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苏威孚B(200581)公告正文

苏威孚B:2014年年度报告(英文版)

公告日期:2015-04-23

                     无锡威孚高科技集团股份有限公司 2014 年年度报告全文Weifu High-Technology Group Co., Ltd.
        ANNUAL REPORT 2014
              April 2015
                                                        无锡威孚高科技集团股份有限公司 2014 年年度报告全文
          Section I. Important Notice, Contents and ParaphraseBoard of Directors, Supervisory Committee, all directors, supervisors and seniorexecutives of Weifu High-Technology Group Co., Ltd. (hereinafter referred to asthe Company) hereby confirm that there are no any fictitious statements,misleading statements, or important omissions carried in this report, and shalltake all responsibilities, individual and/or joint, for the reality, accuracy andcompletion of the whole contents.Other directors attended the board meeting on auditing the report except for thefollowing directors
    Name of absent director   Position of absent director         Reason for absence          Entrusted
    Chen Yudong                   Director                On a business trip          Rudolf MaierThe profit distribution plan that deliberated and approved by the Board is:based on total stock issue of 1,020,200,992, distributed 4.00 Yuan (tax included)bonus in cash for every 10-share hold by all shareholders, 00 shares bonus issued(tax included) and no capitalizing of common reserves carried out.Chen Xuejun, Principal of the Company, Ou Jianbin, person in charger ofaccounting works and Ou Jianbin, person in charge of accounting organ(accounting principal) hereby confirm that the Financial Report of 2014 AnnualReport is authentic, accurate and complete.Concerning the forward-looking statements with future planning involved in theReport, they do not constitute a substantial commitment for investors. Investorsshould be cautious with investment risks.
                                                  无锡威孚高科技集团股份有限公司 2014 年年度报告全文
                                       ContentsSection I. Important Notice,Contents and paraphrase …………………………………………2Section II. Company Profile ……………………………………………………………………… 6Section III. Accounting data and summary of finnaical indexes ………………………………8
    Section IV. Report of the Board of Directors   …………………………………………………10Section V.Important Events …………………………………………………………………….. 34
    Section VI. Changes in Shares    and particular about shareholders ……………………… 41Section VII Preferred Stock …………………………………………………………………….. 47Section VIII Particulars about Directors、Supervisors,Senior Executives and Employees 48Section IX Corporate Governance………………………………………………………………54Section X Internal Control ……………………………………………………………………… 59Section XI Financial Report………………………………………………………………………61Section XII Documents available for reference ………………………………………………165
                                                                  无锡威孚高科技集团股份有限公司 2014 年年度报告全文
                                                 Paraphrase
                       Items                   Refers to                                Contents
    Company, The Company, Weifu High-technology    Refers to   Weifu High-Technology Group Co., Ltd.
    Weifu Group                                    Refers to   Wuxi Weifu Group Co., Ltd.
    Industry Group                                 Refers to   Wuxi Industry Development Group Co., Ltd.
    Robert Bosch, Robert Bosch Company             Refers to   Robert Bosch Co., Ltd.、ROBERT BOSCH GMBH
    Bosch Automobile Diesel, Bosch Diesel System   Refers to   Bosch Automobile Diesel System Co., Ltd.
    Weifu Automotive Diesel                        Refers to   Wuxi Weifu Automotive Diesel System Co., Ltd.
    Weifu Leader                                   Refers to   Wuxi Weifu Leader Catalytic Converter Co., Ltd.
    Weifu Jinning                                  Refers to   Nanjing Weifu Jinning Co., Ltd.
    Weifu Chang’an                                Refers to   Wuxi Weifu Chang’an Co., Ltd.
    Weifu Mashan                                   Refers to   Weifu Mashan Pump Glib Co., Ltd.
    Weifu ITM                                      Refers to   Wuxi Weifu ITM Supercharging Technique Co., Ltd.
    Weifu Tianli                                   Refers to   Ningbo Weifu Tianli Supercharging Technique Co., Ltd.
    Weifu Jialin                                   Refers to   Chaoyang Weifu Jialin Machinery Manufacture Co., Ltd.
    Weifu Nano                                     Refers to   Jiangsu Weifu Nano Technology 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 Autocam                                  Refers to   Wuxi Weifu-Autocam Fine Machinery Co. Ltd.
    Weifu Environment                              Refers to   Wuxi Weifu Environment Catalyst Co.,Ltd.
    Kunming Xitong                                 Refers to   Kunming Xitong Machinery Co., Ltd.
    Weifu Tianshi                                  Refers to   Anhui Weifu Tianshi Machinery Co., Ltd.
    Zhonglian Electronic                           Refers to   Zhonglian Automobile Electronic Co., Ltd.
    Yinlun Co.,Ltd                                 Refers to   Zhejiang Yinlun Machinery Co., Ltd.
    APG                                            Refers to   Zhejiang Asia-Pacific Mechanical & Electronic Co., Ltd.
    Wiscom Technology                              Refers to   Jiangsu Wiscom Technology Co., Ltd.
    Yunyi Electric                                 Refers to   Jiangsu Yunyi Electric Co., Ltd.
    Hunan Tyen                                     Refers to   Hunan Tyen Machinery 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 Dec. 2014
                                            无锡威孚高科技集团股份有限公司 2014 年年度报告全文
                          Indication of major risksInformation Disclosure Media appointed by the Company is: China SecuritiesJournal, Securities Times, Hong Kong Commercial Daily and Juchao website(www.cninfo.com.cn). All the information is based on disclosure from them.Investors are advised to pay attention to investment risks.
                                                                         无锡威孚高科技集团股份有限公司 2014 年年度报告全文
                                          Section II Company profileI. Company information
    Short form of the stock                                           Weifu High- Tech, Su Weifu-B     Stock code    000581, 200581
    Stock exchange for listing                                        Shenzhen Stock Exchange
    Name of the Company (in Chinese)                                  无锡威孚高科技集团股份有限公司
    Short form of the Company (in Chinese)                            威孚高科
    Foreign name of the Company(if applicable)                        WEIFU HIGH-TECHNOLOGY GROUP CO.,LTD.
    Short form of foreign name of the Company(if applicable)          WFHT
    Legal representative                                              Chen Xuejun
    Registrations add.                                                No.5, Huashan Road, New District, Wuxi City
    Code for registrations add                                        214028
    Offices add.                                                      No.5, Huashan Road, New District, Wuxi City
    Codes for office add.                                             214028
    Company’s Internet Web Site                                      http://www.weifu.com.cn
    E-mail                                                            Web @ weifu.com.cnII. Person/Way to contact
                                         Secretary of the Board                             Rep. of security affairs
    Name                      Zhou Weixing                                        Yan Guohong
    Contact add.              No.5, Huashan Road, New District, Wuxi City         No.5, Huashan Road, New District, Wuxi City
    Tel.                      0510-80505999                                       0510-80505999
    Fax.                      0510-80505199                                       0510-80505199
    E-mail                    wfjt@public1.wx.js.cn                               wfjt@public1.wx.js.cnIII. Information disclosure and preparation place
    Newspaper appointed for information disclosure          China Securities Journal; Securities Times; Hong Kong Commercial DailyWebsite for annual report publish appointed by CSRC http://www.cninfo.com.cn
    Preparation place for annual report                     Office of the Board of DirectorsIV. Registration changes of the Company
                                                                           无锡威孚高科技集团股份有限公司 2014 年年度报告全文
                           Date for                                     Registration NO. for       No. of taxation   Organization
                                            Place for registration
                          registration                                 enterprise legal license      registration       code
    Initial                                  No.107, Renmin West
                   1988-10-27                                        GuoJiZi No.: 1707            320208250456967 25045696-7
    registration                             Road, Wuxi CityRegistration at
                                         No.5, Huashan Road,
    end of report      2013-10-20                                        320200000014926              320208250456967 25045696-7
                                         New District, Wuxi CityperiodChanges of main business since
                                         No changeslisting (if applicable)
                                         The company’s controlling shareholder was Weifu Group before 2009.The controlling
                                         shareholder changed to Industry Group from 31st May 2009 because Industry Group mergedPrevious changes for controlling
                                         Weifu Group in 2009.Becasue both Weifu Group and Industry Group were whollyshareholders (if applicable)
                                         state-owned companies of Wuxi State-owned Assets Supervision & Administration
                                         Commission of State Council, which as actual controller had no changes.V. Other relevant informationCPA engaged by the Company
    Name of CPA                              Jiangsu Gongzheng Tianye Certified Public Accountants Co., Ltd. (LLP)
    Offices add. for CPA                     No.28, Liangxi Road, Wuxi City
    Signing Accountants                      Zhang Caibin, Zhu YouminSponsor engaged by the Company for performing continuous supervision duties in reporting period□ Applicable √ Not applicableFinancial consultant engaged by the Company for performing continuous supervision duties in reporting period□ Applicable √ Not applicable
                                                                        无锡威孚高科技集团股份有限公司 2014 年年度报告全文
       Section III. Accounting data and summary of financial indexesI. Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accountingerror correction or not□Yes √□ No
                                                                                             Changes over
                                                        2014                 2013                                   2012
                                                                                                last year
    Operating income (RMB)                              6,354,480,020.38     5,589,307,689.55            13.69%      5,015,283,418.71Net profit attributable to shareholders of the
                                                    1,539,439,686.81     1,108,221,450.83            38.91%       889,326,939.46listed company(RMB)Net profit attributable to shareholders of the
    listed company after deducting non-recurring        1,404,877,811.26     1,013,085,655.87            38.67%       852,679,760.32gains and losses(RMB)Net cash flow arising from operating
                                                     889,899,654.79        803,958,123.13            10.69%      1,165,759,218.46activities(RMB)
    Basic earnings per share (RMB/Share)                             1.51                 1.09           38.53%                      0.9
    Diluted earnings per share (RMB/Share)                           1.51                 1.09           38.53%                      0.9
    Weighted average ROE                                           15.05%               12.12%            2.93%                11.36%
                                                                                             Changes over
                                                    End of 2014           End of 2013                           End of 2012
                                                                                             end of last year
    Total assets (RMB)                                 14,488,589,167.90    13,074,232,730.91            10.82%     11,055,973,932.34Net assets attributable to shareholder of listed
                                                   10,859,034,688.96     9,600,765,223.81            13.11%      8,655,980,755.24company (RMB)II. Difference of the accounting data under accounting rules in and out of China1. Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)□ Applicable √ Not applicableThe Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (InternationalAccounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.2. Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)□ Applicable √ Not applicable
                                                                          无锡威孚高科技集团股份有限公司 2014 年年度报告全文The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules orChinese GAAP (Generally Accepted Accounting Principles) in the period.III. Items and amounts of extraordinary profit (gains)/loss√Applicable □Not applicable
                                                                                                                                  In RMB
                          Item                             2014               2013                 2012                   NoteGains/losses from the disposal of non-current
    asset (including the write-off that accrued for         -16,283,213.60      13,126,709.30         4,352,926.75impairment of assets)Governmental subsidy reckoned into current
                                                                                                                 Including governmentgains/losses (not including the subsidy enjoyed
                                                                                                                 subsidy income
    in quota or ration according to national               170,915,324.15       19,375,596.41       15,105,216.19
                                                                                                                 received fromstandards, which are closely relevant to
                                                                                                                 relocation by policyenterprise’s business)Profit and loss of assets delegation on others’
                                                       158,156,542.41       91,274,698.13       24,750,377.29investment or managementSwitch-back of impairment of account
    receivable that practice impairment test                  3,970,434.00                             789,303.74independentOther non-operating income and expenditure
                                                          2,049,146.66      -1,806,748.05          -412,785.88except for the aforementioned items
    Relocation expenses                                    -158,174,925.50
    Less: Impact on income tax                               24,042,902.11      19,872,935.33         6,429,913.94
    Impact    on   minority      shareholders’   equity
                                                          2,028,530.46       6,961,525.50         1,507,945.01(post-tax)
    Total                                                  134,561,875.55       95,135,794.96       36,647,179.14              --Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, explain reasons□ Applicable √ Not applicableIn reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists ofextraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities tothe Public --- Extraordinary Profit/loss
                                                               无锡威孚高科技集团股份有限公司 2014 年年度报告全文
                      Section IV. Report of the Board of DirectorsI. Introduction(I)General introductionProduction and marketing on national auto market during 2014 achieved 23.7229 million and 23.4919 millionrespectively, announced by China Association of Automobile Manufactures, respectively increased by 7.26% and6.86% year-on-year, including 19.9198 million and 19.7006 million respectively for production and marketing ofpassenger cars, respectively securing 10.15% and 9.89% year-on-year growth rate, and 3.8031 million and 3.7913million of commercial vehicles with the decrease rate of 5.69% and 6.53% year-on-year respectively.A stable growth of the production and sales of automobile benefit a lot from the driving of passenger cars, whilethe commercial vehicle-which is closely related to the Company, presents languished due to double pressuresfrom macro economic deceleration and ugrading of National-IV emission regulations. During the Period, in acomplex and volatile market surroundings, the Company seized the switching opportunity of emission regulations,earnestly implement the industrial restructuring, achieved double growth in operation revenue and profit bytarget-oriented, preision management and risk & cost controlling. Three major operative segments of theCompany has higher level over the average standards in industry in aspect of production and sales, shares ofmajor market have been enhaced further and prodcut structure optimized one step further also.Operation revenue of RMB 6.355 billion for the reporting period, up 13.69% on a year-on-year basis; net profitattributable to parent company of RMB 1.539 billion, an increase of 38.91% from the year-ago period; total assetsof RMB 14.489 billion, a 10.82% up year-on-year and equity attributable to owners of parent company of RMB10.859 billion, up 13.11% on a year-on-year basis.(II)Major works1. Promote product research, strengthen the construction of R&D platform and ability, enhancing independentinnovation capabilityAccelerate the R&D for new products in three major systems, completely strengthening the construction of R&Dplatform and ability, many test equipments are came into use in the Period, integrated ability testing for the newproducts reach a higher stage of development; headquarter of WFHT and five subsidiaries as Weifu AutomotiveDiesel, Weifu Leader, Weifu Jinning, Weifu Tianli and Weifu Autocam passed the National High-Tech Enterprisesreview in the Year.2. Enhace risk pre-control, strengthen financial management and improve quality of economic operationPut more efforts in process control, identify, balance, analyzed and evaluated various risks migh have in operationactivities, strengthen precaution and control in order to lower the operation risks of the enterprise; reinforce theconstruction of financial management mechanism, comprehensive utilize and optimized group’s resouces,improve operating efficiency and reducing the operating risks.3. Improving quality management (QM), practice lean manufacturing conceptBuilding a manufacturing quality deparment, strengthen quality strip-line management, promote the optimizationfor process in business division, populatized and apply the new-version quality firewall, compaints within zeroKm drops dramatically under the circumstances of the product’s quality of common rail continued to surge;
                                                                        无锡威孚高科技集团股份有限公司 2014 年年度报告全文carried out the system improvement of bottleneck devices, constrution of lean production line, layout optimizationand removal direction of the industrial park, production efficiency improved and production costs reduced.4. Improve the budget system for equipment investmentFormulated an expert technical review mechanism for the application of new technology, mew equipment andnew materials as well as the capacity expansion, transformation and upgrading of the quipments.5. Actively carry out developmental strategy of talented person, focus on building an incentive mechanism for theGroupEstablish a medium & long-term motivation for group’s core talent, major innovation developmetn incentives andstaff inclusive incentive mechanism; strengthen core telants construction, pays high attention to talent introductionand training; deploy and arranged the staff reasonably, reinforce the structural redundance allocation within thegroup, continues to improve the production efficiency for employees.6. promoting information construction, improving management ability and strengthening core competition. WFHTcomplete the SAP system handover in 2014.7. steadily carried out adjustment of industry layout, promoted basic construction. On 19th September, theCompany officially launch the relocation works, 90 percent of the removal has been completed, every productionline realize a normal operation; investment projects with raise funds runs smoothly.II. Main business analysis1. IntroductionReview and summarization on the progress of development strategy and operation plan disclosed in previous period during thereporting periodIn 2014, BOD centre on development strategy of the Company and targets at year-beginning, seized the switchingopportunity of emission regulations, earnestly implement the industrial restructuring, achieved double growth inoperation revenue and profit by preision management implementation and risk & cost controlling. Achievingoperation revenue of RMB 6.355 billion in the reporting period, up 13.69% on a year-on-year basis; net profitattributable to parent company of RMB 1.539 billion, an increase of 38.91% from the year-ago periodReasons for difference of actual operation performance has 20% lower or higher than profit forecast of the Year disclosed□ Applicable √ Not applicableChanges of main operation mode□ Applicable √ Not applicable2. RevenueExplanationThe company mainly engaged in automobile parts, and achieved operating revenue RMB 6.355 billion, increasing13.69% y-o-y.Whether income from physical sales larger than income from labors or not√ Yes □ No
                                                                       无锡威孚高科技集团股份有限公司 2014 年年度报告全文
                                                                                                           Increase/decrease
                 Industries                           Item                 Unit              2014   2013
                                                                                                                y-o-y
                                            Sales volume          In 10 thousand units       161    155                 3.87%Fuel injection system—multiple-piston
                                            Production volume     In 10 thousand units       157    163               -3.68%pump
                                            Stock volume          In 10 thousand units       15      19             -21.05%
                                            Sales volume          In 10 thousand sets        454    585             -22.39%
