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苏威孚B(200581)公告正文

苏威孚B:2014年半年度报告(英文版)

公告日期:2014-08-30

                   无锡威孚高科技集团股份有限公司 2014 年半年度报告全文




Weifu High-Technology Group Co., Ltd.
     SEMI-ANNUAL REPORT 2014




             August 2014




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                                                           无锡威孚高科技集团股份有限公司 2014 年半年度报告全文




           Section I. Important Notice, Contents and Paraphrase

Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of Weifu High-Technology Group Co., Ltd. (hereinafter referred to as
the Company) hereby confirm that there are no any fictitious statements,
misleading statements, or important omissions carried in this report, and shall
take all responsibilities, individual and/or joint, for the reality, accuracy and
completion of the whole contents.
Other directors attended the board meeting on auditing the report except for the
following directors
 Name of absent director   Position of absent director       Reason for absence             Entrusted

Xing Min                   Independent director          On a business trip        Du Fangci
Chen Yudong                Independent director          On a business trip        Rudolf Maier



The Company has no plans of cash dividend distributed, no bonus shares and
has no share converted from capital reserve either.


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 Semi-Annual
Report 2014 is authentic, accurate and complete.



Concerning the forward-looking statements with future planning involved in the

Report, they do not constitute a substantial commitment for investors. Investors

should be cautious with investment risks.




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                                              无锡威孚高科技集团股份有限公司 2014 年半年度报告全文




                                      Content

Section I Important Notice, Contents and Paraphrase…………………………………………..2
Section II Company Profile………………………………………………………………………..5
Section III Accounting data and summary of finnaical indexes ………………………………..7
Section IV Report of the Board of Directors……………………………………………………..9
Section V Important Events………………………………………………………………………22
Section VI Changes in shares and particular about shareholders……………………………..31
Section VII Preferred Stock………………………………………………………………………35
Section VIII Directors, Supervisors and Senior Executives…………………………………….36
Section IX Financial Report………………………………………………………………………37
Section X Documents Available for Reference………………………………………………….157




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                                                           无锡威孚高科技集团股份有限公司 2014 年半年度报告全文




                                             Paraphrase


                       Items            Refers to                               Contents

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

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

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

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

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

Weifu Automotive Diesel                 Refers to Wuxi Weifu Automotive Diesel System Co., Ltd.

Weifu Leader                            Refers to Wuxi Weifu Leader Catalytic Converter Co., Ltd.

Weifu Jinning                           Refers to Nanjing Weifu Jinning Co., Ltd.

Weifu Chang’an                         Refers to Wuxi Weifu Chang’an Co., Ltd.

Weifu Mashan                            Refers to Weifu Mashan Pump Glib Co., Ltd.

Weifu ITM                               Refers to Wuxi Weifu ITM Supercharging Technique Co., Ltd.

Weifu Tianli                            Refers to Ningbo Weifu Tianli Supercharging Technique Co., Ltd.

Weifu Jialin                            Refers to Chaoyang Weifu Jialin Machinery Manufacture Co., Ltd.

Weifu Schmidt                           Refers to Wuxi Weifu Schmidt Power System Spare Parts Co., Ltd.

Weifu International Trade               Refers to Wuxi Weifu International Trade Co., Ltd.

Weifu Nano                              Refers to Jiangsu Weifu Nano Technology Co., Ltd.

Weifu 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.

Weifu Instrument                        Refers to Wuxi Weifu Instrument Making Co., Ltd.

Zhonglian Automobile Electronic         Refers to Zhonglian Automobile Electronic 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. 2014 to 31 Jun.2014




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                                        Section II Company profile

I. Company profile

Short form of the stock        Weifu High- Tech, Su Weifu-B             Stock code                      000581, 200581

Stock exchange for listing     Shenzhen Stock Exchange

Chinese name of the Company 无锡威孚高科技集团股份有限公司

Abbr. of Chinese name of the
                               威孚高科
Company(if applicable)

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

Abbr. of English name of the
                               WFHT
Company(if applicable)

Legal Representative           Chen Xuejun


II. Person/Way to contact

                                                      Secretary of the Board                       Rep. of security affairs

Name                                        Zhou Weixing                                  Yan Guohong

Contact add.                                No.107, Renmin West Road, Wuxi City           No.107, Renmin West Road, Wuxi City

Tel.                                        0510-82719579                                 0510-82719579

Fax.                                        0510-82751025                                 0510-82751025

E-mail                                      wfjt@public1.wx.js.cn                         wfjt@public1.wx.js.cn


III. Others

1. Way of contact

Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or
not
□ Applicable   √ Not applicable

Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,
found more details in Annual Report 2013.


2. Information disclosure and preparation place

Whether information disclosure and preparation place changed in reporting period or not
□ Applicable   √ Not applicable


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                                                                       无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period, found more details in Annual Report 2013.


3. Registration changes of the Company

Whether registration has changed in reporting period or not
□ Applicable   √ Not applicable
Date/place for registration of the Company, registration number for enterprise legal license, number of taxation registration and
organization code have no change in reporting period, found more details in Annual Report 2013.




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                                                                       无锡威孚高科技集团股份有限公司 2014 年半年度报告全文




        Section III. Accounting data and summary of financial indexes

I. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□Yes   √ No

                                                                                                            Increase/decrease in this
                                                  Current period            Same period of last year
                                                                                                                  report y-o-y

Operating revenue (RMB)                               3,529,819,855.63              2,878,965,006.18                             22.61%

Net profit attributable to shareholders of
                                                        840,585,795.24                531,953,834.22                             58.02%
the listed company(RMB)

Net profit attributable to shareholders of
the listed company after deducting                      821,614,902.92                510,092,554.23                             61.07%
non-recurring gains and losses(RMB)

Net cash flow arising from operating
                                                        393,612,109.41                318,573,288.00                             23.55%
activities(RMB)

Basic earnings per share (RMB/Share)                                0.82                            0.52                         57.69%

Diluted earnings per share (RMB/Share)                              0.82                            0.52                         57.69%

Weighted average ROE (%)                                           8.41%                       5.94%                             2.47%

                                                                                                            Increase/decrease in this
                                               End of current period           End of last period          report-end over that of last
                                                                                                                   period-end

Total assets (RMB)                                   14,238,477,298.95             13,074,232,730.91                             8.90%

Net assets attributable to shareholder of
                                                     10,091,324,886.06              9,600,765,223.81                              5.11%
listed company(RMB)


II. Difference of the accounting data under accounting rules in and out of China

1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)

□ Applicable     √ Not applicable




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                                                                          无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


The Company has no difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) in reporting period


2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)

□ Applicable    √ Not applicable


The Company has no difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and
Chinese GAAP (Generally Accepted Accounting Principles) in reporting period


III. Items and amounts of extraordinary profit (gains)/loss

√Applicable     □Not applicable
                                                                                                                                   In RMB

                                               Item                                                     Amount               Note

Gains/losses from the disposal of non-current asset (including the write-off that accrued for
                                                                                                           189,505.25
impairment of assets)

Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in
quota or ration according to national standards, which are closely relevant to enterprise’s             6,697,146.38
business)

Profit and loss of assets delegation on others’ investment or management                              20,144,274.00

Other non-operating income and expenditure except for the aforementioned items                          -3,634,479.06

Less: Impact on income tax                                                                               3,487,044.30

Impact on minority shareholders’ equity (post-tax)                                                        938,509.95

Total                                                                                                  18,970,892.32          --

Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss




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                          Section IV. Report of the Board of Directors

I. Introduction

According to the data released by China Association of Automobile Manufacturers: in first half year of 2014,

production and sales of the automobile in China up to 11,783,400 and 11,683,500 with a y-o-y growth of 9.60

percent and 8.36 percent respectively; among which, passenger cars shows 9,708,500 and 9,633,800 in production

and sales respectively with 12.05 percent and 11.18 percent growth y-o-y and the commercial vehicle has

2,074,900 and 2,049,700 in production and sales respectively with decrease 0.59 percent and 3.18 percent up

y-o-y, including production and sales of heavy truck reached 434,600 and 420,000 respectively with growth of

12.29 percent and 6.29 percent respectively y-o-y.

The stable development of automobile industry in first half year as well as the growth of sale & production in

heavy truck, boosting sustainable steady growth of the business; and the actively promotion of national emission

regulations, driving new produts of the Company develop rapidly. In reporting period, the Company achieved

operation revenue of 3.53 billion Yuan with 22.61 percent growth from a year eralier; profit amounting as 936

million Yuan, a 54.45 percent up from a year ago and net profit attributable to owners of parent company

amounting as 841 million Yuan, a 58.02 growth from a year earlier.



II. Main business analysis

Year-on-year changes for main financial data
                                                                                                                        In RMB

                                                                                               Y-o-y
                                                                      Same period of last
                                                  Current period                            increase/decre Reasons for changes
                                                                             year
                                                                                                 ase

Operation revenue                                  3,529,819,855.63     2,878,965,006.18          22.61%

Operation cost                                     2,668,547,637.45     2,221,406,094.80          20.13%

Sales   expenses                                    102,594,327.49         81,319,229.85          26.16%

Administrative expenses                             344,239,876.45        275,092,115.54          25.14%

Financial cost                                       -15,309,956.65       -27,181,590.78

Income tax expense                                    65,737,472.85        52,038,268.65          26.33%

Net cash flow arising from operation activities     393,612,109.41        318,573,288.00          23.55%


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                                                                     无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


Net cash flow arising from investment activities        -387,528,765.16       -885,628,740.58

                                                                                                              Mainly because at
                                                                                                              same period of last
                                                                                                              year, the short-term
Net cash flow arising from financing activities         -117,108,233.62         303,169,088.85     -138.63%
                                                                                                              loans increased; and
                                                                                                              in this Period,
                                                                                                              short-term loans paid

Net increase of cash and cash equivalent                -111,024,889.37       -263,886,363.73

Major changes on profit composition or profit resources in reporting period
□ Applicable   √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period


The future development and planning extended to reporting period that published in disclosure documents as prospectus, private
placing memorandum and recapitalize statement
□ Applicable   √ Not applicable
No future development and planning extended to reporting period that published in disclosure documents as prospectus, private
placing memorandum and recapitalize statement


Review on the previous business plan and its progress during reporting period

In first half of 2014, performance of the Company’s economy in general was encouraging with a stable condition,
main economic index grew fairly rapidly. In the next half year, the economical enviornement both at home and
abroad still quiet complicate, with the totally implementation of stage IV emission regulation, industry
development still have many uncertain factors, therefore, economical operation of the Company faces a certain
amount of challenges. In order to keep up a favorable development in aspect of economic performance, the
Company will seize the opportunity of changing market conditions, made unremitting efforts to create conditions
for the sustainable grwoth, in aspect of industrial restructuring, market development and mechanism
transformation etc.

III. Constitution of main business

                                                                                                                                In RMB
                                                                             Increase or        Increase or        Increase or
                                                                Gross        decrease of       decrease of      decrease of gross
                          Operating revenue   Operating cost    profit    operating revenue operating cost over profit ratio over
                                                                ratio     over same period same period of last same period of last
                                                                             of last year          year               year
According to industries

Auto parts                 3,286,301,950.71 2,469,244,190.19 24.86%                  23.84%            22.41%                   0.88%

According to products

Auto fuel injection
                           2,389,466,074.78 1,735,487,697.16 27.37%                  16.33%            14.70%                   1.04%
 system

Induction system              99,367,405.22       73,347,372.83 26.19%               13.58%            14.82%                   -0.79%



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Post-processing
                             797,468,470.71      660,409,120.20 17.19%                    55.72%              50.05%                    3.13%
system

According to region

Domestic sales              3,153,328,229.70 2,344,123,526.07 25.66%                      25.48%              24.38%                    0.66%

Overseas sales               132,973,721.01      125,120,664.12     5.91%                  -5.42%              -5.51%                   0.09%


IV. Core competitive analysis

Core competence of the Company has no major changes in reporting period. More detail can be found in 2013 annual report.


V. Investment analysis

1. Situation of equity investment outside

(1) Situation of investment outside

√ Applicable □ Not applicable

                                                            Investment outside

   Investment in reporting period (RMB)          Investment in same period of last year (RMB)                           Changes

                              100,000,000.00                                             1,401,687.00

                                                            Invested company

                                                                                                           Equity proportion in invested
                     Name                                         Main business
                                                                                                          company for Listed company

                                               Venture investment, industrial investment, venture
Shanghai Cheng Ding De Tong Equity
                                               investment management, investment management                                            15.87%
Fund Co., Ltd.
                                               and investment consulting


(2)Holding equity of financial enterprise

√ Applicable □ Not applicable

                                     Amount of Proportion                     Proporti
                                                                Amount of
                                     stock-holdi       of                      on of
                                                                stock-holdi              Book value at    Gains and
                         Initial      ng at the stock-holdi                   stock-ho                                   Accoun
                                                                 ng at the               the end of the   loss in the
   Name      Type      investment     beginning     ng at the                 lding at                                     ting     Source of
                       cost(RMB)                                end of the                   period       reporting
                                        of the     beginning                  the end                                     subject     stock
                                                                  period                    (RMB)          (RMB)
                                       period         of the                   of the
                                                                  (Share)
                                       (Share)       period                    period

                                                                                                                         Long-te
Guolian     Securi
                                                                                                                         rm         Subscripti
Securities ties       12,000,000.00 18,000,000          1.20% 18,000,000        1.20% 12,000,000.00 720,000.00
                                                                                                                         equity on
Co., Ltd.   compa
                                                                                                                         investm

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                                                                              无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


              ny                                                                                                                  ent

Nanjing                                                                                                                           Long-te
              Insura
Hengtai                                                                                                                           rm
              nce                                                                                                                                 Subscripti
Insurance                  1,000,000.00 1,000,000         1.85% 1,000,000              1.85%        1,000,000.00                  equity
              compa                                                                                                                               on
and Broker                                                                                                                        investm
              ny
Co., Ltd.                                                                                                                         ent

Total                     13,000,000.00 19,000,000        --       19,000,000          --          13,000,000.00   720,000.00           --             --


(3)Situation of securities investment

√ Applicable □ Not applicable

                                                               Proporti
                                                                                         Proport
                                              Amount of         on of
                                                                          Amount of ion of                               Gains
Vari                                          stock-holdi stock-h
                Short                                                     stock-holdi stock-h          Book value at    and loss
 ety Code of                       Initial     ng at the       olding                                                                                  Sourc
               form of                                                     ng at the        olding     the end of the    in the     Accountin
  of securitie                   investment    beginning        at the                                                                                  e of
               securitie                                                  end of the        at the
secu    s                        cost(RMB)                                                                period        reportin g subject
                  s                              of the        beginni                                                                                 stock
rities                                                                      period          end of        (RMB)            g
                                                period          ng of
                                                                           (Share)           the                        (RMB)
                                                (Share)          the
                                                                                            period
                                                               period

                                                                                                                                   Financial
                                                                                                                                                       Subsc
Stoc                    SDEC                                                                                                       assets
        600841                  199,208,000.00 23,680,000       2.73% 23,680,000 2.73% 232,537,600.00                                                  riptio
k                                                                                                                                  available
                                                                                                                                                       n
                                                                                                                                   for sales

                                                                                                                                   Financial
                    Miracle                                                                                                                            Subsc
Stoc                                                                                                                               assets
        002009 Logistic          69,331,500.00 9,300,000        2.90%      9,300,000 2.90% 100,812,000.00                                              riptio
k                                                                                                                                  available
                    s                                                                                                                                  n
                                                                                                                                   for sales

Total                           268,539,500.00 32,980,000         --      32,980,000          --       333,349,600.00       0.00             --             --

Disclosure date of
securities investment          2012-03-24
approval of Board report

Disclosure date of
securities investment
approval of
Shareholders report (if
applicable)

Statement of holding other listed companies’ equity
√ Applicable      □ Not applicable
Being deliberated and approved in 23rd meeting of 6th session of the Board dated 24 March 2012, the Company subscribes
14,800,000 private placement of A-share from SDEC with RMB 13.46 per share, a 2.72 percent in total share capital of SDEC after


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                                                                                无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


placement. The Company committed no transfer after the subscription in 12 months, restricted period (23 March 2012 to 22 March
2013). SDEC implemented the plan of annual profit distribution and converting capital reserve into share capital for 2011 on 4th June
2012. (Sending cash of RMB 0.5(tax included) per every 10 shares, converting 6 shares per every 10 shares. The Company held
23.68 million shares of SDEC at end of the Period, representing 2.73 percent in total of the SDEC shares, after completion of the
cancellation for B-share buy-back.
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, the Company decide to subscribe 9300000 private placement shares from Miracle
Logistics with RMB 7.455 per share, a 2.9 percent in total share capital of Miracle Logistics after placement. The Company
committed no transfer after the subscription in 12 months, restricted period (4 June 2013 to 3 June 2014)


2. Trust financing, investment of derivatives and entrustment loan

 (1) Trust financing

√ Applicable □ Not applicable
                                                                                                                            In 10 thousand Yuan

                                                                                                                   Amount
                                                                                                         Amount of reserve
                                                                                                           of        for
                                                                                                                                         Actual
 Name                     Whether                   Amount                             Determinat principal devaluati
            Related                                            Start date End date                                           Estimated gains/loss
   of                      related        Type      of trust                           ion method actual            on of
          relationship                                          of trust    of trust                                          income      es in
trustee                  trade or not              financing                           of reward         taking withdrawi
                                                               financing financing                                                       period
                                                                                                         back in   ng (if
                                                                                                         period applicable
                                                                                                                      )

                                                                                       Floating
                                                                                       rate,
                                                                                       maximized
Bank,                                   Floating               2013-07- 2015-12- annualized
          No             No                           75,000                                              83,600            0 2,014.43 2,014.43
trust                                   profit                 26          22          ate          of
                                                                                       return
                                                                                       agreed       in
                                                                                       contract

Total                                                 75,000        --          --             --         83,600              2,014.43 2,014.43

                                                   All refers to the self-owned capital of the Company. The trust financing was
Capital resource                                   cumulative amount; the actual capital for trust financing is RMB 2 billion at most, and
                                                   recyclable within the limit.

Overdue un-received principal and
                                                                                                                                                  0
accumulated earnings amount

Lawsuit involved (if applicable)                   N/A

Disclosure date for approval from the
                                                   2014-04-15
Board for trust financing (if applicable)


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                                                                     无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


Disclosure date for approval from board of
shareholders for trust financing (if
applicable)

(2) Investment of derivatives
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period

(3) Entrustment loan
□ Applicable √ Not applicable
The Company has no entrustment loan in the Period


3. Application of raised proceeds

(1)Overall application of raised proceeds

√ Applicable □ Not applicable
                                                                                                              In 10 thousand Yuan

Total raised proceeds                                                                                                 285,012.43

Total raised proceeds invested during the reporting period                                                             28,482.94

Total accumulative raised proceeds invested                                                                           214,361.58

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                                                     0.00%

                                               General application of raised proceeds

On 21 January 2012, the CSRC issued the reply on approving non-public issuance of Weifu High-technology Group Co., Ltd.
(ZJXK(2012)No.109), pursuant to which, the Company was approved to issue new shares not exceeding 112,858,000 by
non-public offering. On 10 February 2012, Jiangsu Gongzheng Tianye Certified Public Accountant issued capital verification report
(SGW(2012)No.B006), stating that as at 10 February 2012, Weifu High-tech has already issued 112,858,000 RMB common shares
(A-share) and raised capital proceeds of RMB2,866,028,910.00. after deduction of issuance expense of RMB15,904,657.07, the net
raise proceeds was RMB2,850,124,252.93. As of the period-end, raise proceeds of RMB 2,143,615,800 has been invested
accumulatively.


