Weifu Jialin|991,787.02|-12,021.66|979,765.36|0.00|
|Land use right of Weifu Chang’an|0.00|51,147,294.59|0.00|51,147,294.59|
|Non-Patens technology of Weifu Schmidt|3,038,322.29|-353,979.36|0.00|2,684,342.93|
|Computer software of Weifu-Autocam|0.00|77,745.54|0.00|77,745.54|
|IV. Total impairment provision|16,646,900.00|||16,646,900.00|
|Land use right of parent company|||||
|Trademark of parent company|||||
|Computer software of parent company|||||
|Computer software of Weifu International Trade|||||
|Trademark license of Weifu Jinning|16,646,900.00|||16,646,900.00|
|Land use right of Weifu Jinning|||||
|Land use right of Weifu Diesel System|||||
|Computer software of Weifu Diesel System|||||
|Land use right of Weifu Leader|||||
|Computer software of Weifu Leader|||||
|Land use right of Weifu ITM|||||
|Computer software of Weifu ITM|||||
|Land use right of Weifu Tianli|||||
|Computer software of Weifu Tianli|||||
|Land use right of Weifu Jialin|||||
|Land use right of Weifu Chang’an|||||
|Non-Patens technology of Weifu Schmidt|||||
|Computer software of Weifu-Autocam|||||
|Total of intangible asset book value|280,305,865.12|80,958,769.09|979,765.36|360,284,868.85|
|Land use right of parent company|183,908,044.23|||179,972,660.55|
|Trademark of parent company||||15,241,226.47|
|Computer software of parent company||||3,671,956.03|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||
|-|-|-|
|Computer software of Weifu International Trade||19,586.90|
|Trademark license of Weifu Jinning|||
|Land use right of Weifu Jinning|14,616,448.44|13,658,176.44|
|Land use right of Weifu Diesel System|10,860,213.40|10,578,129.94|
|Computer software of Weifu Diesel System|512,455.83|262,717.23|
|Land use right of Weifu Leader||18,916,875.79|
|Computer software of Weifu Leader|1,163,795.71|584,238.11|
|Land use right of Weifu ITM|13,852,133.12|13,509,399.92|
|Computer software of Weifu ITM||287,992.06|
|Land use right of Weifu Tianli|49,433,946.82|49,010,688.07|
|Computer software of Weifu Tianli|1,928,718.26|661,838.28|
|Land use right of Weifu Jialin|991,787.02||
|Land use right of Weifu Chang’an||51,147,294.59|
|Non-Patens technology of Weifu Schmidt|3,038,322.29|2,684,342.93|
|Computer software of Weifu-Autocam||77,745.54|

 The amount amortized in this period accounting as 10,993,997.71 Yuan
(2) Expenditure of project development
In RMB
|||||||
|-|-|-|-|-|-|
||||Decrease during this period|||
|||Increase during the||||
|Item|Opening amount||Record into current|Confirm as intangible|Closing amount|
|||period||||
||||gains and losses|assets||

The proportion of development expenditure of total expenditure inR&D projects in reporting period
The proportion of intangible assets form by internalR&D in total book value of intangible assets at period-end
For development projects, including single price over one million Yuan occurred in this period and the assessment price have been kept in book, disclosed the assessment institution and way of assessment:
24. Goodwill
In RMB
|||||||
|-|-|-|-|-|-|
||IOpening balance|||Closing balance|Closing|
|Name of invested company or||ncrease during the|Decrease during|||
||||||impairment|
|items formed goodwill||period|this period|||
||||||provision|
|Weifu Tianli|1,784,086.79|||1,784,086.79||
|Total|1,784,086.79|||1,784,086.79||

Explain the impairment testing method and withdrawal method for impairment provision of goodwill:
Good will of Weifu Tianli: In 2010, the Company increasing capital to Weifu Tianli for holding merger; the goodwill was the part that merger cost over than fair value of WeifuTianli’s identifiable net assets. Weifu Tianli are running normally with profit earned in 2013 and in 2012, and no sign of impairment of goodwill been found in Weifu Tianli.
25. Long-term deferred expense
In RMB
||||||||
|-|-|-|-|-|-|-|
|||Increase during|Amortization|||Reasons for other|
|Item|Opening amount|||Other decrease|Closing amount||
|||the period额|during this period|||decrease|
|Decoration|||||||
||12,227,687.75|10,110,241.81||6,006,154.32|16,331,775.24||
|charge etc.|||||||
|Total|12,227,687.75|10,110,241.81||6,006,154.32|16,331,775.24|--|

 Explanation on long-term deferred expense:
26. Deferred income tax assets and deferred income tax liabilities
(1) Net amount of deferred income tax assets and deferred income tax liabilities before deduction
Deferred income tax assets and deferred income tax liability that recognized
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Deferred income tax assets:|||
|Assets impairment provision|48,174,800.20|37,344,316.63|
|Operation losses from subsidiary||347,619.08|
|Deferred income|28,239,697.24|18,079,366.25|
|Internal un-realized profit|6,548,915.40|2,528,003.20|
|Payable salary, three-guarantee accrual etc.|33,651,395.21|27,720,249.40|
|Subtotal|116,614,808.05|86,019,554.56|
|Deferred income tax liability:|||
|Variation of fair value of financial assets available for sale which reckoned into|||
||17,470,485.00|9,972,240.00|
|capital reserve|||
|Differences of fair value and taxation basis of Weifu Tianli, which was combined|||
||2,467,909.40|2,578,942.40|
|under different control|||
|Subtotal|19,938,394.40|12,551,182.40|

 Details of un-recognized deferred income tax assets
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Deductible temporary differences-Bad debt reserve (parent company)|4,400,000.00|16,423,371.59|
|Deductible temporary differences-Long-term equity investment impairment provision|49,433,106.95|51,789,006.95|
|Deductible losses -Weifu ITM and other subsidiaries|45,961,603.98|28,767,539.77|
|Total|99,794,710.93|96,979,918.31|

 The deductible losses of un-recognized deferred income tax assets are expired in the follow year:
In RMB
|||||
|-|-|-|-|
|Year|Closing amount|Opening amount|Note|
|2013||7,634,262.55|Weifu ITM and other subsidiaries have operation deficit|
|2014|2,429,134.89|2,429,134.89|Weifu ITM and other subsidiaries have operation deficit|
|2015|3,169,614.06|3,169,614.06|Weifu ITM and other subsidiaries have operation deficit|
|2016|3,044,019.10|3,044,019.10|Weifu ITM and other subsidiaries have operation deficit|
|2017|12,490,509.17|12,490,509.17|Weifu ITM and other subsidiaries have operation deficit|
|2018|24,828,326.76||Weifu ITM and other subsidiaries have operation deficit|
|Total|45,961,603.98|28,767,539.77|--|

Details of taxable difference and deductible differences
In RMB
||||
|-|-|-|
||Amount of temporary differences||
|Item|||
||Amount at period-end|Amount at period-begin|
|Items of taxable differences|||
|Bad debt reserve|14,443,825.14|11,084,339.77|
|Inventory impairment provision|152,004,964.97|106,200,666.66|
|Fixed assets impairment provision|123,592,331.66|102,656,934.52|
|Construction in process impairment provision|2,522,110.89|4,469,121.67|
|Intangible assets impairment provision|16,646,900.00|16,646,900.00|
|Operation losses from subsidiary||1,390,476.34|
|Deferred income|188,264,648.24|120,529,108.31|
|Internal un-realized profit|43,626,587.78|12,243,777.68|
|Payable salary, three-guarantee accrual etc.|221,616,667.80|182,183,273.68|
|Subtotal|762,718,036.48|557,404,598.63|
|Item of deductible differences|||

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||
|-|-|-|
|Differences of fair value and taxation basis of Weifu Tianli,|||
||16,452,729.34|17,192,949.32|
|which was combined under different control|||
|Variation of fair value of financial assets available for sale|116,469,900.00|66,481,600.00|
|Subtotal|132,922,629.34|83,674,549.32|

 (2) Net amount of deferred income tax assets and deferred income tax liabilities after deduction
Item of deferred income tax assets and liability after mutual offset
In RMB
||||||
|-|-|-|-|-|
||Deferred income tax|Deductible of temporary|Deferred income tax|Deductible of temporary|
||assets and liability after|differences of payable|assets and liability|differences of payable|
|Item|||||
||mutual offset at|taxes after mutual offset|after mutual offset at|taxes after mutual offset at|
||period-end|at period-end|period-begin|period-begin|
|Deferred income tax assets|116,614,808.05||86,019,554.56||
|Deferred income tax liability|19,938,394.40||12,551,182.40||

Details of mutual offset of deferred income tax assets and liability
In RMB
|||
|-|-|
|Item|Amount mutual offset|

Explanation on deferred income tax assets and deferred income tax liabilities
27. Details of asset impairment provision
In RMB
|||||||
|-|-|-|-|-|-|
||Opening book|Increase during|Decrease during this period||Closing book|
|Item||||||
||balance|the period|Reversal|Written-off|balance|
|I. Bad debt reserve|27,507,711.36|6,127,783.42|539,817.91|14,251,851.73|18,843,825.14|
|II. Inventory impairment provision|106,200,666.66|59,428,785.60||13,624,487.29|152,004,964.97|
|V. Long-term equity investment provision|51,789,006.95|||2,355,900.00|49,433,106.95|
|VII. Fix assets impairment provision|102,656,934.52|23,604,440.97||2,669,043.83|123,592,331.66|
|IX. Construction in process impairment|4,469,121.67||||2,522,110.89|
|||||1,947,010.78||
|provision||||||
|XII. Intangible assets impairment provision|16,646,900.00||||16,646,900.00|
|Total|309,270,341.16|89,161,009.99|539,817.91|34,848,293.63|363,043,239.61|

 Explanation on asset impairment provision:
28. Other non-current assets
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|

Explanation on other non-current assets
29. Short-term loans
(1) Type of Short-term Loans
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Guarantee loans|399,500,000.00|70,000,000.00|
|Total|399,500,000.00|70,000,000.00|

 Explanation on short-term loans
(2) Short-term loans un-paid by expired
In RMB
|||||||
|-|-|-|-|-|-|
|Unit|Loan amount|Loan rates|Using in|Reasons of un-paid|Predicted payment date|

Amount paid after balance sheet date.
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) Explanation on short-term loans: for those expired short-term loans obtained expansion period, explain the expansion condition and new expiration:
30. Transactional financial liabilities
In RMB
||||
|-|-|-|
|Item|Closing fair value|Opening fair value|

Explanation on transactional financial liabilities:
31. Note payable
In RMB
||||
|-|-|-|
|Types|Closing amount|Opening amount|
|Bank acceptance bill|383,418,397.65|278,184,200.63|
|Total|383,418,397.65|278,184,200.63|

 Amount expired in next accounting period: 383,418,397.65 Yuan
Explanation on note payable:
Margin saving RMB 152,660,000 was provided for the bank acceptance bill, and 103.063 million Yuan was pledge for not receivable 32. Account payables
(1) Account payables
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Within 1 year|1,392,785,345.30|1,041,109,124.61|
|1-2 years|34,820,774.21|77,004,432.34|
|2-3 years|35,735,580.70|2,769,567.39|
|Over 3 years|13,440,279.18|12,628,206.91|
|Total|1,476,781,979.39|1,133,511,331.25|

 (2)Accounts payable to shareholders holding5% or above voting shares of the Company
In RMB
||||
|-|-|-|
|Name of the company|Closing amount|Opening amount|
|German Bosch Company|23,536,386.44|6,902,117.57|
|Total|23,536,386.44|6,902,117.57|

 (3) Explanation on major account payable with over one year age:
33. Account received in advance
(1) Account received in advance
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Within 1 year|34,658,130.49|36,302,939.11|
|1-2 years|1,619,257.30|14,362,975.85|
|2-3 years|4,489,665.94|473,918.02|
|Over 3 years|1,529,962.17|1,482,478.99|
|Total|42,297,015.90|52,622,311.97|

 (2)Accounts received in advance to shareholders holding5% or above voting shares of the Company
In RMB
||||
|-|-|-|
|Name of the company|Closing amount|Opening amount|

(3) Explanation on major account received in advance with over one year age:
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) 34. Wages payable
In RMB
||||||
|-|-|-|-|-|
||Opening book|Increase during the|Decrease during this|Closing book|
|Item|||||
||balance|period|period|balance|
|I. Wage, bonus, allowance and subsidy|204,514,141.35|496,367,400.39|485,395,758.87|215,485,782.87|
|II. Employees’ welfare|0.00|38,120,193.50|38,120,193.50|0.00|
|III. Social security|37,253,130.94|128,901,368.80|126,738,510.71|39,415,989.03|
|IV. Housing fund|1,497,503.29|33,355,871.70|33,297,618.70|1,555,756.29|
|VI. Other|33,027,394.12|31,570,486.64|25,216,415.24|39,381,465.52|
|Including: Residence subsidy for employees|18,434,483.07||5,078,215.08|13,356,267.99|
|Labor union and staff educational|||||
||14,238,127.65|8,808,433.91|7,543,558.20|15,503,003.36|
|charge|||||
|Staff bonus and welfare fund||9,182,410.77||9,182,410.77|
|Other|354,783.40|13,579,641.96|12,594,641.96|1,339,783.40|
|Total|276,292,169.70|728,315,321.03|708,768,497.02|295,838,993.71|

 Wages payable has 0 Yuan for arrears
Outlay for labor union and staff educational charge amounting as 15,503,003.36 Yuan; non-monetary welfare amounting as 0 Yuan and compensation for dismiss of labor relationship amounting to 0 Yuan
The wages payable expected to pay and the amount for payment:
The annual employee bonus of 2013 will paid before end of April 2014. The bonus funds of the parent company to be counted and withdrawn according to the resolutions ofshareholders’ meeting includes in the salary, bonus, allowances and subsidies, and the Company will use according to the board ofdirectors’ arrangements.
Staff bonus and welfare fund refers to, subsidiary of the Company Weifu-Autocam,which is accrual and use in line with relevant regulations as a foreign-funded enterprise,
35. Tax payable
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|VAT|-22,762,664.31|-5,574,642.73|
|Business tax|14,187.60|782,490.88|
|Enterprise income tax|63,034,264.50|26,286,094.33|
|Personal income tax|51,112.66|226,120.35|
|City maintenance and construction tax|98,185.79|1,247,648.89|
|Educational surtax|70,132.67|891,250.66|
|Other|3,309,378.70|3,612,748.54|
|Total|43,814,597.61|27,471,710.92|

