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苏威孚B(200581)公告正文

苏威孚B:2013年年度报告(英文版)

公告日期:2014-04-15

                     Weifu High-Technology Group Co., Ltd.2013 年度报告全文Weifu High-Technology Group Co., Ltd.
        ANNUAL REPORT 2013
              April 2014
                                                                   Weifu High-Technology Group Co., Ltd.2013 年度报告全文
              Section I. Important Notice, Contents and ParaphraseBoard of Directors, Supervisory Committee, all directors, supervisors and senior executives of WeifuHigh-Technology Group Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no anyfictitious statements, misleading statements, or important omissions carried in this report, and shall take allresponsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents.Other directors attended the board meeting on auditing the report except for the following directors
    Name of absent director     Position of absent director         Reason for absence                 Entrusted
    Xing Min                      Independent director            On a business trip           Du FangciThe profit distribution plan that deliberated and approved by the Board is: based on total stock issue of theCompany dated 31 December 2013, distributed 3.00 Yuan (tax included) bonus in cash for every 10-share hold byall shareholders, 00 shares bonus issued (tax included) and no capitalizing of common reserves carried out.Chen Xuejun, Principal of the Company, Ou Jianbin, person in charger of accounting works and Ou Jianbin,person in charge of accounting organ (accounting principal) hereby confirm that the Financial Report of 2013Annual Report is authentic, accurate and complete.Concerning the forward-looking statements with future planning involved in the Report, they do not constitute asubstantial commitment for investors. Investors should be cautious with investment risks.
                                                    Weifu High-Technology Group Co., Ltd.2013 年度报告全文
                                         ContentsSection I. Important Notice,Contents and paraphrase………………………………………………2Section II. Company Profile………………………………………………………………………..7Section III. Accounting data and summary of finnaical indexes………………………………….. 9Section IV. Report of the Board of Directors………………………………………………………12Section V.Important Events………………………………………………………………………..33Section VI. Changes in Shares and particular about shareholders ……………………………...42Section VII. Particulars about Directors, Supervisors, Senior Executives and mployees…………47Section VIII. Corporate Govemance………………………………………………………………53Section IX. Internal Control……………………………………………………………………….58Section X. Financial Report ………………………………………………………………………60Section XI. Documents available for reference…………………………………………………..171
                                                              Weifu High-Technology Group Co., Ltd.2013 年度报告全文
                                             Paraphrase
                    Items               Refers to                                ContentsCompany, The Company, Weifu
                                        Refers to Weifu High-Technology Group Co., Ltd.High-technology
    Weifu Group                             Refers to Wuxi Weifu Group Co., Ltd.
    Industry Group                          Refers to Wuxi Industry Development Group Co., Ltd.
    Robert Bosch, Robert Bosch Company      Refers to Robert Bosch Co., Ltd.、ROBERT BOSCH GMBHBosch Automobile Diesel, Bosch Diesel
                                        Refers to Bosch Automobile Diesel System Co., Ltd.System
    Weifu Automotive Diesel                 Refers to Wuxi Weifu Automotive Diesel System Co., Ltd.
    Weifu Leader                            Refers to Wuxi Weifu Leader Catalytic Converter Co., Ltd.
    Weifu Jinning                           Refers to Nanjing Weifu Jinning Co., Ltd.
    Weifu Chang’an                         Refers to Wuxi Weifu Chang’an Co., Ltd.
    Weifu Mashan                            Refers to Weifu Mashan Pump Glib Co., Ltd.
    Weifu ITM                               Refers to Wuxi Weifu ITM Supercharging Technique Co., Ltd.
    Weifu Tianli                            Refers to Ningbo Weifu Tianli Supercharging Technique Co., Ltd.
    Weifu Jialin                            Refers to Chaoyang Weifu Jialin Machinery Manufacture Co., Ltd.
    Weifu Schmidt                           Refers to Wuxi Weifu Schmidt Power System Spare Parts Co., Ltd.
    Weifu International Trade               Refers to Wuxi Weifu International Trade Co. Ltd.
    Weifu Nano                              Refers to Jiangsu Weifu Nano Technology Co., Ltd.
    Autocam                                 Refers to Wuxi Weifu-Autocam Fine Machinery Co. Ltd.
    Weifu Environment                       Refers to Wuxi Weifu Environment Catalyst Co.,Ltd.
    Kunming Xitong                          Refers to Kunming Xitong Machinery Co., Ltd.
    Weifu Tianshi                           Refers to Anhui Weifu Tianshi Machinery Co., Ltd.
    Zhonglian Automobile Electronic         Refers to Zhonglian Automobile Electronic Co., Ltd.
    Yinlun Co.,Ltd                          Refers to Zhejiang Yinlun Machinery Co., Ltd.
    Wanliyang                               Refers to Zhejiang Wanliyang Transmission Co., Ltd.
    Jiangsu Hongbao                         Refers to Jiangsu Hongbao Hardware Co., Ltd.
    Wiscom Technology                       Refers to Jiangsu Wiscom Technology Co., Ltd.
    HopeRun Technology                      Refers to HopeRun Technology Corporation
    Yunyi Electric                          Refers to Jiangsu Yunyi Electric Co., Ltd.
                                            Weifu High-Technology Group Co., Ltd.2013 年度报告全文
    Jinan Qingqi           Refers to Jinan Qingqi Motorcycle Co., Ltd.
    CSRC                   Refers to China Securities Regulatory Commission
    SZ Stock Exchange      Refers to Shenzhen Stock Exchange
    Jiangsu Gongzheng      Refers to Jiangsu Gongzheng Tianye Certified Public Accountants Co., Ltd.
    The reporting period   Refers to From 1 Jan. 2013 to 31 Dec. 2013
                                               Weifu High-Technology Group Co., Ltd.2013 年度报告全文
                            Indication of major risksInformation Disclosure Media appointed by the Company are: China SecuritiesJournal, 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.
                                                                      Weifu High-Technology Group Co., Ltd.2013 年度报告全文
                                         Section II Company profileI. Company information
    Short form of the stock         Weifu High- Tech, Su Weifu-B          Stock code                  000581, 200581
    Stock exchange for listing      Shenzhen Stock ExchangeName of the Company (in
                                无锡威孚高科技集团股份有限公司Chinese)Short form of the Company
                                威孚高科(in Chinese)Foreign name of the
                                WEIFU HIGH-TECHNOLOGY GROUP CO.,LTD.Company(if applicable)Short form of foreign name of
                                WFHTthe Company(if applicable)
    Legal representative            Chen Xuejun
    Registrations add.              No.5, Huashan Road, New District, Wuxi City
    Code for registrations add      214028
    Offices add.                    No.107, Renmin West Road, Wuxi City
    Codes for office add.           214031Company’s Internet Web Site http://www.weifu.com.cn
    E-mail                          Web @ weifu.com.cnII. 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.cnIII. Information disclosure and preparation place
    Newspaper appointed for information disclosure    China Securities Journal; Securities Times; Hong Kong Commercial DailyWebsite for annual report publish appointed by
                                                  http://www.cninfo.com.cnCSRC
                                                                               Weifu High-Technology Group Co., Ltd.2013 年度报告全文
    Preparation place for annual report                      Office of the Board of DirectorsIV. Registration changes of the Company
                                                                            Registration NO. for        No. of taxation     Organization
                      Date for registration      Place for registration
                                                                           enterprise legal license      registration          code
                                               No.107, Renmin West
    Initial registration 1988-10-27                                           GuoJiZi No.: 1707           320208250456967     25045696-7
                                               Road, Wuxi City
    Registration at end                            No.5, Huashan Road,
                      2013-10-20                                          320200000014926             320208250456967     25045696-7
    of report period                               New District, Wuxi CityChanges of main business since listing
                                               No changes(if applicable)
                                               The company’s controlling shareholder was Weifu Group before 2009.The controlling
                                               shareholder changed to Industry Group from 31st May 2009 because Industry GroupPrevious changes for controlling
                                               merged Weifu Group in 2009.Becasue both Weifu Group and Industry Group were whollyshareholders (if applicable)
                                               state-owned companies of Wuxi State-owned Assets Supervision & Administration
                                               Commission of State Council, which as actual controller had no changes.V. Other relevant informationCPA engaged by the Company
    Name of CPA                               Jiangsu Gongzheng Tianye Certified Public Accountants Co., Ltd. (LLP)
    Offices add. for CPA                      No.28, Liangxi Road, Wuxi City
    Signing Accountants                       Bo Lingjing, Liu DarongSponsor engaged by the Company for performing continuous supervision duties in reporting period
    √ Applicable       □ Not applicable
                                                                            Name of sponsor
        Name of sponsor                    Offices add. for sponsor                                     Continuous supervision period
                                                                                  deputy
                                       No.1508, Xinzha Road, Jing’an Zhang Qiying,Wen
    Everbright Securities Co.,Ltd                                                                      2012-3-1 to 2013-12-31
                                       District, Shanghai City            GuangxiaFinancial consultant engaged by the Company for performing continuous supervision duties in reporting period
    □ Applicable      √ Not applicable
                                                                       Weifu High-Technology Group Co., Ltd.2013 年度报告全文
        Section III. Accounting data and summary of financial indexesI. Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accountingerror correction or not□Yes √□ No
                                                                                     Changes over last year
                                             2013                   2012                                           2011
                                                                                              (%)
    Operating income (RMB)                   5,589,307,689.55        5,015,283,418.71                   11.45%      5,898,113,089.49Net profit attributable to
    shareholders of the listed               1,108,221,450.83          889,326,939.46                   24.61%      1,204,617,075.56company(RMB)Net profit attributable toshareholders of the listed company
                                         1,013,085,655.87          852,679,760.32                   18.81%      1,166,866,705.09after deducting non-recurring gainsand losses(RMB)Net cash flow arising from
                                           803,958,123.13        1,165,759,218.46                   -31.04%       326,269,185.07operating activities(RMB)Basic earnings per share
                                                       1.09                    0.9                  21.11%                    1.42(RMB/Share)Diluted earnings per share
                                                       1.09                    0.9                  21.11%                    1.42(RMB/Share)
    Weighted average ROE (%)                            12.12%                 11.36%                    0.76%                26.27%
                                                                                     Changes over end of
                                         End of 2013             End of 2012                                    End of 2011
                                                                                         last year (%)
    Total assets (RMB)                      13,074,232,730.91       11,055,973,932.34                   18.25%      7,929,217,436.19Net assets attributable to
    shareholder of listed company            9,600,765,223.81        8,655,980,755.24                   10.91%      5,064,060,401.35(RMB)II. Difference of the accounting data under accounting rules in and out of China1. Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
                                                                                                                           In RMB
                                                                              Weifu High-Technology Group Co., Ltd.2013 年度报告全文
                                      Net profit attributable to shareholders of listed     Net assets attributable to shareholders of listed
                                                           company                                             company
                                                                                                                           Amount at
                                   Amount in this period         Amount in last period      Amount at period-end
                                                                                                                          period-begin
    Chinese GAAP                             1,108,221,450.83                889,326,939.46          9,600,765,223.81          8,655,980,755.24Items and amount adjusted by IAS2. Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
                                                                                                                                      In RMB
                                      Net profit attributable to shareholders of listed     Net assets attributable to shareholders of listed
                                                           company                                             company
                                                                                                                           Amount at
                                   Amount in this period         Amount in last period      Amount at period-end
                                                                                                                          period-begin
    Chinese GAAP                             1,108,221,450.83                889,326,939.46          9,600,765,223.81          8,655,980,755.24Items and amount adjusted by foreign accounting rules3. Reasons for the differences of accounting data under accounting rules in and out of ChinaIII. Items and amounts of extraordinary profit (gains)/loss
                                                                                                                                      In RMB
                            Item                                  Amount in 2013     Amount in 2012       Amount in 2011           NoteGains/losses from the disposal of non-current asset
    (including the write-off that accrued for impairment of              13,126,709.30         4,352,926.75       3,755,577.19assets)Governmental subsidy reckoned into current gains/losses(not including the subsidy enjoyed in quota or ration
                                                                     19,375,596.41        15,105,216.19      34,526,848.90according to national standards, which are closelyrelevant to enterprise’s business)Gains arising from investment cost, obtained fromsubsidiaries, affiliated enterprises and joint ventures,
    which is less than fair value of identifiable net assets, that                                                  727,964.94deserves to enjoy in invested units while investmentobtainedProfit and loss of assets delegation on others’ investment
                                                                     91,274,698.13        24,750,377.29or managementSwitch-back of impairment of account receivable that
                                                                                            789,303.74        4,435,891.56practice impairment test independent
                                                                          Weifu High-Technology Group Co., Ltd.2013 年度报告全文Other non-operating income and expenditure except for
                                                                 -1,806,748.05        -412,785.88        3,107,697.30the aforementioned items
    Less: Impact on income tax                                       19,872,935.33       6,429,913.94        7,019,338.38
    Impact on minority shareholders’ equity (post-tax)               6,961,525.50       1,507,945.01        1,784,271.04
    Total                                                            95,135,794.96      36,647,179.14      37,750,370.47          --Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, explain reasons□ Applicable √ Not applicable
                                                             Weifu High-Technology Group Co., Ltd.2013 年度报告全文
                     Section IV. Report of the Board of DirectorsI. Introduction(I)General introductionproduction and marketing on national auto market during 2013 achieved 22.1168 million and 21.9841 millionrespectively, announced by China Association of Automobile Manufactures, respectively increased by 14.76%and 13.87% year-on-year, including 18.0852 million and 17.9289 million respectively for production andmarketing of passenger cars, respectively securing 16.50% and 15.71% year-on-year growth rate, and 4.0316million and 4.0552 million of commercial vehicles with growth rate of 7.56% and 6.40% year-on-yearrespectively.Thanks to the development of automobile industry and increase in commercial vehicles production and sales,heavy truck in particular, during the reporting period, the Company secured development direction, focusing onthe target, centralized by benefits, and seize the market opportunity under the precondition of improving quality,efficiency and strictly controlling the risks and costs. Products from three major business units of the Companystability increase in production and sales, shares in major markets improved substantially, product mix gains afurther optimized and operation performance of the Company growth steadily.Operation revenue of RMB 5.589 billion for the reporting period, up 11.45% on a year-on-year basis; net profitattributable to parent company of RMB 1.108 billion, an increase of 24.61% from the year-ago period; total assetsof RMB 13.074 billion, a 18.25% up year-on-year and equity attributable to owners of parent company of RMB9,600 million, up 10.91% on a year-on-year basis.(II)Major works1. System and process optimization, implementation pre-control of risk managementOrganize and judge the responsibility, system and process of vary functional departments, established anintegrative process management model and risk management mechanism, prevent and control financial risksthrough process management;2. Promote lean accounting idea and improve economic operation qualityCarry out lean accounting management and standard cost management, implement value stream analysis and costvariance analysis, strengthen project cost control and improve the financial management assures the maximizationof revenue for the Group;3. Deepening quality management, further enhance the ability in quality controlBy mode of cross check, completed the annual examination plan of internal quality management system in threeaspect of customer oriented process, support process and management process. Exercise on-site assessment for theservice condition of quality tools, assessment coverage up to 100%. By vary means of value stream analysis andKPI Tree decomposition, promoting the preparation of SMED standard documents in vary divisions, made thebottleneck process management implemented efficiency in every divisions.4. Orderly speed up the R&D platform and ability construction
                                                                  Weifu High-Technology Group Co., Ltd.2013 年度报告全文Engineering Institute Technology Center: came to one of the provincial engineering center in first 26 enterprisesconferred by NDRC of Jiangsu Province in 2013. Increase a series of high-end test capacity as SCR pump nozzletest, 3D vibration integration and test with condition variation, enhanced in the technique development test abilitygreatly. R&D Center of Exhaust After Treatment System: with the goal of building the first-class R&D Center,further to perfected test capacity and established and improved testing process and standards. Complete researchcooperation platform and promote construction for the key laboratory. Superchargers R&D Center: carrying outworks by focusing on test capacity construction, R&D project management, capacity establishment of coretechnology and new R&D, completing initially the building of turbine dynamometer position, debug and acceptedthe axis orbit test system and test system of impeller natural frequency.5. Implemented Industrial Layout Adjustment, steadily promote infrastructureTemporary facilities transfer of Weifu Industry Park were completed by highly design-driven and well-throughplanning; municipal works of industry park finished the pre-buried of road construction and drain pipe for stormsewage, and body structure of Weifu industry park will top off at the end of 2013.6. Accelerate the information construction, strengthen group’s core competenceTo build up a business platform with priority of ―gets through industrial value chain and achieve integration offinance and business‖, focusing on process optimization and system integration, establish SAP template andsystem management standards for group management.II. Main business analysis1. IntroductionIn 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, automotivepost-processing system and intake system of engine. The following table is the change of company’s operatingrevenue, cost, and expenses etc.:
                                                                                               In 10 thousand yuan
                               Item                            2013               2012        Increase y-o-y (%)
    Operating revenue                                       558,930.77        501,528.34           11.45
    Operating cost                                          416,980.73        377,347.76           10.50
    Sales tax and additions                                  3,245.85          3,183.29             1.97
    Sales expenses                                          20715.29          19,064.35             8.66
    Administration expenses                                 55,828.54         44,454.40            25.59
    Financial expenses                                      -5,689.11         -7,549.49
    Loss of assets impairment                                8,862.12          2,111.57            319.69
    Investment income                                       64,249.33         39,621.93            62.16
    Opreating profit                                        123,236.69        102,538.39           20.19
    Total profit                                            125,730.96        103,801.69           21.13
    Net profit attributable to owner of parent company      110,822.15        88,932.69            24.61Review and summarization on the progress of development strategy and operation plan disclosed in previous period during the
                                                                        Weifu High-Technology Group Co., Ltd.2013 年度报告全文reporting periodIn 2013, based on the development of economic situation and trend of the market changes, and around thedevelopment strategy of the Company and targets at the beginning of the year, Board of the Company seizedmarket opportunity, promoted strategic restructuring of the economy, strictly controlled the risks, positivelyprepared the warm-up for implementation of regulation of Standard IV Emission and market-einfuehrung,guarantee a sustainable development for the Company’s operation performance.Reasons for difference of actual operation performance has 20% lower or higher than profit forecast of the Year disclosed□ Applicable √ Not applicable2. RevenueExplanationThe company mainly engaged in automobile parts, and achieved operating revenue RMB 5.589 billion, increasing11.45% y-o-y.Whether income from physical sales larger than income from labors or not√ Yes □ No
                                                                                                             Increase/decrease
               Industries                   Item                      2013                   2012
                                                                                                                y-o-y (%)
                                  Sales volume                        155                     139                      11.51%Fuel injection
    system—multiple-piston           Production volume                   163                     135                      20.74%pump(10 thousand)
                                  Stock volume                         19                      11                      72.73%
                                  Sales volume                        585                     552                       5.98%Fuel injection
                                  Production volume                   632                     505                      25.15%system—injector(10 thousand)
                                  Stock volume                        115                     68                       69.12%
                                  Sales volume                        149                     123                      21.14%Post-processing
                                  Production volume                   159                     124                      28.23%system—purifier(10 thousand)
                                  Stock volume                         36                     26                       38.46%
                                  Sales volume                        106                     100                            6%Post-processing
                                  Production volume                   105                     93                        12.9%system—muffler(10 thousand)
                                  Stock volume                          9                     10                            -10%
                                  Sales volume                         28                     23                       21.74%Intake system—turbocharger(10
                                  Production volume                    28                     24                       16.67%thousand)
                                  Stock volume                          5                      5                             0%Reasons for y-o-y relevant data with over 30% changes√Applicable □Not applicable1. Because of the stable macro-economic situation, rapidly development of the logistic industry and great growthof sales in heavy truck market, drive the stock of production and sales of the fuel injection system products growth
                                                                             Weifu High-Technology Group Co., Ltd.2013 年度报告全文year-on-year.2. With the promotion of regulation of National IV Emission Standars, stock of production and sales of theaftertreatment system products growth on a y-o-y basisMaterial orders in hands□ Applicable √ Not applicableMaterial changes or adjustment for products or services of the Company in reporting period□ Applicable √ Not applicableMajor sales of the Company
    Total top five clients in sales (RMB)                                                                                  2,018,065,018.65
    Proportion in total annual sales volume for top five clients (%)                                                                  36.1%Information of top five clients of the Company√Applicable □Not applicable
    Serial                           Name                               Sales (RMB)              Proportion in total annual sales (%)
    1       Client 1                                                        601,336,432.13                                      10.76%
    2       Client 2                                                        419,471,583.81                                          7.5%
    3       Client 3                                                        371,895,431.33                                       6.65%
    4       Client 4                                                        324,806,138.72                                       5.81%
    5       Client 5                                                        300,555,432.66                                       5.38%
    Total                               --                                   2,018,065,018.65                                      36.1%3. CostIndustry classification
                                                                                                                                  In RMB
                                                        2013                                   2012
         Industry                                                                                                          Y-o-y changes
                               Item                          Ratio in operation                      Ratio in operation
    classification                            Amount                                 Amount                                    (%)
                                                                 cost (%)                                cost (%)
    Automobile parts          Direct material 2,932,939,105.10             77.47%     2,650,613,999.10             77.03%            10.65%
    Automobile parts          Labor cost        336,433,791.03              8.89%       295,830,221.43                  8.6%         13.73%
    Automobile parts          Depreciation      113,287,016.34              2.99%       107,988,731.56               3.14%            4.91%
                          Varieties of
    Automobile parts                            403,066,029.67             10.65%       386,767,817.42             11.24%             4.21%
                          consumptionProduct classification
                                                                                                                                  In RMB
                                                                           Weifu High-Technology Group Co., Ltd.2013 年度报告全文
                                                                  2013                                2012
                                                                            Ratio in                          Ratio in        Y-o-y
    Industry classification            Item
                                                        Amount           operation cost      Amount          operation    changes (%)
                                                                              (%)                             cost (%)
    Fuel injection system       Direct material         2,001,127,856.10           72.11% 1,903,254,331.70           72.91%          5.14%
    Fuel injection system       Labor cost                303,491,485.66           10.94%      269,670,504.29        10.33%        12.54%
    Fuel injection system       Depreciation               98,562,552.54             3.55%       95,296,901.78        3.65%          3.43%
                            Varieties of
    Fuel injection system                                 371,768,012.63             13.4%     342,136,504.59        13.11%          8.66%
                            consumption
    Intake system               Direct material            96,361,023.76           75.15%      112,288,382.49        79.89%        -14.18%
    Intake system               Labor cost                 14,606,404.08           11.39%        12,353,819.64        8.79%        18.23%
    Intake system               Depreciation                 9,587,386.03            7.48%        8,550,060.53        6.08%        12.13%
                            Varieties of
    Intake system                                            7,670,333.89            5.98%        7,355,389.59        5.23%          4.28%
                            consumption
    Post-processing system      Direct material           835,450,225.24           94.66%      635,071,284.91           92%        31.55%
    Post-processing system      Labor cost                 18,335,901.29             2.08%       13,805,897.50           2%        32.81%
    Post-processing system      Depreciation                 5,137,077.76            0.58%        4,141,769.25         0.6%        24.03%
                            Varieties of
    Post-processing system                                 23,627,683.16             2.68%       37,275,923.24         5.4%        -36.61%
                            consumptionNoteProduction and sales of post-processing system is growing faster, so direct material and labor cost etc. is growing faster.Main suppliers of the Company
    Total purchase amount from top five suppliers (RMB)                                                                   1,101,122,434.17
    Proportion in total annual purchase amount for top five suppliers (%)                                                          34.26%Information of top five suppliers of the Company√Applicable □Not applicable
    Serial                   Name                     Sum of purchase (RMB)             Proportion in total annual sum of purchase (%)
       1     Client 1                                             572,876,806.37                                               17.83%
       2     Client 2                                             205,426,321.64                                                 6.39%
       3     Client 3                                             126,786,523.40                                                 3.95%
       4     Client 4                                             112,931,063.61                                                 3.51%
       5     Client 5                                              83,101,719.15                                                 2.59%
    Total                       --                              1,101,122,434.17                                               34.26%4. Expenses
                                                                         Weifu High-Technology Group Co., Ltd.2013 年度报告全文In the reporting, the company’s main expenses are as follows:
                                                                                                         In 10 thousand yuan
               Name                           2013                          2012                     Increase y-o-y (%)
    Sales expenses                             20,715.29                     19,064.35                            8.66
    Administration expenses                    55,828.54                     44,454.40                         25.59
    Financial expenses                          -5,689.11                    -7,549.49
    Income tax expenses                        10,301.61                     10,377.96                            -0.745. R&D expensesDuring the reporting period, the Company orderly speed up the R&D platform and ability construction, speed upthe process of technology center of engineering institute, R&D center of exhaust after treatment and superchargeR&D center, enhanced greatly in aspect of the ability in technology development testing. In 2013, the R&Dexpenses of the Company were RMB211, 699,000, accounting for 2.12% of the latest audited net profit and3.79% of the latest audited operating income.6. Cash flow
                                                                                                                               In RMB
                        Item                                     2013                       2012                  Y-o-y changes (%)
    Subtotal of cash in-flow from operation activity              6,384,171,015.19            6,442,560,329.86                     -0.91%
    Subtotal of cash out-flow from operation activity             5,580,212,892.06            5,276,801,111.40                      5.75%
    Net cash flow from operation activity                           803,958,123.13            1,165,759,218.46                    -31.04%
    Subtotal of cash in-flow from investment activity             2,036,906,091.62              259,134,993.55                    686.04%
