无锡威孚高科技集团股份有限公司2015年年度报告摘要 Stock Code:000581、200581 Public Notice No: 2016-004 Short Form of the Stock: Weifu High- Tech, Su Weifu-B
Weifu High-Technology Group Co., Ltd.
Summary of Annual Report 2015
I. Important Notice
The summary is abstract from full-text of annual report, for more details of operating results, financial condition and future development plan of the Company; investors should found in the full-text of annual report that published on media appointed by CSRC.
Statement
No directors, supervisors or senior management declare the authenticity, accuracy and integrity of the report cannot be guaranteed or there is objection.
Other directors attending the Meeting for annual report deliberation except for the followed
|||||
|-|-|-|-|
|Name of director absent|Title for absent director|Reasons for absent|Attorney|
|Chen Yudong|Director|On a business trip|Rudolf Maier|

Prompt of non-standard audit opinion
□ Applicable√ Not applicable
Profit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the Board in the reporting period
√Applicable□Not applicable
Whether has capitalizing of common reserves carried out
□Yes√ No
The profit distribution plan that deliberated and approved by the Board is: based on total stock issued 1,008,950,570 shares, distributed 5 Yuan (tax included) bonus in cash for every 10-share hold by all shareholders, 0 shares bonus issued (tax included) and no capitalizing of common reserves carried out.
Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period
□ Applicable√ Not applicable
Company Profile
||||||
|-|-|-|-|-|
|Short form of the stock|Weifu High- Tech, Su Weifu-B|Stock code||000581、200581|
|Stock exchange for listing|Shenzhen Stock Exchange||||
|Person/Way to contact|Secretary of the Board||Rep. of security affairs||
|Name|Zhou Weixing||Yan Guohong||
|Office add.|No.5, Huashan Road, New District, Wuxi City||No.5, Huashan Road, New District, Wuxi City||
|Fax.|0510-80505199||0510-80505199||
|Tel.|0510-80505999||0510-80505999||
|E-mail|wfjt@public1.wx.js.cn||wfjt@public1.wx.js.cn||

无锡威孚高科技集团股份有限公司2015年年度报告摘要 II. Main business or product introduction in the reporting period
(I) Main business of the company
1. The company belongs to auto parts industry, and its main business products include diesel fuel injection system products, exhaust after-treatment system products and air management system products.
2. Main uses of the company's products
(1) The diesel fuel injection system products are widely used in different power diesel engines supporting all types of trucks, passenger cars, buses, construction machinery, marine, and generator sets. The company not only makes products matching with the main engines used at home but also exports some products to the Americas, Southeast Asia, and the Middle East. The products meet the needs of emission regulations of CN III& IV standards. (2) The exhaust after-treatment system products mainly support the major manufacturers of automobile, motorcycle and general machinery at home which meet the emission standards of CN IV (Euro IV) and the above. (3) The wheel diameter range of air management system products (supercharger) covers 30mm to 125mm whole series which matches with most of the domestic small-bore diesel engine plants and some six-cylinder diesel engine manufacturers and meet the needs of the light and heavy commercial vehicles and some passenger cars. The company has the vacuum valve control that meets the emission standards of Euro IV& Euro V, the electronically controlled variable geometry turbochargers, the titanium-aluminum alloy superchargers, the electric superchargers, the ceramic ball bearing superchargers and some kinds of gasoline engine turbochargers.
3. Business model of the company
The company follows the operating philosophy of making competitive products, creating famous brands, striving for first choices, and creating value for the users, implements the business model that parent company unifies the management and subsidiaries decentralize the production. Namely, the group company is responsible for making strategic development planning and operation targets, and making the unified management, instruction and assessment for the finance, significant personnel management, core raw materials, quality control, and technology of the subsidiaries. The subsidiaries arrange production based on the order management model of market, which makes the subsidiaries keep the consistent quality with the company, helps keep abreast of customer needs and saving logistics costs, maintain the timeliness of products production and supply, and improve thecompany’s economic benefits.
During the reporting period, thecompany’s business model has no significant changes.
(II) Development stage and periodic characteristics of the industry the company involves and the company's industry position during the reporting period
China's economy has entered a "new normal" which is an important period of transition, and the economic growth shall lay more emphasis on quality and efficiency. In this important period of strategic opportunities, the state will promote and encourage innovations and make greater efforts for energy saving and emission reduction, therefore, the upgrade of vehicle emission standards is in an irreversible trend, while the government will also further increase the supervision and renovation to motor vehicle exhaust emissions, so the upgrade of diesel fuel injection system technology, the improvement of exhaust after-treatment system technology and the expansion of air management system market represent the general trends, which shall bring new development opportunities to the company.