 Explanation on tax payable: if the local taxation bureau agrees mutual adjustment between vary branches and plants, explain taxation calculation:
36. Interest payable
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Interest payable for short-term loans|996,716.67|220,500.00|
|Total|996,716.67|220,500.00|

 Explanation on interest payable:
37. Dividend payable
In RMB
|||||
|-|-|-|-|
||||Reasons for un-payment over one|
|Name of the company|Closing amount|Opening amount||
||||year|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) Explanation on dividend payable:
38. Other payables
(1) Other payables
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Within 1 year|57,829,595.15|54,978,609.46|
|1-2 years|20,553,060.36|8,602,362.68|
|2-3 years|1,185,600.90|386,885.62|
|Over 3 years|7,756,638.45|7,396,384.36|
|Total|87,324,894.86|71,364,242.12|

 (2) Others payable due to shareholders units holding over5%(5% included) voting shares of the Company at period-end
In RMB
||||
|-|-|-|
|Name of the company|Closing amount|Opening amount|
|Wuxi Industry Group|17,250,000.00||
|Total|17,250,000.00||

(3) Explanation on other account payable with over one year age
|||
|-|-|
|Item|2013-12-31|
|Nanjing Jidian Industrial Group Co., Ltd.|4,500,000.00|

 (4) Explanation on unit of major connected amount for other account payable
39. Predicted liability
In RMB
||||||
|-|-|-|-|-|
|||Increase during theperiod|Decrease during this||
|Item|Opening amount|||Closing amount|
||||period||

Explanation on predicted liability:
40. Non-current liability due within one year
(1) Non-current liability due within one year
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|

(2) Long-term loans due within one year
Long-term loans due within one year
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|

In long-term loans due within one year, amount of undue but with expansion time.
Top five long-term loans due within one year:
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Closing amount||Opening amount||
||Starting date|Termination|||||||
|Unit|||Currency|Rate (%)|Amount in|Local|Amount in foreign|Local|
||for loans|date for loans|||||||
||||||foreign currency|currency|currency|currency|

 Due loans in long-term loans due within one year:
In RMB
||||||||
|-|-|-|-|-|-|-|
|Unit|Amount loans|Undue date|Annual rate (%)|Using purpose|Unpaid reasons|Paid expected|

 Amount paid after balance sheet date.
Explanation on long-term loans due within one yea:
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) (3) Bond payable due within one year
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||Interest|||||
|||Issuing||Issuing||Interest payable|Interest paid in|Interest payable in|Balance at|
|Name|Value||Terms||payable at|||||
|||date||amount||in this period|this period|this period-end|period-end|
||||||period-begin|||||

Explanation on bond payable due within one year:
(4) Long-term account payable due within one year
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Interest reckoned|Amount at||
|Unit|Terms|Initial amount|Rate (%)|||Loan condition|
||||||period-end||

Explanation on long-term account payable due within one year:
41. Other current liability
In RMB
||||
|-|-|-|
|Item|Closing book balance|Opening book balance|
|Sales discount|9,500,000.00|4,800,000.00|
|Vary subsidy|872,000.00|1,188,800.00|
|Auditing fee|1,200,000.00|1,500,000.00|
|Three-guarantee charge|12,000,000.00|12,013,530.77|
|Certificate charge for real estate|2,317,423.10|2,317,423.10|
|Other|425,121.13|282,511.40|
|Total|26,314,544.23|22,102,265.27|

 Explanation on other current liability:
42. Long-term loan
(1) Category of long-term loans
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Guaranteed loan|60,000,000.00||
|Total|60,000,000.00||

Explanation on category of long-term loans:
Parent company offering guarantee and borrow-in special loans by Weifu Tianli
(2) Top five long-term loans
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Termination|||Closing amount||Opening amount||
||Starting date||||||||
|Unit||date for|Currency|Rate (%)|Amount in foreign|Local|Amount in foreign|Local|
||for loans||||||||
|||loans|||currency|currency|currency|currency|

 Explanation on long-term loans: if there has long-term loans from undue with expansion obtained, explain the expansion condition, principle, interest and predicted payment arrange:
43. Bond payable
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||Amount atperiod-beginInterest payable|Interest||Amount at||
|||Issuing||Issuing|||Interest paid||Closing|
|Name|Value||Terms|||payable in this||period-end||
|||date||amount|||in this period||balance|
|||||||period||Interest payable||

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) Bond payable including convertible corporatebond’s condition and time for shares transfer:
44. Long-term account payable
(1) Top five long-term account payable
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Rate|Interest|Closing||
|Unit|Term|Initial amount||||Loan condition|
||||(%)|reckoned|balance||
|||||||To encourage Weifu Jinning to enter Nanjing High-tech|
|Hi-tech|||||||
|||||||Technology Industry Development Zone, financial supporting|
|Branch|2005-10-2||||||
|||||||capital is allotted by High-tech branch of Finance Bureau of|
|of|0 to|1,140,000.00|||1,140,000.00|Nanjing for supporting use, the term is from 20 October 2005|
|Nanjing|2020-10-2||||||
|||||||to 20 October 2020. Provided that the operation period in the|
|Finance|0||||||
|||||||zone is less than 15 years, financial supporting capital will be|
|Bureau|||||||
|||||||reimbursed.|
|||||||To encourage Weifu Jinning to enter Nanjing High-tech|
|Hi-tech|||||||
|||||||Technology Industry Development Zone, financial supporting|
|Branch|||||||
||2006-7-20|||||capital is allotted by High-tech branch of Finance Bureau of|
|of|||||||
||to|1,250,000.00|||1,250,000.00|Nanjing for supporting use, the term is from 20 July 2006 to|
|Nanjing|||||||
||2021-7-20|||||20 July 2021. Provided that the operation period in the zone is|
|Finance|||||||
|Bureau||||||less than 15 years, financial supporting capital will be|
|||||||reimbursed.|
|||||||To encourage Weifu Jinning to enter Nanjing High-tech|
|Hi-tech|||||||
|||||||Technology Industry Development Zone, financial supporting|
|Branch|2007-9-17||||||
|||||||capital is allotted by High-tech branch of Finance Bureau of|
|of|to||||||
|||1,230,000.00|||1,230,000.00|Nanjing for supporting use, the term is from 17 September|
|Nanjing|2022-9-1||||||
|Finance|7|||||2007 to 17 September 2022. Provided that the operation period|
|||||||in the zone is less than 15 years, financial supporting capital|
|Bureau|||||||
|||||||will be reimbursed.|
||The||||||
||transferred||||||
||national||||||
||debt|||||Loan transferred from treasury bond: Weifu Jinning received|
||capital|||||RMB1.87 million Yuan of special funds from budget of the|
|Loan|received|||||central government, and RMB1.73 million Yuan of special|
|transferr|by Weifu|||||funds from budget of the local government. The non-operating|
|ed from|Jinning in|3,730,000.00|||3,051,818.00|income transferred in was 1.87 million Yuan in 2011 which|
|treasury|2007. Pay|||||was confirmed not to return, if the Company pays back special|
|bond|the loans|||||funds of 3.73 million Yuan to the local government in 11 years|
||with|||||since 2012, then the Company needs to repay the principal of|
||11-year|||||339,091.00 Yuan each year.|
||installmen||||||
||t since||||||
||2012||||||
|||||||To encourage Weifu Jinning to enter Nanjing High-tech|
|Hi-tech|||||||
|||||||Technology Industry Development Zone, financial supporting|
|Branch|2008-11-1||||||
|||||||capital is allotted by High-tech branch of Finance Bureau of|
|of|0 to||||||
|||2,750,000.00|||2,750,000.00|Nanjing for supporting use, the term is from 10 November|
|Nanjing|2023-11-1||||||
|||||||2008 to 10 November 2023. Provided that the operation period|
|Finance|0||||||
|||||||in the zone is less than 15 years, financial supporting capital|
|Bureau|||||||
|||||||will be reimbursed.|
|||||||To encourage Weifu Jinning to enter Nanjing High-tech|
|Hi-tech|||||||
|||||||Technology Industry Development Zone, financial supporting|
|Branch|2009-10-2||||||
|||||||capital is allotted by High-tech branch of Finance Bureau of|
|of|7 to||||||
|||1,030,000.00|||1,030,000.00|Nanjing for supporting use, the term is from 27 October 2009|
|Nanjing|2024-10-2||||||
|||||||to 27 October 2024. Provided that the operation period in the|
|Finance|7||||||
|||||||zone is less than 15 years, financial supporting capital will be|
|Bureau|||||||
|||||||reimbursed.|
|Hi-tech|2010-12-2|||||To encourage Weifu Jinning to enter Nanjing High-tech|
|||960,000.00|||960,000.00||
|Branch|7 to|||||Technology Industry Development Zone, financial supporting|
|of|2025-12-2|||||capital is allotted by High-tech branch of Finance Bureau of|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||||
|-|-|-|-|-|
|Nanjing|7|||Nanjing for supporting use, the term is from 27 December|
|Finance||||2010 to 27 December 2025. Provided that the operation period|
|Bureau||||in the zone is less than 15 years, financial supporting capital|
|||||will be reimbursed.|
|||||To encourage Weifu Jinning to enter Nanjing High-tech|
|Hi-tech|||||
|Branch|2011-12-2|||Technology Industry Development Zone, financial supporting|
|||||capital is allotted by High-tech branch of Finance Bureau of|
|of|8 to||||
|||5,040,000.00|5,040,000.00|Nanjing for supporting use, the term is from 28 December|
|Nanjing|2026-12-2||||
|||||2011 to 28 December 2026. Provided that the operation period|
|Finance|8||||
|||||in the zone is less than 15 years, financial supporting capital|
|Bureau||||will be reimbursed.|
|||||To encourage Weifu Jinning to enter Nanjing High-tech|
|Hi-tech|||||
|||||Technology Industry Development Zone, financial supporting|
|Branch|2013-12-1||||
|||||capital is allotted by High-tech branch of Finance Bureau of|
|of|8 to||||
|||2,740,000.00|2,740,000.00|Nanjing for supporting use, the term is from 18 December|
|Nanjing|2028-12-1||||
|||||2013 to 18 December 2028. Provided that the operation period|
|Finance|8||||
|||||in the zone is less than 15 years, financial supporting capital|
|Bureau|||||
|||||will be reimbursed.|

(2)Details of financing rent payable in long-term payable
In RMB
||||||
|-|-|-|-|-|
||Closing amount||Opening amount||
|Unit|||||
||Foreign currency|RMB|Foreign currency|RMB|

 Amount of guarantee from independent third party for the financing rent of the Company
Explanation on long-term payable:
45. Specific account payable
In RMB
|||||||
|-|-|-|-|-|-|
|||Increase during|Decrease during|||
|Item|Opening amount|||Closing amount|Note|
|||the period|this period|||
|Removal compensation of parent company||7,390,735.29||7,390,735.29||
|Removal compensation of Weifu Jinning||18,265,082.11||18,265,082.11||
|Total||25,655,817.40||25,655,817.40|--|

 Explanation on specific account payable:
[Note1] According to the―State-owned land use right of Wuxi City purchasecontract‖ signed between parent company and Wuxi Land Reserve Center, the two parties come to an agreement with the property attributable to parent company, located in No.107, Renmin West Road, Wuxi City and No.125, Yunhe East Road, Wuxi City, as well as the equipment unable to move, that is parne tcompany received RMB 503.8116 million for removal compensation. RMB 7,900,000.00 was received in the Period as relocation compensation, and RMB 509,264.71 occurred in removal was reconked into non-operation revenue.
[Note2]Removal compensation of Weifu Jinning: in line with regulation of the house acquisition decision ofPeople’s government of Xuanwu District, Nanjing City, Ning Xuan Fu Zheng Zi (2012) No.001, part of the lands and property of Weifu Jingning 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 Weifu Jinning and House Expropriation Management Office of Xuanwu District, Nanjing City, RMB 19.7067 million in total are compensate, including operation losses from lessee RMB 1.4416 million in total. The above compensation was received in the Year and is making up for the losses from lessee, and the above lands and property have not been collected up to 31 December 2013.
46. Other non-current liability
In RMB
||||
|-|-|-|
|Item|Closing book balance|Opening book balance|
|Appropriation on industrialization project of electrical control and high|||
||6,489,002.66|12,000,000.00|
|voltage jet VE system of low emissions diesel|||
|R&D subsidy for new products|37,668,815.24|41,079,108.31|
|Appropriation on reforming of production line technology and R&D ability|||
||7,100,000.00|7,100,000.00|
|of common rail system for diesel by distributive high-voltage|||
|Fund of industry upgrade (2012)|60,400,000.00|60,400,000.00|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||
|-|-|-|
|Fund of industry upgrade (2013)|60,520,000.00||
|Appropriation on central basic construction investment|5,000,000.00|5,000,000.00|
|R&D and industrialization of the high pressure variable pump of the|||
||8,050,000.00||
|common rail system of diesel engine for automobile|||
|Research institute of motor vehicle exhaust aftertreatment technology|4,000,000.00|2,400,000.00|
|Other|6,278,222.71|5,900,000.00|
|Total|195,506,040.61|133,879,108.31|

 Explanation on other non-current liability
1. Appropriation on industrialization project of electrical control and high voltage jet VE system of low emissions diesel: in September 2009, Weifu Jinning signed―Project Contract of Technology Outcome Transferring Special Capital in JiangsuProvince‖ with Nanjing Technical Bureau, according to which Weifu Jinning received appropriation RMB 6.35 million in 2009, RMB 4.775 million received in 2010 and RMB 0.875 million received in 2011. According to the contract, the attendance date of this project was: from October of 2009 to March of 2012. This contract agreed62% of newly increased investment in project would be spent in fixed assets investment. In 2013, accepted by the science& technology agency of Jiangsu Province, and RMB 4,789,997.04 with income related was reckoned into current operation revenue directly; the RMB 7,210,002.96 with assets related was amortized durting the predicted service period of the assets.
2.R&D subsidy for new products: in 2011, the subsidy forR&D of new products are received from Wuxi New Financial Bureau for year of 2012 to 2013. The RMB 3,410,293.07 compensate for expenditure ofR&D has transfer to non-operation income. In line with the reply from enterprise service management office of Wuxi New District, the amount can be extended to year of 2014 and later period for compensate the expenditure ofR&D of the Company.
3. Appropriation on reforming of production line technology andR&D ability of common rail system for diesel by distributive high-voltage: in 2011, specific fund RMB 7.1 million was allocated from Wuxi New Zone Financial Bureau.
4. Industry upgrading funds (2012): In accordance with the document Xi Xin Guanjing Fa[2012] No.216 and Document Xi Xin Guancai Fa[2012] No. 85, the Company received funds of 60.4 million Yuan appropriated for industry upgrading this year. 5. 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.
6. Appropriation for investment of capital construction from the central government: In accordance with the document Xi Caijian[2012] No.43, the Company received appropriation of 5 million Yuan for investment of capital construction from the central government in 2012.
7.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 and Xi Cai Gong Mao[2013] No.138.
8. Research institute of motor vehicle exhaust aftertreatment technology: the appropriation received by Weifu Leader from research institute of motor vehicle exhaust aftertreatment technology
Item of liability with government subsidy concerned
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Amount reckoned||||
|||Subsidy|||||
||||into non-operation||Closingbalance|Assets-related/Inco|
|Item|Opening balance|increase during||Other changes|||
||||revenue in the|||me-related|
|||this period|||||
||||Period||||