    Subtotal of cash out-flow from investment activity            3,094,204,131.67            1,916,823,809.13                     61.42%
    Net cash flow from investment activity                        -1,057,298,040.05           -1,657,688,815.58
    Subtotal of cash in-flow from financing activity                888,120,000.00            3,517,125,210.00                    -74.75%
    Subtotal of cash out-flow from financing activity               778,844,160.72            1,338,170,679.02                     -41.8%
    Net cash flow from financing activity                           109,275,839.28            2,178,954,530.98                    -94.98%
    Net increased amount of cash and cash equivalent               -144,064,077.64            1,687,024,933.86                   -108.54%Reasons for y-o-y relevant data with over 30% changes
    √Applicable      □Inapplicable1. Net cash flow from operation activityNet cash flow from operation activity in 2013 decreased RMB 361,801,100 than that of 2012 at a down of 31.04%, mainly becausenotes receivable, accounts receivable and the inventory balance increased in this year.2. Net cash flow from investment activityNet cash flow from investment activity in 2013 increased RMB 600,390,800 than that of 2012, mainly because investment offinancial products increased in last year and the investment to joint venture Bosch Diesel System.3. Net cash flow from financing activityNet cash flow from financing activity in 2013 decreased RMB 2,069,678,700 than that of 2012, mainly because privately offering
                                                                               Weifu High-Technology Group Co., Ltd.2013 年度报告全文raised capital RMB 2,850,124,300 in last year.Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company□Applicable √Not applicableIII. Composition of main business
                                                                                                                                      In RMB
                                                                                  Increase/decrease Increase/decrease Increase/decrease
                                                                  Gross profit
                         Operating revenue     Operating cost                       of operating     of operating cost      of gross profit
                                                                   ratio (%)
                                                                                 revenue y-o-y (%)       y-o-y (%)          ratio y-o-y (%)According to industries
    Automobile parts          5,157,336,631.31 3,785,725,942.14             26.6%               10.88%             10.01%                 0.58%According to productsAutomobile fuel
                          3,915,983,172.09 2,774,949,906.93           29.14%                 6.78%                 5.2%               1.06%injection system
    Intake system              172,146,754.65       128,225,147.76        25.51%                12.09%             13.27%                -0.78%Automobile
    post-processing           1,069,206,704.57      882,550,887.45        17.46%                28.77%             27.85%                 0.59%systemAccording to region
    Domestic                  4,902,874,502.23 3,544,580,678.04             27.7%                12.4%             12.22%                 0.12%
    Oversea                    254,462,129.08       241,145,264.10          5.23%              -12.06%            -14.65%                 2.87%Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based onlatest one year’s scope of period-end□ Applicable √ Not applicableIV. Assets and liability analysis1. Major changes of assets
                                                                                                                                      In RMB
                                                    End of 2013                            End of 2012                    Ratio     Notes of
                                                                Ratio in total                       Ratio in total   changes        major
                                              Amount                                  Amount
                                                                  assets (%)                          assets (%)          (%)       changes
    Monetary fund                                2,447,555,672.40         18.72% 2,600,714,219.36              23.52%           -4.8%
    Account receivable                           1,132,835,466.09           8.66% 1,036,392,701.40               9.37%        -0.71%
    Inventory                                     986,790,491.70            7.55%       759,505,087.10           6.87%         0.68%
    Investment real estate                           3,424,363.44           0.03%         3,881,346.30           0.04%        -0.01%
                                                                                  Weifu High-Technology Group Co., Ltd.2013 年度报告全文
    Long-term equity investment                   2,622,500,708.20          20.06% 2,192,275,239.86                  19.83%          0.23%
    Fix assets                                    1,471,037,804.88           11.25% 1,404,806,234.18                 12.71%         -1.46%
    Construction in progress                        199,463,338.80             1.53%         65,649,548.48            0.59%          0.94%2. Major changes of liability
                                                                                                                                           In RMB
                                                         2013                                     2012                   Ratio        Notes of
                                                                 Ratio in total                       Ratio in total    changes          major
                                               Amount                                   Amount
                                                                  assets (%)                             assets (%)       (%)         changes
    Short-term loans                              399,500,000.00               3.06% 70,000,000.00                 0.63%       2.43%
    Long-term loans                                60,000,000.00               0.46%                                           0.46%3. Assets and liabilities measured by fair value
                                                                                                                                           In RMB
                                       Changes of fair   Accumulative
                    Amount at the                                              Devaluation of       Amount of         Amount of
                                           value         changes of fair                                                          Amount in the
      Items           beginning                                                   withdrawing     purchase in the sale in the
                                       gains/losses in value reckoned into                                                         end of period
                       period                                                     in the period       period           period
                                         this period           equityFinancial assets3.Financial
    assets available 265,689,600.00 42,490,055.00                                                      69,331,500.00                  385,009,400.00for salesAforementione
                    265,689,600.00 42,490,055.00                                                   69,331,500.00                  385,009,400.00d totalFinancial
                                0.00                                                                                                         0.00liabilitiesWhether the attribute of the company’s major assets measurement has a lot changes in the reporting
    □ Yes      √ NoV. Analysis on core competitivenessThe Company is the important domestic supplier of automobile components, mainly providing diesel fuelinjection system, vehicle post-processing system and engine intake system (booster). In recent years, theCompany 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 managementinnovation, realizing steady expansion of economic scale and market share. During the reporting period, the corecompetitiveness has no change.1. Advanced technical advantage. The Company is one of the major high-tech enterprises under the national torchplan and high-tech enterprise of Jiangsu province, focusing on technical research and owning ―nationaltechnology center‖ and ―postdoctoral scientific research work station‖. The Company takes the leading position asto its diesel fuel injection system technology. Common Rail Technology is the mature technology that recognizedin market at present, and has over two decades development history out of China. The high pressure common rail
                                                                    Weifu High-Technology Group Co., Ltd.2013 年度报告全文products, produced by joint-stock enterprise of the Company Bosche Diesel, were entered the market of China ona large scale. The above said paoducts are the first choice for customers at present, the matching componenetsowes a certain capacity and now is further to expand in order to push the home-made process. The Company hascore technology in post-processing system and the ability to provide goods for downstream clients undercentralized system. Besides, it launched new products such as SCR, POC and DOC meeting the national IVemission requirement in respect of diesel vehicles. Currently, the Company layouting the capacity in line with themarke demands, and the electronic control VE pump, developed by controlling subsidiary Weifu Jinning, hasqualified the emission standard of National IV.2. Complete set of product specification, complete industry chain and great production scale. Its diesel injectionsystem products are vastly used in diesel engines with various powers, mating for various trucks, buses,engineering machinery, Marine, generator set.The Company produced 1,630,000 set of diesel multi -cylinderpumps and 6,320,000 set of fuel injectors in the reporting period. The Company owns advanced post-processingsystem production lines, producing 1,590,000 set of purifiers in the reporting period. The supercharger productscan satisfy needs from light and heavy business vehicles and certain passenger vehicles, producing 280,000 set ofsuperchargers in the reporting period.3. Stable customers and matured market. With years of development, the Company has established long-termstable partnership with many domestic main engine producers. Besides, the constant stable development of thePRC economy will drive forward the healthy development of its three major business segments.VI. Investment analysis1. Situation of foreign equity investment(1) Situation of foreign investment
                                               Situation of foreign investment
    Investment in reporting period (RMB)    Investment in same period of last year (RMB)             Changes (%)
                          24,981,687.00                                  573,815,000.00                              -95.65%
                                             Situation of the invested company
                                                                                             Equity proportion in invested
                 Name                                    Main business
                                                                                          company for Listed company (%)
    Weifu Autocam                             Automobile parts                                                               51%
    Weifu Schmidt                             Automobile parts                                                               66%
                                                                                                                                          Weifu High-Technology Group Co., Ltd.2013 年度报告全文(2)Holding equity of financial enterprise
                                               Amount of       Proportion of            Amount of         Proportion of
                                Initial                                                                                   Book value at the Gains and loss in
                                            stock-holding at stock-holding at        stock-holding at    stock-holding at                                            Accounting
    Name         Type         investment                                                                                   end of the period  the reporting
                                            the beginning of the beginning of         the end of the      the end of the                                              subject        Source of stock
                             cost(RMB)                                                                                        (RMB)             (RMB)
                                           the period (Share) the period (%)          period (Share)        period (%)Guolian
           Securities                                                                                                                                            Long-term stock
    Securities                 12,000,000.00           18,000,000                1.2%           18,000,000               1.2%        12,000,000.00      360,000.00                      Subscription
           company                                                                                                                                               right investmentCo., Ltd.NanjingHengtai
           Insurance                                                                                                                                             Long-term stock
    Insurance                   1,000,000.00            1,000,000               1.85%            1,000,000              1.85%         1,000,000.00                                      Subscription
           company                                                                                                                                               right investmentand BrokerCo., Ltd.
    Total                      13,000,000.00           19,000,000          --                   19,000,000         --                13,000,000.00      360,000.00           --                 --(3)Situation of securities investment
                                                         Amount of
                                                       stock-holding   Proportion of     Amount of      Proportion of
    Variety              Short form         Initial                                                                        Book value at the Gains and loss in
            Code of                                         at the   stock-holding at stock-holding at stock-holding at                                               Accounting
    of                     of          investment                                                                        end of the period the reporting                              Source of stock
           securities                                   beginning of the beginning of the end of the    the end of the                                                 subject
    securities             securities     cost(RMB)                                                                             (RMB)             (RMB)
                                                         the period    the period (%   period (Share)     period (%)
                                                           (Share)
                                                                                                                                                                  Financial assets
    Stock      600841      SDEC          199,208,000.00       23,680,000                2.72%       23,680,000               2.72%    268,294,400.00     1,681,280.00 available for    Subscription
                                                                                                                                                                  sales
                                                                                                                                                                    Financial assets
                       Miracle
    Stock      002009                     69,331,500.00                                               9,300,000               2.9%    116,715,000.00                    available for    Subscription
                       Logistics
                                                                                                                                                                    sales
    Total                                268,539,500.00       23,680,000          --                32,980,000          --            385,009,400.00     1,681,280.00          --               --
    Disclosure date of securities       2012-03-24investment approval of Board
    report                              2013-06-04Disclosure date of securitiesinvestment approval of Boardreport(if applicable)Statement of holding other listed companies’ equity√ Applicable □Not applicable
                                                                                                                                     Weifu High-Technology Group Co., Ltd.2013 年度报告全文On 24th March 2012, the Company approved participation in the subscription of SDEC non-public offering A share in 23rd Meeting of 6th Session of the Board, subscribing for SDEC non-publicoffering 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 transferafter 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 2011on 4th June 2012.( sending cash of RMB 0.5(tax included) per every 10 shares, converting 6 shares per every 10 shares. In the reporting, the company held SDEC 23.68 million shares.In May 2013, in line with the define authority in ―Decision-making System of Major Investment and Financial‖, being discussed by the management and approved from the Chairman, theCompany decide to subscribe 9300000 private placement shares from Miracle Logistics with RMB 7.455 per share, a 2.9 percent in total share capital of Miracle Logistics after placement. TheCompany committed no transfer after the subscription in 12 months, restricted period (4 June 2013 to 3 June 2014).at the end of the reporting period the Company held Miracle Logistics 9.3million shares.2. Trust financing, investment of derivatives and entrustment loan(1) Trust financing
                                                                                                                                                                               In 10 thousand Yuan
                                                                                                                                            Amount of
                       Whether                                                                                              Amount of
           Related                                                                                                                          reserve for                                 Actual
    Name of                 related                      Amount of                                            Determination principal actual                           Estimated
         relationshi                    Type                       Start date of trust End date of trust                                  devaluation of                            gains/losses in
    trustee               trade or                    trust financing                                       method of reward taking back in                            income
               p                                                       financing          financing                                      withdrawing (if                                period
                          not                                                                                                 period
                                                                                                                                            applicable)
                                   Bank
                                   financing,
    Bank,     Non-relate                                                                                    According to the
                     No            management             257,685 2013-01-01          2013-12-31                                    174,775                  0                             9,127.47
    trust     d party                                                                                       agreement
                                   plan, trust
                                   products
    Total                                                     257,685          --                 --                --                  174,775                  0                  0          9,127.47
                                                   All refers to the self-owned capital of the Company. The trust financing was cumulative amount; the actual capital for trust financing is RMB 2Capital resource
                                                   billion at most, and recyclable within the limit.Overdue un-received principal and accumulated
                                                                                                                                                                                                      0earnings amount
    Lawsuit involved (if applicable)                   Not applicableDisclosure date for approval from the Board for
                                                2013-03-28trust financing (if applicable)Disclosure date for approval from board ofshareholders for trust financing (if applicable)
                                                                                                                                Weifu High-Technology Group Co., Ltd.2013 年度报告全文(2) Investment of derivatives
                                                                                                                                                                          In 10 thousand Yuan
                                                                                                                                                                Ratio of
                                                                                                                         Amount of                            investment
                    Whether
          Related                                                                                   Investment           reserve for    Investment             amount at           Actual
                     related
    Operator relationsh                 Type     Initial investment                                      amount at         devaluation of    amount at         period-end in net   gains/losses in
                    trade or                                       Start date        End date
              ip                                                                                   period-begin       withdrawing (if   period-end           assets of the         period
                       not
                                                                                                                         applicable)                         Company at
                                                                                                                                                            period-end (%)
    Total                                                         0          --             --                        0                                    0                 0%                      0
    Capital resource                             Not applicableDisclosure date for approval from theBoard for investment of derivatives (ifapplicable)Disclosure date for approval from board ofshareholders for investment of derivatives(if applicable)(3) Entrustment loan
                                                                                                                                                                          In 10 thousand Yuan
                      Loan object                        Whether the related party     Amount of loan         Interest rate of loan     Guarantor or collateral      Use of loan object’s fund
    Total                                                               --                                  0                --                       --                             --Disclosure date for approval from the Board forentrustment loan (if applicable)Disclosure date for approval from board ofshareholders for entrustment loan (if applicable)3. Application of raised proceeds(1)Overall application of raised proceeds
                                                                                                                                                                          In 10 thousand Yuan
                                                                                                                                  Weifu High-Technology Group Co., Ltd.2013 年度报告全文
    Total raised proceeds                                                                                                                                                              285,012.43
    Total raised proceeds invested during the reporting period                                                                                                                           23,802.9
    Total accumulative raised proceeds invested                                                                                                                                        185,878.64
    Total raised proceeds for new purposes during the reporting period                                                                                                                           0
    Total accumulative raised proceeds for new purposes                                                                                                                                          0
    Proportion of the total accumulative raised proceeds for new purposes (%)                                                                                                                 0%
                                                                              General application of raised proceedsOn 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 wasapproved to issue new shares not exceeding 112,858,000 by non-public offering. On 10 February 2012, Jiangsu Gongzheng issued capital verification report (SGW(2012)No.B006), stating thatas 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 issuanceexpense of RMB15,904,657.07, the net raise proceeds was RMB2,850,124,252.93. As at the end of the reporting period, raise proceeds of RMB 1,858,786,400 has been invested.(2) Situation of committed project of raised proceeds
                                                                                                                                                                         In 10 thousand Yuan
                          Projects
                                          Total                                           Amount of     Investment      Predicted                                                  Project
    Committed investment changed or not                      Total          Amount                                                                                 Reach the
                                       committed                                         accumulated program till the serviceable    Profit achieved                           feasibility was
    projects &investment    (including                  investment after invested in this                                                                           predicted
                                     investment of                                      investment till  year-end     condition date   in this year                           changed hugely
    of raised fund       changed                     adjustment (1)       year                                                                               interest or not
                                     raised capitals                                   the year-end (2) (3)=(2)/(1)     of project                                                  or not
                          partially)Investment project commitmentR&D of WAPS,industrialization,
    productivity expansion No                          62,032            62,032        2,251.63       20,821.32            33.57%   2013-10-31                                   Noof diesel common railsystem partsConstruction project in
                        No                         57,750            57,750       14,928.52       16,858.09            29.19%   2013-10-31                                   Noindustrial zoneIndustrialization of tail
                          Yes                      26,000            26,000        6,622.75         18,968.8           72.96%   2015-06-30                                   Notreatment systemResearch institution
                         No                         5,154             5,154                            5,154            100%    2012-12-31                                   NoprojectBattery material of
    engines and R&D of       No                        10,000            10,000                                               0%    2012-12-31                                   Nobattery
    Equity acquisition       No                      34,381.5        34,381.5                           34,381.5            100%    2012-06-30          2,348.1                  No
    Liquid assets            No                        90,000       89,694.93                         89,694.93             100%                                                 No
                                                                                                                                      Weifu High-Technology Group Co., Ltd.2013 年度报告全文supplementationSubtotal of
                                --               285,317.5       285,012.43          23,802.9       185,878.64          --              --                  2,348.1     --                --commitment projectsInvestment orientation for fund arising out of plan
    Total                           --               285,317.5       285,012.43          23,802.9       185,878.64          --              --                  2,348.1     --                --
                         1. WAPS research development and industrial diesel common rail system components capacity enhancement project. Under the feasibility report of this project, the date
                         for reaching the condition for intended use was on 31 October 2013. As of 31 December 2013, the accumulative investment amounted to RMB 208,213,200,
                         representing investment progress of 33.57%. Reason for lag behind the progress included:
                         (1)the raised proceeds was not in place in time (the proceeds was expected to be in place in March 2011, while the actual cash time was February 2012);
                         (2) The project has WAPS system products involved, which was self-developed by the Company without example, the products have completed after work of
                         consistency and reliability and come to Market-Einfuehrung stage;
                         (3) components involved in the project with diesel common rail system: currently, with the promotion of emission standards of National IV, common rail produ cts have
                         complete cover the market of National IV, the common rail components matching the Bosch diesel common rail products are in short supply, therefore, the Company
    Situation about not      rapid up the capacity improvement for common rail parts at present. Given this, the project will be accelerated in year of 2014.coming up to schemed
    progress or expected     2. Under the feasibility report of Construction of industry park project, the date for reaching the condition for intended use was on 31 October 2013. As of 31 Decemberrevenue and the
                         2013, the accumulative investment amounted to RMB 168,580,900, representing investment progress of 29.19%. Reason for lag behind the progress included:reason(In specific
    project)                 (1) in 2012, the project not to start as scheduled due to the relocation of governmental parcel;
                         (2) In 1Q of 2013, relocation of government parcel was completed, the project start in April officially and in a good process recently.
                         (3) The relocation expected to be completed at the end of 2014.
                         3. Auto power battery materials and power battery research project. Under the feasibility report of this project, the date for reaching the condition for intended use was
                         31 December 2012. As of 31 December 2012, the accumulative investment was nil. Reasons included:
                         (1) the raised proceeds was not in place in time;
                         (2) The Company followed the project in the last two years, and there was great uncertainty in technology and policy, therefore, the Company was prudent for this
                         project and continued to follow development of power battery and would make decisions if needed.
    Amount, usage and       Not applicableprogress of using forfund raising out of theplan
                         Not applicableChange ofimplementation placeof investment project
                                                                                                                                        Weifu High-Technology Group Co., Ltd.2013 年度报告全文of raised capitals
                         Applicable
                         Occurred in reporting period
                         In consideration of the uncertainty of emission regulation promotion (Standard Three turns to Standard Four), and the lands are in short supply at the mean time, the
                         original investment plan of ―Industrialization of tail treatment system‖ met no needs of the subsidiary Wuxi Weifu Leader Catalytic Converter Co., Ltd. (hereinafter
                         referred to as‖ Weifu Leader‖) of implementing subject company in aspect of development. Therefore, part of the content in ―Industrialization of tail treatment system‖Adjustment of
                         was changed by the Company. The abovementioned event has been deliberated and approve by 9th meeting of 7th session of the Board held on 26 March 2013 and annualimplementation way
    for investment project   shareholders’ general meeting of 2012 held on 23 May 2013 respectively, the ―Proposal of Changing the Investment Plan with Ra ised Proceeds‖ was published onof raised capitals
                         Juchao Website dated 28 March 2013, found more details in Notice No.: 2013-007. The adjustment for the investment plan of ―Industrialization of tail treatment system‖
                         changes no investment orientation of the raised proceeds, only the investment amount changed from RMB 260 million to RMB 340 million, the adjusted part will supply
                         with self-owned capital. The project expected to reach serviceable condition after adjustment in June 2015. The changes for raised proceed this time has no influence on
                         the investment orientation and actual content of implementation without affect the implementation of investment plan. The adjustment guarantees a normal utilization of
                         raised proceeds and smoothly implementation of projects of raised proceeds, and in line with the actual condition of the Company and long-term development plan.
                         Applicable
                         Jiangsu Gongzheng issued ―Weifu High-Technology Group Co., Ltd. certified report of self-finance input raising and investment project in advance‖ ―SGW[2012]
                         No.: E1100‖,ended as 29th February 2012,the company actual investment amount by self-finance input raising and investment project in advance was RMBRegulation of
    implementation ways      299,120,000,including 1. R&D of WAPS, industrialization, productivity expansion of diesel common rail system parts RMB 180,050,000; 2. Construction project inof investment project
                         industrial zone RMB 16,620,000; 3. Industrialization of tail treatment system RMB 28,560,000;of raised capitals
                         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 applicableraised fund projectsTemporarilysupplement for thecurrent capitals withidle raised capitals
    Usage and trend of       Not applicableunused raised capitalsInvested in pre-phases On the storage and the usage of raised capitals, the company’s execution strictly based on related laws and regulations and three-party supervision protocol of raised
    and replacement for    capitals (four-party supervision protocol of raised capitals) in the reporting period.