After 50 years of development, the company has become a backbone enterprise making core components for domestic automobile (power engineering), over the years, the company has been closely following the upgrade progress of national vehicle emission standards, positively making strategic layout, and strengthening the technical reserves, and has formed significant industrial advantages now. The company has the complete range of diesel fuel injection system products at home; the exhaust after-treatment system technology has obvious advantages, the company is an important supplier for the after-treatment market of Chinese independent brand automobiles, and possesses technical advantages in the collection of catalyst and after-treatment system integration, its technical level, market size and production capacity are in the leading position at home; the air management system (supercharger) products cover the full range, and the technical strength is in the leading position at home and is ready on the basis of the CN IV standard. At present, the company has completed the whole industry chain layout from the air management system, diesel fuel injection system to the exhaust after-treatment system, is able to provide customers with systematic integrated solutions, and has the most complete product reserves with CN IV standard.
无锡威孚高科技集团股份有限公司2015年年度报告摘要 III. Main accounting data and financial indexes
1. Main accounting data and financial indexes for recently three years
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not
□Yes√ No
In RMB
||||||
|-|-|-|-|-|
||2015|2014|Changes over last year|2013|
||5,741,643,746.42|6,354,480,020.38|||
|Operating income|||-9.64%|5,589,307,689.55|
|Net profit attributable to shareholders|1,515,388,285.71|1,539,439,686.81|||
||||-1.56%|1,108,221,450.83|
|of the listed company|||||
|Net profit attributable to shareholders|||||
|of the listed company after deducting|1,232,371,453.62|1,404,877,811.26|-12.28%|1,013,085,655.87|
|non-recurring gains and losses|||||
|Net cash flow arising from operating|542,045,770.17|889,899,654.79|||
||||-39.09%|803,958,123.13|
|activities|||||
|Basic earnings per share|1.49|1.51|||
||||-1.32%|1.09|
|(RMB/Share)|||||
|Diluted earnings per share|1.49|1.51|||
||||-1.32%|1.09|
|(RMB/Share)|||||
|Weighted average ROE|13.32%|15.05%|-1.73%|12.12%|
||||Changes over end of||
||End of 2015|End of 2014||End of 2013|
||||last year||
||15,704,093,069.04|14,488,589,167.90|||
|Total assets|||8.39%|13,074,232,730.91|
|Net assets attributable to shareholder|11,783,228,273.39|10,859,034,688.96|||
||||8.51%|9,600,765,223.81|
|of listed company|||||

2. Quarterly main financial index
In RMB
||||||
|-|-|-|-|-|
||First quarter|Second quarter|Third quarter|Fourth quarter|
||1,782,232,936.10|1,608,204,987.54|1,109,803,414.23|1,241,402,408.55|
|Operating income|||||
|Net profit attributable to|434,369,050.00|611,618,150.83|247,876,993.79|221,524,091.09|
|shareholders of the listed company|||||
|Net profit attributable to|389,141,510.92|494,860,448.98|216,154,225.24|132,215,268.48|
|shareholders of the listed company|||||
|after deducting non-recurring gains|||||
|and losses|||||
|Net cash flow arising from|208,387,101.74|229,899,049.11|148,682,741.63|-44,923,122.31|
|operating activities|||||

Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial index disclosed in thecompany’s quarterly report and semi-annual report
□Yes√ No
无锡威孚高科技集团股份有限公司2015年年度报告摘要 IV. Shares and shareholders
1. Particulars about common stock shareholders, preference shareholders with voting rights recovered and top ten shareholders
In Share
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Total common|||||Total preference|||||||||
|||Total common stock|||||||Total preference shareholders|||||
|stock|||||shareholders with|||||||||
|||shareholders at end of last|||||||with voting rights recovered at|||||
|shareholders in|60,624||58,573||voting rights|||0|||||0|
|||month before annual|||||||end of last month before annual|||||
|reporting|||||recovered at end of|||||||||
|||report disclosed|||||||report disclosed|||||
|period-end|||||reporting period|||||||||
|Top ten shareholders||||||||||||||
|||||||||||Amount of|Number of shares|||
|||||||Proportion|Amount of|||||||
|||||Nature of||||||restricted|pledged/frozen|||
|Full name of Shareholders||||||of shares||||||||
|||||shareholder|||shares held|||shares|State of|Amo||
|||||||held||||||||
|||||||||||held|share|unt||
|Wuxi Industry Development Group Co., Ltd||||State-ownedcorporate||20.22%|204,059,398|||||||
|ROBERT BOSCH GMBH||||Foreigncorporate||14.16%|142,841,400|||||||
|China Securities Finance Corporation Limited||||State-ownedcorporate||3.02%|30,506,369|||||||
|UBS AG||||Foreigncorporate||2.20%|22,240,948|||||||
|Kangjian Assets Management Company –Client’s fund||||Foreigncorporate||1.57%|15,881,792|||||||
|Central Huijin Assets Management Co., Ltd.||||State-ownedcorporate||1.27%|12,811,200|||||||
