苏威孚B(200581)公告正文

苏威孚B:2012年年度报告(英文版)

公告日期:2013-03-28

               Weifu High-Technology Group Co., Ltd. Annual Report for 2012-Full Text




WEIFU HIGH-TECHNOLOGY GROUP CO., LTD.
          ANNUAL REPORT 2012




              March 2013




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                                          Weifu High-Technology Group Co., Ltd. Annual Report for 2012-Full Text



           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.
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 2012 Annual Report is authentic,
accurate and complete.
Other directors attended the board meeting on auditing the report except for the
following directors:
   Name of absent    Position of absent         Reason for absence               Entrusted
      director            director
    Chen Yudong          Director                   On business                Rudolf Maier

The Preplan Profit Distribution of the Company deliberated and approved by The
Board is: Based on the total number of issued stock as of Dec 31,2012,Cash bonus
of RMB 3(tax inclusive)and 5 bonus stock(tax inclusive) per 10 stocks shall be paid
to the shareholders.No capital reserve shall be converted into the registered capital
and the remaining undistributed profits shall be incorporated into the next accounting
year’s profits.
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.




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                                                               Weifu High-Technology Group Co., Ltd. Annual Report for 2012-Full Text




                                                             Contents




Annual Report 2012 ........................................................................................................................... 1

Section I Important Notice, Contents and Paraphrase .................................................................. 2

Section II Company Profile ............................................................................................................... 6

Section III Accounting data and summary of finnaical indexes .................................................... 8

Section IV Report of the Board of Directors ................................................................................. 10

Section V Important Events ............................................................................................................ 27

Section VI Changes in shares and particular about shareholders............................................... 40

Section VII Particulars about Directors, Supervisors,Senior Executives and Employees ........ 45

Section VIII Corporate Governance .............................................................................................. 52

Section IX Internal Control ............................................................................................................ 57

Section X Financial Report ............................................................................................................. 59

Section XI Documents available for reference ............................................................................ 162




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                                                   Weifu High-Technology Group Co., Ltd. Annual Report for 2012-Full Text




                                                Paraphrase


                      Items                    Refers to                              Contents

Company, The Company, Wei-fu High-technology   Refers to Weifu High-Technology Group Co., Ltd.

Weifu Group                                    Refers to Wuxi Weifu Group Co., Ltd.

Industry Group                                 Refers to Wuxi Industry Development Group Co., Ltd.

Robert Bosch                                   Refers to Robert Bosch Co., Ltd. ROBERT BOSCH GMBH

Bosch Automobile Diesel                        Refers to Bosch Automobile Diesel System Co., Ltd.

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.

Weifu Jida                                     Refers to Wuxi Weifu Jida New Material Technology Development 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.

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.


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                                      Weifu High-Technology Group Co., Ltd. Annual Report for 2012-Full Text




                            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.




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                                                        Weifu High-Technology Group Co., Ltd. Annual Report for 2012-Full Text




                                         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 Chinese)                 无锡威孚高科技集团股份有限公司

Short form of the Company (in Chinese)           威孚高科

Foreign name of the Company(if applicable)       WEIFU HIGH-TECHNOLOGY GROUP CO.,LTD.

Short form of foreign name of the Company(if
                                                 WFHT
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 CSRC http://www.cninfo.com.cn

Preparation place for annual report                 Office of the Board of Directors




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                                                                Weifu High-Technology Group Co., Ltd. Annual Report for 2012-Full Text


IV. Registration changes of the Company
                                                                         Registration NO. for
                         Date for                                                                 No. of taxation
                                             Place for registration        enterprise legal                         Organization code
                       registration                                                                registration
                                                                                license
                                        No.107, Renmin West Road,
Initial registration 1988-10-27                                        GuoJiZi No.: 1707        320208250456967     25045696-7
                                        Wuxi City
Registration at end                     No.5, Huashan Road, New
                    2010-08-03                                         320200000014926          320208250456967     25045696-7
of report period                        District, Wuxi City
Changes of main business since
                                        No changes
listing (if applicable)
                                        The company’s controlling shareholder was Wuxi Weifu Group Co., Ltd. before 2009.The
                                        controlling shareholder changed to Industry Group from 31st May 2009 because Wuxi Industry
Previous changes for controlling
                                        Development Group Co., Ltd. merged Weifu Group in 2009.Becasue both Weifu Group and
shareholders (if applicable)
                                        Industry Group were wholly 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.

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                   Offices add. for sponsor       Name of sponsor deputy        Continuous supervision period

                                      No.1508, Xinzha Road, Jing’an
Everbright Securities Co.,Ltd                                          Zhang qiying,Wen guangxia 2012-3-1-2013-12-31
                                      District, Shanghai City
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable   √ Not applicable




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                                                             Weifu High-Technology Group Co., Ltd. Annual Report for 2012-Full Text




        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
                                                2012                    2011                                                 2010
                                                                                                   (%)
Operating income (RMB)                      5,015,283,418.71         5,898,113,089.49                       -14.97%     5,371,213,196.45
Net profit attributable to shareholders
                                              889,326,939.46         1,204,617,075.56                       -26.17%     1,340,291,115.79
of the listed company(RMB)
Net profit attributable to shareholders
of the listed company after deducting         852,679,760.32         1,166,866,705.09                       -26.93%     1,324,606,432.23
non-recurring gains and losses(RMB)
Net cash flow arising from operating
                                            1,165,759,218.46           326,269,185.07                        257.3%       536,171,852.08
activities(RMB)
Basic earnings per share
                                                           1.34                   2.12                      -36.79%                   2.36
(RMB/Share)
Diluted earnings per share
                                                           1.34                   2.12                      -36.79%                   2.36
(RMB/Share)

Return on Equity (%)                                   11.36%                  26.27%                       -14.91%               38.32%

                                                                                          Changes over end of last
                                             End of 2012            End of 2011                                          End of 2010
                                                                                                year (%)

Total assets (RMB)                         11,055,973,932.34         7,929,217,436.19                        39.43%     6,761,622,809.90

Net assets attributable to shareholder
of listed company (Owners’ equity
                                            8,655,980,755.24         5,064,060,401.35                        70.93%     4,106,208,383.62
attributable to shareholder of listed
company ) (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)                Unit: 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                              889,326,939.46            1,204,617,075.56          8,655,980,755.24          5,064,060,401.35
Items and amount adjusted by IAS
IAS                                       889,326,939.46            1,204,617,075.56          8,655,980,755.24          5,064,060,401.35


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                                                             Weifu High-Technology Group Co., Ltd. Annual Report for 2012-Full Text


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)

                                                                                                                                Unit: 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                             889,326,939.46              1,204,617,075.56        8,655,980,755.24          5,064,060,401.35
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

                                                                                                                                Unit: RMB

                                  Item                                     Amount in 2012 Amount in 2011 Amount in 2010           Note
Gains/losses from the disposal of non-current asset (including the
                                                                              4,352,926.75    3,755,577.19      4,374,597.95
write-off that accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to
                                                                            15,105,216.19    34,526,848.90     15,440,800.00
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
                                                                                                727,964.94               0.00
of identifiable net assets, that deserves to enjoy in invested units
while investment obtained
Profit and loss of assets delegation on others’ investment or
                                                                            24,750,377.29
management
Switch-back of impairment of account receivable that practice
                                                                               789,303.74     4,435,891.56               0.00
impairment test independent
Other non-operating income and expenditure except for the
                                                                              -412,785.88     3,107,697.30        244,116.34
aforementioned items
Impact on income tax                                                          6,429,913.94    7,019,338.38      3,065,636.67
Impact on minority shareholders’ equity (post-tax)                           1,507,945.01    1,784,271.04      1,309,194.06
Total                                                                       36,647,179.14    37,750,370.47     15,684,683.56       --
Concerning the extraordinary profit (gain)/loss defined by Q&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 in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable




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                                                                 无锡威孚高科技集团股份有限公司 2012 年度报告全文




                     Section IV. Report of the Board of Directors

I. Introduction

(I)General introduction
According to the data released by China Association of Automobile Manufactures in 2012, an aggregate of
19,310,000 automobiles have been sold across the nation, with a year-on-year increase of 4.3%, among which, the
sales of business vehicles amounted to 3,810,000 with a year-on-year decrease of 5.49% which has recorded
negative growth for two consecutive years since the highest historical sales record made in 2010. As to the sales of
business vehicles, great decline of 28% appeared in heavy truck market, only recording sales of 630,000.

In front difficulty and challenge, the Company made active response and continued to implement its development
strategy. Internal: focusing on efficiency enhancement, quality improvement and cost reduction based on product
structure adjustment; external: based on the existing products, ensuring increase of market share occupied by
major products; ensuring stable development of its three major business segments with strict control over external
risks.

As at the end of 2012, the total assets of the Company was RMB11.056 billion, owners’ equity attributable to
parent company was RMB8.655 billion, operating income was RMB5.015 billion, net profit attributable to parent
was RMB889 million and earnings per share was RMB1.34.

(II)Major works
1. Construct internal control system and strengthen risk control
According to the Basic Internal Control Standards for Enterprise and the relevant guidance issued by CSRC, the
ministry of finance and other three authorities, the Company conducted internal control construction. By tests on
the 16 specific business procedures, the Company formed the defect list and made reforms in respect of system
construction and procedure enhancement, and formed the initial internal control manual, laying good foundation
for standardizing internal control system.

2. Adopt standard cost management, to bring down costs and raise efficiency
In order to pursue the maximum interests of the Group, the Company strengthened supervision on prices of
purchase, manufacture, sales, capital, cost, budget, investment as well we financing operation and eliminated
management omission. Through enhancement in basic works such as materials consumption quota and working
time quota and comparison analysis in respect of similar products, it gradually established standard product costs.
Besides, it strengthened analysis on difference and adopted corresponding measures to increase management and
decrease costs.

3. Raise capital application efficiency and increase the profitability
It managed the capital of the Group on a centralized basis, to realize reasonable and effective capital management.

4. Complete certification of ISO14001 environment management system and inspection & acceptance of clean
production
Promotion team was established to make system diagnosis and training, and to implement standard for ISO14001
environment management system and clean production. The Company passed certification of ISO14001
environment management system and inspection & acceptance of clean production respectively in September and
October.

5. Integrate suppliers and strengthen free-inspection for the internal suppliers
Improved standards on quality, price, cost, delivery and service evaluation of suppliers and raised management
efficiency of suppliers. Strengthened PPAP management and random inspection during each procedure, to make
sure that each business segment strictly followed the standard system applicable to suppliers for qualified quality.
Besides, it further standardized and improved delivery inspection guidance, inspection items, insection methods in
relation to internal suppliers, to prevent repeat inspection.


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                                                                           无锡威孚高科技集团股份有限公司 2012 年度报告全文


II. Main business analysis

1. Introduction
In the reporting, the company’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 of company’s operating
revenue, cost, and expenses etc.


                                                                                                               In 10 thousand yuan
                          Item                                    2012                       2011              Increase y-o-y (%)
Operating revenue                                                        501,528.34              589,811.31                  -14.97
Operating cost                                                           377,347.76              431,462.80                  -12.54
Sales tax and additions                                                    3,183.29                 3,300.37                  -3.55
Sales expenses                                                            19,064.35               22,688.72                  -15.97
Administration expenses                                                   44,454.40               42,794.55                    3.88
Financial expenses                                                        -7,549.49                 2,634.82                -386.53
Loss of assets impairment                                                  2,111.57                  647.62                  226.05
Investment income                                                         39,621.93               49,794.19                  -20.43
Opreating profit                                                         102,538.39              136,076.63                  -24.65
Total profit                                                             103,801.69              139,680.58                  -25.69
Net profit attributable to owner of parent company                        88,932.69              120,461.71                  -26.17

Review and summarization on the progress of development strategy and operation plan disclosed in previous period during the
reporting period
In 2012, due to the factors such as weak demands, macro-control policy in real estate industry and production
capacity surplus, China experienced decline pressure for its economy. The internal driving force was insufficient
to promise economic growth. As to automobile industry, after ten years rapid development, it faces difficulty from
energy, environment and traffic, which leads to stable development from the original rapid development as to the
growth pattern of PRC automobile industry. According to the data released by China Association of Automobile
Manufactures in 2012, an aggregate of 19,310,000 automobiles have been sold across the nation, with a
year-on-year increase of 4.33%. due to slowing down of economy growth and overall falling back of investment,
consumption and export, sales performance for business vehicles was weaker than the same period of last year,
recording negative growth for two consecutive years since the highest historical sales record made in 2010.
particularly, market of heavy truck presented to be depressed for a long time, the sales of which was not such good
as expected. Therefore, the Company recorded decrease of operating income and total profit, while its target,
namely to be the leader in domestic automobile (power engineering) core spare parts field, has been promoted in a
orderly manner.

Reasons for difference of actual operation performance has 20% 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 5.015 billion, decreasing
14.97% y-o-y.
Whether income from physical sales larger than income from labors or not

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√ Yes □ No

                                                                                                               Increase/decrease y-o-y
                     Industries                          Item                 2012               2011
                                                                                                                         (%)
                                              Sales volume                           139                164                  -15.24%
Fuel injection system—multiple-piston
                                              Production volume                      135                158                  -14.56%
pump(10 thousand)
                                              Stock volume                            11                  15                 -26.67%
                                              Sales volume                           552                793                  -30.39%
Fuel injection system—injector(10
                                              Production volume                      505                795                  -36.48%
thousand)
                                              Stock volume                            68                 115                 -40.87%
                                              Sales volume                           123                124                    -0.81%
Post-processing system—purifier(10
                                              Production volume                      124                128                    -3.13%
thousand)
                                              Stock volume                            26                  25                         4%
                                              Sales volume                            23                  20                     15%
Intake system—turbocharger(10 thousand) Production volume                            24                  20                     20%
                                              Stock volume                                5                4                     25%
Reasons for y-o-y relevant data with over 30% changes
√Applicable □Not applicable
Mainly because heavy-duty commercial vehicles were deeply called back, making the market requirement of injector products decrease
and the productions decreased.
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)                                                                                1,558,437,409.37
Proportion in total annual sales volume for top five clients (%)                                                              31.06%
Information of top five clients of the Company
√Applicable □Not applicable

  Serial                          Name                             Sales (RMB)                Proportion in total annual sales (%)
     1         Client 1                                                 321,618,959.96                                         6.41%
     2         Client 2                                                 316,155,564.30                                          6.3%
     3         Client 3                                                 313,187,405.34                                         6.24%
     4         Client 4                                                 313,056,704.89                                         6.24%
     5         Client 5                                                 294,418,774.88                                         5.87%
   Total                          ——                                 1,558,437,409.37                                       31.06%


3. Cost

Industry classification
                                                                                                                            Unit: RMB



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                                                         2012                                   2011
       Industry                                                                                                           Y-o-y changes
                              Item                            Ratio in operation                     Ratio in operation
    classification                            Amount                                  Amount                                   (%)
                                                                   cost (%)                               cost (%)
                         Direct
Automobile       parts                     2,650,613,999.10             77.03% 2,924,610,686.53                 76.9%             -9.37%
                         material
Automobile       parts Labor cost           295,830,221.43                8.6%     323,574,375.89               8.51%             -8.57%
Automobile       parts Depreciation         107,988,731.56               3.14%      93,740,306.81               2.46%             15.2%
                         Varieties of
Automobile       parts                      386,767,817.42              11.24%     461,385,067.13              12.13%            -16.17%
                         consumption
Product classification
                                                                                                                               Unit: RMB

                                                         2012                                   2011
       Product                                                                                                            Y-o-y changes
                              Item                            Ratio in operation                     Ratio in operation
    classification                            Amount                                  Amount                                   (%)
                                                                   cost (%)                               cost (%)
Fuel injection
                         Direct material 1,903,254,331.70               72.91% 2,139,558,229.74                72.66%            -11.04%
system
Fuel injection
                         Labor cost         269,670,504.29              10.33%     301,343,503.93              10.23%            -10.51%
system
Fuel injection
                         Depreciation        95,296,901.78               3.65%      84,220,001.21               2.86%            13.15%
system
Fuel injection           Varieties of
                                            342,136,504.59              13.11%     419,295,004.82              14.24%             -18.4%
system                   consumption
Intake system            Direct material    112,288,382.49              79.89%      99,193,593.06               81.7%             13.2%
Intake system            Labor cost          12,353,819.64               8.79%      10,431,149.57               8.59%            18.43%
Intake system            Depreciation         8,550,060.53               6.08%        5,832,892.35               4.8%            46.58%
                         Varieties of
Intake system                                 7,355,389.59               5.23%        5,953,412.50               4.9%            23.55%
                         consumption
Post-processing
                         Direct material    635,071,284.91                 92%     685,858,863.73                 93%              -7.4%
system
Post-processing
                         Labor cost          13,805,897.50                  2%      11,799,722.39                1.6%               17%
system
Post-processing
                         Depreciation         4,141,769.25                0.6%        3,687,413.25               0.5%            12.32%
system
Post-processing          Varieties of
                                             37,275,923.24                5.4%      36,136,649.81                4.9%             3.15%
system                   consumption
Note
Main suppliers of the Company

Total purchase amount from top five suppliers (RMB)                                                                       975,643,608.54
Proportion in total annual purchase amount for top five suppliers (%)                                                            34.49%
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     supplier                                                513,309,658.45                                              18.15%
       2     supplier                                                153,709,737.35                                               5.43%



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     3         supplier                                       114,276,420.15                                            4.04%
     4         supplier                                       103,885,437.25                                            3.67%
     5         supplier                                          90,462,355.34                                           3.2%
   Total                     ——                             975,643,608.54                                           34.49%


4. Expenses

In the reporting, the company’s main expenses are as follows:
                                                                                                          In 10 thousand yuan
                          Name                            2012                   2011             Increase y-o-y (%)
Sales expenses                                          19,064.35           22,688.72                  -15.97
Administration expenses                                 44,454.40           42,794.55                    3.88
Financial expenses                                      -7,549.49            2,634.82                  -386.53


2012 annual financial expenses decreased greatly than 2011 annual’s, mainly because interest income increased
greatly with the increase of monetary fund, and then the decrease of bank borrowing caused the decrease of bank
borrowing interest.