(2) Situation of committed project of raised proceeds

√ Applicable □ Not applicable                                                                             In 10 thousand Yuan

                                                              Amount of Investm                        Reach Project
                      Projects   Total                                             Predicted Profit
                     changed committe                         accumulat    ent                           the feasibility
Committed investment or not        d      Total     Amount                        serviceable realize
                                                                   ed    program                      predict    was
projects &investment (includin investme investme                                   condition    d in
    of raised fund       g       nt of   nt after invested in investment till the                         ed   changed
                     changed raised adjustme                                        date of     this
                                                                till the period-e                     interes hugely or
                     partially) capitals          this period                       project    year
                                                              period-end    nd                        t or not   not



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                                                                           无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


                                                   nt (1)                      (2)   (3)=(2)/(
                                                                                         1)




Investment project commitment

R&D of WAPS,                No                                                                                                No
industrialization,
                                                                                                   2013-10
productivity expansion                   62,032       62,032    9,173.53     29,994.85   48.35%
                                                                                                   -31
of diesel common rail
system parts

Construction project in No                                                                         2013-10                    No
                                         57,750       57,750 17,317.24       34,175.33   59.18%
industrial zone                                                                                    -31

Industrialization of tail                                                                          2015-06                    No
                            Yes          26,000       26,000    1,992.17     20,960.97   80.62%
treatment system                                                                                   -30

Research institution        No                                                                     2012-12                    No
                                          5,154         5,154                    5,154 100.00%
project                                                                                            -31

Battery material of         No                                                                                                No
                                                                                                   2012-12
engines and R&D of                       10,000       10,000                             0.00%
                                                                                                   -31
battery

                            No                                                                     2012-06                    No
Equity acquisition                      34,381.5    34,381.5                  34,381.5 100.00%                2,748.97
                                                                                                   -30

Liquid assets               No                                                                                                No
                                         90,000    89,694.93                 89,694.93 100.00%
supplementation

Subtotal of
                                  --   285,317.5 285,012.43 28,482.94 214,361.58          --             --   2,748.97   --        --
commitment projects

Investment orientation for fund arising out of plan

Total                             --   285,317.5 285,012.43 28,482.94 214,361.58              --         --   2,748.97   --        --

                            1. WAPS research development and industrial diesel common rail system components capacity
                            enhancement project--under the feasibility report of this project, the investment plan will reaches
                            serviceable condition on 31 October 2013. As of 30 June 2013, the accumulative investment amounted to
Situation about not         RMB 299,948,500 representing investment progress of 48.35%. Reason for lag behind the progress
coming up to schemed including:
progress or expected         (1)the raised proceeds was not in place in time (the proceeds was expected to be in place in March 2011,
revenue and the             while the actual cash time was February 2012);
reason(In specific           (2) The project has WAPS system products involved, which was self-developed by the Company without
project)                    example, the products have completed after work of consistency and reliability and come to
                            Market-Einfuehrung stage;
                            (3) components involved in the project with diesel common rail system: currently, with the promotion of
                            emission standards of National IV, common rail products have complete cover the market of National IV,



                                                                                                                                        15
                                                                        无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


                          the common rail components matching the Bosch diesel common rail products are in short supply,
                          therefore, the Company rapid up the capacity improvement for common rail parts at present. Given this,
                          the project will be accelerated in year of 2014.


                          2. According to the feasibility report, the construction of industry park project will reaches expected
                          serviceable condition on 31 October 2013, as of the period-end, capital of RMB 341,753,300 was invested
                          in total, representing 59.18% in investment progress. Reasons for far from the expected progress are:
                          (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) by the end of 2014 to completed the main relocation.


                          3. Battery material of engines and R&D of battery --under the feasibility report of this project, the
                          investment plan will reached serviceable condition on 31 December 2012. As of the period-end, RMB 0.00
                          was invested. Reasons are as:
                           (1) the raised proceeds was not in place in time;
                           (2) In recently two year, the Company continues to tracking the projects, due to an uncertainty in aspect
                          of 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.

Explanation on great
changes of feasibility    Not applicable
of project

Amount, usage and
progress of using for
                          Not applicable
fund raising out of the
plan

Change of
implementation place
                          Not applicable
of investment project
of raised capitals

                          Applicable

                          Occurred in previous year

                          In consideration of the uncertainty of emission regulation promotion (Standard Three turns to Standard

Adjustment of             Four), and the lands are in short supply at the mean time, the original investment plan of ―Industrialization
implementation way        of tail treatment system‖ met no needs of the subsidiary Wuxi Weifu Leader Catalytic Converter Co., Ltd.
for investment project    of implementing subject company in aspect of development. Therefore, part of the content in
of raised capitals        ―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, found
                          more details in Notice No.: 2013-007. The adjustment for the investment plan of ―Industrialization of tail



                                                                                                                                      16
                                                                        无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


                         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

                         According to the Verification Report of Fund-Raised Project Invested in Advance with Self-raised Funds of
                         WFHT (Su Gong W[2012] No. E1100) issued by Jiangsu Gongzheng Tianye Certified Public Accountants
                         Co., Ltd. Up to 29 February 2012, the actual investment funding for fund-raised project invested in
Regulation of
                         advance with self-raised funds amounting as 299.12 million Yuan, including 1. R&D of WAPS,
implementation ways
                         industrialization, productivity expansion of diesel common rail system parts: 180.05 million Yuan; 2.
of investment project
                         construction project in industrial zone: 16.62 million Yuan; 3. industrialization of tail treatment system:
of raised capitals
                         28.56 million Yuan; 4. research institution project: 51.54 million Yuan; 5. Equity acquisition project: 22.35
                         million Yuan. On 31 March 2012, the Proposal of Replacing the Working Capital Input to Projects by
                         Raised Capital was deliberated and approved by 2nd extraordinary meeting of 7th session of the Board,
                         agreed to replacing the working capital input to projects by raised capital with 299.12 million Yuan.

Temporarily
supplement for the
                         Not applicable
current capitals with
idle raised capitals

Amount surplus in
implementation of
                         Not applicable
raised proceeds and
reasons

                         Usage of raised capitals had on changes in the reporting. On the storage and the usage of raised capitals,
Usage and trend of
                         the company’s execution strictly based on related laws and regulations and three-party supervision protocol
unused raised capitals
                         of raised capitals (four-party supervision protocol of raised capitals).

Questions or other
situation while using
                         Not applicable
raised capitals and in
disclosure


(3)The changed project of raised proceeds

□ Applicable √ Not applicable
The Company has no project of raised proceeds changed in the Period


(4) Project of raised proceeds




                                                                                                                                      17
                                                                         无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


                                                                                 Disclosure
                    Project of raised proceeds and summary                                                   Disclosure index
                                                                                    date

 On 21 January 2012, the Reply on Approval of Private Placement under the
 name of WFHT( Zheng Jian Xu Ke [2012] No.109) was approved and
 issued by CSRC, approved the Company to offering 112,858,000 new
                                                                                               ―Private Placement of the Company and
 shares at most privately. Jiangsu Gongzheng issued the ―Capital
                                                                                              Summary of Listing Announcement‖
 Verification Report Su Gong W [2012] No. B 006‖ on 10 February 2012: 2012-02-28
                                                                                              (Notice No.: 2012-12) released on Juchao
 ended as 10 February 2012, WFHT has offered 112,858,000 RMB common
                                                                                              Website (www.cninfo.com.cn)
 shares (A-share), fund raised amounting as 2,866,028,910.00 Yuan, net
 amount of fund raised amounting as 2,850,124,252.93 Yuan excluding the
 distribution costs15,904,657.07 Yuan.

                                                                                              ‖ Notice of Changing the Fund-raised
 The Proposal of Changing the Fund-raised Projects Investment Plan was
                                                                                              Projects Investment Plan‖ (Notice No.:
 deliberated and approved by 9th meeting of 7th session of the Board held on
                                                                                              2013-007) released on Juchao Website
 26 March 2013 and Annual General Meeting 2012 dated 23 May 2013. The
                                                                               2013-03-28 (www.cninfo.com.cn);                  ―Resolution
 amount invested in industrialization of tail treatment system project
                                                                                              Notice of AGM of 2012‖ released on
 changed from 260 million Yuan originally to 340 million Yuan, the parts
                                                                                              Juchao       Website   (www.cninfo.com.cn)
 adjusted will funding with self-owned capital.
                                                                                              dated 24 May 2013

                                                                                              ‖ Special Report on Fund-raised Deposit
                                                                                              and Use of Funds for year of 2012‖
 Special Report on Fund-raised Deposit and Use of Funds for year of 2012       2013-03-28
                                                                                              released        on      Juchao       Website
                                                                                              (www.cninfo.com.cn)

                                                                                              ―Special Report on Fund-raised Deposit
                                                                                              and Use of Funds for year of 2013
 Special Report on Fund-raised Deposit and Use of Funds for year of 2013       2014-04-15
                                                                                              ―released       on     Juchao       Website
                                                                                              (www.cninfo.com.cn)

                                                                                              The ―Special Report of Deposit of Raised
 Deposit of raised proceeds and utilization for fist half year of 2014         2014-08-30 Proceeds and Utilization for fist half year
                                                                                              of 2014‖ published on Juchao Website


4. Main subsidiaries and stock-jointly companies

√ Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies
                                                                                                                                     In RMB

                         Main
 Comp
                Industr products Register                                           Operating
  any    Type                                  Total assets       Net Assets                         Operating profit       Net profit
                  ies      or      capital                                           revenue
 name
                        service

         Subs Autom Post-pro
Weifu                             502,596,
         idiar obile    cessing              1,799,707,031.59 1,011,980,977.11    862,616,139.65           98,899,904.68   87,510,936.89
Leader                            300.00
         y      parts   system


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                                                                         无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


                         producti
                         ons

                         Fuel
Weifu Subs Autom injection
                                    346,286,
Jinnin idiar obile       system                1,030,586,983.08   715,329,094.32   329,915,069.15    49,787,612.38     43,101,378.62
                                    825.80
g        y       parts   producti
                         ons

         Joint           Fuel
Bosch
         -stoc Autom injection USD241
Autom
         k       obile   system     ,000,000 7,910,342,373.94 5,588,542,700.92 5,463,280,048.26 1,271,580,301.96 1,099,588,004.02
obile
         com parts       producti .00
Diesel
         pany            ons

         Joint
                         Petrol
         -stoc Autom
CNE                      system     600,620,
         k       obile                         2,824,752,617.17 2,820,370,120.62     3,754,631.66   575,709,133.52    575,771,846.68
MS                       producti 000
         com parts
                         ons
         pany


5. Major project invested by non-raised funds

□ Applicable √ Not applicable


No major project invested by non-raised funds in Period


VI. Prediction of business performance from January – September 2014

Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the
warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable √ Not applicable

VII. Explanation from the Board and Supervisory Committee for “Qualified Opinion” from
the CPA of this year’s
□ Applicable √ Not applicable


VIII. Explanation on “Qualified Opinion” of previous year from the Board

□ Applicable √ Not applicable


IX. Implementation of profit distribution in reporting period

Implementation or adjustment of profit distribution plan in reporting period, cash dividend plan and shares converted from capital
reserve in particular
√□Applicable       □Not applicable
The bonus scheme of the Company was formulated strictly in line with relevant regulation of Article of Association.


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                                                                        无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


Profit distribution plan for year of 2013 was: based on total share capital of the Company 1,020,200,992,
distribute cash dividend of RMB 3.00 (tax included) for every 10 shares to all shareholders. The scheme was
deliberated and approve by 16th meeting of 7th session of the Board held on 11 April 2014 and annual
shareholders’ general meeting of 2013 held on 20 April 2014. The implementation of equity distribution plan for
year of 2013 (Notice No.: 2014-022) was published on China Securities Journal, Securities Times, Hong Kong
Commercial Daily and Juchao Website (http://www.cninfo.com.cn) dated 8 July 2014. And the equity distribution
plan for year of 2013 was completed in July 2014.

                                            Special explanation on cash dividend policy

Satisfy regulations of General Meeting or requirement of Article of Association (Y/N):                                         Y

Well-defined and clearly dividend standards and proportion (Y/N):                                                              Y

Completed relevant decision-making process and mechanism (Y/N):                                                                Y

Independent directors perform duties completely and play a proper role (Y/N):                                                  Y

Minority shareholders have opportunity to express opinions and demands totally and their legal rights are fully
                                                                                                                               Y
protected    (Y/N):

Condition and procedures are compliance and transparent while the cash bonus policy adjusted or changed
                                                                                                                         Not applicable
(Y/N):


X. Profit distribution and capitalization of capital reserves in the Period

□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for
the semi-annual year


XI. In the report period, reception of research, communication and interview

√ Applicable □ Not applicable
                                                                                                      Contents discussed and material
     Time             Place       Way      Type                       Reception
                                                                                                                  provided

                                                      Eighteen people of CITIC Securities,
                                                      Fullgoal Fund, HuaAn Funds, Penghua
                                                      Fund, Korea Investment, Mirae Assets,
                Office of      Spot                   Tokyo Haishang Assets Company,                Communicated with the Company
2014-03-04                              Institution
                the Board research                    Rubowai Investment Company, Cephei            with their concern
                                                      capital, Goldstate Securities, CIFM, Zhizhu
                                                      Investment, BOC Asset Management,
                                                      Huatai-Pinebridge Fund etc.

                Scene of
                                                                                                    Basic condition of the Company,
                the            Spot
2014-06-20                              Institution Institution                                     implementation of Standard IV and
                shareholde research
                                                                                                    views on market in 2014
                rs’ general



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                                                                    无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


               meeting

                                                                                         The Company answered the question
                                                                                         for investors online through the
Jan 2014 to 30 Office of   Written
                                       Individual Public investor                        investor relations interactive
June 2014      the Board inquiry
                                                                                         platform(http://irm.p5w.net/dqhd/sic
                                                                                         huan/)

                           Telephone                                                     Basic condition of the Company,
Jan 2014 to 30 Office of
                           communic Individual Public investor                           implementation of Standard IV and
June 2014      the Board
                           ation                                                         views on market in 2014




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                                                                     无锡威孚高科技集团股份有限公司 2014 年半年度报告全文



                                        Section V. Important Events

I. Corporate governance

Pursuit to requirement of normative documents and relevant laws and regulations, the Company has a mechanism
of decision-making, execution and supervise in the framework of shareholders general meeting, board of directors,
supervisory committee and senior management. Vary rules and regulations have been established, constructed and
improve a reasonable and efficiency internal control system, guarantee a sustainable improvement of the operation
standards for the Company. The Company strictly follows the requirement from CSRC and relevant rules from
Listing Rules of Shenzhen Stock Exchange as well as Guidance on Standard Operation of Listed Company on
Main Board, serious and timely to perform obligation of information disclosure based on principle of
―transparency, fairness and justice‖. In reporting period, the actual corporate governance of the Company shows
no major difference with the Company Law and relevant regulations from CSRC.

II. Significant lawsuits and arbitrations of the Company

□Applicable    √Not applicable
The Company has no significant lawsuits and arbitrations in reporting period


III. Question from media

□ Applicable    √ Not applicable
No universal questioned by media in reporting period


IV. Bankruptcy reorganization

□ Applicable √ Not applicable
In reporting period, the Company has no bankruptcy reorganization occurred.


V. Transaction in assets

1. Assets acquisition

□ Applicable √ Not applicable
The Company did not purchased assets in the Period


2. Sales of assets

□ Applicable √ Not applicable
The Company did not sell assets in the Period




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                                                                              无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


3. Business combination

□ Applicable √ Not applicable
The Company has no business combined in the Period

VI. Implementation of the company’s equity incentive and the effects
□ Applicable √ Not applicable
No equity incentive in reporting period


VII. Significant related transaction

1. Related transaction connected to routine operations

√ Applicable □ Not applicable

                                                                                                         Relate
                                                                               Related      Proportion     d      Similar
 Related                       Related Related
                                                                    Related   transaction     in the     transac market
transacti       Related        transacti transacti        Pricing                                                            Date of   Index of
                                                                    transacti amount (in amount of        tion     price
   on         relationship        on        on        principal                                                             disclosure disclosure
                                                                    on price 10 thousand the same        settle obtaine
 parties                          type   content
                                                                                yuan)       transaction ment        d
                                                                                                         mode

                               Procure               Market                                                                 2014-04- ‖Predictio
                               ment of               price/appr                                                             15         n of Daily
Weifu                          merchan Procure oval of the                                                                             Related
            Joint venture of
Environ                        dise and ment of general                         35,928.98     15.96%                                   Transacti
            Weifu Leader
ment                           receivin goods        meeting of                                                                        on       for
                               g labor               shareholde                                                                        year      of
                               service               rs                                                                                2014‖
                                                                                                                                       and
                               Procure               Market
            Associated                                                                                                                 ―Resoluti
                               ment of               price/appr
Bosch       company,                                                                                                                   on Notice
                               merchan Procure oval of the
Automo controlling                                                                                                                     of Annual
                               dise and ment of general                         11,330.78       5.03%
bile        subsidiary of                                                                                                              Sharehold
                               receivin goods        meeting of
Diesel      German Bosch                                                                                                               ers
                               g labor               shareholde
            Company                                                                                                                    General
                               service               rs
                                                                                                                                       Meeting
                               Procure               Market
                                                                                                                                       of 2013‖
                               ment of Procure price/appr
                                                                                                                                       published
            Second largest     merchan ment of oval of the
Robert                                                                                                                                 on Juchao
            shareholder of     dise and goods or general                         5,447.75       2.42%
Bosch                                                                                                                                  Website
            the Company        receivin labor        meeting of
                               g labor   service     shareholde
                               service               rs

Weifu       Associated         Procure Procure Market                            2,794.41       1.24%



                                                                                                                                                 23
                                                                   无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


Instrume company               ment of ment of price/appr
nt                             merchan goods         oval of the
                               dise and              general
                               receivin              meeting of
                               g labor               shareholde
                               service               rs

           Associated                                Market
                               Selling
           company ,                                 price/appr
Bosch                          goods
           Controlling                               oval of the
Automo                         and        Sales of
           subsidiary of                             general        76,483.55   21.67%
bile                           providin goods
           Robert Bosch                              meeting of
Diesel                         g labor
           Automobile                                shareholde
                               service
           Diesel                                    rs

                                                     Market
                               Selling
                                                     price/appr
                               goods
Weifu                                                oval of the
           Associated          and        Sales of
Instrume                                             general         1,414.04    0.40%
           company             providin goods
nt                                                   meeting of
                               g labor
                                                     shareholde
                               service
                                                     rs

                                                     Market
Robert                         Selling
                                                     price/appr
Bosch                          goods
           Second    largest                         oval of the
Bosch                          and        Sales of
           shareholder of                            general           786.07    0.22%
Automo                         providin goods
           the Company                               meeting of
bile                           g labor
                                                     shareholde
Diesel                         service
                                                     rs

                                                     Market
                               Selling
                                                     price/appr
                               goods
Weifu      Joint venture                             oval of the
                               and        Sales of
Environ company of                                   general           744.66    0.21%
                               providin goods
ment       Weifu Leader                              meeting of
                               g labor
                                                     shareholde
                               service
                                                     rs

Weifu                                     Sales of
           Joint venture of
Environ                        Other      fixed                        275.08
           Weifu Leader
ment                                      assets

Bosch      Associated                     Detectio
Automo company ,                          n fee
bile       Controlling         Other      income                         1.67
Diesel     subsidiary of                  receivab
           Robert Bosch                   le



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                                                                       无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


           Automobile
           Diesel

           Associated
Bosch      company ,                  Technol
Automo Controlling                    ogy
bile       subsidiary of    Other     service                                 181.25
Diesel     Robert Bosch               charge
           Automobile                 payable
           Diesel

                                      Land
                                      and
           Largest
Industry                              trademar
           shareholder of   Other                                                160
Group                                 k use
           the Company
                                      expenses
                                      payable

Robert
Bosch                                 Technol
           2nd-largest
Bosch                                 ogy
           shareholder of   Other                                             942.16
Automo                                royalties
           the Company
bile                                  payable
Diesel

Robert
                                      Technica
Bosch
            nd
           2 -largest                 l
Bosch
           shareholder of   Other     training                                  92.07
Automo
           the Company                fee
bile
                                      payable
Diesel

Total                                                 --        --         136,582.47   --       --      --       --         --

Report the actual implementation of the           The total amount from daily related transaction in reporting period still in the
normal related transactions which were            predicted amount that approved in Annual Shareholders’ General Meeting of 2013,
projected about their total amount by types       the predicted amount of daily related transactions for year of 2014 at year-begin
during the reporting period(if applicable)        amounting as RMB 2,941,200,000 in total.