    Fuel injection system—injector             Production volume     In 10 thousand sets        394    632             -37.66%
                                            Stock volume          In 10 thousand sets        55     115             -52.17%
                                            Sales volume          In 10 thousand pieces      174    149              16.78%
    Post-processing system—purifier            Production volume     In 10 thousand pieces      185    159              16.35%
                                            Stock volume          In 10 thousand pieces      47      36              30.56%
                                            Sales volume          In 10 thousand pieces      84     106             -20.75%
    Post-processing system—muffler             Production volume     In 10 thousand pieces      81     105             -22.86%
                                            Stock volume          In 10 thousand pieces       6      9              -33.33%
                                            Sales volume          In 10 thousand units       30      28                 7.14%
    Intake system—turbocharger                 Production volume     In 10 thousand units       32      28              14.29%
                                            Stock volume          In 10 thousand units        7      5               40.00%Reasons for y-o-y relevant data with over 30% changes√Applicable □Not applicableProducts of the fuel injection system along with the promotion of National IV emission regulations, marketrequirement of common rail pump products risen markedly while mechanical system products (mechanical pump,oil atomizer ) declined rapidly at the same time, thus the production & sales of the mechanical system products(mechanical pump, oil atomizer ) as well as inventory shows a dramatically decreasing range on a year-on-yearbasis;Market demand for after-treatment system products rise greatly owing to the promotion of National IV emissionregulations, and the diesel oil system products comes to a new point of growth by seizing the opportunity; y-o-ydecliend of the prodcut & sales and inventory for muffler products mainly due to the change of marketing idea tointegration supply for exhaust system in order to satisy the needs of customer quality management; intake systemof the supercharger products consolidated the original market shares, new projects achieve a breakthrough andnew market layout is active.Material orders in hands□ Applicable √ Not applicableMaterial changes or adjustment for products or services of the Company in reporting period□ Applicable √ Not applicableMajor sales of the Company
    Total top five clients in sales (RMB)                                                                       2,442,717,202.06
    Proportion in total annual sales volume for top five clients                                                         38.44%
                                                                          无锡威孚高科技集团股份有限公司 2014 年年度报告全文Information of top five clients of the Company√Applicable □Not applicable
    Serial                          Name                             Sales (RMB)                   Proportion in total annual sales
    1      Bosch Automobile Diesel                                      1,442,480,811.13                                      22.70%
    2      Client II                                                      299,111,963.11                                       4.71%
    3      Client III                                                     248,904,061.62                                       3.92%
    4      Client IV                                                      237,285,248.57                                       3.73%
    5      Client V                                                       214,935,117.63                                       3.38%
    Total                            --                                   2,442,717,202.06                                      38.44%Other situation of main clients√Applicable □Not applicableThe Company has association with RBCD, sales amount has been deliberated and approved in Annual General Meeting of 2013.Furhtermore, directors, sueprvisors, senior executives, core technicians and actual controller have no equity of the main clients helddirectrly or indirectly.3. CostIndustry classification
                                                                                                                                In RMB
                                                                 2014                                2013
                                                                                                                              Y-o-y
    Industry classification              Item                             Ratio in                            Ratio in
                                                        Amount                              Amount                           changes
                                                                        operation cost                      operation cost
    Automobile parts                   Direct material   3,397,543,062.59         77.72% 2,932,939,105.10             77.47%       15.84%
    Automobile      parts              Labor cost         363,453,233.78            8.31%    336,433,791.03             8.89%       8.03%
    Automobile parts                   Depreciation       130,749,849.07            2.99%    113,287,016.34             2.99%      15.41%
                                   Varieties of
    Automobile parts                                      480,031,203.07          10.98%     403,066,029.67           10.65%       19.09%
                                   consumptionProduct classification
                                                                                                                                In RMB
                                                                 2014                                2013
                                                                                                                              Y-o-y
    Industry classification                Item                              Ratio in                            Ratio in
                                                        Amount                              Amount                           changes
                                                                        operation cost                      operation cost
    Fuel injection system          Direct material       2,093,926,460.49         70.22% 2,001,127,856.10             72.11%        4.64%
    Fuel injection system          Labor cost             317,905,324.78          10.66%     303,491,485.66           10.94%        4.75%
    Fuel injection system          Depreciation           110,463,249.39            3.70%       98,562,552.54           3.55%      12.07%
                               Varieties of
    Fuel injection system                                 459,603,709.06          15.42%     371,768,012.63           13.40%       23.63%
                               consumption
                                                                           无锡威孚高科技集团股份有限公司 2014 年年度报告全文
    Intake system               Direct material           112,990,249.62           78.61%          96,361,023.76        75.15%       17.26%
    Intake system               Labor cost                  13,772,871.27           9.58%          14,606,404.08         11.39%      -5.71%
    Intake system               Depreciation                10,230,243.90           7.12%           9,587,386.03          7.48%       6.71%
                            Varieties of
    Intake system                                            6,737,112.01           4.69%           7,670,333.89          5.98%     -12.17%
                            consumption
    Post-processing system      Direct material         1,190,626,352.48           95.54%         835,450,225.24        94.66%       42.51%
    Post-processing system      Labor cost                  31,775,037.73           2.55%          18,335,901.29          2.08%      73.29%
    Post-processing system      Depreciation                10,056,355.78           0.81%           5,137,077.76          0.58%      95.76%
                            Varieties of
    Post-processing system                                  13,690,382.00           1.10%          23,627,683.16          2.68%     -42.06%
                            consumptionNoteProduction and sales of post-processing system is growing faster, so direct material and labor cost etc. is growing faster.Main suppliers of the Company
    Total purchase amount from top five suppliers (RMB)                                                                    1,334,077,765.59
    Proportion in total annual purchase amount for top five suppliers                                                                32.64%Information of top five suppliers of the Company√Applicable □Not applicable
    Serial                        Name                         Sum of purchase (RMB)            Proportion in total annual sum of purchase
       1     Weifu Environment                                             764,668,053.38                                        18.71%
       2     Bosch Automobile Diesel                                       212,764,780.21                                         5.21%
       3     Client 3                                                      128,558,086.93                                         3.15%
       4     Client 4                                                      116,430,625.87                                         2.85%
       5     Robert Bosch Company                                           111,656,219.20                                        2.73%
    Total                          --                                    1,334,077,765.59                                        32.64%Other notes of main suppliers of the Company√Applicable □Not applicableThe Company has association with Weifu Environment, RBCD and Rober Bosch Gmbh, the asociated purchasing amount has beendeliberated and approved in Annual General Meeting of 2013. Furhtermore, directors, sueprvisors, senior executives, coretechnicians and actual controller have no equity in main suppliers directrly or indirectly.4. ExpensesIn the reporting, the company’s main expenses are as follows:
                                                                                                                      In 10 thousand yuan
                        Name                                     2014                            2013               Increase y-o-y (%)
    Sales expenses                                                           17,491.90                      20,715.29                   -15.56
    Administration expenses                                                  64,869.83                      55,828.54                    16.19
                                                                        无锡威孚高科技集团股份有限公司 2014 年年度报告全文
    Financial expenses                                                    -2,480.33                   -5,689.11
    Income tax expenses                                                   12,344.37                  10,301.61                   19.835. R&D expensesIn reporting period, the Company accelerate the R&D for new products in three major systems, completelystrengthening the construction of R&D platform and ability, many test equipments are came into use in the Period,integrated ability testing for the new products reach a higher stage of development; headquarter of WFHT and fivesubsidiaries as Weifu Automotive Diesel, Weifu Leader, Weifu Jinning, Weifu Tianli and Weifu Autocam passedthe National High-Tech Enterprises review in the Year. In 2014, the R&D expenses of the Company were RMB311,720,000, accounting for 2.88% of the latest audited net profit and 4.91% of the latest audited operatingincome.6. Cash flow
                                                                                                                           In RMB
                           Item                                      2014                      2013               Y-o-y changes
    Subtotal of cash in-flow from operation activity                   7,419,267,132.14          6,384,171,015.19             16.21%
    Subtotal of cash out-flow from operation activity                  6,529,367,477.35          5,580,212,892.06             17.01%
    Net cash flow from operation activity                                889,899,654.79            803,958,123.13             10.69%
    Subtotal of cash in-flow from investment activity                  3,865,416,741.91          2,036,906,091.62             89.77%
    Subtotal of cash out-flow from investment activity                 4,658,898,786.84          3,094,204,131.67             50.57%
    Net cash flow from investment activity                              -793,482,044.93         -1,057,298,040.05
    Subtotal of cash in-flow from financing activity                   1,014,051,439.96            888,120,000.00             14.18%
    Subtotal of cash out-flow from financing activity                  1,370,980,853.33            778,844,160.72             76.03%
    Net cash flow from financing activity                               -356,929,413.37            109,275,839.28            -426.63%
    Net increased amount of cash and cash equivalent                    -260,511,803.51           -144,064,077.64Reasons for y-o-y relevant data with over 30% changes√Applicable □Not applicableSubtotal of cash in-flow from investment activity growth 89.77 percent y-o-y, mainly because the maturity forentrust financial investment in the Period increased over same period of last year;Subtotal of cash out-flow from investment activity growth 50.57 percent y-o-y, mainly because the out-flow ofentrust financial investment in the Period increased over same period of last year;Subtotal of cash out-flow from financing activity growth 76.03 percent y-o-y, mainly because debt payment forbanks in the period and distributed cash bonus have more out-flow over same period of last year;Net cash flow from financing activity has more RMB 466205300 out-flow over same period of last year, mainlybecause distributed cash bonus have more over same period of last year and bank loans in-flow at same period oflast yearReasons of major difference between the cash flow of operation activity in report period and net profit of the Company√Applicable □Not applicable
                                                                             无锡威孚高科技集团股份有限公司 2014 年年度报告全文Mainly due to the investment, and specific influencing factors found more in supplementary information of cahsflow statement carried in Annotation of the Report.III. Composition of main business
                                                                                                                                 In RMB
                                                                                Increase/decrease Increase/decrease Increase/decrease
                                                                 Gross profit
                          Operating revenue   Operating cost                      of operating    of operating cost     of gross profit
                                                                     ratio
                                                                                 revenue y-o-y          y-o-y            ratio y-o-yAccording to industries
    Automobile parts           5,912,176,928.72 4,371,777,348.50         26.05%              14.64%             15.48%               -0.55%According to productsAutomobile fuel
                           4,156,102,827.14 2,981,898,743.71         28.25%               6.13%              7.46%               -0.89%injection system
    Intake system               192,913,621.49     143,730,476.80        25.49%              12.06%             12.09%               -0.02%Automobile
    post-processing            1,563,160,480.09 1,246,148,127.99         20.28%              46.20%             41.20%                2.82%systemAccording to region
    Domestic                   5,621,505,188.04 4,090,444,865.57         27.24%              14.66%             15.40%               -0.46%
    Oversea                     290,671,740.68     281,332,482.93          3.21%             14.23%             16.67%               -2.02%Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based onlatest one year’s scope of period-end□ Applicable √ Not applicableIV. Assets and liability analysis
    1. Major changes of assets                                                                                                     In RMB
                                                   End of 2014                           End of 2013                          Notes of
                                                                                                                   Ratio
                                                                   Ratio in                            Ratio in                major
                                               Amount                               Amount                        changes
                                                                 total assets                        total assets             changes
    Monetary fund                                 2,360,027,208.92      16.29%       2,447,555,672.40        18.72%   -2.43%
    Account receivable                            1,206,105,236.56       8.32%       1,132,835,466.09         8.66%   -0.34%
    Inventory                                     1,111,669,480.16       7.67%         986,790,491.70         7.55%       0.12%
    Investment real estate                          21,418,942.40        0.15%            3,424,363.44        0.03%       0.12%
    Long-term equity investment                   3,314,987,967.02      22.88%       2,519,560,708.20        19.27%       3.61%
    Fix assets                                    1,349,745,789.17       9.32%       1,471,037,804.88        11.25%   -1.93%
    Construction in progress                       477,416,068.77        3.30%         199,463,338.80         1.53%       1.77%
                                                                              无锡威孚高科技集团股份有限公司 2014 年年度报告全文2. Major changes of liability
                                                                                                                                   In RMB
                                          2014                                      2013                                       Notes of
                                                                                                                 Ratio
                                                                                                                                major
                          Amount             Ratio in total assets      Amount          Ratio in total assets   changes
                                                                                                                               changes
    Short-term loans         415,000,000.00                    2.86%       399,500,000.00                 3.06%        -0.20%
    Long-term loans           60,000,000.00                    0.41%        60,000,000.00                 0.46%        -0.05%3. Assets and liabilities measured by fair value√Applicable □Not applicable
                                                                                                                                   In RMB
                                         Changes of fair    Accumulative
                   Amount at the                                               Devaluation of   Amount of Amount of
                                             value          changes of fair                                               Amount in the
        Items         beginning                                                withdrawing in purchase in sale in the
                                         gains/losses in    value reckoned                                                  end of period
                        period                                                   the period      the period     period
                                           this period        into equityFinancial assets3.Financial
    assets available    385,009,400.00        22,598,950.00      143,056,900.00                                               411,596,400.00for salesAforementioned
                    385,009,400.00        22,598,950.00      143,056,900.00                                               411,596,400.00totalFinancial
                                  0.00                                                                                               0.00liabilitiesWhether the attribute of the company’s major assets measurement has a lot changes in the reporting□Yes √□ No4. Main overseas assets□ Applicable √ Not applicableV. Analysis on core competitivenessThe Company is a key enterprise of car (power engineering) kernel components in China, currently, the Companyand its controlling subsidairies owes a complete industrial chain of diesel fuel-injection system, exhaustafter-treatment system and air intake system, expanding production and actively carried out strategic layout,strengthen technical reserves and closely corresponding to the promotion of Nation IV emission standards, anobvious advantage in industry are come into being.1. Advanced technical advantage(1) Focus on technical research, an obvious technical advantage has already taken shape. The Company is the key
    Hi-Tech enterprise of State’s Torch Program as well as in Jiangsu Province.                    Owns the scientific research base of―National Enterprise Technical Center‖, ―Workstation for Greaduate Students in Jiangsu Province‖
                                                               无锡威孚高科技集团股份有限公司 2014 年年度报告全文and―Industrialization Base of National Hi-Tech R&D Plan Achievement‖ with advantages of technologies. Inlatest three years, spending on R&D annually takes over 3 percent of the annual revenue from main business.R&D input mainly for improving the product’s quality, increasing variety and satisfying requriement of productsupgrading and updating. The Company, always insist on the general directive idea of technical innovation strategyas ―harmony footstone, innovation as a drive and strive to create a new prospect of scientific development of theCompany‖, unswervingly implemente the ―science and technology enterprise‖ as the development strategy. Inactual work, always make R&D of the three major segment products(oil-injection system, exhaust after-treatmentsystem and intake system) at top priority, formulated an effectual innovation mechanism, that is, on core platformof the innovation system as National Technology Center, under the way of scientific decision-making with R&Doriented, supplemented by an effectual inspirtiting talents system, talent cultivating mechanism and innovationinput mechanism, continues to put more investment by encouraging tenical innovation, consolidate hardwareconstruction in technology center with purpose of being top of the industry in technology innovation area.(2) Technical merit of the diesel fuel-injection system lies a leading position in domestic. The Company is thecorporate champion of fuel injection equipment for the diesel fuel-injection system in China, technical merit holdsthe leading position in the same industry with full range of samples of diesel fuel-injection system productspossess. Varietal range, production size, marke share occupation and economic benefits stands in the professional