5. R&D expenses
During the reporting period, the engineer technology research organ of the Company allocated greant resources in
developing the material projects of the Company. The successful operation of the experimental lab provided
effective support for the successful development of material projects which received more effective management,
helping the Company to obtain achievement phase by phase. In 2012, the R&D expenses of the Company were
RMB162,340,900, accounting for 1.81% of the latest audited net profit and 3.24% of the latest audited operating
income.

6. Cash flow

                                                                                                                   Unit: RMB

                                                                                                               Y-o-y changes
                                 Item                                       2012               2011
                                                                                                                    (%)
Subtotal of cash in-flow from operation activity                        6,442,560,329.86    6,336,458,986.39            1.67%
Subtotal of cash out-flow from operation activity                        5,276,801,111.40   6,010,189,801.32            -12.2%
Net cash flow from operation activity                                   1,165,759,218.46     326,269,185.07            257.3%
Subtotal of cash in-flow from investment activity                         259,135,006.84     610,520,363.79            -57.56%
Subtotal of cash out-flow from investment activity                      1,916,823,809.13     573,783,796.77         234.07%
Net cash flow from investment activity                                  -1,657,688,802.29     36,736,567.02       -4,612.37%
Subtotal of cash in-flow from financing activity                        3,517,125,210.00    1,111,434,604.61        216.45%
Subtotal of cash out-flow from financing activity                       1,338,170,692.31    1,193,881,377.05           12.09%
Net cash flow from financing activity                                   2,178,954,517.69      -82,446,772.44
Net increased amount of cash and cash equivalent                        1,687,024,933.86     280,558,979.65         501.31%
Reasons for y-o-y relevant data with over 30% changes
√Applicable        □Inapplicable
Net cash generated from operating activities: mainly because this annual loan receivable were collected in
time.


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Net cash flow from operation activity: mainly because the company increased the investments of financial
products, non-public stock issue to SDEC and the affiliated business Bosch Automobile Diesel System in the year.
Net cash flow from financing activity: mainly because non-public offering raised proceeds was RMB
286,272,050,000 in the year and the bank borrowing decreased.
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

                                                                                                                             Unit: RMB

                                                                                 Increase/decrease
                                                                                                   Increase/decrease Increase/decrease
                                                                Gross profit        of operating
                         Operating revenue   Operating cost                                        of operating cost of gross profit
                                                                 ratio (%)         revenue y-o-y
                                                                                                       y-o-y (%)      ratio y-o-y (%)
                                                                                        (%)
According to industries
Automobile       parts    4,651,387,384.54 3,441,200,769.51             26.02%           -13.01%                -9.52%         -2.85%
According to products
Fuel injection
                          3,667,499,333.27 2,637,702,014.93             28.08%           -15.29%                -11.2%         -3.32%
system
Intake system              153,580,378.18     113,203,879.68            26.29%             0.29%               18.47%         -11.31%
Post-processing
                           830,307,673.09     690,294,874.90            16.86%             -3.92%                -6.4%           2.2%
system
According to region
Domestic                  4,362,027,051.97 3,158,670,288.49             27.59%           -14.17%               -10.85%          -2.7%
Oversea                    289,360,332.57     282,530,481.02            2.36%              9.29%                8.56%           0.66%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on
latest one year’s scope of period-end
□ Applicable √ Not applicable


IV. Assets and liability analysis

1. Major changes of assets

                                                                                                                             Unit: RMB

                                             End of 2012                             End of 2011                  Ratio     Notes of
                                                       Ratio in total                         Ratio in total     changes     major
                                       Amount                                  Amount                              (%)      changes
                                                        assets (%)                             assets (%)
Monetary fund                       2,600,714,219.36           23.52%      855,053,599.38            10.78%        12.74%
Account receivable                  1,036,392,701.40            9.37% 1,167,123,155.04               14.72%        -5.35%
Inventory                             759,505,087.10            6.87%      883,582,090.78            11.14%        -4.27%
Investment real estate                  3,881,346.30            0.04%          4,352,211.86            0.05%       -0.01%
Long-term equity investment         2,192,275,239.86           19.83% 1,786,481,972.85               22.53%         -2.7%
Fix assets                          1,404,806,234.18           12.71% 1,357,509,509.59               17.12%        -4.41%
Construction in progress               65,649,548.48            0.59%       98,288,407.69              1.24%       -0.65%




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2. Major changes of liability

                                                                                                                            Unit: RMB

                                   2012                            2011
                                                                                                                     Notes of major
                                        Ratio in total                 Ratio in total       Ratio changes (%)
                          Amount                          Amount                                                         changes
                                          assets (%)                      assets (%)

Short-term loans        70,000,000.00          0.63% 495,000,000.00            6.24%                        -5.61%



3. Assets and liabilities measured by fair value
                                                                                                                            Unit: RMB
                                                                                   Devaluatio
                                Amount at Changes of fair       Accumulative                                 Amount
                                                                                      n of     Amount of
                                   the         value            changes of fair                              of sale in Amount in the
           Items                                                                   withdrawi purchase in the
                                beginning gains/losses in       value reckoned                                  the     end of period
                                                                                    ng in the    period
                                 period     this period           into equity                                 period
                                                                                     period
Financial assets
1.Financial assets
measured by fair value,
and its changes are
                                                                                                         0.00     0.00
reckoned in current
gains/losses(not including
derivative financial asset)
2.Derivative financial
                                                                                                         0.00     0.00
asset
3.Financial assets
                                     0.00     56,509,360.00                                   199,208,000.00      0.00 265,689,600.00
available for sales
Subtotal of financial
                                     0.00     56,509,360.00                                              0.00     0.00 265,689,600.00
assets
Investment property                                                                                      0.00     0.00
Productive         biological
                                                                                                         0.00     0.00
assets
Others                                                                                                   0.00     0.00
Aforementioned total                 0.00     56,509,360.00                                   199,208,000.00      0.00 265,689,600.00
Financial liabilities                0.00                0.00                                            0.00     0.00             0.00
Whether the attribute of the company’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
technology center” and “postdoctor scientific research work station”. In 2012, the R&D input accounted for
3.24% of its operating income. the Company takes the leading position as to its diesel fuel injection system

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technology. As the PRC continues to promote the national emission regulation, the Company developed WAPS
system products independently, pending for preparation of production capacity. The Company also developed
high pressure variable pump mating with High pressure common rail system and started bulk supply. 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.
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 power, mating for various trucks, buses,
engineering machinery, Marine, generator set.the Company produced 1,350,000 set of diesel multi-cylinder
pumps and 5,050,000 set of fuel injectors in 2012. the Company owns advanced post-processing system
production lines, producing 1,240,000 set of purifiers in 2012. The supercharger products can satisfy needs from
light and heavy business vehicles and certain passenger vehicles.
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 2012 (RMB)                         Investment in 2011 (RMB)                           Range of changing
                              773,023,000.00                                       156,668,800.00                                393.41%
                                                  Situation of the invested company
                                                                                                        Equity proportion in invested
                      Name                                        Main business
                                                                                                     company for Listed company (%)
Bosch Automobile Diesel System Co., Ltd.       Electronic control diesel system products                                            34%
Wuxi Weifu Leader Catalytic Converter Co.,
                                               Automobile post-processing system products                                         94.81%
Ltd.
Shanghai Diesel Engine Co., Ltd.               Diesel engines                                                                      2.72%


 (2)Holding equity of financial enterprise

                                    Amount of     Proportion
                                                                Amount of     Proportion
                                    stock-holdi        of
                                                                stock-holdi        of     Book value at    Gains and
                         Initial      ng at the   stock-holdi                                                            Account
                                                                  ng at the   stock-holdi the end of the   loss in the
  Name       Type      investment    beginning      ng at the                                                              ing   Source
                                                                 end of the     ng at the     period        reporting
                       cost(RMB)        of the     beginning                                                             subject of stock
                                                                    period     end of the    (RMB)           (RMB)
                                        period       of the
                                                                   (Share)    period (%)
                                       (Share)    period (%)
                                                                                                                      Long-ter
           Securi
Guolian                                                                                                               m stock
           ties                                                                                                                Subscri
Securities            12,000,000.00 18,000,000         1.2% 18,000,000             1.2% 12,000,000.00      540,000.00 right
           compa                                                                                                               ption
Co., Ltd.                                                                                                             investme
           ny
                                                                                                                      nt
Nanjing      Insura                                                                                                   Long-ter
Hengtai      nce                                                                                                      m stock Subscri
                       1,000,000.00 1,000,000         1.85% 1,000,000             1.85%    1,000,000.00     55,000.00
Insurance    compa                                                                                                    right    ption
and Broker   ny                                                                                                       investme


                                                                                                                                        17
                                                                               无锡威孚高科技集团股份有限公司 2012 年度报告全文


Co., Ltd.                                                                                                                      nt
Jiangsu                                                                                                                     Long-ter
            Insura
HSBC                                                                                                                        m stock
            nce                                                                                                                      Subscri
Insurance               500,000.00     500,000            10%                                                       340,000 right
            compa                                                                                                                    ption
Agents                                                                                                                      investme
            ny
Limited                                                                                                                     nt
Total                13,500,000.00 19,500,000        --         19,000,000           --        13,000,000.00      935,000.00         --    --


 (3)Situation of securities investment

                                           Amount
                                              of          Proportio       Amount     Proportio
                                  Initial stock-hol          n of            of         n of          Book
                                                                                                                Gains and
                        Short investmen ding at           stock-hol      stock-hol   stock-hol      value at
Variety of Code of                                                                                              loss in the Accounti Source of
                       form of       t       the          ding at the     ding at    ding at the   the end of
securities securities                                                                                            reporting ng subject stock
                      securities cost(RM beginning        beginning     the end of   end of the    the period
                                                                                                                  (RMB)
                                    B)      of the          of the      the period     period        (RMB)
                                            period        period (%       (Share)       (%)
                                           (Share)
                                                                                                                    Financial
                                 199,208,0 14,800,00                23,680,00                   265,689,6 740,000.0 assets    Subscript
Stock       600841      SDEC                                  2.72%                       2.72%
                                     00.00         0                        0                       00.00         0 available ion
                                                                                                                    for sales
                                 199,208,0 14,800,00                    23,680,00                  265,689,6 740,000.0
Total                                                           --                        --                                    --        --
                                     00.00         0                            0                      00.00         0
Disclosure date of securities
investment approval of Board     2012-03-24
report
Statement of holding other listed companies equity
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 was 2.72%.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.


2. Trust financing, investment of derivatives and entrustment loan

 (1) Trust financing

                                                                                                                            In 10 thousand yuan
                                                                                               Amount
                                                    Amount
                                                                                              of reserve
                                                        of                  Actual
           Amount              End date Determinat              Actual               Whether      for    Whether
 Name of            Start date                      principal              income                                 Related
           of trust             of trust ion method           income in              by legal devaluati related
  trustee            of trust                        actual               gained in                              relationsh
          financing            financin of reward             the period            procedure on of       trade
                    financing                        taking              the period                                  ip
                                   g                                                          withdrawi
                                                      back
                                                                                                  ng
Bank,        149,600 2012-07-0 2012-12 Floating              35,100 2,850.49 4,072.61 Yes                               0 No


                                                                                                                                                18
                                                                                 无锡威孚高科技集团股份有限公司 2012 年度报告全文


trust                   4           -31            rate,
                                                   maximized
                                                   annualized
                                                   ate of
                                                   return
                                                   agreed in
                                                   contract
Total         149,600       --            --             --      35,100 2,850.49 4,072.61         --            0     --            --
Overdue unreceived principal and
                                                                                                                                          0
accumulated earnings amount
Lawsuit situation(if applicable)                   N/A


Explanation

(2) Investment of derivatives
Derivatives investment hold at period-end
□ Applicable √ Not applicable
Explanation

 (3) Entrustment loan
                                                                                                                    In 10 thousand yuan
                                                                                               Extension,   Countermeasure for risks of
  Loan        Whether the        Amount of Interest rate Guarantor or          Use of loan
                                                                                               overdue or     extension, overdue or
  object      related party        loan       of loan     collateral          object’s fund
                                                                                                lawsuit              lawsuit
Total              --                          0      --            --              --             --                      --
Explanation


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                                                                      162,075.74
Total accumulative raised proceeds invested                                                                                     162,075.74
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 Tianye Certified Public Accountant 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 RMB1,620,757,400 has been
invested.