2. Related transaction incurred by purchase or sales of assets

□ Applicable √ Not applicable

No related transaction incurred by purchase or sales of assets in Period

3. Related transaction from jointly investment outside

□ Applicable √ Not applicable

No related transaction from jointly investment outside occurred in Period


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                                                                      无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


4. Credits and liability of related party

□ Applicable √ Not applicable

The Company had no non-operation related liabilities or credits relations in Period


5. Other significant related transactions

□ Applicable √ Not applicable
The Company had no other significant related transactions in the reporting period


VIII. Non-business capital occupying by controlling shareholders and its related parties

□ Applicable √ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period


IX. Major contract and implantation

1. Trusteeship, contract and leasing

(1) Trusteeship

□ Applicable √ Not applicable
The Company had no trusteeship in the reporting period.


 (2) Contract

□ Applicable √ Not applicable
The Company had no contract in the reporting period.


(3) Leasing

□ Applicable √ Not applicable
The Company had no leasing in the reporting period.


2. Guarantee

√ Applicable □ Not applicable
                                                                                                                In 10 thousand Yuan

                  Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
                       Related                  Actual date of                                              Complete Guarante
   Name of the
                    Announcemen Guarant        happening (Date     Actual             Guarantee   Guarantee implemen    e for
    Company
                     t disclosure ee limit        of signing   guarantee limit          type        term     tation or related
   guaranteed
                         date                    agreement)                                                     not     party
                                           Guarantee of the Company for the subsidiaries


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                                                                         无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


                        Related            Actual date of                                                          Complete Guarante
   Name of the
                     Announcemen Guarante happening (Date     Actual                    Guarantee        Guarantee implemen    e for
    Company
                      t disclosure e limit   of signing   guarantee limit                 type             term     tation or related
   guaranteed
                          date              agreement)                                                                 not     party
Ningbo Tianli
Turbocharging                                                                         Joint liability
                     2014-01-17        6,000 2013-12-24                       6,000                     3 years    No       No
Technology Co.,                                                                       guaranty
Ltd.

                                                                    Total amount of actual
Total amount of approving
                                                                    occurred guarantee for
guarantee for subsidiaries in                             29,000                                                                 6,000
                                                                    subsidiaries in report period
report period (B1)
                                                                    (B2)

                                                                    Total balance of actual
Total amount of approved
                                                                    guarantee for subsidiaries at
guarantee for subsidiaries at the                         29,000                                                                 6,000
                                                                    the end of reporting period
end of reporting period (B3)
                                                                    (B4)

Total amount of guarantee of the Company( total two abovementioned guarantee)
Total amount          of approving                               Total amount of               actual
guarantee in         report period                        29,000 occurred guarantee in         report                            6,000
(A1+B1)                                                          period (A2+B2)
Total amount         of approved                                 Total balance of              actual
guarantee at the     end of report                        29,000 guarantee at the end of       report                            6,000
period (A3+B3)                                                   period (A4+B4)
The proportion of the total amount of actually guarantee in the
                                                                                                                                 0.59%
net assets of the Company(A4+ B4)

Including:

Amount of guarantee for shareholders, actual controller and its
                                                                                                                                     0
related parties(C)

The debts guarantee amount provided for the guaranteed parties
                                                                                                                                     0
whose assets-liability ratio exceed 70% directly or indirectly(D)

Proportion of total amount of guarantee in net assets of the
                                                                                                                                     0
Company exceed 50%(E)


Total amount of the aforesaid three guarantees(C+D+E)                                                                                0


Explanations on possibly bearing joint and several liquidating
                                                               无
responsibilities for undue guarantees (if applicable)

Explanations on external guarantee against regulated
                                                                    无
procedures (if applicable)

Explanation on guarantee with composite way


(1) Guarantee outside against the regulation

□ Applicable √ Not applicable
No guarantee outside against the regulation in Period


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                                                                             无锡威孚高科技集团股份有限公司 2014 年半年度报告全文




3. Other material contracts
□ Applicable √ Not applicable
The Company had no other material contracts in the reporting period.


4. Other material transactions

□ Applicable √ Not applicable
The Company had no other material transactions in the reporting period.
X. Commitments made by the Company or shareholders holding above 5% shares of the
Company in reporting period or occurred in the previous reporting period but continued to
reporting period
√ Applicable □ Not applicable

                                                                                                         Comm
                         Commitment                                                          Dated for
   Commitments                                             Contents                                      itment         Implementation
                             party                                                          commitment
                                                                                                         term

                                         In   order   to    promote         the    listed
                                                                                                                  Commitments           fulfilled.
                                         company’s     steady        and         healthy
                                                                                                                  The              ―Unfulfilled
                                         development, fully mobilize senior
                                                                                                                  Commitment       of       Share
                                         executives so as to ensure to combine
                                                                                                                  Merger Reform Made by
                                         the interests of the governance and
                                                                                                                  Majority    Shareholder    and
                                         shareholders of the Company, Weifu
                        Wuxi Industry                                                                             Proposal of Changing the
Share Merger                             Industry Group committed: after Weifu
                        Development                                                         2006-04-05            Management            Incentive
Reform                                   High-tech    finishing   Share           Merger
                        Group Co., Ltd                                                                            Mechanism Plan of WFHT‖
                                         Reform, under related regulations of
                                                                                                                  and ―Implementation Method
                                         the state and Wuxi government in
                                                                                                                  of Incentive Fund‖ were
                                         terms of governance encouragement
                                                                                                                  deliberated and approved by
                                         system of listed company, the Group
                                                                                                                  AGM of 2013 held on 20
                                         would the stock incentive plan for
                                                                                                                  June 2014
                                         management level of Weifu High-tech.

Commitments in
report of acquisition
or equity change

Commitments in
assets reorganization

                                         The privately offering of the Company
                        Wuxi Industry    totally issue 112,858,000 A-shares to
Commitments in
                        Development      substantial shareholder Wuxi Industry
initial public
                        Group Co., Ltd Group and foreign strategy investor                                        Implementing
offering or
                        and ROBERT       ROBERT BOSCH GMBH. The above
refinancing
                        BOSCH GMBH said shares are listed for trading in
                                         Shenzhen Stock Exchange since 29



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                                                                       无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


                                        February      2012    with     36-month
                                        restriction

Other commitments
to minority
shareholders of the
Company

Completed on time
                      Yes
or not

Detail reasons for
un-complement and
                      Not applicable
further plan(if
applicable)

XI. Engagement and non-reappointment of CPA
Whether the semi-annual report was audited or not
□ Yes   √ No


XII. Penalty and rectification

□ Applicable √ Not applicable
The Company had no penalty or rectification in the reporting period.


XIII. Risk disclosure of delisting with laws and rules violated

□ Applicable √ Not applicable
The Company has no delisting risks with laws and rules violated in Period


XIV. Other material events

√ Applicable □ Not applicable
Material events published on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website
(www.cninfo.com.cn) in reporting period:
                                        Item                                        Notice No.:     Disclosure date

  Resolution notice of 15th meeting of 7th session of the Board                      2014-001         2014-1-17

  Resolution notice of 14th meeting of 7th session of supervisory committee          2014-002         2014-1-17

  Guarantee Offer to Controlling Subsidiary for Loans                                2014-003         2014-1-17

  Notice of Investment Outside                                                       2014-004         2014-1-17

  Commitments and Implementation of the Company and Related Parties                  2014-005         2014-2-13

  Resolution notice of 16th meeting of 7th session of the Board                      2014-006         2014-4-15

  Resolution notice of 15th meeting of 7th session of supervisory committee          2014-007         2014-4-15

  Summary of annual report 2013                                                      2014-008         2014-4-15

  Guarantee offer to wholly-owned subsidiary                                         2014-009         2014-4-15


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                                                                       无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


Estimation of Total Routine Related Transactions for year of 2014                    2014-010         2014-4-15

Trust financing with self-owned idle funds                                           2014-011         2014-4-15

Performance Forcase for 1Q of 2014                                                   2014-012         2014-4-15

Text of 1Q Report of 2014                                                            2014-013         2014-4-29

Resolution notice of 18th meeting of 7th session of the Board                        2014-014         2014-5-29

Resolution notice of 17th meeting of 7th session of supervisory committee            2014-015         2014-5-29

Unfulfilled Commitment of Share Merger Reform Made by Majority                       2014-016         2014-5-29
Shareholder and Changing the Management Incentive Mechanism Plan of
WFHT
Convening the annual general meeting for year of 2013                                2014-017         2014-5-29

Prompted Notice of convening the annual general meeting of 2013                      2014-018         2014-6-13

Resolution notice of annual general meeting 2013                                     2014-019         2014-6-21

Performance forcast of semi-annual 2014                                              2014-020         2014-6-24

Commitments and implementation of the Company and related parties                    2014-021         2014-6-24

Implementation of interest distribution for year of 2013                             2014-022         2014-7-8

Prompted notice of release for the restricted shares in share reform                 2014-023         2014-7-26




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                                                                       无锡威孚高科技集团股份有限公司 2014 年半年度报告全文



            Section VI. Changes in Shares and Particulars about Shareholders


I. Changes in Shares
                                                                                                                             In share
                                       Before the Change           Increase/Decrease in the Change (+, -)      After the Change
                                                                                   Capitaliz
                                                                    New
                                                        Proporti             Bonus ation of Othe Subtot                    Proportio
                                       Amount                      shares                                     Amount
                                                          on                 shares public   rs    al                         n
                                                                   issued
                                                                                    reserve
I. Restricted shares                   234,279,323 22.96%                                                    234,279,323     22.96%

1. State holding                                    0                                                                  0

2. State-owned corporate
                                       118,967,998 11.66%                                                    118,967,998     11.66%
shares

3. Other domestic shares                    50,725        0.01%                                                   50,725      0.01%

Including: domestic corporate
                                                    0                                                                  0
shares

     Domestic nature person
                                            50,725        0.01%                                                   50,725      0.01%
shares

4. Foreign shares                      115,260,600 11.30%                                                    115,260,600     11.30%

Including: Foreign corporate
                                       115,260,600 11.30%                                                    115,260,600     11.30%
shares

     Foreign nature person shares                   0                                                                  0

II. Unrestricted shares                785,921,669 77.04%                                                    785,921,669     77.04%

1. RMB Ordinary shares                 613,541,669 60.14%                                                    613,541,669     60.14%

2. Domestically listed foreign
                                       172,380,000 16.90%                                                    172,380,000     16.90%
shares

3. Foreign listed foreign shares                    0                                                                  0

4. Other                                            0                                                                  0

III. Total shares                     1,020,200,992 100.00%                                                 1,020,200,992 100.00%

Reasons for share changed
□Applicable   √Not applicable
Approval of share changed
□Applicable   √Not applicable
Ownership transfer of share changed
□Applicable   √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□Applicable   √Not applicable



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Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□Applicable   √Not applicable
Explanation on changes of total shares and shareholder structure as well as assets and liability structure
□Applicable   √Not applicable

II. Amount of shareholders of the Company and particulars about shares holding
                                                                                                                                  In Share

Total common shareholders at                            Total preference shareholders with voting rights recovered at
                                               38,405                                                                                         0
period-end                                              end of reporting period (if applicable) (see Note 8)

                           Particulars about shares held above 5% by shareholders or top ten shareholders

                                                                                                                             Number of
                                                                       Total
                                                        Proporti               Changes Amount of             Amount of          share
                                       Nature of          on of  shareholders
   Full name of Shareholders                                                   in report restrict            un-restrict    pledged/frozen
                                      shareholder        shares at the end of
                                                          held                  period shares held           shares held State of Amo
                                                                 report period
                                                                                                                             share      unt

Wuxi Industry Development         State-owned
                                                         20.00%     204,059,398             118,967,998        85,091,400
Group Co., Ltd                    corporate

ROBERT BOSCH GMBH                 Foreign corporate      14.00%     142,841,400             115,260,600        27,580,800

China Construction Bank-
                                  Domestic
Fullgoal Tianbo Innovation
                                  non-state-owned         1.76%      18,000,000                                18,000,000
Theme Stock Securities
                                  corporate
Investment Fund

BBH BOS S/A FIDELITY FD -
                                  Foreign corporate       1.50%      15,271,893                                15,271,893
CHINA FOCUS FD

Bank of Communications –         Domestic
Fullgoal Tianyi Value Securities non-state-owned          1.33%      13,600,000                                13,600,000
Investment Fund                   corporate

                                  Domestic
National Social Security
                                  non-state-owned         1.03%      10,534,457                                10,534,457
Fund-106 portfolio
                                  corporate

                                  Domestic
National Social Security
                                  non-state-owned         0.88%        9,014,823                                9,014,823
Fund-103 portfolio
                                  corporate

CCB—Yinhua Core Value            Domestic
Selected Securities Investment    non-state-owned         0.88%        9,000,000                                9,000,000
Fund                              corporate

                                  Domestic
NCI—Bonus—Individual
                                  non-state-owned         0.81%        8,248,849                                8,248,849
Bonus -018L-FH002 Shen
                                  corporate

                                  Domestic
CCB—Bosera Theme Industry                                0.78%        7,980,800                                7,980,800
                                  non-state-owned

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                                                                       无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


Securities Investment Fund       corporate

                                                      Among the top ten shareholders, there has no associated relationship between
                                                      Wuxi Industry Development Croup Co., Ltd. and other shareholders, the first
                                                      largest shareholder of the Company; and they do not belong to the consistent
Explanation on related relationship or concerted      actionist regulated by the Management Measure of Information Disclosure on
action among the abovementioned shareholders          Change of Shareholding for Listed Company.
                                                      Fullgoal Tianbo Innovation Theme Stock Securities Investment Fund and
                                                      Fullgoal Tianyi Value Security Investment Fund shares same fund manager
                                                      –Fullgoal Fund Management Co., Ltd.


                                   Particular about top ten shareholders with un-restrict shares held


                                                                   Amount of un-restricted               Type of shares
                      Shareholders’ name                               shares held at
                                                                                                        Type               Amount
                                                                          period-end

WUXI INDUSTRY DEVELOPMENT CROUP CO., LTD.                                       85,091,400 RMB common shares              85,091,400

ROBERT BOSCH GMBH                                                               27,580,800 Domestically foreign shares 27,580,800

China Construction Bank-Fullgoal Tianbo Innovation Theme
                                                                                18,000,000 RMB common shares              18,000,000
Stock Securities Investment Fund

BBH BOS S/A FIDELITY FD - CHINA FOCUS FD                                        15,271,893 Domestically foreign shares 15,271,893

Bank of Communications – Fullgoal Tianyi Value Securities
                                                                                13,600,000 RMB common shares              13,600,000
Investment Fund

National Social Security Fund-106 portfolio                                     10,534,457 RMB common shares              10,534,457

National Social Security Fund-103 portfolio                                       9,014,823 RMB common shares              9,014,823

CCB—Yinhua Core Value Selected Securities Investment Fund                        9,000,000 RMB common shares              9,000,000

NCI—Bonus—Individual Bonus -018L-FH002 Shen                                     8,248,849 RMB common shares              8,248,849

CCB—Bosera Theme Industry Securities Investment Fund                             7,980,800 RMB common shares              7,980,800

                                                                  Among the top ten shareholders, there has no associated
                                                                  relationship between Wuxi Industry Development Croup Co., Ltd.
                                                                  and other shareholders, the first largest shareholder of the
Expiation on associated relationship or consistent actors within Company; and they do not belong to the consistent actionist
the top 10 un-restrict shareholders and between top 10            regulated by the Management Measure of Information Disclosure
un-restrict shareholders and top 10 shareholders                  on Change of Shareholding for Listed Company.
                                                                  Fullgoal Tianbo Innovation Theme Stock Securities Investment
                                                                  Fund and Fullgoal Tianyi Value Security Investment Fund shares
                                                                  same fund manager –Fullgoal Fund Management Co., Ltd.

Whether has a buy-back agreement dealing in reporting period
□Yes √No
The shareholders o f the Company had no buy-back agreement dealing in reporting period.



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                                                                      无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


III. Changes of controlling shareholders or actual controller

Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
Changes of controlling shareholders had no change in reporting period.
Changes of actual controller in reporting period
□ Applicable √ Not applicable
Changes of actual controller in reporting period had no change in reporting period.

IV. Share holding increasing plan proposed or implemented in reporting period from
shareholder of the Company and its concerted action person

□ Applicable   √Not applicable
As far as the Company know, there are no share holding increasing plan proposed or implemented in Period from shareholder of the
Company and its concerted action person




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                                                   无锡威孚高科技集团股份有限公司 2014 年半年度报告全文




                                  Section VII. Preferred Stock

I. Issuance and listing of preferred stock in Period

□ Applicable √ Not applicable


II. Number of shareholders with preferred stock held and shareholdings

□ Applicable √ Not applicable


III. Repurchase and conversion of preferred stock

1. Preferred stock repurchased

□ Applicable √ Not applicable


2. Preferred stock converted

□ Applicable √ Not applicable


IV. Preferred stock with voting rights recovered and executed

□ Applicable √ Not applicable


V. Accounting policy taken for preferred stock and reasons

□ Applicable √ Not applicable




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                                                                      无锡威孚高科技集团股份有限公司 2014 年半年度报告全文



                 Section VIII. Directors, Supervisors and Senior Executives

I. Changes of shares held by directors, supervisors and senior executives

□ Applicable   √ Not applicable
Shares held by directors, supervisors and senior executives have no changes in reporting period, found more details in Annual Report
2013.


II. Resignation and dismissal of directors, supervisors and senior executives

□ Applicable   √ Not applicable
Resignation and dismissal of directors, supervisors and senior executives have no changes in reporting period, found more details in
Annual Report 2013.