                                                                                                                                        Weifu High-Technology Group Co., Ltd.2013 年度报告全文raised fund projectsTemporarilysupplement for the
                           Not applicablecurrent capitals withidle raised capitals(3)The changed project of raised proceeds
                                                                                                                                                                                 In 10 thousand Yuan
                             Total
                                                                                Progress of the
              Correspondi amount                        Accumulation virtual                                                                                       Whether the
                                                                             investment deadline Predicted serviceable                    Whether it has come
    Project after ng original invested Virtual amount input amount input up to                                                                                      feasibility of the
                                                                                 the end of the    condition date of   Income achieved in up to the scheduled project changed after
    the change committed        after    in the reporting  end of the reporting
                                                                                   reporting            project           the reporting         income
                project   adjustment                             (2)                                                                                              the alteration
                                                                                (%)(3)=(2)/(1)
                              (1)
    Industrializa   Industrializa
    tion of tail    tion of tail
                                  26,000                6,622.75              18,968.8                 72.96% 2015-06-30                                                         No
    treatment       treatment
    system          system
    Total                --           26,000                6,622.75              18,968.8            --                    --                               0           --                    --
                                            In consideration of the uncertainty of emission regulation promotion (Standard Three turns to Standard Four), and the lands are in short supply at the
                                            mean time, the original investment plan of ―Industrialization of tail treatment system‖ met no needs of the Weifu Leader in aspect of development.
                                            Therefore, part of the content in ―Industrialization of tail treatment system‖ was changed by the Company. The abovementioned event has been
                                            deliberated and approve by 9th meeting of 7th session of the Board held on 26 March 2013 and annual shareholders’ general meeting of 2012 held on 23
                                        May 2013 respectively, the ―Proposal of Changing the Investment Plan with Raised Proceeds‖ was published on Juchao Website dated 28 March 2013,Changing reason, decision procedureand statement of disclosure(In specific found more details in Notice No.: 2013-007. The adjustment for the investment plan of ―Industrialization of tail treatment system‖ changes no investment
    project)                                orientation of the raised proceeds, only the investment amount changed from RMB 260 million to RMB 340 million, the adjusted part will supply with
                                            self-owned capital. The project expected to reach serviceable condition after adjustment in June 2015. The changes for raised proceed this time has no
                                            influence on the investment orientation and actual content of implementation without affect the implementation of investment plan. The adjustment
                                            guarantees a normal utilization of raised proceeds and smoothly implementation of projects of raised proceeds, and in line with the actual condition of the
                                            Company and long-term development plan.Reasons for falling behind the target
                                       Not applicableprogress or target income(By projects)Explanation on major changes of
                                            No major changesfeasibility after the project changed
                                                                                                                                      Weifu High-Technology Group Co., Ltd.2013 年度报告全文4. Main subsidiaries and stock-jointly companiesParticular about main subsidiaries and stock-jointly companies
                                                                                                                                                                                                 In RMB
                                                            Main products or
    Company name              Type             Industries                          Register capital     Total assets        Net Assets      Operating revenue Operating profit                 Net profit
                                                                service
                                                         Fuel injectionWeifu Automotive
                 Subsidiary             Automobile parts system                300,000,000.00      1,016,198,895.31     816,602,135.78 1,115,181,809.66             229,240,230.03      197,689,990.76Diesel
                                                         productions
                                                         Post-processing
    Weifu Leader        Subsidiary          Automobile parts system                502,596,300.00      1,503,123,974.03      924,670,611.73 1,119,674,519.30            100,851,924.54          96,446,312.24
                                                         productions
                                                         Fuel injection
    Weifu Jinning       Subsidiary          Automobile parts system                346,286,825.80      1,116,570,769.55     756,984,965.35           768,142,576.59     148,927,020.76      134,104,759.41
                                                         productions
                                                         Fuel injection
    Bosch Automobile Joint-stock                                                   USD230,000,000.
                                        Automobile parts system                                    6,039,584,611.00 4,404,763,995.00 5,398,098,727.00 1,134,183,957.00                  939,239,423.00
    Diesel           company                                                       00
                                                         productions
    Zhonglian           Joint-stock                             Petrol system
                                        Automobile parts                       600,620,000.00      2,218,238,464.85 2,213,042,562.45               9,986,413.34     893,130,474.91      892,554,116.99
    Electronic          company                                 productionsNotes of main subsidiaries and stock-jointly companiesBosch Automobile Diesel gained net profit RMB 0.939 billion in 2013,increasing 104.13% than RMB 0.46 billion in 2012,mainly because with the promotion of National IV emission standards,the common rail products produced are in short supplyParticular about subsidiaries obtained or disposed in report period√ Applicable □Not applicable
    Name of      Purpose of getting and treating                                                                                                                                Influence on overall
    company         subsidiary in the reporting                                 The way of getting and treating subsidiary in the reporting                                   product and performance
                                                   According to the equity transfer agreement singed between the Company and Autocam Corporation, To expand the business
                It’s helpful to improve the
    Weifu                                             the one percent equity of Weifu Autocam, hold by Autocam Corporation, was transferred to the                              scale of the Company and
                manufacturing level of automobile
    Autocam                                           Company; capital contributed by the Company accounted for 51 percent of the register capital of                           improve the performance
                parts of the Company
                                                   Weifu Autocam, thus comes to the controlling subsidiary of the Company.                                                  level
    5. The significant progress of non-raised proceeds investment                                                                                                              In 10 thousand Yuan
                         Total investment       Investment amount
    Name of the project                                                  Accumulation of actual investment amount ended of the period-end            Progress of the project    Earnings of the project
                             amount                in the annual
        Total                               0                     0                                                                          0              --                         --
                                                                     Weifu High-Technology Group Co., Ltd.2013 年度报告全文VII. Prediction of business performance from January –March 2014Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or thewarning of its material change compared with the corresponding period of the last year and explanation on reason
    √ Applicable   □ Not applicableEarnings pre-announcement: substantial increaseData type applied in the earnings pre-announcement: interval number
                             From the beginning to the end term     The same period        variation(increase or decrease)
                                       of next report                   last yearExpected accumulated net
    profits(ten    thousand        38,850      --       41,440               25,899.27        increase     50%     --    60%RMB)
    basic earns per share           0.38       --        0.41                  0.25           increase     52%     --    64%
    Explanation for earnings    1、The pre-announcement has not been audited by CPA in advance;
    pre-announcement            2、The main reason of substantial increase of earnings is due to the stable increase of main
                             business of Company. The increase of investment income also makes great contribution to the
                             increase of earnings. The business of high pressure common rail of the enterprise invested by
                             Company is expected to increase rapidly arising from the enforcement of emission regulation
                             related to national standard Ⅳ. Accordingly, the investment income from the above-mentioned
                             enterprise shall have a substantial increase.VIII.Special purpose vehicle under the control of companyThe company has no special purpose vehicle under the control of companyIX. Prospects on future developmentThe Company operates business in auto components industry, producing and selling fuel injection system product,auto post-processing system products and auto intake system products.1. Industry Competition Structure and Growing TrendCommercial vehicles market shows a recovery growth in 2013 after two-year earlier adjustment; affected bynational macroeconomic environment, policy regulations and the process of industrialization, steady progress ofurbanization in particular, market of commercial vehicles remain stable as a whole;With the promotion and execution of National IV Emission Standard on a step-by-step basis, the technicalcapability of core components for commercial vehicles will be effectively increased, which is beneficial to the fastdevelopment of common rail system and aftertreatment products, the industry will face a differentiation.2. Operation plan for year of 2014More intense competition and challenge emerged for China’s automotive industry in year of 2014. In the presenceof update-schedule and new changes in automotive market, the Company, continues to focus on the goals ofcreating a leader with core components of the automotive (energetic) concerned in China, decision-makingscientifically with precision management to promote the industrial restructuring; accelerate product structureoptimization, rapidly manufacturing products and developing market advantage in stage of National IV, and madebreakthroughs in strategic restructuring. Making efforts to improve the quality and effectiveness o f economicgains execute stable development of the enterprise and continuously update competitiveness of the Group.(1) Seize opportunity to rapid up development of industrial restructuring focus on the market. Strongly encouragethe industry of exhaust after treatment, make steady progress for fuel system industry and rapidly promote theindustry of supercharger.
                                                                          Weifu High-Technology Group Co., Ltd.2013 年度报告全文(2) Continuously improve management of quality, increase quality guarantee and ability to control in processcontinually.(3) Perfect risk control system, strengthen the financial controlling. Reinforce budget control, respond quickly inchanges of the operation environment through well-defined costs structure and break-even point, guarantee acontinuously improvement in economic benefit for the Group.(4) Carry out construction of major projects of the Group, adjust industrial layout and improve managementstandards. Guarantee a smooth implementation of relocation for Weifu Industry Park; trying to complete theframework construction of the main parts of factory houses of Weifu Leader Project; guarantee officiallyproduction of the Phase I project of ERP System as well as the start of Phase II project.(5) Implement core talent strategy plans, continuous enhance efficiency of the staff and quality. Completes theterm program of human resources, perfect core talent construction system of the Group.3. Development strategyTo actively develop fuel injection system products, auto post-processing system products and engine intakesystem (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 developmentstrategy. To consolidate foundation, improve quality, expand market, strengthen actions and control risks based onthe working principles of ―pursuit for practice and efficiency‖. Manage to realize the target of being the leader indomestic automobile (power engineering) core components field.4. Risk for year of 2014The macroeconomic environment in and out of China, automotive industry policy and execution of the NationalIV Emission Standards will makes a large impact on development of the Company.X. Explanation of the Board of Directors on the “Qualified Opinion” of the report made bythe CPAsNot applicableXI.Explanation on changes of accounting policy, accounting estimation and settlement methodcompared with the last year’s financial reportCompared with last year’s financial report, accounting policy, accounting estimation and settlement method has no changes.XII. Particular about major accounting errors correction that needs retroactive re-statementin reporting periodNo major accounting errors correction occurred in reporting period.XIII. Compare with last year’s financial report; explain changes in consolidation statement’sscopeOne enterprise included in the consolidation scope from a year earlier.According to the equity transfer agreement singed between the Company and Autocam Corporation, the one
                                                                         Weifu High-Technology Group Co., Ltd.2013 年度报告全文percent equity of Weifu Autocam, hold by Autocam Corporation, was transferred to the Company; capitalcontributed by the Company accounted for 51 percent of the register capital of Weifu Autocam, thus comes to thecontrolling subsidiary of the Company. Weifu Autocam included in consolidation financial scope of the Companysince being subsidiary of the Company.XIV. Profit and dividend distributionEstablishment, implementation or adjustment of profit distribution policy especially the cash dividend policy during the reportingperiod√Applicable□Not applicableIn accordance with the ―Notice on Further Implementation of Relevant Matters of Cash Dividend for ListedCompany‖ from CSRC and ―Notice on Further Implementation of Relevant Requirement of Cash Dividend forListed Company‖ from Jiangsu Securities Regulatory Bureau, and according to actual circumstance of theCompany, amendment of part of the clause of ―Article of Association‖ was deliberated and approved in 2ndextraordinary general meeting of 2012 held dated 27 August 2012. (Found more in ―Resolution Notice of 2 ndextraordinary general meeting of 2012‖ released on Juchao Website dated 28 August 2012). During the reportingperiod, profit distribution plan of the Company is strictly in line with the regulations of cash dividend policyregulated in ―Article of Association‖, fully listened to the opinions from the independent directors and minorityinvestors, safeguarded the lawful interest of minority shareholders.
                                            Special explanation on cash dividend policy
    Satisfy regulations of General Meeting or requirement of Article of Association (Y/N):                                          Y
    Well-defined and clearly dividend standards and proportion (Y/N):                                                               Y
    Completed relevant decision-making process and mechanism (Y/N):                                                                 Y
    Independent directors perform duties completely and play a proper role (Y/N):                                                   YMinority shareholders have opportunity to express opinions and demands totally and their legal rights are fully
                                                                                                                                Yprotected (Y/N):
                                                                                                                              Not
    Condition and procedures are compliance and transparent while the cash bonus policy adjusted or changed         (Y/N):
                                                                                                                           applicableThe profit distribution plan and capitalization of capital reserve plan of the Company for the last three years (reporting periodincluded)The profit distribution plan for 2011: based on the new total share capital of 680,133,995 shares, distribute cashdividend of RMB3.00 (tax included) for every 10 shares, and no capitalization of capital reserve. The plan hasbeen implemented completely in July 2012.The profit distribution plan for 2012: based on the total share capital of 680,133,995 shares as at the end of 2012,distribute cash dividend of RMB3.00 (tax included) for every 10 shares, 5 shares bonus issued (tax included) andno capitalization of capital reserve. The plan has been implemented completely in July 2013.The profit distribution plan for 2013: based on the total share capital of 1,020,200,992 shares as at the end of 2013,distribute cash dividend of RMB3.00 (tax included) for every 10 shares, and no capitalization of capital reserve.Cash dividend in latest three years
                                                                                                                                In RMB
                                            Net profit attributable to shareholders Ratio in net profit attributable to shareholders of
    Year for bonus    Amount for cash bonus
                                             of listed company in consolidation       listed company contained in consolidation
    shares           (tax included)
                                                   statement for bonus year                           statement (%)
    2013                       306,060,297.60                        1,108,221,450.83                                              27.62%
    2012                       204,040,198.50                          889,326,939.46                                              22.94%
    2011                       204,040,198.50                        1,204,617,075.56                                              16.94%The Company gains profits in reporting period and the retained profit of parent company is positive but no plan of cash dividendproposed□ Applicable √ Not applicable
                                                                             Weifu High-Technology Group Co., Ltd.2013 年度报告全文XV. Profit distribution plan and capitalizing of common reserves plan for the Period
    Bonus shares for every 10-share (Share)                                                                                                  0
    Dividends for every 10-share (RMB) (Tax included)                                                                                      3.00
    Equity base of distribution plan (Share)                                                                                      1,020,200,992
    Total cash dividend(RMB) (Tax included)                                                                                   306,060,297.60
    Distributable profits (RMB)                                                                                             3,013,207,193.32
    Ratio of cash dividend in total profit distribution (%)                                                                              100%
                                                           Cash dividend policy:Other
                         Detail explanation on profit distribution or capitalization from capital public reserveThe profit distribution plan for 2013: based on the total share capital of 1,020,200,992 shares as at the end of 2013, distribute cashdividend of RMB3.00 (tax included) for every 10 shares, and no capitalization of capital reserve.XVI. Social responsibilityMore details of the company ―social responsibility report 2013‖ could be found in Juchao Website, the identifiable informationdisclosure website by Shenzhen Stock Exchange. (www.cninfo.com.cn)The listed company and subsidiaries is in the range of heavy pollution industry that regulated by State environment protectiondepartments□Yes √ No □Not applicableThe listed company and subsidiaries owes other major social safety issues□Yes √ No □Not applicableAdministrative penalty occurred in reporting period□Yes √ No □Not applicableXVII.In the report period, reception of research, communication and interview
                                                                                                     Contents discussed and material
    Time              Place               Way               Type               Reception
                                                                                                                   provided
                Office of the        Telephone     Institution Institution
    2013-03-28                                                                                        Annual report
                Board                communication
                Scene of the                              Institution Institution
                                                                                                  Implementation of Standard IV and
    2013-05-23      shareholders’       Spot research
                                                                                                  views on market in 2013
                general meeting
                                                          Institution Teleconference, institutional The performance communication
                Office of the        Telephone
    2013-08-27                                                            investors, the largest online meeting of Semi-annual Report of
                Board                communication
                                                                      of meeting up to 81 people the Company
                                                          Institution Huatai Securities industry
                                                                                                 Communication and exchange of
                Office of the                                         researcher Yao Hongguang,
    2013-08-28                           Spot research                                               Semi-annual Report of the Company
                Board                                                 Ding Yunbo and other 6
                                                                                                 and the future development
                                                                      people
                                                                                                  Basic condition of the Company,
    2013-1-1 to     Office of the        Telephone
                                                   Individual Public investor                     implementation of Standard IV and
    2013-12-31      Board                communication
                                                                                                  views on market in 2013
                                                                                                  The Company answered the question
                                                                                                  for investors online through the
    2013-1-1 to     Office of the
                                     Written inquiry Individual Public investor                   investor relations interactive
    2013-12-31      Board
                                                                                                  platform(http://irm.p5w.net/dqhd/sic
                                                                                                  huan/)
                                                                    Weifu High-Technology Group Co., Ltd.2013 年度报告全文
                                         Section V. Important EventsI. Significant lawsuits and arbitrations of the Company□ Applicable √ Not applicableNo lawsuit or arbitration of the company in the annual.II.Questioned from media□ Applicable √ Not applicableNo media questioned for the Company in reporting periodIII. Non-operational fund occupation of the listed company from controlling shareholder andits related parties
                                                                                                              In 10 thousand Yuan
                                                      Amount        Total
                                                                                                                           Date for
    Shareholder                              Amount at newly-incre    amount                      Estimated   Estimated
            Occupation                                                           Amount at                                payment
    or related                  Reasons     period-begi  ased in    repaid in                    repayment     repaid
               date                                                              period-end                               estimated
    person                                      n      reporting   reporting                       way       amount
                                                                                                                           (month)
                                                      period       period
    Total                                              0         0               0            0      --                   0      --Ratio of total amount at period-end in
                                                                                                                                  0%net assets at period-end (%)IV. Bankruptcy reorganizationNo bankruptcy reorganization of the CompanyV.Trade of assets
                                                                                                                                   Weifu High-Technology Group Co., Ltd.2013 年度报告全文1. Purchase of assets
                                                                                                         Ratio of net
                                                        Progress       Impact on        Impact on           profit                             The related
    The other party                        Purchase                                                                                 Related
                       Assets                                        operation of the gains/losses of contributed to                        relationship(appl Date of
    of transaction or                      price(10         (Note 2)                                                             transaction or                                 Index of disclosure
                      purchased                                      Company (Note the Company listed company                               icable for related disclosure
    final controller                   thousand Yuan)                                                                                not
                                                                            3)           (Note 4)     in total net profit                      transaction)
                                                                                                             (%)
                                                                                      Enlarge
                                                                     In favor of
                                                                                      operation
    American            1% equity of                   Ownership has     improving the
                                                                                      volume and
    Autocam Co.,        Weifu Autocam           140.17 transferred in    manufacture                                            No                                              Not applicable
                                                                                      improve the
    Ltd.                hold                           total             standards of
                                                                                      performance
                                                                     auto parts
                                                                                      standards
                Land assets of
                                                                                                                                                                        ―Part of the land
                industry group
                                                                                                                                                                        assets of largest
                (104,378.3
                                                                      To solve        To enhance the                                                                    shareholder transfer
                s.q.m) locates at
    Wuxi Industry                                       Relevant          longstanding    independence                                                                      by wholly-owned
                No.                                                                                                                         Substantial
    Development                                   5,125 formalities still related         and integrity of                      Yes                              2013-12-12 subsidiary and
                88,Huichang                                                                                                                 shareholder
    Group Co., Ltd.                                     under procedure transaction       the assets of the                                                                 related transaction‖
                Road, Chang’an
                                                                      problems        Company                                                                           (Notice No.:
                Street, Huishan
                                                                                                                                                                        2013-027) released
                District, Wuxi
                                                                                                                                                                        on Juchao Website
                City2. Sales of assets
                                                                                Ratio of net
                                                       Net profit                   profit
    The other                                       contributed to the            contributed                                The related Assets rights Credit and
                                      Trading
    party of                                        listed Company     Impact on by the sold                     Related   relationship( concerned     liability
                Assets      Sales   price (in 10                                                  Pricing                                                              Date of       Index of
    transaction                                      from the begin of Company(N assets for                      transaction applicable transferred concerned
                 sold       date     thousand                                                    principal                                                            disclosure    disclosure
    or final                                       the reporting to      ote3)       listed                       or not     for related ownership shifted fully
                                       Yuan)
    controller                                     the sales date(in 10           company in                                 transaction) fully or not   or not
                                                   thousand Yuan)                total profit
                                                                                     (%)3. Enterprise mergerVI.Implementation of the company’s equity incentive and the effectsNo equity incentive plan formulated and implemented by the Company.
                                                                                                                                   Weifu High-Technology Group Co., Ltd.2013 年度报告全文VII. Significant related transaction1. Related transaction connected to routine operations
                                                                                                                            Proportion
                                                                                                                 Related                     Related      Similar
                                                                                                                               in the
                                                         Related       Related                      Related    transaction                                trading
        Related                                                                      Pricing                                amount of      transaction              Date of      Index of
                           Related relationship        transaction   transaction                  transaction amount (in 10                               market
    transaction parties                                                              principal                                the same      settlement              disclosure   disclosure
                                                           type        content                       price      thousand                                   price
                                                                                                                            transaction       mode
                                                                                                                  Yuan)                                  available
                                                                                                                                (%)
    Wuxi Weifu Precision                               Procurement of    Procureme                                                                                     2013-03-2 ‖Prediction
                                                                                                                                          According to
    Machinery               Associated company         goods or labor    nt of     Market price                       7,435.12       2.31%                             8         of      Daily
                                                                                                                                          the contract
    Manufacturing Co., Ltd.                            service           goods                                                                                                   Related
                                                                                                                                                                             Transaction
                         Associated company,
                                                Procurement of       Procureme                                                                                               for year of
                         controlling subsidiary                                                                                           According to
    Bosch Diesel System                             goods or labor       nt of     Market price                      20,237.51         6.3%                                      2013‖ and
                         of German Bosch                                                                                                  the contract
                                                service              goods                                                                                                   ―Resolution
                         Company
                                                                                                                                                                             Notice      of
    Wuxi Weifu                                         Procurement of    Procureme                                                                                               Annual
                       Joint venture of Weifu                                                                                             According to
    Environment Protection                             goods or labor    nt of     Market price                      57,068.57      17.76%                                       Shareholder
                       Leader                                                                                                             the contract
    Catalyst Co.,Ltd.                                  service           goods                                                                                                   s     General
                         Joint venture at last year Procurement of   Procureme                                                                                               Meeting of
                                                                                                                                          According to                       2012‖
    Weifu Autocam            and from February to       goods or labor   nt of     Market price                       1,062.05       0.33%
                                                                                                                                          the contract                       published on
                         June of this period        service          goods
                                                                                                                                                                             Juchao
                         second largest            Procurement of    Procureme                                                                                               Website
    German Bosch                                                                                                                              According to
                         shareholder of the        goods or labor    nt of     Market price                       7,334.22       2.28%
    Company                                                                                                                                   the contract
                         Company                   service           goodsWuxi Weifu Precision
                                                                     Sales of                                                             According to
    Machinery               Associated company         Sales of goods                  Market price                   1,861.53       0.33%
                                                                     goods                                                                the contractManufacturing Co., Ltd.
                         Associated company,
                         controlling subsidiary                      Sales of                                                             According to
    Bosch Diesel System                             Sales of goods                     Market price                  60,133.64      10.76%
                         of German Bosch                             goods                                                                the contract
                         CompanyWuxi Weifu
                       Joint venture of Weifu                        Sales of                                                             According to
    Environment Protection                             Sales of goods                  Market price                   1,716.31       0.31%
                       Leader                                        goods                                                                the contractCatalyst Co.,Ltd.
                         Joint venture at last year Sales of goods   Sales of                                                             According to
    Weifu Autocam                                                                      Market price                     210.35       0.04%
                         and from February to                        goods                                                                the contract
                                                                                                                                            Weifu High-Technology Group Co., Ltd.2013 年度报告全文
                          June of this period
                          Associated company,    Other
                                                                          Technolog
                          controlling subsidiary                                                                                                  According to
    Bosch Diesel System                                                       y service                                      503.94         0.09%
                          of German Bosch                                                                                                         the contract
                                                                          payable
                          Company
    Wuxi Weifu                                           Other
                       Joint venture of Weifu                             Rental                                                                  According to
    Environment Protection                                                                                                   206.16         0.04%
                       Leader                                             receivable                                                              the contractCatalyst Co.,Ltd.