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                                                                          无锡威孚高科技集团股份有限公司 2012 年度报告全文


 (2) Situation of committed project of raised proceeds

                                                                                                                   In 10 thousand yuan

                                                            Amount
                      Projects   Total                                 Investme
                                                                of                                                        Project
                     changed committe Total                                 nt
                                                  Amount accumula                          Predicted Profit Reach the feasibility
Committed investment or not        d     investme                       program
                                                  invested     ted                          useable realized predicted     was
projects &investment (includin investme nt after                         till the
                                                   in this investme                         date of  in this interest or changed
    of raised fund       g       nt of   adjustme                       year-end
                                                    year   nt till the                      project   year       not     hugely or
                     changed raised        nt (1)                      (3)=(2)/(1
                                                           year-end                                                         not
                     partially) capitals                                     )
                                                               (2)
Investment project commitment
R&D of WAPS,
industrialization,                                                                                  Not       Not
                                                                                           2013-10-
productivity expansion No              62,032     62,032 18,569.69 18,569.69    29.94%              applicabl applicabl No
                                                                                           31
of diesel common rail                                                                               e         e
system parts
                                                                                                    Not       Not
Construction project in                                                                    2013-10-
                        No             57,750     57,750 1,929.57 1,929.57      3.34%               applicabl applicabl No
industrial zone                                                                            31
                                                                                                    e         e
                                                                                                    Not
Industrialization of tail                                                                  2012-10-
                          No           26,000     26,000 12,346.05 12,346.05    47.48%              applicabl No            No
treatment system                                                                           31
                                                                                                    e
                                                                                                    Not       Not
Research institution                                                                       2012-12-
                        No              5,154         5,154   5,154    5,154     100%               applicabl applicabl No
project                                                                                    31
                                                                                                    e         e
Battery material of
                                                                                           2012-12-
engines and R&D of      No             10,000     10,000                              0%            No            No        No
                                                                                           31
battery
Equity acquisition      No           34,381.5 34,381.5 34,381.5 34,381.5         100%                    743.15             No
Liquid assets
                        No             90,000 89,694.93 89,694.93 89,694.93      100%
supplementation
Subtotal of                                     285,012.4 162,075.7 162,075.7
                               --   285,317.5                                    --           --         743.15        --        --
commitment projects                                     3         4         4
Investment orientation for fund arising out of plan
                                                285,012.4 162,075.7 162,075.7
Total                          --   285,317.5                                    --           --         743.15        --        --
                                                        3         4         4
                        1. WAPS research development and industrial diesel common rail system components capacity
                        enhancement project. Under the feasibility report of this project, the investment plan is intended to
                        complete on 31 October 2013. as of 31 December 2012, the accumulative investment amounted to
                        RMB185,696,900, representing investment progress of 29.94%. Reason for lag behind the progress
Situation about not     included
coming up to schemed (1)the raised proceeds was not in place in time (the proceeds was expected to be in place in March 2011,
progress or expected while the actual cash time was February 2012);
revenue and the       (2)upgrade of emission rules (national level III to national level IV) resulted in uncertainty in
reason(In specific   implementation of technology methods and intensity, which affected relevant works such as equipment
project)             choices;
                        (3)investment planned for fixed assets of the project was RMB500 million, among which, imported
                        equipments accounte for 65% and delivery of imported equipments were delayed. Thus, the Company will
                        make investment based on predicable market needs.
                        2. RMB19,295,700 had been invested for construction of industry park project as of 31 December 2012,


                                                                                                                                      20
                                                                             无锡威孚高科技集团股份有限公司 2012 年度报告全文


                         representing investment progres of 3.34%. Reason for lag behind the progress included
                         (1)the relocation of governmental parcel was completed at the end of 2012. since electric power lines,
                         telecommunictaion cables and river clean works haven’t been completed, the construction can’t be
                         conducted on a overall basis.
                         (2)municipal facilities haven’t been in place, review on transfer-in of power supplied by external grid,
                         variable power distribution scheme still need consideration and approval and are in the stage of initial
                         design appraisal. The above reasons led to delayed implementation of this project as scheduled. Upon
                         satisfaction of the construction conditions, the Company will accelerate construction and finish the
                         industry park project.
                         3. Automobile exhaust post-processing system product industrial project. Under the feasibility report of
                         this project, the investment plan is intended to complete on 31 October 2012. as of 31 December 2012, the
                         accumulative investment amounted to RMB123,460,500, representing investment progress of 47.48%. The
                         Company planned to invest RMB30 million in the test center plan implemented by Weifu High-tech, and
                         RMB17,281,800 has been input, representing investment progress of 57.61%. Weifu High-tech planned to
                         invest RMB230 million in this project through increasing capital injection in Weifu Lida, and
                         RMB106,178,700 has been invested, representing investment progress of 46.16%. Reason for lag behind
                         the progress included
                         (1) the raised proceeds was not in place in time;
                         (2)there was uncertainty in implementation method of the national emission standard (national level IV),
                         so the Company was prudent in investment;
                         (3)in the original implementation plan, consequent expansion organization of production capacity resulting
                         from upgrade of emission standards was not taken into account, such as expansion of production places.
                         Therefore, during the implementation of this project, the Company would make reasonable adjustment to
                         implementation methods and application of proceeds on the condition that the implementation project
                         remained unchanged.
                         4. 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. In terms of project development in domestic
                         and overseas market, power battery, as the core component of electric cars, had no material breakthrough
                         in costs, service life and travel distance, which restricted development of pure electric cars. Countries such
                         as the US focusing on promotion of pure electric cars are also changing their targets of developing pure
                         electric cars. Domestic national policy in respect of subsidy for private purchase of electric cars has been
                         stopped which led to slow sales performance. Thus, there was great uncertainty in development of power
                         battery. Therefore, the Company was prudent for this project and continued to follow development of
                         power battery and would make decisions if needed.
Explanation on great
changes of feasibility   Not applicable
of project
Amount, usage and
progress of using for
                        Not applicable
fund raising out of the
plan
Change of
implementation place
                         Not applicable
of investment project
of raised capitals
                         Not applicable
                         Applicable
Regulation of
implementation ways      Jiangsu Gongzheng issued “Weifu High-Technology Group Co., Ltd. certified report of self-finance input
of investment project    raising and investment project in advance” “SGW[2012] No.: E1100”,ended as 29th February 2012,the
of raised capitals       company actual investment amount by self-finance input raising and investment project in advance was
                         RMB 299,120,000,including 1. R&D of WAPS, industrialization, productivity expansion of diesel common


                                                                                                                                     21
                                                                                 无锡威孚高科技集团股份有限公司 2012 年度报告全文


                           rail system parts RMB 180,050,000; 2. Construction project in industrial 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 in advance by raised capitals RMB 299,120,000.
Invested in pre-phases
and replacement for    Not applicable
raised fund projects
Temporarily
supplement for the
                           Not applicable
current capitals with
idle raised capitals
                           Usage of raised capitals had on changes in the reporting. On the storage and the usage of raised capitals,
Usage and trend of
                           the company’s execution strictly based on related laws and regulations and three-party supervision protocol
unused raised capitals
                           of raised capitals(four-party supervision protocol of raised capitals).
Questions or other
situation while using
                           N/A
raised capitals and in
disclosure


 (3)The changed project of raised proceeds

                                                                                                                In 10 thousand yuan

                                                  Accumulati Progress of
                                                                                                                          Whether the
                             Total                 on virtual     the
                                                                                     Date of the               Whether it feasibility
              Correspondi amount       Virtual      amount    investment                            Income
                                                                                        project               has come up    of the
Project after ng original invested     amount        input    deadline the                        achieved in
                                                                                      coming to                  to the      project
 the change committed        after   input in the dealine the end of the                              the
                                                                                      scheduled                scheduled   changed
                project   adjustment reporting end of the reporting                                reporting
                                                                                     usable state               income      after the
                              (1)                  reporting (%)(3)=(2)/
                                                                                                                           alteration
                                                      (2)         (1)
Total              --                     0             0           0       --           --                0      --           --
Changing reason, decision procedure
and statement of disclosure(In specific There was no changed projects of raised proceeds in the reporting.
project)


4. Main subsidiaries and stock-jointly companies

Particular about main subsidiaries and stock-jointly companies

                                        Main                                                      Operating Operating
 Company                                            Register     Total assets       Net Assets                            Net profit
               Type      Industries   products                                                     revenue    profit
  name                                              capital        (RMB)             (RMB)                                 (RMB)
                                      or service                                                   (RMB)     (RMB)
Wuxi Weifu                            Post-proce
Leader                                ssing      RMB
           Subsidi Automobil                                                                      918,694,47 103,504,5 96,278,532.9
Catalytic                             system     502,596,3     1,200,975,592.77 827,883,869.51
           ary     e parts                                                                              8.43     98.80            4
Converter                             production 00
Co., Ltd.                             s
Nanjing                        Fuel                RMB
             Subsidi Automobil                                                                    947,555,88 211,712,8 186,406,750.
Weifu                          injection           346,286,8   1,182,230,849.16 739,365,899.80
             ary     e parts                                                                            9.58     37.87          15
Jinning Co.,                   system              00


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                                                                               无锡威孚高科技集团股份有限公司 2012 年度报告全文


Ltd.                                 production
                                     s
Bosch                            Fuel
              Joint-st
Automobile                       injection
              ock      Automobil            $ 200                                 3,281,537,572. 4,038,152,4 546,243,2 459,599,504.
Diesel                           system                       5,021,618,198.00
              compa e parts                 million                                          00        95.00     37.00          00
System Co.,                      production
              ny
Ltd.                             s
Zhonglian     Joint-st           Petrol
                                            RMB
Automobile    ock      Automobil system                                           1,869,420,319. 245,868,96 790,272,4 798,242,961.
                                            600,620,0         1,888,422,971.27
Electronic    compa e parts      production                                                  38        4.79     16.93          60
                                            00
Co., Ltd.     ny                 s
Notes of main subsidiaries and stock-jointly companies
Bosch Automobile Diesel System Co., Ltd. gained net profit RMB 0.46 billion in 2012,decreasing 38.67% than RMB 0.75 billion in
2011,mainly because the market requirement of commercial vehicles decreased and the market of heavy duty trucks depressed.
Particular about subsidiaries obtained or disposed in report period
□ Applicable √ Not applicable


5. The significant progress of non-raised proceeds investment

                                                                                                                 In 10 thousand yuan

                                                                         Accumulation of
                         Total investment         Investment amount      actual investment    Progress of the     Earnings of the
 Name of the project
                             amount                 in the annual       amount ended of the      project              project
                                                                            period-end
Total                                        0                      0                     0          --                 --
                                  Statement of the significant progress of non-raised proceeds investment


VII.Special purpose vehicle under the control of company
The company has no special purpose vehicle under the control of company

VIII. 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 layout and development trend
The implementation of national IV emission regulations will promote enhancement of technology level of auto
core components. The development of the industry will face division.

Benefits from reform, talent and urbanization will give strong support for continued, healthy and stable
development of the PRC economy, and promote steady development of auto indusry. Urbanization has been
regarded as the important engine determining the future development and city group constitutes the important
content of new urbanization. Development of city group requires increasing investment in urban rail traffic and
infrastructure construction, so as to provide new opportunies for development of engineer machine, heavy truck
and passenger bus markets. As to auto industry, the focus will transfer to quality instead of scale.

2. Operation plan for 2013
The macro economy continues to be complicated in 2013, with slow growth in general. accordingly, we will
manage to make breakthrough, consolidate the established market, strictly control risks, actively promote strategic
structure adjustment, hold every opportunity to develop, continue to improve its competitiveness and continue to
implement its strategic development target. The working focuses will be as follows in 2013: strengthen internal

                                                                                                                                    23
                                                                          无锡威孚高科技集团股份有限公司 2012 年度报告全文


risk control, establish sound early warning system; strengthen internal system management, consolidate
development basis, continue to promote development; emphasize on high efficiency and cost reduction, enhance
cost control ability, raise core competitiveness; improve quality management and product quality, continue to
increase quality control; consolidate existing market, explore new market and strive to make breakthrough in
product and market strategy; take advantage of finance leverage and increase capital benefits.

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 and efficiency”. Manage to realize the target of being the leader in
domestic automobile (power engineering) core components field.

4. Potential risks in 2013
The auto industry faces difficulty from energy, environment and heavy traffic after ten years rapid development ,
which leads to stable development from the original rapid development as to the growth pattern of PRC
automobile industry. Factors such as the domestic and overseas macro economic environment, auto industry
policies, national emission standard level IV will bring great affects to the development of the Company.


IX.Explanation of the Board of Directors on the “Qualified Opinion” of the report made by
the CPAs

Jiangsu Gongzheng Tianye Certified Public Accountants Co., Ltd. carried out standard unqualified audit opinion for the company.

X.Explanation on changes of accounting policy, accounting estimation and settlement method
compared with the last year’s financial report
Compared with last year’s financial report, accounting policy, accounting estimation and settlement method has no changes.


XI. Particular about major accounting errors correction that needs retroactive re-statement
in reporting period

No major accounting errors correction occurred in reporting period.

XII. Compare with last year’s financial report; explain changes in consolidation statement’s
scope

Compare with last year’s financial report consolidation statement’s scope, one combined unit was decreased.
Weifu Jida had cancelled in September 2011. Weifu Jida’s income statement and cash flow statement from the
beginning of last period to cancellation date included to consolidation financial statement’s scope.

XIII. Profit and dividend distribution

Establishment, implementation or adjustment of profit distribution policy espectially the cash dividend policy during the reporting
period
In August, the Company made further detailed provision in respect of the clauses concrning cash dividend in the
Articles of Association according to the Notice on Further Implementation of Cash Dividend of Listed Company
(ZJF(2012)No.37) issued by the CSRC and the Notice on Further Implementation of Relevant Requirements for
Cash Dividend of Listed Company issued by the securities regulatory bureau of Jiangsu based on its actual
conditions. In detail, the Company expressly determined the dividend proportion and decision making system,
which were considered and approved at the 5th meeting of the 7th board and the 2nd extraordinary general
meeting of 2012. the Company will follow the relevant provisions of the Articles of Association to execute profit
distribution policy wih independent opinions issued by independent directors, so as to make sure the minority

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                                                                           无锡威孚高科技集团股份有限公司 2012 年度报告全文


shareholders have opportunity to express opinions and raise demands, thus to protect the legal interests of its
shareholders, especially the minority shareholders. the profit distribution plan of the Company in the reporting
period accorded with the relevant provisions as set out in the Articles of Association.

The profit distribution plan and capitalization of capital reserve plan of the Company in the reporting period accorded with the
relevant provisions as set out in the Articles of Association.


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 2010: based on the total share capital of 567275995 shares as at the end of 2010,
distribute cash dividend of RMB4.35 (tax included) for every 10 shares, and no capitalization of capital reserve.
The plan has been implemented completely in August 2011.

The profit distribution plan for 2011: based on the total share capital of 680133995 shares as at the end of 2011,
distribute cash dividend of RMB3 (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 number of issued stock ,which is 680.133995 million ,as
of Dec 31,2012,Cash bonus of RMB 3 (tax inclusive)and 5 bonus stock(tax inclusive) per 10 stocks shall be
paid to the shareholders.No capital reserve shall be converted into the registered capital and the remaining
undistributed profits shall be incorporated into the next accounting year’s profits。The plan has been considered
and approved by the board, waiting for approval from the general meeting.