|BBH BOS S/A FIDELITY FD - CHINA FOCUS FD||||Foreigncorporate||1.23%|12,382,279|||||||
|Puxin Investment Company- Client’s fund||||Foreigncorporate||1.12%|11,347,877|||||||
|MERRILL LYNCH INTERNATIONAL||||Foreigncorporate||1.12%|11,303,625|||||||
|RBC EMERGING MARKETS EQUITY FUND||||Foreigncorporate||0.78%|7,826,264|||||||
|||||||Among the top ten shareholders, there has no associated||||||||
|||||||relationship between Wuxi Industry Development Croup||||||||
|||||||Co., Ltd. and other shareholders, the first largest||||||||
|Explanation on associated relationship among the aforesaid||||||||||||||
|||||||shareholder of the Company; and they do not belong to the||||||||
|shareholders||||||||||||||
|||||||consistent actionist regulated by the Management Measure||||||||
|||||||of Information Disclosure on Change of Shareholding for||||||||
|||||||Listed Company.||||||||
|Explanation on shareholders involving margin business (if applicable)||||||Not applicable||||||||

2. Total preferred stock shareholders of the Company and shares held by top ten shareholders with preferred stock held
□ Applicable√ Not applicable
The Company had no shareholders with preferred stock held in the reporting.
3. Property right and controlling relationships between the actual controllers of the Company and the
Company is as follows:
无锡威孚高科技集团股份有限公司2015年年度报告摘要 State-owned Assets Supervision& Administration
Commission of Wuxi Municipality of Jiangsu Province
100%
Wuxi Industry Development Croup Co., Ltd.
20.22%
Weifu High-Technology Group Co., Ltd.
V. Discussion and analysis by the Management Team
1. Introduction of operation in the reporting period
(I) General introduction
Production and marketing on national auto market during 2015 achieved 24.5 million and 24.6 million respectively, announced by China Association of Automobile Manufactures, respectively increased by3.3% and4.7% year-on-year, including 21.08 million and 21.15 million respectively for production and marketing of passenger cars, respectively securing5.8% and7.3% year-on-year growth rate, and 3.42 million and 3.45 million of commercial vehicles with the decrease rate of10% and9% year-on-year respectively.
In 2015, the volume of vehicle production and sales is smooth and steady and the growth slows down, the sales of commercial vehicles is still sluggish under the dual pressures of macroeconomic slowdown and upgrade of CN IV emission regulations, the production and sales of medium and heavy commercial vehicles declines significantly with production of 0.73 million and sales of 0.74 million, respectively declined by25% and24% on a year-on-year basis. In the face of severe market situation, the company seizes all opportunities, feasibly promotes the adjustment of industrial structure, refines the management, strictly controls the risks and costs, and strives to maintain the stable development. The production and sales of automobile exhaust after-treatment system products grows significantly and becomes an important business growth point of the company.
Operation revenue of RMB 5.742 billion for the reporting period, down9.64% on a year-on-year basis; net profit attributable to parent company of RMB 1.515 billion, an decrease of1.56% from the year-ago period; total assets of RMB 15.704 billion, a8.39% up year-on-year and equity attributable to owners of parent company of RMB 11.783 billion, up8.51% on a year-on-year basis.
(II)Major works
1. Strengthen the product development and testing capability building, promote the research and development of new products for three systems
Actively promote the laboratory testing capability building, and the laboratory testing capability building of Weifu Engineering Technology Research Institute has obtained the national certification. The research and development and testing capability building of electronic control system has possessed EMC and electrical performance testing capabilities and can do the loop simulation test to electronic control components of thecompany’s three main system products. In the pre-research aspects of new energy projects, the company has signed a service funding agreement with the international well-known institutions which lays a foundation for promoting the research and development of new products and the development of new projects of thecompany’s three systems.
2. Actively carry out the strategic development plan, and strive to achieve the sustainable development of the company.
Establish the working committee for thegroup’s strategic development plan, and comprehensively plan the corporate strategic development plan. Pay close attention to the macroeconomic situation, actively track the development direction of new technologies, timely analyze the automotive market situation, plan the business development orientation of the company's three systems, define the future development goals and development focuses, and enhance the group's business sustainability strength.