47. Share capital
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Increased (decreased) in this period||||||
||Opening|New shares||Shares|||Closing amount|
||amount||Bonus shares|converted from|Other|Subtotal||
|||issued||||||
|||||public reserve||||
|Total shares|680,133,995.00||340,066,997.00|||340,066,997.00|1,020,200,992.00|

 Explanation on share capital changes, if there has capital increase/decrease in reporting period, disclosed theCPA’s name and verification documents; for company limited within 3 years operation, explain the net assets before establishment; for those company limited changed from limited liability company, explain the verification condition while established.
Being deliberated and approved in Annual General Meeting of 2012, base on the total share capital 680,133,995 shares, distributed 5
bonus shares for each 10-share to whole shareholders with the retained profit. Totally 340,066,997 shares distributed in 2013
and up to 31 December 2013, total share capital of the Company amounting to 1,020,200,992 Yuan.
At period-end, Wuxi Industry Group, who holds 204,059,398 shares of the Company with20.00% in total share
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) capital, is the substantial shareholder of the Company.
48. Stock shares
Explanation on stock shares:
49. Reasonable reserve
Explanation on reasonable reserve
||||||
|-|-|-|-|-|
|Item|2012-12-31|Increase during the period|Decrease during this period|2013-12-31|
|Safety production costs|--|17,366,734.77|16,111,593.58|1,255,141.19|

 1. According to the―management method of extraction and use the safety prodution costs forenterprise‖ Cai Qi[2012] No.16 jointly issued by Ministry of Finance and Administration of Production Safety Supervision, the provision for year of 2013 is based on the actual operation revenue of last year, extract on average month-by-month basis through excess regressive method
2. Among the above safety productin 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 susbidary in line with regulations.
50. Capital reserves
In RMB
||||||
|-|-|-|-|-|
|||Increase during|Decrease during||
|Item|Opening amount|||Closing amount|
|||the period|this period||
|Capital premium (Share capital premium)|3,614,101,338.14||3,141,979.95|3,610,959,358.19|
|Other Capital reserves|19,083,331.38|||19,083,331.38|
|Net variation of fair value of financial assets|||||
||56,509,360.00|42,490,055.00||98,999,415.00|
|available for sale|||||
|Total|3,689,694,029.52|42,490,055.00|3,141,979.95|3,729,042,104.57|

 Explanation on capital reserve
Capital reserves decrease during this period: In 2013, the 15 percent shares of Weifu Schmidt held by Shanghai Weishi Automobile Technology Development Co., Ltd were transferred by the Company, and the Company increase capital for Weifu Schmidt after that, thus, the Company accounts for 66 percent in register capital of Weifu Schmidt after capital increased. After equity transfer and capital increased, the difference, between cost of long-term euqity investment newly obtianed and the equity shares of Weifu Schmidt enjoy by the Company in line with shares newly increased, were adjusted to decreasing capital reserves.
51. Surplus reserves
In RMB
||||||
|-|-|-|-|-|
||||Decrease during this||
|Item|Opening amount|Increase during the period||Closing amount|
||||period||
|Statutory surplus reserves|340,066,997.50|93,541,690.26||433,608,687.76|
|Total|340,066,997.50|93,541,690.26||433,608,687.76|

 Explanation on surplus reserve, if share capital converted from surplus reserve, remedy deficit and dividend distributed, explain relevant resolutions:
Withdraw the legal surplus according to10% of the net profit after tax of the parent company.
At the end of last year, the legal surplus of the Company has been withdrawn to50% of the registered capital (share capital), as the non-public offering of stock increased the registered capital (share capital) this year, the Company continued to withdraw the legal surplus according to10% of the net profit after tax of the parent
company until the balance of legal surplus reached50% of the registered capital (share capital).
52. General risk provision
Explanation on general risk provision:
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) 53. Retained profit
In RMB
||||
|-|-|-|
|Item|Amount|Withdrawal or Allocation Ratio|
|Retained profits at the end of last year before adjustment|3,946,085,733.22|--|
|Retained profits at the beginning of the year after adjustment|3,946,085,733.22|--|
|Add: The net profits belong to owners of patent company of this period|1,108,221,450.83|--|
|Less: Withdraw legal surplus reserves|93,541,690.26||
|Common dividend payable|204,040,198.50||
|Common dividend transfer as share capital|340,066,997.00||
|Amount at period-end Retained profit|4,416,658,298.29|--|

Details about adjusting the retained profits at the beginning of the year:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the retained profits at the beginning of the year amounting to 0 Yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the year amounting to 0 Yuan. 3) The major accounting error correction affects the retained profits at the beginning of the year amounting to 0 Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the year amounting to 0 Yuan. 5) Other adjustments affect the retained profits at the beginning of the year amounting to 0 Yuan
The retained profits explain that the company initial public offering bonds should clearly state if the accumulated profits are decided to be shared by old and new shareholders by general meeting of stockholders before issuing; while the company should clearly disclose that the profits in the dividends payable belong to old shareholders after auditing if the general meeting of stockholders decides the accumulated profits are allocated and shared by old shareholders before issuing.
According to the profit distribution plan 2012 approved in the Board in March 2013, as well as deliberated in Annual General Meeting of 2012 in May 2013, base on the total share capital 680,133,995 shares , distributed 3.00 Yuan (tax included) for each 10 shares held in cash, totally 204.0402 million Yuan common dividend were distributed
Meanwhile, increase share capital from retained profit, distribute 5 bonus shares to earch 10 shares held by whole shareholders, totally 340,066,997 shares are distributed to all sharehodlers in 2013.
At the end of last year, the legal surplus of the Company has been withdrawn to50% of the registered capital (share capital), as the non-public offering of stock increased the registered capital (share capital) this year, the Company continued to withdraw the legal surplus according to10% of the net profit after tax of the parent company until the balance of legal surplus reached50% of the registered capital (share capital).
54. Operating income and cost
(1) Operating income and cost
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|Main operating income|5,157,336,631.31|4,651,387,384.54|
|Other operating income|431,971,058.24|363,896,034.17|
|Operating cost|4,169,807,309.66|3,773,477,621.24|

 (2) Main business (By industries)
In RMB
||||||
|-|-|-|-|-|
||Amount of this period||Amount of last period||
|Industry|||||
||Operating income|Operating cost|Operating income|Operating cost|
|Auto parts|5,157,336,631.31|3,785,725,942.14|4,651,387,384.54|3,441,200,769.51|
|Total|5,157,336,631.31|3,785,725,942.14|4,651,387,384.54|3,441,200,769.51|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) (3) Main business (By products)
In RMB
||||||
|-|-|-|-|-|
||Amount of this period||Amount of last period||
|Products|||||
||Operating income|Operating cost|Operating income|Operating cost|
|Vehicle fuel injection system|3,915,983,172.09|2,774,949,906.93|3,667,499,333.27|2,637,702,014.93|
|Intake system|172,146,754.65|128,225,147.76|153,580,378.18|113,203,879.68|
|Tail treatment system|1,069,206,704.57|882,550,887.45|830,307,673.09|690,294,874.90|
|Total|5,157,336,631.31|3,785,725,942.14|4,651,387,384.54|3,441,200,769.51|

 (4) Main business (By districts)
In RMB
||||||
|-|-|-|-|-|
||Amount of this period||Amount of last period||
|District|||||
||Operating income|Operating cost|Operating income|Operating cost|
|Domestic|4,902,874,502.23|3,544,580,678.04|4,362,027,051.97|3,158,670,288.49|
|Overseas|254,462,129.08|241,145,264.10|289,360,332.57|282,530,481.02|
|Total|5,157,336,631.31|3,785,725,942.14|4,651,387,384.54|3,441,200,769.51|

 (5) The operating income of the top five customers of the Company
In RMB
||||
|-|-|-|
|||The percentage in all operating income of the Company|
|Client|Income from main business||
|||(%)|
|Client1|601,336,432.13|10.76%|
|Client2|419,471,583.81|7.5%|
|Client3|371,895,431.33|6.65%|
|Client4|324,806,138.72|5.81%|
|Client5|300,555,432.66|5.38%|
|Total|2,018,065,018.65|36.1%|

 Explanation on operating income
55. Contract item income
In RMB
|||||||
|-|-|-|-|-|-|
|Fixed price|||Cost accumulative|Gross profit accumulative recognized (loss|Amount with|
||Contract Item|Amount||||
|contract|||occurred|listed with ―-―)|settlement done|
|Fixed price|||Cost accumulative|Gross profit accumulative recognized (loss|Amount with|
||Contract Item|Amount||||
|contract|||occurred|listed with ―-―)|settlement done|

 Explanation on contract item
56. Business tax and surcharges
In RMB
|||||
|-|-|-|-|
|Item|Amount of this period|Amount of last period|Taxation standards|
|Business tax|899,131.65|2,126,923.20||
|City maintenance and construction tax|18,409,600.46|17,328,343.12||
|Educational surtax|13,149,726.11|12,377,649.77||
|Total|32,458,458.22|31,832,916.09|--|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) Explanation on business tax and surcharges
57. Sales expenses
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|Salary and fringe benefit|29,938,097.34|28,414,034.46|
|Consumption of office materials and business travel charge|9,233,423.99|10,484,898.09|
|Transportation charge|21,831,267.64|16,636,577.74|
|Warehouse charge|6,700,597.97|5,795,193.53|
|Three-guarantee fee|121,517,869.58|114,827,045.64|
|Other|17,931,595.72|14,485,738.51|
|Total|207,152,852.24|190,643,487.97|

 58. Administration expenses
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|Salary and fringe benefit|214,063,951.21|187,215,019.30|
|Depreciation charger and long-term assets amortization|41,701,775.11|36,836,465.47|
|Consumption of office materials and business travel charge|26,851,654.50|28,963,108.82|
|Tax|15,751,703.56|16,202,726.61|
|Other|259,916,325.59|175,326,722.83|
|Total|558,285,409.97|444,544,043.03|

 59. Financial expenses
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|Interest expenses|19,565,782.02|18,404,432.74|
|Note discount interest expenses|1,926,637.10|3,972,141.41|
|Saving interest income|-80,932,111.78|-99,501,969.93|
|Gains/losses from exchange|994,847.30|564,246.83|
|Handling charges|1,553,754.67|1,066,203.21|
|Total|-56,891,090.69|-75,494,945.74|

 60. Income of fair value changes
In RMB
||||
|-|-|-|
|Sources generating income of fair value changes|Amount of this period|Amount of last period|

 Explanation on income of fair value changes
61. Investment income
(1) Particulars about investment income
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|Income of long-term equity investment calculated based on cost|360,000.0|0 595,000.00|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||
|-|-|-|
|Income of long-term equity investment calculated based on equity|549,177,316.88|368,812,771.97|
|Investment income obtained from disposal of long-term equity investment||1,316,200.00|
|Investment income obtained from held-to-maturity investment|91,274,698.13|24,750,377.29|
|Investment income obtained from financial assets available for sales|1,681,280.00|740,000.00|
|Other||4,963.64|
|Total|642,493,295.01|396,219,312.90|

 (2) Income of long-term equity investment calculated based on cost
In RMB
|||||
|-|-|-|-|
|Invested company|Amount of this period|Amount of last period|Reasons of change (+,-)|
|Guolian Security|360,000.00|540,000.00||
|Hengtai Insurance||55,000.00||
|Total|360,000.00|595,000.00|--|

(3) Income of long-term equity investment calculated based on equity
In RMB
|||||
|-|-|-|-|
||Amount of this|Amount of last||
|Invested company|||Reasons of change (+,-)|
||period|period||
|Zhonglian Automobile Electronic Co., Ltd|178,510,823.40|159,648,592.32|Profit growth due to influence from auto industry|
|Bosch Diesel System|316,348,004.76|149,572,192.27|Profit growth due to influence from auto industry|
|Wuxi Weifu Environment Protection Catalyst||||
||37,779,655.68|38,736,025.76|Profit growth due to influence from auto industry|
|Co., Ltd.||||
|Wuxi Weifu-Autocam Fine Machinery Co.||||
||8,813,013.09|14,210,163.84|Calculated on cost method in the Year|
|Ltd.||||
|Wuxi Weifu Fine Machinery Manufacturing||||
||7,725,819.95|6,645,784.49|Profit growth due to influence from auto industry|
|Co., Ltd.||||
|Total|549,177,316.88|368,812,758.68|--|

Investment income description: It should be introduced if there are significant restrictions to repatriation of investment income; it also should be introduced if there is no this kind of significant restrictions:
62. Asset impairment loss
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|I. bad debt loss|5,587,965.51|1,680,267.02|
|II. inventory falling price loss|59,428,785.60|17,865,741.65|
|III. Impairment loss of financial assets available for sales|0.00|0.00|
|IV. Impairment loss of held-to-maturity investment|0.00|0.00|
|V. Impairment loss of long-term equity investment|0.00|0.00|
|VI. Impairment loss of investment real estate|0.00|0.00|
|VII. Impairment loss of fixed assets|23,604,440.97|1,569,688.98|
|VIII. Impairment loss of engineering materials|0.00|0.00|
|IX. Impairment loss of construction in process|0.00|0.00|
|X. Impairment loss of productive biological assets|0.00|0.00|
|XI. Impairment loss of fuel/oil assets|0.00|0.00|
|XII. Impairment loss of intangible assets|0.00|0.00|
|XIII. Goodwill impairment loss|0.00|0.00|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||
|-|-|-|
|XIV. Other|0.00|0.00|
|Total|88,621,192.08|21,115,697.65|