Cash dividend in latest three years
                                                                                                                              Unit: RMB

                                                                       Net profit attributable to     Ratio in net profit attributable to
                                      Amount for cash bonus (tax    shareholders of listed company shareholders of listed company
       Year for bonus shares
                                              included)             in consolidation statement for       contained in consolidation
                                                                              bonus year                       statement (%)

2012                                               204,040,198.50                   889,326,939.46                              22.94%

2011                                               204,040,198.50                 1,204,617,075.56                              16.94%

2010                                               246,765,057.83                 1,340,291,115.79                              18.41%

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


XIV. Social responsibility

More details of the company “social responsibility report 2012” could be found in Juchao Website, the identifiable information
disclosure website by Shenzhen Stock Exchange. (www.cninfo.com.cn)

XV. In the report period, reception of research, communication and interview
                                                                                                     Contents discussed and material
     Time                 Place                 Way          Type               Reception
                                                                                                                provided
                 Conference room of the                                China Merchants
2012-03-02                              Spot research Institution                                    Analysis of the market in 2012
                 Company                                               Securities
                 Conference room of the               Institution      CITIC Securities, Ping An
2012-03-07                              Spot research                                            Analysis of the market in 2012
                 Company                                               Securities

                                                                                                                                       25
                                                                   无锡威孚高科技集团股份有限公司 2012 年度报告全文


             Conference room of the               Institution
2012-05-13                          Spot research               Guotai Junan Securities Analysis of the market in 2012
             Company
             Conference room of the               Institution   CITIC Securities, Ping An
2012-05-23                          Spot research                                         Analysis of the market in 2012
             Company                                            Securities
             Conference room of the               Institution
2012-07-13                          Spot research               Minsheng Securities       Analysis of the market in 2012
             Company
             Conference room of the
2012-07-16                          Spot research Institution   Guodu Securities          Analysis of the market in 2012
             Company




                                                                                                                           26
                                                                                 无锡威孚高科技集团股份有限公司 2012 年度报告全文



                                         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.
Questioned from media
□ Applicable √ Not applicable
No media questioned for the Company in reporting period


II. Non-operational fund occupation of the listed company from controlling shareholder and
its related parties

                                                                            Total
                                     Amount at          Amount             amount          Amount at                  Estimated
                                                                                                                                     Date for
Shareholder                          period-begin newly-increased         repaid in        period-end     Estimated     repaid
              Occupati                                                                                                               payment
 or related                Reasons      (in 10        in reporting        reporting          (in 10       repayment   amount (in
               on date                                                                                                               estimated
   person                             thousand        period (in 10       period (in       thousand         way       10 thousand
                                                                                                                                     (month)
                                        yuan)        thousand yuan) 10 thousand              yuan)                      yuan)
                                                                            yuan)

Total                                            0                    0                0              0      --                  0      --

Ratio of total amount at
period-end in net assets at                                                                                                                  0%
period-end (%)


III. Bankruptcy reorganization

No bankruptcy reorganization of the Company




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                                                                                                                                        无锡威孚高科技集团股份有限公司 2012 年度报告全文




IV.Trade of assets

1. Purchase of assets

                                                                     Net profit            Net profit
                                                                contributed to the   contributed to the
                                                                  listed company       listed company      Ratio of net
                                                                from the purchase     from the begin to        profit
   The other                         Purchase
                                                                date to the end of       the end of the   contributed to Related              The related
    party of                          price(10    The progress                                                                                                     Date of
                 Assets purchased                                     the report      report period( 10        listed      transaction relationship(applicable                 Index of disclosure
 transaction or                      thousand      Situation                                                                                                      disclosure
                                                               period( 10 thousand     thousand yuan)      company in         or not   for related transaction)
final controller                       yuan)
                                                                yuan) (applicable       (applicable for   total net profit
                                                                   for enterprise    enterprise merger          (%)
                                                                 merger under the    under the common
                                                               uncommon control)            control)
Wuxi Industry   1.5% equity of
                                              Ownership has                                                                                                                  “Semi-Annual Report
Development     Bosch Automobile
                                     20,628.9 transferred in                                                      0.43% Yes           Substantialshareholder      2012-08-29 of 2012” published on
Group Co.,      Diesel System Co.,
                                              total                                                                                                                          Juchao Website
Ltd             Ltd hold
                1% equity of
ROBERT                                        Ownership has                                                                                                                  “Semi-Annual Report
                Bosch Automobile
BOSCH                                13,752.6 transferred in                                                      0.29% Yes           2nd largest shareholder     2012-08-29 of 2012” published on
                Diesel System Co.,
GMBH(                                         total                                                                                                                          Juchao Website
                Ltd hold
              The exclusive right                Transfer
              to use ” 锡字                  amount RMB
                                                                                                                                                                             ”Trademark of
              brand” was owned                15,155,700
                                                                                                                                                                             substantial
Wuxi Industry by Industry Group,               was paid in
                                                                                                                                                                             shareholder transfer
Development (trade mark                        advance to
                                     1,615.57                                                                            Yes          Substantialshareholder      2012-12-05 and related
Group Co.,    license: No.                     Industry
                                                                                                                                                                             transaction”(No.:
Ltd           225109) and                      Group,
                                                                                                                                                                             2012-046) published
              exclusive use right              relevant
                                                                                                                                                                             on Juchao Website
              of 42 pieces of                  procedure still
              figurative mark                  in process
Acquisition of assets
                                                                                                                                                                                                 28
                                                                                                                                       无锡威孚高科技集团股份有限公司 2012 年度报告全文
As approved at the 2nd extraordinary general meeting held on 24 December 2010, the Company issued shares to its substantial shareholders Wuxi Industry Development Group Co., Ltd. and
ROBERT BOSCH GMBH by non-public offering. On 21 January 2012, the CSRC issued the approval on Non-public Offering by Weifu High-technology Group Co., Ltd.
(ZJXK(2012)No.109), to approve the Company issue new shares not exceeding 112,858,000 by non-public offering. The investment project with the proceeds raised in the non-public offering
was to acquire the 1.5% equity of RBCD held by Wuxi Industry Development Group Co., Ltd. and the 1% equity of RBCD held by ROBERT BOSCH GMBH. The purpose of this equity
acquisition: to solve the related investment with Industry Group; to increase close cooperation with RBCD by increasing the shareholding in RBCD, thus to promise continued stable
development and enhancement of profitability of the Company.


The Company held the 8th meeting of the 7th board on 3 December 2012, to consider and approve the proposal that the Company intended to acquire the “Xizipai” trademark license (the
trademark registration No. 225109) and 42 graph trademarks licenses held by Industry Group with the evaluation price of RMB16, 155,700. the purpose of this related transaction of the
Company was to change the existing situation that the trademarks under “Xizipai” series were separated with its products, to determine clear relation in respect of trademark property, thus to
keep the completeness and independence of its assets. The Company improved its ability of continued operation, benefitial for its long term stable development.


2. Sales of assets

                                                      Net profit
                                                                                  Ratio of net
                                                  contributed to
                                                                                     profit
                                                      the listed                                                                                Assets
  The other                              Trading                                  contributed                                                             Credit and
                                                  Company from Gains/losses                                                                     rights
   party of                             price (in                                 by the sold Explanation Related          The related                      liability
                               Sales                the begin of from sales (in                                                               concerned                 Date of Index of
transaction or Assets sold                 10                                      assets for  on price transaction relationship(applicable                concerned
                               date                the reporting 10 thousand                                                                 transferred               disclosure disclosure
     final                              thousand                                     listed     setting    or not   for related transaction)                 shifted
                                                     to the sales   yuan))                                                                    ownership
  controller                             yuan))                                   company in                                                              fully or not
                                                      date(in 10                                                                             fully or not
                                                                                  total profit
                                                      thousand
                                                                                      (%)
                                                        yuan))
                Equityof
Wuxi Industry    Wuxi
Development      Venture                                                                       Assessment                                                                              Not
                           2012-9-14      397.62                          97.62                           Yes            Substantial shareholder Yes           Yes
Group Co.,       Capital                                                                       price                                                                                   applicable
Ltd              GroupCo.,
                 Ltd.
Overview of assets sold


3. Enterprise merger
In the reporting, the company has no enterprise merger.


V.Implementation of the company’s equity incentive and the effects
                                                                                                                                                                                               29
                                                                                                                              无锡威孚高科技集团股份有限公司 2012 年度报告全文
No equity incentive plan formulated and implemented by the Company.




VI. Significant related transaction

1. Related transaction connected to routine operations

                                                                                            Related    Proportion in
   Related                         Related       Related                                                                  Related
                                                                               Related    transaction the amount of
                   Related                                    Pricingprincip                                            transaction   Marke Date of
  transaction    relationship
                                  transaction   transaction                  transaction amount (in 10   the same                                               Index of disclosure
                                                                    al                     thousand     transaction      settlement   t price disclosure
     parties                         type         content                       price
                                                                                             yuan)          (%)            mode

                                                                                                                                                           ”Prediction of Daily Related
Wuxi Weifu                                                                                                                                                 Transaction for year of 2012”
                                Procurement of
Precision                                                                                                                                                  (No.: 2012-027) and
              Associated        merchandise    Procurement                                                             According to          2012-04-
Machinery                                                  Market price                       7,341.94         2.6%                                        “Resolution Notice of Annual
              company           and receiving of goods                                                                 the contract          18
Manufacturing                                                                                                                                              Shareholders Genral Meeting
                                labor service
Co., Ltd.                                                                                                                                                  of 2011” published on Juchao
                                                                                                                                                           Website
                                                                                                                                                           ”Prediction of Daily Related
                Associated
                                                                                                                                                           Transaction for year of 2012”
                company,        Procurement of
                                                                                                                                                           (No.: 2012-027) and
Bosch Diesel    controlling     merchandise    Procurement                                                             According to          2012-04-
                                                           Market price                      15,370.97        5.43%                                        “Resolution Notice of Annual
System          subsidiary of   and receiving of goods                                                                 the contract          18
                                                                                                                                                           Shareholders Genral Meeting
                German Bosch    labor service
                                                                                                                                                           of 2011” published on Juchao
                Company
                                                                                                                                                           Website
                                                                                                                                                           ”Prediction of Daily Related
Wuxi Weifu                                                                                                                                                 Transaction for year of 2012”
                                Procurement of
Environment     Joint venture                                                                                                                              (No.: 2012-027) and
                                merchandise    Procurement                                                             According to          2012-04-
Protection      of Weifu                                   Market price                      51,543.21       18.25%                                        “Resolution Notice of Annual
                                and receiving of goods                                                                 the contract          18
Catalyst        Leader                                                                                                                                     Shareholders Genral Meeting
                                labor service
Co.,Ltd.                                                                                                                                                   of 2011” published on Juchao
                                                                                                                                                           Website
Wuxi                            Procurement of                                                                                               2012-04-      ”Prediction of Daily Related
                                               Procurement                                                             According to
Weifu-Autoca Joint venture      merchandise                Market price                       1,527.91        0.54%                                        Transaction for year of 2012”
                                               of goods                                                                the contract          18
m Fine                          and receiving                                                                                                              (No.: 2012-027) and
                                                                                                                                                                                         30
                                                                                                    无锡威孚高科技集团股份有限公司 2012 年度报告全文
Machinery Co.                 labor service                                                                                “Resolution Notice of Annual
LTD                                                                                                                        Shareholders Genral Meeting
                                                                                                                           of 2011” published on Juchao
                                                                                                                           Website
                                                                                                                           ”Prediction of Daily Related
                                                                                                                           Transaction for year of 2012”
                            Procurement of
             second largest                                                                                                (No.: 2012-027) and
German Bosch                merchandise    Procurement                                       According to       2012-04-
             shareholder of                            Market price       3,573.01   1.27%                                 “Resolution Notice of Annual
Company                     and receiving of goods                                           the contract       18
             the Company                                                                                                   Shareholders Genral Meeting
                            labor service
                                                                                                                           of 2011” published on Juchao
                                                                                                                           Website
                                                                                                                           ”Prediction of Daily Related
Wuxi Weifu                                                                                                                 Transaction for year of 2012”
Precision                                                                                                                  (No.: 2012-027) and
              Associated                       Sales of                                      According to       2012-04-
Machinery                     Sales of goods              Market price    1,619.97   0.32%                                 “Resolution Notice of Annual
              company                          goods                                         the contract       18
Manufacturing                                                                                                              Shareholders Genral Meeting
Co., Ltd.                                                                                                                  of 2011” published on Juchao
                                                                                                                           Website
                                                                                                                           ”Prediction of Daily Related
                Associated
                                                                                                                           Transaction for year of 2012”
                company,
                                                                                                                           (No.: 2012-027) and
Bosch Diesel    Controlling                 Sales of                                         According to       2012-04-
                             Sales of goods               Market price   32,167.83   6.41%                                 “Resolution Notice of Annual
System          subsidiaryof                goods                                            the contract       18
                                                                                                                           Shareholders Genral Meeting
                German Bosch
                                                                                                                           of 2011” published on Juchao
                Company
                                                                                                                           Website
                                                                                                                           ”Prediction of Daily Related
Wuxi Weifu                                                                                                                 Transaction for year of 2012”
Environment     Joint venture                                                                                              (No.: 2012-027) and
                                             Sales of                                        According to       2012-04-
Protection      company of    Sales of goods              Market price      954.9    0.19%                                 “Resolution Notice of Annual
                                             goods                                           the contract       18
Catalyst        Weifu Leader                                                                                               Shareholders Genral Meeting
Co.,Ltd.                                                                                                                   of 2011” published on Juchao
                                                                                                                           Website
Wuxi                                                                                                                       ”Prediction of Daily Related
Weifu-Autoca                                                                                                               Transaction for year of 2012”
              Joint venture                    Sales of                                      According to       2012-04-
m Fine                        Sales of goods              Market price     310.49    0.06%                                 (No.: 2012-027) and
              company                          goods                                         the contract       18
Machinery Co.                                                                                                              “Resolution Notice of Annual
LTD                                                                                                                        Shareholders Genral Meeting

                                                                                                                                                        31
                                                                                                    无锡威孚高科技集团股份有限公司 2012 年度报告全文
                                                                                                                           of 2011” published on Juchao
                                                                                                                           Website
                                                                                                                           ”Prediction of Daily Related
                                                                                                                           Transaction for year of 2012”
             second largest                                                                                                (No.: 2012-027) and
German Bosch                               Sales of                                          According to       2012-04-
             shareholder of Sales of goods                  Market price   1,489.89   0.3%                                 “Resolution Notice of Annual
Company                                    goods                                             the contract       18
             the Company                                                                                                   Shareholders Genral Meeting
                                                                                                                           of 2011” published on Juchao
                                                                                                                           Website
                                                                                                                           ”Prediction of Daily Related
               Associated
                                                                                                                           Transaction for year of 2012”
               company,                    Technology
                                                                                                                           (No.: 2012-027) and
Bosch Diesel   Controlling                 service                                           According to       2012-04-
                            Other                                           681.77                                         “Resolution Notice of Annual
System         subsidiaryof                charge                                            the contract       18
                                                                                                                           Shareholders Genral Meeting
               German Bosch                payable
                                                                                                                           of 2011” published on Juchao
               Company
                                                                                                                           Website
                                                                                                                           ”Prediction of Daily Related
Wuxi                                                                                                                       Transaction for year of 2012”
Weifu-Autoca                                                                                                               (No.: 2012-027) and
              Joint venture                Rental                                            According to       2012-04-
m Fine                         Other                                        172.24                                         “Resolution Notice of Annual
              company                      receivable                                        the contract       18
Machinery Co.                                                                                                              Shareholders Genral Meeting
LTD                                                                                                                        of 2011” published on Juchao
                                                                                                                           Website
                                                                                                                           ”Prediction of Daily Related
Wuxi Weifu                                                                                                                 Transaction for year of 2012”
Environment    Joint venture                                                                                               (No.: 2012-027) and
                                           Rental                                            According to       2012-04-
Protection     of Weifu        Other                                         186.1                                         “Resolution Notice of Annual
                                           receivable                                        the contract       18
Catalyst       Leader                                                                                                      Shareholders Genral Meeting
Co.,Ltd.                                                                                                                   of 2011” published on Juchao
                                                                                                                           Website
                                                                                                                           ”Prediction of Daily Related
Wuxi Weifu                                                                                                                 Transaction for year of 2012”
Environment    Joint venture                                                                                               (No.: 2012-027) and
                                           Sales of fixed                                    According to       2012-04-
Protection     of Weifu        Other                                         37.65                                         “Resolution Notice of Annual
                                           assets                                            the contract       18
Catalyst       Leader                                                                                                      Shareholders Genral Meeting
Co.,Ltd.                                                                                                                   of 2011” published on Juchao
                                                                                                                           Website

                                                                                                                                                        32
                                                                                                                                            无锡威孚高科技集团股份有限公司 2012 年度报告全文
                                                                                                                                                                     ”Prediction of Daily Related
                                                                                                                                                                     Transaction for year of 2012”
              Substantial                        Land and                                                                                                            (No.: 2012-027) and
Wuxi Industry                                                                                                                    According to            2012-04-
              shareholder of Other               trademark fee                                              626.15                                                   “Resolution Notice of Annual
Group                                                                                                                            the contract            18
              the Company                        payable                                                                                                             Shareholders Genral Meeting
                                                                                                                                                                     of 2011” published on Juchao
                                                                                                                                                                     Website
                                                                                                                                                                     ”Prediction of Daily Related
                                                                                                                                                                     Transaction for year of 2012”
             2nd-largest                                                                                                                                             (No.: 2012-027) and
German Bosch                                     Technology                                                                      According to            2012-04-
             shareholder of Other                                                                      1,793.05                                                      “Resolution Notice of Annual
Company                                          royalties paid                                                                   the contract           18
             the Company                                                                                                                                             Shareholders Genral Meeting
                                                                                                                                                                     of 2011” published on Juchao
                                                                                                                                                                     Website
Total                                                                                             119,397.08           35.37%          --                     --                   --
                                                                                                The above mentioned related transactions are the necessary trading which closely concerned with
Necessity and sustainable of related transaction as well as reasons of related transaction with daily opration of the Company, Borad of the Company guarantee the above mentioned
related parties(not with other marketing dealers)                                               excercising in a fair value pricing and reasonable paymen/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
                                                                                                 The total amount from daily related transaction in reporting period still in the predicted amount
Report the actual implementation of the normal related transactions which were projected
                                                                                                 that approved in Annual Shareholders’ Genral Meeting of 2011, the predicted amount of daily
about their total amount by types during the reporting period(if applicable)
                                                                                                 related transactions for year of 2012 at year-begin amounting as RMB 2,273,500,000 in total.