                          Associated company,    Other
                                                                          Purchase
                          controlling subsidiary                                                                                                  According to
    Bosch Diesel System                                                       of fixed                                          9.64             0%
                          of German Bosch                                                                                                         the contract
                                                                          assets
                          Company
                                                     Other                Land and
                          Substantial shareholder                         trademark                                                               According to
    Wuxi Industry Group                                                                                                      432.32         0.08%
                          of the Company                                  fee                                                                     the contract
                                                                          payable
                          second largest                                  Technolog
    German Bosch                                                                                                                                      According to
                          shareholder of the         Other                y service                                    1,645.82         0.29%
    Company                                                                                                                                           the contract
                          Company                                         payable
    Total                                                                                       --           --          159,857.18        --               --            --          --            --
                                                                                       The above mentioned related transactions are the necessary trading which closely concerned with daily
    Necessity and sustainable of related transaction as well as reasons of related         operation of the Company, Board of the Company guarantee the above mentioned exercising in a fair value
    transaction with related parties(not with other marketing dealers)                     pricing and reasonable payment/receive condition from point of protecting interest of investors, no interest
                                                                                       of the listed company injured.
    Influence on independence of listed company from related transaction                   Shows no influence on independence of the Company
    Report the actual implementation of the normal related transactions which were         The total amount from daily related transaction in reporting period still in the predicted amount that
    projected about their total amount by types during the reporting period(if             approved in Annual Shareholders’ General Meeting of 2012, the predicted amount of daily related
    applicable)                                                                            transactions for year of 2013 at year-begin amounting as RMB 2,294,500,000 in total.2. Related transaction incurred by purchase or sales of assets
                                                                                                                                                 Income
                                                                                                                                                   from
                                                             Book value of       Assessment     Market fair       Transfer
                    Type of      Content of                                                                                Clearing form          assets
    Related Relati                                   Pricing     assets transfer    value of assets value (10       price (10                                     Disclosure
                     related        related                                                                                 for related          transfer                     Index of disclosure
    party onship                                   principle    (10 thousand        transfer (10    thousand        thousand                                        date
                  transaction    transaction                                                                                transaction             (10
                                                                 Yuan)         thousand Yuan)      Yuan)           Yuan)
                                                                                                                                                thousand
                                                                                                                                                  Yuan)
    Wuxi     Substa Land            Land assets of Appraisal                                                                      According to                                 ―Part of the land assets
    Industry ntial assets           industry group value                2,399.74              5,125         5,125         5,125
                                                                                                                              agreement
                                                                                                                                                             2013-12-12    of largest shareholder
    Develop shareh transfer         (104,378.3                                                                                                                                 transfer by
                                                                                                                                          Weifu High-Technology Group Co., Ltd.2013 年度报告全文
    ment      older               s.q.m) locates                                                                                                                                 wholly-owned
    Group                         at No.                                                                                                                                         subsidiary and related
    Co., Ltd.                     88,Huichang                                                                                                                                    transaction‖ (Notice
                              Road,                                                                                                                                          No.: 2013-027) released
                              Chang’an                                                                                                                                      on Juchao Website
                              Street,
                              Huishan
                              District, Wuxi
                              CityReason of major difference between the
    transfer price and book value or assessed       The purchase of the land is occurred earlier, and the real estate market price rose faster in recent years.value(if applicable)
    Influence on the operation results and          To solve longstanding problems and related transactions of big shareholders industrial group, and to enhance the independence and integrity of
    financial status of the Company                 the assets of the Company3. Significant related transaction from jointly investment outside
                                                                     Main business                                  Total assets of invested     Net assets of invested       Net profit of invested
    Same                         Pricing                                                   Register capital of
               Relationship                    Enterprise invested    of invested                                   enterprise(10 thousand      enterprise(10 thousand       enterprise(10 thousand
    investors                     principle                                                 invested enterprise
                                                                      enterprise                                             Yuan)                       Yuan)                        Yuan)4. Credits and liability of related partyWhether have non-operation related liabilities and credits relations or not□Yes √No
    Related                                        Reasons for         Whether has non-operation       Balance at period-begin (10      Amount in this period(10           Balance at period-end (10
               Relationship        Type
    party                                          occurring           fund occupation or not              thousand Yuan)                 thousand Yuan)                      thousand Yuan)5. Other significant related transactionsNilInquiry of disclosure website for relevant interim reports of material related transaction
                         Notice name                                                    Dated for disclosed                                       Website for interim report disclosed
                                                                        Weifu High-Technology Group Co., Ltd.2013 年度报告全文VIII. Significant contracts and its implementation1. Trusteeship, contracting and lease(1) TrusteeshipExplanation on trustNot applicableItems generated over 10% gains/losses in total profit in reporting period for the Company□ Applicable √ Not applicable(2) ContractExplanation on contractNot applicableItems generated over 10% gains/losses in total profit in reporting period for the Company□ Applicable √ Not applicable(3) LeaseExplanation on leaseNot applicableItems generated over 10% gains/losses in total profit in reporting period for the Company□ Applicable √ Not applicable2. Guarantees
                                                                                                                 In 10 thousand Yuan
           Particulars about the external guarantee of the Company (Barring the guarantee for the controlling subsidiaries)
                          Related                  Actual date of
                                                                                                              Complete Guarantee
                        Announcem                    happening
    Name of the                       Guarantee                         Actual       Guarantee Guarantee implement for related
                             ent                      (Date of
    Company guaranteed                      limit                      guarantee limit      type           term    ation or party (Yes
                         disclosure                    signing
                                                                                                                  not       or no)
                            date                    agreement)
                                             Guarantee of the Company for the subsidiaries
                          Related                  Actual date of
                                                                                                              Complete Guarantee
                        Announcem                    happening
    Name of the                       Guarantee                         Actual       Guarantee Guarantee implement for related
                             ent                      (Date of
    Company guaranteed                      limit                      guarantee limit      type           term    ation or party (Yes
                         disclosure                    signing
                                                                                                                  not       or no)
                            date                    agreement)Ningbo Tianli
                                                                                   Joint liability
    Turbocharging           2014-01-17          6,000 2013-12-24                 6,000                  3 years  No          No
                                                                                   guarantyTechnology Co., Ltd.
                                                                   Total amount of actualTotal amount of approving
                                                                   occurred     guarantee       for
    guarantee for subsidiaries in                               25,000                                                              6,000
                                                                   subsidiaries in report periodreport period (B1)
                                                                   (B2)
                                                                   Total balance of actualTotal amount of approved
                                                                   guarantee for subsidiaries at
    guarantee for subsidiaries at the                           25,000                                                              6,000
                                                                   the end of reporting periodend of reporting period (B3)
                                                                   (B4)Total amount of guarantee of the Company( total of two abovementioned guarantee)
    Total amount of approving                                          Total amount of actual
    guarantee in report period                                  25,000 occurred guarantee in report                                 6,000
    (A1+B1)                                                            period (A2+B2)
    Total amount of approved                                    25,000 Total balance of actual                                      6,000
                                                                          Weifu High-Technology Group Co., Ltd.2013 年度报告全文
    guarantee at the end of report                                      guarantee at the end of report
    period (A3+B3)                                                      period (A4+B4)The proportion of the total amount of actually guarantee in the
                                                                                                                             0.62%net assets of the Company (that is A4+ B4)(%)Including:Amount of guarantee for shareholders, actual controller and its
                                                                                                                                     0related parties(C)The debts guarantee amount provided for the guaranteed parties
                                                                                                                                     0whose assets-liability ratio exceed 70% directly or indirectly(D)Proportion of total amount of guarantee in net assets of the
                                                                                                                                     0Company exceed 50%(E)
    Total amount of the aforesaid three guarantees(C+D+E)                                                                                0Explanation on guarantee with composite way(1) Guarantee provided against regulations
                                                                                                              In 10 thousand Yuan
                                                              Amount
                                                             guarantee
                               Ratio in                                  Ratio in
         Relationsh Amount                                     against                                  Predicted
                              net assets                                net assets Predicted Predicted
    Guarantee ip with   guarantee            Guarantee Guarantee regulation                                    date
                                   at                                        at    methods to amount
    name       listed   against               type      term      ended                                   relieve(mo
                              period-end                                period-end relieve    relieve
          company regulation                                   before                                      nth)
                                  (%)                                       (%)
                                                               annual
                                                               report
    Total                             0         0%       --             --              0         0%     --       --             --3. Other significant contract
                                Book        Appraisal
                               value of      value for
                               amount          assets
                                                                  Base date
                              involved       involved                                   Trading Whether               Implemen
    Company                                                Appraisal of assets
           Name of                in             in                                     price (in constitute Related     tation
    entered            Date of                            agency (if evaluatio Pricing
          counterpa            contract     contract(i                                     10      related relationsh ended as
    into a            contract                           applicable   n (if    principle
             rt                 (in 10          n 10                                   thousand transactio      ip     reporting
    contract                                                   )     applicable
                              thousand       thousand                                    Yuan) n or not                 period
                                                                       )
                              Yuan) (if      Yuan) (if
                             applicable     applicable
                                   )              )4. Other significant transactionNilIX. Implementation of commitments1. Commitments from the Company or shareholders (with over 5% shares held) occurred in reportingperiod or occurred in previous period but continued to this period
    Commitm Commitm                                                                           Dated for Commitment
                                                  Contents                                                     Implementation
    ents  ent party                                                                        commitment    term
            Wuxi        In order to promote the listed company’s steady and healthy
            Industry    development, fully mobilize senior executives so as to ensure                              Implemented
            Developm    to combine the interests of the governance and shareholders 2006-04-05                     after related
            ent Group   of the Company, Weifu Industry Group committed: after                                      policy released
            Co., Ltd.   Weifu High-tech finishing Share Merger Reform, under
                        related regulations of the state and Wuxi government in terms
                                                                       Weifu High-Technology Group Co., Ltd.2013 年度报告全文
                          of governance encouragement system of listed company, the
                          Group would the stock incentive plan for management level
                          of Weifu High-tech.Commitments inreport ofacquisitionor equitychangeCommitments inassetsreorganization
              Wuxi
    Commitm       Industry
                          The privately offering of the Company totally issue
    ents in       Developm
                          112,858,000 A-shares to substantial shareholder Wuxi
    initial       ent Group
                          Industry Group and foreign strategy investor ROBERT
    public        Co., Ltd.                                                                                         Implementing
                          BOSCH GMBH. The above said shares are listed for trading
    offering or   and
                          in Shenzhen Stock Exchange since 29 February 2012 with
    refinancin    ROBERT
                          36-month restriction
    g             BOSCH
              GMBHothercommitments tominorityshareholders of theCompanyCompletedon time or YesnotDetailreasons forun-complement and
            Not-applicablefurtherplan(ifapplicable)2. Concerning assts or project of the Company, which has profit forecast, and reporting period still inforecasting 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)X. Appointment and non-reappointment (dismissal) of CPAAccounting firm appointed
    Name of domestic accounting firm                                      Jiangsu Gongzheng Tianye CPA Co., Ltd. (LLP)
    Remuneration for domestic accounting firm (in 10 thousand Yuan)                                                              150
    Continuous life of auditing service for foreign accounting firm                                                                  22
    Name of domestic CPA                                                  Bo Lingjing, Liu DarongWhether re-appointed accounting firms in this period or not
                                                                         Weifu High-Technology Group Co., Ltd.2013 年度报告全文□ Yes √ NoAppointment of internal control auditing accounting firm, financial consultant or sponsor√Applicable □Not applicableBeing deliberated in Annual Shareholders General Meeting of 2012, Jiangsu Gongzheng Tianye CPA Co., Ltd.was appointed as audit accounting firm for internal control of the Company for year of 2013. For supervisionneeds of targeted placement of 2012, Everbright Securities Co., Ltd. was the sponsor of the Company for duty ofcontinues supervising.XI. Explanation from Supervisory Committee and Independent Directors (if applicable) for“Qualified Opinion” from the CPANot applicableXII. Penalty and rectification
                                                               Type of
                                                                               Conclusion (if                           Index of
      Name                Type             Reasons        investigation and                      Disclosure date
                                                                                applicable)                            disclosure
                                                               penaltyExplanation on rectificationParticular about directors, supervisors, senior executives and shareholders with over 5% shares held suspected illegal dealings of thestock of the Company and earnings of illegal dealings taken back by the Company that disclosed□Applicable √ Not applicableXIII. Suspension and delisting after disclosure of annual reportNot applicableXIV. Other material eventsNilXV. Significant events of the subsidiariesNilXVI. Corporate bond offeringNil
                                                                               Weifu High-Technology Group Co., Ltd.2013 年度报告全文
    Section VI. Changes in Shares and Particulars about ShareholdersI. Changes in Shares
                                                                                                                                 In shares
                                  Before the Change               Increase/Decrease in the Change (+, -)            After the Change
                                                                                 Capitaliz
                                                          New
                                              Proportion              Bonus      ation of                                       Proportion
                                 Amount                  shares                            Others    Subtotal     Amount
                                                 (%)                  shares       public                                          (%)
                                                         issued
                                                                                  reserve
    I. Restricted shares            156,186,216      22.96%             78,093,107                       78,093,107   234,279,323      22.96%
    1. State holding                          0                                                                                 02. State-owned corporate
                                 79,311,999      11.66%             39,655,999                       39,655,999   118,967,998      11.66%shares
    3. Other domestic shares            33,817        0.01%                 16,908                           16,908       50,725        0.01%Including: domestic
                                          0                                                                                 0corporate sharesDomestic nature person
                                    33,817        0.01%                 16,908                           16,908       50,725        0.01%shares
    4. Foreign shares                76,840,400       11.3%             38,420,200                       38,420,200   115,260,600       11.3%Including: Foreign
                                 76,840,400       11.3%             38,420,200                       38,420,200   115,260,600       11.3%corporate sharesForeign nature person
                                          0                                                                                 0shares
    II. Unrestricted shares         523,947,779      77.04%            261,973,890                      261,973,890   785,921,669      77.04%
    1. RMB Ordinary shares          409,027,779      60.14%            204,513,890                      204,513,890   613,541,669      60.14%2. Domestically listed
                                114,920,000       16.9%             57,460,000                       57,460,000   172,380,000       16.9%foreign shares3. Foreign listed foreign
                                          0                                                                                 0shares
    4. Other                                  0                                                                                 0
    III. Total shares               680,133,995       100%             340,066,997                      340,066,997 1,020,200,992       100%Reasons for share changed√Applicable □Not applicableAccording to the equity distribution plan for 2012: based on the total share capital of 680,133,995 shares dated 31December 2013, distributed 3 Yuan (tax included) bonus in cash for every 10-share hold by all shareholders, 5shares bonus issued (tax included) and no capitalizing of common reserves carried out. The plan has beenimplemented completely in July 2013, the total share capital of the Company increased from 680,133,995 sharesto 1,020,200,992 shares.Approval of share changed√Applicable □Not applicableThe equity distribution plan for 2012 was deliberated and approved by 2012 Annual General Meeting in May 2013.Ownership transfer of share changed√Applicable □Not applicableThe equity distribution plan for 2012 was deliberated and approved by 2012 Annual General Meeting in May 2013 and it has beenimplemented completely in July 2013.Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in latest year and period√Applicable □ Not applicableDuring the reporting period, share capital increase to 1,020,200,992 shares from 680,133,995 shares due to theimplementation of annual interest distribution plan for year of 2012, thus, earnings per shares dilluted to RMB1.09, and net assets per share attributable to common shareholders of Company dilluted to RMB 9.41.
                                                                           Weifu High-Technology Group Co., Ltd.2013 年度报告全文Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators□Applicable √ Not applicableII. Security offering and listing1. Previous security offering in latest three years at period-end
    Stock/derivative                        Offering price      Circulation                          Numbers approved     End of trading
                     Offering date                                              Listing date
    securities                          (or interest rate)    number                                 for trading           dateStock
    Privately offering 2012-02-07           25.395                 112,858,000 2012-02-29                   112,858,000Convertible corporate bond, separable-traded convertible bond and corporate bondsWarrantExplanation on security offering in previous three yearsOn 21 January 2012, being approved by CSRC ―Approval of Reply on Privately Offering of WEIFUHIGH-TECHNOLOGY GROUP CO.,LTD‖ (ZJXK [2012] No.109), the Company offering no more than112,858,000 new shares in total.The privately offering of the Company totally issue 112,858,000 shares to two objects with offering price of25.395 Yuan per share for 2866.0289 million Yuan collected. The above said shares are listed for trading inShenzhen Stock Exchange since 29 February 2012 with 36-month restriction; listing date predicted as 1 March2015.2. Explanation on changes of total shares and shareholders structure as well as changes of structure ofassets and liabilityAccording to the equity distribution plan for 2012: based on the total share capital of 680,133,995 shares dated 31December 2013, distributed 3 Yuan (tax included) bonus in cash for every 10-share hold by all shareholders, 5shares bonus issued (tax included) and no capitalizing of common reserves carried out. The plan has beenimplemented completely in July 2013, the total share capital of the Company increased from 680,133,995 sharesto 1,020,200,992 shares. Shareholders structure and structure of assets and liability of the Company had no change.3. Existing internal staff shares
    Offering date of internal staff                                                              Circulation numbers of internal staff
                                         Offering price for internal staff shares(RMB)
             shares                                                                                       shares(Share)III. Particulars about shareholder and actual controller of the Company1. Amount of shareholders of the Company and particulars about shares holding
                                                                                                                               In shares
    Total shareholders at the end of                                Total shareholders ended as the 5th trading day
                                                         34,932                                                                 43,033
    reporting period                                                before annual report disclosed
                           Particulars about shares held above 5% by shareholders or top 10 shareholding
                                            Proport                                                                  Number of share
                                                         Total
                                             ion of                               Amount of         Amount of        pledged/frozen
    Full name of           Nature of                shareholders Changes in
                                            shares                              restrict shares      un-restrict
    Shareholders          shareholder              at the end of report period                                    State of
                                              held                                    held          shares held               Amount
                                                     report period                                                  share
                                              (%)WUXI INDUSTRY
                State-owned
    DEVELOPMENT                                      20%   204,059,398 68019799          118,967,998      85,091,400
                legal personCROUP CO., LTD.
    ROBERT BOSCH            Foreign legal            14%   142,841,400 47613800          115,260,600      27,580,800
                                                                        Weifu High-Technology Group Co., Ltd.2013 年度报告全文
    GMBH                   personChina ConstructionBank-Fullgoal
                      Domestic
    Tianbo Innovation     non-state-owned 1.65%         16,800,000 -2429260                               16,800,000
    Theme Stock           legal personSecurities InvestmentFundBBH BOS S/A
                       Foreign legal
    FIDELITY FD -                             1.58%     16,111,179 15691758                               16,111,179
                       personCHINA FOCUS FDBOCOM—Fullgoal Domestic
    Tianyi Value Security non-state-owned 1.46%         14,944,463 7075973                                14,944,463
    Investment Fund       legal personChina MerchantsBank Co.,
                      DomesticLtd.—Fullgoal Tianhe
                      non-state-owned 1.15%         11,778,994 4496878                                11,778,994Stable Selected
                      legal personSecurities InvestmentFundCCB—Yinhua Core
                      DomesticValue Selected
                      non-state-owned 1.08%         11,026,311 425912                                 11,026,311Securities Investment
                      legal personFundNCI—Bonus—Indivi Domestic
    dual Bonus         non-state-owned 0.86%             8,723,489 3868971                                 8,723,489
    -018L-FH002 Shen   legal person
    National Social        Domestic
    Security Fund-108      non-state-owned 0.71%         7,249,714 7249714                                 7,249,714
    portfolio              legal personZhongrongInternational Trust – Domestic
    Huixin No.1            non-state-owned     0.7%      7,153,378 7153378                                 7,153,378Securities Investment legal personSingle Fund Trust
                                         Among the top ten shareholders, the Company knew there has no associated relationship
                                         between Wuxi Industry Development Croup Co., Ltd., the first largest shareholder of the
                                         Company, and other shareholders; and they do not belong to the consistent actionist
    Explanation on associated relationship   regulated by the Management Measure of Information Disclosure on Change of
    among the aforesaid shareholders         Shareholding for Listed Company. Fullgoal Tianbo Innovation Theme Stock Securities
                                         Investment Fund, Fullgoal Tianyi Value Security Investment Fund and Fullgoal Tianhe
                                         Stable Selected Securities Investment Fund shares same fund manager –Fullgoal Fund
                                         Management Co., Ltd.
                                 Particular about top ten shareholders with un-restrict shares held
                                                                             Amount of                       Type of shares
                        Shareholders’ name                              un-restricted shares
                                                                         held at period-end             Type             Amount
                                                                                                RMB common
    WUXI INDUSTRY DEVELOPMENT CROUP CO., LTD.                                          85,091,400                                 85,091,400
                                                                                                shares
                                                                                                Domestically
    ROBERT BOSCH GMBH                                                                  27,580,800                                 27,580,800
                                                                                                foreign shares
    China Construction Bank-Fullgoal Tianbo Innovation Theme Stock                                 RMB common
                                                                                   16,800,000                                 16,800,000
    Securities Investment Fund                                                                      shares
                                                                                                Domestically
    BBH BOS S/A FIDELITY FD - CHINA FOCUS FD                                           16,111,179                                 16,111,179
                                                                                                foreign shares
                                                                                                RMB common
    BOCOM—Fullgoal Tianyi Value Security Investment Fund                              14,944,463                                 14,944,463
                                                                                                shares
    China Merchants Bank Co., Ltd.—Fullgoal Tianhe Stable Selected                                 RMB common
                                                                                   11,778,994                                 11,778,994
    Securities Investment Fund                                                                      shares
    CCB—Yinhua Core Value Selected Securities Investment Fund                         11,026,311 RMB common                      11,026,311
                                                                           Weifu High-Technology Group Co., Ltd.2013 年度报告全文
                                                                                                   shares
                                                                                                   RMB common
    NCI—Bonus—Individual Bonus -018L-FH002 Shen                                         8,723,489                                8,723,489
                                                                                                   shares
                                                                                                   RMB common
    National Social Security Fund-108 portfolio                                           7,249,714                                7,249,714
                                                                                                   shares
    Zhongrong International Trust – Huixin No.1 Securities Investment                                 RMB common
                                                                                      7,153,378                                7,153,378
    Single Fund Trust                                                                                  shares
                                                                     Among the top ten shareholders, the Company knew there
                                                                     has no associated relationship between Wuxi Industry
                                                                     Development Croup Co., Ltd., the first largest shareholder of
                                                                     the Company, and other shareholders; and they do not
                                                                     belong to the consistent actionist regulated by theExpiation on associated relationship or consistent actors within the
                                                                     Management Measure of Information Disclosure on Changetop 10 un-restrict shareholders and between top 10 un-restrict
                                                                     of Shareholding for Listed Company. Fullgoal Tianboshareholders and top 10 shareholders
                                                                     Innovation Theme Stock Securities Investment Fund,
                                                                     Fullgoal Tianyi Value Security Investment Fund and
                                                                     Fullgoal Tianhe Stable Selected Securities Investment Fund
                                                                     shares same fund manager –Fullgoal Fund Management Co.,
                                                                     Ltd.Whether has a buy-back agreement dealing in reporting period□Yes √No2. Controlling shareholder of the CompanyCorporation
                                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 significantWuxi Industry
                            Jiang                                          RMB              project, investment and development
    Development Group Co.,                        1995-10-05    13600265-4
                            Guoxiong                                       3,589,379,241.46 of manufacturing and services andLtd.