 63. Non-operating income
(1) Non-operating income
In RMB
|||||
|-|-|-|-|
||||Amount reckoned into current|
|Item|Amount of this period|Amount of last period||
||||non-recurring gains/losses|
|Non-current assets disposal gains|17,140,286.06|4,395,890.34|17,140,286.06|
|Including: fixed assets disposal gains|17,140,286.06|4,395,890.34|17,140,286.06|
|Government subsidy|19,375,596.41|15,105,216.19|19,375,596.41|
|Other|1,031,368.28|1,004,572.10|1,031,368.28|
|Total|37,547,250.75|20,505,678.63|37,547,250.75|

 Explanation on non-operating income
(2) Government subsidy reckoned into current gains/losses
In RMB
||||||
|-|-|-|-|-|
|||||Non-recurring|
||Amount of|Amount of|Assets-related/i||
|Item||||gains/losses|
||this period|last period|ncome-related||
|||||(Y/N)|
|Appropriation of industrialization project for injection VE pump|||||
|system with electronically controlled high pressure for|5,510,997.34||Income-related|Y|
|less-emission diesel used|||||
|Grants for R&D of new products|3,410,293.07||Income-related|Y|
|Scientific research grants for THU light diesel 863 project|970,000.00||Income-related|Y|
|Scientific research grants of Tongji University|400,000.00||Income-related|Y|
|Scientific research grants of Weichai Power 863 project|300,000.00||Income-related|Y|
|Scientific research grants of Eco-enviornment Research Center of|||||
||250,000.00||Income-related|Y|
|CAS|||||
|Other deferred income transfer-in|1,632,377.29||Income-related|Y|
|Compensation of relocation losses of parent company|509,264.71||Income-related|Y|
|Finance discount|750,000.00||Income-related|Y|
|Policy-related subsidy|1,798,588.00||Income-related|Y|
|Other expenditure of foreign service development|211,080.00||Income-related|Y|
|Subsidy for scientific and technological innovation team of|||||
||800,000.00||Income-related|Y|
|internal combustion supercharge technology|||||
|Support incentive of technological enterprise innovation|580,000.00||Income-related|Y|
|Subsidy of preferred entrust project|200,000.00||Income-related|Y|
|Fiscal subsidy of staff training for leading personnel and tip-top|||||
||200,000.00||Income-related|Y|
|talent of Ningbo City|||||
|Grants for new product research and development - transfer of|||||
|||7,450,891.69|Income-related|Y|
|deferred income|||||
|Financial support funds (2004) – transfer of long-term account|||||
|||1,710,000.00|Income-related|Y|
|payable|||||
|Innovation support funds of scientific and technological|||||
|||720,000.00|Income-related|Y|
|enterprise|||||
|The first batch of funds for science and technology project of|||||
|||560,000.00|Income-related|Y|
|Ningbo City in 2012|||||

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||||
|-|-|-|-|-|
|Interest subsidies||1,010,000.00|Income-related|Y|
|Support funds||816,330.00|Income-related|Y|
|Subsidy for research and development||300,000.00|Income-related|Y|
|Subsidy for research and development||320,000.00|Income-related|Y|
|Other|1,852,996.00|2,217,994.50|Income-related|Y|
|Total|19,375,596.41|15,105,216.19|--|--|

 2013
|||
|-|-|
|Item|Note|
|Appropriation of industrialization project for injection VEpump system with electronically controlled high pressure|Deferred income transfer-in|
|for less-emission diesel usedGrants for R&D of new products|Deferred income transfer-in|
|Scientific research grants for THU light diesel 863 project|Deferred income transfer-in, agreement signed between WeifuLeader and THU|
|Scientific research grants of Tongji University|Deferred income transfer-in, agreement signed between WeifuLeader and THU|
|Scientific research grants of Weichai Power 863 project|Deferred income transfer-in, agreement signed between WeifuLeader and Weichai Power|
|Scientific research grants of Eco-enviornment ResearchCenter of CAS|Deferred income transfer-in, agreement signed between WeifuLeader and Eco-enviornment Research Center of CAS|
|Other deferred income transfer-in||
|Compensation of relocation losses of parent company||
|Finance discount|Document of Huishan District People’s Government of WuxiCity|
|Policy-related subsidy|Agreement with Weifu Leader and Wuxi Huishan EconomicDevelopment Zone Committee|
|Other expenditure of foreign service development|Ministry of Finance, Ministry of Commerce Chai Qi [2012]No.142|
|Subsidy for scientific and technological innovation team ofinternal combustion supercharge technology|Ningbo Science & Technology Bureau, Finance Bureau ofNingbo City Yong Ke Ji (2013) No. 95|
|Support incentive of technological enterprise innovation|Jiangbei District Science & Technology Bureau of Ningbo City,Jiangbei District Finance Bureau of Ningbo City Bei Qu Ke Ji(2013) No. 12|
|Subsidy of preferred entrust project|Ningbo Science & Technology Bureau, Finance Bureau ofNingbo City Yong Ke Ji (2013) No.57|
|Fiscal subsidy of staff training for leading personnel andtip-top talent of Ningbo City|Ningbo Human Resources and Social Security Bureau, FinanceBureau of Ningbo City Yong Ren She Fa (2012) No.485|

2012
|||
|-|-|
|Item|Note|
|Grants for new product research anddevelopment - transfer of deferredincome|In last year, obtained a subsidy for new product research and development fromministry of finance of Wuxi Xin district. The compensation for expenditure of R&DRMB 7,450,891.69 transfer into non-operation revenue in the Year.|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
|||
|-|-|
|Financial support funds (2004) –transfer of long-term account payable|The support funds for encourage Weifu Jinning entered into the Nanjing Hi-TechIndustry Development Zone allocated from Hi-Tech branch of Nanjing Ministry ofFinance, with term from 5 August 2004 to 4 August 2012. And the funds should bereturn if operated in the Zone less than 15 years. No funds return confirmed in the Yearand transfer to non-operation revenue in the Period|
|Innovation support funds of scientificand technological enterprise|Office of Science & Technology of Jiangbei District, Ningbo City Bei Qu Ke Ji [2012]No.15|
|The first batch of funds for scienceand technology project of NingboCity in 2012|Office of Science & Technology of Ningbo City, Ministry of Finance Yong Ke Ji[2012] No.67; Yong Cai Zheng Jiao [2012] No.616|
|Interest subsidies|People’s government of Huishan District, Wuxi City Hui Fu Fa[2011] No.50|
|Support funds|In line with the Agreement signed between Weifu Leader and Wuxi Huishan EconomicDevelopment Zone Committee, the Company received the funds|
|Subsidy for research and development|Received the R&D subsidy in line with the agreement signed between Weifu Leaderand Nanjing University|
|Subsidy for research and development|Received the R&D subsidy in line with the agreement signed between Weifu Leaderand Weichai Power|

64. Non-operating expenditure
In RMB
|||||
|-|-|-|-|
||Amount of this|Amount of last|Amount reckoned into current|
|Item||||
||period|period|non-recurring gains/losses|
|non-current assets disposal losses|4,013,576.76|1,364,127.23|4,013,576.76|
|Including: fixed assets disposal losses|4,013,576.76|1,364,127.23|4,013,576.76|
|Donations|143,500.00|368,500.00|143,500.00|
|Relocation expenses of parent company|509,264.71||509,264.71|
|Local fund etc.|5,752,779.43|5,091,234.68||
|Other expenditure|2,185,351.62|1,048,857.98|2,185,351.62|
|Total|12,604,472.52|7,872,719.89|6,851,693.09|

 Explanation on non-operating expenditure
65. Income tax expense
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|current income tax calculated based on tax law and relevant rules|133,722,384.85|106,578,282.43|
|Increase/decrease of deferred income tax assets|-30,595,253.49|-2,687,671.53|
|Increase/decrease of deferred income tax liability|-111,033.00|-111,033.00|
|Total|103,016,098.36|103,779,577.90|

 66. Calculation of basic earnings per share and diluted earnings per share
Basic earnings per share=P0÷S
S=S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0-Sk
Among which: P is the net profit attributable to the shareholders of ordinary shares of the Company or the net 0
profit attributable to the shareholders of ordinary shares after the deduction of non-recurring gains and losses; S is
the weighted average number of ordinary shares outstanding; S is the total number of shares at the beginning of
0
the period; S is the number of increased shares due toreserve’s conversion into share capital or distribution of
1
dividends in the reporting period; S is the number of increased shares due to issue of new shares or debt-to-equity
i
in the reporting period; S is the number of decreased shares due to repurchase in the reporting period; S is the
j k
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) number of contraction of shares in the reporting period; M is the number of months in the reporting period; M is 0 i the number of accumulated months from the next month of shares increase to the end of the reporting period; M is j the number of accumulated months from the next month of shares decrease to the end of the reporting period. Diluted earnings pershare=P /(S＋S＋S×M÷M–S×M÷M–S+The weighted average number of ordinary 1 0 1 i i 0 j j 0 k
shares increased due to call warrants, share options and convertible bonds etc.)
Among which, P is the net profit attributable to the shareholders of ordinary shares of the Company or the net 1
profit attributable to the shareholders of ordinary shares after the deduction of non-recurring gains and losses, as adjusted according to Enterprise Accounting Standards and relevant regulations after the effect of diluted potential ordinary shares is taken into account. In the calculation of diluted earnings per share, the Company shall taken the effect of all diluted potential ordinary shares on the net profit attributable to the shareholders of ordinary shares of the Company or the net profit attributable to the shareholders of ordinary shares after the deduction of non-recurring gains and losses and the weighted average number of shares and into account of the diluted earnings per share according to the extent of dilution in sequence until the diluted earnings per share reaches the minimum.
|||||
|-|-|-|-|
|Item|Symbol orcalculation formula|2013|2012|
|Net profits belong to common stock stockholders of theCompany|P0|1,108,221,450.83|889,326,939.46|
|Non-recurring gains/losses|DC|95,135,794.96|36,647,179.14|
|Net profits belong to common stock stockholders of theCompany after duducted non-recurring gains/losses|=P -DC0|1,013,085,655.87|852,679,760.32|
|Total shares amount at period-begin|S0|680,133,995.00|567,275,995.00|
|Number of increased shares due to reserve’sconversion into share capital or distribution ofdividends|S1|340,066,997.00|--|
|Number of increased shares due to issue of new sharesor debt-to-equity|Si|--|112,858,000.00|
|Number of accumulated months from the next monthof shares increase to the end of the reporting period|Mi|12|--|
|Number of decreased shares due to repurchase|Sj|--|--|
|Number of accumulated months from the next monthof shares decrease to the end of the reporting period|Mj|--|--|
|Number of contraction of shares in the reporting period|Sk|--|--|
|Number of months in the reporting period|M0|12|12|
|The weighted average number of ordinary sharesoutstanding|S=S0+S1+Si×Mi÷M0-Sj×Mj÷M0-Sk|1,020,200,992|991,986,492.50|
|Basic EPS|=P ÷S0|1.09|0.90|
|Basic EPS after deducted non-recurring gains/losses|=(P -DC)÷S0|0.99|0.86|

[Note] The Company increase the capital stock from retained profit for the period, and exercise retroactive adjustment for the weighted average and EPS of common shares that outstanding last period
67. Other consolidated income
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|1.gains (losses) amount generated by available-for-sale financial assets|42,490,055.00|56,509,360.00|
|Subtotal|42,490,055.00|56,509,360.00|
|Total|42,490,055.00|56,509,360.00|

 Explanation on other consolidated income
The privately offering share of SDEC was purchased by the Company in March 2012 with restriction term of one
year; in June 2013, privately offering shares of Miracle Logistics was purchased by the Company with restiction of
one year. RMB 42,490,055.00 was reckoned into capital reserve after deduction of deferred income tax liability
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) from changes of fair value at period-end
68. Notes to statement of cash flow
(1) Other cash received in relation to operation activities
In RMB
|||
|-|-|
|Item|Amount|
|Income from bank deposit interest|67,113,336.03|
|Government subsidy|80,493,264.00|
|Current amount|27,101,140.72|
|Other|1,031,368.28|
|Total|175,739,109.03|

 Explanation on other cash received in relation to operation activities
(2) Other cash paid in relation to operation activities
In RMB
|||
|-|-|
|Item|Amount|
|Expenses of cash paid|177,182,122.82|
|Expenses of management cash paid|260,180,276.60|
|Other|1,131,292.26|
|Total|438,493,691.68|

 Explanation on other cash paid in relation to operation activities
(3) Cash received from other investment activities
In RMB
|||
|-|-|
|Item|Amount|
|Relocation compensation received|27,606,673.11|
|The cash and cash equivalent obtained from subsidiary Weifu-Autocam is larger than the||
||18,479,719.38|
|cash paid for obtaining the subsidiary||
|Total|46,086,392.49|

 Explanation on cash received from other investment activities
(4) Cash paid related with investment activities
In RMB
|||
|-|-|
|Item|Amount|
|Relocation expenses paid (including compensation of losses for the lessee)|1,950,855.71|
|Total|1,950,855.71|

 Explanation on cash paid related with investment activities
(5) Other cash received in relation to financing activities
In RMB
|||
|-|-|
|Item|Amount|

Explanation on other cash received in relation to financing activities
(6) Cash paid related with financing activities
In RMB
|||
|-|-|
|Item|Amount|
|National debt paid transfer to loans|339,091.00|
|Total|339,091.00|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) Explanation on cash paid related with financing activities
69. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
||||
|-|-|-|
|Supplementary information|This Period|Last Period|
|1. Net profit adjusted to cash flow of operation activities:|--|--|
|Net profit|1,154,293,532.95|934,237,292.21|
|Add: Assets impairment provision|88,621,192.08|21,115,697.65|
|Depreciation of fixed assets, consumption of oil assets and depreciation of|||
||173,869,513.18|151,856,239.74|
|productive biology assets|||
|Amortization of intangible assets|10,993,997.71|7,325,734.12|
|Amortization of long-term deferred expenses|6,006,154.32|3,614,305.84|
|Loss from disposal of fixed assets, intangible assets and other long-term|||
||-13,231,886.25|-3,031,763.11|
|assets(gain is listed with ―-‖)|||
|Loss of disposing fixed assets(gain is listed with ―-‖)|105,176.95||
|Financial expenses (gain is listed with ―-‖)|19,565,782.02|18,404,432.74|
|Investment loss (gain is listed with ―-‖)|-642,493,295.01|-396,219,312.90|
|Decrease of deferred income tax asset( (increase is listed with ―-‖)|-30,595,253.49|-2,687,671.53|
|Increase of deferred income tax liability (decrease is listed with ―-‖)|-111,033.00|-111,033.00|
|Decrease of inventory (increase is listed with ―-‖)|-286,714,190.20|106,211,262.03|
|Decrease of operating receivable accounts (increase is listed with ―-‖)|-354,068,354.41|469,130,650.28|
|Increase of operating payable accounts (decrease is listed with ―-‖)|676,252,906.21|-144,086,615.61|
|Other|1,463,880.07||
|Net cash flow arising from operating activities|803,958,123.13|1,165,759,218.46|
|2. Material investment and financing not involved in cash flow|--|--|
|3. Net change of cash and cash equivalents:|--|--|
|Balance of cash at period end|2,288,739,620.44|2,432,803,698.08|
|Less: Balance of cash equivalent at year-begin|2,432,803,698.08|745,778,764.22|
|Net increasing of cash and cash equivalents|-144,064,077.64|1,687,024,933.86|