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                                         Section IX. Financial Report

I. Audit reports

Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited


II. Financial statements

Units in Notes of Financial Statements is RMB


1. Consolidated balance sheet

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

                                  Item                                 Closing balance          Opening balance

Current assets:

     Monetary fund                                                          2,306,305,146.37        2,447,555,672.40

     Settlement provisions

     Capital lent

     Transaction finance asset

     Notes receivable                                                       1,105,150,767.02        1,090,280,233.40

     Account receivable                                                     1,738,687,233.22        1,132,835,466.09

     Accounts paid in advance                                                326,013,163.16           174,401,410.49

     Insurance receivable

     Reinsurance receivables

     Contract reserve of reinsurance receivable

     Interest receivable                                                       6,036,756.73            51,438,634.58

     Dividend receivable                                                                               22,937,046.01

     Other receivables                                                        17,043,712.67            11,486,223.97

     Purchase restituted finance asset

     Inventories                                                             899,122,004.47           986,790,491.70

     Non-current asset due within one year

     Other current assets                                                   1,562,493,085.81        1,580,056,398.02

Total current assets                                                        7,960,851,869.45        7,497,781,576.66

Non-current assets:


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                                                无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


     Granted entrust loans and advances

     Financial assets available for sale                     333,349,600.00           385,009,400.00

     Hold-to-maturity investment                             330,000,000.00           400,000,000.00

     Long-term account receivable

     Long-term equity investment                            3,265,680,009.01        2,622,500,708.20

     Investment real estate                                     3,196,498.86            3,424,363.44

     Fixed assets                                           1,480,504,253.17        1,471,037,804.88

     Construction in process                                 370,470,483.89           199,463,338.80

     Engineering material

     Disposal of fixed asset

     Productive biological assets

     Oil and gas asset

     Intangible assets                                       355,586,789.13           360,284,868.85

     Expense on Research and Development

     Goodwill                                                   1,784,086.79            1,784,086.79

 Long-term expenses to be apportioned                         14,731,686.58            16,331,775.24

     Deferred income tax asset                               122,322,022.07           116,614,808.05

     Other non-current asset

Total non-current asset                                     6,277,625,429.50        5,576,451,154.25

Total assets                                               14,238,477,298.95       13,074,232,730.91

Current liabilities:

     Short-term loans                                        309,000,000.00           399,500,000.00

     Loan from central bank

     Absorbing deposit and interbank deposit

     Capital borrowed

     Transaction financial liabilities

     Notes payable                                           635,270,851.53           383,418,397.65

     Accounts payable                                       1,667,523,955.75        1,476,781,979.39

     Accounts received in advance                             44,926,518.33            42,297,015.90

     Selling financial asset of repurchase

     Commission charge and commission payable

     Wage payable                                            307,682,604.62           295,838,993.71

     Taxes payable                                            47,869,222.26            43,814,597.61

     Interest payable                                           1,788,111.11             996,716.67



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                                                                 无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


     Dividend payable                                                         306,060,297.60

     Other accounts payable                                                    76,474,081.89            87,324,894.86

     Reinsurance payables

     Insurance contract reserve

     Security trading of agency

     Security sales of agency

     Non-current liabilities due within 1 year

     Other current liabilities                                                 33,647,894.88            26,314,544.23

Total current liabilities                                                    3,430,243,537.97        2,756,287,140.02

Non-current liabilities:

     Long-term loans                                                           60,000,000.00            60,000,000.00

     Bonds payable

     Long-term account payable                                                 19,191,818.00            19,191,818.00

     Special accounts payable                                                  20,496,771.02            25,655,817.40

     Projected liabilities

     Deferred income tax liabilities                                           18,283,907.90            19,938,394.40

     Other non-current liabilities                                            198,379,040.61           195,506,040.61

Total non-current liabilities                                                 316,351,537.53           320,292,070.41

Total liabilities                                                            3,746,595,075.50        3,076,579,210.43

Owners’ equity(or Shareholders’ equity):

  Paid-in capital( or share capital)                                         1,020,200,992.00        1,020,200,992.00

     Capital public reserve                                                  3,685,131,274.57        3,729,042,104.57

     Less: Inventory shares

     Reasonable reserve                                                          1,200,135.80            1,255,141.19

     Surplus public reserve                                                   433,608,687.76           433,608,687.76

     Provision of general risk

     Retained profit                                                         4,951,183,795.93        4,416,658,298.29

     Balance difference of foreign currency translation

Total owner’s equity attributable to parent Company                        10,091,324,886.06        9,600,765,223.81

Minority interests                                                            400,557,337.39           396,888,296.67

Total owner’s equity( or shareholders equity)                              10,491,882,223.45        9,997,653,520.48

Total liabilities and owner’s equity( or shareholders equity)              14,238,477,298.95       13,074,232,730.91


Legal Representative: Chen Xuejun                                    Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin


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                                                   无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


2. Balance sheet of parent company

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

                                    Item                  Closing balance         Opening balance

Current assets:

     Monetary fund                                            1,446,459,672.52         1,485,894,410.54

     Transaction finance asset

     Notes receivable                                           288,095,579.28           348,205,626.83

     Account receivable                                         971,372,531.16           665,090,625.52

     Accounts paid in advance                                   232,713,522.67            85,580,666.96

     Interest receivable                                                                  45,000,000.00

     Dividend receivable                                                                  21,925,117.50

     Other receivables                                           15,096,164.92             2,907,285.14

     Inventory                                                  192,068,169.52           226,017,992.28

     Non-current asset due within one year

     Other current assets                                     1,552,100,000.00         1,562,100,000.00

Total current assets                                          4,697,905,640.07         4,442,721,724.77

Non-current assets:

     Financial assets available for sale                        333,349,600.00           385,009,400.00

     Hold-to-maturity investment                                330,000,000.00           400,000,000.00

     Long-term account receivable

     Long-term equity investment                              4,222,901,693.72         3,632,576,088.69

     Investment real estate

     Fixed assets                                               639,959,644.85           640,596,120.54

     Construction in process                                    288,654,765.03           136,613,517.22

     Engineering material

     Disposal of fixed asset

     Productive biological assets

     Oil and gas asset

     Intangible assets                                          196,350,185.24           198,885,843.05

     Expense on Research and Development

     Goodwill

 Long-term expenses to be apportioned

     Deferred income tax asset                                   67,932,725.90            64,315,609.74


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                                                 无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


     Other non-current asset

Total non-current asset                                     6,079,148,614.74         5,457,996,579.24

Total assets                                               10,777,054,254.81         9,900,718,304.01

Current liabilities:

     Short-term loans                                         120,000,000.00           220,000,000.00

     Transaction financial liabilities

     Notes payable                                            350,310,000.00           191,790,000.00

     Accounts payable                                         586,236,913.10           596,257,017.04

     Accounts received in advance                              10,494,936.27            17,577,849.84

     Wage payable                                             212,372,397.87           183,313,610.02

     Taxes payable                                             16,124,276.26            38,260,172.61

     Interest payable                                                                      340,511.11

     Dividend payable                                         306,060,297.60

     Other accounts payable                                   331,870,413.35           219,154,760.28

     Non-current liabilities due within 1 year

     Other current liabilities

Total current liabilities                                   1,933,469,234.45         1,466,693,920.90

Non-current liabilities:

     Long-term loans

     Bonds payable

     Long-term account payable

     Special accounts payable                                   2,231,688.91             7,390,735.29

     Projected liabilities

     Deferred income tax liabilities                           15,871,515.00            17,470,485.00

     Other non-current liabilities                            181,898,815.24           181,898,815.24

Total non-current liabilities                                 200,002,019.15           206,760,035.53

Total liabilities                                           2,133,471,253.60         1,673,453,956.43

Owners’ equity(or Shareholders’ equity):

  Paid-in capital( or share capital)                        1,020,200,992.00         1,020,200,992.00

     Capital public reserve                                 3,716,336,644.50         3,760,247,474.50

     Less: Inventory shares

     Reasonable reserve                                            58,899.85

     Surplus public reserve                                   433,608,687.76           433,608,687.76

     Provision of general risk



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                                                                     无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


     Retained profit                                                             3,473,377,777.10        3,013,207,193.32

     Balance difference of foreign currency translation

Total owner’s equity( or shareholders equity)                                   8,643,583,001.21        8,227,264,347.58

Total liabilities and owner’s equity( or shareholders equity)                 10,777,054,254.81         9,900,718,304.01


Legal Representative: Chen Xuejun                                        Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin


3. Consolidated profit statement

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

                                   Item                                      Current Period            Last Period

I. Total operating income                                                        3,529,819,855.63        2,878,965,006.18

Including: Operating income                                                      3,529,819,855.63        2,878,965,006.18

             Interest income

     Insurance gained

     Commission charge and commission income

II. Total operating cost                                                         3,131,829,145.38        2,569,127,289.28

Including: Operating cost                                                        2,668,547,637.45        2,221,406,094.80

     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                                                       21,943,274.39           18,439,419.84

     Sales expenses                                                               102,594,327.49            81,319,229.85

     Administration expenses                                                      344,239,876.45           275,092,115.54

     Financial expenses                                                            -15,309,956.65           -27,181,590.78

     Losses of devaluation of asset                                                  9,813,986.25                52,020.03

     Add: Changing income of fair value(Loss is listed with ―-‖)

     Investment income (Loss is listed with ―-‖)                                537,050,581.98           298,989,670.51

     Including: Investment income on affiliated Company and joint
                                                                                  516,186,307.98           273,472,173.93
venture



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                                                                       无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


           Exchange income (Loss is listed with ―-‖)

III. Operating profit    (Loss is listed with ―-‖)                                935,041,292.23           608,827,387.41

     Add: Non-operating income                                                            8,951,234.72            2,292,992.46

     Less: Non-operating expense                                                          7,935,026.94            5,046,403.57

     Including: Disposal loss of non-current asset                                         300,543.56             1,725,468.28

IV. Total Profit   (Loss is listed with ―-‖)                                      936,057,500.01           606,073,976.30

     Less: Income tax                                                                 65,737,472.85           52,038,268.65

V. Net profit (Net loss is listed with ―-‖)                                       870,320,027.16           554,035,707.65

     Including: net profit realized for merged party before combination

    Net profit attributable to owner’s equity of parent Company                    840,585,795.24           531,953,834.22

 Minority shareholders’ gains and losses                                             29,734,231.92           22,081,873.43

VI. Earnings per share                                                               --                      --

i. Basic earnings per share                                                                       0.82                    0.52

ii. Diluted earnings per share                                                                    0.82                    0.52

VII. Other consolidated income                                                       -43,910,830.00           65,789,575.00

VIII. Total consolidated income                                                     826,409,197.16           619,825,282.65

  Total consolidated income attributable to owners of parent Company                796,674,965.24           597,743,409.22

     Total consolidated income attributable to minority shareholders                  29,734,231.92           22,081,873.43


Legal Representative: Chen Xuejun                                          Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin


4. Profit statement of parent company

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

                                     Item                                      Current Period            Last Period

I. Operation income                                                                1,326,473,373.98        1,270,886,428.63

  Less: Operation cost                                                             1,054,382,015.54        1,083,696,285.15

     Operating tax and extras                                                             6,946,840.87            7,233,003.17

     Sales expenses                                                                   56,692,411.84           43,376,650.54

     Administration expenses                                                        152,005,287.14           113,257,450.11

     Financial expenses                                                              -13,052,126.61           -29,351,061.05

     Losses of devaluation of asset                                                   -3,209,342.25                129,551.83

     Add: Changing income of fair value(Loss is listed with ―-‖)

     Investment income (Loss is listed with ―-‖)                                  709,253,595.49           487,583,047.17


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                                                                         无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


          Including: Investment income on affiliated Company and joint
                                                                                      492,416,778.66           247,946,222.53
venture

II. Operating profit    (Loss is listed with ―-‖)                                   781,961,882.94           540,127,596.05

     Add: Non-operating income                                                              6,900,191.74             661,676.64

     Less: Non-operating expense                                                            6,153,060.18            1,499,366.12

     Including: Disposal loss of non-current asset                                           172,625.11              109,273.68

III. Total Profit   (Loss is listed with ―-‖)                                       782,709,014.50           539,289,906.57

     Less: Income tax                                                                   16,478,133.12               9,835,613.57

IV. Net profit (Net loss is listed with ―-‖)                                        766,230,881.38           529,454,293.00

V. Earnings per share                                                                  --                      --

i. Basic earnings per share                                                                         0.75                    0.52

ii. Diluted earnings per share                                                                      0.75                    0.52

VI. Other consolidated income                                                          -43,910,830.00           65,789,575.00

VII. Total consolidated income                                                        722,320,051.38           595,243,868.00


Legal Representative: Chen Xuejun                                            Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin


5. Consolidated cash flow statement

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

                                      Item                                       Current Period            Last Period

I. Cash flows arising from operating activities:

     Cash received from selling commodities and providing labor
                                                                                     3,480,224,120.49        2,724,674,871.14
services

     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



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                                                                       无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


     Write-back of tax received                                                      19,404,693.97            18,083,551.48

     Other cash received concerning operating activities                             81,374,338.65            52,716,388.42

         Subtotal of cash inflow arising from operating activities                3,581,003,153.11         2,795,474,811.04

     Cash paid for purchasing commodities and receiving labor service             2,283,048,356.05         1,820,040,005.91

     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                                             429,559,435.23           286,348,011.92

     Taxes paid                                                                     285,823,569.81           233,605,141.73

     Other cash paid concerning operating activities                                188,959,682.61           136,908,363.48

     Subtotal of cash outflow arising from operating activities                   3,187,391,043.70         2,476,901,523.04

     Net cash flows arising from operating activities                               393,612,109.41           318,573,288.00

II. Cash flows arising from investing activities:

     Cash received from recovering investment                                       836,000,000.00           644,000,000.00

     Cash received from investment income                                            48,736,536.92            19,267,496.58

     Net cash received from disposal of fixed, intangible and Other
                                                                                       680,763.68              3,628,914.94
long-term assets

     Net cash received from disposal of subsidiaries and Other units

     Other cash received concerning investing activities

     Subtotal of cash inflow from investing activities                              885,417,300.60           666,896,411.52

     Cash paid for purchasing fixed, intangible and Other long-term
                                                                                    407,597,476.58           124,462,991.28
assets

     Cash paid for investment                                                       850,000,000.00         1,446,781,500.00

     Net increase of mortgaged loans

     Net cash received from subsidiaries and Other units                                                     -18,719,339.18

     Other cash paid concerning investing activities                                 15,348,589.18

     Subtotal of cash outflow from investing activities                           1,272,946,065.76         1,552,525,152.10

     Net cash flows arising from investing activities                              -387,528,765.16          -885,628,740.58

III. Cash flows arising from financing activities:

     Cash received from absorbing investment                                          3,047,322.07             9,120,000.00

     Including: Cash received from absorbing minority shareholders’
                                                                                      3,047,322.07             9,120,000.00
investment by subsidiaries

     Cash received from loans                                                       378,500,000.00           405,000,000.00


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                                                                         无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


     Cash received from issuing bonds

     Other cash received concerning financing activities

       Subtotal of cash inflow from financing activities                              381,547,322.07           414,120,000.00

     Cash paid for settling debts                                                     469,000,000.00            90,000,000.00

     Cash paid for dividend and profit distributing or interest paying                  29,655,555.69            20,611,820.15

     Including: Dividend and profit of minority shareholder paid by
                                                                                        18,898,868.89           13,700,000.00
subsidiaries

     Other cash paid concerning financing activities                                                               339,091.00

     Subtotal of cash outflow from financing activities                               498,655,555.69           110,950,911.15

     Net cash flows arising from financing activities                                 -117,108,233.62          303,169,088.85

IV. Influence on cash due to fluctuation in exchange rate

V. Net increase of cash and cash equivalents                                          -111,024,889.37         -263,886,363.73

Add: Balance of cash and cash equivalents at the period -begin                       2,288,739,620.44        2,432,803,698.08

VI. Balance of cash and cash equivalents at the period –end                         2,177,714,731.07        2,168,917,334.35


Legal Representative: Chen Xuejun                                            Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin


6. Cash flow statement of parent company

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

                                    Item                                         Current Period            Last Period

I. Cash flows arising from operating activities:

     Cash received from selling commodities and providing labor
                                                                                     1,294,576,520.94        1,429,103,912.94
services

     Write-back of tax received

     Other cash received concerning operating activities                                69,837,433.15           21,670,581.21

      Subtotal of cash inflow arising from operating activities                      1,364,413,954.09        1,450,774,494.15

     Cash paid for purchasing commodities and receiving labor service                 865,335,890.75           711,140,296.61

     Cash paid to/for staff and workers                                               176,842,863.16           119,741,073.35

     Taxes paid                                                                       103,749,319.05            98,288,805.19

     Other cash paid concerning operating activities                                    70,331,402.10           67,800,690.93

     Subtotal of cash outflow arising from operating activities                      1,216,259,475.06          996,970,866.08

     Net cash flows arising from operating activities                                 148,154,479.03           453,803,628.07

II. Cash flows arising from investing activities:



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                                                                          无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


     Cash received from recovering investment                                          830,000,000.00           644,000,000.00

     Cash received from investment income                                              244,994,820.61           233,386,824.64

     Net cash received from disposal of fixed, intangible and Other
                                                                                          321,910.72                 80,730.24
long-term assets

     Net cash received from disposal of subsidiaries and Other units                    26,901,043.14

     Other cash received concerning investing activities

     Subtotal of cash inflow from investing activities                               1,102,217,774.47           877,467,554.88

     Cash paid for purchasing fixed, intangible and Other long-term
                                                                                       317,012,789.86            72,816,276.52
assets

     Cash paid for investment                                                          853,169,578.60         1,469,063,187.00

     Net cash received from subsidiaries and Other units

     Other cash paid concerning investing activities                                     5,159,046.38

Subtotal of cash outflow from investing activities                                   1,175,341,414.84         1,541,879,463.52

     Net cash flows arising from investing activities                                  -73,123,640.37          -664,411,908.64

III. Cash flows arising from financing activities:

     Cash received from absorbing investment

     Cash received from loans                                                          200,000,000.00           220,000,000.00

     Cash received from issuing bonds

     Other cash received concerning financing activities

     Subtotal of cash inflow from financing activities                                 200,000,000.00           220,000,000.00

     Cash paid for settling debts                                                      300,000,000.00

     Cash paid for dividend and profit distributing or interest paying                   6,674,731.64             3,780,000.00

     Other cash paid concerning financing activities

     Subtotal of cash outflow from financing activities                                306,674,731.64             3,780,000.00

         Net cash flows arising from financing activities                             -106,674,731.64           216,220,000.00

IV. Influence on cash due to fluctuation in exchange rate

V. Net increase of cash and cash equivalents                                           -31,643,892.98             5,611,719.43

         Add: Balance of cash and cash equivalents at the period -begin              1,422,429,501.73         1,524,564,526.97

VI. Balance of cash and cash equivalents at the period –end                         1,390,785,608.75         1,530,176,246.40


Legal Representative: Chen Xuejun                                             Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin




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                                                                                                                                         无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


7. Consolidate Changes of Owners’ Equity

Prepared by Weifu High-Technology Group Co., Ltd
Current Period
                                                                                                                                                                                               In RMB

                                                                                                                 Current Period

                                                                            Owners’ equity attributable to the parent Company

                   Item                                                             Less:                                      Gener
                                                                                                                                                                      Minority’s     Total Owners’
                                             Paid-in capital                        Treasu   Reasonable                        al risk
                                                                 Capital reserves                           Surplus reserves             Retained profit     Other      equity           equity
                                            (or share capital)                        ry      reserve                          provisi
                                                                                    Stock                                        on

    I. Balance at the end of the last
                                            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 9,997,653,520.48
year
    Add:       Changes    of   accounting
policy

    Error correction of the last period

       Other

II. Balance at the beginning of this
                                            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 9,997,653,520.48
year

III. Increase/ Decrease in this year
                                                                   -43,910,830.00              -55,005.39                                  534,525,497.64              3,669,040.72   494,228,702.97
(Decrease is listed with ―-‖)

(I) Net profit                                                                                                                             840,585,795.24             29,734,231.92   870,320,027.16

(II) Other consolidated income                                     -43,910,830.00                                                                                                      -43,910,830.00

 Subtotal of (I) and (II)                                          -43,910,830.00                                                          840,585,795.24             29,734,231.92   826,409,197.16

(III) Owners’ devoted and decreased
                                                                                                                                                                      -9,144,804.31     -9,144,804.31
capital

                                                                                                                                                                                                       48
                                                                                                              无锡威孚高科技集团股份有限公司 2014 年半年度报告全文

1. Owners’ devoted capital                                                                                                          -9,144,804.31     -9,144,804.31

2. Amount calculated into owners’
equity paid in shares

3. Other

(IV) Profit distribution                                                                                        -306,060,297.60     -16,897,199.69   -322,957,497.29

     1. Withdrawal of surplus reserves

2.   Withdrawal     of     general   risk
provisions

3. Distribution for owners (or
                                                                                                                -306,060,297.60     -16,897,199.69   -322,957,497.29
shareholders)

4. Other

(V) Carrying forward internal owners’
equity

1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed to
capital (share capital)
3. Remedying loss with surplus
reserve

4. Other

(VI) Reasonable reserve                                                           -55,005.39                                            -23,187.20        -78,192.59

1. Withdrawal in the report period                                              9,151,156.32                                          1,041,547.32    10,192,703.64

2. Usage in the report period                                                   9,206,161.71                                          1,064,734.52    10,270,896.23

(VII)Others

IV. Balance at the end of the report
                                            1,020,200,992.00 3,685,131,274.57   1,200,135.80 433,608,687.76    4,951,183,795.93     400,557,337.39 10,491,882,223.45
period

                                                                                                                                                                  49
                                                                                                                                       无锡威孚高科技集团股份有限公司 2014 年半年度报告全文
Amount at last year                                                                                                                                                                      In RMB

                                                                                                             Amount at last year

                                                                          Owners’ equity attributable to the parent Company

                  Item                                                            Less:                                      Gener
                                                                                                                                                                                    Total Owners’
                                          Paid-in capital(or                      Treasu   Reasonable                        al risk                      Othe Minority’s equity
                                                               Capital reserves                           Surplus reserves             Retained profit                                 equity
                                            share capital)                          ry      reserve                          provisi                       r
                                                                                  Stock                                        on