                                                                                            venture     capital   in   high-tech
                                                                                            achievement, entrust enterprise and
                                                                                            managementOperation result, financialstatus, cash flow and future Not applicabledevelopment strategy etc.Equity of otherdomestic/foreign listedcompany with share
                             Substantial shareholder of the Company—Industry Group is the controlling shareholder of Wuxi Taijicontrolling and share
                              Industry Co., Ltd. (stock code: 600667)participation by controllingshareholder in reportingperiodChanges of controlling shareholder in reporting period□ Applicable √ Not applicable3. Actual controller of the CompanyCorporation
                                                         Legal rep./person in      Date         Organization      Register      Main
                 Actual controller
                                                            charge of unit      established        code            capital     businessState-owned Assets Supervision & AdministrationCommission of Wuxi Municipality of JiangsuProvinceOperation result, financial status, cash flow and Not applicable
                                                                          Weifu High-Technology Group Co., Ltd.2013 年度报告全文future development strategy etc.Equity of other domestic/foreign listed company
                                                    Not applicablecontrolled by actual controller in reporting periodChanges of actual controllers reporting period□Applicable √Not applicableProperty 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 applicable4. Particulars about other legal person shareholders with over 10% shares held
                                                    Organiz
    Corporate      Legal rep./person    Date                    Register
                                                     ation                          Main business or management activity
    shareholders    in charge of unit established                 capital
                                                     code
                                                                            Development, manufacture and sales of automotive
                                                                            equipment and engine equipment; engaged in
                                                                            electro-technical, electronic technology, machinery
    ROBERT     Heiko Carrie、                                     EUR 1,200     manufacturing and optical system as well as produce
                             1886-11-15
    BOSCH GMBH Bettina Holzwarth                                  million       iron, metal and plastic products and similar commodity.
                                                                            The company engaged in vary trading business
                                                                            concerned with its business scope and established
                                                                            relevant company concerned with its business scopeIV. Share holding increasing plan proposed or implemented in reporting period fromshareholder 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                                (%)                                   (%)
                                                                                                                     increasedExplanation on othersNot applicable
                                                                     Weifu High-Technology Group Co., Ltd.2013 年度报告全文
    Section VII. Particulars about Directors, Supervisors and Senior
                        Executives and EmployeesI. Changes of shares held by directors, supervisors and senior executives
                                                                                             Increasing Decreasing
                                                                                   Shares                             Shares
                                                       Start dated                          shares held shares held
                              Working                                End date of   held at                            held at
                  Title                    Sex   Age    of office                               in this    in this
    Name                         status                                office term period-beg                         period-end
                                                          term                                  period     period
                                                                                 in (Share)                          (Share)
                                                                                               (Share)    (Share)
    Chen                        Currently
            Chairman                       M     46    2012-03-07 2015-03-06          3,169       1,584                 4,753
    Xuejun                      in office
    Wang     Vice Chairman      Currently in
                                           M     47    2012-03-07 2015-03-06            521        260                    781
    Xiaodong & GM               office
    Rudolf                      Currently in
            Vice Chairman                  M     56    2012-03-07 2015-03-06
    Maier                       office
    Ge                          Currently in
         Director                          M     59    2012-03-07 2015-03-06         25,468     12,734                 38,202
    Songping                    office
    Hua                         Currently in
            Director                       F     49    2012-03-07 2015-03-06
    Wanrong                     office
    Chen                        Currently in
            Director                       M     52    2012-03-07 2015-03-06
    Yudong                      office
           Director,
           Deputy General
                            Currently in
    Ou Jianbin Manager and                     M     47    2012-03-07 2015-03-06
                            office
           financing
           Charger
           Independent      Currently in
    Du Fangci                                  M     69    2012-03-07 2015-03-06
           Director         office
            Independent     Currently in
    Yu Xiaoli                                  F     50    2012-03-07 2015-03-06
            Director        office
            Independent     Currently in
    Xing Min                                   M     59    2012-03-07 2015-03-06
            Director        office
    Zhang    Independent        Currently in
                                           M     49    2012-03-07 2015-03-06
    Hongfa   Director           office
         Chairman of the
    Shi                         Currently in
         Supervisory                       M     51    2012-03-07 2015-03-06          1,782        891                  2,673
    Xingyuan                    office
         Committee
    Gao                         Currently in
         Supervisor                        M     59    2012-03-07 2015-03-06         10,297       5,148                15,445
    Guoyuan                     office
                            Currently in
    Liu Jinjun Supervisor                      M     38    2012-03-07 2015-03-06
                            office
    Miu                         Currently in
            Deputy GM                      M     50    2012-03-07 2015-03-06
    Yuming                      office
    Wang                        Currently in
            Deputy GM                      M     58    2012-03-07 2015-03-06
    Yawei                       office
    Xu                          Currently in
            Deputy GM                      M     42    2012-03-07 2015-03-06          2,000       1,000                 3,000
    Yunfeng                     office
    Zhou        Secretary of    Currently in
                                           M     50    2012-03-07 2015-03-06          2,377       1,188                 3,565
    Weixing     Board           office
    Total            --            --        --    --        --            --          45,614     22,805           0     68,419
                                                                         Weifu High-Technology Group Co., Ltd.2013 年度报告全文II. Post-holdingMajor working experience of directors, supervisors and senior executive at the present in latest five yearsMr. Chen Xuejun, born in May 1967, a university background and a senior economist. He worked for theCompany in July of 1986. He has served as chairman of 4th and 5th Session of supervisory committee, deput ychairman of 6th Session of the Board and General Manager of the Company. Now he serves as Director of Boardof Industry Group, substantial shareholder of the Company and also is the Chairman of 7 th session of the Boardand secretary of Party Committee.Mr. Wang Xiaodong, born in November 1966, a university graduate, MBA and senior engineer. He worked in theCompany in 1989 and has served successively as Division Chief of Products Development Department of theCompany, deputy GM of Bosch Automotive Diesel System Co., Ltd. and supervisor of 6th Session of SupervisoryCommittee of the Company. Now he serves as deputy chairman of 7th session of the Board and GM of theCompany.Mr. Rudolf Maier, born in October 1957, a German citizenship with a doctor degree. He has served successivelyas chairman of commercial vehicle dept. diesel injection system, in German Bosch, chairman of German BoschDiesel System China, deputy chairman of Bosch Automobile Diesel and Director of 5 th and 6th Session of theBoard. Now he serves as executive deputy chairman of technology research of German Bosch Diesel System anddeputy Chairman of 7 th session of the Board.Mr. Ou Jianbin, born in June 1966, a senior college graduated and an accountant. He worked for the Company inJuly 1987, and served as Director and deputy GM of Weifu Jinning, Deputy GM and GM of Weifu Leader. Nowhe 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 servedsuccessively as deputy GM of Industry Group, substantial shareholder of the Company and secretary of disciplinecommittee, Director of 5 th and 6th Session of the Board. Now he serves as vice researcher of Industry Group,substantial shareholder of the Company and Director of 7th session of the Board.Ms. Hua Wanrong, born in September 1964, graduate from University and a senior accountant. She has servedsuccessively as director of investment development dept. of Industry Group, substantial shareholder of theCompany; now she serves as director of financial management dept. of Industry Group and Director of 7th sessionof the Board of the Company.Mr. Chen Yudong, born in September 1961, an America citizenship and a Doctor. He has served successively assenior 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 asPresident of Bosch (China) Investment Ltd. and Director of 7 th session of the Board of the Company.Mr. Du Fangci, born in November 1944 and graduate from University, a senior engineer. He has servedsuccessively as Division Chief of former Automobile Section of Machine Building Industry Ministry and DivisionChief of State Bureau of Machine Building Industry, independent director of 6 th Session of the Board. Now heserves as Consultant of China Association of Automobile Manufactures and Independent Director of 7th session ofthe Board of the Company.Ms. Yu Xiaoli, born in January 1963, doctor from Zhejiang University and a professor. She serves as teachingassistant and professor/deputy professor in Zhejiang University since 1985; and served as independent director of6th Session of the Board. Now she serves as Director of the institute of Zhejiang University Power Machinery andVehicular Engineering Institute, Chairman of Zhejiang Bozong Automobile Technology Co., Ltd., Independent Directorof Yinlun, Independent Director of Wanliyang and Independent Director of 7th session of the Board of the Company.Mr. Xing Min, born in January 1954, graduate from University, MBA and a senior engineer. He has servedsuccessively as vice chief of Bureau of Retired Veteran Cadres of Machinery Dept,, secretary of Party Committeeof Administration Division and deputy director, director of Labor Division, secretary of Party Committee of ChinaNational Heavy Machinery Corporation (CHMC), GM and secretary of Party Committee of China NationalMachine Tools Corporation (CNMTC). Now he serves as vice chairman and secretary-general of China Internal
                                                                      Weifu High-Technology Group Co., Ltd.2013 年度报告全文Combustion Engine Industry Association (CICEIA), Independent Director of Jinan Qingqi, and Independent Directorof Yunyi Electric and Independent Director of 7th session of the Board of the Company.Mr. Zhang Hongfa, born in September 1964, graduate from University, a senior accountant. He has worked inJiangsu Institute of Certified Public Accountants since 1998. Now he serves as deputy secretary and standingdirector of Association, member of Expert Consultative Committee of Jiangsu Procuratorate, special auditor ofJiangsu Audit Office, vice director of professional consultant committee and director of inspection committee ofJiangsu Institute of CPA, Independent Director of Jiangsu Hongbao, Independent Director of Wiscom,Independent Director of HopeRun Technology and Independent Director of 7 th session of the Board of theCompany.Mr. Shi Xingyua, born in May 1962, a postgraduate and senior engineer. He worked in the Company in July 1984. Hehas served successively as director of GM office, GM assistant and deputy GM of the Company as well as director of5th and 6th session of the Board, deputy secretary of party committee and chairman of labor union of the Company. Nowhe serves as chairman of supervisory committee of 7th session of the Board, deputy secretary of party committee andchairman of labor union of the Company.Mr. Gao Guoyuan, born in March 1954, a senior college graduated, master degree and senior engineer. He workedfor the Company in 1970. And has served successively as GM assistant and Director of 4 th, 5th, and 6th Session ofthe Board and deputy GM of the Company. Now he serves as Supervisor of 7th session of Supervisory Committee.Mr. Liu Jinjun, born in September 1975, graduates from University, a MSIE and engineer. He worked in theCompany in August 1995. He has served successively as Manager of H&R administrative and technology salesmanager of Weifu Auto Diesel. Now he serves as director of H&R and Supervisor of 7th session of SupervisoryCommittee.Mr. Miao Yuming, born in April 1963, a university background, MBA and senior engineer. He worked in the Companyin August 1983, and successively served as /director of sales dept. of the Company, assistant GM and deputy GM of theCompany. Now he serves as deputy GM of the Company and deputy GM of Bosch Automobile Diesel.Mr. Wang Yawei, born in May 1955, postgraduate degree, chief senior engineer. He successively served as deputychief of production research institution of the Company, chief designer of technology center, chief engineer of theCompany and deputy GM as well as director of engineering technology institution. Now he serves as deputy GM anddirector 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 theCompany in July 1994, and has successively served as vice director of product research institute of TechnologyCenter of the Company, Manager, assistant GM and GM of sales dept. of Weifu Automobile Diesel. Now heserves as deputy GM of the Company.Mr. Zhou Weixing, born in January 1963, graduate from University, a senior engineer. He worked in the Companyin 1985. He successively served as representative of security affairs, director of security office and secretary of the 5 thand 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
                                             Position                            Start dated of
    Name          Name of shareholder’s units                                                      of office remuneration from
                                                                                  office term
                                                                                                  term    shareholder’s units
    Rudolf                                       Executive vice president of
            ROBERT BOSCH GMBH                                                     2011-01-01              Yes
    Maier                                        technology research of Diesel System
    Ge       Wuxi Industry Development
                                             Vice researchor                     2011-12-01               YesSongping Group Co., Ltd.
    Hua         Wuxi Industry Development        Director of financial management
                                                                                 2011-12-01               Yes
    Wanrong     Group Co., Ltd.                  dept.Chen
            Bosch (China) Investment Ltd. President                              2011-01-01               YesYudong
                                                                        Weifu High-Technology Group Co., Ltd.2013 年度报告全文
    Miu         Bosch Automobile Diesel
                                               Deputy GM                           2012-03-01               Yes
    Yuming      System Co., LtdPost-holding in other unit√Applicable □Not applicable
                                                                                                                        Weather
                                                                                       Start dated                     receiving
                                                                      Position                       End date of
    Name                   Name of other units                                            of office                   remuneration
                                                                                                     office term
                                                                                          term                        from other
                                                                                                                         units
    Du Fangci CAAM                                             Consultant                 2012-04-01                   YesYu Xiaoli
            Zhejiang University Power Machinery            Director                   2000-01-01                   Yes
            and Vehicular Engineering Institute
    Yu Xiaoli Zhejiang Yinlun Machinery Co., Ltd.              Independent director       2011-07-21 2014-07-21 Yes
    Yu Xiaoli Zhejiang Wanliyang Transmission Co., Ltd.        Independent director       2011-09-01 2014-08-31 Yes
            Zhejiang Bozong Automobile Technology
    Yu Xiaoli                                                  Chairman                   2008-04-01                   Yes
            Co., Ltd.
    Xing Min CICEIA                                            Vice chairman and secretary 2008-08-01                  Yes
    Xing Min Jiangsu Yunyi Electric Co., Ltd.                  Independent director       2013-05-15 2016-05-14 Yes
    Xing Min Jinan Qingqi Motorcycle Co., Ltd.                 Independent director       2012-05-25 2015-05-24 Yes
    Zhang       Jiangsu Institute of Certified Public          Vice secretary and standing
                                                                                       1998-06-01                  Yes
    Hongfa      Accountants                                    directorZhang
            Jiangsu Hongbao Hardware Co., Ltd.             Independent director       2010-12-10 2014-03-31 YesHongfaZhang
            Wiscom System Co., Ltd.                        Independent director       2013-04-22 2016-04-21 YesHongfaZhang
            HopeRun Technology Corporation                 Independent director       2013-01-31 2016-01-30 YesHongfaExplanation onpost-holdi The aforesaid are the independent directors of the Companyng in otherunitIII. Remuneration for directors, supervisors and senior executivesDecision-making procedures, determination bases and actual payment of remunerations of directors, supervisorsand senior managementDecision-making procedure: the remuneration and examination committee recommend the remuneration proposalin respect of directors, supervisors and senior management according to the Remuneration and RemunerationIncentive Examination Plan approved at general meeting based on the completion of annual major targets, andshall 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 directlyrelated to economic benefits of the Company which is granted according to completion of each annual benefittarget.
                                                                            Weifu High-Technology Group Co., Ltd.2013 年度报告全文Remuneration of directors, supervisors and senior management of the Company during the reporting periodRemuneration for directors, supervisors and senior executives in reporting period
                                                                                                                In 10 thousand Yuan
                                                                                                        Total
                                                                                          Total                    Remuneration
                                                                                                    remuneration
                                                                                      remuneration                   actually
    Name                     Title              Sex Age      Post-holding status                   obtained from
                                                                                      obtained from                 obtained at
                                                                                                    shareholder’s
                                                                                      the Company                   period-end
                                                                                                         unit
    Chen Xuejun      Chairman                       M        46   Currently in office                   62                         62Wang
                 Vice Chairman, GM              M        47   Currently in office                   62                         62Xiaodong
    Rudolf Maier     Vice Chairman                  M        56   Currently in office
    Ge Songping      Director                       M        59   Currently in office
    Hua Wanrong      Director                       F        49   Currently in office
    Chen Yudong      Director                       M        52   Currently in office
                 Director, standing vice GM
    Ou Jianbin       and person in charge of        M        47   Currently in office                   51                         51
                 finance
    Du Fangci        Independent director           M        69   Currently in office                   8.3                       8.3
    Yu Xiaoli        Independent director           F        50   Currently in office                   8.3                       8.3
    Xing Min         Independent director           M        59   Currently in office                   8.3                       8.3
    Zhang Hongfa Independent director               M        49   Currently in office                   8.3                       8.3
                 Chairman of supervisory
    Shi Xingyuan                                    M        51   Currently in office                   51                         51
                 committee
    Gao Guoyuan      Supervisor                     M        59   Currently in office                   51                         51
    Liu Jinjun       Supervisor                     M        38   Currently in office                   32                         32
    Miu Yuming       Deputy GM                      M        50   Currently in office
    Wang Yawei       Deputy GM                      M        58   Currently in office                   51                         51
    Xu Yunfeng       Deputy GM                      M        42   Currently in office                   51                         51
    Zhou Weixing Secretary of the Board             M        50   Currently in office                   30                         30
    Total                       --                 --   --            --                         474.2          0          474.2Delegated equity incentive for directors, supervisors and senior executives in reporting period□ Applicable √ Not applicableIV. Post-leaving and dismissals for directors, supervisors and senior executives
      Name               Title              Type               Date                                   ReasonsV. Changes of core technology team or key technicians in reporting period (not includingdirectors, supervisors and senior executives)In reporting period, personnel, core technology team or key technicians (not including directors, supervisors andsenior executives) who affects a lot in core competition of the Company has no changes.
                                                              Weifu High-Technology Group Co., Ltd.2013 年度报告全文VI. Particulars of workforce1. Ended as 31 December 2013, the Company owes 5,179 person on-posts while 365 people leaved, the Companyhas no retired employees to bear the cost
    Composition:
      Staff composition                                               Education composition2. Remuneration policy and training program of employees:(1) Remuneration policy: perfect the ―Performance Management System‖ and ―Management System of SalaryWelfare‖ of the Group, standard and well-defined the competency for vary department and every staffs, organizedoperation mechanism and performance remuneration management mode, promote the implementation ofperformance and remuneration sytem in the Group.(2) Trainning program of employees: push forward the establishment of staff’s career development, strengthendevelopment channel mechanism, boost the mid-and-long term training as well as development for the talents,speed up the pace of talent system construction. The Company organized vary type of employee trainingirregularly to the demand of production development. Training methods are more modern and qualify charateristicneeds of the employees, made the staff accept the training more effectively.3. As at 31 December 2013, the labor force dispatched by the Company was 2521, with expenses of RMB 117.75million.
                                                                 Weifu High-Technology Group Co., Ltd.2013 年度报告全文
                           Section VIII. Corporate governanceI. Brief introduction of corporate governanceDuring the reporting period, the Company earnestly implemented the Basic Internal Control Standards forEnterprise and its guidance in strict accordance to the requirements of the Company Law, Securities Law, ListingRules of Shenzhen Stock Exchange as well as Guidance on Standard Operation of Listed Company on MainBoard, continued to improve and enhance legal person governance structure and internal control system, thus tostandardize its operation. There was no difference between the actual governance and requirements provided inrelevant documents of the CSRC.1. General Meeting: the Company convenes general meeting in a strict accordance to the Company Law, Rules ofGeneral Meeting of Listed Company, Listing Rules of Shenzhen Stock Exchange, the Articles of Association aswell as Working Procedures of General Meeting. Voting is made by spot meeting and network votes. Lawyers areinvited to attend the meetings and meeting minutes are well recorded. All the shareholders, especially minorityshareholders, are equally treated and fully exercise their rights.2. Relationship between the controlling shareholders and the Company: the Company is independent from itscontrolling shareholders in respect of personnel, assets and finance, with independent organs and businesses. Theboard, 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 orindirectly, without content from general meeting, and don’t occupy the Company’s capital for any non-operationpurpose.3. The Board: the directors can earnestly perform their duties according to the Listing Rules of Shenzhen StockExchange, the Articles of Association and the Working Procedures of the Board. They are familiar with relatedlaws and rules, as well as the rights, obligations and duties for being a director. At present, the Board of theCompany comprises of 11 directors, among which, 4 are independent directors which accounts for over one thirdof 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 IndependentDirectors and Annual Work System of Independent Directors. They take active participation in meetings of theboard and general meeting. Prior to the participation, they actively acquire the information needed for makingdecisions, 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 CompanyLaw, the Articles of Association and Working Procedures of the Supervisory Committee. At present, thesupervisory committee of the Company comprises of 3 supervisors, among which, 2 are employee rep resentativesupervisors which accounts for over one third of the committee members. Number and constitution of thecommittee accord with relevant laws and rules. For consideration of the entire shareholders, the supervisorycommittee earnestly performs their duties with legal working procedures and high efficient operation. Theysupervise the lawfulness of directors and senior management on their duty performance, pay constant attention toinformation disclosure, issue opinions on legal operation, finance, application of raised proceeds, and fairness of
                                                                    Weifu High-Technology Group Co., Ltd.2013 年度报告全文related transaction, objectivity and truthfulness of the audit report issued by accounting firm, and issue auditopinion on periodic reports of the Company.6. Information Disclosure and investor relation management: the Company can disclose relevant information ontruthful, accurate, complete, prompt and fair basis in strict accordance to the Listing Rules of Shenzhen StockExchange, 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 InsiderManagement System, Accounting System in Respect of Material Mistake in Annual Report InformationDisclosure as well as Investor Relation Management System. Investor relation is well managed, with focus ongood communication between the Company and investors.7. Related transaction: independent directors issue independent opinions on occurred related transactions; thesupervisory committee makes inspection and supervision on occurred related transaction. The related transactionof the Company is fair and reasonable, with legal decision-making procedures and objective pricing bases and fairtransaction price, without harm to the interests of the Company and its shareholders, especially the minorityshareholders. All material transactions are entered into with contracts.8. Internal control: the Company further implements the Basic Internal Control Standards for Enterprise and itsguidance, and establishes internal control system in headquarter and certain important subsidiaries. Aiming toimprove the management, the Company optimized its working procedures, improved internal control system, andidentified and controlled operation risks. As for the detail of ―Self-evaluation report of internal control for year of2013‖, found in the information disclosure website Shenzhen Juchao Website (www.cninfo.com.cn) appointed byShenzhen Stock ExchangeIs there any difference between corporate governance and the requirements of the Company Law and relevant regulations of theCSRC□ Yes √ NoThere is no difference between corporate governance and the requirements of the Company Law and relevant regulations of theCSRCProgress of the special activity for corporate governance, establishment and implementation of insider information registrationmanagement systemDuring the reporting period, in strictly follow the new version of ―Registration and Administration of Insiders‖(released on Juchao Website (www.cninfo.com.cn) dated 16 February 2012) and relevant regulation of―Regulation of Formulate the Registration and Administration of Insiders for Listed Company‖ from CSRC, theCompany do a good job in aspect of inside information confidential as well as the registration and filing overinsiders. After inspection, No insiders of the Company made use of significant and sensitive information to tradestock of the Company before information was disclosed in year of 2013. Also there was not occurrence ofpunishment taken by regulatory authorities due to the implementation of insider registration management systemor on suspicion of insider trading. Directors, supervisor and senior executives of the Company are not trading thestock of the Company against the regulations.II. In the report period, the Company held annual shareholders’ general meeting andextraordinary shareholders’ general meeting1. Annual Shareholders’ General Meeting in the report periodSession
                                                                                               Date of
    of         Date                     Name of meeting motion                     Situation                 Index of disclosure
                                                                                              disclosuremeeting
    2012      2013-05-23 1. Report from the Board for year of 2012                All have been 2013-05-2 (No.: 2013-014)
                                                                              deliberated   4         published on Juchao
                                                                         Weifu High-Technology Group Co., Ltd.2013 年度报告全文
                       2. Report from Supervisory Committee for year of 2012          and passed                   Website(www.cninfo
                                                                                                                   .com.cn)
                       3. Annual Report of 2012 and Summary
                       4. Financial Result Report for year of 2012
                       5. Profit Distribution Plan of 2012
                       6. Prediction of Total daily Related transaction for year of
                       2013
                       7. Engagement of audit firms for financial report of 2013
                       8. Engagement of audit firms for internal control of 2013
                       9. Proposal of change the investment project with fund
                       raised
                       10. Proposal of revised the article of association of the
                       Company2. Extraordinary shareholders’ general meeting in the report period
                                              Name of meeting
    Session of meeting             Date                                      Situation           Date of disclosure   Index of disclosure
                                                 motionIII. Responsibility performance of independent directors in report period1. The attending of independent directors to Board meetings and shareholders’ general meeting
                                               The attending of independent directors
                       Times of Board
                                                                 Times of                                             Whether absent
                           meeting                                                    Times of
    Name of independent                          Times of                                                   Times of      the Meeting for
                         supposed to                           attending by           entrusted
    director                                Presence                                                   Absence       the second time
                        attend in the                         communication           presence
                                                                                                                       in a row or not
                        report period
    Du Fangci                                6                1                  5                                        No
    Yu Xiaoli                                6                1                  5                                        No
    Xing Min                                 6                1                  5                                        No
    Zhang Hongfa                             6                1                  5                                        NoTimes attending shareholders’ general
                                                                                                                                     1meeting from independent directorsExplanation of absent the Board Meeting for the second time in a row2. Objection for relevant events from independent directorsWhether independent directors come up with objection about company’s relevant matters or not□ Yes √ NoIndependent directors has no objections for relevant events in reporting period3. Other explanation about responsibility performance of independent directorsWhether the opinions from independent directors have been adopted or not√Yes □ NoIndependent directors’ explanation on adoption or not adoption of relevant recommendations of the CompanyThe independent directors earnestly performed their duties endowed by relevant laws, regulations, the Articles ofAssociation and independent director system pursuant to the Company Law, Opinions on EstablishingIndependent 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
                                                                       Weifu High-Technology Group Co., Ltd.2013 年度报告全文actively acquire the information needed for making decisions. They considered each proposal in meetings andactively joined discussion and offered their recommendations. They issued independent opinions on significantissues. Diligent, loyal and responsible were their attitude when performing their duties, so as to fully exercise theirinfluences as independent directors. They protected the interests of the Company and shareholders. Independentdirectors have no objection in relation to the relevant issues of the Company.IV. Performance of subordinate committees of the Board in reporting period1. One meeting of Audit committee of the Board, deliberated the followed: ―Financial Result Report of 2012‖,―Annual Report of 2012 and its Summary‖, ―Conclusion Report of auditing for year of 2012‖, ―Engagement ofaudit institute for financial report of 2013‖, ―Engagement of audit institute for internal control of the Company of2013‖.2. One meeting of remuneration and appraisal committee of the Board, deliberate ―Remuneration evaluation andpayment for senior executive of 2012‖;3. One meeting of strategy committee of the Board, deliberate ―Operation target for year of 2013‖V. Works from Supervisory CommitteeWhether the Company has risks or not in reporting period that found in supervisory activity from supervisory committee□ Yes √ NoSupervisory committee has no objection about supervision events in reporting periodVI. Independence of the Company in aspect of business, personnel, assets, institute andfinance relative to its controlling shareholderDuring the reporting period, the Company continued to keep independent in business, personnel, asset, organ andfinance, 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 operationbusiness 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 generalmanager, deputy general manager, financial principal, marketing principal, secretary to the board and other seniormanagement only took positions in the Company and received remuneration from the Company, and took noposition in substantial shareholders. Directors and senior management of the Company were determined throughlegal procedures; no controlling shareholder intervened in engagement and dismissal of personnel which shouldbe determined by the board and general meeting.3. Asset: there was clear property relation between the Company and substantial shareholders. It had independentand complete production, supply and sales system. Industry property, trademark, non-patent technology and otherintangible assets were all owned by the Company.4. Organ: the Company had sound organ system and independent internal organs which were totally separatedwith controlling shareholders. There was no subordinate relation and normal operation can be promised. The
                                                                        Weifu High-Technology Group Co., Ltd.2013 年度报告全文Company set general meeting, the board and the supervisory committee and other decision-making andsupervision organs. The production operation and administrative management (including labor force, finance,technology, etc) were totally independent from controlling shareholders. The office organ and productionoperation place were separated from controlling shareholders, without joint operation.5. Finance: the Company set independent finance department, and established independent accounting calculationsystem and finance management system. It had independent bank account and paid tax independently.VII. Horizontal CompetitionNo horizontal competitions exist in the Company, controlling shareholders and actual controllersVIII. Appraisal and incentive mechanism for senior executivesEngagement, examination and incentives of senior management are made according to relevant provisions in theCompany Law and the Articles of Association. According to the Remuneration and Remuneration IncentiveExamination Plan, the Company determined the annual remuneration of senior management which comprised ofbasic annual salary and performance-related remuneration. Basic annual salary was determined according tospecific positions and performance-related remuneration was directly related to economic benefits of theCompany which was granted according to completion of each annual benefit target. Till now, the Company hasnot implemented equity incentive measures.