2. Related transaction incurred by purchase or sales of assets
                                                                                             Assessment
                                                                              Book value                                                                   Income
                                                                                                value of      Market fair                  Clearing
                                 Type of       Content of                       of assets                                 Transfer price                from assets
                                                                   Pricing                       assets       value (10                    form for                  Disclosure          Index of
Related party Relationship       related         related                      transfer (10                                (10 thousand                  transfer (10
                                                                  principle                  transfer (10      thousand                     related                     date            disclosure
                               transaction     transaction                      thousand                                      yuan)                       thousand
                                                                                               thousand          yuan)                   transaction
                                                                                  yuan)                                                                     yuan)
                                                                                                 yuan)
Wuxi                                         1.5% equity of
                                                                                                                                                                                ”Semi-annual
Industry                                     Bosch
            Substantial      Equity                         Appraisal                                                                    According to                           report of 2012”
Development                                  Automobile                           4,373.28       20,628.9        20,628.9       20,628.9                      445.89 2012-08-29
            shareholder      acquisition                    value                                                                        agreement                              published on
Group Co.,                                   Diesel System
                                                                                                                                                                                Juchao Website
Ltd                                          Co., Ltd hold

                                                                                                                                                                                                     33
                                                                                                                                  无锡威孚高科技集团股份有限公司 2012 年度报告全文
                                            1% equity of
                                                                                                                                                                      ”Semi-annual
ROBERT        Second                         Bosch
                           Equity                          Appraisal                                                           According to                           report of 2012”
BOSCH          largest                       Automobile                       2,915.52   13,752.6     13,752.6        13,752.6                      297.26 2012-08-29
                           acquisition                     value                                                               agreement                              published on
GMBH           shareholder                   Diesel System
                                                                                                                                                                      Juchao Website
                                             Co., Ltd hold
                                            The exclusive
                                            right to use ”
                                                                                                                                                                        ”Trademark of
                                            锡字 brand”
                                                                                                                                                                        substantial
                                            was owned by
Wuxi                                                                                                                                                                    shareholder
                                            Industry
Industry                                                                                                                                                                transfer and
            Substantial      Assets         Group, (trade Appraisal                                                              Appraisal
Development                                                                          0   1,615.57     1,615.57        1,615.57                               2012-12-05 related
            shareholder      acquisition    mark license: value                                                                  value
Group Co.,                                                                                                                                                              transaction”(No.
                                            No. 225109)
Ltd                                                                                                                                                                     : 2012-046)
                                            and exclusive
                                                                                                                                                                        published on
                                            use right of 42
                                                                                                                                                                        Juchao Website
                                            pieces of
                                            figurative mark
Wuxi
Industry                                    Equity of Wuxi
            Substantial                                     Appraisal                                                            Appraisal
Development                  Equity sold    Venture Capital                        300    397.62        397.62          397.62                       97.62                Not applicable
            shareholder                                      value                                                               value
Group Co.,                                  GroupCo., Ltd.
Ltd

Reason of major difference between the transfer price and book value or assessed value    Income approach predicted enterprise’s value based on profitability of the enterprise

                                                                                          Firstly, solved the related investment with Industry Group; secondly, strengthen close
Influence on the operation results and financial status of the Company                    cooperation with RBCD by higering equity ratio RBCD, promote the sustainable development
                                                                                          of the Company and enhance profitability of the Company




                                                                                                                                                                                           34
                                                                              无锡威孚高科技集团股份有限公司 2012 年度报告全文



3. Significant related transaction from jointly investment outside
                                                                                              Total assets Net assets of Net profit of
                                                                               Register
                                                         Main business                        of invested     invested      invested
    Same                         Pricing      Enterprise                      capital of
              Relationship                                of invested                        enterprise(10 enterprise(10 enterprise(10
  investors                     principle      invested                        invested
                                                          enterprise                           thousand      thousand      thousand
                                                                              enterprise
                                                                                                 yuan)         yuan)         yuan)
4. Credits and liability of related party
Whether have non-operation related liabilities and credits relations or not
□Yes √No
                                                                          Whether has
                                                                                        Balance at    Amount in     Balance at
                                                                         non-operation
                                                          Reasons for                  period-begin this period(10 period-end
     Related party        Relationship        Type                           fund
                                                           occurring                   (10 thousand    thousand    (10 thousand
                                                                         occupation or
                                                                                           yuan)         yuan)        yuan)
                                                                              not


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


VII. Significant contracts and its implementation

1. Trusteeship, contracting and lease

(1) Trusteeship

Explanation on trust
In reporting period, the Company has no trusteeship event occrueed, and either trusteeship occurred in previous period and last to this
reproting period
Items generated over 10% gains/losses in total profit in reporting period for the Company
□ Applicable √ Not applicable

(2) Contract

Explanation on contract
In reporting period, the Company has no contract occrueed, and either contract occurred in previous period and last to this reproting
period
Items generated over 10% gains/losses in total profit in reporting period for the Company
□ Applicable √ Not applicable

(3) Lease

Explanation on lease
In reporting period, the Company has no lease occrueed, and either lease occurred in previous period and last to this reproting period
Items generated over 10% gains/losses in total profit in reporting period for the Company
□ Applicable √ Not applicable


2. Guarantees
                                                                                                                  In ten thousand yuan


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                                                                             无锡威孚高科技集团股份有限公司 2012 年度报告全文


             Particulars about the external guarantee of the Company (Barring the guarantee for the controlling subsidiaries)
                                                                                                                       Guarante
                     Related
                                                                                                                         e for
                   Announcem                Actual date of   Actual                                        Complete
   Name of the                 Guarantee                                             Guarantee Guarantee                related
                        ent              happening (Date of guarantee                                    implementatio
Company guaranteed               limit                                                 type      term                    party
                    disclosure           signing agreement)   limit                                         n or not
                                                                                                                        (Yes or
                       date
                                                                                                                          no)
                                              Guarantee of the Company for the subsidiaries
                                                                                                                       Guarante
                     Related
                                                                                                                         e for
                   Announcem                Actual date of   Actual                                        Complete
   Name of the                 Guarantee                                             Guarantee Guarantee                related
                        ent              happening (Date of guarantee                                    implementatio
Company guaranteed               limit                                                 type      term                    party
                    disclosure           signing agreement)   limit                                         n or not
                                                                                                                        (Yes or
                       date
                                                                                                                          no)
Total amount of guarantee of the Company( total of two abovementioned guarantee)
Including:
Explanation on guarantee with composite way
The Company has no guarantee occurred in reporting period


(1) Guarantee provided against regulations

                                                                                                                 In 10 thousand yuan

                                                                 Amount
                      Amount                                    guarantee
                                                                                                Predicted
                    guarantee Ratio in                           against    Ratio in
         Relationsh                                                                               amount Predicted
                      against  net assets                      regulation      net   Predicted
Guarantee ip with                         Guarantee Guarantee                                   relieve (in     date
                    regulation     at                         ended before assets at methods to
 name       listed                          type      term                                          10      relieve(mo
                       (in 10 period-end                      annual report period-e relieve
          company                                                                                thousand       nth)
                     thousand     (%)                             (in 10     nd (%)
                                                                                                   yuan)
                       yuan)                                    thousand
                                                                  yuan)
Total                               0          0%      --           --                 0       0%       --          --          --


3. Other significant contract

                                         Appraisal
                        Book
                                         value for
                       value of
                                           assets
                       amount                                    Base date             Trading Whether                  Implement
 Company                                 involved
           Name of involved                          Appraisal of assets              price (in constitute                 ation
  entered                                    in                              Pricing                         Related
          counterpar in contract                    agency (if evaluation                10      related                 ended as
   into a                               contract(in                         principle                      relationship
              t         (in 10                      applicable)     (if               thousand transaction               reporting
 contract                                    10
                      thousand                                  applicable)             yuan)     or not                  period
                                         thousand
                      yuan) (if
                                         yuan) (if
                     applicable)
                                        applicable)




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                                                                          无锡威孚高科技集团股份有限公司 2012 年度报告全文


VIII. Implementation of commitments

1. Commitments from the Company or shareholders (with over 5% shares held) in or continued to
reporting period

                                                                                                Dated for Commit
                        Commitment
   Commitments                                               Contents                          commitme ment Implementation
                           party
                                                                                                   nt      term
                                      Non-circulating shares of Weifu Hi-tech held by Weifu
                                      Group could not listed or transferred within 60 months
                                      since possessing of listing right. After the expiry of the
                                      commitment period, original non-circulating shares
                                                                                                              The commitment
                        Wuxi Industry would be listed for sale in Shenzhen Stock Exchange,
                                                                                                              was being
Share Merger            Development the proportion of sales volume to total share equity of 2006-04-0
                                                                                                              fulfilled without
Reform                  Group Co.,    Weifu Hi-tech could not exceed 5% within 12 months 5
                                                                                                              holdings-reducin
                        Ltd           as well as 10% within 24 months, and sales price ought
                                                                                                              g shares.
                                      not to less than RMB 10 per share (the lowest
                                      impairment price of shares holding would be calculated
                                      ex-right at the same time if share price ought to ex-right
                                      according to regulation).
Commitments in
report of acquisition
or equity change
Commitments in
assets reorganization
                        Wuxi Industry
                                        The privately offering of the Company totally issue
                        Development
Commitments in                          112,858,000 A-shares to substantial shareholder Wuxi
                        Group Co.,
initial public                          Industry Group and foreign strategy investor ROBERT
                        Ltd and                                                                               Implementing
offering or                             BOSCH GMBH. The above said shares are listed for
                        ROBERT
refinancing                             trading in Shenzhen Stock Exchange since 29 February
                        BOSCH
                                        2012 with 36-month restriction
                        GMBH
                                In order to promote the listed company’s steady and
                                healthy development, fully mobilize senior executives
                                so as to ensure to combine the interests of the
other commitments Wuxi Industry governance and shareholders of the Company, Weifu
                                                                                                              Implemented
to minority         Development Industry Group committed: after Weifu High-tech 2006-04-0
                                                                                                              after related
shareholders of the Group Co.,  finishing Share Merger Reform, under related 5
                                                                                                              policy released
Company             Ltd         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.
Completed on time
                        Yes
or not
Detail reasons for
un-complement and Not-applicable
further plan
Whether made a
promise to
horizontal
                     No
competition and
related transactions
that resulted or not


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                                                                              无锡威孚高科技集团股份有限公司 2012 年度报告全文


Solution term
                      Not-applicable
promised
Solution way          Not-applicable
Complementation       Implementing


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 failure
    Assets or                                                                                     Disclosure date        Index of
                   Date starting   Date ended for performance      performance      to reached
  project owes                                                                                     for original          original
                   for forecast       forecast   currently (in 10 currently (in 10 forecast (if
 profit forecast                                                                                     forecast            forecast
                                                  thousand yuan) thousand yuan) applicable)


IX. Appointment and non-reappointment (dismissal) of CPA

Accounting firm appointed

Name of domestic accounting firm                                          Jiangsu Gongzheng Tianye CPA Co., Ltd.
Remuneration for domestic accounting firm (in 10 thousand yuan)                                                                     150
Continuous life of auditing service for foreign accounting firm           21 years
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 2011, Jiangsu Gongzheng Tianye CPA Co., Ltd.
was appointed as audit accounting firm for internal control of the Company for year of 2012. For supervision
needs of targeted placement of 2012, Everbright Securities Co., Ltd. was the sponsor of the Company for duty of
continues supervison.

X. Explanation from Supervisory Committee and Independent Directors (if applicable) for
“Qualified Opinion” from the CPA

Not applicable


XI. Penalty and rectification


                                                              Type of
                                                                                 Conclusion                             Index of
      Name                Type             Reasons        investigation and                       Disclosure date
                                                                                (if applicable)                        disclosure
                                                               penalty
Explanation on rectification
Particular about directors, supervisors, senior executives and shareholders with over 5% 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




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                                                     无锡威孚高科技集团股份有限公司 2012 年度报告全文


XII. Suspension and delisting after disclosure of annual report

Not applicable


XIII. Other material events

Nil


XIV. Significant events of the subsidiaries

Nil


XV. Corporate bond offering

Nil




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                                                                           无锡威孚高科技集团股份有限公司 2012 年度报告全文



            Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Shares
                                Before the Change             Increase/Decrease in the Change (+, -)              After the Change
                                                                        Capitaliz
                                            Proportion New shares Bonus ation of                                            Proport
                             Amount                                                   Others       Subtotal       Amount
                                               (%)       issued   shares public                                             ion (%)
                                                                         reserve
I. Restricted shares         71,708,575       12.64% 112,858,000                    -28,380,359 84,477,641 156,186,216 22.96%
2. State-owned
                             71,658,199       12.63% 36,017,600                     -28,363,800     7,653,800     79,311,999 11.66%
corporate    shares
4. Foreign shares                                      76,840,400                                  76,840,400    76,840,400 11.3%
Including: Foreign
                                                       76,840,400                                  76,840,400    76,840,400 11.3%
corporate shares
5. Senior executives’
                                   50,376      0.01%                                    -16,559        -16,559       33,817 0.01%
shares
II. Unrestricted shares     495,567,420       87.36%                                28,380,359 28,380,359 523,947,779 77.04%
1. RMB Ordinary shares 380,647,420             67.1%                                28,380,359 28,380,359 409,027,779 60.14%
2. Domestically listed
                            114,920,000       20.26%                                                             114,920,000 16.9%
foreign shares
III. Total shares           567,275,995         100% 112,858,000                                  112,858,000 680,133,995     100%
Reasons for share changed
On 21 January 2012, being approved by CSRC “Approval of Reply on Privately Offering of WEIFU HIGH-TECHNOLOGY
GROUP CO.,LTD” (ZJXK [2012] No.109), the Company offering no more than 112,858,000 new shares in total.

Approval of share changed
√Applicable □Not applicable
On 21 January 2012, being approved by CSRC “Approval of Reply on Privately Offering of WEIFU HIGH-TECHNOLOGY
GROUP CO.,LTD” (ZJXK [2012] No.109), the Company offering no more than 112,858,000 new shares in total.

Ownership transfer of share changed
The privately offering of the Company totally issue 112,858,000 shares to two objects Wuxi Industry Development Group Co., Ltd.
and ROBERT BOSCH GMBH (German Robert Bosch Co., Ltd.), the shares have completed registration and trusteeship procedures
in Shenzhen Branch of China Securities Depository and Clearing Corporation Limited on 17 February 2012. 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 (postpone for non-trading day).