    leading position for consecutive years.    The commonr rail pump, self-exploitated by the Company and jointlydeveloped by Bosch Company has now in quantity production in order to meet the needs in Chinese market. TheBosch Automobile Diesel, jointly operates by the Company and Bosch Company, is the leader of electroniccontrol diesel injection system in China. Bosch Automobile Diesel owns a world-class equipment and employees,has item-matching, demarcate and system development ability in field of diesel injection system as well as thecapacity to develop technology of common rail pressure fuel pump, the important components, and it capable ofprojects aiming at National IV and above emission standards. Menwhile, reducing fuel comsumption by optimizedthe system settings and functions in order to meet requirment of energy-saving and const-refucing for the clients.Products of electronic control diesel injection system under the name of Bosch Automobile Diesel has to be thefirst selection for clients in China.(3) The Company’s exhaust after-treatment system technology is strong. Core technology of the exhaustafter-treatment system has reached international level, technical advantages are based on the follow points: firstly,Weifi Enviornment, the subordinate enterprise of Weifu Leader, possess the core catalyst business for the systemof exhaust after-treatment, and mastering core techniques. Secondly, Weifu Leader has the technical skills ofsystem integrated supply to down stream customers. Thirdly, Weifu Leader have product line of SCR, DOC andPOC etc., and it can be capable of providing different products for different requirement from down streamcustomers.2. Product specifications complete, large-scale production(1) The Company possess full range of samples of diesel fuel-injection system products. And it is widely used fordiesel with various power, matching for all kinds of turcks, coach, engineering machinery, marine and genratingsets. Export to Americas, South-east Asia and middle east at the same time of domestic-supporting. Quantity and
                                                                          无锡威孚高科技集团股份有限公司 2014 年年度报告全文variety for the main product lines are in a leading position in the same industry domestically. The Company is thebiggest core parts manufacturers of diesel oil-injection system in China.(2) The Company has a catalyst and after-treatment system poduction line in leading position in the country,producing after-treatment products of multiple lines of catalyst, purifier and muffler, including DOC, POC, SCRand SCR controlling system, and be able to meet the purification of pollutant as CO and HC, and requirement oflower emissions of PM and NOX, meet the emission standards of National IV.(3) The Company has two manufactguring base for supercharger, that is Weifu Leader and Weifu ITM. Wheeldiameter of the supercharger covers full range of 30mm-125mm, matched majority of the small cylinder diameterDiesel Engine Plant in the country and part of the diesel engine plants with 6 cylinders, meet requirements of L/HCV and part of the passenger car. At present, the Company has the vacuum relief valve control and drive-by-wirevariable section supercharger, TiAI supercharger, electric supercharger and ceramic ball bearing supercharger thatmeets emission standards of National IV and above, and part of the kinds as gasoline engine superchargerproducts.3. Customer stability, market maturity(1) For many years, the Company simutaneous develop with the diesel main engine plants in the country. Andmaintained good cooperative relations with such plants, the Company has a stable matching supply relationshipwith the clients.(2) In aspect of exhaust after-treatment system, clients of the Weifu Leader concentrate mainly on self-ownedbarnd auto manufactures. With constantly improving of recognized degree for Leader’s products, relevantproducts will gradually access to joint venture brand car market.(3) The air intake system products- supercharger, developed by the Company is match the domestic diesel engineplant in the country recently and with supply of material accomplished; gasoline supercharger is in process ofmatching to the customers.VI. Investment analysis1. Situation of foreign equity investment(1) Situation of foreign investment√Applicable □Not applicable
                                                    Situation of foreign investment
    Investment in reporting period (RMB)            Investment in same period of last year (RMB)                  Changes
                         103,169,578.60                                               24,981,687.00                        312.98%
                                                  Situation of the invested company
                                                                                                       Equity proportion in invested
            Name                                          Main business
                                                                                                      company for Listed company
    Shanghai Cheng Ding De          Venture investment, industrial investment, venture investment                               15.87%
                                                                                无锡威孚高科技集团股份有限公司 2014 年年度报告全文Tong Equity Fund Co., Ltd. management, investment management and investment consulting
    Weifu Autocam                   Automobile parts                                                                                               51.00%(2)Holding equity of financial enterprise√Applicable □Not applicable
                                     Amount of       Proportion
                                                                   Amount of Proportion
                                     stock-holdi          of                                  Book
                                                                   stock-holdi      of                Gains and
                             Initial  ng at the      stock-holdi                            value at
                                                                     ng at the stock-holdi            loss in the Accountin
    Name         Type      investment beginning        ng at the                            the end of                       Source of
                                                                    end of the ng at the               reporting g subject
                          cost(RMB)     of the        beginning                            the period                         stock
                                                                      period    end of the              (RMB)
                                        period          of the                               (RMB)
                                                                     (Share)      period
                                       (Share)          period
                                                                                                                           FinancialGuolian
              Securities 12,000,000.                                                             12,000,000                assets         Subscripti
    Securities                              18,000,000       1.20% 18,000,000           1.20%                     720,000.00
              company              00                                                                   .00                available      onCo., Ltd.
                                                                                                                           for salesNanjing
                                                                                                                           FinancialHengtai
              Insurance 1,000,000.0                                                              1,000,000.                assets         Subscripti
    Insurance                                1,000,000       1.85% 1,000,000            1.85%
              company               0                                                                   00                 available      onand Broker
                                                                                                                           for salesCo., Ltd.
                          13,000,000.                                                            13,000,000
    Total                                   19,000,000       --        19,000,000       --                        720,000.00        --             --
                                   00                                                                   .00(3)Situation of securities investment√Applicable □Not applicable
                                            Amount
                                                     Proportio
                                               of                                        Proporti
                                                        n of   Amount of
                                           stock-hol                                       on of      Book
                       Short                         stock-hol stock-holdi                                    Gains and
                                   Initial  ding at                                      stock-ho value at
    Variety of Code of form of                            ding at    ng at the                                    loss in the Accounti Source of
                                investment    the                                         lding at the end of
    securities securities securitie                         the     end of the                                     reporting ng subject stock
                                cost(RMB) beginning                                       the end the period
                         s                           beginning period                                           (RMB)
                                             of the                                        of the    (RMB)
                                                       of the    (Share)
                                             period                                        period
                                                       period
                                            (Share)
                                                                                                                             Financial
                                  199,208,00 23,680,00                                              260,006,4 1,397,120 assets             Subscript
    Stock        SDEC        600841                                2.72% 23,680,000            2.72%
                                          0.00            0                                             00.00          .00 available ion
                                                                                                                             for sales
                                                                                                                             Financial
             Miracle              69,331,500.                                                       151,590,0 232,500.0 assets             Subscript
    Stock                    002009                  9,300,000     2.90% 9,300,000             2.90%
             Logistics                      00                                                          00.00              0 available ion
                                                                                                                             for salesOther investment in securities
                                                          0        --              0        --                                       --         --held at period-end
                                                                           无锡威孚高科技集团股份有限公司 2014 年年度报告全文
                                 268,539,50 32,980,00                                       411,596,4 1,629,620
    Total                                                            --   32,980,000       --                              --        --
                                         0.00           0                                      00.00          .00
    Disclosure date of securities   2012-03-24investment approval of Board
                                2013-06-04reportDisclosure date of securitiesinvestment approval of Boardreport(if applicable)(4) Statement of holding other listed companies’ equity√Applicable □Not applicableOn 24th March 2012, the Company approved participation in the subscription of SDEC non-public offering A share in 23rd Meeting of6th Session of the Board, subscribing for SDEC non-public offering stocks 14.8 million shares at the price of RMB 13.46 per share,which proportion in total stocks after SDEC non-public offering stocks was 2.72%.The company committed no transfer after thesubscription in 12 months, restricted period (2012-3-23-2013-3-22).SDEC implemented the plan of annual profit distribution andconverting capital reserve into share capital for 2011 on 4th June 2012.( sending cash of RMB 0.5(tax included) per every 10 shares,converting 6 shares per every 10 shares. In the reporting, the company held SDEC 23.68 million shares.In May 2013, in line with the define authority in ―Decision-making System of Major Investment and Financial‖, being discussed bythe management and approved from the Chairman, the Company decide to subscribe 9.3 million private placement shares fromMiracle Logistics with RMB 7.455 per share, a 2.9 percent in total share capital of Miracle Logistics after placement. The Companycommitted no transfer after the subscription in 12 months, restricted period (4 June 2013 to 3 June 2014).at the end of the reportingperiod the Company held Miracle Logistics 9.3 million shares.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
                     Whether                                                    Determin                                     Actual
           Related                               Amount                                   principal    devaluati
    Name of              related                              Start date End date    ation                           Estimated gains/loss
          relationsh                Type          of trust                                  actual       on of
    trustee            trade or                                of trust  of trust method of                          income     es in
               ip                               financing                                  taking      withdrawi
                        not                                financing financing reward                                        period
                                                                                           back in      ng (if
                                                                                           period      applicable
                                                                                                            )
                                                                               Floating
                                 Bank                                          rate,
                                 financing,                                    maximize
    Bank,                            managem                    2014-01- 2014-12- d
           No           No                       345,380                                     342,690                15,177.03 15,815.65
    trust                            ent plan,                  01        31       annualize
                                 trust                                         d ate of
                                 products                                      return
                                                                               agreed in
                                                                             无锡威孚高科技集团股份有限公司 2014 年年度报告全文
                                                                                 contract
    Total                                           345,380       --         --          --     342,690              15,177.03 15,815.65
                                              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
                                                                                                                                        0accumulated earnings amount
    Lawsuit involved (if applicable)              N/ADisclosure date for approval from the
                                              2014-04-15Board for trust financing (if applicable)Disclosure date for approval from board ofshareholders for trust financing (ifapplicable)(2) Investment of derivatives□ Applicable √ Not applicableThe Company has no derivatives investment in the Period(3) Entrustment loan□ Applicable √ Not applicableThe Company has no entrustment loan in the Period3. Application of raised proceeds√Applicable □Not applicable(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                                                                      67,675
    Total accumulative raised proceeds invested                                                                                  253,553.64
                                                General application of raised proceedsOn 21 January 2012, the CSRC issued the reply on approving non-public issuance of Weifu High-technology Group Co., Ltd.(ZJXK(2012)No.109), pursuant to which, the Company was approved to issue new shares not exceeding 112,858,000 bynon-public offering. On 10 February 2012, Jiangsu Gongzheng issued capital verification report (SGW(2012)No.B006), stating thatas at 10 February 2012, Weifu High-tech has already issued 112,858,000 RMB common shares (A-share) and raised capitalproceeds of RMB2,866,028,910.00. after deduction of issuance expense of RMB15,904,657.07, the net raise proceeds wasRMB2,850,124,252.93. As at the end of the reporting period, raise proceeds of RMB 2,535,536,400 has been invested.
                                                                            无锡威孚高科技集团股份有限公司 2014 年年度报告全文(2) Situation of committed project of raised proceeds√Applicable □Not applicable
                                                                                                                       In 10 thousand yuan
                                                                        Amount of Investm
                                                                                   Predicted                                     Project
                     Projects                                  accumulate   ent
                     changed      Total     Total                                  serviceab Profit Reach the                  feasibility
    Committed                                                       d    program
                       or not committed investme Amount                                le    achieved predicted                     wasinvestment projects
                     (includin investment nt after invested in investment till the
    &investment of                                                                  condition in this interest or                changed
                         g      of raised adjustme this year
    raised fund                                                 till the year-end
                     changed     capitals   nt (1)                                  date of    year      not                    hugely or
                     partially)                                 year-end (3)=(2)/
                                                                                    project                                         not
                                                                   (2)       (1)Investment project commitmentR&D of WAPS,industrialization,
    productivity                                                                                     2013-10-
                        No             62,032      62,032 30,515.93      51,337.25 82.76%                                      No
    expansion of diesel                                                                              31common rail systemparts
    Construction project                                                                             2013-10-
                        No             57,750      57,750 33,287.86      50,145.95 86.83%                                      No
    in industrial zone                                                                               31
    Industrialization of                                                                             2015-06-
                        Yes            26,000      26,000    3,871.21    22,840.01 87.85%                                      No
    tail treatment system                                                                            30
    Research institution                                                                  100.00 2012-12-
                        No              5,154       5,154                     5,154                                            No
    project                                                                                      % 31Battery material of
                                                                                                 2012-12-
    engines and R&D of No                  10,000      10,000                                                                      No
                                                                                                 31battery
                                                                                      100.00 2012-06-
    Equity acquisition      No           34,381.5    34,381.5                  34,381.5                         4,615.16           No
                                                                                             % 30
    Liquid assets                                                                         100.00
                        No             90,000 89,694.93                  89,694.93                                             No
    supplementation                                                                              %Subtotal of
    commitment                    --   285,317.5 285,012.43        67,675 253,553.64        --            --    4,615.16     --         --projectsInvestment orientation for fund arising out of plan
                                                 285,012.