                                                                          Weifu High-Technology Group Co., Ltd.2013 年度报告全文
                                         Section IX. Internal controlI. Internal control constructionIn accordance with the ―Basic Norms of Internal Control for Enterprise‖ and matching guidelines as well as otherrequirement from internal control supervision, the Company continues and fully promote the construction ofinternal control. Focusing on main units, major business and high-risk area, formulate a self-evaluation of internalcontrol and release procedure of the reports. Furthermore, engaged qualified accounting firms to exercise audit forthe effective-ness of internal control regularly. The evaluation report and audit report for internal control in everyyear are disclosed timely in line with relevant supervision requirement since the internal control constructionimplemented in 2012. In 2013, by means of organized the department function and mechanism procedures,optimized the deficits and track corrective, as well as internal activity of internal audit, the Company promotes anupgrade in management and ability for the internal control. Under the principle of benefit maximization andpossible to avoid risks, the internal control system of the Company are being improved continuously. Overallperformance of the internal control system of the Company can be found in ―Appraisal Report of Internal Controlfor year of 2013‖.II. Statement of the Board on responsibility of internal controlIn line with the regulation mechanism of enterprise’ internal control, Board of the Company has responsibility toestablished and improve its internal control and implemented internal control effectively, evaluate theeffectiveness and release the evaluation report of internal control strictly according to the facts. Supe rvisorycommittee kept eyes on the implementation and establishment of internal control from the Board. Managers areresponsible for organizing and leading the daily running of company internal control. Board of the Company,Supervisory Committee, Directors, Supervisors and Senior Executives guarantee that there are no any fictitiousstatements, misleading statements or important omissions carried in the ―Appraisal Report of Internal Control foryear of 2013‖, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completionof the whole contents. The Company’s internal control aims at guarantee a legal operation managementreasonably, assets safety, the real and completion of the financial report and relevant information, improve thebusiness results and achieve the development strategy. Because of the inherent feature of internal control,reasonable assurance only can be provided for the realization of the above mentioned targets. Furthermore,inappropriate internal control may be resulted by the changes of conditions, or failure of controlling policy andprocedures implementation, the validity of internal control that calculated according to evaluation results ofinternal control has a certain risks.III. Bases for construction of financial report internal controlThe Company carry out internal control evaluation in line with the regulation system of enterprise’s internal control and ― BasicNorms of Internal Control for Enterprise‖ jointly issued by five ministries of the State, and ―Internal Control Guidelines forListed Companies‖.IV. Self-evaluation report of internal control
                           Details of major defects in self-evaluation report that found in reporting periodNo major defect has been found in the report period according to the standard of defects in self-evaluation.Date of self-evaluation report of
                                       2014-04-15internal control disclosed (full-text)
    Index of self-evaluation report of    ‖Self-evaluation report of internal control for 2013‖, more details found in Juchao websiteinternal control disclosed(full-text) (www.cninfo.com.cn) appointed by Shenzhen Stock ExchangeV. Audit report of internal control√ Applicable □ Not applicable
                                                                          Weifu High-Technology Group Co., Ltd.2013 年度报告全文
                                     Auditing comments section for audit report of internal controlAudit institute considers that: according to relevant regulations and ―Basic Rules of Internal Control for Enterprises‖, WeifuHigh-Technology Co., Ltd., in all major aspects, keeps an efficiency of internal control of financial report dated 31 December 2013.Disclosure date of audit report of
                                      2014-04-15internal control (full-text)
    Index of audit report of internal     ‖Audit report of internal control for year of 2013‖, more details found in Juchao website
    control (full-text)                   (www.cninfo.com.cn) appointed by Shenzhen Stock ExchangeWhether modified audit opinions carried out for the audit report of internal control from CPA or not□ Yes √ NoWhether audit report of internal control, issued by CPA, is in agreement with self-evaluation report, issued by the Board√ Yes □ NoVI. Establishment and enforcement of Accountability Mechanism for Major Errors in AnnualReportThe ―accountability mechanism for major errors in annual report disclosure‖ was deliberated and approved on 20April 2010, relevant notice found in Juchao website (www.cninfo.com.cn). In reporting period, no majorcorrection for accounting errors, supplementation for major missing information and correction of performanceforecast been found.
                                                                Weifu High-Technology Group Co., Ltd.2013 年度报告全文
                                    Section X. Financial ReportI. Audit report
    Type of audit opinion                                      Standard unqualified opinion
    Signing date of audit report                               2014-04-11
                                                           Jiangsu Gongzheng Tianye Certified Public Accountants Co.,Name of audit institute
                                                           Ltd. (LLP)
    Document serial of audit report                            Su Gong W[2014]No.: A472
    CPA’s name                                                Bo Lingjing, Liu Darong
                                                 Auditor’s ReportTo all shareholders of Weifu High-Technology Group Co., Ltd.:We have audited the Companying consolidated and parent Company’s financial statements of WeifuHigh-Technology Group Co., Ltd (―Weifu High-Tech‖), including balance sheet of 31 December 2013, and profitstatement, and cash flow statement, and statement on changes of shareholders’ equity for the year ended, andnotes to the financial statements for the year ended.I. Management’s responsibility for the financial statementsManagement of the Company is responsible for prepare and present financial statement of the Company, whichincluding: (1) Prepare financial statements with fair presentation in line with Accounting Standards for BusinessEnterprises; (2) Designing, executed and maintaining necessary internal control in order to prevent fundamentalmiscarrying in financial statement from fraudulent or errors.II. Auditor's responsibilityOur responsibility is to express an audit opinion on these financial statements based on our audit. We performedour audit in accordance with Chinese Certified Public Accountants' Auditing Standards. Those standards requireus to comply with professional ethics, and to plan and perform our audit so as to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures of thefinancial statements. The selective audit procedures depend on auditor's judgment, including the evaluation of therisk of material misstatement of the consolidated financial statements due to frauds or errors. When evaluatingrisk, we consider internal control related to financial statements, in order to design auditing procedures, but not forthe purpose of expressing an opinion on the internal control's effectiveness. An audit also includes assessing theappropriateness of the accounting policies adopted and the reasonableness of the accounting estimates made bymanagement, 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
                                                                Weifu High-Technology Group Co., Ltd.2013 年度报告全文opinion.III. Auditing opinionIn our opinion, in all material aspects, Weifu Hi-Tech’s financial statements have been prepared inaccordance with the Enterprises Accounting Standards and Enterprises Accounting System, andthey fairly present the financial status of the consolidated and parent company’s as of December 31,2013, and its operation results and cash flows for the year ended.
                  Jiangsu Gongzheng Tianye CPA Co., Ltd. (LLP.)         Chinese CPA        Bo Lingjing
                            Wuxi China                                 Chinese CPA         Liu Darong
                                                                     11 April 2014(II) Financial statementUnit in note of financial statement refers to CNY: RMB (Yuan)1. Consolidated balance sheetPrepared by Weifu High-Technology Group Co., Ltd
                                                                                                                  In RMB
                                    Item                                 Closing balance           Opening balanceCurrent assets:
    Monetary fund                                                          2,447,555,672.40             2,600,714,219.36
    Settlement provisions
    Capital lent
    Transaction finance asset
    Notes receivable                                                       1,090,280,233.40              898,720,248.22
    Account receivable                                                     1,132,835,466.09             1,036,392,701.40
    Accounts paid in advance                                                 174,401,410.49              143,500,001.15
    Insurance receivable
    Reinsurance receivables
    Contract reserve of reinsurance receivable
    Interest receivable                                                       51,438,634.58               37,619,858.83
    Dividend receivable                                                       22,937,046.01              107,616,777.91
    Other receivables                                                         11,486,223.97               10,147,631.52
    Purchase restituted finance asset
    Inventories                                                              986,790,491.70              759,505,087.10
    Non-current asset due within one year
    Other current assets                                                   1,580,056,398.02              500,118,243.81
    Total current assets                                                        7,497,781,576.66             6,094,334,769.30Non-current assets:
                                                 Weifu High-Technology Group Co., Ltd.2013 年度报告全文
    Granted entrust loans and advances
    Financial assets available for sale                       385,009,400.00           265,689,600.00
    Hold-to-maturity investment                               400,000,000.00           649,000,000.00
    Long-term account receivable
    Long-term equity investment                             2,622,500,708.20         2,192,275,239.86
    Investment real estate                                      3,424,363.44             3,881,346.30
    Fixed assets                                            1,471,037,804.88         1,404,806,234.18
    Construction in process                                   199,463,338.80            65,649,548.48
    Engineering material
    Disposal of fixed asset
    Productive biological assets
    Oil and gas asset
    Intangible assets                                         360,284,868.85           280,305,865.12
    Expense on Research and Development
    Goodwill                                                    1,784,086.79             1,784,086.79
    Long-term expenses to be apportioned                           16,331,775.24            12,227,687.75
    Deferred income tax asset                                 116,614,808.05            86,019,554.56
    Other non-current asset
    Total non-current asset                                      5,576,451,154.25         4,961,639,163.04
    Total assets                                                13,074,232,730.91        11,055,973,932.34Current liabilities:
    Short-term loans                                          399,500,000.00            70,000,000.00
    Loan from central bank
    Absorbing deposit and interbank deposit
    Capital borrowed
    Transaction financial liabilities
    Notes payable                                             383,418,397.65           278,184,200.63
    Accounts payable                                        1,476,781,979.39         1,133,511,331.25
    Accounts received in advance                               42,297,015.90            52,622,311.97
    Selling financial asset of repurchase
    Commission charge and commission payable
    Wage payable                                              295,838,993.71           276,292,169.70
    Taxes payable                                              43,814,597.61            27,471,710.92
    Interest payable                                              996,716.67               220,500.00
    Dividend payable
    Other accounts payable                                     87,324,894.86            71,364,242.12
    Reinsurance payables
    Insurance contract reserve
    Security trading of agency
    Security sales of agency
    Non-current liabilities due within 1 year
    Other current liabilities                                  26,314,544.23            22,102,265.27
    Total current liabilities                                    2,756,287,140.02         1,931,768,731.86Non-current liabilities:
    Long-term loans                                            60,000,000.00
    Bonds payable
                                                                 Weifu High-Technology Group Co., Ltd.2013 年度报告全文
    Long-term account payable                                                  19,191,818.00            16,790,909.00
    Special accounts payable                                                   25,655,817.40
    Projected liabilities
    Deferred income tax liabilities                                            19,938,394.40            12,551,182.40
    Other non-current liabilities                                             195,506,040.61           133,879,108.31
    Total non-current liabilities                                                  320,292,070.41           163,221,199.71
    Total liabilities                                                            3,076,579,210.43         2,094,989,931.57Owners’ equity(or Shareholders’ equity):
    Paid-in capital( or share capital)                                         1,020,200,992.00           680,133,995.00
    Capital public reserve                                                  3,729,042,104.57         3,689,694,029.52
    Less: Inventory shares
    Reasonable reserve                                                           1,255,141.19
    Surplus public reserve                                                    433,608,687.76           340,066,997.50
    Provision of general risk
    Retained profit                                                         4,416,658,298.29         3,946,085,733.22
    Balance difference of foreign currency translation
    Total owner’s equity attributable to parent Company                         9,600,765,223.81         8,655,980,755.24
    Minority interests                                                             396,888,296.67           305,003,245.53
    Total owner’s equity( or shareholders equity)                               9,997,653,520.48         8,960,984,000.77
    Total liabilities and owner’s equity( or shareholders equity)              13,074,232,730.91        11,055,973,932.34Legal Representative: Chen XuejunPerson in charge of accounting works: Ou JianbinPerson in charge of accounting institute: Ou Jianbin2. Balance sheet of parent companyPrepared by Weifu High-Technology Group Co., Ltd
                                                                                                               In RMB
                                       Item                               Closing balance         Opening balanceCurrent assets:
    Monetary fund                                                           1,485,894,410.54         1,566,564,504.46
    Transaction finance asset
    Notes receivable                                                          348,205,626.83           316,494,407.33
    Account receivable                                                        665,090,625.52           654,141,638.40
    Accounts paid in advance                                                   85,580,666.96            58,571,931.67
    Interest receivable                                                        45,000,000.00            31,963,747.72
    Dividend receivable                                                        21,925,117.50           102,868,978.88
    Other receivables                                                            2,907,285.14           23,509,170.62
    Inventory                                                                 226,017,992.28           204,214,205.28
    Non-current asset due within one year
    Other current assets                                                    1,562,100,000.00           490,000,000.00
    Total current assets                                                         4,442,721,724.77         3,448,328,584.36Non-current assets:
    Financial assets available for sale                                       385,009,400.00           265,689,600.00
    Hold-to-maturity investment                                               400,000,000.00           649,000,000.00
                                                 Weifu High-Technology Group Co., Ltd.2013 年度报告全文
    Long-term account receivable
    Long-term equity investment                             3,632,576,088.69         3,174,930,767.12
    Investment real estate
    Fixed assets                                              640,596,120.54           663,822,135.66
    Construction in process                                   136,613,517.22            36,037,172.50
    Engineering material
    Disposal of fixed asset
    Productive biological assets
    Oil and gas asset
    Intangible assets                                         198,885,843.05           183,908,044.23
    Expense on Research and Development
    GoodwillLong-term expenses to be apportioned
    Deferred income tax asset                                  64,315,609.74            49,794,919.70
    Other non-current asset
    Total non-current asset                                      5,457,996,579.24         5,023,182,639.21
    Total assets                                                 9,900,718,304.01         8,471,511,223.57Current liabilities:
    Short-term loans                                          220,000,000.00
    Transaction financial liabilities
    Notes payable                                             191,790,000.00            96,780,000.00
    Accounts payable                                          596,257,017.04           524,096,818.13
    Accounts received in advance                               17,577,849.84             7,612,539.20
    Wage payable                                              183,313,610.02           180,177,025.37
    Taxes payable                                              38,260,172.61            21,422,094.21
    Interest payable                                              340,511.11
    Dividend payable
    Other accounts payable                                    219,154,760.28            62,293,809.89
    Non-current liabilities due within 1 year
    Other current liabilities
    Total current liabilities                                    1,466,693,920.90           892,382,286.80Non-current liabilities:
    Long-term loans
    Bonds payable
    Long-term account payable
    Special accounts payable                                    7,390,735.29
    Projected liabilities
    Deferred income tax liabilities                            17,470,485.00             9,972,240.00
    Other non-current liabilities                             181,898,815.24           115,759,108.31
    Total non-current liabilities                                  206,760,035.53           125,731,348.31
    Total liabilities                                            1,673,453,956.43         1,018,113,635.11Owners’ equity(or Shareholders’ equity):
    Paid-in capital( or share capital)                         1,020,200,992.00           680,133,995.00
    Capital public reserve                                  3,760,247,474.50         3,717,757,419.50
    Less: Inventory shares
    Reasonable reserve
                                                                          Weifu High-Technology Group Co., Ltd.2013 年度报告全文
    Surplus public reserve                                                             433,608,687.76           340,066,997.50
    Provision of general risk
    Retained profit                                                                  3,013,207,193.32         2,715,439,176.46
    Balance difference of foreign currency translation
    Total owner’s equity( or shareholders equity)                                        8,227,264,347.58         7,453,397,588.46
    Total liabilities and owner’s equity( or shareholders equity)                        9,900,718,304.01         8,471,511,223.57Legal Representative: Chen XuejunPerson in charge of accounting works: Ou JianbinPerson in charge of accounting institute: Ou Jianbin3. Consolidated profit statementPrepared by Weifu High-Technology Group Co., Ltd
                                                                                                                           In RMB
                                        Item                                         This Period             Last Period
    I. Total operating income                                                             5,589,307,689.55         5,015,283,418.71
    Including: Operating income                                                           5,589,307,689.55         5,015,283,418.71
              Interest income
    Insurance gained
    Commission charge and commission income
    II. Total operating cost                                                              4,999,434,131.48         4,386,118,820.24
    Including: Operating cost                                                             4,169,807,309.66         3,773,477,621.24
    Interest expense
    Commission charge and commission expense
    Cash surrender value
    Net amount of expense of compensation
    Net amount of withdrawal of insurance contract reserve
    Bonus expense of guarantee slip
    Reinsurance expense
    Operating tax and extras                                                            32,458,458.22            31,832,916.09
    Sales expenses                                                                     207,152,852.24           190,643,487.97
    Administration expenses                                                            558,285,409.97           444,544,043.03
    Financial expenses                                                                  -56,891,090.69          -75,494,945.74
    Losses of devaluation of asset                                                      88,621,192.08            21,115,697.65
    Add: Changing income of fair value(Loss is listed with ―-‖)
    Investment income (Loss is listed with ―-‖)                                      642,493,295.01           396,219,312.90
    Including: Investment income on affiliated Company and joint venture               549,177,316.88           368,812,771.97
           Exchange income (Loss is listed with ―-‖)
    III. Operating profit    (Loss is listed with ―-‖)                                  1,232,366,853.08         1,025,383,911.37
    Add: Non-operating income                                                           37,547,250.75            20,505,678.63
    Less: Non-operating expense                                                         12,604,472.52             7,872,719.89
    Including: Disposal loss of non-current asset                                         4,013,576.76            1,364,127.23
    IV. Total Profit   (Loss is listed with ―-‖)                                        1,257,309,631.31         1,038,016,870.11
    Less: Income tax                                                                   103,016,098.36           103,779,577.90
    V. Net profit (Net loss is listed with ―-‖)                                         1,154,293,532.95           934,237,292.21
    Including: net profit realized for merged party before combination
                                                                       Weifu High-Technology Group Co., Ltd.2013 年度报告全文
    Net profit attributable to owner’s equity of parent Company                   1,108,221,450.83           889,326,939.46
    Minority shareholders’ gains and losses                                             46,072,082.12            44,910,352.75
    VI. Earnings per share                                                                --                       --
    i. Basic earnings per share                                                                     1.09                       0.9
    ii. Diluted earnings per share                                                                  1.09                       0.9
    VII. Other consolidated income                                                        42,490,055.00            56,509,360.00
    VIII. Total consolidated income                                                    1,196,783,587.95           990,746,652.21
    Total consolidated income attributable to owners of parent Company                1,150,711,505.83          945,836,299.46
    Total consolidated income attributable to minority shareholders                  46,072,082.12            44,910,352.75Legal Representative: Chen XuejunPerson in charge of accounting works: Ou JianbinPerson in charge of accounting institute: Ou Jianbin4. Profit statement of parent companyPrepared by Weifu High-Technology Group Co., Ltd
                                                                                                                        In RMB
                                        Item                                      This Period             Last Period
    I. Operation income                                                                 2,462,065,611.26        2,132,088,989.17
    Less: Operation cost                                                             1,983,561,133.99         1,782,615,888.55
    Operating tax and extras                                                         12,447,486.53            11,198,659.30
    Sales expenses                                                                  103,626,329.78           100,733,250.93
    Administration expenses                                                         207,405,705.89           175,914,711.14
    Financial expenses                                                               -51,090,607.00          -74,305,747.48
    Losses of devaluation of asset                                                   43,991,263.31             6,802,374.73
    Add: Changing income of fair value(Loss is listed with ―-‖)
    Investment income (Loss is listed with ―-‖)                                   807,499,619.20           630,849,457.36
    Including: Investment income on affiliated Company and joint venture            495,674,234.35           324,586,557.36
    II. Operating profit    (Loss is listed with ―-‖)                                  969,623,917.96           759,979,309.36
    Add: Non-operating income                                                          6,257,329.56            9,925,274.63
    Less: Non-operating expense                                                        4,500,884.37            3,291,317.72
    Including: Disposal loss of non-current asset                                      1,482,742.03                618,130.74
    III. Total Profit   (Loss is listed with ―-‖)                                      971,380,363.15           766,613,266.27
    Less: Income tax                                                                 35,963,460.53            27,740,293.15
    IV. Net profit (Net loss is listed with ―-‖)                                       935,416,902.62           738,872,973.12
    V. Earnings per share                                                                 --                       --i. Basic earnings per shareii. Diluted earnings per share
    VI. Other consolidated income                                                         42,490,055.00            56,509,360.00
    VII. Total consolidated income                                                       977,906,957.62           795,382,333.12Legal Representative: Chen XuejunPerson in charge of accounting works: Ou JianbinPerson in charge of accounting institute: Ou Jianbin
                                                                         Weifu High-Technology Group Co., Ltd.2013 年度报告全文5. Consolidated cash flow statementPrepared by Weifu High-Technology Group Co., Ltd
                                                                                                                         In RMB
                                             Item                                            This Period         Last PeriodI. Cash flows arising from operating activities:
    Cash received from selling commodities and providing labor services                   6,172,087,848.64    6,257,141,260.17
    Net increase of customer deposit and interbank deposit
    Net increase of loan from central bank
    Net increase of capital borrowed from other financial institution
    Cash received from original insurance contract fee
    Net cash received from reinsurance business
    Insured savings and net increase of investment
    Net increase of disposal of transaction financial asset
    Cash received from interest, commission charge and commission
    Net increase of capital borrowed
    Net increase of returned business capital
    Write-back of tax received                                                               36,344,057.52       44,379,611.51
    Other cash received concerning operating activities                                     175,739,109.03      141,039,458.18
      Subtotal of cash inflow arising from operating activities                            6,384,171,015.19    6,442,560,329.86
    Cash paid for purchasing commodities and receiving labor service                      3,998,317,410.40    3,903,794,051.95
    Net increase of customer loans and advances
    Net increase of deposits in central bank and interbank
    Cash paid for original insurance contract compensation
    Cash paid for interest, commission charge and commission
    Cash paid for bonus of guarantee slip
    Cash paid to/for staff and workers                                                      708,768,497.02      542,762,958.26
    Taxes paid                                                                              434,633,292.96      451,789,302.20