I. Balance at the end of the last year      680,133,995.00 3,689,694,029.52                                340,066,997.50              3,946,085,733.22          305,003,245.53 8,960,984,000.77

       Add: Retroactive adjustment
arising from combination under same
control

    Add: Changes of accounting
policy

    Error correction of the last period

       Other

II. Balance at the beginning of this
                                            680,133,995.00 3,689,694,029.52                                340,066,997.50              3,946,085,733.22          305,003,245.53 8,960,984,000.77
year

III. Increase/ Decrease in this year
                                            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
(Decrease is listed with ―-‖)

(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 decreased
                                                                  -3,141,979.95                                                                                   73,309,536.01      70,167,556.06
capital

1. Owners’ devoted capital                                                                                                                                       73,309,536.01      73,309,536.01

2. Amount calculated into owners’

                                                                                                                                                                                                     50
                                                                                                                          无锡威孚高科技集团股份有限公司 2014 年半年度报告全文
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 reserves                                                                         93,541,690.26     -93,541,690.26

2.   Withdrawal     of     general   risk
provisions

3. Distribution for owners (or
                                                                                                                           -204,040,198.50          -27,705,305.87    -231,745,504.37
shareholders)

4. Other                                     340,066,997.00                                                                -340,066,997.00

(V) Carrying forward internal
owners’ equity

     1. Capital reserves conversed to
capital (share capital)
     2. Surplus reserves conversed to
capital (share capital)
     3. Remedying loss with surplus
reserve

     4. Other

(VI) Reasonable reserve                                                                   1,255,141.19                                                  208,738.88        1,463,880.07

1. Withdrawal in the report period                                                      17,366,734.77                                                 2,119,500.71      19,486,235.48

2. Usage in the report period                                                            16,111,593.58                                                1,910,761.83      18,022,355.41

(VII)Others

IV. Balance at the end of the report
                                            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 9,997,653,520.48
period


Legal Representative: Chen Xuejun                             Person in charge of accounting works: Ou Jianbin                Person in charge of accounting institute: Ou Jianbin


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8. Statement on Changes of Owners’ Equity of Parent Company
Prepared by Weifu High-Technology Group Co., Ltd
Current Period
                                                                                                                                                                                    In RMB

                                                                                                             Current Period

                                                                                                                                             General
                        Item                     Paid-in capital(or                       Less: Treasury   Reasonable                                                      Total Owners’
                                                                      Capital reserves                                    Surplus reserves     risk      Retained profit
                                                   share capital)                             Stock         reserve                                                           equity
                                                                                                                                             provision

I. Balance at the end of the last year            1,020,200,992.00    3,760,247,474.50                                     433,608,687.76                3,013,207,193.32 8,227,264,347.58

     Add: Changes of accounting policy

     Error correction of the last period

      Other

II. Balance at the beginning of this year         1,020,200,992.00    3,760,247,474.50                                     433,608,687.76                3,013,207,193.32 8,227,264,347.58

III. Increase/ Decrease in this year (Decrease
                                                                         -43,910,830.00                       58,899.85                                   460,170,583.78    416,318,653.63
is listed with ―-‖)

(I) Net profit                                                                                                                                            766,230,881.38    766,230,881.38

(II) Other consolidated income                                           -43,910,830.00                                                                                     -43,910,830.00

Subtotal of (I) and (II)                                                 -43,910,830.00                                                                   766,230,881.38    722,320,051.38

(III) Owners’ devoted and decreased capital

 1. Owners’ devoted capital

2. Amount calculated into Owners’ equity
paid in shares

3. Other

(IV) Profit distribution                                                                                                                                 -306,060,297.60   -306,060,297.60

                                                                                                                                                                                            52
                                                                                                        无锡威孚高科技集团股份有限公司 2014 年半年度报告全文

1. Withdrawal of surplus reserves

2. Withdrawal of general risk provisions

3. Distribution for owners (or shareholders)                                                                                 -306,060,297.60   -306,060,297.60

4. Others

(V) Carrying forward internal owners’ equity

1. Capital reserves conversed to capital (share
capital)

2. Surplus reserves conversed to capital (share
capital)

3. Remedying loss with surplus reserve

4. Others

(VI) Reasonable reserve                                                                   58,899.85                                                 58,899.85

1. Withdrawal in the report period                                                      2,181,032.81                                              2,181,032.81

2. Usage in the report period                                                           2,122,132.96                                              2,122,132.96

(VII) Others

IV. Balance at the end of the report period       1,020,200,992.00   3,716,336,644.50     58,899.85 433,608,687.76          3,473,377,777.10 8,643,583,001.21




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                                                                                                                                 无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


Amount at last year
                                                                                                                                                                                   In RMB

                                                                                                           Amount at last year

                                                                                                                                            General
                        Item                      Paid-in capital                         Less: Treasury   Reasonable                                                     Total Owners’
                                                                      Capital reserves                                  Surplus reserves     risk      Retained profit
                                                 (or share capital)                           Stock         reserve                                                          equity
                                                                                                                                           provision

I. Balance at the end of the last year              680,133,995.00    3,717,757,419.50                                    340,066,997.50               2,715,439,176.46 7,453,397,588.46

     Add: Changes of accounting policy

     Error correction of the last period

      Other

II. Balance at the beginning of this year           680,133,995.00    3,717,757,419.50                                    340,066,997.50               2,715,439,176.46 7,453,397,588.46

III. Increase/ Decrease in this year (Decrease
                                                    340,066,997.00        42,490,055.00                                    93,541,690.26                297,768,016.86    773,866,759.12
is listed with ―-‖)

(I) Net profit                                                                                                                                          935,416,902.62    935,416,902.62

(II) Other consolidated income                                            42,490,055.00                                                                                     42,490,055.00

 Subtotal of (I) and (II)                                                 42,490,055.00                                                                 935,416,902.62    977,906,957.62

(III) Owners’ devoted and decreased capital

1. Owners’ devoted capital

2. Amount calculated into Owners’ equity
paid in shares

3. Other

(IV) Profit distribution                            340,066,997.00                                                         93,541,690.26               -637,648,885.76    -204,040,198.50

1. Withdrawal of surplus reserves                                                                                          93,541,690.26                 -93,541,690.26

2. Withdrawal of general risk provisions
                                                                                                                                                                                           54
                                                                                                                              无锡威孚高科技集团股份有限公司 2014 年半年度报告全文

3. Distribution for owners (or shareholders)                                                                                                           -204,040,198.50     -204,040,198.50

 4. Others                                         340,066,997.00                                                                                      -340,066,997.00

(V) Carrying forward internal owners’ equity

1. Capital reserves conversed to capital (share
capital)

2. Surplus reserves conversed to capital (share
capital)

3. Remedying loss with surplus reserve

4. Others

(VI) Reasonable reserve

1. Withdrawal in the report period                                                                          4,032,088.99                                                       4,032,088.99

2. Usage in the report period                                                                               4,032,088.99                                                       4,032,088.99

 (VII) Others

IV. Balance at the end of the report period       1,020,200,992.00   3,760,247,474.50                                      433,608,687.76             3,013,207,193.32 8,227,264,347.58


Legal Representative: Chen Xuejun                        Person in charge of accounting works: Ou Jianbin                          Person in charge of accounting institute: Ou Jianbin




                                                                                                                                                                                          55
                                                               无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


I I I . Basic information of the Company
1. Historical origin of the Company
By the approval of STGS (1992) No. 130 issued by Jiangsu Economic Restructuring Committee, Weifu
High-Technology Group Co., Ltd. (hereinafter referred to ―the Company‖ or ―Company‖) was established as a
company of limited liability with funds raised from targeted sources, and registered at Wuxi Administration for
Industry & Commerce in October 1992. The original share capital of the Company totaled RMB 115.4355 million,
including state-owned share capital amounting to RMB 92.4355 million, public corporate share capital amounting
to RMB 8 million and inner employee share capital amounting to RMB 15 million.


Between year of 1994 and 1995, the Company was restructured and became a holding subsidiary of Wuxi Weifu
Group Co., Ltd (hereinafter referred to as ―Weifu Group‖).


By the approval of Jiangsu ERC and Shenzhen Securities Administration Office in August 1995, the Company
issued 68 million special ordinary shares (B-share) with value of RMB 1.00 for each, and the total value of those
shares amounted to RMB 68 million. After the issuance, the Company’s total share capital increased to RMB
183.4355 million.


By the approval of CSRC in June 1998, the Company issued 120 million RMB ordinary shares (A-share) at
Shenzhen Stock Exchange through on-line pricing and issuing. After the issuance, the total share capital of the
Company amounted to RMB 303.4355 million.


In the middle of 1999, deliberated and approved by the Board and Shareholders’ General Meeting, the Company
implemented the plan of granting 3 bonus shares for each 10 shares. After that, the total share capital of the
Company amounted to RMB 394.46615 million, of which state-owned shares amounted to RMB 120.16615
million, public corporate shares RMB 10.4 million, foreign-funded shares (B-share) RMB 88.40 million, RMB
ordinary shares (A-share) RMB 156 million and inner employee shares RMB 19.5 million.


In the year 2000, by the approval of the CSRC and based upon the total share capital of 303.4355 million shares
after the issuance of A-share in June 1998, the Company allotted 3 shares for each 10 shares, with a price of RMB
10 for each allotted share. Actually 41.9 million shares was allotted, and the total share capital after the allotment
increased to RMB 436.36615 million, of which state-owned corporate shares amounted to RMB 121.56615
million, public corporate shares RMB 10.4 million, foreign-funded shares (B-share) RMB 88.4 million and RMB
ordinary shares (A-share) RMB 216 million.


In April 2005, Board of Directors of the Company has examined and approved 2004 Profit Pre-distribution Plan,
and examined and approved by 2004 Shareholders’ General Meeting , the Company distributed 3 shares for each
10 shares to the whole shareholders totaling to 130,909,845 shares in 2005.




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                                                            无锡威孚高科技集团股份有限公司 2014 年半年度报告全文


According to the Share Merger Reform Scheme of the Company that passed by related shareholders’ meeting of
Share Merger Reform and SGZF [2006] No.61 Reply on Questions about State-owned Equity Management in
Share Merger Reform of Weifu High-Technology Co., Ltd. issued by State-owned Assets Supervision &
Administration Commission of Jiangsu Province, the Weifu Group etc. 8 non-circulating shareholders arranged
pricing with granting 1.7 shares for each 10 shares to circulating A-share shareholders (totally granted 47,736,000
shares), so as to realize the originally non-circulating shares can be traded on market when satisfied certain
conditions, the scheme has been implemented on April 5, 2006.


On 27 May 2009, Weifu Group satisfied the consideration arrangement by dispatching 0.5 shares for each 10
shares based on the number of circulating A shares as prior to Share Merger Reform, according to the aforesaid
Share Merger Reform, with an aggregate of 14,039,979 shares dispatched. Subsequent to implementation of
dispatch of consideration shares, Weifu Group then held 100,021,999 shares of the Company, representing
17.63% of the total share capital of the Company.


Pursuant to the document (XGZQ(2009)No.46) about ―Approval for Merger of Wuxi Weifu Group Co., Ltd. by
Wuxi Industry Development Group Co., Ltd.‖ issued by the State-owned Assets Supervision and Administration
Commission of Wuxi City Government, Wuxi Industry Development Group Co., Ltd. (hereinafter referred to as
Wuxi Industry Group) acquired Weifu Group. After the merger, Weifu Group was then revoked, and its assets and
credits & debts were transferred to be under the name of Wuxi Industry Group. Accordingly, Wuxi Industry
Group became the first largest shareholder of the Company since then.


In accordance with the resolutions of shareholders' meeting and provisions of amended constitution, and approved
by [2012] No. 109 document of China Securities Regulatory Commission, in Feb., the Company issued RMB
ordinary shares (A-share) of 112,858,000 shares to Wuxi Industry Groups and overseas strategic investor,
ROBERT BOSCH GMBH (hereinafter referred to as Germany BOSCH), face value was RMB 1 Yuan per share,
added registered capital of RMB112,858,000 Yuan , and the registered capital after change was RMB
680,133,995 Yuan. Wuxi Industry Group is the first majority shareholder of the Company, and Germany BOSCH
is the second majority shareholder of the Company.


In March 2013, the profit distribution replan for year of 2012 was deliberated and approved by the Board, and also
passed in Annual General Meeting 2012 of the Company in May 2013. On basis of total share capital 680,133,995
shares, distribute 5-share for every 10 shares held by whole shareholders, 340,066,997 shares in total are
distributed. Total share captial of the Company amounting RMB 1,020,200,992 up to 31 December 2013.

2. Registered place, organization structure and head office of the Company
Registered place and head office of the Company: Wuxi, Jiangsu.
Registration number: 320200000014926.
The Company sets up Shareholders’ General Meeting, the Board of Directors and the Supervisory Committee.
The Company sets up Administration Department, Engineering Technology Research Institution, Human


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Resources Department, Office of the Board, Risk Management Department, Information Systems Department,
Market & Strategy Plan Department, Party-masses Security Department, Finance Control Department, Project
Purchase Department, MS Business Segment, AC Business Segment, and subsidiaries such as Wuxi Weifu Leader
Catalytic Converter Co., Ltd. (referred to as Weifu Leader), Nanjing Weifu Jinning Co., Ltd. (referred to as Weifu
Jinning), and Wuxi Weifu Automotive Diesel System Co., Ltd. (referred to as Weifu Diesel System).


3. Business nature and major operation activities of the Company
Operation scope of parent company: manufacture of engine fuel oil system products, fuel oil system testers and
equipments; sales of energy-oriented machinery, hardware & electric materials, chemical products and raw
materials (other than chemical dangerous). Auto spare parts, autos (other than autos under-9 seats); repair of
engine, technological development and consultancy service of machinery industry; import and export business in
respect of diversified commodities and technologies (other than those commodities and technologies limited or
forbidden by the State for import and export) by self-operation and works as agent for such business


Major subsidiaries respectively activate in production and sales of engine accessories, auto spare parts, mufflers,
and purifiers.


4. Relevant party offering approval reporting of financial statements and date thereof
Financial statements of the Company were approved by the Board of Directors for reporting dated 28 August
2014.


IV. Major Accounting Policies, Accounting Estimation and Previous Errors of the Company
1. Basis of preparation of financial statements
The financial statement were stated in compliance with Accounting Standard for Enterprises No.30-Presentation
of Financial Statement, with recognitions and measurements made by reference to Accounting Standard for
Enterprises and Application Instruments thereof promulgated by the Ministry of Finance dated 15 February 2006
in respect of the actual transactions and proceedings, on a basis of ongoing operation.
2. Statement on observation of Accounting Standard for Enterprises
Financial statements prepared by the Company were in accordance with requirements of Accounting Standard for
Enterprises, which truly and completely reflected the financial information of the Company, such as financial
position, operation achievements and cash flow.
3. Accounting period
The accounting period of the Company comprises of annual period and interim period, among which, the annual
period commences from 1 January to 31 December, and interim period includes monthly, quarterly and half-year.
4. Currency used in book-keeping
The 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 control

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Business combination under the same control: consideration paid by acquirer for combination and net assets
acquired by him shall all be measured with carrying value. Difference between carrying values of net assets and
combination consideration respectively obtained and paid by acquirer over total par value of shares in issue shall
be used to adjust capital reserve; when capital reserve is insufficient for offset, then retained profit shall be
adjusted. All direct related expenses arising from business combination, including auditing expenses paid for
combination, evaluation expenses and law service expenses, shall be recorded in current gains and losses upon
occurrence; while procedure charge and commission arising from issuance of equity securities or bonds in relation
to business combination shall be accounted in initial measurement amount of shareholders’ equity or liabilities.


(2) Business combination not under the same control
Business combination not under the same control: combination cost paid by acquirer and net recognizable assets
obtained from combination shall be measured at fair value. In the event that difference between combination costs
over fair value of net recognizable assets obtained from combination is positive, thus such difference shall be
recognized as goodwill; if negative, and then shall be accounted in current gains and losses. All direct related
expenses arising from business combination including auditing expenses paid for combination, evaluation
expenses and law service expenses shall be recorded in business combination cost; while procedure charge and
commission arising from issuance of equity securities or bonds in relation to business combination shall be
accounted in initial measurement amount 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 scope
Preparation of the consolidation financial statement of the Company mainly complied with the consolidation
scope recognized by Parent Company Theory, details consolidation scope as:
①More than half of the equity capital of the investee enterprise that owned by Parent company, directly/indirectly
and jointly owned more than half of the equity capital by indirectly and directly included;
②Other investee enterprises control by Parent company including:
A. Holding more than half of voting right of the investee through agreement with other investors of the investee
enterprises; ;
B. Having the rights of financial and operation strategy controlled according to Article of Association to
Agreement;
C. Having the rights of appointment and dismissal on majority personnel’s in Board or in similar power institution

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of the enterprise;
D. Having more than half of the rights to vote in Board or similar power institution of the enterprise.
(2) Measures used in consolidation
①The Company consolidations permit since the day of actual control right obtained; cease consolidation since the
day of control right lost. Consolidation financial statement based on the financial statement of the Company and
other relevant information of vary subsidiaries that joint in the consolidation scope, adjusted long-term equity
investment to subsidiaries according to equity method, off-setting the investment, transaction and contacts
between the Company and vary subsidiaries that in the consolidation scope, consolidated for preparation after
minority 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 or
accounting period.
③Concerning the subsidiary obtained under combination with different control, adjusted several financial
statement of the subsidiary based on the fair value of recognizable net assets on purchased day while financial
statement consolidation; concerning the subsidiary obtained under combination with same control, considered
current status of being control by ultimate controller for consolidation while financial statement consolidation.


(2)Disclosure of related accounting method for buy-and-resell or sell-and-repurchase of equities in the same
subsidiary within two successive accounting years
Nil


8. Determination criteria of cash and cash equivalent
Cash equivalent represents such kind of investment featuring with short term (generally due within 3 months since
purchase day), active liquidity, being easy for converting to cash with already-known amount, as well as tiny
exposure to value change risks.


9. Foreign currency business and the conversion of foreign currency statement
(1) Foreign currency business
Foreign currency business is accounted with amount denominated in RMB as translated at the spot exchange rate
as of the occurrence day of such business. The occurred foreign currency exchange business or transactions with
foreign currency exchange involved shall be translated at the effective exchange rate (i.e. exchange rate adopted
by banks for such transactions) adopted by such transaction.
(2) Translation of foreign currency statement
As at balance sheet date, division between foreign currency monetary items and foreign currency non-monetary
items are dealt with according to the following principles:


Foreign currency monetary items are translated at spot exchange rate as of balance sheet date, and then recorded
in current gains and losses when happening during normal operation period; exchange gains and losses related to


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borrowings for purchasing fixed assets are disposed with principle of capitalization of borrowing expense.
Monetary item represents the monetary capital, and assets or liabilities respectively received or paid at fixed or
insurable amount, among other things, stock cash, bank deposit, account receivables, other receivables, long-term
receivables, short-term loans, account payables, other payables, long-term loans, bond payables and long-term
payables, etc.


Foreign currency non-monetary items are translated at spot exchange rate as of transaction date, with no change in
its amount accounted in standard currency. Non-monetary items represent items except for monetary items.


As for foreign currency non-monetary items measured at fair value, translation is subject to the spot exchange rate
as of the date when fair value is recognized. Difference between the accounted standard currency amount
subsequent to translation and its original accounted standard currency amount is dealt with as movement in fair
value (movement in exchange rate included), and then recorded in current gains and losses.