3. Deepen the concept of lean production, and enhance quality management level and production efficiency Strengthen the quality risk control methods, utilize the scientific quality method to focus on the process change risks, gradually shift the quality work focus from quality inspection (afterwards) to quality assurance (in the process) and quality prevention (beforehand), and effectively control and resolve the quality problems. Make full use of the information platform of manufacturing system, timely analyze the manufacturing operating conditions,
无锡威孚高科技集团股份有限公司2015年年度报告摘要 and achieve the dynamic management. Promote the system continuous improvement, constantly optimize the field management, and improve the manufacturing capacity and production efficiency.
4. Vigorously promote the information construction, information application effect is obvious
Further improve the group informatization infrastructure, complete the construction of group network access control system, achieve the logic integration within various departments of the group, promote the use of the group UC unified communications system, and complete the storage expansion work for data center.
Accelerate the application of information technology and achieve remarkable results. In 2015, basically realize the unification of group OA platform and the standardization of business process; start the group Business Intelligence (Phase I) project; promote and implement ERP (Phase II) project in key business divisions and subsidiaries; the group SRM Phase I project accesses system building stage, create the unified group purchasing management platform after coming online, and establish the standardized management system for supplier management.
5. Improve the construction of management system, and enhance the company's operational management level Further strengthen the group's financial management and control capability, improve the group's target cost management, implement the construction of management accounting system, carry out the value stream analysis, implement the cost difference analysis, reduce the costs, and improve the efficiency; enhance the project cost control, introduce the budget management mechanism, build the open platform for open tendering, and strive to reduce the procurement costs and engineering construction costs. Build thegroup’s distributor records, complete the distributor management system, establish the customer monthly dynamic early warning mechanisms and timely follow up and analyze, build the risk firewall to ensure the assets safety of the group; arrange thegroup’s capital management, strengthen the beforehand prevention and audit, and strive to maximize the capital gains. 6. Promote the talent optimization development strategy, actively carry out the medium and long term incentive mechanism
Establish the group potential talents plan selection and training mechanism, implement the core talent motivation and management mechanism, and comprehensively carry out the dynamic planning for core talent posts. Build the incentive fund operation and management platform. Promote and carry out the medium and long term incentive mechanism, and provide guarantee for the development of core talent team. Further improve thegroup’s human resources integration and internal recruitment deployment platform construction to adapt the requirements of group strategy and internal business adjustment.
2. Whether the main business had major change in the reporting period
□ Yes√ No
3. About the industries, products, or regions accounting for over10% of thecompany’s operating income or operating profit
√Applicable□Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Increase/decrease|Increase/decrease|Increase/decrease|
||||Gross profit||||
|Name|Operating revenue|Operating cost||of operating|of operating cost|of gross profit|
||||ratio||||
|||||revenue y-o-y|y-o-y|ratio y-o-y|
|Automobile fuel|||||||
||3,032,437,947.90|2,171,238,753.25|28.40%|-27.04%|-27.19%|0.15%|
|injection system|||||||
|Intake system|213,835,708.36|161,413,488.46|24.52%|10.85%|12.30%|-0.97%|
|Automotive post|||||||
||2,173,329,188.32|1,793,878,640.71|17.46%|39.03%|43.95%|-2.82%|
|processing system|||||||

4. Whether the characteristics of management seasonal or cyclical need special attention
□ Yes√ No
5. In the reporting period, note of major changes in operating income, operating cost, total net profit attributable to common stock shareholders of listed company or composing the previous reporting period□ Applicable√ Not applicable
6. Particular about suspended and delisting
□ Applicable√ Not applicable
无锡威孚高科技集团股份有限公司2015年年度报告摘要 VI. Relevant items involving financial report
1. Particulars about the changes in aspect of accounting policy, estimates and calculation method compared with the financial report of last year
□ Applicable√ Not applicable
No particulars about the changes in aspect of accounting policy, estimates or calculation method in Period.
2. Major accounting errors within reporting period that needs retrospective restatement
□ Applicable√ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
3. Compare with lastyear’s financial report; explain changes in consolidationstatement’s scope
√Applicable□Not applicable
During the reporting period, the subsidiary - Weifu Leader has invested money to establish Wuxi Weifu Leader Catalytic Converter (Wuhan) Co., Ltd., Weifu Leader holds60% of stock rights which are included in the consolidated statements in the current year.
4. Explanation on “Qualified Opinion” from the Certified Public Accountants in the report period by the Board of Directors and Supervisory Committee
□ Applicable√ Not applicable
Board of Directors of
Weifu High-Technology Group Co., Ltd.
19 April 2016