    Other cash paid concerning operating activities                                         438,493,691.68      378,454,798.99
    Subtotal of cash outflow arising from operating activities                            5,580,212,892.06    5,276,801,111.40
    Net cash flows arising from operating activities                                        803,958,123.13    1,165,759,218.46II. Cash flows arising from investing activities:
    Cash received from recovering investment                                              1,747,750,000.00        9,291,900.00
    Cash received from investment income                                                    215,105,271.93      235,527,376.75
    Net cash received from disposal of fixed, intangible and other long-term assets          27,964,427.20       14,315,716.80
    Net cash received from disposal of subsidiaries and other units
    Other cash received concerning investing activities                                      46,086,392.49
    Subtotal of cash inflow from investing activities                                     2,036,906,091.62      259,134,993.55
    Cash paid for purchasing fixed, intangible and other long-term assets                   443,371,774.96      256,150,809.13
    Cash paid for investment                                                              2,648,881,501.00    1,660,673,000.00
    Net increase of mortgaged loans
    Net cash received from subsidiaries and other units
    Other cash paid concerning investing activities                                           1,950,855.71
    Subtotal of cash outflow from investing activities                                    3,094,204,131.67    1,916,823,809.13
    Net cash flows arising from investing activities                                      -1,057,298,040.05   -1,657,688,815.58III. Cash flows arising from financing activities:
    Cash received from absorbing investment                                                   9,120,000.00    2,862,720,552.93
                                                                         Weifu High-Technology Group Co., Ltd.2013 年度报告全文
    Including: Cash received from absorbing minority shareholders’ investment by
                                                                                               9,120,000.00      12,596,300.00subsidiaries
    Cash received from loans                                                                879,000,000.00     646,000,000.00
    Cash received from issuing bonds
    Other cash received concerning financing activities                                                          8,404,657.07
       Subtotal of cash inflow from financing activities                                     888,120,000.00   3,517,125,210.00
    Cash paid for settling debts                                                            517,500,000.00   1,074,000,000.00
    Cash paid for dividend and profit distributing or interest paying                       261,005,069.72     255,426,930.95
    Including: Dividend and profit of minority shareholder paid by subsidiaries              38,175,305.87      32,276,273.12
    Other cash paid concerning financing activities                                             339,091.00       8,743,748.07
    Subtotal of cash outflow from financing activities                                      778,844,160.72   1,338,170,679.02
    Net cash flows arising from financing activities                                        109,275,839.28   2,178,954,530.98IV. Influence on cash due to fluctuation in exchange rate
    V. Net increase of cash and cash equivalents                                                -144,064,077.64   1,687,024,933.86
    Add: Balance of cash and cash equivalents at the period -begin                             2,432,803,698.08     745,778,764.22
    VI. Balance of cash and cash equivalents at the period –end                               2,288,739,620.44   2,432,803,698.08Legal Representative: Chen XuejunPerson in charge of accounting works: Ou JianbinPerson in charge of accounting institute: Ou Jianbin6. Cash flow statement of parent companyPrepared by Weifu High-Technology Group Co., Ltd
                                                                                                                       In RMB
                                            Item                                             This Period       Last PeriodI. Cash flows arising from operating activities:
    Cash received from selling commodities and providing labor services                   2,843,747,396.06   2,778,522,440.94
    Write-back of tax received
    Other cash received concerning operating activities                                     295,709,406.43     270,278,087.12
      Subtotal of cash inflow arising from operating activities                            3,139,456,802.49   3,048,800,528.06
    Cash paid for purchasing commodities and receiving labor service                      1,944,119,560.86   1,881,854,176.67
    Cash paid to/for staff and workers                                                      290,926,971.54     207,786,568.53
    Taxes paid                                                                              153,325,573.83     135,099,550.27
    Other cash paid concerning operating activities                                         181,221,420.94     161,194,834.36
    Subtotal of cash outflow arising from operating activities                            2,569,593,527.17   2,385,935,129.83
    Net cash flows arising from operating activities                                        569,863,275.32     662,865,398.23II. Cash flows arising from investing activities:
    Cash received from recovering investment                                              1,747,750,000.00       1,340,000.00
    Cash received from investment income                                                    443,108,613.13     515,364,899.46
    Net cash received from disposal of fixed, intangible and other long-term assets           2,378,444.83       4,045,574.34
    Net cash received from disposal of subsidiaries and other units
    Other cash received concerning investing activities                                       7,900,000.00
    Subtotal of cash inflow from investing activities                                     2,201,137,057.96     520,750,473.80
    Cash paid for purchasing fixed, intangible and other long-term assets                   214,059,196.20      64,864,314.72
    Cash paid for investment                                                              2,665,163,188.00   1,890,673,000.00
    Net cash received from subsidiaries and other units
                                                                         Weifu High-Technology Group Co., Ltd.2013 年度报告全文
    Other cash paid concerning investing activities                                             509,264.71
    Subtotal of cash outflow from investing activities                                         2,879,731,648.91   1,955,537,314.72
    Net cash flows arising from investing activities                                       -678,594,590.95   -1,434,786,840.92III. Cash flows arising from financing activities:
    Cash received from absorbing investment                                                                  2,850,124,252.93
    Cash received from loans                                                                440,000,000.00     570,000,000.00
    Cash received from issuing bonds
    Other cash received concerning financing activities                                                          8,404,657.07
    Subtotal of cash inflow from financing activities                                       440,000,000.00   3,428,528,910.00
    Cash paid for settling debts                                                            220,000,000.00   1,035,000,000.00
    Cash paid for dividend and profit distributing or interest paying                       213,403,709.61     220,773,699.76
    Other cash paid concerning financing activities                                                              8,404,657.07
    Subtotal of cash outflow from financing activities                                      433,403,709.61   1,264,178,356.83
      Net cash flows arising from financing activities                                         6,596,290.39   2,164,350,553.17IV. Influence on cash due to fluctuation in exchange rate
    V. Net increase of cash and cash equivalents                                                -102,135,025.24   1,392,429,110.48
    Add: Balance of cash and cash equivalents at the period -begin                             1,524,564,526.97     132,135,416.49
    VI. Balance of cash and cash equivalents at the period –end                               1,422,429,501.73   1,524,564,526.97Legal Representative: Chen XuejunPerson in charge of accounting works: Ou JianbinPerson in charge of accounting institute: Ou Jianbin
                                                                                                                                     Weifu High-Technology Group Co., Ltd.2013 年度报告全文7. Consolidate Changes of Owners’ EquityPrepared by Weifu High-Technology Group Co., LtdThis Period
                                                                                                                                                                                          In RMB
                                                                                                             This Period
                                                                       Owners’ equity attributable to the parent Company
              Item                                                                                                                                                               Total Owners’
                                                                              Less:                                     General                             Minority’s equity
                                      Paid-in capital(or                               Reasonable                                                                                    equity
                                                           Capital reserves Treasury                  Surplus reserves    risk   Retained profit    Other
                                       share capital)                                   reserve
                                                                             Stock                                     provision
       I. Balance at the end of the
                                        680,133,995.00 3,689,694,029.52                                340,066,997.50            3,946,085,733.22             305,003,245.53 8,960,984,000.77last year
       Add:       Changes        ofaccounting policy
       Error correction of the lastperiod
             OtherII. Balance at the beginning of
                                        680,133,995.00 3,689,694,029.52                                340,066,997.50            3,946,085,733.22             305,003,245.53 8,960,984,000.77this yearIII. Increase/ Decrease in this
    year (Decrease is listed with           340,066,997.00       39,348,075.05             1,255,141.19     93,541,690.26             470,572,565.07               91,885,051.14 1,036,669,519.71―-‖)
    (I) Net profit                                                                                                               1,108,221,450.83              46,072,082.12 1,154,293,532.95
    (II) Other consolidated income                               42,490,055.00                                                                                                         42,490,055.00
    Subtotal of (I) and (II)                                    42,490,055.00                                                       1,108,221,450.83              46,072,082.12 1,196,783,587.95(III) Owners’ devoted and
                                                              -3,141,979.95                                                                                    73,309,536.01       70,167,556.06decreased capital
    1. Owners’ devoted capital                                                                                                                                    73,309,536.01       73,309,536.012. Amount calculated intoowners’ equity paid in shares
    3. Other                                                      -3,141,979.95                                                                                                        -3,141,979.95
    (IV) Profit distribution                340,066,997.00                                                  93,541,690.26            -637,648,885.76               -27,705,305.87    -231,745,504.37
    1. Withdrawal of surplus
                                                                                                        93,541,690.26              -93,541,690.26reserves2. Withdrawal of general riskprovisions
    3. Distribution for owners (or                                                                                                   -204,040,198.50               -27,705,305.87    -231,745,504.37
                                                                                                                                      Weifu High-Technology Group Co., Ltd.2013 年度报告全文shareholders)
    4. Other                             340,066,997.00                                                                               -340,066,997.00(V) Carrying forward internalowners’ equity
    1.      Capital     reservesconversed to capital (sharecapital)
    2.      Surplus     reservesconversed to capital (sharecapital)
    3. Remedying loss withsurplus reserve4.Other
    (VI) Reasonable reserve                                                               1,255,141.19                                                                 208,738.88       1,463,880.071. Withdrawal in the report
                                                                                     17,366,734.77                                                               2,119,500.71      19,486,235.48period
    2. Usage in the report period                                                        16,111,593.58                                                               1,910,761.83      18,022,355.41(VII)OthersIV. Balance at the end of the
                                    1,020,200,992.00 3,729,042,104.57                 1,255,141.19 433,608,687.76                4,416,658,298.29             396,888,296.67 9,997,653,520.48report periodAmount at last year
                                                                                                                                                                                          In RMB
                                                                                                          Amount at last year
                                                                      Owners’ equity attributable to the parent Company
                Item                                                                                                                                                             Total Owners’
                                          Paid-in                           Less:                                        General                            Minority’s equity
                                                                                     Reasonable                                                                                      equity
                                      capital(or share   Capital reserves Treasury                   Surplus reserves      risk   Retained profit   Other
                                                                                      reserve
                                          capital)                         Stock                                        provisionI. Balance at the end of the last
                                      567,275,995.00      895,918,416.59                              283,637,997.50             3,317,227,992.26             276,328,103.75 5,340,388,505.10year
      Add: Retroactive adjustmentarising from combination undersame control
    Add: Changes of accountingpolicy
    Error correction of the lastperiod
    Other
                                                                                                                                Weifu High-Technology Group Co., Ltd.2013 年度报告全文
    II. Balance at the beginning of
                                     567,275,995.00 895,918,416.59                                283,637,997.50            3,317,227,992.26         276,328,103.75 5,340,388,505.10this yearIII. Increase/ Decrease in this year
                                     112,858,000.00 2,793,775,612.93                               56,429,000.00             628,857,740.96           28,675,141.78 3,620,595,495.67(Decrease is listed with ―-‖)
    (I) Net profit                                                                                                           889,326,939.46           44,910,352.75    934,237,292.21
    (II) Other consolidated income                           56,509,360.00                                                                                                  56,509,360.00
    Subtotal of (I) and (II)                                56,509,360.00                                                       889,326,939.46           44,910,352.75    990,746,652.21(III) Owners’ devoted and
                                       112,858,000.00 2,737,266,252.93                                                                                12,596,300.00 2,862,720,552.93decreased capital
    1. Owners’ devoted capital            112,858,000.00 2,737,266,252.93                                                                                12,596,300.00 2,862,720,552.932. Amount calculated into owners’equity paid in shares3. Other
    (IV) Profit distribution                                                                           56,429,000.00             -260,469,198.50          -28,831,510.97   -232,871,709.47
    1. Withdrawal of surplus reserves                                                                  56,429,000.00              -56,429,000.002. Withdrawal of general riskprovisions3. Distribution for owners (or
                                                                                                                             -204,040,198.50          -28,831,510.97   -232,871,709.47shareholders)4. Other(V) Carrying forward internalowners’ equity
    1. Capital reserves conversedto capital (share capital)
    2. Surplus reserves conversedto capital (share capital)
    3. Remedying loss with surplusreserve
    4. Other(VI) Reasonable reserve
    1. Withdrawal in the report period                                                18,232,197.57                                                         2,071,770.49    20,303,968.06
    2. Usage in the report period                                                     18,232,197.57                                                         2,071,770.49    20,303,968.06(VII)OthersIV. Balance at the end of the report
                                       680,133,995.00 3,689,694,029.52                            340,066,997.50            3,946,085,733.22         305,003,245.53 8,960,984,000.77period
    Legal Representative: Chen Xuejun         Person in charge of accounting works: Ou Jianbin    Person in charge of accounting institute: Ou Jianbin
                                                                                                                               Weifu High-Technology Group Co., Ltd.2013 年度报告全文8. Statement on Changes of Owners’ Equity of Parent CompanyPrepared by Weifu High-Technology Group Co., LtdThis Period
                                                                                                                                                                                 In RMB
                                                                                                               This Period
                       Item                                                                    Less:
                                                    Paid-in capital(or                                  Reasonable      Surplus       General risk                      Total Owners’
                                                                         Capital reserves    Treasury                                                Retained profit
                                                     share capital)                                      reserve        reserves       provision                            equity
                                                                                              Stock
    I. Balance at the end of the last year            680,133,995.00      3,717,757,419.50                           340,066,997.50                  2,715,439,176.46 7,453,397,588.46
    Add: Changes of accounting policy
    Error correction of the last period
            Other
    II. Balance at the beginning of this year         680,133,995.00      3,717,757,419.50                           340,066,997.50                  2,715,439,176.46 7,453,397,588.46III. Increase/ Decrease in this year (Decrease is
                                                      340,066,997.00         42,490,055.00                            93,541,690.26                   297,768,016.86    773,866,759.12listed with ―-‖)
    (I) Net profit                                                                                                                                    935,416,902.62    935,416,902.62
    (II) Other consolidated income                                               42,490,055.00                                                                                42,490,055.00
    Subtotal of (I) and (II)                                                    42,490,055.00                                                            935,416,902.62    977,906,957.62(III) Owners’ devoted and decreased capital1. Owners’ devoted capital2. Amount calculated into Owners’ equity paidin shares3. Other
    (IV) Profit distribution                              340,066,997.00                                                  93,541,690.26                  -637,648,885.76    -204,040,198.50
    1. Withdrawal of surplus reserves                                                                                     93,541,690.26                    -93,541,690.262. Withdrawal of general risk provisions
    3. Distribution for owners (or shareholders)                                                                                                         -204,040,198.50    -204,040,198.50
    4. Others                                             340,066,997.00                                                                                 -340,066,997.00(V) Carrying forward internal owners’ equity1. Capital reserves conversed to capital (sharecapital)2. Surplus reserves conversed to capital (sharecapital)3. Remedying loss with surplus reserve
                                                                                                                                  Weifu High-Technology Group Co., Ltd.2013 年度报告全文4. Others(VI) Reasonable reserve
    1. Withdrawal in the report period                                                                       4,032,088.99                                                          4,032,088.99
    2. Usage in the report period                                                                            4,032,088.99                                                          4,032,088.99(VII) Others
    IV. Balance at the end of the report period         1,020,200,992.00      3,760,247,474.50                              433,608,687.76                  3,013,207,193.32 8,227,264,347.58Amount at last year
                                                                                                                                                                                    In RMB
                                                                                                            Amount at last year
                       Item                                                                    Less:
                                                    Paid-in capital(or                                  Reasonable                       General risk                      Total Owners’
                                                                         Capital reserves    Treasury                Surplus reserves                   Retained profit
                                                     share capital)                                      reserve                          provision                            equity
                                                                                              Stock
    I. Balance at the end of the last year            567,275,995.00       923,981,806.57                               283,637,997.50                  2,237,035,401.84 4,011,931,200.91
    Add: Changes of accounting policy
    Error correction of the last period
            Other
    II. Balance at the beginning of this year         567,275,995.00       923,981,806.57                               283,637,997.50                  2,237,035,401.84 4,011,931,200.91III. Increase/ Decrease in this year (Decrease is
                                                      112,858,000.00      2,793,775,612.93                               56,429,000.00                   478,403,774.62 3,441,466,387.55listed with ―-‖)
    (I) Net profit                                                                                                                                       738,872,973.12     738,872,973.12
    (II) Other consolidated income                                               56,509,360.00                                                                                   56,509,360.00
    Subtotal of (I) and (II)                                                    56,509,360.00                                                               738,872,973.12     795,382,333.12
    (III) Owners’ devoted and decreased capital          112,858,000.00      2,737,266,252.93                                                                                 2,850,124,252.93
    1. Owners’ devoted capital                          112,858,000.00      2,737,266,252.93                                                                                 2,850,124,252.932. Amount calculated into Owners’ equity paidin shares3. Other
    (IV) Profit distribution                                                                                             56,429,000.00                  -260,469,198.50    -204,040,198.50
    1. Withdrawal of surplus reserves                                                                                    56,429,000.00                    -56,429,000.00
    2. Withdrawal of general risk provisions
    3. Distribution for owners (or shareholders)                                                                                                            -204,040,198.50    -204,040,198.504. Others
                                                                                                                               Weifu High-Technology Group Co., Ltd.2013 年度报告全文(V) Carrying forward internal owners’ equity1. Capital reserves conversed to capital (sharecapital)2. Surplus reserves conversed to capital (sharecapital)3. Remedying loss with surplus reserve4. Others(VI) Reasonable reserve
    1. Withdrawal in the report period                                                                   4,688,219.42                                                        4,688,219.42
    2. Usage in the report period                                                                        4,688,219.42                                                        4,688,219.42(VII) Others
    IV. Balance at the end of the report period         680,133,995.00     3,717,757,419.50                              340,066,997.50                 2,715,439,176.46 7,453,397,588.46
    Legal Representative: Chen Xuejun         Person in charge of accounting works: Ou Jianbin   Person in charge of accounting institute: Ou Jianbin
                                   Weifu High-Technology Group Co., Ltd.        Annual Report of 2013 (Full-text)III .Basic information of the Company1. Historical origin of the CompanyBy the approval of STGS (1992) No. 130 issued by Jiangsu Economic Restructuring Committee, WeifuHigh-Technology Group Co., Ltd. (hereinafter referred to ―the Company‖ or ―Company‖) was established as acompany of limited liability with funds raised from targeted sources, and registered at Wuxi Administration forIndustry & Commerce in October 1992. The original share capital of the Company totaled RMB 115.4355 million,including state-owned share capital amounting to RMB 92.4355 million, public corporate share capital amountingto RMB 8 million and inner employee share capital amounting to RMB 15 million.Between year of 1994 and 1995, the Company was restructured and became a holding subsidiary of Wuxi WeifuGroup Co., Ltd (hereinafter referred to as ―Weifu Group‖).By the approval of Jiangsu ERC and Shenzhen Securities Administration Office in August 1995, the Companyissued 68 million special ordinary shares (B-share) with value of RMB 1.00 for each, and the total value of thoseshares amounted to RMB 68 million. After the issuance, the Company’s total share capital increased to RMB183.4355 million.By the approval of CSRC in June 1998, the Company issued 120 million RMB ordinary shares (A-share) atShenzhen Stock Exchange through on-line pricing and issuing. After the issuance, the total share capital of theCompany amounted to RMB 303.4355 million.In the middle of 1999, deliberated and approved by the Board and Shareholders’ General Meeting, the Companyimplemented the plan of granting 3 bonus shares for each 10 shares. After that, the total share capital of theCompany amounted to RMB 394.46615 million, of which state-owned shares amounted to RMB 120.16615million, public corporate shares RMB 10.4 million, foreign-funded shares (B-share) RMB 88.40 million, RMBordinary shares (A-share) RMB 156 million and inner employee shares RMB 19.5 million.In the year 2000, by the approval of the CSRC and based upon the total share capital of 303.4355 million sharesafter the issuance of A-share in June 1998, the Company allotted 3 shares for each 10 shares, with a price of RMB10 for each allotted share. Actually 41.9 million shares was allotted, and the total share capital after the allotmentincreased to RMB 436.36615 million, of which state-owned corporate shares amounted to RMB 121.56615million, public corporate shares RMB 10.4 million, foreign-funded shares (B-share) RMB 88.4 million and RMBordinary shares (A-share) RMB 216 million.In April 2005, Board of Directors of the Company has examined and approved 2004 Profit Pre -distribution Plan,and examined and approved by 2004 Shareholders’ General Meeting , the Company distributed 3 shares for each10 shares to the whole shareholders totaling to 130,909,845 shares in 2005.