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

Share capital of the Company increase to 680,133,995 shares from 567,275,995 shares after privately offering.
As at end of reporting period, EPS diluted to 1.34 yuan from 1.57 yuan due to the privately offering; net assets per share increase to
12.73 yuan from 10.23 yuan.
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
Nil




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                                                                               无锡威孚高科技集团股份有限公司 2012 年度报告全文


II. Security offering and listing

1. Previous security offering in latest three years at period-end

                                                                                                           Numbers
 Stock/derivative                        Offering price (or      Circulation                                                End of trading
                     Offering date                                                  Listing date         approved for
    securities                             interest rate)         number                                                        date
                                                                                                            trading
Stock
Privately offering 2012-02-07            25.395                    112,858,000 2012-02-29                   112,858,000
Convertible corporate bond, separably-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
GROUP CO.,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

(1) New 112,858,000 shares increased after privately offering, share capital of the Company increase to 680,133,995 shares currently
from original 567,275,995 shares before offering.
(2) After offering, net assets of the Company gains a sharply growth while asset-liability ratio declined correspondingly; quality of
the assets improve along with the solvency upgrade, which enhancing the development speed of the Company.


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
                                                                                                                                   Unit: Share
                                                                                               th
                                                              Total shareholders ended as the 5 trading day before
Total shareholders in reporting period              28,446                                                                            28693
                                                              annual report disclosed
                                         Particulars about shares held above 5% by shareholders

                                                      Total                                                             Number of share
                                      Proportion                             Amount of                   Amount of      pledged/frozen
                           Nature of              shareholders Changes in
Full name of Shareholders              of shares                               restrict                  un-restrict
                          shareholder            at the end of report period                                            State of
                                       held (%)                              shares held                 shares held               Amount
                                                  report period                                                          share
Wuxi Industry
                       State-owned
Development Group Co.,                             20%     136,039,599 36017600          79,311,999       56,727,600
                       corporate
Ltd
                            Foreign
ROBERT BOSCH GMBH                                  14%        95,227,600 76840400        76,840,400       18,387,200
                            corporate
China Construction Bank Domestic
-Fuguo Tianbo          non-state-o               2.83%       19,229,260                                  19,229,260
Innovation Theme Stock wned


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                                                                         无锡威孚高科技集团股份有限公司 2012 年度报告全文


Securities Investment     corporate
Fund
                          Foreign
GAOLING FUND,L.P.                           1.85%      12,555,715                                12,555,715
                          corporate
                       Domestic
CCB—Yinhua Core Value
                       non-state-o
Selected Securities                         1.56%      10,600,399                                10,600,399
                       wned
Investment Fund
                       corporate
China Construction Bank   Domestic
– China Advantage        non-state-o
                                            1.42%       9,681,020                                    9,681,020
Growth Stock Securities   wned
Investment Fund           corporate
DRAGON BILLION    Foreign
                                            1.37%       9,298,922                                    9,298,922
CHINA MASTER FUND corporate
GUOTAI JUNAN
                  Foreign
SECURITIES(HONGKO                           1.35%       9,165,855                                    9,165,855
                  corporate
NG) LIMITED
                          Domestic
ABC- Changsheng
                          non-state-o
Tongde Theme Growth                         1.29%       8,800,906                                    8,800,906
                          wned
Stock Fund
                          corporate
                          Domestic
BOCOM—Fullgoal
                          non-state-o
Tianyi Value Security                       1.16%       7,868,490                                    7,868,490
                          wned
Investment Fund
                          corporate
                                        On 21 January 2012, being approved by CSRC “Approval of Reply on Privately Offering
                                        of WEIFU HIGH-TECHNOLOGY GROUP CO.,LTD” (ZJXK [2012] No.109), the
                                        Company offering no more than 112,858,000 new shares in total. Among the shares,
                                        36017600 shares offering to substantial shareholder Wuxi Industry Development Group
Strategy investors or general corporate Co., Ltd while 76840400 shares offering to strategy investor ROBERT BOSCH GMBH;
comes to top 10 shareholdes by rights the shares have completed registration and trusteeship procedures in Shenzhen Branch of
issued (if applicable)                  China Securities Depository and Clearing Corporation Limited on 17 February 2012. 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 (postpone for
                                        non-trading day).

                                       Among the top ten shareholders, the Company knew there has no associated relationship
                                       between Wuxi Industry Development Croup Co., Ltd., the substantial shareholderr 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 and Fullgoal Tianyi Value Securities Investment Fund shares same fund
                                       manager – Fullgoal Fund Management Co., Ltd.
                                Particular about top ten shareholders with un-restrict shares held

                                                             Amount of un-restricted                    Type of shares
                   Shareholders’ name
                                                             shares held at year-end                 Type                Amount
Wuxi Industry Development Group Co., Ltd                                   56,727,600 RMB common shares                  56,727,600
China Construction Bank-Fuguo Tianbo Innovation
                                                                           19,229,260 RMB common shares                  19,229,260
Theme Stock Securities Investment Fund
ROBERT BOSCH GMBH                                                          18,387,200 Domestically foreign shares        18,387,200
GAOLING FUND,L.P.                                                          12,555,715 Domestically foreign shares        12,555,715
CCB—Yinhua Core Value Selected Securities Investment                      10,600,399 RMB common shares                  10,600,399


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                                                                         无锡威孚高科技集团股份有限公司 2012 年度报告全文


Fund
China Construction Bank – China Advantage Growth Stock
                                                                            9,681,020 RMB common shares                9,681,020
Securities Investment Fund
DRAGON BILLION CHINA MASTER FUND                                            9,298,922 Domestically foreign shares      9,298,922
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED                                   9,165,855 Domestically foreign shares      9,165,855
ABC- Changsheng Tongde Theme Growth Stock Fund                              8,800,906 RMB common shares                8,800,906
BOC—Fullgoal Tianyi Value Security Investment Fund                         7,868,490 RMB common shares                7,868,490
                                                           Among the top ten shareholders, the Company knew there has no
                                                           associated relationship between Wuxi Industry Development Croup
                                                           Co., Ltd., the substantial shareholderr of the Company, and other
Expiation on associated relationship or consistent actors shareholders; and they do not belong to the consistent actionist
within the top 10 un-restrict shareholders and between top regulated by the Management Measure of Information Disclosure on
10 un-restrict shareholders and top 10 shareholders        Change of Shareholding for Listed Company. Fullgoal Tianbo
                                                           Innovation Theme Stock Securities Investment Fund and Fullgoal
                                                           Tianyi Value Securities Investment Fund shares same fund manager –
                                                           Fullgoal Fund Management Co., Ltd.


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 Development Jiang                                     RMB
                                              1995-10-05 13600265-4                  project, investment and development of
Group Co., Ltd            Guoxiong                                  3,432,673,241.46
                                                                                     manufacturing and services and venture
                                                                                     capital in high-tech achievement, entrust
                                                                                     enterprise and management
Operation result, financial
status, cash flow and future Not applicable
development strategy ect.
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


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Operation result, financial status, cash flow and future
                                                         Not applicable
development strategy ect.
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 over 10% shares held
   Corporate      Legal rep./person in       Date       Organization      Register
                                                                                         Main business or management activity
  shareholders      charge of unit        established      code           capital
                                                                                     Development, manufacture and sales of
                                                                                     automotive equipment and engine equipment;
                                                                                     engaged in electro-technical, electronic
                                                                                     technology, machinery manufacturing and
ROBERT     Heiko Carrie,                                               EUR 1,200     optical system as well as produce iron, metal
                                         1886-11-15
BOSCH GMBH Bettina Holzwarth                                           million       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
                                                                                                                  Disclosure dated
Shareholder/conc                     Ratio of shares                       Ratio of shares
                  Shares holding                        Shares holding                       Initial disclosure      for end of
  erted action                      plans to increased                    actually increased
                 plans to increased                    actually increased                           date           shareholding
     person                                (%)                                   (%)
                                                                                                                     increased
Explanation on others




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                                                                         无锡威孚高科技集团股份有限公司 2012 年度报告全文



                  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
                                                                                              shares held shares held
                            Working                     Start dated of End date of held at                              held at
               Title                        Sex   Age                                            in this     in this
  Name                       status                      office term office term period-beg                           period-end
                                                                                                 period      period
                                                                                   in (Share)                          (Share)
                                                                                                (Share)     (Share)
Chen                     Currently
            Chairman                    M           45 2012-03-07     2015-03-06        3,169                             3,169
Xuejun                   in office
         Vice
Wang              Currently in
         Chairman                       M           46 2012-03-07     2015-03-06          521                               521
Xiaodong          office
         & GM
Rudolf      Vice     Currently in
                                        M           55 2012-03-07     2015-03-06
Maier       Chairman office
Ge                       Currently in
         Director                       M           58 2012-03-07     2015-03-06       25,468                            25,468
Songping                 office
Hua                      Currently in
            Director                    女          48 2012-03-07     2015-03-06
Wanrong                  office
Chen                     Currently in
            Director                    M           51 2012-03-07     2015-03-06
Yudong                   office
           Director,
           Deputy
           General
                         Currently in
Ou Jianbin Manager                      M           46 2012-03-07     2015-03-06
                         office
           and
           financing
           Charger
            Independe Currently in
Du Fangci                               M           68 2012-03-07     2015-03-06
            nt Director office
            Independe Currently in
Yu Xiaoli                               F           49 2012-03-07     2015-03-06
            nt Director office
            Independe Currently in
Xing Min                                M           58 2012-03-07     2015-03-06
            nt Director office
Zhang       Independe Currently in
                                        M           48 2012-03-07     2015-03-06
Hongfa      nt Director office
         Chairman
         of the
Shi                 Currently in
         Supervisor                     M           50 2012-03-07     2015-03-06        1,782                             1,782
Xingyuan            office
         y
         Committee
Gao                      Currently in
            Supervisor                  M           58 2012-03-07     2015-03-06       10,297                            10,297
Guoyuan                  office
                         Currently in
Liu Jinjun Supervisor                   M           37 2012-03-07     2015-03-06
                         office
Miu         Deputy
                         Currently in   M           49 2012-03-07     2015-03-06
Yuming      GM

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                                                                            无锡威孚高科技集团股份有限公司 2012 年度报告全文


                        office
Wang        Deputy      Currently in
                                        M               57 2012-03-07   2015-03-06
Yawei       GM          office
Xu          Deputy      Currently in
                                        M               41 2012-03-07   2015-03-06          2,000                      2,000
Yunfeng     GM          office
Zhou        Secretary   Currently in
                                        M               49 2012-03-07   2015-03-06          2,377                      2,377
Weixing     of Board    office
Wang      Former
                        Office leaving M                47 2012-03-07   2012-05-23        12,673
Weiliang  Director
          Former
Ma Huilan Independe     Office leaving F                61 2008-06-12   2012-03-07
          nt Director
          Former
          Chairman
Han       of the
                        Office leaving M                61 2008-06-12   2012-03-07        11,405
Jiangming Supervisor
          y
          Committee
Yang      Former
                        Office leaving M                60 2008-06-12   2012-03-07
Weiliang Supervisor
          Former
Sun
          Deputy        Office leaving F                58 2008-06-12   2012-03-07
Qiangxian
          GM
Total            --              --         --     --           --            --          69,692              0   0   45,614


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 economists. 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 Gorup, 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 chariman 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 techenology research of German Bosch Diesel System and
deputy Chairman of 7th session of the Board.
Mr. Ou Jianbin, born in June 1966, a senior collegel 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, sbstantial 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,
sbstantial 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

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successively as director of investment development dept. of Industry Group, substantial shareholder of the
Company; now she serves as director of fiancnial 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., Indepenent Director
of Yinlun, Indepenent 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
Comnustion Engine Industry Association (CICEIA) 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 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 chariman 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, graduate from University, a MSIE and engineer. He worked in the
Company in August 1995. He has served successively as Manager of H&R administrative and technology sales
manager of Weifu Auto Diesel. Now he serves as director of H&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 Boshc 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

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                                                                              无锡威孚高科技集团股份有限公司 2012 年度报告全文


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 in shareholder’s unit
√Applicable □Not applicable

                                                                                                      End date Weather receiving
                   Name of shareholder’s                                              Start dated of
Name                                      Position                                                    of office remuneration from
                          units                                                         office term
                                                                                                        term    shareholder’s units
                 ROBERT BOSCH               Executive vice president of technology
Rudolf Maier                                                                       2011-01-01                    Yes
                 GMBH                       research of Diesel System
                 Wuxi Industry
Ge Songping      Development Group Co., Vice researchor                               2011-12-01                 Yes
                 Ltd
                 Wuxi Industry
Hua Wanrong      Development Group Co., Director of financial management dept. 2011-12-01                        Yes
                 Ltd
                 Bosch (China)
Chen Yudong                                 President                                 2011-01-01                 Yes
                 Investment Ltd.
                 Bosch Automobile Diesel
Miu Yuming                               Deputy GM                                    2012-03-01                 Yes
                 System Co., Ltd
Post-holding in other unit
√Applicable □Not applicable


                                                                                 Start dated of    End date of   Weather     receiving
Name                      Name of other units            Position
                                                                                  office term      office term   remuneration from
                                                                                                                 other units
Du Fangci        CAAM                                    Consultant              2012-04-01                      Yes
                 Zhejiang University Power
Yu Xiaoli        Machinery and Vehicular                 Director                2000-01-01                      Yes
                 Engineering Institute
Yu Xiaoli        Zhejiang Yinlun Machinery Co., Ltd. Independent director        2011-07-21       2014-07-21     Yes
                 Zhejiang Wanliyang Transmission
Yu Xiaoli                                                Independent director    2011-09-01       2014-08-31     Yes
                 Co., Ltd.
                 Zhejiang Bozong Automobile
Yu Xiaoli                                                Chairman                2008-04-01                      Yes
                 Technology Co., Ltd.
                                                         Vice chairman and
Xing Min         CICEIA                                                          2008-08-01                      Yes
                                                         secretary
                 Jiangsu Institute of Certified Public   Vice secretary and
Zhang Hongfa                                                                     1998-06-01                      Yes
                 Accountants                             standing director
Zhang Hongfa Jiangsu Hongbao Hardware Co., Ltd. Independent director             2010-12-10       2013-12-09     Yes
Zhang Hongfa Wiscom System Co., Ltd.                     Independent director    2010-04-26       2013-04-25     Yes



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                                                                          无锡威孚高科技集团股份有限公司 2012 年度报告全文


Explanation on
post-holding in The aforesaid are the independent directors of the Company
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
                                                                                        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
                                                                                       (yuan)        unit (yuan)      (yuan)
Chen Xuejun     Chairman                  M        45       Currently in office        580,000.00                    580,000.00
Wang
                Vice Chairman, GM         M        46       Currently in office        580,000.00                    580,000.00
Xiaodong
Rudolf Maier    Vice Chairman             M        55       Currently in office
Ge Songping     Director                  M        58       Currently in office
Hua Wanrong     Director                  F        48       Currently in office
Chen Yudong     Director                  M        51       Currently in office
                Director, standing
Ou Jianbin      vice GM and person        M        46       Currently in office        480,000.00                    480,000.00
                in charge of finance
                Independent
Du Fangci                                 M        68       Currently in office         70,000.00                     70,000.00
                director
                Independent
Yu Xiaoli                                 F        49       Currently in office         70,000.00                     70,000.00
                director
                Independent
Xing Min                                  M        58       Currently in office         70,000.00                     70,000.00
                director
                Independent
Zhang Hongfa                              M        48       Currently in office         70,000.00                     70,000.00
                director
                Chariman of
Shi Xingyuan    supervisory               M        50       Currently in office        480,000.00                    480,000.00
                committee
Gao Guoyuan     Supervisor                M        58       Currently in office        480,000.00                    480,000.00
Liu Jinjun      Supervisor                M        37       Currently in office        300,000.00                    300,000.00
Miu Yuming      Deputy GM                 M        49       Currently in office        480,000.00                    480,000.00
Wang Yawei      Deputy GM                 M        57       Currently in office        480,000.00                    480,000.00


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                                                                              无锡威孚高科技集团股份有限公司 2012 年度报告全文


Xu Yunfeng       Deputy GM                    M        41       Currently in office       480,000.00                        480,000.00
                 Secretary of the
Zhou Weixing                                  M        49       Currently in office       280,000.00                        280,000.00
                 Board
Wang Weiliang Former director                 M        47          Leave office           140,000.00                        140,000.00
                 Former independent
Ma Huilan                                     F        61          Leave office
                 director
                 Former chariman of
Han Jiangmin     supervisory                  M        61          Leave office           235,000.00                        235,000.00
                 committee

Yang Weiliang Former supervisor               M        60          Leave office           140,000.00                        140,000.00

Sun Qingxian     Former deputy GM             F        58          Leave office           140,000.00                        140,000.00

     Total                 --                 --        --              --               5,555,000.00             0.00    5,555,000.00

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

                                                                Office leaving, and serves no senior executive of the Company any
Wang Weiliang      Director       Demission        2012-05-23
                                                                more
                   Independen Demission                         Office leaving while general election, serves no senior executive of the
Ma Huilan                                          2012-03-07
                   t director                                   Company any more
                                  Demission                     Office leaving while general election, serves no senior executive of the
Han Jiangming      Supervisor                      2012-03-07
                                                                Company any more
                                                                Office leaving while general election, serves no senior executive of the
Yang Weiliang      Supervisor Demission            2012-03-07
                                                                Company any more
                                  Demission                     Office leaving while general election, serves no senior executive of the
Sun Qingxian       Deputy GM                       2012-03-07
                                                                Company any more


V. Changes of core technology team or key technicians in reporting period (not including
directors, supervisors and senior executives)

In reporting period, personnels, core technology team or key technicians (not including directors, supervisors and
senior executives) who affectes a lot in core competition of the Company has no changes and shows no infuence
on operation of the Company.