10. Financial instruments
Financial instruments including financial assets, financial liability and equity instrument


(1) Classification of financial instruments
In terms of investment purposes and economic natures, the Company divides its financial assets into transactional
financial assets, financial assets available for sale, account receivables and held-to-maturity investments, among
which, transactional financial asset is measured at fair value and movement of its fair value is recorded in current
gains and losses; financial asset available for sale is measured at fair value and movement of its fair value is
recorded in shareholders’ equity; account receivables and held-to-maturity investments are measured at amortized
cost.
(2) Recognition basis and measurement method for financial instruments
In the case that when a company constitutes one party to financial instrument agreement, one item of financial
asset or financial liability shall then be recognized
In terms of economic nature, the Company divides its financial liabilities into two groups, namely financial
liabilities at fair value through gains and losses and other financial liabilities at amortized cost.
(3) Recognition basis and measurement method for transfer of financial assets
That the Company grants or delivers financial assets to party other than the issuer of such financial assets equals
transfer of financial assets. Financial assets transferred could be the entire or part of such financial assets. Two
forms are listed as follows:
①Transfer of right for collecting cash flow of financial assets to another party;
②Transfer financial assets to another party, while the aforementioned right is retained, with obligation of paying
such cash flow to final collector.


In the even that the Company has transferred almost all risks and remunerations arising from ownership of all or


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part financial assets to another party, accordingly, recognition for such entire or part financial assets shall be
ceased. Gains and losses are determined by the received consideration less the carrying value of the transferred
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 as
financial liabilities.


As for the financial assets which the Company has neither transferred nor retained all risks and remunerations
attached to ownership of such financial assets, while control upon such financial assets still exists, recognition
shall be conducted in light of the degree of its continuous involvement in the transferred financial assets.
Accordingly, relevant liabilities shall be recognized.
(4) Recognition condition for termination of financial liability
Upon satisfaction of one of the following condition, financial assets will immediately experience discontinued
recognition:
①Right entitled by contract in respect of collection of cash flow from such financial asset terminates.
②Such financial assets have been transferred and meet discontinued recognition condition for financial assets as
regulated by Accounting Standard for Enterprise No.23-Transfer of Financial Assets.
Only when present obligations under financial liability have been released entirely or partly, could cease
recognition of such financial liability or part thereof.


(5) Deciding of fair value of financial assets and financial liabilities
① In case of an active market, financial assets or financial liabilities which are respectively held and proposed to
be undertaken by the Company are subject to the prevailing offer price of such market, and financial assets or
financial liabilities which are respectively proposed to be held and undertaken by the Company are subject to the
prevailing asked price of such market. In case of absence of such prevailing offer or asked prices, market
quotation of the latest transaction or adjusted market quotation of the latest transaction shall be adopted, except
that there is clear evidence showing that such market quotation is not fair value.


② In case of absence of an active market, the Company recognizes fair value by reference to valuation technology
which includes reference to the price adopted by parties who are willing to make business and knowing conditions
quite well in their latest transactions, reference to prevailing fair values of other financial instruments with similar
essence, discount cash flow method and option pricing pattern.
(6) Impairment test method and impairment provision method for financial assets (not including account
receivables)
The Company conducts inspection on carrying values of financial assets, except for transactional financial assets,
as at balance sheet date. If there is objective evidence indicating that impairment has happened to financial assets,
impairment reserve then shall be provided. Financial asset with great amount in single item is subject to separate
impairment test. In case of any objective evidence indicating that impairment has happened to such financial asset,


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impairment loss shall be recognized and recorded in current gains and losses. As for the financial assets with no
great amount in single item and those which prove to be not impaired after separate test, the Company will
conduct impairment test on basis of credit portfolio which is determined in light of customers’ credit records and
historical bad debts, so as to recognize impairment loss.


Objective evidence indicating impairment happens to financial assets means the proceedings meeting the three
characteristics: actually occurred subsequent to initial recognition of such financial assets, bring influence over the
estimated future cash flow of such financial assets, and such influence could be reliably measured by the
Company.
The followings are included in objective evidences indicating impairment happens to financial assets:
A: Serious financial difficulty happens to issuer or debtor;
B: Breach of terms of contract by debtor, such as breach or overdue in repaying interest or principal;
C: Creditor makes concession for debtors who experience financial trouble in light of consideration for economy
or laws;
D: Debtor is very likely to experience bankrupt or financial reorganization;
E: Financial assets are not able to be traded in active market since material financial difficulty happens to issuer;
F: It is unable to judge whether cash flow from certain asset in a group of financial assets has decreased, while it
is finally found that the estimated future cash flow of such financial asset has actually decreased since its initial
recognition and the decrease can be reliably measured by reference to the general valuation based on open data.
For example, payment capacity of debtor of such financial assets portfolio gradually worsens, or unemployment in
country or region where the debtor locates risen, price of guaranty falls greatly in the place where it locate, and the
industry in which it belongs to is unpromising;
G: Material negative changes happen to technologies, markets, economy or law environment in which debtor
operates, which leads to that equity instrument investor is not likely to be able to recover investment cost;
H: Fair value of equity instrument investment experiences severe or non-temporary falling;
I: Other objective evidence indicating impairment happens to financial assets.


In the event of impairment in financial asset at amortized cost, impairment loss is calculated based on the
difference between carrying value and present value of estimated future cash flow discounted at effective interest
rate.


After impairment loss is recognized for financial asset at amortized cost, if there is objective evidence indicating
value of such financial asset has recovered, which is objectively related to proceedings occurred after recognition
of such loss, the original impairment loss shall be reversed and recorded in current gains and losses. However, the
carrying value subsequent to such reversal shall not exceed the amortized cost of such financial asset as at the
reversal date on assumption that such impairment loss had not been provided.


Judging standards for vary impairment of financial assets available for sale



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At end of the Period, if the fair value of financial assets avilable for sale drop dramatically, or after considering
various relevant factors, the trend is estimate falls temporary, than impairment shall be recognized. The original
accumulated loss through owners’ equity directly arising from falling fair value shall be reversed and impairment
recognized. As for the recognized impairment losses of debt instruments available for sale, in later accounting
period, if the fair value gose up and objectively relevant to the event recognized after original impairment losses
confirmed, the original recognized impairment losses shall be reversed and reckoned into current gains/losses.
Impairment losses arising from invesment of equity insutrument availabel for sale, shall not be reversed through
gains and losses.
Standards of ―serious‖down for fair value of equity insutrument availabel for sale investment: Generally speaking,
as for those active equity investmentin in a good market liquidity, over 50% decline will recognize as serious
down.
Standards of ―non-temporary‖down for fair value of equity insutrument availabel for sale investment: Generally
speaking, if consecutive drop for over 6 months, than shall recognize as ―non-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 ability
Nil
11. Recognition standards and accrual method for bad debt provision for accounts receivable
(1) Bad debt provision for accounts receivable with single major amount

                                     The Company’s account receivables with above RMB 1 million in single item is defined as account
                                     receivables with significant amount in single item. Such kind of account receivables are recognized
Determine basis or amount
                                     as bad debts in case of impossible collection though with bankrupt properties or heritages of debtors
standards        for        single
                                     due to their bankrupt or death, or in the even that debtors haven’t implemented their repayment
significant amount
                                     obligations over 3 years upon expiration and there are obvious evidences indicating impossible
                                     collection.

Withdrawal       method        for As for account receivables with significant amount in single item which can not be directly
account with single significant recognized as bad debts, debt provision shall be provided according to the Company’s policies by
amount and withdrawal single item aged analysis method. 100% bad debt provision shall be provided for those account receivables with
bad debt provision                   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

Age                                                           A combination classified by age as major risk characteristic, withdrawal
                     Age analysis method
combination                                                   bad debt provision by age analysis method

In combination, accounts whose bad debts provision was accrued by age analysis
√ Applicable □ Not applicable


                 Account age                               Rate for receivables (%)                    Rate for other receivables
Within 1 year (one year included)                                                     10.00%                                        10.00%

Within 6 months                                                                        0.00%                                        0.00%


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6 months to 1 year                                                              10.00%                                       10.00%

1-2 years                                                                      20.00%                                       20.00%

2-3 years                                                                      40.00%                                       40.00%

Over 3 years                                                                   100.00%                                      100.00%

3-4 years                                                                     100.00%                                      100.00%

4-5 years                                                                     100.00%                                      100.00%

Over 5 years                                                                   100.00%                                      100.00%

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

Withdrawal method for bad 100% for provision percentage for percentage of total accounts receivable outstanding and 100% for
debt provision                provision percentage for percentage of total other receivable outstanding


12. Inventories
(1)Classification of inventories
The Company’s inventories are categorized into stock materials, product in process and stock goods etc.


(2)Pricing for delivered inventories
Pricing method: Other
A. Generally, stock materials are calculated at planned cost. Material cost difference is individually set according
to classification of grant types. Pursuant to the difference between the planned cost of the received or delivered
raw materials and the material cost the aforesaid cost should share after carrying forward at period-end, the
Company adjusts the planned cost to effective cost; finished products are priced at effective costs, and carried
forward to operating cost by weighted average method when being delivered;
B. Products in process are priced at effective costs, and carried forward to finished products at actually occurred
cost;
C. Finished self-produced products are priced at effective costs, and carried forward to operating cost by weighted
average method; external purchase goods (from import and export trades) are carried forward to sales cost by
individual pricing method.


(3)Recognition evidence for net realizable value of inventories and withdrawal method for inventory
impairment provision


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Inventories as at period-end are priced at the lower of costs and net realizable values; at period end, on the basis of
overall clearance about inventories, inventory impairment provision is withdrew for uncollectible part of costs of
inventories which result from destroy of inventories, out-of-time of all and part inventories, or sales price
lowering than cost. Inventory impairment provision for stock goods and quantity of raw materials is subject to the
difference between costs of single inventory item over its net realizable value. As for other raw materials with
large quantity and comparatively low unit prices, inventory impairment provision is withdrawn pursuant to
categories.


As for inventories such as stock goods and materials available for direct sales, their net realizable values are
determined by their estimated selling prices less estimated sales expenses and relevant taxes. For material
inventories held for purpose of production, their net realizable values are determined by the estimated selling
prices of finished products less estimated costs, estimated sales expenses and relevant taxes accumulated till
completion of production. As for inventories held for implementation of sales contracts or service contracts, their
net realizable values are calculated on the basis of contract prices. In the event that inventories held by a company
exceed order amount as agreed in sales contracts, net realizable values of the surplus part are calculated on the
basis of normal sale price.


(4) Inventory system
Inventory system: Perpetual Inventory System
(5) Amortization of low-value consumables and wrappage
Low-value consumables
Amortization Method: one-off amortization
Wrappage
Amortization Method: one-off amortization


13. Long-term equity investment
(1)Recognition of investment cost

Long-term equity investment mainly includes the equity investments made to subsidiaries, joint ventures and
associates, and the equity investment which couldn’t entitle the Company to conduct control, common control or
significant influence over the invested units and which have no quotation price in active market and whose fair
value could not be able to measured surely. Initial investment cost of long-term equity investment of the
Company is recognized by the following ways based on different acquisition ways:
①In situation of a long-term equity investment acquired through business combination under common control,
the carrying value of the owners’ equity of the acquired company as at the combination date is deemed as initial
investment cost for this long-term equity investment; difference between acquisition cost and initial investment
cost is used to adjust capital reserve. In case of insufficient capital reserve for offset, retained profit shall be then
adjusted.
②In situation of a long-term equity investment acquired through business combination not under common control,
the initial investment cost of long-term equity investment is determined at the fair value of assets involved at

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trading dated, equity instrument issued as well as liabilities occurred or undertaken. Realizable assets and
liabilities undertaken by such assets (including contingent liabilities) of the party being combined as at the
combination date are all measured at fair values, without consideration to amount of minority interests. The
surplus of combination cost less fair value net realizable assets of the party being combined is recorded as
goodwill, and the deficit is directly recognized in the consolidated statement of gains and losses.
③Long-term investments obtained through other ways:
A. Initial investment cost of long-term equity investment obtained through cash payment is determined according
to actual payment for purchase;
B. Initial investment cost of long-term equity investment obtained through issuance of equity securities is
determined at fair value of such securities;
C. Initial investment cost of long-term equity investment injected by investor is determined at the agreed value in
investment contract or agreement. In case of an unfair contract or agreement value, measurement shall be
conducted at fair value;
D. Initial investment cost of long-term equity investment (exchanged-in) obtained through exchange with
non-monetary assets, which is of commercial nature, is determined at fair value of the assets exchanged-out;
otherwise determined at carrying value of the assets exchanged-out if it is not of commercial nature;
E. Initial investment cost of long-term equity investment obtained through debt reorganization is determined at
fair value of such investment.


(2)Recognition method for subsequent measurement and gains and losses
①Investment to subsidiaries is calculated under cost method: it is referred to the equity investment made to
subsidiaries held by the Company which can conduct control upon invested unit. If the Company holds over 50%
equities of an entity or has control power in such entity though equity holding is fewer than 50%, such entity
comprises a subsidiary of the Company.
②Investment to joint ventures or associates is calculated under equity method: it is referred to the equity
investment made to joint ventures held by the Company which can conduct common control upon the joint
venture with other joint parties; it is referred to the equity investment made to associates held by the Company
which has material influence upon such associates. In the event that the Company holds equities of an entity from
20% to 50% and no essential control exists in such entity meanwhile or that though the Company holds equities of
an entity fewer than 20% while it has material influence upon such entity, then the entity shall be deemed as a
joint venture or associate of the Company. When recognizing its share in net gains and losses of the invested
unit, the Company shall achieve recognition based on fair values of various realizable assets of such invested unit
upon obtaining such investment after adjustment in net profit of such invested unit. In case of any inconsistency of
the accounting policies and accounting periods adopted by invested unit and the Company, financial statements of
such invested unit shall be subject to adjustment in compliance with accounting policies and accounting periods
adopted by the Company, so as to recognize investment gains and losses on that basis. As for treatment for other
movement of owners’ equity other than net gains and losses of invested unit, carrying value of long-term equity
investment shall be subject to adjustment which shall be then recorded in owners’ equity.

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③Long-term equity investment to entities where the Company has no control, common control or material
influence:
Long-term equity investment which has no quotation in active market and whose fair value could not be reliably
measured is calculated under cost method.
Long-term equity investment which has quotation in active market or whose fair value could be reliably measured
is presented under item of financial asset available for sale, and is measured at fair value, and fair value movement
thereof shall be recorded in shareholders’ equity.


(3)Reference for confirmation of common control and material influence in invested unit

Common control over invested unit means common control over certain economic activity pursuant to contract
agreement, and only exists when investors who need to share control power on material financial and operation
decisions related to such economic activity make unanimous agreement. That a party has material influence upon
invested unit means that such party has power to join decision-making related to finance and operation decisions
of the invested unit, while no ability of control or joint control with other parties upon establishement of such
decisions.


(4)Impairment test method and withdrawal method for impairment provision
If any impairment indication is found in long-term equity investment by the Company in its period-end inspection,
the recoverable amount shall be estimated. In case of such recoverable amount lowering than its carrying value,
impairment provision shall be withdrawn for long-term investment by reference to the difference of the aforesaid
two items. As for long-term equity investment which has no quotation in active market and whose fair value could
not be reliably measured, its impairment loss is determined by reference to its carrying value less the amount
recognized through discounting future cash flow at the prevailing market yield ratio of similar financial assets,
and then recorded in current gains and losses. As for long-term equity investment except for financial assets
available for sale, its impairment provision will not be reversed during asset permanent period once it is
withdrawn. Impairment loss of financial assets available for sale can be reversed through equities.


14. Investment real estate
Investment real estate is stated at cost. During which, the cost of externally purchased properties
held-for-investment includes purchasing price, relevant taxes and surcharges and other expenses which are
directly attributable to the asset. Cost of self construction of properties held for investment is composed of
necessary expenses occurred for constructing those assets to a state expected to be available for use. Properties
held for investment by investors are stated at the value agreed in an investment contract or agreement, but those
under contract or agreement without fair value are stated at fair value.
The Company adopts cost methodology amid subsequent measurement of properties held for investment, while
depreciation and amortization is calculated using the straight-line method according to their estimated useful lives.
The basis of provision for impairment of properties held for investment is referred to the provision for impairment
of relevant fixed assets.
15. Fixed assets

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(1) Recognition of fixed assets
Fixed assets refer to the buildings, machinery and equipment, transportation vehicle and other equipments related
to operation with useful lives of more than one year and held for production of products, provision of labor, lease
or operation. A fixed asset is recognized when it is Contingent that the relevant economic benefits flow into the
enterprise and the cost of the fixed assets can be reliably measured.
(2) Basis of recognition and method of measurement of fixed assets by financing lease
The assets will be classified as fixed assets by financing lease if the Company satisfies one or more of the
following conditions:
①As stipulated in the lease agreement (or a reasonable judgment made pursuant to relevant conditions at the
commencement date of the lease), the ownership of fixed assets by financing lease can be passed to the Company
when the lease expires;
②As the Company has a option to acquire the leased fixed assets and the agreed price of purchase is far below the
fair value of leased fixed assets at the time of exercise of the option, it is certain that the Company will exercise
the option at the commencement date of the lease;
③Despite that the ownership of fixed assets is not transferable, the lease period represents 75% or more of the
useful life of leased fixed assets;
④The present value of the minimum lease payment by the Company at the commencement date of lease is equal
to 90% or more of the fair value of leased fixed assets at the commencement date of lease. The present value of
the minimum lease payment received by the lesser at the commencement date of lease is equal to 90% or more of
the fair value of leased fixed assets at the commencement date of lease;
⑤ Due to the special nature of the leased assets, those assets can be used only by the Company if without any
substantial renovation;
⑥The fixed assets by financing lease is carried at the lower of the fair value of the leased fixed assets at the
commencement date of lease and the present value of the minimum lease payment.


(3) Depreciation of fixed assets

         Classification               Depreciation time(Year)     Residual rate          Annual depreciation rate (%)

House and Building                           20-35                   5.00%                      2.71-4.75%

Machinery equipment                            10                    5.00%                        9.50%

Electronic equipment                          3-5                    5.00%                    19.00-31.67%

Transportation equipment                      4-5                    5.00%                    19.00-23.75%

Other equipment                               5-10                   5.00%                      9.5-19.00%


(4) Impairment testing of fixed assets and provision for impairment


At the end of the Reporting Period, the Company carries out a review on fixed assets. If the following conditions
exist, the Company shall value the recoverable amount of fixed assets in order to determine whether there is any

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impairment of fixed assets. For fixed assets with recoverable amount falling below the carrying amount, the
Company will make a provision for impairment loss on fixed asset equals to an amount of the difference between
the recoverable amount and the carrying amount. Provision is made based on a single item basis, and based on a
group of assets to which the assets belong to if it is hard to estimate the recoverable amount of the single assets.
The impairment provision cannot be reversed in the period of duration of the assets once it is provided.
①There is a significant decrease in the market price of fixed assets. Such decrease is beyond any decrease to the
large extent in the market price as time goes by or any expected decrease from normal use of fixed assets;
②Fixed assets are obsolete and damaged;
③There is a significant negative change to the intended use of fixed assets, such as idleness or forthcoming
idleness of the fixed assets, termination or restructuring of the operating business to which the fixed assets belong
to and disposal of fixed assets earlier than the end of its useful life, thereby resulting in negative influence on the
Company;
④There is a significant current or recent change in the economic, technological and legal environment in which
the Company operates and in the market in which fixed assets are, thereby resulting in negative influence on the
Company;
⑤There is a significant increase in the market interest rate or return on investment in other markets, posing a
potential impact on the discount rate on the calculation of the present value of the estimated future cash flows,
thereby resulting in significant decrease in recoverable amount of fixed assets;
⑥There is evidence from internal reports of the enterprise that the economic benefits of the fixed assets have been
lower or will be lower than expected, for example, the net cash flows or operating profits (or losses) of the fixed
assets are far lower (or higher) than the expected amount;
⑦Other circumstances showing an indication of impairment of fixed assets


(5) Other explanation
Nil


16. Construction in process
(1) Classification of construction in process

Construction in process will calculate base on the category while project approved and initiated. Pricing of
construction in progress: To determine construction costs based on the actual occurrence of expenditures.
Self-operated projects are measured with direct materials, direct salary and direct construction expenses; contract
projects are measured with the project contract amount payables; equipment installment projects are measured
with the value of installed equipments, installment fees and occurred expenses for trial operation of projects.
Costs of construction in progress also include borrowing expenses and exchange gains and losses which shall be
capitalized.