                                   Weifu High-Technology Group Co., Ltd.      Annual Report of 2013 (Full-text)According to the Share Merger Reform Scheme of the Company that passed by related shareholders’ meeting ofShare Merger Reform and SGZF [2006] No.61 Reply on Questions about State-owned Equity Management inShare Merger Reform of Weifu High-Technology Co., Ltd. issued by State-owned Assets Supervision &Administration Commission of Jiangsu Province, the Weifu Group etc. 8 non-circulating shareholders arrangedpricing with granting 1.7 shares for each 10 shares to circulating A-share shareholders (totally granted 47,736,000shares), so as to realize the originally non-circulating shares can be traded on market when satisfied certainconditions, the scheme has been implemented on April 5, 2006.On 27 May 2009, Weifu Group satisfied the consideration arrangement by dispatching 0.5 shares for each 10shares based on the number of circulating A shares as prior to Share Merger Reform, according to the aforesaidShare Merger Reform, with an aggregate of 14,039,979 shares dispatched. Subsequent to implementation ofdispatch of consideration shares, Weifu Group then held 100,021,999 shares of the Company, representing17.63% of the total share capital of the Company.Pursuant to the document (XGZQ(2009)No.46) about ―Approval for Merger of Wuxi Weifu Group Co., Ltd. byWuxi Industry Development Group Co., Ltd.‖ issued by the State-owned Assets Supervision and AdministrationCommission of Wuxi City Government, Wuxi Industry Development Group Co., Ltd. (hereinafter referred to asWuxi Industry Group) acquired Weifu Group. After the merger, Weifu Group was then revoked, and its assets andcredits & debts were transferred to be under the name of Wuxi Industry Group. Accordingly, Wuxi IndustryGroup became the first largest shareholder of the Company since then.In accordance with the resolutions of shareholders' meeting and provisions of amended constitution, and approvedby [2012] No. 109 document of China Securities Regulatory Commission, in Feb., the Company issued RMBordinary shares (A-share) of 112,858,000 shares to Wuxi Industry Groups and overseas strategic investor,ROBERT BOSCH GMBH (hereinafter referred to as Germany BOSCH), face value was RMB 1 Yuan per share,added registered capital of RMB112,858,000 Yuan , and the registered capital after change was RMB680,133,995 Yuan. Wuxi Industry Group is the first majority shareholder of the Company, and Germany BOSCHis the second majority shareholder of the Company.In March 2013, the profit distribution replan for year of 2012 was deliberated and approved by the Board, and alsopassed in Annual General Meeting 2012 of the Company in May 2013. On basis of total share capital 680,133,995shares, distribute 5-share for every 10 shares held by whole shareholders, 340,066,997 shares in total aredistributed. Total share captial of the Company amounting RMB 1,020,200,992 up to 31 December 2013.2. Registered place, organization structure and head office of the CompanyRegistered place and head office of the Company: Wuxi, Jiangsu.The registration number of the Company was 320200000014926.The Company sets up Shareholders’ General Meeting, the Board of Directors and the Supervisory Committee.
                                   Weifu High-Technology Group Co., Ltd.        Annual Report of 2013 (Full-text)The Company sets up Administration Department, Engineering Technology Research Institution, HumanResources Department, Office of the Board, Risk Management Department, Information Systems Department,Market & Strategy Plan Department, Party-masses Security Department, Finance Control Department, ProjectPurchase Department, MS Business Segment, AC Business Segment, and subsidiaries such as Wuxi Weifu LeaderCatalytic Converter Co., Ltd. (referred to as Weifu Leader), Nanjing Weifu Jinning Co., Ltd. (referred to as WeifuJinning), and Wuxi Weifu Automotive Diesel System Co., Ltd. (referred to as Weifu Diesel System).3. Business nature and major operation activities of the CompanyOperation scope of parent company: manufacture of engine fuel oil system products, fuel oil system testers andequipments; sales of energy-oriented machinery, hardware & electric materials, chemical products and rawmaterials (other than chemical dangerous). Auto spare parts, autos (other than autos under-9 seats); repair ofengine, technological development and consultancy service of machinery industry; import and export business inrespect of diversified commodities and technologies (other than those commodities and technologies limited orforbidden by the State for import and export) by self-operation and works as agent for such businessMajor subsidiaries respectively activate in production and sales of engine accessories, auto spare parts, mufflers,and purifiers.4. Relevant party offering approval reporting of financial statements and date thereofFinancial statements of the Company were approved by the Board of Directors for reporting dated 11 April 2014.IV. Major Accounting Policies, Accounting Estimation and Previous Errors of the Company1. Basis of preparation of financial statementsThe financial statement were stated in compliance with Accounting Standard for Enterprises No.30 -Presentationof Financial Statement, with recognitions and measurements made by reference to Accounting Standard forEnterprises and Application Instruments thereof promulgated by the Ministry of Finance dated 15 February 2006in respect of the actual transactions and proceedings, on a basis of ongoing operation.2. Statement on observation of Accounting Standard for EnterprisesFinancial statements prepared by the Company were in accordance with requirements of Accounting Standard forEnterprises, which truly and completely reflected the financial information of the Company, such as financialposition, operation achievements and cash flow.3. Accounting periodThe accounting period of the Company comprises of annual period and interim period, among which, the annualperiod commences from 1 January to 31 December, and interim period includes monthly, quarterly and half-year.4. Currency used in book-keepingThe Company’s reporting currency is the RMB Yuan.5. Accounting treatment methods for business combination under and not under the same control(1)Business combination under the same controlBusiness combination under the same control: consideration paid by acquirer for combination and net assets
                                   Weifu High-Technology Group Co., Ltd.           Annual Report of 2013 (Full-text)acquired by him shall all be measured with carrying value. Difference between carrying values of net assets andcombination consideration respectively obtained and paid by acquirer over total par value of shares in issue shallbe used to adjust capital reserve; when capital reserve is insufficient for offset, then retained profit shall beadjusted. All direct related expenses arising from business combination, including auditing expenses paid forcombination, evaluation expenses and law service expenses, shall be recorded in current gains and losses uponoccurrence; while procedure charge and commission arising from issuance of equity securities or bonds in relatio nto business combination shall be accounted in initial measurement amount of shareholders’ equity or liabilities.(2) Business combination not under the same controlBusiness combination not under the same control: combination cost paid by acquirer and net recognizable assetsobtained from combination shall be measured at fair value. In the event that difference between combination costsover fair value of net recognizable assets obtained from combination is positive, thus such difference shall berecognized as goodwill; if negative, and then shall be accounted in current gains and losses. All direct relatedexpenses arising from business combination including auditing expenses paid for combination, evaluationexpenses and law service expenses shall be recorded in business combination cost; while procedure charge andcommission arising from issuance of equity securities or bonds in relation to business combination shall beaccounted in initial measurement amount of shareholders’ equity or liabilities.6. Relevant specific accounting policy for equity disposal on step-by-step basis to lose control(1) A principle of judgment of “Package Deal”(2) Accounting method for “Package Deal”(3) Accounting method for Non “Package Deal”7. Preparation method for consolidated statements(1) Preparing method of consolidated financial statements(1) Confirmation principle of consolidation scopePreparation of the consolidation financial statement of the Company mainly complied with the consolidationscope recognized by Parent Company Theory, details consolidation scope as:①More than half of the equity capital of the investee enterprise that owned by Parent company, directly/indirectlyand jointly owned more than half of the equity capital by indirectly and directly included;②Other investee enterprises control by Parent company including:A. Holding more than half of voting right of the investee through agreement with other investors of the investeeenterprises; ;B. Having the rights of financial and operation strategy controlled according to Article of Association toAgreement;C. Having the rights of appointment and dismissal on majority personnel’s in Board or in similar power institutionof the enterprise;
                                     Weifu High-Technology Group Co., Ltd.       Annual Report of 2013 (Full-text)D. Having more than half of the rights to vote in Board or similar power institution of the enterprise.(2) Measures used in consolidation①The Company consolidations permit since the day of actual control right obtained; cease consolidation since theday of control right lost. Consolidation financial statement based on the financial statement of the Company andother relevant information of vary subsidiaries that joint in the consolidation scope, adjusted long-term equityinvestment to subsidiaries according to equity method, off-setting the investment, transaction and contactsbetween the Company and vary subsidiaries that in the consolidation scope, consolidated for preparation afterminority shareholders’ gains/loss and minority shareholders’ equity calculation.②Concerning the different accounting policy or accounting period between the Company and subsidiaries,consolidating after adjustment on subsidiaries’ financial statement based on the Company’s accounting policy oraccounting period.③Concerning the subsidiary obtained under combination with different control, adjusted several financialstatement of the subsidiary based on the fair value of recognizable net assets on purchased day while financialstatement consolidation; concerning the subsidiary obtained under combination with same control, consideredcurrent status of being control by ultimate controller for consolidation while financial statement consolidation.(2)Disclosure of related accounting method for buy-and-resell or sell-and-repurchase of equities in the samesubsidiary within two successive accounting yearsNil8. Determination criteria of cash and cash equivalentCash equivalent represents such kind of investment featuring with short term (generally due within 3 months sincepurchase day), active liquidity, being easy for converting to cash with already-known amount, as well as tinyexposure to value change risks.9. Foreign currency business and the conversion of foreign currency statement(1) Foreign currency businessForeign currency business is accounted with amount denominated in RMB as translated at the spot exchange rateas of the occurrence day of such business. The occurred foreign currency exchange business or transactions withforeign currency exchange involved shall be translated at the effective exchange rate (i.e. exchange rate adoptedby banks for such transactions) adopted by such transaction.(2) Translation of foreign currency statementAs at balance sheet date, division between foreign currency monetary items and foreign currency non-monetaryitems are dealt with according to the following principles:Foreign currency monetary items are translated at spot exchange rate as of balance sheet date, and then recordedin current gains and losses when happening during normal operation period; exchange gains and losses related toborrowings for purchasing fixed assets are disposed with principle of capitalization of borrowing expense.Monetary item represents the monetary capital, and assets or liabilities respectively received or paid at fixed or
                                     Weifu High-Technology Group Co., Ltd.          Annual Report of 2013 (Full-text)insurable amount, among other things, stock cash, bank deposit, account receivables, other receivables, long-termreceivables, short-term loans, account payables, other payables, long-term loans, bond payables and long-termpayables, etc.Foreign currency non-monetary items are translated at spot exchange rate as of transaction date, with no change inits amount accounted in standard currency. Non-monetary items represent items except for monetary items.As for foreign currency non-monetary items measured at fair value, translation is subject to the spot exchange rateas of the date when fair value is recognized. Difference between the accounted standard currency amountsubsequent to translation and its original accounted standard currency amount is dealt with as movement in fairvalue (movement in exchange rate included), and then recorded in current gains and losses.10. Financial instrumentsFinancial instruments including financial assets, financial liability and equity instrument.(1) Classification of financial instrumentsIn terms of investment purposes and economic natures, the Company divides its financial assets into transactionalfinancial assets, financial assets available for sale, account receivables and held-to-maturity investments, amongwhich, transactional financial asset is measured at fair value and movement of its fair value is recorded in currentgains and losses; financial asset available for sale is measured at fair value and movement of its fair value isrecorded in shareholders’ equity; account receivables and held-to-maturity investments are measured at amortizedcost.(2) Recognition basis and measurement method for financial instrumentsIn the case that when a company constitutes one party to financial instrument agreement, one item of financialasset or financial liability shall then be recognized.In terms of economic nature, the Company divides its financial liabilities into two groups, namely financialliabilities at fair value through gains and losses and other financial liabilities at amortized cost.(3) Recognition basis and measurement method for transfer of financial assetsThat the Company grants or delivers financial assets to party other than the issuer of such financial assets equalstransfer of financial assets. Financial assets transferred could be the entire or part of such financial assets. Twoforms are listed as follows:①Transfer of right for collecting cash flow of financial assets to another party;②Transfer financial assets to another party, while the aforementioned right is retained, with obligation of payingsuch cash flow to final collector.In the even that the Company has transferred almost all risks and remunerations arising from ownership of all orpart financial assets to another party, accordingly, recognition for such entire or part financial assets shall beceased. Gains and losses are determined by the received consideration less the carrying value of the transferred
                                     Weifu High-Technology Group Co., Ltd.        Annual Report of 2013 (Full-text)financial assets. Meanwhile, the original accumulated gains or losses of financial assets recognized in the owners’equity shall transferred to gains and losses; when all risks and remunerations attached to ownership are retained,recognition for such entire or part financial assets shall continue, and the consideration received shall be viewed asfinancial liabilities.As for the financial assets which the Company has neither transferred nor retained all risks and remunerationsattached to ownership of such financial assets, while control upon such financial assets still exists, recognitionshall be conducted in light of the degree of its continuous involvement in the transferred financial assets.Accordingly, relevant liabilities shall be recognized.(4) Recognition condition for termination of financial liabilityUpon satisfaction of one of the following condition, financial assets will immediately experience discontinuedrecognition:①Right entitled by contract in respect of collection of cash flow from such financial asset terminates.②Such financial assets have been transferred and meet discontinued recognition condition for financial assets asregulated by Accounting Standard for Enterprise No.23-Transfer of Financial Assets.Only when present obligations under financial liability have been released entirely or partly, could ceaserecognition of such financial liability or part thereof.(5) Deciding of fair value of financial assets and financial liabilities① In case of an active market, financial assets or financial liabilities which are respectively held and proposed tobe undertaken by the Company are subject to the prevailing offer price of such market, and financial assets orfinancial liabilities which are respectively proposed to be held and undertaken by the Company are subject to theprevailing asked price of such market. In case of absence of such prevailing offer or asked prices, marketquotation of the latest transaction or adjusted market quotation of the latest transaction shall be adopted, exceptthat there is clear evidence showing that such market quotation is not fair value.② In case of absence of an active market, the Company recognizes fair value by reference to valuation technologywhich includes reference to the price adopted by parties who are willing to make business and knowing conditionsquite well in their latest transactions, reference to prevailing fair values of other financial instruments with similaressence, discount cash flow method and option pricing pattern.(6) Impairment test method and impairment provision method for financial assets (not including accountreceivables)The Company conducts inspection on carrying values of financial assets, except for transactional financial assets,as at balance sheet date. If there is objective evidence indicating that impairment has happened to financial assets,impairment reserve then shall be provided. Financial asset with great amount in single item is subject to separateimpairment test. In case of any objective evidence indicating that impairment has happened to such financial asset,impairment loss shall be recognized and recorded in current gains and losses. As for the financial assets with no
                                         Weifu High-Technology Group Co., Ltd.   Annual Report of 2013 (Full-text)great amount in single item and those which prove to be not impaired after separate test, the Company willconduct impairment test on basis of credit portfolio which is determined in light of customers’ credit records andhistorical bad debts, so as to recognize impairment loss.Objective evidence indicating impairment happens to financial assets means the proceedings meeting the threecharacteristics: actually occurred subsequent to initial recognition of such financial assets, bring influence over theestimated future cash flow of such financial assets, and such influence could be reliably measured by theCompany.The followings are included in objective evidences indicating impairment happens to financial assets:A: Serious financial difficulty happens to issuer or debtor;B: Breach of terms of contract by debtor, such as breach or overdue in repaying interest or principal;C: Creditor makes concession for debtors who experience financial trouble in light of consideration for economyor laws;D: Debtor is very likely to experience bankrupt or financial reorganization;E: Financial assets are not able to be traded in active market since material financial difficulty happens to issuer;F: It is unable to judge whether cash flow from certain asset in a group of financial assets has decreased, while itis finally found that the estimated future cash flow of such financial asset has actually decreased since its initialrecognition and the decrease can be reliably measured by reference to the general valuation based on open data.For example, payment capacity of debtor of such financial assets portfolio gradually worsens, or unemployment incountry or region where the debtor locates risen, price of guaranty falls greatly in the place where it locate, and theindustry in which it belongs to is unpromising;G: Material negative changes happen to technologies, markets, economy or law environment in which debtoroperates, which leads to that equity instrument investor is not likely to be able to recover investment cost;H: Fair value of equity instrument investment experiences severe or non-temporary falling;I: Other objective evidence indicating impairment happens to financial assets.In the event of impairment in financial asset at amortized cost, impairment loss is calculated based on thedifference between carrying value and present value of estimated future cash flow discounted at effective interestrate.After impairment loss is recognized for financial asset at amortized cost, if there is objective evidence indicatingvalue of such financial asset has recovered, which is objectively related to proceedings occurred after recognitionof such loss, the original impairment loss shall be reversed and recorded in current gains and losses. However, thecarrying value subsequent to such reversal shall not exceed the amortized cost of such financial asset as at thereversal date on assumption that such impairment loss had not been provided.Judging standards for vary impairment of financial assets available for saleAt end of the Period, if the fair value of financial assets avilable for sale drop dramatically, or after consideringvarious relevant factors, the trend is estimate falls temporary, than impairment shall be recognized. The original
                                        Weifu High-Technology Group Co., Ltd.            Annual Report of 2013 (Full-text)accumulated loss through owners’ equity directly arising from falling fair value shall be reversed and impairmentrecognized. As for the recognized impairment losses of debt instruments available for sale, in later accountingperiod, if the fair value gose up and objectively relevant to the event recognized after original impairment lossesconfirmed, the original recognized impairment losses shall be reversed and reckoned into current gains/losses.Impairment losses arising from invesment of equity insutrument availabel for sale, shall not be reversed throughgains and losses.Standards of ―serious‖down for fair value of equity insutrument availabel for sale investment: Generally speaking,as for those active equity investmentin in a good market liquidity, over 50% decline will recognize as seriousdown.Standards of ―non-temporary‖down for fair value of equity insutrument availabel for sale investment: Generallyspeaking, if consecutive drop for over 6 months, than shall recognize as ―non-temporary down‖.(7)As for reclassification of un-matured held-to-maturity investments into financial assets available for sale,explain the holding purposes or references for change of abilityNil11. Recognition standards and accrual method for bad debt provision for accounts receivable(1) Bad debt provision for accounts receivable with single major amount
                                 The Company’s account receivables with above RMB 1 million in single item is defined as
                                 account receivables with significant amount in single item. Such kind of account receivables areDetermine basis or amount
                                 recognized as bad debts in case of impossible collection though with bankrupt properties orstandards for single significant
                                 heritages of debtors due to their bankrupt or death, or in the even that debtors haven’tamount
                                 implemented their repayment obligations over 3 years upon expiration and there are obvious
                                 evidences indicating impossible collection.Withdrawal method for account As for account receivables with significant amount in single item which can not be directlywith single significant amount and recognized as bad debts, debt provision shall be provided according to the Company’s policieswithdrawal single item bad debt by aged analysis method. 100% bad debt provision shall be provided for those account
    provision                          receivables with great amount in single item which can be directly recognized as bad debts(2) Accounts whose bad debts provision was accrued by combination
                           Methods on withdrawal of bad debt
        Combination                                                             Basis for combination recognized
                            provision based on combination
                                                              A combination classified by age as major risk characteristic,
    Age combination            Age analysis method
                                                              withdrawal bad debt provision by age analysis methodIn combination, accounts whose bad debts provision was accrued by age analysis:√ Applicable □ Not applicable
             Account age                   Rate for receivables (%)                     Rate for other receivables (%)
    Within 1 year (one year included)                                     10%                                                     10%
    Within 6 months                                                         0%                                                     0%
    6 months to 1 year                                                    10%                                                     10%
    1-2 years                                                            20%                                                     20%
    2-3 years                                                            40%                                                     40%
    Over 3 years                                                          100%                                                    100%
    3-4 years                                                            100%                                                    100%
    4-5 years                                                            100%                                                    100%
                                       Weifu High-Technology Group Co., Ltd.               Annual Report of 2013 (Full-text)
    Over 5 years                                                         100%                                                  100%In combination, withdrawal proportion of bad debt provision based on balance proportion:□ Applicable√ Not applicableIn combination, withdrawal proportion of bad debt provision based on other methods:□ Applicable√ Not applicable(3) Accounts with single significant amount and bad debts provision accrued individually
                         Account receivable meeting the following conditions: account receivable whose single amount is notReasons for withdrawal
                         significant, impossible collection though with bankrupt properties or heritages of debtors due to theirsingle item bad debt
                         bankrupt or death, debtors haven’t implemented their repayment obligations over 3 years upon expirationprovision
                         and there are obvious evidences indicating impossible collection.Withdrawal method for 100% for provision percentage for percentage of total accounts receivable outstanding and 100% for
    bad debt provision    provision percentage for percentage of total other receivable outstanding12. Inventories(1)Classification of inventoriesThe Company’s inventories are categorized into stock materials, product in process and stock goods etc.(2)Pricing for delivered inventoriesPricing method: OtherA. Generally, stock materials are calculated at planned cost. Material cost difference is individually set accordingto classification of grant types. Pursuant to the difference between the planned cost of the received or deliveredraw materials and the material cost the aforesaid cost should share after carrying forward at period-end, theCompany adjusts the planned cost to effective cost; finished products are priced at effective costs, and carriedforward to operating cost by weighted average method when being delivered;B. Products in process are priced at effective costs, and carried forward to finished products at actually occurredcost;C. Finished self-produced products are priced at effective costs, and carried forward to operating cost by weightedaverage method; external purchase goods (from import and export trades) are carried forward to sales cost byindividual pricing method.(3)Recognition evidence for net realizable value of inventories and withdrawal method for inventoryimpairment provisionInventories as at period-end are priced at the lower of costs and net realizable values; at period end, on the basis ofoverall clearance about inventories, inventory impairment provision is withdrew for uncollectible part of costs ofinventories which result from destroy of inventories, out-of-time of all and part inventories, or sales pricelowering than cost. Inventory impairment provision for stock goods and quantity of raw materials is subject to thedifference between costs of single inventory item over its net realizable value. As for other raw materials withlarge quantity and comparatively low unit prices, inventory impairment provision is withdrawn pursuant tocategories.
                                    Weifu High-Technology Group Co., Ltd.          Annual Report of 2013 (Full-text)As for inventories such as stock goods and materials available for direct sales, their net realizable values aredetermined by their estimated selling prices less estimated sales expenses and relevant taxes. For materialinventories held for purpose of production, their net realizable values are determined by the estimated sellingprices of finished products less estimated costs, estimated sales expenses and relevant taxes accumulated tillcompletion of production. As for inventories held for implementation of sales contracts or service contracts, theirnet realizable values are calculated on the basis of contract prices. In the event that inventories held by a companyexceed order amount as agreed in sales contracts, net realizable values of the surplus part are calculated on thebasis of normal sale price.(4) Inventory systemInventory system: Perpetual Inventory System(5) Amortization of low-value consumables and wrappageLow-value consumablesAmortization Method: one-off amortizationWrappageAmortization Method: one-off amortization13. Long-term equity investment(1)Recognition of investment costLong-term equity investment mainly includes the equity investments made to subsidiaries, joint ventures andassociates, and the equity investment which couldn’t entitle the Company to conduct control, common control orsignificant influence over the invested units and which have no quotation price in active market and whose fairvalue could not be able to measured surely.Initial investment cost of long-term equity investment of the Company is recognized by the following ways basedon different acquisition ways:①In situation of a long-term equity investment acquired through business combination under common control,the carrying value of the owners’ equity of the acquired company as at the combination date is deemed as initialinvestment cost for this long-term equity investment; difference between acquisition cost and initial investmentcost is used to adjust capital reserve. In case of insufficient capital reserve for offset, retained profit shall be thenadjusted.②In situation of a long-term equity investment acquired through business combination not under common control,the initial investment cost of long-term equity investment is determined at the fair value of assets involved attrading dated, equity instrument issued as well as liabilities occurred or undertaken. Realizable assets andliabilities undertaken by such assets (including contingent liabilities) of the party being combined as at thecombination date are all measured at fair values, without consideration to amount of minority interests. Thesurplus of combination cost less fair value net realizable assets of the party being combined is recorded asgoodwill, and the deficit is directly recognized in the consolidated statement of gains and losses.
                                    Weifu High-Technology Group Co., Ltd.      Annual Report of 2013 (Full-text)③Long-term investments obtained through other ways:A. Initial investment cost of long-term equity investment obtained through cash payment is determined accordingto actual payment for purchase;B. Initial investment cost of long-term equity investment obtained through issuance of equity securities isdetermined at fair value of such securities;C. Initial investment cost of long-term equity investment injected by