 (2) Relevant information about obtaining/disposal of subsidiary and other business unit in report period In RMB
||||
|-|-|-|
|Supplementary information|Amount of this period|Amount of last period|
|I. Relevant information about obtaining subsidiary and other business units:|--|--|
|1. price of obtaining subsidiary and other operation unit|1,401,687.00||
|2. cash and cash equivalent obtained from subsidiary and other operation unit|1,401,687.00||
|Less: cash and cash equivalent held by subsidiary and other operation unit|19,881,406.38||
|3. net cash received from subsidiary and other operation unit|-18,479,719.38||
|4. net assets obtained from subsidiary|130,097,039.43||
|Current assets|118,988,469.60||
|Non-current assets|77,303,807.36||
|Current liability|66,195,237.53||
|II. Relevant information about disposal of subsidiary and other business units:|--|--|

(3) Constitution of cash and cash equivalent:
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Ⅰ. Cash|2,288,739,620.44|2,432,803,698.08|
|Including: stock cash|1,127,043.52|481,336.46|
|Bank deposit available for payment at any time|2,287,612,576.92|2,432,322,361.62|
|Ⅲ. Balance of cash and cash equivalent at period-end|2,288,739,620.44|2,432,803,698.08|

 Explanation on constitution of cash and cash equivalent:
70. Notes of changes ofowners’ equity
Explain the name and adjusted amount in―Other‖ at end of last period as well as the retroactive adjustment arising from enterprise combination under same control:
VIII. Accounting treatment of assets securitization
1. Explain the main exchange of assets securitization and its accounting treatment and provision of
bankruptcy-remote
2. Subject of special purpose without controlling rights on hand by actually bear the risks
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Total operationrevenue in thisperiod|||
||Total assets at|Total liability at|Net assets at||Net profit in this||
|Name||||||Note|
||period-end|period-end|period-end||period||

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
IX. Related Parties and Transactions
1. Parent company of the Company
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||||Proportion of||||
|Parent|Relationship|Nature|Registrationplace|Legal|Business|Registered|shares held to|Proportion ofvoting right to the|Final controller of the Company|Organization|
|company||||representative|nature|capital|the Company|||code|
|||||||||Company (%)|||
||||||||(%)||||
||||Wuxi||||||State-owned Assets Supervision &||
|Wuxi|||||Operation of|358937.924146(|||||
||Controlling|State-owned||Jiang|||||Administration Commission of||
|Industry|||||state-owned|in 10 thousand|20%|20%||13600265-4|
||shareholder|exclusively||Guoxiong|||||Wuxi Municipality of Jiangsu||
|Group|||||assets|Yuan)|||||
||||||||||Province||

Explanation on parent company of the enterprise
Wuxi Industry Development Group Co., Ltd was solely state-owned enterprise funded and established by Wuxi MunicipalPeople’s Government which mainly took responsibility of authorizing the state-owned assets operation within a certain areas, investment management of significant project, investment and development of manufacturing and services and venture capital in high-tech achievement
2. Subsidiary of the Company
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Registration|Legal|||Proportion of|Proportion of|Organization|
|Subsidiary|Type|Nature|||Business nature|Registered capital||||
||||place|representative|||shares held (%)|voting right (%)|code|
||Controlling||||Parts of combustion|||||
|Weifu Jinning||Limited company|Nanjing|Chen Xuejun||346,286,825.80|80%|80%|13497754-6|
||subsidiary||||engine|||||
||Controlling||||Vehicle exhaust|||||
|Weifu Leader||Limited company|Wuxi|Chen Xuejun||502,596,300.00|94.81%|94.81%|13600159-8|
||subsidiary||||cleaner, muffler|||||
||Controlling||||Parts of combustion|||||
|Weifu Mashan||Limited company|Wuxi|Wang Xiaodong||45,000,049.36|100%|100%|13625011-3|
||subsidiary||||engine|||||
||Controlling||||Parts of combustion|||||
|Weifu Chang’an||Limited company|Wuxi|Wang Xiaodong||60,000,000.00|100%|100%|70354868-9|
||subsidiary||||engine|||||
||Controlling|||||||||
|Weifu Nano||Limited company|Wuxi|Xu Liangfei|Nano material|30,000,000.00|80%|80%|74066428-3|
||subsidiary|||||||||
|Weifu Diesel|Controlling||||Parts of combustion|||||
|||Limited company|Wuxi|Chen Xuejun||300,000,000.00|100%|100%|76418029-1|
|System|subsidiary||||engine|||||
|Weifu||||||||||
||Controlling|||||||||
|International||Limited company|Wuxi|Gao Guoyuan|International trade|30,000,000.00|100%|100%|76103151-4|
||subsidiary|||||||||
|Trade||||||||||
||Controlling||||Parts of combustion|||||
|Weifu ITM||Limited company|Wuxi|Chen Xuejun||160,000,000.00|100%|100%|72418270-0|
||subsidiary||||engine|||||
||Controlling||||Parts of combustion|||||
|Weifu Schmidt||Limited company|Wuxi|Chen Xuejun||48,000,000.00|66%|66%|69449050-9|
||subsidiary||||engine|||||
|Weifu Tianli|Controlling|Limited company|Ningbo|Chen Xuejun|Parts of combustion|104,690,000.00|51%|51%|73424810-1|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||subsidiary||||engine|||||
||Controlling||||Parts of combustion|||||
|Weifu Jialin||Limited company|Chaoyang|Xu Yunfeng||8,000,000.00|51%|51%|78877120-5|
||subsidiary||||engine|||||
||Controlling||||Parts of combustion|||||
|Weifu Tianshi||Limited company|Quanjiao|Wang Weiliang||10,000,000.00|52%|52%|57301523-4|
||subsidiary||||engine|||||
||Controlling||||Parts of combustion|||||
|Kunming Xitong||Limited company|Kunming|Xu Yunfeng||4,000,000.00|70%|70%|77554741-5|
||subsidiary||||engine|||||
||Controlling||||Parts of combustion|||||
|Weifu-Autocam||Limited company|Wuxi|Gao Guoyuan||US$10,000,000.00|51%|51%|77540714-8|
||subsidiary||||engine|||||

3. Details of joint-venture and affiliated enterprise of the Company
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||||Equity|Proportion of|||
|||Register||||proportion|voting rights in||Organization|
|Invested company|Type||Legal rep.|Business nature|Register capital|||Relationship||
|||place||||held by the|invested company||code|
|||||||Company (%)|(%)|||
|I. Joint venture||||||||||
|Wuxi Weifu Environment|joint-venture of|||||||Joint-venture of||
|||Wuxi|Ou Jianbin|Catalyst|50,000,000.00|49%|49%||75969849-1|
|Protection Catalyst Co., Ltd.|Sino-foreign|||||||Weifu Leader||
|II. Associated company||||||||||
|||||Accessories and||||||
||joint-venture of||BOHLER|matching parts of|USD230,000,00|||Associated||
|Bosch Diesel System||Wuxi||||34%|34%||60791796-6|
||Sino-foreign||KLAUS|internal combustion|0.00|||company||
|||||engine||||||
|||||Accessories and||||||
|Weifu Precision Machinery|Limited|||matching parts of||||Associated||
|||Wuxi|Chen Haojun||12,000,000.00|20%|20%||73944370-7|
|Manufacture Co., Ltd.|company|||internal combustion||||company||
|||||engine||||||

4. Particulars about other related parties
||||
|-|-|-|
|Other Related parties|Relationship with the Company|Organization code|
||Second largest shareholder of the||
|German Bosch Company|||
||Company||

Explanation on other related parties:
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
5. Related transaction
(1) Statement of commodity purchased and labor service received
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Amount of this period||Amount of last period||
|||Pricing way and decision making|||||
|Related parties|Content|||Ratio in similar||Ratio in similar|
|||procedures|Amount||Amount||
|||||transactions (%)||transactions (%)|
|Wuxi Weifu Fine Machinery|Products purchase or|Market price / approved by shareholders|||||
||||74,351,203.93|2.31%|73,419,425.84|2.6%|
|Manufacturing Co., Ltd.|receiving labor service|general meeting|||||
||Products purchase or|Market price / approved by shareholders|||||
|Bosch Diesel System|||202,375,098.93|6.3%|153,709,737.35|5.43%|
||receiving labor service|general meeting|||||
|Wuxi Weifu Environment Protection|Products purchase or|Market price / approved by shareholders|||||
||||570,685,691.38|17.76%|515,432,097.39|18.25%|
|Catalyst Co., Ltd.|receiving labor service|general meeting|||||
|Weifu-Autocam (joint venture of the|||||||
||Products purchase or|Market price / approved by shareholders|||||
|Company in last year and from Jan. to|||10,620,477.22|0.33%|15,279,076.96|0.54%|
||receiving labor service|general meeting|||||
|June of the Period)|||||||
||Products purchase or|Market price / approved by shareholders|||||
|German Bosch Company|||73,342,204.50|2.28%|35,730,141.61|1.27%|
||receiving labor service|general meeting|||||

Statement of commodity sales and labor service provided
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Amount of this period||Amount of last period||
|||Pricing way and decision making|||||
|Related parties|Content|||Ratio in similar||Ratio in similar|
|||procedures|Amount||Amount||
|||||transactions (%)||transactions (%)|
|Wuxi Weifu Fine Machinery|Selling products or|Market price / approved by shareholders|||||
||||18,615,264.63|0.33%|16,199,710.11|0.32%|
|Manufacturing Co., Ltd.|providing labor service|general meeting|||||
||Selling products or|Market price / approved by shareholders|||||
|Bosch Diesel System|||601,336,432.13|10.76%|321,678,319.96|6.41%|
||providing labor service|general meeting|||||
|Wuxi Weifu Environment Protection|Selling products or|Market price / approved by shareholders|||||
||||17,163,135.62|0.31%|9,549,026.73|0.19%|
|Catalyst Co., Ltd.|providing labor service|general meeting|||||
|Weifu-Autocam (joint venture of the|||||||
||Selling products or|Market price / approved by shareholders|||||
|Company in last year and from Jan. to|||2,103,498.69|0.04%|3,104,958.20|0.06%|
||providing labor service|general meeting|||||
|June of the Period)|||||||
||Selling products or|Market price / approved by shareholders|||||
|German Bosch Company|||||14,898,845.25|0.3%|
||providing labor service|general meeting|||||

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) (2) Related trusteeship/contract
Statement of related trusteeship/contract
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Income|
|Assignee/contract|Assigner/contract||||||
|||Assts type|Starting from|Terminated dated|Pricing basis|recognized in this|
|-out party|or||||||
|||||||period|

Statement of entrusted management and contract
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Income|
|Assignee/contract|Assigner/contract||||||
|||Assts type|Starting from|Terminated dated|Pricing basis|recognized in this|
|-out party|or||||||
|||||||period|

Explanation on related trusted ship and contract
(3) Related leasing
Leasing-out
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Leasing income|
||||||Pricing basis for||
|Lessor|Lessee|Type of leasing|Starting from|Terminated dated||recognized in|
||||||leasing income||
|||||||period|

 Statement of leasing
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Leasing income|
||||||Pricing basis for||
|Lessor|Lessee|Type of leasing|Starting from|Terminated dated||recognized in|
||||||leasing income||
|||||||period|

 Explanation on related leasing:
(4) Related guarantee
In RMB
|||||||
|-|-|-|-|-|-|
||||||Whether guarantee|
|Guarantee provided|Guarantee received|Guarantee amount|Starting from|Terminated dated||
||||||implemented or not|

 Explanation on related leasing:
(5) Borrowed funds from related party
In RMB
||||||
|-|-|-|-|-|
|Related parties|Borrowed funds|Starting from|Terminated dated|Note|
|Borrow-in|||||
|Borrow-out|||||

(6) Assets transfer, debt restructure of related party
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||||Amount of this period||Amount of last period||
|Related parties|Type|Content|Pricing principal||Ratio in similar||Ratio in similar|
|||||Amount||Amount||
||||||transactions (%)||transactions (%)|

 (7) Other related transactions
Equity transferring
Equity transfer for year of 2012:
A. according to the equity transfer agreement signed between the Company and Wuxi Industry Group, 1.5 percent equity of Bosch Diesel System held by Wuxi Industry Group was transferred with consideration RMB 206.89 million paid by the Company.
B. according to the equity transfer agreement signed between the Company and German Bosch Company, 1
percent equity of Bosch Diesel System held by German Bosch Company was transferred with consideration RMB
137.526 million paid by the Company.
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) C. according to the agreement signed between Weifu Leader and Wuxi Industry Group, euqity of Wuxi Venture Capital Group Co., Ltd. held by Weifu Leader was transferred to Wuxi Industry Group with consideration RMB 3.9762 million paid by Wuxi Industry Group.
The above equity value was assessed by professional assessment organization and amount for transfer is reference to the assessment result from professional insitute.
There are no related transaction of equity transfer occurred in 2013
Trademark transfer
According to the trademark transfer agreement signed between the Company and Wuxi Industry Group, trademark held by Wuxi Industry Group were purchased by the Company with consideration of RMB 16.1557 million (tax included).
Land use right transfer
According to the state-owned land use right transfer agreement signed between the subsidary WeifuChang’an and Wuxi Industry Group, the land assets located at No.88, Huichang Road, Huishan District, Wuxi City owned by Wuxi Industry Group was transferred by WeifuChang’an, and RMB 51.25 million in total should be paid by WeifuChang’an.
Other related transactions
|||||
|-|-|-|-|
|Item|Related parties|2013|2012|
|Payable Technology service etc.|Bosch Diesel System|5,039,383.08|6,817,692.00|
|Rental receivable|Weifu-Autocam|--|1,722,358.00|
|Rental receivable|Wuxi Weifu Environment Protection CatalystCo.,Ltd.|2,061,647.33|1,860,956.00|
|Fixed assets purchased|Wuxi Weifu Environment Protection CatalystCo.,Ltd.|--|376,521.74|
|Fixed assets purchased|Bosch Diesel System|96,395.27|--|
|Land and trademark fee payable|Wuxi Industry Group|4,323,200.00|6,261,546.16|
|Technology royalties paid etc.|German Bosch Company|16,458,215.51|17,930,478.31|