    Total                         --     285,317.5                 67,675 253,553.64        --            --    4,615.16     --         --
                                                        43
    Situation about not     1. WAPS research development and industrial diesel common rail system components capacity enhancement
    coming up to            project. Under the feasibility report of this project, the date for reaching the condition for intended use was onschemed progress or 31 October 2013. As of 31 December 2013, the accumulative investment amounted to RMB 513,372,500,
                                                                            无锡威孚高科技集团股份有限公司 2014 年年度报告全文
    expected revenue         representing investment progress of 82.76%. Reason for lag behind the progress included: (1)the raised
    and the reason(In        proceeds was not in place in time (the proceeds was expected to be in place in March 2011, while the actual
    specific project)        cash time was February 2012); (2) The project has WAPS system products involved, which was
                         self-developed by the Company without example, the products have completed after work of consistency and
                         reliability and come to Market-Einfuehrung stage; (3) components involved in the project with diesel
                         common rail system: currently, with the promotion of emission standards of National IV, common rail
                         products have complete cover the market of National IV, the common rail components matching the Bosch
                         diesel common rail products are in short supply, therefore, the Company rapid up the capacity improvement
                         for common rail parts at present.
                          2. Under the feasibility report of Construction of industry park project, the date for reaching the condition
                         for intended use was on 31 October 2013. As of the end of the reporting period, the accumulative investment
                         amounted to RMB 501,459,500, representing investment progress of 86.83%. Reason for lag behind the
                         progress included: (1) in 2012, the project not to start as scheduled due to the relocation of governmental
                         parcel; the project started in April 2013; (2) The relocation has been completed at the end of 2014 and the
                         project was in a good process recently.
                         3. Auto power battery materials and power battery research project. Under the feasibility report of this project,
                         the date for reaching the condition for intended use was 31 December 2012. As of the end of the reporting
                         period, the accumulative investment was nil. Reasons included: (1) the raised proceeds was not in place in
                         time; (2) The Company followed the project in the last two years, and there was great uncertainty in
                         technology and policy, therefore, the Company was prudent for this project and continued to follow
                         development of power battery and would make decisions if needed.Explanation on great
    changes of               Not applicablefeasibility of projectAmount, usage and Not applicableprogress of using forfund raising out ofthe plan
    Change of                Not applicableimplementationplace of investmentproject of raisedcapitals
                         Applicable
                         Occurred in previous yearAdjustment of
                         In consideration of the uncertainty of emission regulation promotion (Standard Three turns to Standard Four),implementation way
                         and the lands are in short supply at the mean time, the original investment plan of ― Industrialization of tailfor investment
                         treatment system‖ met no needs of the subsidiary Wuxi Weifu Leader Catalytic Converter Co., Ltd. ofproject of raised
                         implementing subject company in aspect of development. Therefore, part of the content in ―Industrializationcapitals
                         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
                                                                           无锡威孚高科技集团股份有限公司 2014 年年度报告全文
                        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 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
    Regulation of           Co., Ltd. Up to 29 February 2012, the actual investment funding for fund-raised project invested in advance
    implementation          with self-raised funds amounting as 299.12 million Yuan, including 1. R&D of WAPS, industrialization,ways of investment productivity expansion of diesel common rail system parts: 180.05 million Yuan; 2. construction project inproject of raised  industrial zone: 16.62 million Yuan; 3. industrialization of tail treatment system: 28.56 million Yuan; 4.
    capitals           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.
    Invested in             Not applicablepre-phases andreplacement forraised fund projectsTemporarilysupplement for thecurrent capitals withidle raised capitals
    Usage and trend of      Not applicableunused raisedcapitalsInvested in
                        On the storage and the usage of raised capitals, the company’s execution strictly based on related laws andpre-phases and
                        regulations and three-party supervision protocol of raised capitals (four-party supervision protocol of raisedreplacement for
                        capitals) in the reporting period.raised fund projectsIssues or otherconditions found in
                        Not applicableuse of fund raisedand disclosure
                                                                           无锡威孚高科技集团股份有限公司 2014 年年度报告全文(3)The changed project of raised proceeds□ Applicable √ Not applicableThe Company has no project of raised proceeds changed in the Period4. Main subsidiaries and stock-jointly companies√Applicable □Not applicableParticular about main subsidiaries and stock-jointly companies
                                                                                                                               In RMB
                                             Main
    Company                                                   Register                              Operating    Operating
                 Type       Industries    products or                  Total assets Net Assets                             Net profit
    name                                                     capital                                revenue      profit
                                            service
    Weifu                                    Fuel injection
                           Automobile                     300,000,00 1,211,695,9 966,202,69 1,652,389,7 320,427,73 274,145,25
    Automotive Subsidiary                    system
                           parts                          0.00              67.68         4.00       98.70          9.10         2.40
    Diesel                                   productions
                                         Post-processi
    Weifu                      Automobile                     502,596,30 1,948,654,4 1,087,753,7 1,684,437,6 179,660,72 163,423,60
              Subsidiary                 ng system
    Leader                     parts                          0.00              16.23        88.40       72.19          0.31         6.65
                                         productions
                                         Fuel injection
    Weifu                      Automobile                     346,286,82   963,499,34 735,771,96 540,245,71 65,076,775. 63,351,827.
              Subsidiary                 system
    Jinning                    parts                          5.80                1.37        0.72         3.87          48            17
                                         productions
    Bosch                                    Fuel injection
              Joint-stock Automobile                      USD241,00 8,394,329,2 6,335,018,1 9,809,093,9 2,239,897,9 1,846,063,4
    Automobile                               system
              company      parts                          0,000.00          00.00        88.00       36.00        55.00         93.00
    Diesel                                   productions
    Zhonglian     Joint-stock Automobile Petrol system 600,620,00 2,683,409,2 2,660,168,9 9,986,411.7 1,028,387,0 1,027,126,3
    Electronic    company      parts         productions      0.00              12.87        24.99           9        40.55         62.54Notes of main subsidiaries and stock-jointly companiesBenefit from the promotion of National IV emission standards, products of the National IV manufactured by theCompany is behind the requirement. the common rail pump and diesel after-treatment system products comes to anew point of growth by seizing the opportunity; operation revenue, operation profit and net profit of the WeifuDiesel and Weifu Leader for year of 2014 has been a sharp increase respectively over same period of last year;Benefit from the promotion of National IV emission standards, shares holding corporate Weifu Automotive Dieselgains a more increase of operation revenue, operation profit and net profit in 2014 over same period of last year;Impact by market demand, operation revenue, operation profit and net profit in 2014 for Weifu Jinning presentedthe great scope drops.Particular about subsidiaries obtained or disposed in report period√Applicable □Not applicable
                                                                          无锡威孚高科技集团股份有限公司 2014 年年度报告全文
                  Purpose of getting
    Name of           and treating                                                                             Influence on overall
                                          The way of getting and treating subsidiary in the reporting
    company         subsidiary in the                                                                        product and performance
                      reporting
                                       Cancel in February of the Period, the profit statement and cash
                No operation for
    Weifu Nano                             flow statement from period-begin to date of the cancelled           No influence
                long-term
                                       included in consolidated statement for the Period
                                       Cancel in April of the Period, the profit statement and cash flow
                Adjustment of
    Weifu Jialin                           statement from period-begin to date of the cancelled included in    No influence
                product structure
                                       consolidated statement for the Period5. The significant progress of non-raised proceeds investment□ Applicable √ Not applicableThe Company had no significant progress of non-raised proceeds investment in the Period.VII. Prediction of business performance from January –March 2015Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or thewarning of its material change compared with the corresponding period of the last year and explanation on reason□ Applicable √ Not applicableVIII. Special purpose vehicle under the control of company□ Applicable √ Not applicableIX. Prospects on future developmentThe Company operates business in auto components industry, producing and selling fuel injection system product,auto post-processing system products and auto intake system products.(I)Industry Competition Structure and Growing TrendChina’s economy comes to a ―new normal‖, and is in an important phase of transition. With the implementation ofthe national development strategy as ―One Belt and One Road‖, ―Three Economic Zones‖ and ―Made in China2025‖, and encouraging creativity and strengthen on energy-saving and emission-reduction, bringing a newdevelopment opportunity to the industry of commercial vehicles. And efficiently promoting the technologystandards of kernel components of commercial vehicles, helped to the growth of National IV produtcs.(II)Operation plan for year of 2014The Company seized the market opportunity of regulations changed, practically promote industrial restructuring,exploiting new business growth, focus on improving the quality and benefit for economic gains, acehived a stabledevelopment for the enterprise and reinforing competitiveness constantly.1. Continuously promoting product strcture adjustment, accelerate building of system’s capacity. Three majorsystem’s overall integration ability is the key to competitiveness of kernel components, based on the integratedplanning, priority breakthrough, resources sharing to further strengthen resources integration and increase system
                                                               无锡威孚高科技集团股份有限公司 2014 年年度报告全文ability rapidly.2. Improved risk control system, intensify financial controls. Strictly pre-control the operation fund risks andcntroling expenses Completes the treatment of account receivable and product inventory arising from the switchof emission standards; around by two main lines of ―cost controlling flows‖ and ―capital controlling flows‖, putmore efforts on quality of the financial control; strengthen seriousness of the badget management, increasecontrolling points for the costs, total employee involvement of cost control, expenses control and improveefficiency; promoted the internal control and process mechanims buildings in every business divisions of theGroup, plug up loopholes and reduced various operation risks; reinforced the captial allocation, improvedmovement quality of the working capital.3. Improve movement quality, focus on continual improvement and established culture of Made -by-Weifu.Strengthen process control in quality management, the ability census of the systematic pushing equipement andimprovement, promote on-line monitor and application of the bad-proof instrument, firmly grasp the processchange management popularization and lean production, makes the lean production idea to be rooted toemployees, put them into effect, gradually building a culture of Made-by-Weifu center as quality, respct creativityand laboring.4. Carried out deepen and application of the ERP system5. Speed up the industrial distribution adjustment, promote basic consstrution6. Improve the talent development incentive standards, strengthen personnel control ability. Comprehensivelyupgrading the talent development and incentive quality for the Group, put more efforts on strategy core talentintroduction and cultivation ability, improved relevant supporting management system for the talent introduction;pushed employee management whoes invovled in the adjsutment of industgry layout in a steady way, continualupgrading production efficiency of the employees.(III)Development strategyPositively develop the fuel injection system products, after-treatment system products and engine intake system(supercharger) corrsponding to the national energy-saving and emission reduction standards, creating anddevelping a new pattern on that basis, Weifu reconstruction in 2020.(IV) Risk for year of 2014The macroeconomic environment in and out of China, automotive industry policy and execution of the NationalIV Emission Standards will makes a large impact on development of the Company.X. Explanation of the Board of Directors on the “Qualified Opinion” of the report made bythe CPAs□ Applicable √ Not applicableXI. Explanation on changes of accounting policy, accounting estimation and settlementmethod compared with the last year’s financial report√Applicable □Not applicableI. Changes of accounting policies
                                                                        无锡威孚高科技集团股份有限公司 2014 年年度报告全文(I)The reasons for the changes of accounting policies1. Minsitry of Finance released 7 regulations since 26 January 2014: three accounting standardsincreased, that is "Accounting Standards for Business Enterprises No. 39 - Fair Value Measurements ","Accounting Standards for Business Enterprises No. 40 - Joint Venture Arrangement" and "Accounting Standardsfor Business Enterprises No. 41 - Disclosure of Interests in Other Entities"; four standards are revised, including"Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investments, "Accounting Standardsfor Business Enterprises No. 9 - Employee Remuneration‖, " Accounting Standards for Business Enterprises No.30 - Presentation of Financial Statements " and " Accounting Standards for Business Enterprises No. 33 -Consolidated Financial Statements ". and requires s implementing the accounting standards within the enterprisewho has the accounting standards executed since 1 July 2014.2. On June 20, 2014, the Ministry of Finance revised the "Accounting Standards for Business Enterprises No. 37 -Presentation of Financial Instruments", which requires the enterprises to present the financial instruments in thefinancial reports of 2014 and the subsequent periods in accordance with the requi rements of the accountingstandards.3. On July 23, 2014, the Ministry of Finance released the decision of revising ―Accounting Standards for BusinessEnterprises - Basic Standards", which requires the enterprises implementing the accounting standards to executesince the release date.(II) The accounting policies before change"Accounting Standards for Business Enterprises - Basic Standards", 38 specific accounting standards, accountingstandards application guide, accounting standards interpretations and other relevant provisions issued by theMinistry of Finance on February 15, 2006.(III) The accounting policies after changeAfter the changes, accounting standards of the Company refers to the 8 rules of Accounting Standards forBusiness Enterprises No.2, No. 9, No.30, No.33, No.37, No.39, No.40 and No.41 that released by Ministry ofFinance since 26 January 2014 and the Accounting Standards for Business Enterprises- Basic Norms revised dated23 July 2014. Relevant regulations and rules issued by Ministry of Finance on 15 Feburary 2006 are be used forthe parts without changed.II. The specific circumstances of the accounting policy change and the impact on the companyThe Company executed the 7 new or revised accounting standards except the Presentation of FinancialInstruments since 1 July 2014, and started executing the Presentation of Financial Instruments in preparing theannual financial report of 2014. And impart on items and amount of current and previous financial statements areas due to the adjustment for standards engagement:
                                                                      Amount impact on relevant        Amount impact on relevant
                                                                      financial statement dated 31     financial statement dated 1
      Standards after revisi         Name of item involved
                                                                      December 2013/ for year of     January 2013/ for year of 2013
                                                                      2013 (Increase +/decrease -)        (Increase +/decrease -)―Accounting Standard for
                                Long-term equity investment                        -102,940,000.00                 -102,940,000.00Business Enterprises No. 2 –Long-Term Equity Investment‖
                                Financial assets available for sale                 102,940,000.00                  102,940,000.00
    ―Accounting Standard for       Employee Benefits                                  -122,586,433.61                 -132,424,637.05
                                                                         无锡威孚高科技集团股份有限公司 2014 年年度报告全文Business Enterprises No. 9 –
                                    Long-term remuneration payables                   122,586,433.61                    132,424,637.05Employee Benefits‖
    ―Accounting Standard for           Other non-current liability                      -195,506,040.61                   -133,879,108.31Business Enterprises No. 30 –Presentation of Financial
                                    Deferred income                                   195,506,040.61                    133,879,108.31Statements‖
    ―Accounting      Standard      for
                                    Capital surplus                                   -98,999,415.00                    -56,509,360.00Business Enterprises No. 30 –
    Presentation      of      Financial
                                    Other comprehensive income                         98,999,415.00                     56,509,360.00Statements‖Change of the accounting policy shows no impact on the total asstes, total liabilities and net assets end as 2013and 2012 as well as the net profit of 2013 and 2012, except for the listing of items of financial statements.XII. Particular about major accounting errors correction that needs retroactive re-statementin reporting period□ Applicable √ Not applicableNo particular about major accounting errors correction that needs retroactive re-statement for the Company in the reporting.XIII. Compare with last year’s financial report; explain changes in consolidation statement’sscope√Applicable □Not applicable(1) Weifu Nano cancel in February of the Period, the profit statement and cash flow statement from period-begin to date of thecancelled included in consolidated statement for the Period;(2) Weifu Jialin cancel in April of the Period, the profit statement and cash flow statement from period-begin to date of the cancelledincluded in consolidated statement for the PeriodXIV. Profit and dividend distributionFormulation, Implementation and Adjustment of Profit Distribution Policy Especially Cash Dividend policy during the ReportingPeriod√Applicable □Not applicableThe bonus scheme of the Company was formulated strictly in line with relevant regulation of Article of Association.The Company attached great importance to a reasonable return to investors. In 2012, in accordance with the―Notice on Further Implementation of Relevant Matters of Cash Dividend for Listed Company‖ from CSRC and―Notice on Further Implementation of Relevant Requirement of Cash Dividend for Listed Company‖ fromJiangsu Securities Regulatory Bureau, and according to actual circumstance of the Company, amendment of partof the clause of ―Article of Association‖ was deliberated and approved in 2 nd extraordinary general meeting of2012 held dated 27 August 2012. (Found more in ―Resolution Notice of 2nd extraordinary general meeting of2012‖ released on Juchao Website dated 28 August 2012). During the reporting period, profit distribution plan ofthe Company is strictly in line with the regulations of cash dividend policy regulated in ―Article of Association‖,fully listened to the opinions from the independent directors and minority investors safeguarded the lawful interestof minority shareholders.The profit distribution plan for 2014: based on the new total share capital of 1,020,200,992 shares, distribute cashdividend of RMB 4.00 (tax included) for every 10 shares, and no capitalization of capital reserve.