(2) Standard and timing of converting projects under construction into fixed assets
From the date on which the fixed assets built by the Company come into an expected usable state, the projects

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under construction are converted into fixed assets on the basis of the estimated value of project estimates or
pricing or project actual costs, etc. Depreciation is calculated from the next month. Further adjustments are made
to the difference of the original value of fixed assets after final accounting is completed upon completion of
projects; however, the original depreciation is not adjusted.
(3) Recognition standards and accrual method of impairment provision for construction in process:

The Company carries out a comprehensive inspection of projects under construction at the conclusion of each
year. Where there is an indication of impairment, the recoverable amount is estimated and impairment is
provided on the basis of the difference between the amount recoverable by a project and the carrying amount of
such project. Impairment provision is not reversed during the period of duration of the assets once it is provided.

17. Borrowing costs
(1) Recognition of capitalization of borrowing costs
Borrowing costs comprise interest occurred, amortization of discounts or premiums, ancillary costs and exchange
differences in connection with foreign currency borrowings. The borrowing costs of the Company, which incur
from the special borrowings occupied by the fixed assets that need more than one year (including one year) for
construction, development of investment properties or inventories or from general borrowings, are capitalized and
recorded in relevant assets costs; other borrowing costs are recognized as expenses and recorded in the profit or
loss in the period when they are occurred. Relevant borrowing costs start to be capitalized when all of the
following three conditions are met:
① Capital expenditure has been occurred;
② Borrowing costs have been occurred;
③Acquisition or construction necessary for the assets to come into an expected usable state has been carried out.


(2) Period of capitalization of borrowing costs
The borrowing costs in relation to acquisition or construction of fixed assets, investment properties and
inventories, incurring before the assets reach an expected usable state or saleable state, are recorded in the costs of
the assets when the above conditions of capitalization are met. When acquisition or construction of fixed assets
undergo abnormal suspension, and the suspension lasts for more than 3 months consecutively, then the
capitalization of suspension borrowing ceases and will be recognized as current expenses, until the acquisition or
construction of assets start again. When the expected usable state or saleable state is achieved, capitalization of
borrowing costs ceases, and the borrowing costs incurring subsequently are directly recorded into financial
expenses in the period when they are occurred.


(3) Capitalize cost suspension
When acquisition or construction of fixed assets undergo abnormal suspension, and the suspension lasts for more
than 3 months consecutively, then the capitalization of suspension borrowing ceases and will be recognized as
current expenses, until the acquisition or construction of assets start again. When the expected usable state or
saleable state is achieved, capitalization of borrowing costs ceases, and the borrowing costs incurring


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subsequently are directly recorded into financial expenses in the period when they are occurred.


(4) Calculation of capitalized amounts of borrowing costs
In respect of the special borrowings borrowed for acquisition, construction or production and development of the
assets qualified for capitalization, the amount of interests expenses of the special borrowings actually occurred in
the period less interest income derived from unused borrowings deposited in banks or less investment income
derived from provisional investment, are recognized.


With respect to the general borrowings occupied for acquisition, construction or production and development of
the assets qualified for capitalization, the capitalized interest amount for general borrowings is calculated and
recognized by multiplying a weighted average of the accumulated expenditure on the assets in excess of the
expenditure on the some assets of the special borrowings, by a capitalization rate for general borrowings. The
capitalization rate is determined by calculation of the weighted average interest rate of the general borrowings.


18. Biological assets
Nil


19. Oil/gas assets
Nil


20. Intangible assets
(1) Measurement of intangible assets
The intangible assets of the Company include land use rights etc.
The cost of a purchased intangible asset shall be determined by the expenditure actually occurred and other related
costs.
The cost of an intangible asset contributed by an investor shall be determined in accordance with the value
stipulated in the investment contract or agreement, except where the value stipulated in the contract or agreement
is not fair.
The intangible assets acquired through exchange of non-monetary assets, which is commercial in substance, is
carried at the fair value of the assets exchanged out; for those not commercial in substance, they are carried at the
carrying amount of the assets exchanged out.
The intangible assets acquired through debt reorganization, are recognized at the fair value.
Expenditure in the research stage of the intangible assets with independent research and development should be
included in the profit or loss for the current period in which they are occurred; expenditure in the development
stage should be recognized as intangible assets (patent technologies and non-patent technologies) when all of the
following conditions are met:
①It is technically feasible that the intangible assets are completed for the purpose of their uses or sales;
②The Company has an intention to complete the intangible assets for their uses or the sale;



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③Ways of creating economic benefits by intangible assets include proof of existing market of the products
manufactured by use of intangible assets or the existing market of intangible assets and the proof of the use if the
intangible assets are only for the Company’s internal use;
④The Company has sufficient technical and financial resources and other supporting resources to complete the
research and development of such intangible assets and are capable of using or selling such intangible assets;
⑤Expenditure occurred in the development stage of such intangible assets can be accurately calculated;
⑥The cycle of the product produced with the intangible assets is above one year.

Amortization methods and time limit for intangible assets: Land use right of the company had average
amortization by the transfer years from the beginning date of transfer (date of getting land use light).

(2) Service life estimation for intangible assets with limited service life
            Item                Service life expected                               Basis
(3) Determination basis for intangible assets with uncertain service life
(4) Withdrawal of impairment of intangible assets
The Company tests impairment of the intangible assets with indefinite benefit years such as goodwill annually and
estimates their recoverable amounts and impairment of the intangible asset is provided at the difference between
the estimated recoverable amount and the carrying amount of such intangible assets.
A year-end review is conducted to other intangible assets. When there is an indication of impairment, the
recoverable amount is estimated and impairment of the intangible asset is provided at the difference between the
estimated recoverable amount and the carrying amount of such intangible assets. The impairment provision is not
reversed during the duration of the assets once it is provided.
①The intangible assets have been replaced by other new technology so that there is a material adverse effect on
their capacity to generate economic benefits for the Company;
②The market value has fallen substantially in the current period and is not expected to recover in the remaining
amortization period;
③ The intangible assets have exceeded the term protected by laws but some of them can still be used;
④Other circumstances sufficient to prove that impairment has been made actually


 (5) Divide the specific standards research stage and development stage


(6) Calculation of expenditure for internal R&D projects
21. Amortization of long-term prepaid expenses
Long-term expenses to be amortized of the Company the expenses that are already charged and with the beneficial
term of more than one year are evenly amortized over the beneficial term. For the long-term deferred expense
items cannot benefit the subsequent accounting periods, the amortized value of such items is all recorded in the
profit or loss during recognition.




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22. Assets transfer with repurchase condition attached


Nil


23. Estimated liability
An obligation related to a contingency, such as guarantees provided to outsiders, pending litigations or arbitrations,
product warranties, redundancy plans, onerous contracts, reconstructing, expected disposal of fixed assets, etc.
shall be recognized as an estimated liability when all of the following conditions are satisfied:


(1) Recognition standards for estimated liability
①the obligation is a present obligation of the Company;
② It is Contingent that an outflow of economic benefits will be required to settle the obligation;
③the amount of the obligation can be measured reliably.
(2) Measurement method for estimated liability
Measure on the basis of the best estimates of the expenses necessary for paying off the contingencies
On the balance sheet date, the carrying amount of estimated liabilities is reviewed. If there is obvious evidence
that the carrying amount cannot actually reflect the current best estimates, then the carrying amount is adjusted
according to the current best estimates.


24. Share-based payment and equity instrument
(1) Category of share-based payment
Nil


(2) Recognition method for fair-value of equity instrument
Nil


(3) Basis of best estimation for vesting equity instrument
Nil


(4) Relevant accounting treatment for implementation, amendment and termination of shares payment
plan
Nil


25. Shares of the Company repurchased
Nil


26. Revenue
(1) Detail judgment standards for recognition of selling goods revenue
①the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;


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②the Company retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;
③the amount of revenue can be measured reliably;
④ It is Contingent that the associated economic benefits will flow into the Company;

⑤related cost that occurred or to be occurred can be measured reliably.

Time point of revenue realization for domestic sales revenue:   The Company delivers goods according to orders.
On the accounting date as agreed with purchaser, the Company checks the goods that the purchaser has received
and inspected during the period from previous accounting date to this accounting date. After such check between
both parties, relevant risk or remuneration shall be transferred to the purchaser. The Company issues invoice to
purchaser according to the variety, quantity and amount as recognized in the aforesaid check, and realizes sales
revenue on the accounting date. The Company realizes sales revenue in respect of export overseas sales on the
following time point: upon examination by the custom, the Company realizes sales revenue according to the
export date as set out on the custom clearance paper.


(2) Recognition of revenue of assets using right abalienation
Revenue from use by others of enterprise assets shall be recognized only when the associated economic benefit
can flow into the Company, and the amount of revenue can be measured reliably.


(3) Basis of recognition of labor revenue providing
Revenue from the rendering of services shall be recognized only when all of the following conditions are satisfied:
the amount of revenue and costs occurred or to be occurred for the transaction involving the rendering of services
can be measured reliably; the associated economic benefits can flow into the Company; the stage of completion of
the transaction can be measured reliably.


(4) Recognition basis and method of construction progress completion while recognize revenue from labor
service providing and from construction contract by percentage of completion method


27. Government Subsidies
(1) Category
The government subsidy is divided into government subsidy related to profits and government subsidy related to
assets.


(2) Accounting policy

The public subsidy obtained by the company, used for acquisition or construction, or formed as the long-term
assets in other ways belongs to the government grants related to the assets; except for the government grants
related to the assets, others are the income-related government grants.
The government grants related to the assets are recognized as the deferred income, and equally distributed in the
service life of the related asset, and reckoned in the current profit and loss

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The government grants related to the income are managed respectively as following:
1) Those used for compensating for the related expenses or losses of the company in the subsequent period are
recognized as the deferred income and reckoned in the current profit and loss during the confirmation for the
related expenses.
2) Those used for compensating for the incurred related expenses or losses of the company are reckoned directly in
the current profit and loss.
The government grants are recognized and measured in accordance with the actual amount received. Only when
there is unambiguous evidence to declare that this subsidy is appropriated according to a fixed quota standard,
and there is conclusive evidence to indicate that it can meet the related conditions specified by the financial
support policies and the financial support fund can be received, the government grants can be recognized and
measured by the amount receivable.

28. Deferred income tax assets and deferred income tax liabilities
(1) Basis of affirming the deferred income tax assets

Deferred income tax assets or deferred income tax liabilities are realized based on the difference between the
carrying values of assets and liabilities and their taxation bases at the tax rates applicable in the periods when the
Company recovers such assets or settles such liabilities.


Deferred income tax assets are realized to the extent that it is probable to obtain such taxable income which is
used to set off the deductible temporary difference. As at the balance sheet date, if there is obvious evidence
showing that it is probable to obtain sufficient taxable income to set off the deductible temporary difference in
future periods, deferred income tax assets not realized in previous accounting periods shall be realized.


(2) Basis of affirming the deferred income tax liabilities

On balance sheet date, re-review shall be made in respect of the carrying value of deferred income tax assets. If it
is impossible to obtain sufficient taxable income to set off the benefits of deferred income tax assets in future
periods, then the carrying value of deferred income tax assets shall be reduced accordingly. If it is probable to
obtain sufficient taxable income, then the amount reduced shall be switched back.


29. Operation leasing, financing leasing
(1) Accounting treatment of operation leasing
Operating lease refers to other lease other than finance lease. The rental expenses of the operating leased assets are
recognized as relevant assets costs or expenses over the lease term on a straight-line basis.


(2) Accounting treatment of financing leasing
Finance lease refers to a lease that has transferred in substance all the risks and rewards related to the ownership
of an asset, no matter whether the ownership of it has been transferred eventually.


The finance lease assets are carried at the lower of the fair value of the leased assets and the present value of the
minimum lease payments on the lease beginning date, and the minimum lease payments are recorded in long-term
payables, with the difference as unrecognized finance expenses. The initial direct costs arising from finance lease

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of the Company are recorded in the value of the leased assets. Depreciation and impairment are provided for the
finance lease assets according to the policies of the Company.


Where there is reasonable assurance that the ownership of the leased assets can be obtained when the lease term
expires, depreciation is provided for the leased assets over the estimated useful life. Otherwise, depreciation is
provided for the leased assets at the lower of the lease term and the estimated useful life of the leased assets.


The Company allocates the unrecognized financing expenses over the lease term by using the effective interest
rate method and in accordance with the principles of borrowing costs.


On the balance sheet date, the Company lists the difference of the long-term payables related to finance lease less
unrecognized financing expenses as finance lease payable and non-current liabilities due within one year
respectively.


(3) Accounting treatment of sale and leaseback


30. Assets held for sales
(1) Recognition of assets held for sales
Nil


(2) Accounting treatment of assets held for sales
Nil


31. Assets securitization
Nil


32. Hedge accounting
Nil


33. Changes of major accounting policies and accounting estimation
Whether there have changes of major accounting policies and accounting estimation in report period or not
□ Yes   √ No

Accounting policies and accounting estimation has no changed in reporting period


(1) Changes in accounting policies
Whether have changes in accounting policies in report period
□ Yes √ No




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(2) Changes in accounting estimates
Whether have changes in accounting estimates in report period
□ Yes √ No
34. Error correction of previous accounting
Whether has error correction of previous accounting occurred in this period
□ Yes √ No
No error correction of previous been found


(1) Retrospective Restatement
Is there has errors of previous accounting adopt retrospective restatement in this period
□ Yes √ No


(2) Prospective Application
Is there has errors of previous accounting adopt retrospective restatement in this period
□ Yes √ No


35. Other major accounting policy, accounting estimation and preparation method for financial statement
(1) Goodwill
In the business combination not under the same control, the difference of the merger cost in excess of the fair
value of net identifiable assets of the acquired party is recognized as the goodwill.


Goodwill listed alone in financial statement, while conducting impairment testing, amortized book value of the
goodwill to assets group or assets combination benefit from synergy effect of expected enterprise combination. If
the recoverable amount of assets group or assets combination, that with goodwill amortized, lower its book value,
than recognized as impairment losses correspondingly. Impairment losses should deducting book value of
goodwill, amortized to assets group or assets combination, than deducting other book value of vary assets by
proportion in line with ratio of book value of vary assets other than goodwill in such assets group or assets
combination.
(2) Employees’ remuneration
Employees’ remuneration includes: employees’ salaries, bonus, allowance and subsidies; welfare provision; social
insurance such as pension insurance, unemployment insurance and work injury insurance etc.; housing reserve
fund, labor union expenditures and staff education expenditures; benefits not in monetary value; compensation
paid for the termination of employment contracts with employees; relevant expenditures relating to the provision
of other services by employees.


In the accounting period in which employees provide service to the Company, payable employees’ remuneration is
recognized as liabilities. Other than the compensation for termination of the labor relationship with employees, the


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employees’ remuneration is recorded in fixed assets costs, intangible assets costs, product costs or labor costs
respectively according to the beneficiaries of the services provided by employees. The employees’ remuneration
other than the above is directly recorded in the profit or loss.


Prior to the expiry of the labor contracts of employees, the compensation for termination of the labor relationship
with employees or encouraging employees to accept to be laid off is recognized as estimated liabilities and
recorded in the profit or loss.
(3) Accounting for income tax
The Company applies the balance sheet liability method for accounting of income tax. Current income tax and
deferred income tax is recorded in the profit or loss as income tax expenses or gains, but the income tax arising
from the following conditions is excluded:
1) Business combination;
2) The transaction events directly recognized in the owner’s equity.
(V) Taxation
1. Major taxes and tax rates
         Tax                      Basis                                                  Tax rate

                                                    Tax rate for sale of goods is 17%; rate for exported commodities is stipulated by
                      Sale of goods, leasing of
                                                    the state with declaration of export tax rebate, rate of tax may be ―exempted,
VAT                   tangible movable property
                                                    credited and refunded‖; tax rate for leasing of tangible movable property is 17%
                      and modern service industry
                                                    and 6% for modern service industry
Operation tax         Revenue from lease            5%
City maintaining &
                      Turnover tax payable          7%
construction tax
Corporation income
                      Taxable income                15% for the parent company
tax

Educational surtax    Turnover tax payable          5%
The income tax rates applicable to each Branch Company or plant
The Company and its subsidiaries Weifu Jinning, Weifu Diesel System, Weifu Leader, Ningbo Weifu Tianli Supercharging
Technique Co., Ltd. (hereinafter referred to as Weifu Tianli) and Wuxi Weifu-Autocam Fine Machinery Co. Ltd. (hereinafter
referred to as Weifu-Autocam) are all high-tech enterprises, and enjoy a preferential tax rate of 15% according to relevant state
regulations on income taxation.

The income tax of Weifu Mashan Pump Glib Co., Ltd. (hereinafter referred to as ―Weifu Mashan ‖), Wuxi Weifu Chang’an Co.,
Ltd.(hereinafter referred to as ―Weifu Chang’an‖), Wuxi Weifu International Trade Co. Ltd.(hereinafter referred to as ―Weifu
International Trade‖), Jiangsu Weifu Nano Technology Co., Ltd. (hereinafter referred to as ―Weifu Nano‖), Wuxi Weifu ITM
Supercharging Technique Co., Ltd.(hereinafter referred to as ―Weifu ITM ‖), Wuxi Weifu Schmidt Power System Spare Parts Co.,
Ltd.(hereinafter referred to as ―Weifu Schmidt ‖), Chaoyang Weifu Jialin Machinery Manufacture Co., Ltd.(hereinafter referred to as
―Weifu Jialin ‖), Kunming Xitong Machinery Co., Ltd.(hereinafter referred to as ―Kunming Xitong ‖) and Anhui Weifu Tianshi
Machinery Co., Ltd. (hereinafter referred to as ―Weifu Tianshi‖) is 25%.