VI. Particulars of workforce

1. Ended as 31 December 2012, the Company owes 5,179 person on-post while 365 person leaved, the Company
has no retired employees to bear the cost
  Composition:




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                  Staff composition                                    Education composition




 2. Remuneration policy and training program of employees
(1)remuneration policy:the Company established sound Performance Management System, Remuneration
Management System and Work Attendance Management System to strengthen personnel incentives and
examinations. It improved the labor force balance test with “enhancement of efficiency” as the core, established
performance-related appraisal system based on different levels of performance, and promoted implementation of
performance and remuneration systems across the Company.
(2)Staff training: to satisfy needs for production and operation, the Company organized different types of internal
employee training, which met the requirements of positions and employees themselves. The trainings were for all
employees.
 3. As at 31 December 2012, the labor force dispatched by the Company was 1893, with expenses of RMB80.96
million.




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                          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 guidances in strict accordance to the requirements of the Company Law, Securities Law, Listing
Rules of Shenzhen Stock Exchange as well as Guidances 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 astrict 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 shareholders don’t intervene in the Company’s decisions and operating activities, whether directly or
indirectly, without content from general meeting, and don’t occupy the Company’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 informations 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 perform 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, 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 establishs internal control system in the headquarter and certain important subsidiaries. Aiming to

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improve the management, the Copmany optimized its working procedures, improved internal control system, and
identified and controled operation risks. During the reporting period, the Company prepared the Working Plan for
Implementing Internal Control Standards in 2012. for details, please refer to the announcement disclosed at
website http://www.cninfo.com.cn on 31 March 2012.
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, establishement and implementation of insider
information registration management system
The Company approved its Insider Information and Insider Management System on 14 February 2012, the details
of which was disclosed at the website http://www.cninfo.com.cn.
II. In the report period, the Company held annual shareholders’ general meeting and
extraordinary shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
 Session of                                                                                                Date of      Index of
              Date                         Name of meeting motion                            Situation
  meeting                                                                                                 disclosure   disclosure
                     1. Report from the Board for year of 2011;
                     2. Report from Supervisory Committee for year of 2011;
                      3. Annual Report of 2011 and Summary;                                                  ”Resolution
                   4. Financial Result Rerpot for year of 2011;                                              Notice of Annual
Annual
                                                                                      All have               Shareholders
Shareholders       5. Profit Distribution Plan of 2011;
             2012-                                                                    been                   General Meeting
General            6. Prediction of Total daily Related transaction for year of 2012;             2012-05-24
             05-23                                                                    deliberated            of 2011”(No.:
Meeting of         7. Re-engagement of auditing firm for year of 2012 and its and passed                     2012-032)
2011               remuneration;                                                                             published on
                   8. Engagement of audit firms for internal control of 2012;                                Juchao Website
                   9. Allowance of independent directors;
                     10. Changes of Directors of the Company


2. Extraordinary shareholders’ general meeting in the report period

 Session of                                                                                                Date of      Index of
              Date                         Name of meeting motion                             Situation
  meeting                                                                                                 disclosure   disclosure
                     1. Amemdment of Article of Association;
                     2. Counter Guarantee for Stock Jointly company;
                     3. General Election of the Board for non independent director ;
                     3.1 Election of non independent director of 7th session of the
                     Board—Mr. Wang Weiliang;                                                                     ”Resolution
                                                                                                                   Notice of First
First               3.2 Election of non independent director of 7th session            of the
                                                                                              All have             Extraordinary
Extraordinary       Board—Mr. Chen Xuejun;
                                                                                              been                 Shareholders
Shareholders 2012- 3.3 Election of non independent director of 7th session             of the deliberate 2012-03-0 General Meeting
General       03-07 Board—Mr. Wang Xiaodong;                                                            8
                                                                                              d and                of 2012”(No.:
Meeting of          3.4 Election of non independent director of 7th session            of the passed               2012-014)
2012                Board—Mr. Ge Songping;                                                                        published on
                     3.5 Election of non independent director of 7th session           of the                      Juchao Website
                     Board—Ms. Hua Wanrong;
                     3.6 Election of non independent director of 7th session of the
                     Board—Mr. Rudolf Maier;
                     3.7 Election of non independent director of 7th session of the


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                      Board—Mr. Chen Yudong;
                      4. General Election of the Board for independent directo;
                      4.1 Election of independent director of 7th session of the Board—Mr.
                      Du Fangci;
                      4.2 Election of independent director of 7th session of the Board—Ms.
                      Yu Xiaoli;
                      4.3 Election of independent director of 7th session of the Board—Mr.
                      Xing Min;
                      4.4 Election of independent director of 7th session of the Board—Mr.
                      Zhang Hongfa;
                      5. General Election of the Supervisory Committee;
                      5.1 Election of non representative of employee supervisor—Mr. Gao
                      Guoyuan
                                                                                                                    Resolution
                                                                                                                    Notice of
Second                                                                                                              Second
                                                                                               All have
Extraordinary                                                                                                       Extraordinary
                                                                                               been
Shareholders 2012-                                                                                        2012-08-2 Shareholders
                    1. Amendment of “Article of Association”                                 deliberate
General       08-27                                                                                       8         General Meeting
                                                                                               d and
Meeting of                                                                                                          of 2012”(No.:
                                                                                               passed
2012                                                                                                                2012-040)
                                                                                                                    published on
                                                                                                                    Juchao Website

III. Responsibility performance of independent directors in report period
1. The attending of independent directors to Board meetings and shareholders’ general meeting
                                                The attending of independent directors
   Name of   Times of Board meeting                         Times of          Times of                    Whether absent the Meeting
                                    Times of                                                 Times of
 independent  supposed to attend in                      attending by         entrusted                   for the second time in a row
                                    Presence                                                 Absence
   director     the report period                       communication         presence                                or not
Du Fangci                              11           5                    6                               No
Yu Xiaoli                              11           5                    6                               No
Xing Min                                 9          4                    5                               No
Zhang Hongfa                             9          4                    5                               No
Ma Huilan                                2          1                    1                               No
Times attending shareholders’ general
                                                                                                                                      3
meeting from independent directors
Explanation of absent the Board Meeting for the second time in a row
Ma Huilan is the independent director of the 6th session of the Board, she leaved the post while general election for 7th session of the
Board dated 7 March 2012


2. Objection for relevant events from independent directors

Whether independent directors come up with objection about company’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


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Whether the opinions from independent directors have been adopted or not
√Yes □ No

Independent directors’ 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 informations 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

Performance of vary committee of the Board in reproting period as:
1. Three meetings of Audit committee of the Board, deliberated the follwed: “Fianncial Result Report of 2011”,
“Annual Report of 2011 and its Summary”, “Conclusion Report of auditing for year of 2011”, “Engagement of
audit institute for financial report of 2012”, “Engagement of audit institute for internal control of the Compay of
2012” and “Semi-Annual Report of 2012 and its Summary”;
2. One meeting of remuneration and apprisal committee of the Board, deliberate “Remuneration evaluation and
payment for senior executive of 2011”;
3. Two meetings of nomination committee of the Board, deliberated the “Approval opinion of engagement of
senior executives” and “Changes of Directors of the Board”;
4. One meeting of strategy committee of the Board, deliberate “Opertaion target for year of 2012”

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


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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.




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                                          Section IX. Internal control
I. Construction of internal control
The internal control leader team chaired by chairman of the board is the leader organ responsible for internal
control evaluation, and the internal control implementation team charied by standing deputy general manager is
responsible for preparation, organization and implementation of internal control evaluation working plan, and
summarizes the evaluation results and prepares self-evaluation report. The board authorises the audit department
or other department with the same function to take charge of the specific implementation of internal control
evaluation. The Company forms internal control evaluation working team to make evaluation on the high risk
fields and units within the evaluation scope. the internal control evaluation is conducted based on principle of
comprehensiveness, importance, objectiveness and risk-orient. The detailed works are conducted based on
principles of reinforced leadship, careful organization, strict evaluation and improved reforms. The Company
engaged an external professional consultant Union Strength to provide assistance in internal control evaluation
works, and Jiangsu Gongzheng Tianye Certified Public Accountants to review on design and operational
effectiveness of the internal control system of the Company.

II. Statement of the Board on responsibility of internal control
The board and its entire members guarantee that there is no false recording, misleading statement or material
omission in contents of this report, and take joint and severe responsibility for the truthfulness, accuracy and
completeness of the contents. To establish sound internal control system and effectively implement the same is the
responsibility of the board; the supervisory committee supervises the establishement and implementation of such
internal control system; managers are responsible for normal operation of internal control system. The target of
internal control is to promise legal operation, asset safety, truthful, accurate and complete financial reports and
related information, enhancement of operation efficiency and effects, as well as realization of development
strategy. Due to the limited nature of internal control, the Company thus only provided reasonable promises for
the aforesaid targets.

III. Bases for construction of financial report internal control
Bases for construction of financial report internal control are the Basic Internal Control Standards for Enterprise
and Internal Control Mating Guidance jointly issued by the ministry of finance and other four ministries.

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.
Date of self-evaluation report of
                                       2013-03-28
internal control disclosed (full-text)
Index of self-evaluation report of    ”Self-evaluation report of internal control”, more details found in Juchao website
internal control disclosed(full-text) (www.cninfo.com.cn) approinted 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”, Weifu
High-Technology Co., Ltd., in all major aspects, keeps an efficiency of internal control of financial report dated 31 December 2012
Disclosure date of audit report of
                                      2013-03-28
internal control (full-text)
Index of audit report of internal     ”Audit report of internal control for year of 2012”, more details found in Juchao website
control (full-text)                   (www.cninfo.com.cn) approinted by Shenzhen Stock Exchange




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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 report disclosure” 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.




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                                       Section X. Financial Report

I. Audit report

Type of audit opinion                        Standard unqualified opinion

Signing date of audit report                 2013-03-26

Name of audit institute                      Jiangsu Gongzheng Tianye Certified Public Accountants Co., Ltd.

Document serial of audit report               SuGong W[2013]No.: A272

                                                  Auditor’s Report

To all shareholders of Weifu High-Technology Group Co., Ltd.:

We have audited the Companying consolidated and parent Company’s financial statements of Weifu
High-Technology Group Co., Ltd (“Weifu High-Tech”), including balance sheet of 31 December 2012, and profit
statement, and cash flow statement, and statement on changes of shareholders’ 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, Weifu Hi-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 parent company’s as of December 31, 2012, and its operation results and
cash flows for the year ended.

                   Jiangsu Gongzheng Tianye CPA Co., Ltd.                   Chinese CPA      Bo Lingjing
                        Wuxi China                                          Chinese CPA      Liu Darong
                                                                            26 March 2013




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 (II) Fiancnial statement

Unit in note of financial statement refers to CNY: RMB (Yuan)


1. Consolidated balance sheet

Prepared by Weifu High-Technology Group Co., Ltd
                                                                                                         Unit: RMB

                                 Item                           Balance at period-end      Balance at period-begin
Current assets:
     Monetary fund                                                      2,600,714,219.36              855,053,599.38
     Settlement provisions
     Capital lent
     Transaction finance asset
     Notes receivable                                                     898,720,248.22            1,227,018,757.27
     Account receivable                                                 1,036,392,701.40            1,167,123,155.04
     Accounts paid in advance                                             143,500,001.15              183,407,859.04
     Insurance receivable
     Reinsurance receivables
     Contract reserve of reinsurance receivable
     Interest receivable                                                   37,619,858.83
     Dividend receivable                                                  107,616,777.91
     Other receivables                                                     10,147,631.52               11,983,410.88
     Purchase restituted finance asset
     Inventories                                                          759,505,087.10              883,582,090.78
     Non-current asset due within one year
     Other current assets                                                 500,118,243.81               10,235,025.21
Total current assets                                                    6,094,334,769.30            4,338,403,897.60
Non-current assets:
  Granted entrust loans and advances
     Financial assets available for sale                                  265,689,600.00
     Hold-to-maturity investment                                          649,000,000.00
     Long-term account receivable
     Long-term equity investment                                        2,192,275,239.86            1,786,481,972.85
     Investment real estate                                                 3,881,346.30                4,352,211.86
     Fixed assets                                                       1,404,806,234.18            1,357,509,509.59
     Construction in process                                               65,649,548.48               98,288,407.69
     Engineering material
     Disposal of fixed asset
     Productive biological assets
     Oil and gas asset
     Intangible assets                                                    280,305,865.12              249,921,186.58


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     Expense on Research and Development
     Goodwill                                               1,784,086.79             1,784,086.79
 Long-term expenses to be apportioned                     12,227,687.75              9,144,280.20
     Deferred income tax asset                            86,019,554.56             83,331,883.03
     Other non-current asset
Total non-current asset                                 4,961,639,163.04         3,590,813,538.59
Total assets                                           11,055,973,932.34         7,929,217,436.19
Current liabilities:
     Short-term loans                                     70,000,000.00            495,000,000.00
     Loan from central bank
     Absorbing deposit and interbank deposit
     Capital borrowed
     Transaction financial liabilities
     Notes payable                                       278,184,200.63            164,301,719.94
     Accounts payable                                   1,133,511,331.25         1,297,893,239.74
     Accounts received in advance                         52,622,311.97             55,289,941.25
     Selling financial asset of repurchase
     Commission charge and commission payable
     Wage payable                                        276,292,169.70            278,771,987.97
     Taxes payable                                        27,471,710.92             77,737,123.74
     Interest payable                                        220,500.00               930,000.00
     Dividend payable                                                                3,444,762.15
     Other accounts payable                               71,364,242.12             83,991,571.43
     Reinsurance payables
     Insurance contract reserve
     Security trading of agency
     Security sales of agency
     Non-current liabilities due within 1 year                                       3,000,000.00
     Other current liabilities                            22,102,265.27             34,608,609.47
Total current liabilities                               1,931,768,731.86         2,494,968,955.69
Non-current liabilities:
     Long-term loans
     Bonds payable
     Long-term account payable                            16,790,909.00             18,840,000.00
     Special accounts payable
     Projected liabilities
     Deferred income tax liabilities                      12,551,182.40              2,689,975.40
     Other non-current liabilities                       133,879,108.31             72,330,000.00
Total non-current liabilities                            163,221,199.71             93,859,975.40
Total liabilities                                       2,094,989,931.57         2,588,828,931.09
Owners’ equity(or Shareholders’ equity):
  Paid-in capital( or share capital)                     680,133,995.00            567,275,995.00