 6. Account receivable/payable for related parties
Account receivable from related parties
In RMB
|||||||
|-|-|-|-|-|-|
|||Amount at period-end||Amount at period-begin||
|Item|Related parties|||||
|||Book balance|Bad debt reserve|Book balance|Bad debt reserve|
||Wuxi Weifu Fine Machinery|||||
|Note receivable||1,080,000.00||||
||Manufacturing Co., Ltd.|||||
||Wuxi Weifu Fine Machinery|||||
|Account receivable||1,180,465.57||||
||Manufacturing Co., Ltd.|||||
|Account receivable|Bosch Diesel System|100,164,734.24||53,027,656.44||
||Wuxi Weifu-Autocam Fine|||||
|Account receivable||||1,865,602.94||
||Machinery Co. Ltd.|||||
|Account paid in||||||
||Wuxi Industry Group|||15,155,700.00||
|advance||||||
|Account paid in|Wuxi Weifu Environment|||||
|||||683,559.35||
|advance|Protection Catalyst Co., Ltd.|||||

Account payable for related parties
In RMB
|||||
|-|-|-|-|
|||Amount at|Amount at|
|Item|Related parties|||
|||period-end|period-begin|
|Note payable|Wuxi Weifu Environment Protection Catalyst Co., Ltd.|80,000,000.00||
|Account payables|Wuxi Weifu Fine Machinery Manufacturing Co., Ltd.|10,450,446.23|19,657,909.58|
|Account payables|Wuxi Weifu Environment Protection Catalyst Co., Ltd.|175,293,136.79|141,686,937.76|
|Account payables|Bosch Diesel System|5,623,282.56|5,623,282.56|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
|||||
|-|-|-|-|
|Account payables|Wuxi Weifu-Autocam Fine Machinery Co. Ltd.||1,078,898.36|
|Account payables|German Bosch Company|23,536,386.44|6,902,117.57|
|Account received||||
||Wuxi Weifu Environment Protection Catalyst Co., Ltd.|2,627,152.95|4,146,398.48|
|in advance||||
|Other payables|Wuxi Industry Group|17,250,000.00||

X. Share-based payment
1. General particular about share-based payment
In RMB Explanation on share-based payment
2. Share-based payment settled by equity
In RMB Explanation on share-based payment settled by equity
3. Share-based payment settled by cash
In RMB Explanation on share-based payment settled by cash
4. Share-based payment settled by service
In RMB 5. Particular about amendment of share-based payment and its termination
XI. Contingent events
1. Contingent liability and its financial influence formed by un-settle lawsuits or arbitration
Nil
2. Contingent liability and its financial influence formed from debt guarantee offered to other units
Nil
Other contingent liability and its financial influence:
Assets pledged or mortgaged up to 31 December 2013:
1. RMB 158.82 million savings for issuing bank acceptance bill or marginal deposit
2. RMB 103.06 million bank acceptance bill in note receivable of the Company was pledged to the bank for guarantee of bank acceptance issued
XII. Commitments
1. Material commitments
2. Commitments made previously
In 2012, according to the Trademark Transfer Agreement signed with Wuxi Industry Group, the Company purchase the trademark―Xi‖ held by Wuxi Industry Group, relevant procedures have completed in 2013.
XIII. Subsequent events of balance sheet
1. Explanation on major event after balance sheet date
In RMB
|||||
|-|-|-|-|
|||Influence on financial status|Reasons for no estimation on|
|Item|Content|||
|||and operation results|influence amount|

 2. Profit distribution after balance sheet date
In RMB
|||
|-|-|
|Profit or dividend plans to distributed|306,060,297.60|
|Profit or dividend declare to distributed which have been approved|306,060,297.60|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) 3. Other explanation after balance sheet date
1. According to the resolution of 15th meeting of 7th session of the Board held on 15 January 2014, the Company plans to invest the euqity investment fund of Shanghai Chengding Detong with RMB 100 million, the serlf-owned capital of the Compay.
2. According to the resolution of 16th meeting of 7th session of the Board held on 11 April 2014, the Company plans to execise trust management with self-owned fund up to RMB 2 billion.
XIV. Other major event
1. Non-monetary assets exchange
2. Debt reorganization
3. Enterprise combination
4. Leasing
5. Financial instrument issued outside and convertible to shares in report period
6. Assets and liability measured by fair value
In RMB
|||||||
|-|-|-|-|-|-|
|||Gains/losses of|Changes of fair value|||
||Amount at|||Impairment accrual|Amount at|
|Item||change of fair value|reckoned into equity|||
||period-begin|||in this term|period-end|
|||in this term|accumulatively|||
|Financial assets||||||
|3.Financial assets||||||
||265,689,600.00|42,490,055.00|||385,009,400.00|
|available for sales||||||
|Total|265,689,600.00|42,490,055.00|||385,009,400.00|
|Financial liability|0.00||||0.00|

 7. Foreign currency financial assets and financial liability
In RMB
|||||||
|-|-|-|-|-|-|
||||Changes of fair|||
|||Gains/losses of||||
||Amount at||value reckoned into|Impairment accrual|Amount at|
|Item||change of fair value||||
||period-begin||equity|in this term|period-end|
|||in this term||||
||||accumulatively|||
|Financial assets||||||
|Subtotal of financial||||||
||0.00||||0.00|
|assets||||||
|Financial liability|0.00||||0.00|

 8. Main content of pension plan and major changes
Pension plan has no changes
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) 9. Other
XV. Principle notes of financial statements of parent company
1. Accounts receivable
(1) Accounts receivable
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing amount||||Opening amount||||
||Book balance||Bad debt reserve||Book balance||Bad debt reserve||
|Types|||||||||
|||Proportio||Proporti||Proporti||Proporti|
||Amount||Amount||Amount||Amount||
|||n (%)||on (%)||on (%)||on (%)|
|Account receivable with|||||||||
|single significant amount|||||||||
||||||6,919,976.11|1.04%|6,919,976.11|100%|
|and withdrawal bad debt|||||||||
|provision separately|||||||||
|Account receivable of bad debt provision withdrawal by combination|||||||||
|Including: Age|||||||||
||371,879,011.88|55.64%|3,223,908.39|0.87%|370,797,881.41|55.42%|2,921,815.31|0.79%|
|combination|||||||||
|Subsidiary combination|296,435,522.03|44.35%|||286,265,572.30|42.78%|||
|Subtotal of group|668,314,533.91|99.99%|3,223,908.39|0.48%|657,063,453.71|98.2%|2,921,815.31|0.44%|
|Accounts with single|||||||||
|significant amount and|||||||||
||97,292.64|0.01%|97,292.64|100%|5,103,395.48|0.76%|5,103,395.48|100%|
|bad debts provision|||||||||
|accrued individually|||||||||
|Total|668,411,826.55|--|3,321,201.03|--|669,086,825.30|--|14,945,186.90|--|

 Explanation for category of account receivables:
Accounts receivable with over RMB 1 million of single amounts is accounts receivable of significant single amount. To accounts receivable of significant single amount, provision for bad debts is still made by aging analysis method because no objective evidence can manifest that Contingent depreciation will exceed provision for bad debts by aging analysis method. Account receivable from subsidiaries is not withdrawal bad debt provision by the Company.
Account receivable with single significant amount and withdrawal bad debt provision separately at period end
□Applicable√ Not applicable
In combination, accounts receivable whose bad debts provision was accrued by age analysis
√Applicable□ Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing amount|||Opening amount|||
||Book balance|||Book balance|||
|Age|||||||
|||Proporti|Bad debt reserve||Proporti|Bad debt reserve|
||Amount|||Amount|||
|||on (%)|||on (%)||
|Within 1 year|||||||
|Including:|--|--|--|--|--|--|
|Within 6|||||||
||362,622,150.61|97.51%||365,426,500.42|98.55%||
|months|||||||
|6 months to 1|||||||
||6,228,167.55|1.68%|622,816.76|2,543,272.70|0.69%|254,327.27|
|year|||||||
|Subtotal of|||||||
||368,850,318.16|99.19%|622,816.76|367,969,773.12|99.24%|254,327.27|
|within 1 year|||||||
|1-2 years|527,985.41|0.14%|105,597.08|43,700.39|0.01%|8,740.08|
|2-3 years|8,689.60||3,475.84|209,433.24|0.06%|83,773.30|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||||||
|-|-|-|-|-|-|-|
|Over 3 years|2,492,018.71|0.67%|2,492,018.71|2,574,974.66|0.69%|2,574,974.66|
|Total|371,879,011.88|--|3,223,908.39|370,797,881.41|--|2,921,815.31|

 In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable
□Applicable√ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable
□Applicable√ Not applicable
Accounts with single significant amount and bad debts provision accrued individually at end of period
√Applicable□ Not applicable
In RMB
||||||
|-|-|-|-|-|
|Contents of|||||
||||Provision proportion||
|account|Book balance|Bad debt reserve||Reason for provision|
||||(%)||
|receivables|||||
|Other clients|97,292.64|97,292.64|100%|The account was too old to collect|
|Total|97,292.64|97,292.64|--|--|

(2) Reversal or recovery of account receivables during the reporting period
In RMB
||||||
|-|-|-|-|-|
|||Basis for determination||Amounts|
|Contents of account|Reason for reversal of||Accumulated provision of bad debt||
|||of original bad debt||reversed or|
|receivables|recovery||reserve before reversal or recovery||
|||reserve||recovered|

 Provision for bad debt reserve for account receivable with single significant or minor amount but tested for impairment separately as at period-end:
In RMB
||||||
|-|-|-|-|-|
|Contents of account receivables|Book balance|Bad debt amount|Provision proportion (%)|Reason|

 Explanation for account receivable with single minor amount while the risks of the group categorized with similar risk characteristics are relative significant:
(3) Account receivables actually written-off during the reporting period
In RMB
|||||||
|-|-|-|-|-|-|
||||||Arising from|
||Nature of account|Time of|Amount|||
|Name of the company||||Reason for write-off|related transactions|
||receivables|write-off|written off|||
||||||(Y/N)|
|||||Old account age and||
|Liuzhou Special Diesel Engine Factory|Amount for goods||1,612,018.00||N|
|||||unable to collected||
|Shaoyang Shenfeng Engine||||Old account age and|N|
||Amount for goods||1,589,871.23|||
|Manufacturing Co., Ltd.||||unable to collected||
|Changzhou Wanzhou Diesel Engine||||Old account age and|N|
||Amount for goods||1,500,000.00|||
|Company||||unable to collected||
|||||Old account age and|N|
|Yuejin Light Automobile Co., Ltd.|Amount for goods||1,218,086.88|||
|||||unable to collected||
|Henan Agricultural Machinery||||Old account age and|N|
||Amount for goods||1,000,000.00|||
|Company||||unable to collected||
|Hubei Duoling Engine Machinery Co.,||||Old account age and|N|
||Amount for goods||775,624.61|||
|Ltd.||||unable to collected||
|Henan Xinxiang Internal-Combustion||||Old account age and|N|
||Amount for goods||753,754.25|||
|Engine Plant||||unable to collected||
|||||Old account age and|N|
|Yunnan Jinma Diesel Engine Factory|Amount for goods||579,210.11|||
|||||unable to collected||
|Dongfeng Nanchong Automobile Co.,||||Old account age and|N|
||Amount for goods||569,974.38|||
|Ltd.||||unable to collected||
|Guangxi Liuzhou Zhongxing Engine||||Old account age and|N|
||Amount for goods||474,895.94|||
|Plant||||unable to collected||

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
|||||||
|-|-|-|-|-|-|
|Zhejiang Agricultural Machinery||||Old account age and|N|
||Amount for goods||457,800.00|||
|Accessories Company||||unable to collected||
|||||Old account age and|N|
|Changchai Group Jintan Diesel Plant|Amount for goods||375,035.52|||
|||||unable to collected||
|Fujian Longma Agricultural Vehicles||||Old account age and|N|
||Amount for goods||365,169.92|||
|Manufacturing Co., Ltd.||||unable to collected||
|||||Old account age and|N|
|Other clients|Amount for goods||947,027.30|||
|||||unable to collected||
|Total|--|--|12,218,468.14|--|--|

 Explanation for write-off of account receivables:
(4)Account receivables due from the shareholders holding5% or above voting shares of the Company during the reporting period
In RMB
||||||
|-|-|-|-|-|
||Closing amount||Opening amount||
|Name of the company||Bad debt provision|Book balance|Bad debt provisionaccrual|
||Book balance||||
|||accrual|||

 (5) Properties and contents of other accounts receivable with large amount
(6) Top 5 account receivable
In RMB
||||||
|-|-|-|-|-|
||Relationship with the|||Proportion in total|
|Name of the company||Amount|Terms||
||Company|||account receivables (%)|
|Weifu Chang’an|Subsidiary|112,253,896.68|Within 1 year|16.79%|
|Weifu Diesel System|Subsidiary|103,294,005.96|Within 1 year|15.45%|
|Client3|Client|64,275,778.82|Within 1 year|9.62%|
|Bosch Diesel System|Associated company|47,593,182.73|Within 1 year|7.12%|
|Client5|Client|44,735,399.57|Within 1 year|6.69%|
|Total|--|372,152,263.76|--|55.67%|