                                                                         无锡威孚高科技集团股份有限公司 2014 年年度报告全文
                                            Special explanation on cash dividend policy
    Satisfy regulations of General Meeting or requirement of Article of Association (Y/N):                                        Y
    Well-defined and clearly dividend standards and proportion (Y/N):                                                             Y
    Completed relevant decision-making process and mechanism (Y/N):                                                               Y
    Independent directors perform duties completely and play a proper role (Y/N):                                                 YMinority shareholders have opportunity to express opinions and demands totally and their legal rights are fully
                                                                                                                              Yprotected (Y/N):Condition and procedures are compliance and transparent while the cash bonus policy adjusted or changed
                                                                                                                        Not applicable(Y/N):The profit distribution plan and capitalization of capital reserve plan of the Company for the last three years (reporting periodincluded)The profit distribution plan for 2012: based on the total share capital of 680,133,995 shares as at the end of 2012,distribute cash dividend of RMB3.00 (tax included) for every 10 shares, 5 shares bonus issued (tax included) andno capitalization of capital reserve. The plan has been implemented completely in July 2013.The profit distribution plan for 2013: based on the total share capital of 1,020,200,992 shares as at the end of 2013,distribute cash dividend of RMB3.00 (tax included) for every 10 shares, and no capitalization of capital reserve.The profit distribution plan for 2014: based on the new total share capital of 1,020,200,992 shares, distribute cashdividend of RMB 4.00 (tax included) for every 10 shares, and no capitalization of capital reserve.Cash dividend in latest three years
                                                                                                                                  In RMB
                                                                                                                         Proportion of
                                                                                                            Amount
                                       Net profit attributable to   Ratio in net profit attributable to                   the amount
                                                                                                        reckoned into
    Year for     Amount for cash           shareholders of listed     shareholders of listed company                       reckoned into
    bonus shares bonus (tax included)     company in consolidation        contained in consolidation         cash bonus
                                                                                                                          cash bonus
                                       statement for bonus year                 statement                  from cash
                                                                                                                            from cash
                                                                                                          repurchase
                                                                                                                           repurchase
    2014            408,080,396.80               1,539,439,686.81                            26.51%               0.00            0.00%
    2013            306,060,297.60               1,108,221,450.83                            27.62%               0.00            0.00%
    2012            204,040,198.50                 889,326,939.46                            22.94%               0.00            0.00%The Company gains profits in reporting period and the retained profit of parent company is positive but no plan of cash dividendproposed□ Applicable √ Not applicableXV. Profit distribution plan and capitalizing of common reserves plan for the Period√Applicable □Not applicable
    Bonus shares for every 10-share (Share)                                                                                                  0
    Dividends for every 10-share (RMB) (Tax included)                                                                                  4.00
    Shares added for every 10-share base (Share)                                                                                             0
    Equity base of distribution plan (Share)                                                                                 1,020,200,992
                                                                           无锡威孚高科技集团股份有限公司 2014 年年度报告全文
    Total cash dividend(RMB) (Tax included)                                                                                   408,080,396.80
    Distributable profits (RMB)                                                                                             3,908,431,926.63
    Ratio of cash dividend in total profit distribution                                                                             100.00%
                                                         Cash dividend policy:Other
                         Detail explanation on profit distribution or capitalization from capital public reservePursuit to the Standard Unqualified Auditor’s Report for year of 2014 issued by Jiangsu Gongzheng, the profit available fordistribution of the parent company for year of 2014 are as: retained profit at beginning of the 2014 was RMB 3,013,207,200, plusnet profit of the parent company for year of 2014 RMB 1,277,776,800, less the legal surplus withdrawal in the year RMB76491800, and deducted cash bonus distributed for year of 2013 RMB 306,060,300, the retained profit for end of the 2014amounting to RMB 3,908,431,900. Profit distribution plan for year of 2014: on base of the total 1020,200,992 shares at end of2014, distributed 4.00 Yuan (tax included) in cash for each 10 shares, no transfer of reserve to common shares. The remainingretained profit carried forward to next year. Profits allocate for year of 2014 amounting to RMB 408,080,400.XVI. Social responsibility√Applicable □Not applicableMore details of the company ―social responsibility report 2014‖ could be found in Juchao Website, the identifiable informationdisclosure website by Shenzhen Stock Exchange. (www.cninfo.com.cn)The listed company and subsidiaries is in the range of heavy pollution industry that regulated by State environment protectiondepartments
    □Yes √ No    □Not applicableThe listed company and subsidiaries owes other major social safety issues
    □Yes √ No    □Not applicableAdministrative penalty occurred in reporting period
    □Yes √ No    □Not applicableXVII.In the report period, reception of research, communication and interview√Applicable □Not applicable
                                                                                                              Contents discussed and
    Time            Place             Way         Type                        Reception
                                                                                                                   material provided
                                                             Eighteen people of CITIC Securities,
                                                             Fullgoal Fund, HuaAn Funds, Penghua Fund,
                                                             Korea Investment, Mirae Assets, Tokyo
                                                                                                           Communicated with the
              Office of the       Spot                       Haishang Assets Company, Rubowai
    2014-03-04                                     Institution                                                 Company with their
              Board               research                   Investment Company, Cephei capital,
                                                                                                           concern
                                                             Goldstate Securities, CIFM, Zhizhu
                                                             Investment, BOC Asset Management,
                                                             Huatai-Pinebridge Fund etc.
              Scene of the        Spot                                                                     Basic condition of the
    2014-06-20                                     Institution Institution
              shareholders’      research                                                                 Company, implementation
                                                                         无锡威孚高科技集团股份有限公司 2014 年年度报告全文
             general meeting                                                                      of Standard IV and views
                                                                                                  on market in 2014
                                                                                                  The Company answered the
                                                                                                  questions of 380 for
                                                                                                  investors online through the2014-01-12- Office of the
                               Other        Individual Public investor                            investor relations
    31           Board
                                                                                                  interactive
                                                                                                  platform(http://irm.p5w.net/
                                                                                                  dqhd/sichuan/)
                                                                                                  Basic condition of the
                                                                                                  Company, implementation
                               Telephone                                                          of Standard IV and views2014-01-12- Office of the
                               communicat Individual Public investor/ Institution                 on market in 2014,
    31           Board
                               ion                                                                telephone communication
                                                                                                  with investors more than
                                                                                                  500.
    Reception (times)                                                                                                          938
    Number of hospitality                                                                                                        98
    Number of individual reception                                                                                             783
    Number of other reception                                                                                                    57Disclosed, released or let out major undisclosed
                                                                                                                             Noinformation
                                                                        无锡威孚高科技集团股份有限公司 2014 年年度报告全文
                                        Section V. Important EventsI. Significant lawsuits and arbitrations of the Company□ Applicable √ Not applicableNo lawsuit or arbitration of the company in the annual.II. Questioned from media□ Applicable √ Not applicableNo media questioned for the Company in reporting periodIII. Non-operational fund occupation of the listed company from controlling shareholder andits related parties□ Applicable √ Not applicableNo non-operational fund occupation from controlling shareholders and its related party in period.IV. Bankruptcy reorganization
    □ Applicable    √ Not applicableNo bankruptcy reorganization for the Company in reporting periodV.Trade of assets1. Purchase of assets□ Applicable √ Not applicableNo purchase of assets for the Company in reporting period2. Assets sold□ Applicable √ Not applicableNo assets sold for the Company in reporting period3. Enterprise merger
    □ Applicable    √ Not applicableNo enterprise merger for the Company in reporting periodVI. Implementation of the company’s equity incentive and the effects□ Applicable √ Not applicableNo equity incentive plan formulated and implemented by the Company.
                                                                     无锡威孚高科技集团股份有限公司 2014 年年度报告全文VII. Significant related transaction1. Related transaction connected to routine operations√Applicable □Not applicable
                                                                  Related Proportio Related
                                                                                                 Similar
                        Related Related                         transaction n in the
    Related     Related                                   Related                       transactio trading
                       transactio transacti Pricing             amount (in amount of                       Date of Index of
    transactio relationshi                                transacti                           n      market
                            n        on     principal               10      the same                      disclosure disclosure
    n parties       p                                    on price                                    price
                          type     content                       thousand transactio settlement
                                                                                       mode     available
                                                                   Yuan)        n
    Weifu                                                                                                     2014-04- ‖Predictio
                    Procurem
    Precision                                                                                                 15       n of Daily
                    ent of   Procure                                                Accordin
    Machiner Associated                  Market                                                                        Related
                    goods or ment of                             4,631.47     1.13% g to the
    y         company                    price                                                                         Transacti
                    labor    goods                                                  contract
    Manufact                                                                                                           on      for
                    service
    uring                                                                                                              year     of
                                                                                                                   2014‖
             Associated
                                                                                                                   and
             company,      Procurem
                                                                                                                   ―Resoluti
    Bosch        controlling   ent of   Procure                                         Accordin
                                            Market                                                                 on Notice
    Diesel       subsidiary    goods or ment of                     21,276.48     5.21% g to the
                                            price                                                                  of Annual
    System       of German     labor    goods                                           contract
                                                                                                                   Sharehold
             Bosch         service
                                                                                                                   ers
             Company
                                                                                                                   General
                        Procurem                                                                                   Meeting
    Weifu        Joint
    Environm     venture of
                        ent of   Procure
                                         Market
                                                                                    Accordin                       of 2013‖
                        goods or ment of                        76,466.81    18.71% g to the                       published
    ent          Weifu                       price
                        labor    goods                                              contract                       on Juchao
    Protection   Leader
                        service                                                                                    Website
             Second        Procurem
             largest       ent of   Procure                                         Accordin
    German                                      Market
             shareholde    goods or ment of                     11,165.62     2.73% g to the
    Bosch                                       price
             r of the      labor    goods                                           contract
             Company       serviceWeifuPrecision
                                    Sales of                                        Accordin
    Machiner Associated Sales of                 Market
                                    spare                        1,704.08     0.27% g to the
    y         company goods                      price
                                    parts                                           contractManufacturing
             Associated
             company,
    Bosch        controlling            Sales of                                        Accordin
                         Sales of            Market
    Diesel       subsidiary             spare                      144,248.08    22.70% g to the
                         goods               price
    System       of German              parts                                           contract
             Bosch
             Company
    Weifu        Joint
                                    Sales of                                        Accordin
    Environm     venture of Sales of             Market
                                    raw                          2,111.22     0.33% g to the
    ent          Weifu      goods                price
                                    material                                        contract
    Protection   Leader
             Second
             largest                Sales of                                        Accordin
    German                  Sales of             Market
             shareholde             spare                          862.39     0.14% g to the
    Bosch                   goods                price
             r of the               parts                                           contract
             Company
             Large                  Lease
    Wuxi                                                                                 Accordin
             shareholde             for land
    Industry                Other                                         320            g to the
             r of the               use
    Group                                                                                contract
             Company                rights
                                                                            无锡威孚高科技集团股份有限公司 2014 年年度报告全文
                                     payable
             Associated              Labor
             company,                service
    Bosch        controlling             and                                                     Accordin
    Diesel       subsidiary Other        technolo                             374.86             g to the
    System       of German               gy                                                      contract
             Bosch                   service
             Company                 payable
             Associated
             company,
                                     Technol
    Bosch        controlling                                                                     Accordin
                                     ogy
    Diesel       subsidiary Other                                             770.83             g to the
                                     service
    System       of German                                                                       contract
                                     payable
             Bosch
             Company
    Weifu        Joint
                                     Rental                                                  Accordin
    Environm     venture of
                        Other        receivab                             216.66             g to the
    ent          Weifu
                                     le                                                      contract
    Protection   Leader
             Associated
             company,
    Bosch        controlling             Purchase                                                Accordin
    Diesel       subsidiary Other        of fixed                           2,520.87             g to the
    System       of German               assets                                                  contract
             Bosch
             Company
    Weifu        Joint
                                     Sales of                                                Accordin
    Environm     venture of
                        Other        fixed                                546.24             g to the
    ent          Weifu
                                     assets                                                  contract
    Protection   Leader
    Total                                               --           --   267,215.61      --          --         --          --         --Detail of sales return with major amount
                                                Not applicableinvolved
                                          The above mentioned related transactions are the necessary trading which closelyNecessity and sustainable of related
                                          concerned with daily operation of the Company, Board of the Company guarantee thetransaction as well as reasons of related
                                          above mentioned exercising in a fair value pricing and reasonable payment/receivetransaction with related parties(not with
                                          condition from point of protecting interest of investors, no interest of the listedother marketing dealers)
                                          company injured.Influence on independence of listed
                                                Shows no influence on independence of the Companycompany from related transactionDependence on related parties from theCompany, as well as related measurements Not applicable(if applicable)
    Report the actual implementation of the         The total amount from daily related transaction in reporting period still in the predicted
    normal related transactions which were          amount that approved in Annual Shareholders’ General Meeting of 2013, the predicted
    projected about their total amount by types     amount of daily related transactions for year of 2014 at year-begin amounting as RMB
    during the reporting period (if applicable)     2,941,200,000 in total.Reasons for major differences between
    trading price and market reference price (if    Not applicableapplicable)2. Related transactions by assets acquisition and sold
    □ Applicable    √ Not applicableNo related transactions by assets acquisition and sold for the Company in reporting period3. Main related transactions of mutual investment outside
    □ Applicable    √ Not applicableNo main related transactions of mutual investment outside for the Company in reporting period4. Contact of related credit and debt
                                                                         无锡威孚高科技集团股份有限公司 2014 年年度报告全文□ Applicable √ Not applicableNo contact of related credit and debt for the Company in reporting period5. Other related transactions□ Applicable √ Not applicableNo other related transactions for the Company in reporting period.VIII. Major contract and implantation1. Trusteeship, contract and leasing(1) Trusteeship
    □ Applicable     √ Not applicableNo trusteeship for the Company in reporting period(2) Contract
    □ Applicable     √ Not applicableNo contract for the Company in reporting period(3) Leasing
    □ Applicable     √ Not applicableNo leasing for the Company in reporting period2. Guarantees√Applicable □Not applicable
                                                                                                                  In 10 thousand Yuan
           Particulars about the external guarantee of the Company (Barring the guarantee for the controlling subsidiaries)
                         Related                Actual date of
                                                                                                             Complete Guarante
                      Announcem                  happening
    Name of the                    Guarantee                        Actual        Guarantee        Guarantee implemen     e for
                            ent                    (Date of
    Company guaranteed                   limit                      guarantee limit      type             term    tation or related
                        disclosure                  signing
                                                                                                                 not      party
                           date                  agreement)
                                         Guarantee of the Company for the subsidiaries
                         Related                Actual date of
                                                                                                             Complete Guarante
                      Announcem                  happening
    Name of the                    Guarantee                        Actual        Guarantee        Guarantee implemen     e for
                            ent                    (Date of
    Company guaranteed                   limit                      guarantee limit      type             term    tation or related
                        disclosure                  signing
                                                                                                                 not      party
                           date                  agreement)Ningbo Tianli
                                                                                Joint liability
    Turbocharging         2014-01-17        6,000 2013-12-24                  6,000                   3 years    No         No
                                                                                guarantyTechnology Co., Ltd.