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     Capital public reserve                                             3,689,694,029.52              895,918,416.59
     Less: Inventory shares
     Reasonable reserve
     Surplus public reserve                                               340,066,997.50              283,637,997.50
     Provision of general risk
     Retained profit                                                    3,946,085,733.22            3,317,227,992.26
     Balance difference of foreign currency translation
Total owner’s equity attributable to parent Company                    8,655,980,755.24            5,064,060,401.35
Minority interests                                                        305,003,245.53              276,328,103.75
Total owner’s equity( or shareholders equity)                          8,960,984,000.77            5,340,388,505.10
Total liabilities and owner’s equity( or shareholders equity)         11,055,973,932.34            7,929,217,436.19


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
                                                                                                          Unit: RMB

                                  Item                           Balance at period-end      Balance at period-begin
Current assets:
     Monetary fund                                                       1,566,564,504.46             189,135,416.49
     Transaction finance asset
     Notes receivable                                                      316,494,407.33             440,248,528.54
     Account receivable                                                    654,141,638.40             822,357,590.99
     Accounts paid in advance                                               58,571,931.67              58,227,907.25
     Interest receivable                                                    31,963,747.72
     Dividend receivable                                                   102,868,978.88
     Other receivables                                                      23,509,170.62             167,045,153.49
     Inventory                                                             204,214,205.28             296,385,165.44
     Non-current asset due within one year
     Other current assets                                                  490,000,000.00
Total current assets                                                     3,448,328,584.36           1,973,399,762.20
Non-current assets:
     Financial assets available for sale                                   265,689,600.00
     Hold-to-maturity investment                                           649,000,000.00
     Long-term account receivable
     Long-term equity investment                                         3,174,930,767.12           2,576,168,955.22



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     Investment real estate
     Fixed assets                                         663,822,135.66           689,680,279.76
     Construction in process                               36,037,172.50            56,239,272.06
     Engineering material
     Disposal of fixed asset
     Productive biological assets
     Oil and gas asset
     Intangible assets                                    183,908,044.23           187,843,427.92
     Expense on Research and Development
     Goodwill
 Long-term expenses to be apportioned
     Deferred income tax asset                             49,794,919.70            47,881,534.77
     Other non-current asset
Total non-current asset                                 5,023,182,639.21         3,557,813,469.73
Total assets                                            8,471,511,223.57         5,531,213,231.93
Current liabilities:
     Short-term loans                                                              465,000,000.00
     Transaction financial liabilities
     Notes payable                                         96,780,000.00            85,000,000.00
     Accounts payable                                     524,096,818.13           632,112,594.66
     Accounts received in advance                           7,612,539.20             8,150,899.35
     Wage payable                                         180,177,025.37           175,803,158.72
     Taxes payable                                         21,422,094.21            25,748,688.27
     Interest payable                                                                 780,000.00
     Dividend payable
     Other accounts payable                                62,293,809.89            69,856,690.02
     Non-current liabilities due within 1 year
     Other current liabilities
Total current liabilities                                 892,382,286.80         1,462,452,031.02
Non-current liabilities:
     Long-term loans
     Bonds payable
     Long-term account payable
     Special accounts payable
     Projected liabilities
     Deferred income tax liabilities                        9,972,240.00
     Other non-current liabilities                        115,759,108.31            56,830,000.00
Total non-current liabilities                             125,731,348.31            56,830,000.00
Total liabilities                                       1,018,113,635.11         1,519,282,031.02
Owners’ equity(or Shareholders’ equity):
  Paid-in capital( or share capital)                      680,133,995.00           567,275,995.00
     Capital public reserve                             3,717,757,419.50           923,981,806.57


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     Less: Inventory shares
     Reasonable reserve
     Surplus public reserve                                                    340,066,997.50            283,637,997.50
     Provision of general risk
     Retained profit                                                         2,715,439,176.46           2,237,035,401.84
     Balance difference of foreign currency translation
Total owner’s equity( or shareholders equity)                               7,453,397,588.46           4,011,931,200.91
Total liabilities and owner’s equity( or shareholders equity)               8,471,511,223.57           5,531,213,231.93
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
                                                                                                             Unit: RMB

                                   Item                              Amount in this period      Amount in last period
I. Total operating income                                                    5,015,283,418.71           5,898,113,089.49
Including: Operating income                                                  5,015,283,418.71           5,898,113,089.49
             Interest income
     Insurance gained
     Commission charge and commission income
II. Total operating cost                                                     4,386,118,820.24           5,035,288,701.55
Including: Operating cost                                                    3,773,477,621.24           4,314,627,953.07
     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                                                   31,832,916.09              33,003,660.27
     Sales expenses                                                            190,643,487.97            226,887,211.67
     Administration expenses                                                   444,544,043.03            427,945,464.77
     Financial expenses                                                        -75,494,945.74              26,348,164.48
     Losses of devaluation of asset                                             21,115,697.65               6,476,247.29
     Add: Changing income of fair value(Loss is listed with “-”)
     Investment income (Loss is listed with “-”)                             396,219,312.90            497,941,948.54
     Including: Investment income on affiliated Company and joint
                                                                               368,812,771.97            497,916,948.54
venture
          Exchange income (Loss is listed with “-”)
III. Operating profit   (Loss is listed with “-”)                          1,025,383,911.37           1,360,766,336.48
     Add: Non-operating income                                                  20,505,678.63              43,504,340.10



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     Less: Non-operating expense                                                         7,872,719.89                   7,464,890.23
     Including: Disposal loss of non-current asset                                       1,364,127.23                    527,580.86
IV. Total Profit (Loss is listed with “-”)                                      1,038,016,870.11                1,396,805,786.35
     Less: Income tax                                                               103,779,577.90                 141,294,928.46
V. Net profit (Net loss is listed with “-”)                                       934,237,292.21                1,255,510,857.89
    Including: net profit realized for merged party before
combination
    Net profit attributable to owner’s equity of parent Company                    889,326,939.46                1,204,617,075.56
 Minority shareholders’ gains and losses                                               44,910,352.75                50,893,782.33
VI. Earnings per share                                                             --                              --
i. Basic earnings per share                                                                      1.34                          2.12
ii. Diluted earnings per share                                                                   1.34                          2.12
VII. Other consolidated income                                                          56,509,360.00
VIII. Total consolidated income                                                     990,746,652.21                1,255,510,857.89
  Total consolidated income attributable to owners of parent
                                                                                    945,836,299.46                1,204,617,075.56
Company
     Total consolidated income attributable to minority shareholders                    44,910,352.75                50,893,782.33
For combination under same control in this period, net profit realized for merged party before combination was : RMB
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
                                                                                                                         Unit: RMB

                                           Item                                   Amount in this period      Amount in last period
I. Opration income                                                                        2,132,088,989.17        2,788,219,421.85
  Less: Opration cost                                                                     1,782,615,888.55        2,212,560,781.97
     Operating tax and extras                                                                11,198,659.30              8,863,173.41
     Sales expenses                                                                         100,733,250.93         123,385,639.56
     Administration expenses                                                                175,914,711.14         164,282,347.00
     Financial expenses                                                                     -74,305,747.48           13,352,081.65
     Losses of devaluation of asset                                                           6,802,374.73              1,953,321.23
     Add: Changing income of fair value(Loss is listed with “-”)
     Investment income (Loss is listed with “-”)                                          630,849,457.36         753,513,412.15
        Including: Investment income on affiliated Company and joint venture                324,586,557.36         442,582,074.71
II. Operating profit    (Loss is listed with “-”)                                         759,979,309.36        1,017,335,489.18
     Add: Non-operating income                                                                9,925,274.63           33,522,956.65
     Less: Non-operating expense                                                              3,291,317.72              3,021,812.21
     Including: Disposal loss of non-current asset                                              618,130.74                   953.44
III. Total Profit (Loss is listed with “-”)                                               766,613,266.27        1,047,836,633.62
     Less: Income tax                                                                        27,740,293.15           47,799,378.36



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IV. Net profit (Net loss is listed with “-”)                                           738,872,973.12         1,000,037,255.26
V. Earnings per share                                                                      --                       --
i. Basic earnings per share                                                                         1.12                    1.76
ii. Diluted earnings per share                                                                      1.12                    1.76
VI. Other consolidated income                                                             56,509,360.00
VII. Total consolidated income                                                           795,382,333.12         1,000,037,255.26
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
                                                                                                                     Unit: RMB

                                           Item                                   Amount in this period    Amount in last period
I. Cash flows arising from operating activities:
     Cash received from selling commodities and providing labor services               6,257,141,260.17         6,179,261,861.00
     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                                                           44,379,611.51            42,845,986.04
     Other cash received concerning operating activities                                 141,039,458.18           114,351,139.35
       Subtotal of cash inflow arising from operating activities                       6,442,560,329.86         6,336,458,986.39
     Cash paid for purchasing commodities and receiving labor service                  3,903,794,051.95         4,537,241,612.23
     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                                                  542,762,958.26          490,323,372.96
     Taxes paid                                                                          451,789,302.20          540,546,746.70
     Other cash paid concerning operating activities                                     378,454,798.99          442,078,069.43
     Subtotal of cash outflow arising from operating activities                        5,276,801,111.40         6,010,189,801.32
     Net cash flows arising from operating activities                                  1,165,759,218.46          326,269,185.07
II. Cash flows arising from investing activities:
     Cash received from recovering investment                                              9,291,900.00


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     Cash received from investment income                                                  235,527,376.75         597,910,850.97
     Net cash received from disposal of fixed, intangible and other long-term
                                                                                            14,315,716.80           12,609,512.82
assets
     Net cash received from disposal of subsidiaries and other units
     Other cash received concerning investing activities
     Subtotal of cash inflow from investing activities                                     259,134,993.55         610,520,363.79
     Cash paid for purchasing fixed, intangible and other long-term assets                 256,150,809.13         552,572,233.28
     Cash paid for investment                                                            1,660,673,000.00           21,211,563.49
     Net increase of mortgaged loans
     Net cash received from subsidiaries and other units
     Other cash paid concerning investing activities
     Subtotal of cash outflow from investing activities                                  1,916,823,809.13         573,783,796.77
     Net cash flows arising from investing activities                                   -1,657,688,815.58           36,736,567.02
III. Cash flows arising from financing activities:
     Cash received from absorbing investment                                             2,862,720,552.93            9,954,090.00
     Including: Cash received from absorbing minority shareholders’ investment
                                                                                            12,596,300.00            9,954,090.00
by subsidiaries
     Cash received from loans                                                              646,000,000.00        1,101,480,514.61
     Cash received from issuing bonds
     Other cash received concerning financing activities                                     8,404,657.07
       Subtotal of cash inflow from financing activities                                 3,517,125,210.00        1,111,434,604.61
     Cash paid for settling debts                                                        1,074,000,000.00         876,480,514.61
     Cash paid for dividend and profit distributing or interest paying                     255,426,930.95         317,400,862.44
     Including: Dividend and profit of minority shareholder paid by subsidiaries            32,276,273.12           42,771,255.10
     Other cash paid concerning financing activities                                         8,743,748.07
     Subtotal of cash outflow from financing activities                                  1,338,170,679.02        1,193,881,377.05
     Net cash flows arising from financing activities                                    2,178,954,530.98          -82,446,772.44
IV. Influence on cash due to fluctuation in exchange rate
V. Net increase of cash and cash equivalents                                             1,687,024,933.86         280,558,979.65
Add: Balance of cash and cash equivalents at the period -begin                             745,778,764.22         465,219,784.57
VI. Balance of cash and cash equivalents at the period -end                              2,432,803,698.08         745,778,764.22
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
                                                                                                                      Unit: RMB

                                        Item                                        Amount in this period   Amount in last period
I. Cash flows arising from operating activities:
     Cash received from selling commodities and providing labor services                 2,778,522,440.94        2,835,762,966.41
     Write-back of tax received



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     Other cash received concerning operating activities                                   270,278,087.12       85,541,273.42
      Subtotal of cash inflow arising from operating activities                          3,048,800,528.06    2,921,304,239.83
     Cash paid for purchasing commodities and receiving labor service                    1,881,854,176.67    2,636,686,703.84
     Cash paid to/for staff and workers                                                    207,786,568.53      179,874,189.59
     Taxes paid                                                                            135,099,550.27      174,390,851.86
     Other cash paid concerning operating activities                                       161,194,834.36      251,643,819.28
     Subtotal of cash outflow arising from operating activities                          2,385,935,129.83    3,242,595,564.57
     Net cash flows arising from operating activities                                      662,865,398.23     -321,291,324.74
II. Cash flows arising from investing activities:
     Cash received from recovering investment                                                1,340,000.00
     Cash received from investment income                                                  515,364,899.46      900,735,529.77
     Net cash received from disposal of fixed, intangible and other long-term
                                                                                             4,045,574.34        9,764,638.07
assets
     Net cash received from disposal of subsidiaries and other units
     Other cash received concerning investing activities
     Subtotal of cash inflow from investing activities                                     520,750,473.80      910,500,167.84
     Cash paid for purchasing fixed, intangible and other long-term assets                  64,864,314.72      314,127,091.63
     Cash paid for investment                                                            1,890,673,000.00      179,018,800.00
     Net cash received from subsidiaries and other units
     Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities                                       1,955,537,314.72      493,145,891.63
     Net cash flows arising from investing activities                                   -1,434,786,840.92      417,354,276.21
III. Cash flows arising from financing activities:
     Cash received from absorbing investment                                             2,850,124,252.93
     Cash received from loans                                                              570,000,000.00    1,041,480,514.61
     Cash received from issuing bonds
     Other cash received concerning financing activities                                     8,404,657.07
     Subtotal of cash inflow from financing activities                                   3,428,528,910.00    1,041,480,514.61
     Cash paid for settling debts                                                        1,035,000,000.00      816,480,514.61
     Cash paid for dividend and profit distributing or interest paying                     220,773,699.76      274,096,700.68
     Other cash paid concerning financing activities                                         8,404,657.07
     Subtotal of cash outflow from financing activities                                  1,264,178,356.83    1,090,577,215.29
      Net cash flows arising from financing activities                                   2,164,350,553.17      -49,096,700.68
IV. Influence on cash due to fluctuation in exchange rate
V. Net increase of cash and cash equivalents                                             1,392,429,110.48       46,966,250.79
Add: Balance of cash and cash equivalents at the period -begin                             132,135,416.49       85,169,165.70
VI. Balance of cash and cash equivalents at the period -end                              1,524,564,526.97      132,135,416.49
Legal Representative: Chen Xuejun
Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin




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7. Consolidated Statement on Changes of Owners’ Equity
Prepared by Weifu High-Technology Group Co., Ltd
                                                                                                                                                                              Unit: RMB
Amount in this period

                                                                                                    Amount in this period
                                                                    Owners’ equity attributable to the parent Company
              Item                                                                                                                                       Minority’s     Total Owners’
                                                                        Less:                                     General
                                    Paid-in capital(or                             Reasonable                                                             equity             equity
                                                       Capital reserves Treasury                Surplus reserves    risk     Retained profit    Other
                                      share capital)                                reserve
                                                                        Stock                                    provision
     I. Balance at the end of the
                                     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
last year
     Add:       Changes        of
accounting policy
     Error correction of the last
period
           Other
     II. Balance at the beginning
                                     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
of this year
III. Increase/ Decrease in this
year (Decrease is listed with        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
“-”)
    (I) Net profit                     &nbs