 (7) Account receivables due from related parties
In RMB
|||||
|-|-|-|-|
||||Proportion in total account|
|Name of the company|Relationship with the Company|Amount||
||||receivables (%)|
|Weifu Diesel System|Subsidiary|103,294,005.96|15.45%|
|Weifu Chang’an|Subsidiary|112,253,896.68|16.79%|
|Weifu Mashan|Subsidiary|35,317,926.61|5.28%|
|Weifu International Trade|Subsidiary|7,014,674.33|1.05%|
|Kunming Xitong|Subsidiary|6,326,805.11|0.95%|
|Weifu Tianshi|Subsidiary|24,142,970.10|3.61%|
|Weifu-Autocam|Subsidiary|2,889,772.03|0.43%|
|Weifu ITM|Subsidiary|5,195,471.21|0.78%|
|Bosch Diesel System|Associated company|47,593,182.73|7.12%|
|Total|--|344,028,704.76|51.46%|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) (8) Transferring amount is 0 Yuan for accounts receivable not conforming to terminate the confirmation. (9) It is required to introduce the relevant transaction arrangement for asset securitization taking accounts receivables as the standard
2. Other accounts receivable
(1) Other accounts receivable
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing amount||||Opening amount||||
||Book balance||Bad debt reserve||Book balance||Bad debt reserve||
|Types|||||||||
||Amount|||Propo||||Propo|
|||Proportio||||Proport|||
||||Amount|rtion|Amount||Amount|rtion|
|||n (%)||||ion (%)|||
|||||(%)||||(%)|
|Other receivable with single|||||||||
|significant amount and|||||||||
||2,000,000.00|27.23%|2,000,000.00|100%|2,000,000.00|7.15%|2,000,000.00|100%|
|withdrawal bad debt provision|||||||||
|separately|||||||||
|Other receivable of bad debt provision withdrawal by combination|||||||||
|Including: Age combination|2,943,800.84|40.09%|36,515.70|1.24%|1,628,348.19|5.82%|46,924.84|2.88%|
|Subsidiary|||||||||
||||||21,927,747.27|78.44%|||
|combination|||||||||
|Subtotal of group|2,943,800.84|40.09%|36,515.70|1.24%|23,556,095.46|84.26%|46,924.84|0.2%|
|Other receivable with single|||||||||
|minor amount while withdrawal|2,400,000.00|32.68%|2,400,000.00|100%|2,400,000.00|8.59%|2,400,000.00|100%|
|bad debt provision separately|||||||||
|Total|7,343,800.84 -|-|4,436,515.70|--|27,956,095.46|--|4,446,924.84|--|

 Explanation for category of other receivables:
Other accounts receivable with over RMB 1 million of single amount is other receivables of significant single amount. To other receivables of significant single amount, provision for bad debts is still made by aging analysis method because no objective evidence can manifest that Contingent depreciation will exceed provision for bad debts by aging analysis method. Account receivable from subsidiaries is not withdrawal bad debt provision by the Company.
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period
√Applicable□ Not applicable
In RMB
||||||
|-|-|-|-|-|
|Contents of other|||||
||Book balance|Bad debt amount|Provision proportion (%)|Reason|
|receivables|||||
|Jiangsu Techniques and|||||
||2,000,000.0|0 2,000,000.00|||
|Technology Center|||||
|Total|2,000,000.0|0 2,000,000.00|--|--|

In combination, other accounts receivable whose bad debts provision was accrued by age analysis
√Applicable□ Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing amount|||Opening amount|||
||Book balance|||Book balance|||
|Age|||||||
|||Proporti|Bad debt reserve||Proporti|Bad debt reserve|
||Amount|||Amount|||
|||on (%)|||on (%)||
|Within 1 year|||||||
|Including:|--|--|--|--|--|--|
|Within 6 months|2,635,947.35|89.54%||1,296,724.00|79.64%||
|6 months to 1|||||||
||250,550.00|8.51%|25,055.00|200,000.00|12.28%|20,000.00|
|year|||||||

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||||||
|-|-|-|-|-|-|-|
|Subtotal of|||||||
||2,886,497.35|98.05%|25,055.00|1,496,724.00|91.92%|20,000.00|
|within 1 year|||||||
|1-2 years|57,303.49|1.95%|11,460.70|128,624.19|7.9%|25,724.84|
|2-3 years||||3,000.00|0.18%|1,200.00|
|Total|2,943,800.84|--|36,515.70|1,628,348.19|--|46,924.84|

 In combination, withdrawal proportion of bad debt provision based on balance proportion for other account receivable
□Applicable√ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable
□Applicable√ Not applicable
Other receivable with single minor amount while withdrawal bad debt provision separately at end of period
√Applicable□ Not applicable
In RMB
||||||
|-|-|-|-|-|
|||Bad debt|Provision||
|Contents of other receivables|Book balance|||Reason for provision|
|||reserve|proportion (%)||
|Nanjing University|600,000.00|600,000.00|8.17%|Bad debt reserve accrual totally|
|Southeast University|600,000.00|600,000.00|8.17%|Bad debt reserve accrual totally|
|Nanjing University of Science and Technology|600,000.00|600,000.00|8.17%|Bad debt reserve accrual totally|
|Nanjing University of Technology|600,000.00|600,000.00|8.17%|Bad debt reserve accrual totally|
|Total|2,400,000.00|2,400,000.00|--|--|

(2) Reversal or recovery of other receivables during the reporting period
In RMB
||||||
|-|-|-|-|-|
|Contents of other|Reason for reversal|Basis for determination of|Accumulated provision of bad debt|Amounts reversed|
|receivables|of recovery|original bad debt reserve|reserve before reversal or recovery|or recovered|

 Provision for bad debt reserve for other receivable with single significant or minor amount but tested for impairment separately as at period-end: In RMB
||||||
|-|-|-|-|-|
|Contents of account|||||
||Book balance|Bad debt amount|Provision proportion (%)|Reason|
|receivables|||||

Explanation for other receivable with single minor amount while the risks of the group categorized with similar risk characteristics are relative significant:
(3) Other receivables actually written-off during the reporting period In RMB
|||||||
|-|-|-|-|-|-|
|Name of the|Nature of other|||Reason for|Arising from related|
|||Time of write-off|Amount written off|||
|company|receivables|||write-off|transactions (Y/N)|

 Explanation for write-off of other receivables:
(4) Other receivables due from the shareholders holding5% or above voting shares of the Company during the reporting period
In RMB
||||||
|-|-|-|-|-|
||Closing amountBook balance Bad debt provision accrual||Opening amount||
|Name of the company|||||
|||Bad debt provision accrual|Book balance|Bad debt provision accrual|

 (5) Nature or content of other receivables with significant amount
(6) Top 5 other receivable
In RMB
||||||
|-|-|-|-|-|
||Relationship with theCompany||Terms|Percentage in total|
|Name of the company||Amount|||
|||||accounts receivable|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||||
|-|-|-|-|-|
|||||amount (%)|
|Jiangsu Techniques and Technology Center|Non-related party|2,000,000.00|Over 3 years|27.23%|
|Nanjing University|Non-related party|600,000.00|Over 3 years|8.17%|
|Southeast University|Non-related party|600,000.00|Over 3 years|8.17%|
|Nanjing University of Science and|||||
||Non-related party|600,000.00|Over 3 years|8.17%|
|Technology|||||
|Nanjing University of Technology|Non-related party|600,000.00|Over 3 years|8.17%|
|Total|--|4,400,000.00|--|59.91%|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
(7) Other receivables due from related parties
In RMB
|||||
|-|-|-|-|
|Name of the company|Relationship with the Company|Amount|Proportion in total other receivables (%)|

 (8)
Transferring amount is 0 Yuan for other accounts receivable not conforming to terminate the confirmation.
(9) It is required to introduce the relevant transaction arrangement for asset securitization taking other accounts receivables as the standard
3. Long-term equity investment
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Explanatio||||
|||||||Proport||||||
|||||||||n on the||||
|||||||ion of||||Impairm||
||||||||Proportion|incongruity||||
|||||||share||||ent||
||||||||of voting|in share||||
|||||||holding||||provisio||
||Calculation|||Increase/decrea|||rights in|holding|Impairment||Cash bonus this|
|Invested company||Investment cost|Opening balance||Closing balance|in||||n of||
||method|||se(+,-)|||invested|proportion|provision||period|
|||||||investe||||accruing||
||||||||company|and voting||||
|||||||d||||this||
||||||||(%)|proportion||||
|||||||compa||||period||
|||||||ny (%)||in invested||||
|||||||||company||||
|Weifu Jinning|Cost method|178,639,593.52|178,639,593.52||178,639,593.52|80%|80%|--|||93,949,002.07|
|Weifu Leader|Cost method|460,113,855.00|460,113,855.00||460,113,855.00|94.81%|94.81%|--||||
|Weifu Nano|Cost method|24,000,000.00|24,000,000.00||24,000,000.00|80%|80%|--|1,500,000.00|||
|Weifu Diesel System|Cost method|260,187,500.00|260,187,500.00||260,187,500.00|100%|100%|--|||117,672,378.25|
|Weifu Mashan|Cost method|48,693,380.51|48,693,380.51||48,693,380.51|100%|100%|--||||
|Weifu Chang’an|Cost method|70,902,037.30|70,902,037.30||70,902,037.30|100%|100%|--||||
|Weifu International Trade|Cost method|30,999,996.22|30,999,996.22||30,999,996.22|100%|100%|--|||2,497,947.74|
|Weifu ITM|Cost method|167,000,000.00|167,000,000.00||167,000,000.00|100%|100%|--||||
|Weifu Schmidt|Cost method|31,680,000.00|8,100,000.00|23,580,000.00|31,680,000.00|66%|66%|--||||
|Weifu Tianli|Cost method|90,229,100.00|90,229,100.00||90,229,100.00|51%|51%|--|||1,861,202.66|
|Weifu Jialin|Cost method|4,685,868.73|4,685,868.73||4,685,868.73|51%|51%|--|||2,528,876.00|
|Kunming Xitong|Cost method|5,471,793.17|5,471,793.17||5,471,793.17|70%|70%|--||||

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Weifu Tianshi|Cost method|5,200,000.00|5,200,000.00||5,200,000.00|52%|52%|--|||
|Weifu-Autocam|Cost method|66,349,490.11||66,349,490.11|66,349,490.11|51%|51%|--|||
||Equity||||||||||
|Weifu-Autocam||37,842,087.00|66,604,790.02|-66,604,790.02||||--||10,470,000.00|
||method||||||||||
||Equity||||||||||
|Bosch Diesel System||867,509,767.37|1,329,363,084.03|360,450,712.91|1,689,813,796.94|32.5%|32.5%|--|||
||method||||||||||
|Zhonglian Automobile|Equity||||||||||
|||120,124,000.00|375,291,329.83|68,724,448.62|444,015,778.45|20%|20%|--||109,786,374.78|
|Electronic Co., Ltd|method||||||||||
|Wuxi Weifu Fine|||||||||||
||Equity||||||||||
|Machinery Manufacturing||2,000,000.00|33,948,438.79|5,145,459.95|39,093,898.74|20%|20%|--||2,550,000.00|
||method||||||||||
|Co., Ltd.|||||||||||
|Guolian Securities Co.,|||||||||||
||Cost method|12,000,000.00|12,000,000.00||12,000,000.00|1.2%|1.2%|--||360,000.00|
|Ltd.|||||||||||
|Guangxi Liufa Co., Ltd.|Cost method|1,600,000.00|1,600,000.00||1,600,000.00|1.22%|1.22%|--|1,600,000.00||
|Financial Company of|||||||||||
|Changchai Group Co.,|Cost method|800,000.00|800,000.00||800,000.00|||--|800,000.00||
|Ltd.|||||||||||
|H&J Vanguard Investment|||||||||||
||Cost method|33,000,000.00|33,000,000.00||33,000,000.00|11.72%|11.72%|--|33,000,000.00||
|Co., Ltd.|||||||||||
|Nanjing Hengtai|||||||||||
|Insurance and Broker Co.,|Cost method|1,000,000.00|1,000,000.00||1,000,000.00|1.85%|1.85%|--|1,000,000.00||
|Ltd.|||||||||||
|Yangdong Co., Ltd.|Cost method|2,355,900.00|2,355,900.00|-2,355,900.00||||--|||
|Wuxi Xidong|||||||||||
|Technological Industry|Cost method|5,000,000.00|5,000,000.00||5,000,000.00|1.43%|1.43%||||
|Park Co., Ltd.|||||||||||
|Total|--|2,527,384,368.93|3,215,186,667.12|455,289,421.57|3,670,476,088.69|--|--|--|37,900,000.00|341,675,781.50|

 Explanation on long-term equity investment
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) 1.Weifu Schmidt: Weifu Schmidt is a Sino-foreign joint venture jointly set up by the Company, Germany-based Schmitter Group Aktiengesellschaft and Shanghai Weishi Automobile Technology Development Co., Ltd., which obtained the No. 320200400033433 Corporate Business License issued by Wuxi Administration for Industry and Commerce, Jiangsu Province on Sept. 17, 2009. The registered capital of this company was RMB 18 million, where the Company invested RMB 8.10 million, representing45% of the registered capital; Germany-based Schmitter Group Aktiengesellschaft invested RMB 7.20 million, representing40% of the registered capital; Shanghai Weishi Automobile Technology Development Co., Ltd. invested RMB 2.70 million, representing15% of the registered capital. The RMB 2.70 million contributions from the Company during the year was the first contribution. The Company was the first largest shareholder of this company and held majority of voting rights in its board of directors; therefore, the Company consolidated it into the consolidated financial statements as a subsidiary since the date of its inception.
In 2013, the 15 percent shares of Weifu Schmidt held by Shanghai Weishi Automobile Technology Development Co., Ltd were transferred by the Company, and the Company increase capital for Weifu Schmidt after that, thus, the Company accounts for 66 percent in register capital of Weifu Schmidt after capital increased.
2. Bosch Diesel System: register capital at beginning of the year wasUS$ 200 million andUS$ 30 million increased in the year. Increase register capital from the unpaid profit that distributed which was annouced in last year, register capital of Bosch Diesel System comes toUS$ 230 million after increased. And includingUS$ 74.75 million contributed by the Company, accounts for32.50% of the register capial.
3. Weifu-Autocam: according to the equity transfer agreement singed between the Company and Autocam Corporation, the one percent equity of Weifu Autocam, hold by Autocam Corporation, was transferred to the Company; capital contributed by the Company accounted for 51 percent of the register capital of Weifu Autocam, thus comes to the controlling subsidiary of the Company. The Company calculated based on cost method since being subsidiary of the Company.
4. Operating income and cost
(1) Operating income
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|Main operating income|2,106,217,057.40|1,818,534,349.08|
|Other operating income|355,848,553.86|313,554,640.09|
|Total|2,462,065,611.26|2,132,088,989.17|
|Operating cost|1,983,561,133.99|1,782,615,888.55|