                                                                Total amount of actualTotal amount of approving
                                                                occurred     guarantee        for
    guarantee for subsidiaries in                            29,000                                                             6,000
                                                                subsidiaries in report periodreport period (B1)
                                                                (B2)
                                                                Total balance of actualTotal amount of approved
                                                                guarantee for subsidiaries at
    guarantee for subsidiaries at the                        29,000                                                             6,000
                                                                the end of reporting periodend of reporting period (B3)
                                                                (B4)Total amount of guarantee of the Company( total of two abovementioned guarantee)
    Total amount of approving                                       Total amount of actual
                                                         29,000                                                             6,000
    guarantee in report period                                      occurred guarantee in report
                                                                          无锡威孚高科技集团股份有限公司 2014 年年度报告全文
    (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
                                                                                                                              0.55%net assets of the Company (that is A4+ B4)Including:Amount of guarantee for shareholders, actual controller and its
                                                                                                                                   0related parties(C)The debts guarantee amount provided for the guaranteed parties
                                                                                                                                   0whose assets-liability ratio exceed 70% directly or indirectly(D)Proportion of total amount of guarantee in net assets of the
                                                                                                                                   0Company exceed 50%(E)
    Total amount of the aforesaid three guarantees(C+D+E)                                                                              0Explanations on possibly bearing joint and several liquidating
                                                               Not applicableresponsibilities for undue guarantees (if applicable)Explanations on external guarantee against regulated
                                                               Not applicableprocedures (if applicable)Explanation on guarantee with composite way(1) Guarantee outside against the regulation□ Applicable √ Not applicableNo guarantee outside against the regulation in Period3. Other material contracts
    □ Applicable    √ Not applicableNo other material contracts for the Company in reporting period4. Other material transaction
    □ Applicable    √ Not applicableNo other material transactions for the Company in reporting periodIX. Implementation of commitments1. Commitments from the Company or shareholders (with over 5% shares held) occurred in reportingperiod or occurred in previous period but continued to this period√Applicable □Not applicable
                 Commitment                                     Dated for Commitm
    Commitments                               Contents                                                     Implementation
                    party                                      commitment ent term
                           In order to promote the listed                                 In order to fully mobilize the enthusiasm
                           company’s steady and healthy                                  of senior executives, perfected and
                           development, fully mobilize                                    improved the Company’s incentive and
                           senior executives so as to                                     restraint       mechanism,          largest
                           ensure to combine the                                          shareholder-Industry Group, proposed that
                           interests of the governance                                    established incentive fund in WFHT and
             Wuxi Industry and shareholders of the                                        formulated     specific     implementation
    Share Merger Development Company, Weifu Industry                                          measures instead of the management
                                                          2006-04-05
    Reform       Group Co.,    Group committed: after Weifu                                   equity incentive plan, carried out mid and
             Ltd.          High-tech finishing Share                                      long-term incentive with purpose of
                           Merger Reform, under related                                   promoting the health and stable
                           regulations of the state and                                   development of WFHT for the core talents,
                           Wuxi government in terms of                                    management included. The ―Unfulfilled
                           governance     encouragement                                   Commitment of Share Merger Reform
                           system of listed company, the                                  Made by Majority Shareholder and
                           Group would the stock                                          Proposal of Changing the Management
                                                                        无锡威孚高科技集团股份有限公司 2014 年年度报告全文
                                  incentive    plan     for                             Incentive Mechanism Plan of WFHT‖ and
                                  management level of Weifu                             ―Implementation Method of Incentive
                                  High-tech.                                            Fund‖ were deliberated and approved by
                                                                                        AGM of 2013 held on 20 June 2014.
                                                                                        Commitments fulfilled.Commitmentsin report ofacquisition orequity changeCommitmentsin assetsreorganization
                           The privately offering of the
                           Company         totally     issue
                           112,858,000 A-shares to
             Wuxi Industry
                           substantial shareholder WuxiCommitments Development
                           Industry Group and foreign
    in initial   Group Co.,
                           strategy investor ROBERT
    public       Ltd. and                                                                   Implementing
                           BOSCH GMBH. The aboveoffering or  ROBERT
                           said shares are listed forrefinancing  BOSCH
                           trading in Shenzhen Stock
             GMBH
                           Exchange since 29 February
                           2012        with        36-month
                           restrictionothercommitmentsto minorityshareholdersof theCompanyCompleted on
             Yestime or notDetail reasonsforun-compleme
               Not-applicablent and furtherplan(ifapplicable)2. Concerning assts or project of the Company, which has profit forecast, and reporting period still inforecasting period, explain reasons of reaching the original profit forecast□ Applicable √ Not applicableX. Appointment and non-reappointment (dismissal) of CPAAccounting firm appointed
    Name of domestic accounting firm                                            Jiangsu Gongzheng Tianye CPA Co., Ltd. (LLP)
    Remuneration for domestic accounting firm (in 10 thousand Yuan)             142
    Continuous life of auditing service for foreign accounting firm             23
    Name of domestic CPA                                                        Zhang Caibin, Zhu YouminWhether re-appointed accounting firms in this period or not□Yes √□ NoAppointment of internal control auditing accounting firm, financial consultant or sponsor
                                                                    无锡威孚高科技集团股份有限公司 2014 年年度报告全文√Applicable □Not applicableBeing deliberated in Annual Shareholders General Meeting of 2013, Jiangsu Gongzheng was appointed as auditaccounting firm for internal control of the Company for year of 201 4. In the Period, auditing charge for internal controlamounting to accounting firms as RMB 160,000.XI. Explanation from Supervisory Committee and Independent Directors (if applicable) for“Qualified Opinion” from the CPA□ Applicable √ Not applicableXII. Penalty and rectification□ Applicable √ Not applicableNo penalty and rectification for the Company in reporting period.XIII. Suspension and delisting after disclosure of annual report□ Applicable √ Not applicableXIV. Other material events□ Applicable √ Not applicableThe Company had no other material event in the Period.XV. Significant events of the subsidiaries□ Applicable √ Not applicableXVI. Corporate bond offering□ Applicable √ Not applicable
                                                                          无锡威孚高科技集团股份有限公司 2014 年年度报告全文
    Section VI. Changes in Shares and Particulars about ShareholdersI. Changes in Shares1. Changes in Shares
                                                                                                                              In shares
                             Before the Change                Increase/Decrease in the Change (+, -)            After the Change
                                                       New          Capitalizatio
                                                             Bonus                                                            Proport
                            Amount         Proportion shares         n of public     Others       Subtotal      Amount
                                                             shares                                                             ion
                                                      issued           reserve
    I. Restricted shares       234,279,323        22.96%                                -64,941,598 -64,941,598    169,337,725 16.60%
    1. State holding                       02. State-owned
                           118,967,998        11.66%                                -64,941,598 -64,941,598     54,026,400 5.30%
    corporate     shares3. Other domestic
                                  50,725       0.01%                                                                50,725 0.01%sharesIncluding: domestic
                                       0                                                                                 0corporate sharesDomestic nature
                                  50,725       0.01%                                                                50,725 0.01%person shares
    4. Foreign shares          115,260,600        11.30%                                                           115,260,600 11.30%Including: Foreign
                           115,260,600        11.30%                                                           115,260,600 11.30%corporate sharesForeign nature person
                                       0                                                                                 0shares
    II. Unrestricted shares    785,921,669        77.04%                                64,941,598   64,941,598    850,863,267 83.40%1. RMB Ordinary
                           613,541,669        60.14%                                64,941,598   64,941,598    678,483,267 66.51%shares2. Domestically listed
                           172,380,000        16.90%                                                           172,380,000 16.90%foreign shares3. Foreign listed
                                       0                                                                                 0foreign shares
    4. Other                               0                                                                                 0
                                                                                                                              100.00
    III. Total shares         1,020,200,992     100.00%                                                           1,020,200,992
                                                                                                                                   %Reasons for share changed□ Applicable √ Not applicableApproval of share changed□ Applicable √ Not applicableOwnership transfer of share changed
                                                                             无锡威孚高科技集团股份有限公司 2014 年年度报告全文□ Applicable √ Not applicableInfluence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in latest year and period□ Applicable √ Not applicableOther information necessary to disclose for the Company or need to disclosed under requirement from security regulators□ Applicable √ Not applicable2. Changes of restricted shares√Applicable □Not applicable
                                                                                                                                  In shares
                                        Shares             Restricted Shares
                    Opening shares                                                  Ending shares      Restricted
    Shareholders                       released in          Increased In the                                           Date for released
                       restricted                                                     restricted        reasons
                                        Period                  PeriodWuxi Industry
                                                                                                    Commitment
    Development            118,967,998     64,941,598                                      54,026,400                   2014-7-29
                                                                                                    of share reformGroup Co., Ltd
    Total                  118,967,998     64,941,598                               0      54,026,400          --                --II. Security offering and listing1. Previous security offering in latest three years at period-end√Applicable □Not applicable
                                                                                                       Numbers
    Stock/derivative                     Offering price (or       Circulation                                             End of trading
                      Offering date                                                 Listing date      approved for
    securities                           interest rate)          number                                                     date
                                                                                                        tradingCommon stock
    Privately offering 2012-02-07         25.395                     112,858,000 2012-02-29                 112,858,000Convertible corporate bond, separable-traded convertible bond and corporate bondsWarrantExplanation on security offering in previous three yearsOn 21 January 2012, being approved by CSRC ―Approval of Reply on Privately Offering of WEIFUHIGH-TECHNOLOGY GROUP CO.,LTD‖ (ZJXK [2012] No.109), the Company offering no more than112,858,000 new shares in total.The privately offering of the Company totally issue 112,858,000 shares to two objects with offering price of25.395 Yuan per share for 2866.0289 million Yuan collected. The above said shares are listed for trading inShenzhen Stock Exchange since 29 February 2012 with 36-month restriction; listing date predicted as 1 March2015.
                                                                       无锡威孚高科技集团股份有限公司 2014 年年度报告全文2. Explanation on changes of total shares and shareholders structure as well as changes of structure ofassets and liability□ Applicable √ Not applicable3. Existing internal staff shares□ Applicable √ Not applicableIII. Particulars about shareholder and actual controller of the Company1. Amount of shareholders of the Company and particulars about shares holding
                                                                                                                            In shares
                                         Total common
                                                                             Total preference shareholders
    Total common                             shareholders at end of
                                                                             with voting rights recovered at
    shareholders in                   39,507 the 5th trading day           45085                                                      0
                                                                             end of reporting period (if
    reporting period-end                     before annual report
                                                                             applicable) (found in note8)
                                         disclosed
                           Particulars about shares held above 5% by shareholders or top 10 shareholding
                                        Proportio      Total                                                       Number of share
                                                                     Changes       Amount of       Amount of
    Full name of          Nature of       n of    shareholders at                                                   pledged/frozen
                                                                     in report   restrict shares    un-restrict
    Shareholders         shareholder     shares the end of report                                                 State of
                                                                      period           held        shares held              Amount
                                          held        period                                                       shareWUXI INDUSTRY
                State-owned
    DEVELOPMENT                              20.00%        204,059,398                  54,026,400     150,032,998
                legal personCROUP CO., LTD.ROBERT BOSCH Foreign legal
                                         14.00%        142,841,400                 115,260,600       27,580,800
    GMBH            personChina ConstructionBank-Fullgoal
                   Domestic
    Tianbo Innovation                          1.73%        17,600,000                                   17,600,000
                   non-state-owne
    Theme Stock        d legal personSecuritiesInvestment FundCCB-Bosera Theme Domestic
    Industry Stock   non-state-owne            1.67%        17,000,000                                   17,000,000Investment Fund  d legal person
    National Social        Domestic
    Security Fund-103      non-state-owne      1.51%        15,354,520                                   15,354,520
    portfolio              d legal personBBH BOS S/A
               Foreign legal
    FIDELITY FD -                              1.43%        14,551,379                                   14,551,379
               personCHINA FOCUS FDNCI—Bonus—Indi Domestic
    vidual Bonus     non-state-owne            1.21%        12,339,394                                   12,339,394-018L-FH002 Shen d legal person
    National Social        Domestic
    Security Fund-106      non-state-owne      1.10%        11,240,075                                   11,240,075
    portfolio              d legal personBOCOM—Fullgoal
                    DomesticTianyi Value
                    non-state-owne         0.91%         9,263,442                                    9,263,442Security Investment
                    d legal personFund
    ICBC- Jinshun          Domestic
    Greatwall Selected     non-state-owne      0.69%         6,999,974                                    6,999,974
    Blue-Chip Stock        d legal person
                                                                          无锡威孚高科技集团股份有限公司 2014 年年度报告全文Investment Fund
                                         Among the top ten shareholders, the Company knew there has no associated relationship
                                         between Wuxi Industry Development Croup Co., Ltd., the first largest shareholder of the
    Explanation on associated                Company, and other shareholders; and they do not belong to the consistent actionist
    relationship among the aforesaid         regulated by the Management Measure of Information Disclosure on Change of
    shareholders                             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 period-end               Type              Amount
    WUXI INDUSTRY DEVELOPMENT CROUP CO., LTD.                                           150,032,998 RMB common shares
                                                                                                  Domestically foreign
    ROBERT BOSCH GMBH                                                                    27,580,800
                                                                                                  sharesChina Construction Bank-Fullgoal Tianbo Innovation Theme
                                                                                     17,600,000 RMB common sharesStock Securities Investment Fund
    CCB-Bosera Theme Industry Stock Investment Fund                                      17,000,000 RMB common shares
    National Social Security Fund-103 portfolio                                          15,354,520 RMB common shares
                                                                                                  Domestically foreign
    BBH BOS S/A FIDELITY FD - CHINA FOCUS FD                                             14,551,379
                                                                                                  shares
    NCI—Bonus—Individual Bonus -018L-FH002 Shen                                        12,339,394 RMB common shares
    National Social Security Fund-106 portfolio                                          11,240,075 RMB common shares
    BOCOM—Fullgoal Tianyi Value Security Investment Fund                                 9,263,442 RMB common sharesICBC- Jinshun Greatwall Selected Blue-Chip Stock Investment
                                                                                      6,999,974 RMB common sharesFund
                                                                 Among the top ten shareholders, the Company knew there has no
                                                                 associated relationship between Wuxi Industry Development
                                                                 Croup Co., Ltd., the first largest shareholder of the Company, andExpiation on associated relationship or consistent actors within other shareholders; and they do not belong to the consistentthe top 10 un-restrict shareholders and between top 10 actionist regulated by the Management Measure of Information
    un-restrict shareholders and top 10 shareholders                 Disclosure 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 top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreementdealing in reporting period□ Yes √ NoThe top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-backagreement dealing in reporting period.2. Controlling shareholder of the CompanyCorporation
                             Legal
      Controlling                              Date     Organization     Register
                         rep./person in                                                                 Main business
      shareholder                           established    code           capital
                         charge of unit
                                                                        Authorizing the state-owned assets operation
                                                                        within a certain areas, investment managementWuxi Industry
                                                             364937.924 of significant project,        investment and
    Development Group       Jiang Guoxiong 1995-10-05 13600265-4
                                                             146        development of manufacturing and services andCo., Ltd.