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2. Tax preference and approvals
                                  Certification Serial of Hi-Tech
      No.           Enterprise                                       Issuring or (receiving) dated   Expiration
                                            Enterprise

      1     Parent company              GF201132000279                         2011-9-9                3-year

      2     Nanjing Jinning             GF201132000048                         2011-9-9                3-year

      3     Weifu Diesel System         GF201132000112                         2011-9-9                3-year

      4     Weifu Leader                GF201132000006                         2011-9-9                3-year

      5     Weifu Tianli                GF201132000022                         2011-9-6                3-year

      6     Weifu-Autocam               GF201132001080                        2011-11-8                3-year


3. Other explanation
Nil




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VI. Enterprise consolidation and consolidated financial statements
1. Subsidiary
(1) Subsidiaries acquired by means of establishment or investment
                                                                                                                                                                                   In RMB
                                                                                                                                                                               The balance
                                                                                                                                                                                 after the
                                                                                                                                                                                  parent
                                                                                                                                                                               company’s
                                                                                                                                                                             owner’s equity
                                                                                                                                                                              writing down
                                                                                                                                                                              the excess of
                                                                                                                                           State                 Amount in
                                                                                                                                                                               the current
                                                                                                           Balance of                      ment                   minority
                                                                                                                                                                                   loss
                                                                                                               other                         s                    interest
                                                                                                                                                                             undertaken by
                          Regist                                                            Investment        items                Voting com      Minority’s    used for
                                 Business                                                                              Holding                                                   minority
  Name        Type        ration          Registered capital         Business scope       amount actual at materially               right  bine                    writing
                                  nature                                                                              proportion                     equity                   shareholders
                          place                                                             period-end       forming             proportion d                      down
                                                                                                                                                                                  of the
                                                                                                                net                         (Y/                   minority
                                                                                                                                                                                subsidiary
                                                                                                           investment                       N)                    gain and
                                                                                                                                                                             over the share
                                                                                                                to                                                  loss
                                                                                                                                                                               enjoyed by
                                                                                                           subsidiary                                                            minority
                                                                                                                                                                              shareholders
                                                                                                                                                                             in the original
                                                                                                                                                                             owner’s equity
                                                                                                                                                                                  of the
                                                                                                                                                                                subsidiary
                                                               Accessories and matching
Weifu     Wholly-own             Manufac
                          Wuxi             45,000,049.36       parts of internal            48,693,380.51              100.00%    100.00% Y
Mashan    ed subsidiary          turing
                                                               combustion engine

                                                               Accessories and matching
Weifu     Wholly-own             Manufac
                          Wuxi             60,000,000.00       parts of internal            70,902,037.30              100.00%    100.00% Y
Chang’an ed subsidiary          turing
                                                               combustion engine

Weifu     Wholly-own             Manufac                       Accessories and matching
                          Wuxi             300,000,000.00                                  260,187,500.00              100.00%    100.00% Y
Diesel    ed subsidiary          turing                        parts of internal


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System                                                              combustion engine

                                                                    Accessories and matching
Weifu      Controlling           Manufac
                         Wuxi                48,000,000.00          parts of internal          31,680,000.00                   66.00%      66.00% Y          10,531,028.33
Schmidt    subsidiary            turing
                                                                    combustion engine

                                                                    Accessories and matching
Weifu      Controlling   Quanji Manufac
                                             10,000,000.00          parts of internal           5,200,000.00                   52.00%      52.00% Y           2,348,644.71
Tianshi    subsidiary    ao      turing
                                                                    combustion engine

Other explanation on subsidiary obtained by establishment or investment:


(2) Subsidiaries acquired by business combination under the common control

                                                                                                                                                                                               In RMB

                                                                                                                                                                                            Balance
                                                                                                                                                                                          between the
                                                                                                                                                                               Amou
                                                                                                                                                                                         owners’ equity
                                                                                                                                                                                nt in
                                                                                                               Balance of                                                                   in parent
                                                                                                                                                                               minori
                                                                                                                 other                                                                   offsetting the
                                                                                                                                                                                 ty
                                                                                                                 items                               Statem                              current losses
                                                                                                                                                                               interes
                                                                                                                 which                               ents                                attributable to
                                                                                                 Actual                                                                           t
Name of                                                                                                         actually                                                                    minority
             Type of     Register Business                                                     investment                     Holding     Voting     combi       Minority’s   availa
subsidia                                       Registered capital         Business scope                       constitutes                                                                shareholders
            subsidiary   ed place   nature                                                     amount at                     proportion proportion                 equity      ble to
   ry                                                                                                             net                                ned                                 of subsidiaries
                                                                                               period-end                                                                      offset
                                                                                                               investment                                                                over the share
                                                                                                                                                     (Y/N)                     minori
                                                                                                                   in                                                                     of beginning
                                                                                                                                                                                 ty
                                                                                                               subsidiarie                                                               owner’s equity
                                                                                                                                                                               gains
                                                                                                                    s                                                                       in such
                                                                                                                                                                                and
                                                                                                                                                                                         subsidiaries by
                                                                                                                                                                               losses
                                                                                                                                                                                          the minority
                                                                                                                                                                                          shareholders

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                                                                   Accessories and matching
Weifu    Controlling                Manufac
                         Nanjing              346,286,825.80       parts of internal          178,639,593.52                   80.00%      80.00% Y           142,892,272.51
Jinning subsidiary                  turing
                                                                   combustion engine

Weifu    Controlling                Manufac
                         Wuxi                 502,596,300.00       Cleaner, muffler           460,113,855.00                   94.81%      94.81% Y            52,527,364.73
Leader   subsidiary                 turing

Weifu
Internati Controlling
                         Wuxi       Trading 30,000,000.00          International trade         30,999,996.22                  100.00%     100.00% Y
onal     subsidiary
Trade

Other explanation on subsidiary obtained by enterprise merger under same control:


(3) Subsidiaries acquired by business combination not under the common control

                                                                                                                                                                                              In RMB

                                                                                                                                                                               Amou        Balance
                                                                                                                                                                                nt in    between the
                                                                                                               Balance of
                                                                                                                                                                               minori owners’ equity
                                                                                                                 other
                                                                                                                                                                                 ty        in parent
                                                                                                                 items                               Statem
                                                                                                                                                                               interes offsetting the
                                                                                                                 which                               ents
                                                                                                 Actual                                                                           t     current losses
                                                                                                                actually
 Name of      Type of    Register Business                                                     investment                     Holding     Voting     combi     Minority’s     availa attributable to
                                              Registered capital         Business scope                        constitutes
subsidiary subsidiary    ed place    nature                                                    amount at                     proportion proportion               equity        ble to      minority
                                                                                                                  net                                ned
                                                                                               period-end                                                                      offset    shareholders
                                                                                                               investment
                                                                                                                                                     (Y/N)                     minori of subsidiaries
                                                                                                                   in
                                                                                                                                                                                 ty     over the share
                                                                                                               subsidiarie
                                                                                                                                                                               gains     of beginning
                                                                                                                    s
                                                                                                                                                                                and     owner’s equity
                                                                                                                                                                               losses      in such
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                                                                                                                                                                                    subsidiaries by
                                                                                                                                                                                     the minority
                                                                                                                                                                                     shareholders



            Wholly-own                                            Accessories and matching
Weifu                               Manufac
            ed            Wuxi                160,000,000.00      parts of internal            167,000,000.00                 100.00%       100.00% Y
ITM                                 turing
            subsidiary                                            combustion engine

                                                                  Accessories and matching
Weifu       Controlling             Manufac
                          Ningbo              104,690,000.00      parts of internal             90,229,100.00                  51.00%       51.00% Y         97,009,225.54
Tianli      subsidiary              turing
                                                                  combustion engine

                                                                  Accessories and matching
Kunming Controlling Kunmin Manufac
                                              4,000,000.00        parts of internal               5,471,793.17                 70.00%       70.00% Y          2,628,516.07
Xitong      subsidiary    g         turing
                                                                  combustion engine

Weifu-Aut Controlling               Manufac
                          Wuxi                US$ 15,100,000      Auto parts                    69,519,068.71                  51.00%       51.00% Y         92,620,285.50
ocam        subsidiary              turing

Other explanation on subsidiary obtained by enterprise merger not under the same control:

2. Special purposes entity or operation entity where controlling right is formed under entrusted operation or leasing
                                                                                                                                                                                             In RMB

              Name                       Main business contact with the Company                    Balance of main assets and liability at period-end recognized in consolidated statement
Other explanation for special purposes entity or operation entity where controlling right is formed under entrusted operation or leasing:




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3. Explanation for changes in consolidation scope
Explanation for changes in consolidation scope:

                           Name                           Consolidate in the Year (Y/N)           Consolidate last year (Y/N)
        Weifu Mashan                                                     Y                                    Y
        Weifu Chang’an                                                  Y                                    Y
        Weifu Nano[note 1]                                               Y                                    Y
        Weifu Diesel System                                              Y                                    Y
        Weifu Jinning                                                    Y                                    Y
        Weifu Leader                                                     Y                                    Y
        Weifu International Trade                                        Y                                    Y
        Weifu Schmidt                                                    Y                                    Y
        Weifu ITM                                                        Y                                    Y
        Weifu Tianli                                                     Y                                    Y
        Weifu Jialin[note 2]                                             Y                                    Y
        Weifu Tianshi                                                    Y                                    Y
        Kunming Xitong                                                   Y                                    Y
        Weifu-Autocam                                                    Y                                    Y

√ Applicable □ Not applicable
Comparing with last year, unit increased in this year (period), reasons are:


Comparing with last year, two units decreased in this year (period), reasons are:

[note 1]Weifu Nano: cancelled in Feburary 2014, the profit statement and cash flow statement under the name of Weifu Nano from
period-begin to date of cancelled were included in consolidation statement range.
[note 2]Weifu Jialin: cancelled in April 2014, the profit statement and cash flow statement under the name of Weifu Jialin from
period-begin to date of cancelled were included in consolidation statement range.


4. Entities newly included in consolidate scope during the reporting period and entities ceasing to be
included in consolidate scope during the reporting period
Subsidiaries, special purposes entities, operation entity where controlling right is formed under entrusted operation or leasing newly
included in consolidation scope during the period

                                                                                                                                  In RMB

                          Name                                  Net assets as at period-end               Net profit for the period

Subsidiaries, special purposes entities, operation entity where controlling right is formed under entrusted operation or leasing
ceasing to be excluded in consolidation scope during the period
                                                                                                                                  In RMB

                                                                                                      Net profit from the year-begin to
                          Name                               Net assets as at the disposal date
                                                                                                              the disposal date

Weifu Nano[note 1]                                                                  27,533,945.85

Weifu Jialin[note 2]                                                                13,641,679.28                            146,967.24



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Other explanation on entities newly included in consolidation scope and entities ceasing to be included in consolidation scope:
 [note 1]Weifu Nano: cancelled in Feburary 2014, the profit statement and cash flow statement under the name of Weifu Nano from
period-begin to date of cancelled were included in consolidation statement range.
[note 2]Weifu Jialin: cancelled in April 2014, the profit statement and cash flow statement under the name of Weifu Jialin from
period-begin to date of cancelled were included in consolidation statement range.



5. Business combination under the common control during the reporting period
                                                                                                                                 In RMB

                                                                Consolidated income for      Consolidated net    Consolidated operating
               Basis for determination of Actual controller
 Party to be                                                        the period from the       profit from this     activities cash flow
                 business combination      under the common
consolidated                                                         period-begin to             period to         from this period to
               under the common control            control
                                                                    consolidation date      consolidation date      consolidation date

Other explanation for business combination under the common control:

6. Business combination not under the common control during the reporting period
                                                                                                                                 In RMB

       Party to be consolidated                    Amount of goodwill                        Calculation method for goodwill

Other explanation for business combination not under the common control:
Nil
Achieved enterprise combination by multiple trading on step-by-step basis and obtained controlling rights in the Period
□ Applicable √ Not applicable

7. Loss of subsidiaries due to disposal of equity interests without controlling rights during the
reporting period
                       Subsidiary                                    Disposal date             Recognition method for gains and losses

Other explanation for loss of subsidiaries due to disposal of equity interests without controlling rights
Dispose investment for subsidiary by multiple trading on step-by-step basis and losing controlling rights lasting to the Period
□ Applicable √ Not applicable

8. Counter purchase occurred during the reporting period
                      Basis for determination of     Determination method            Calculation method for goodwill recognized in
      Backdoor
                          counter purchase            for consolidated costs     consolidation or recorded in current gains and losses

Other explanation for counter purchase:
9. Absorption consolidation occurred during the reporting period
                                                                                                                                 In RMB

        Types of absorption consolidation                    Major assets consolidated                Major liabilities consolidated

Absorption consolidation under common control                Item               Amount                  Item               Amount

  Absorption consolidation not under common
                                                             Item               Amount                  Item               Amount
                      control

Other explanation for absorption consolidation:
10. Translation exchange rates for items in major statements of overseas operating entities



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VII. Notes to major items in consolidated financial statements
1. Monetary capital
                                                                                                                                       In RMB

                                                  Closing amount                                             Opening amount
           Item                  Amount in         Converting                              Amount in         Converting
                                                                   Amount in RMB                                             Amount in RMB
                               foreign currency       rate                              foreign currency        rate

Cash:                                 --               --                 708,108.43            --               --                1,127,043.52

RMB                                   --               --                 708,108.43            --               --                1,127,043.52

Bank savings:                         --               --           2,177,006,622.64            --               --           2,287,612,576.92

RMB                                   --               --           2,176,968,183.42            --               --           2,287,612,576.92

EUR                                    3,622.72 8.3946                      30,411.29

USD                                    1,304.76 6.1528                       8,027.93

Other monetary fund:                  --               --             128,590,415.30            --               --             158,816,051.96

RMB                                   --               --             128,590,415.30            --               --             158,816,051.96

Total                                 --               --           2,306,305,146.37            --               --           2,447,555,672.40

Separate explanation is required for accounts with restricted application purposes, deposited overseas and of potential recovery risks
arising from pledge, mortgage or frozen:

                Item                                                       2014-06-30                                  2013-12-31
Bank acceptance bill, L/C and other collateral                                     128,590,415.30                             158,816,051.96
2. Transactional financial assets
(1) Transactional financial assets
                                                                                                                                       In RMB

                              Item                                     Fair value as at period-end            Fair value as at period-begin


(2) Realization of restricted transactional financial assets

                                                                                                                                       In RMB

                                                             Other significant restrictions on restriction
                       Item                                                                                           Amount as at period-end
                                                                  conditions for sale or realization


(3) Explanation for hedge instruments and related hedge transactions

3. Notes receivables

(1) Classification of notes receivables



                                                                                                                                       In RMB




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                          Types                                     Closing amount                             Opening amount

Bank acceptance bill                                                           1,043,900,767.02                         1,016,340,233.40

Commercial acceptance bill                                                        61,250,000.00                               73,940,000.00

Total                                                                          1,105,150,767.02                         1,090,280,233.40


(2) Notes receivable already pledged by the Company at the end of the period

                                                                                                                                    In RMB

                          Issuer                           Issue date        Expiring date       Amount                     Notes

Weichai Power Co., Ltd                                    2014-05-27 2014-11-27               114,372,082.69 Total of multiple notes

Fengcheng Tianxiang Mining Co., Ltd.                      2014-01-24 2014-07-24                10,000,000.00

Handan Pangda Jiefang Auto Sale Service Co., Ltd.         2014-03-04 2014-09-04                10,000,000.00

Anhui Runda Auto Trading Co., Ltd.                        2014-01-24 2014-07-24                 6,000,000.00

Total                                                          --                 --          140,372,082.69                 --

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

          Issuer                   Issue date              Expiring date                       Amount                       Notes

Explanation:
Un-matured notes endorsed to others by the Company
                                                                                                                                    In RMB

                       Issuer                    Issue date     Expiring date            Amount                      Notes

Zhejiang Yuanjing Auto Parts Co., Ltd.          2014-04-30 2014-11-15                   59,653,868.00 Total of multiple notes

Dongfeng Well-off Automobile Co., Ltd.          2014-05-22 2014-11-22                   48,600,000.00 Total of multiple notes

Anhui Jianghuai Automobile Co., Ltd.            2014-05-13 2014-11-13                   47,400,000.00 Total of multiple notes

Mianyang Power Xinchen Co., Ltd.                2014-05-27 2014-11-27                   29,842,400.00 Total of multiple notes

Dongfeng Chaoyang Chaochai Engine Co., Ltd. 2014-05-22 2014-11-22                       17,000,000.00 Total of multiple notes

Total                                                --                 --             202,496,268.00                  --

Explanation:


Explanation for commercial acceptance notes discounted or pledged:
Among the note receivable in period-end, RMB 140,372,100 bank acceptance bill was pledged for issuing of note payable


4. Dividend receivables
                                                                                                                                    In RMB




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                                                                                                                           Depreciation for
                                                         Increase in   Decrease in this Closing            Reasons of
                Item               Opening amount                                                                          relevant account
                                                         this period        period            amount       unrevoked
                                                                                                                                 or not

Dividend receivables aging
                                     22,937,046.01                       22,937,046.01
within 1 year

Including:                               --                  --                   --             --              --                --

Bosch Diesel System                  22,937,046.01                       22,937,046.01                                     N

Including:                               --                  --                   --             --              --                --

Total                                22,937,046.01                       22,937,046.01                           --                --

Explanation:

5. Interests receivables
(1) Interests receivables
                                                                                                                                    In RMB

          Item                  Opening amount           Increase in this period       Decrease in this period         Closing amount

Interest of bank savings             51,438,634.58                 6,271,455.47                 51,673,333.32                   6,036,756.73

Total                                51,438,634.58                 6,271,455.47                 51,673,333.32                   6,036,756.73


(2)Overdue interests

                                                                                                                                    In RMB

                Loan provider                              Times overdue (days)                              Overdue interests


(3)Explanation for interests’ receivables

6. Account receivables

(1) Classified by categories

                                                                                                                                    In RMB

                                          Closing amount                                                 Opening amount

                                 Book balance               Bad debt reserve                Book balance                Bad debt reserve
        Types
                                              Proporti                   Propor                          Proporti                  Proportio
                                Amount                      Amount                        Amount                       Amount
                                                on                         tion                             on                            n

Account receivable
with single significant
amount and                                                                                1,073,545.39     0.09%      1,073,545.39 100.00%
withdrawal bad debt
provision separately

Account receivable of bad debt provision withdrawal by combination



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Withdrawal bad debt
provision by age          1,751,184,522.13 99.86% 12,497,288.91 0.53% 1,141,290,547.86 99.75%                        8,455,081.77         0.74%
group

Subtotal of group         1,751,184,522.13 99.86% 12,497,288.91 0.53% 1,141,290,547.86 99.75%                        8,455,081.77         0.74%

Accounts with single
significant amount
                                                                          100.00
and bad debts                 2,463,434.41       0.14%     2,463,434.41                 1,857,615.66      0.16%      1,857,615.66 100.00%
                                                                                 %
provision accrued
individually

Total                     1,753,647,956.54       --      14,960,723.32      --       1,144,221,708.91     --        11,386,242.82         --

Explanation for category of account receivables:
Other accounts receivable with amount in single item above RMB 1 million indicated other accounts receivable with significant
amount in single item from which provision for bad debt was still drawn based on account age analysis method, as no objective evi


Account receivable with single significant amount and withdrawal bad debt provision separately at period end
□ Applicable √ Not applicable
Account receivable provided for bad debt reserve under aging analysis method in the groups:
√ Applicable □ Not applicable
                                                                                                                                         In RMB

                                           Closing amount                                               Opening amount

         Age                      Book balance                                                Book balance
                                                              Bad debt reserve                                            Bad debt reserve
                            Amount           Proportion                                    Amount          Proportion

within 1 year

Including:                        --              --                 --                       --               --                   --

Within 6 months          1,693,296,496.38        96.69%                                1,100,786,007.10        96.45%

6 months to 1 year          41,252,332.38          2.36%            4,125,233.24          28,212,207.20        2.47%          2,821,220.72

Subtotal of within
                         1,734,548,828.76        99.05%             4,125,233.24       1,128,998,214.30        98.92%         2,821,220.72
1 year

1-2 years                    7,170,398.63          0.41%            1,434,079.72           5,575,203.62        0.49%          1,115,040.72

2-3 years                    4,212,197.98          0.24%            1,684,879.19           3,663,849.35        0.32%          1,465,539.74

Over 3 years                 5,253,096.76          0.30%            5,253,096.76           3,053,280.59        0.27%          3,053,280.59

Total                    1,751,184,522.13         --               12,497,288.91       1,141,290,547.86        --             8,455,081.77

In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable
□ Applicable √ Not applicable
Accounts with single significant amount and bad debts provision accrued individually at end of period
√ Applicable □ Not applicable


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                                                                                                                                         In RMB

                                                                                          Provision
        Contents of account receivables               Book balance Bad debt reserve                               Reason for provision
                                                                                          proportion

Mianyang Power Xinchen Co., Ltd.                        919,344.77         919,344.77       100.00% The account was too old to collect

Changchai Wanzhou Diesel Co., ltd                       837,472.95         837,472.95       100.00% The account was too old to collect

Changzhou Mengfa Fuel Injector Co., Ltd.                703,111.39         703,111.39       100.00% The account was too old to collect

Other clients                                              3,505.30          3,505.30       100.00% The account was too old to collect

Total                                                  2,463,434.41      2,463,434.41         --                           --


(2) Reversal or recovery of account receivables during the reporting period

                                                                                                                                         In RMB

                                                                                    Accumulated provision of bad
   Contents of account         Reason for reversal Basis for determination of                                           Amounts reversed or
                                                                                    debt reserve before reversal or
        receivables                 of recovery       original bad debt reserve                                                 recovered
                                                                                               recovery

Provision for bad debt reserve for account receivable with single significant or minor amount but tested for impairment separately
as at period-end:
                                                                                                                                         In RMB

     Contents of account receivables                  Book balance            Bad debt amount           Provision proportion (%)      Reasons

Explanation for account receivable with single minor amount while the risks of the group categorized with similar risk
characteristics are relative significant:


(3) Account receivables actually written-off during the reporting period

                                                                                                                                         In RMB

Name of the     Nature of account           Time of     Amount written        &