 (2) Main business (by industry)
In RMB
||||||
|-|-|-|-|-|
||Amount of this period||Amount of last period||
|Industry|||||
||Operating income|Operating cost|Operating income|Operating cost|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||||
|-|-|-|-|-|
|Auto parts|2,106,217,057.40|1,649,446,346.65|1,818,534,349.08|1,484,100,850.30|
|Total|2,106,217,057.40|1,649,446,346.65|1,818,534,349.08|1,484,100,850.30|

 (3) Main business (by product)
In RMB
||||||
|-|-|-|-|-|
||Amount of this period||Amount of last period||
|Product|||||
||Operating income|Operating cost|Operating income|Operating cost|
|Auto parts|2,106,217,057.40|1,649,446,346.65|1,818,534,349.08|1,484,100,850.30|
|Total|2,106,217,057.40|1,649,446,346.65|1,818,534,349.08|1,484,100,850.30|

 (4) Main business (by districts)
In RMB
||||||
|-|-|-|-|-|
||Amount of this period||Amount of last period||
|Districts|||||
||Operating income|Operating cost|Operating income|Operating cost|
|Domestic sales|2,106,217,057.40|1,649,446,346.65|1,818,534,349.08|1,484,100,850.30|
|Total|2,106,217,057.40|1,649,446,346.65|1,818,534,349.08|1,484,100,850.30|

 (5) The operating income of the top five customers of the Company
In RMB
||||
|-|-|-|
|||The percentage in all|
|Client|Total operation revenue|operating revenue of the|
|||Company (%)|
|Client1|219,281,569.17|8.91%|
|Client2|218,529,144.69|8.88%|
|Client3|205,695,233.26|8.35%|
|Client4|194,884,749.86|7.92%|
|Client5|110,177,220.55|4.47%|
|Total|948,567,917.53|38.53%|

 Explanation on operating income
5. Investment income
(1) Particulars about investment income
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|Income of long-term equity investment calculated based on cost|218,869,406.72|280,432,522.71|
|Income of long-term equity investment calculated based on equity|495,674,234.35|324,586,557.36|
|Investment income obtained from disposal of long-term equity investment||340,000.00|
|Investment income obtained from held-to-maturity investment|91,274,698.13|24,750,377.29|
|Investment income obtained during holding available-for-sale financial assets|1,681,280.00|740,000.00|
|Total|807,499,619.20|630,849,457.36|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) (2) Income of long-term equity investment calculated based on cost
In RMB
|||||
|-|-|-|-|
||Amount of this|||
|Invested company||Amount of last period|Reasons of change (+,-)|
||period|||
|Weifu Diesel System|117,672,378.25|159,929,783.21|Profit for year of 2012 declined, bonus decrease in the Year|
|Weifu Jinning|93,949,002.07|98,595,318.41|Profit for year of 2012 declined, bonus decrease in the Year|
|Weifu Jialin|2,528,876.00|||
|Weifu International Trade|2,497,947.74|2,936,625.13|Profit for year of 2012 declined, bonus decrease in the Year|
|Weifu Tianli|1,861,202.66|3,661,958.65|Profit for year of 2012 declined, bonus decrease in the Year|
|Weifu Chang’an||9,513,204.85|Profit for year of 2012 declined, no bonus in the Year|
|Weifu Mashan||3,659,232.46|Profit for year of 2012 declined, no bonus in the Year|
|Total|218,509,406.72|278,296,122.71|--|

(3) Income of long-term equity investment calculated based on equity
In RMB
|||||
|-|-|-|-|
||Amount of the|Amount of the||
|Invested company|||Reasons for changes (+,-)|
||current period|last period||
|Zhonglian Automobile||||
||178,510,823.40|159,648,592.32|Profit increase in this period due to influence from auto industry|
|Electronic Co., Ltd||||
|Bosch Diesel System|300,654,937.91|144,050,276.71|Profit increase in this period due to influence from auto industry|
|Weifu-Autocam|8,813,013.09|14,210,163.84|Calculated by equity method from January to June in the Year|
|Weifu Precision Machinery||||
||7,695,459.95|6,677,524.49|Profit increase in this period due to influence from auto industry|
|Manufacture Co., Ltd.||||
|Total|495,674,234.35|324,586,557.36|--|

Explanation on investment income:
6. Supplementary information of cash flow statement
In RMB
||||
|-|-|-|
|Supplementary information|This Period|Last Period|
|1. adjust the net profits to be cash flow for operating activities|--|--|
|net profits|935,416,902.62|738,872,973.12|
|Add: Assets impairment provision|43,991,263.31|6,802,374.73|
|fixed assets depreciation, oil-and-gas assets loss , productive living beings|||
||73,819,899.27|70,867,749.45|
|depreciation|||
|intangible assets amortization|4,143,567.83|3,935,383.69|
|losses from handling fixed assets, intangible assets and assets(profits fill with|||
||-201,707.06|-1,301,252.20|
|―-― )|||
|financial costs(profits fill with ―-― )|9,704,022.22|15,953,501.26|
|investment losses(profits fill with ―-―)|-807,499,619.20|-630,849,457.36|
|deferred income tax assets decrease(increases fill with ―-― )|-14,520,690.04|-1,913,384.93|
|stock decreases(increases fill with ―-― )|-47,640,730.27|88,059,213.76|
|operating receivables decrease(increases fill with ―-― )|-22,029,212.98|420,734,256.00|
|operating payables increase(decreases fill with ―-― )|394,679,579.62|-48,295,959.29|
|cash flow net amount generated by operating activities|569,863,275.32|662,865,398.23|
|2. significant investment financial activities not involving and cash deposit|||
||--|--|
|and withdrawal|||
|3. net changes of cash and cash equivalents|--|--|

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)
||||
|-|-|-|
|ending balance of cash|1,422,429,501.73|1,524,564,526.97|
|decrease: opening balance of cash equivalents|1,524,564,526.97|132,135,416.49|
|net increase of cash and cash equivalents|-102,135,025.24|1,392,429,110.48|

 7. Assets and liabilities enter into the account book with assessed value by counter purchase
Assets and liability reckoned into book with fair value while counter purchased
In RMB
||||||
|-|-|-|-|-|
|Item|Fair value|Method to determine fair value|Process of fair value|Original Book value|

 In RMB
||||
|-|-|-|
|Item|Amount of long-term equity investment form by counter purchased|Process of long-term equity investment|

 XVI. Supplementary Information
1. Current non-recurring gains/losses
In RMB
||||
|-|-|-|
|Item|Amount|Note|
|Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment|||
||13,126,709.30||
|of assets)|||
|Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota|||
||19,375,596.41||
|or ration according to national standards, which are closely relevant to enterprise’s business)|||
|Profit and loss of assets delegation on others’ investment or management|91,274,698.13||
|Other non-operating income and expenditure except for the aforementioned items|-1,806,748.05||
|Less: Impact on income tax|19,872,935.33||
|Impact on minority shareholders’ equity (post-tax)|6,961,525.50||
|Total|95,135,794.96|--|

 Explain recognition reasons item-by-item if the government subsidy reckoned into current gains/losses was the recurring gains/losses□Applicable√ Not applicable
2. 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)
In RMB
||||||
|-|-|-|-|-|
||Net profit attributable to shareholders of listed||Net assets attributable to shareholders of listed||
||company||company||
||Amount in this period|Amount in last period|Closing amount|Opening amount|
|Chinese GAAP|1,108,221,450.83|889,326,939.46|9,600,765,223.81|8,655,980,755.24|
|Items and amount adjusted by IAS|||||

(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)
In RMB
||||||
|-|-|-|-|-|
||Net profit attributable to shareholders of listed company||Net assets attributable to shareholders of listed company||
||Amount in this period|Amount in last period|Closing amount|Opening amount|
|Chinese GAAP|1,108,221,450.83|889,326,939.46|9,600,765,223.81|8,655,980,755.24|
|Items and amount adjusted by foreign accounting rules|||||

Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) (3) Reasons for the differences of accounting data under accounting rules in and out of China
3. REO and earnings per share
In RMB
|||||
|-|-|-|-|
|||Earnings per share||
|Profits during report period|Weighted average ROE (%)|||
|||Basic EPS|Diluted EPS|
|Net profits belong to common stock||||
||12.12%|1.09|1.09|
|stockholders of the Company||||
|Net profits belong to common stock||||
|stockholders of the Company after deducting|11.08%|0.99|0.99|
|nonrecurring gains and losses||||

4. Abnormalities and reasons of the accounting statement items of the Company
1. Interest receivables
Balance of interest receivable at end of 2013 increase RMB 13.8188 million over that of 2012, mainly becauase more un-due saving interest were accrul in the Year and interest receivable increased correspondingly.
2. Dividend receivable
Balance of dividend receivable for end of 2013 and 2012 refers to the receivable cash dividend from Bosch Diesel System that annouced in 2012 for distribution. Balance of dividend receivable at end of 2013 decrease RMB 84.6797 million over that of 2012 with78.69% down, mainly because part of the profit distribution for year of 2012 was paid byBosch Diesel System in the Year. According to the resolution of the Board fromBosch Diesel System, part of the cash dividend annouced for distribution for year of 2012 were transferring into register capital, and in year of 2013, part of the cash dividend was transferred into register capital by the Bosch Diesel System. For end of 2013, balance of dividend receivable of the Company and Weifu Jinning refers to the parts that have not transferring into register capital by Bosch Diesel System yet. 3. Inventory
Balance of inventory at end of 2013 increase RMB 273.0897 million over that of 2012 with31.55% up, mainly because relevant stock reserves increased along with the business expansion of Weifu Leader and Weifu Diesel System in the Year.
4. Other current assets
Balance of other current assets at end of 2013 increase RMB 1079.9382 million over that of 2012, mainly because more investment of entrust financing products for the Yera.
5. Financial assets available for sale
Balance of financial assets available for sale at end of 2013 increase RMB 119.3198 million over that of 2012 with44.91% up, mainly because the Company subscribed privately shares offering of Miracle Logistics in the Year.
6. Held-to-maturity investment
Balance of held-to-maturity investment at end of 2013 decrease RMB 249 million over that of 2012, mainly because the Company transferred entrust financing investment due within one year to other current assets in the Year.
7. Construction in process
Balance of construction in process at end of 2013 increase RMB 133.8138 million over that of 2012, mainly because Weifu Industry Park project of the Company and WeifuTianli’s new plant project are start to constructing, investment increased in the Year.
8. Long-term unamortized expenses
Balance of long-term unamortized expenses at end of 2013 increase RMB 4.1041 million over that of 2012
with33.56% up, mainly because expenses of house decoration increased by Weifu Leader.
9. Deferred income tax assets
Balance of deferred income tax assets at end of 2013 increase RMB 30.5953 million over that of 2012 with
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text)35.57% up, mainly because with the growth of assets impairment provision and deferred income, deferred income tax assets increased correspondingly.
10. Short-term loans
Balance of short-term loans at end of 2013 increase RMB 329.5 million over that of 2012, mainly because with rapid development of the business from part of the subsidiaries, more capital need requried and bank loans increased.
11. Note payable
Balance of note payable at end of 2013 increase RMB 105.2342 million over that of 2012 with37.83% up, mainly because the Company increase the settlment business of note payable.
12. Account payables
Balance of account payables at end of 2013 increase RMB 343.2706 million over that of 2012 with30.28% up, mainly because payables enlarge along with the business expansion of the Company.
13. Tax payable
Balance of tax payable at end of 2013 increase RMB 16.3429 million over that of 2012 with59.49% up, mainly because enterprise income tax increase with the growth of operation profit.
14. Long-term loans
Balance of long-term loans at end of 2013 was RMB 60 million, which is the special loans borrowed by Weifu Tianli.
15. Special payables
Balance of special payables at end of 2013 was RMB 25.6558 million, which is the balance after make up for relocation expenses and losses of the lessee by relocation compensations received by Company and Weifu Jinning.
16. Deferred income tax liability
Balance of deferred income tax liability at end of 2013 increase RMB 7.3872 million over that of 2012, mainly because at end of the Period, variation of fair value of financial assets avaialbe for sale increased, and relevant deferred income tax liability growth.
17. Other non-current liability
Balance of other non-current liability at end of 2013 was RMB 61.6269 million, which refers to the government subsidy received by the Company in the Year increased.
18. Assets impairment loss
Assets impariment loss for year of 2013 increase RMB 67.5055 million over that of 2012, mainly becasue affected by emission regulation upgrade, assets impairment provision of inventory and relevant fixed assets were accrual by the Company, Weifu Jinning and Weifu Diesel System.
19. Investment income
Investment income for year of 2013 increase RMB 246.274 million over that of 2012 with62.16% up, mainly because the profit growth and profit from financial products investment increase in Bosch Diesel System, the associated company.
20. Non-operation income
Non-operation income for year of 2013 increase RMB 17.0416 million over that of 2012 with83.11% up, mainly because the government subsidy reckoned into non-operation income increased in the Year and income from disposal of long-term assets from Weifu Jialin growth.
21. Non-operation expenditure
Non-operation expenditure for year of 2013 increase RMB 4.7318 million over that of 2012 with60.10% up, mainly because losses from diposal of fixed assets and other expenditure increased in the Year.
22. Net cash flow arising from operation activity
Net cash flow arising from operation activity for year of 2013 decrease RMB 361.8011 million over that of 2012 with31.04% down, mainly because note receivable, account receivable and balance of inventory increased in the Year.
23. Net cash flow arising from investment activity
Net cash flow arising from investment activity for year of 2013 increase RMB 600.3908 million over that of
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) 2012 with36.22% up, mainly because more financial products investment increased in last year and investment for Bosch Diesel System, the affiliated enterprise.
24. Net cash flow arising from financing activity
Net cash flow arising from financing activity for year of 2013 decrease RMB 2069.6787 million over that of 2012, mainly because RMB 2850.1243 million fund raised from privately offering last year.
Weifu High-Technology Group Co., Ltd. Annual Report of 2013 (Full-text) Section XI. Documents available for reference
I. Annual Reports with thechairman’s own signature;
II. Financial report with signature and seal of legal representative, person in charge of financial works and accountant officer;
III. Original audit report seal with accounting firms and signature and seal with CPA;
IV. The original manuscripts of all documents and announcements of the Company publicly disclosed on China Securities Journal, Securities Times and Hong Kong Commercial Daily during the Period.
Board of Director of
Weifu High-Technology Group Co., Ltd. Chairman:
Chen Xuejun
15 April 2014