                                                                        venture capital in high-tech achievement, entrust
                                                                        enterprise and management
                                                                         无锡威孚高科技集团股份有限公司 2014 年年度报告全文
                   Industry Development Group will use capital as the linkage, industrial-based, and keep a firm grasp on the
                   venture capital and industrial integration, focused on the target of ―creating the investment and financing
                   platform for the industry growth, enhancing industry’s leading function, strengthen services for the
                   technology industry and reinforcing the operation function for industry capital‖, made great efforts toFuture development promote the construction in five aspects, constructed the Industry Group as a comprehensive state-owned
    strategy           holding corporation ultimately, which shows major influence and driving force of the economic
                   development in Wuxi and presents power in key fields also. Firstly, development and construction of the
                   major industry projects; secondly, construction of the science and technology industry service mechanism,
                   third, the building of industry capital operation function; fourthly, construction of the investment and
                   financing platform for industries and fifthly, the enterprise culture building.Operation result,
    financial status, cash   The Company’s operating is in good conditionflow etc.Equity of otherdomestic/foreignlisted company withshare controlling and Substantial shareholder of the Company—Industry Group is the controlling shareholder of Wuxi Taijishare participation by Industry Co., Ltd. (stock code: 600667)controllingshareholder inreporting periodChanges of controlling shareholder in reporting period
    □ Applicable    √ Not applicableNo changes of controlling shareholder for the Company in reporting period.3. Actual controller of the CompanyCorporation
                                                            Legal rep./person in      Date     Organizatio   Register    Main
                     Actual controller
                                                              charge of unit       established   n code       capital   businessState-owned Assets Supervision & AdministrationCommission of Wuxi Municipality of Jiangsu Province
    Future development strategy                                Not applicable
    Operation results, financial status and cash flow etc.     Not applicableEquity of other foreign/domestic listed company that
                                                           Not applicablecontrolled by actual controller in reporting periodChanges of actual controllers reporting period
    □ Applicable    √ Not applicableNo changes of actual controllers for the Company in reporting period.Property right and controlling relationship between the actual controller and the Company is as follow:
                                 State-owned Assets Supervision & Administration
                              Commission of Wuxi Municipality of Jiangsu Province
                                                                100%
                                         Wuxi Industry Development Croup Co., Ltd.
                                                              20%
                                            Weifu High-Technology Group Co., Ltd.
                                                                            无锡威孚高科技集团股份有限公司 2014 年年度报告全文Actual controller controlling the Company by entrust or other assets management□ Applicable √ Not applicable4. Particulars about other legal person shareholders with over 10% shares held√Applicable □Not applicable
    Corporate      Legal rep./person      Date       Organization     Register
                                                                                       Main business or management activity
    shareholders    in charge of unit   established      code           capital
                                                                                 Development, manufacture and sales of automotive
                                                                                 equipment and engine equipment; engaged in
                                                                                 electro-technical, electronic technology, machinery
    ROBERT                                                                           manufacturing and optical system as well as produce
                Heiko Carrie、                                    EUR 1,200
    BOSCH                                1886-11-15                                  iron, metal and plastic products and similar
                Bettina Holzwarth                                 million
    GMBH                                                                             commodity. The company engaged in vary trading
                                                                                 business concerned with its business scope and
                                                                                 established relevant company concerned with its
                                                                                 business scopeIV. Share holding increasing plan proposed or implemented in reporting period fromshareholder of the Company and its concerted action person
    □ Applicable    √ Not applicableAs far as the Company known, there are no shareholders of the Company and their concerted action people propose or implementoverweight in the Period.
                                                       无锡威孚高科技集团股份有限公司 2014 年年度报告全文
                                      Section VII. Preferred Stock
    □ Applicable   √ Not applicableThe Company had no preferred stock in the reporting.
                                                                       无锡威孚高科技集团股份有限公司 2014 年年度报告全文
                Section VIII. Particulars about Directors, Supervisors and Senior
                                                 Executives and EmployeesI. Changes of shares held by directors, supervisors and senior executives
                                                                                            Increasing Decreasing
                                                                                  Shares                             Shares
                                                           Start dated End date            shares held shares held
                                    Working                                       held at                            held at
                    Title                        Sex   Age of office of office                 in this    in this
    Name                               status                                     period-beg                         period-end
                                                              term      term                   period     period
                                                                                in (Share)                          (Share)
                                                                                              (Share)    (Share)
    Chen                              Currently in             2012-03-0 2015-03-0
             Chairman                            M     47                            4,753                              4,753
    Xuejun                              office                 7          7
    Wang     Vice Chairman &          Currently in               2012-03-0 2015-03-0
                                                 M     48                               781                              781
    Xiaodong GM                       office                     7         7
    Rudolf                            Currently in               2012-03-0 2015-03-0
             Vice Chairman                       M     57
    Maier                             office                     7         7
    Ge                                Currently in               2012-03-0 2015-03-0
         Director                                M     60                             38,202                          38,202
    Songping                          office                     7         7
    Hua                               Currently in               2012-03-0 2015-03-0
             Director                            F     50
    Wanrong                           office                     7         7
    Chen                              Currently in               2012-03-0 2015-03-0
             Director                            M     53
    Yudong                            office                     7         7
          Director, Deputy
          General Manager         Currently in               2012-03-0 2015-03-0
    Ou Jianbin                                       M     48
          and financing           office                     7         7
          Charger
          Independent             Currently in               2012-03-0 2015-03-0
    Du Fangci                                        M     70
          Director                office                     7         7
             Independent          Currently in               2012-03-0 2015-03-0
    Yu Xiaoli                                        F     51
             Director             office                     7         7
             Independent          Currently in               2012-03-0 2015-03-0
    Xing Min                                         M     60
             Director             office                     7         7
    Zhang    Independent              Currently in               2012-03-0 2015-03-0
                                                 M     50
    Hongfa   Director                 office                     7         7
         Chairman of the
    Shi                               Currently in               2012-03-0 2015-03-0
         Supervisory                             M     52                              2,673                           2,673
    Xingyuan                          office                     7         7
         Committee
    Gao                               Currently in               2012-03-0 2015-03-0
         Supervisor                              M     60                             15,445                          15,445
    Guoyuan                           office                     7         7
                                  Currently in               2012-03-0 2015-03-0
    Liu Jinjun Supervisor                            M     39
                                  office                     7         7
    Miu                               Currently in               2012-03-0 2015-03-0
             Deputy GM                           M     51
    Yuming                            office                     7         7
    Wang                              Currently in               2012-03-0 2015-03-0
             Deputy GM                           M     59
    Yawei                             office                     7         7
    Xu                                Currently in               2012-03-0 2015-03-0
             Deputy GM                           M     43                              3,000                           3,000
    Yunfeng                           office                     7         7
    Zhou                              Currently in               2012-03-0 2015-03-0
             Secretary of Board                  M     51                              3,565                           3,565
    Weixing                           office                     7         7
    Total                 --             --        --     --       --        --         68,419          0          0    68,419
                                                                          无锡威孚高科技集团股份有限公司 2014 年年度报告全文II. Post-holdingMajor working experience of directors, supervisors and senior executive at the present in latest five yearsMr. Chen Xuejun, born in May 1967, a university background and a senior economist. He worked for theCompany in July of 1986. He has served as chairman of 4th and 5th Session of supervisory committee, deputychairman of 6th Session of the Board and General Manager of the Company. Now he serves as Director of Boardof Industry Group, substantial shareholder of the Company and also is the Chairman of 7 th session of the Boardand secretary of Party Committee.Mr. Wang Xiaodong, born in November 1966, a university graduate, MBA and senior engineer. He worked in theCompany in 1989 and has served successively as Division Chief of Products Development Department of theCompany, deputy GM of Bosch Automotive Diesel System Co., Ltd. and supervisor of 6 th Session of SupervisoryCommittee of the Company. Now he serves as deputy chairman of 7 th session of the Board and GM of theCompany.Mr. Rudolf Maier, born in October 1957, a German citizenship with a doctor degree. He has served successivelyas chairman of commercial vehicle dept. diesel injection system, in German Bosch, chairman of German BoschDiesel System China, deputy chairman of Bosch Automobile Diesel and Director of 5 th and 6th Session of theBoard. Now he serves as executive deputy chairman of technology research of German Bosch Diesel System anddeputy Chairman of 7 th session of the Board.Mr. Ou Jianbin, born in June 1966, a senior college graduated and an accountant. He worked for the Company inJuly 1987, and served as Director and deputy GM of Weifu Jinning, Deputy GM and GM of Weifu Leader, andSupervisor of 5th session of Supervisory Committee. Now he serves as Director of 7th session of the Board, standingdeputy GM and CFO of the Company.Mr. Ge Songping, born in November 1954, a senior college graduated and a senior accountant. He has servedsuccessively as deputy GM of Industry Group, substantial shareholder of the Company and secretary of disciplinecommittee, Director of 5 th and 6th Session of the Board. Now he serves as vice researcher of Industry Group,substantial shareholder of the Company and Director of 7th session of the Board.Ms. Hua Wanrong, born in September 1964, graduate from University and a senior accountant. She has servedsuccessively as director of investment development dept. of Industry Group, substantial shareholder of theCompany; now she serves as director of financial management dept. of Industry Group and Director of 7 th sessionof the Board of the Company.Mr. Chen Yudong, born in September 1961, an America citizenship and a Doctor. He has served successively assenior deputy president of petrol system dept. of German Bosch, who in charge of business in mainland China,and also in charge of sales business of automobile products in China for German Bosch. Now he serves asPresident of Bosch (China) Investment Ltd. and Director of 7 th session of the Board of the Company.Mr. Du Fangci, born in November 1944 and graduate from University, a senior engineer. He has servedsuccessively as Division Chief of former Automobile Section of Machine Building Industry Ministry and DivisionChief of State Bureau of Machine Building Industry, independent director of 6th Session of the Board. Now heserves as Consultant of China Association of Automobile Manufactures and Independent Director of 7 th session ofthe Board of the Company.
                                                               无锡威孚高科技集团股份有限公司 2014 年年度报告全文Ms. Yu Xiaoli, born in January 1963, doctor from Zhejiang University and a professor. She serves as teachingassistant and professor/deputy professor in Zhejiang University since 1985; and served as independent director of6th Session of the Board. Now she serves as Director of the institute of Zhejiang University Power Machinery andVehicular Engineering Institute, Chairman of Zhejiang Bozong Automobile Technology Co., Ltd., Independent Directorof Yinlun, Independent Director of Wanliyang and Independent Director of 7th session of the Board of the Company.Mr. Xing Min, born in January 1954, graduate from University, a senior engineer. He has served successively asvice chief of Bureau of Retired Veteran Cadres of Machinery Dept,, secretary of Party Committee ofAdministration Division and deputy director, director of Labor Division, secretary of Party Committee of ChinaNational Heavy Machinery Corporation (CHMC), GM and secretary of Party Committee of China NationalMachine Tools Corporation (CNMTC). Now he serves as vice chairman and secret ary-general of China InternalCombustion Engine Industry Association (CICEIA), Independent Director of Jinan Qingqi, and Independent Directorof Yunyi Electric, Independent Director of First Tractor Company Limited, and Independent Director of 7th session ofthe Board of the Company.Mr. Zhang Hongfa, born in September 1964, graduate from University, a senior accountant. He has worked inJiangsu Institute of Certified Public Accountants since 1998. Now he serves as deputy secretary and standingdirector of Association, member of Expert Consultative Committee of Jiangsu Procuratorate, special auditor ofJiangsu Audit Office, vice director of professional consultant committee and director of inspection committee ofJiangsu Institute of CPA, Independent Director of Wiscom and Independent Director of 7th session of the Board ofthe Company.Mr. Shi Xingyua, born in May 1962, a postgraduate and senior engineer. He worked in the Company in July 1984. Hehas served successively as director of GM office, GM assistant and deputy GM of the Company as well as director of5th and 6th session of the Board, deputy secretary of party committee and chairman of labor union of the Company. Nowhe serves as chairman of supervisory committee of 7th session of the Board, deputy secretary of party committee andchairman of labor union of the Company.Mr. Gao Guoyuan, born in March 1954, a senior college graduated, master degree and senior engineer. He workedfor the Company in 1970. And has served successively as GM assistant and Director of 4th, 5th, and 6th Session ofthe Board and deputy GM of the Company. Now he serves as Supervisor of 7th session of Supervisory Committee.Mr. Liu Jinjun, born in September 1975, graduates from University, a MSIE and engineer. He worked in theCompany in August 1995. He has served successively as Manager of H&R administrative and technology salesmanager of Weifu Auto Diesel. Now he serves as director of H&R and Supervisor of 7th session of SupervisoryCommittee.Mr. Miao Yuming, born in April 1963, a university background, MBA and senior engineer. He worked in the Companyin August 1983, and successively served as /director of sales dept. of the Company, assistant GM and deputy GM of theCompany. Now he serves as deputy GM of the Company and deputy GM of Bosch Automobile Diesel.Mr. Wang Yawei, born in May 1955, postgraduate degree, chief senior engineer. He successively served as deputychief of production research institution of the Company, chief designer of technology center, chief engineer of theCompany and deputy GM as well as director of engineering technology institution. Now he serves as deputy GM anddirector of Engineering and Technology Research Institute of the Company.
                                                                            无锡威孚高科技集团股份有限公司 2014 年年度报告全文Mr. Xu Yunfeng, born in November 1971, graduate from University, a Master and engineer. He worked in theCompany in July 1994, and has successively served as vice director of product research institute of TechnologyCenter of the Company, Manager, assistant GM and GM of sales dept. of Weifu Automobile Diesel. Now heserves as deputy GM of the Company.Mr. Zhou Weixing, born in January 1963, graduate from University, a senior engineer. He worked in the Companyin 1985. He successively served as representative of security affairs, director of security office and secretary of the 5thand 6th Session of the Board. Now he serves as secretary of the Board of 7th session of the Board.Post-holding in shareholder’s unit√Applicable □Not applicable
                                                                                          Start dated End date Weather receiving
    Name                 Name of shareholder’s units        Position                          of office of office remuneration from
                                                                                             term       term   shareholder’s units
                                                         Executive vice president of
    Rudolf Maier     ROBERT BOSCH GMBH                       technology research of Diesel    2011-01-01             Yes
                                                         System
                 Wuxi Industry Development Group
    Ge Songping                                      Vice researcher                          2011-12-01             Yes
                 Co., Ltd.
                 Wuxi Industry Development Group Director of financial
    Hua Wanrong                                                                               2011-12-01             Yes
                 Co., Ltd.                       management dept.
    Chen Yudong      Bosch (China) Investment Ltd.           President                        2011-01-01             Yes
                 Bosch Automobile Diesel System
    Miu Yuming                                               Deputy GM                        2012-03-01             Yes
                 Co., LtdPost-holding in other unit√Applicable □Not applicable
                                                                                                                        Weather
                                                                                                                        receiving
                                                                                           Start dated of   End date of
    Name                            Name of other units                  Position                                           remuneration
                                                                                            office term     office term
                                                                                                                        from     other
                                                                                                                        units
                 Zhejiang University Power Machinery
    Yu Xiaoli                                                            Director             2000-01-01                    Yes
                 and Vehicular Engineering Institute
                 Zhejiang Asia-Pacific Mechanical & Electronic
    Yu Xiaoli                                                      Independent director 2013-05-26              2016-05-26 Yes
                 Co., Ltd.
    Yu Xiaoli        Zhejiang Yinlun Machinery Co., Ltd.                 Independent director 2011-07-21                    Yes
                 Zhejiang Bozong Automobile Technology Co.,
    Yu Xiaoli                                                   Chairman                      2008-04-01                    Yes
                 Ltd.
                                                            Vice chairman and
    Xing Min         CICEIA                                                                   2008-08-01                    Yes
                                                            secretary
    Xing Min         Jiangsu Yunyi Electric Co., Ltd.                    Independent director 2013-05-15        2016-05-14 Yes
    Xing Min         Hunan Tyen Machinery Co., Ltd.                      Independent director 2012-05-25        2015-05-24 Yes
    Xing Min         First Tractor Company Limited                       Independent director 2012-12-20        2015-12-19 Yes
                 Jiangsu Institute of Certified Public               Vice secretary and
    Zhang Hongfa                                                                              1998-06-01                    Yes
                 Accountants                                         standing director
    Zhang Hongfa Wiscom System Co., Ltd.                                 Independent director 2013-04-22        2016-04-21 YesExplanation onpost-holding in The aforesaid are the independent directors of the Companyother unit
                                                                           无锡威孚高科技集团股份有限公司 2014 年年度报告全文III. Remuneration for directors, supervisors and senior executivesDecision-making procedures, determination bases and actual payment of remunerations of directors, supervisors and seniormanagementDecision-making procedure: the remuneration and examination committee recommend the remuneration proposalin respect of directors, supervisors and senior management according to the ―Examining Methods of AnnualOperation Performance for Senior Executives‖ and ―Remuneration Management Methods for Senior Executives‖approved at general meeting based on the completion of annual major targets, and shall be submitted to the boardfor approval and implementation.Determination bases: ―Examining Methods of Annual Operation Performance for Senior Executives‖ and―Remuneration Management Methods for Senior Executives‖ approved at general meeting.Actual payment: the annual remuneration comprises of basic annual salary and performance -related remuneration.Basic annual salary is determined according to specific positions and performance -related remuneration is directlyrelated to economic benefits of the Company which is granted according to completion of each annual benefittarget.Remuneration for directors, supervisors and senior executives in reporting period
                                                                                                            In 10 thousand Yuan
                                                                                     Total         Total         Remuneration
                                                                                 remuneration  remuneration        actually
    Name                   Title           Sex      Age     Post-holding status
                                                                                 obtained from obtained from      obtained at
                                                                                 the Company shareholder’s unit  period-end
    Chen Xuejun      Chairman                    M        47     Currently in office             76.3                        76.3Wang
                 Vice Chairman, GM           M        48     Currently in office             72.5                        72.5Xiaodong
    Rudolf Maier     Vice Chairman               M        57     Currently in office
    Ge Songping      Director                    M        60     Currently in office
    Hua Wanrong      Director                    F        50     Currently in office
    Chen Yudong      Director                    M        53     Currently in office
                 Director, standing vice
    Ou Jianbin       GM and person in            M        48     Currently in office             60.8                        60.8
                 charge of finance
    Du Fangci        Independent director        M        70     Currently in office              8.3                         8.3
    Yu Xiaoli        Independent director        F        51     Currently in office              8.3                         8.3
    Xing Min         Independent director        M        60     Currently in office              8.3                         8.3
    Zhang Hongfa Independent director            M        50     Currently in office              8.3                         8.3
                 Chairman of
    Shi Xingyuan                                 M        52     Currently in office             60.8                        60.8
                 supervisory committee
    Gao Guoyuan      Supervisor                  M        60     Currently in office             60.8                        60.8
    Liu Jinjun       Supervisor                  M        39     Currently in office                  35                       35
    Miu Yuming       Deputy GM                   M        51     Currently in office
    Wang Yawei       Deputy GM                   M        59     Currently in office             60.8                        60.8
    Xu Yunfeng       Deputy GM                   M        43     Currently in office             60.8                        60.8
    Zhou Weixing Secretary of the Board          M        51     Currently in office                  33                       33
    Total                         --             --       --              --                     554                          554Delegated equity incentive for directors, supervisors and senior executives in reporting period□ Applicable √ Not applicable
                                                              无锡威孚高科技集团股份有限公司 2014 年年度报告全文IV. Post-leaving and dismissals for directors, supervisors and senior executivesNilV. Changes of core technology team or key technicians in reporting period (not includingdirectors, supervisors and senior executives)In reporting period, personnel, core technology team or key technicians (not including directors, supervisors andsenior executives) who affects a lot in core competition of the Company has no changes.VI. Particulars of workforce1. Ended as 31 December 2014, the Company owes 5,134 person on-posts while 248 people leaved, the Companyhas no retired employees to bear the cost.
    Composition:
    Staff composition                                       Education composition2. Remuneration policy and training program of employees:(1) Remuneration policy: perfect the ―Performance Management System‖ and ―Manageme nt System of SalaryWelfare‖ of the Group, standard and well-defined the competency for vary department and every staffs, organizedoperation mechanism and performance remuneration management mode, promote the implementation ofperformance and remuneration system in the Group.(2) Training program of employees: In 2014, by closely relying on the public training platform of the Group, theCompany develop all-round construction of the training system in every divisions and very functional lines,creating and offering more training development resouces and arrangement for majority of the employees in orderto contiously enhace the quality standards of the empoyees. Aiming at the requirement of operation developmentand staff’s career development, the Company eyes on training investment, enlarge and improve the quality modeldevelopment for employees, ―internal training‖ development in particular, to enhance the comprehensive trainingdevelopment standards proficiency. Employee training reached 14201 person-time in 2014 with 8 percent growthover that of 2013, of which, the basic, professional and skill training which need most urgently at present is 87percent. The annual training expenses amounting to RMB 3.13 million. Formulated the ―Management Regulationof the Major Development Training Projects for Employees‖, workmanship training management mechanism hasin the applied stage that comprehensively promoted.3. As at 31 December 2014, the labor force dispatched by the Company was 2704, with expenses of RMB 184.78million.
                                                                 无锡威孚高科技集团股份有限公司 2014 年年度报告全文
                                  Section IX. Corporate GovernanceI. Brief introduction of corporate governanceDuring the reporting period, the Company earnestly implemented the Basic Internal Control Standards forEnterprise and its guidance in strict accordance to the requirements of the Company Law, Securities Law, ListingRules of Shenzhen Stock Exchange as well as Guidance on Standard Operation of Listed Company on MainBoard, continued to improve and enhance legal person governance structure and internal control system, thus tostandardize its operation. There was no difference between the actual governance and requirements provided inrelevant documents of the CSRC.1. General Meeting: the Company convenes general meeting in a strict accordance to the Company Law, Rules ofGeneral Meeting of Listed Company, Listing Rules of Shenzhen Stock Exchange, the Articles of Association aswell as Working Procedures of General Meeting. Voting is made by spot meeting and network votes. Lawyers areinvited to attend the meetings and meeting minutes are well recorded. All the shareholders, especially minorityshareholders, are equally treated and fully exercise their rights.2. Relationship between the controlling shareholders and the Company: the Company is independent from itscontrolling shareholders in respect of personnel, assets and finance, with independent organs and businesses. Theboard, supervisory committee and operation management organ of the Company operate independently.Controlling shareholders don’t intervene in the Company’s decisions and operating activities, whether directly orindirectly, without content from general meeting, and don’t occupy the Company’s capital for any non -operationpurpose.3. The Board: the directors can earnestly perform their duties according to the Listing Rules of Shenzhen StockExchange, the Articles of Association and the Working Procedures of the Board. They are familiar with relatedlaws and rules, as well as the rights, obligations and duties for being a director. At present, the Board of theCompany comprises of 11 directors, among which, 4 are independent directors which accounts for over one thirdof the board members. Number and constitution of the board accord with relevant laws and rules.4. Performance of duties by independent directors: the independent directors can earnestly perform their duties,namely loyalty and diligence, according to the Articles of Association, the Working System of IndependentDirectors and Annual Work System of Independent Directors. They take active participation in meetings of theboard and general meeting. Prior to the participation, they actively acquire the information needed for makingdecisions, aiming to protect the interests of the Company and shareholders, especially the minority shareholders .Independent directors have no objection in relation to the relevant issues of the Company.5. The supervisory committee: the supervisors can perform their duties of supervision according to the CompanyLaw, the Articles of Association and Working Procedures of the Supervisory Committee. At present, thesupervisory committee of the Company comprises of 3 supervisors, among which, 2 are employee representativesupervisors which accounts for over one third of the committee members. Number and constitution of thecommittee accord with relevant laws and rules. For consideration of the entire shareholders, the supervisorycommittee earnestly performs their duties with legal working procedures and high efficient operation. They
                                                                    无锡威孚高科技集团股份有限公司 2014 年年度报告全文supervise the lawfulness of directors and senior management on their duty performance, pay constant attention toinformation disclosure, issue opinions on legal operation, finance, application of raised proceeds, and fairness ofrelated transaction, objectivity and truthfulness of the audit report issued by accounting firm, and issue auditopinion on periodic reports of the Company.6. Information Disclosure and investor relation management: the Company can disclose relevant information ontruthful, accurate, complete, prompt and fair basis in strict accordance to the Listing Rules of Shenzhen StockExchange, Guidance on Standardized Operation of Listed Company on Main Board of Shenzhen Stock Exchange,the Articles of Association, Information Disclosure Management System, Insider Information and InsiderManagement System, Accounting System in Respect of Material Mistake in Annual Report InformationDisclosure as well as Investor Relation Management System. Investor relation is well managed, with focus ongood communication between the Company and investors.7. Related transaction: independent directors issue independent opinions on occurred related transactions; thesupervisory committee makes inspection and supervision on occurred related transaction. The related transactionof the Company is fair and reasonable, with legal decision-making procedures and objective pricing bases and fairtransaction price, without harm to the interests of the Company and its shareholders, especially the minorityshareholders. All material transactions are entered into with contracts.8. Internal control: the Company further implements the Basic Internal Control Standards for Enterprise and itsguidance, and establishes internal control system in headquarter and certain important subsidiaries. Aiming toimprove the management, the Company optimized its working procedures, improved internal control system, andidentified and controlled operation risks. As for the detail of ―Self-evaluation report of internal control for year of2014‖, found in the information disclosure website Shenzhen Juchao Website (www.cninfo.com.cn) appointed byShenzhen Stock ExchangeIs there any difference between corporate governance and the requirements of the Company Law and relevant regulations of theCSRC□Yes √□ NoThere is no difference between corporate governance and the requirements of the Company Law and relevant regulations of theCSRCProgress of the special activity for corporate governance, establishment and implementation of insider information registrationmanagement systemDuring the reporting period, in strictly follow the new version of ―Registration and Administration of Insiders‖(released on Juchao Website (www.cninfo.com.cn) dated 16 February 2012) and relevant regulation of―Regulation of Formulate the Registration and Administration of Insiders for Listed Company‖ from CSRC, theCompany do a good job in aspect of inside information confidential as well as the registration and filing overinsiders. After inspection, No insiders of the Company made use of significant and sensitive information to tradestock of the Company before information was disclosed in year of 2014. Also there was not occurrence ofpunishment taken by regulatory authorities due to the implementation of insider registration management systemor on suspicion of insider trading. Directors, supervisor and senior executives of the Company are not trading thestock of the Company against the regulations.
                                                                            无锡威孚高科技集团股份有限公司 2014 年年度报告全文II. In the report period, the Company held annual shareholders’ general meeting andextraordinary shareholders’ general meeting1. Annual Shareholders’ General Meeting in the report period
    Session of                                                                                                    Date of    Index of
                  Date                             Name of meeting motion                        Situation
    meeting                                                                                                     disclosure disclosure
                          1. Report from the Board for year of 2013
                          2. Report from Supervisory Committee for year of 2013
                          3. Annual Report of 2013 and Summary
                          4. Financial Result Report for year of 2013
                          5. Profit Distribution Plan of 2013
                          6. Prediction of Total daily Related transaction for year of 2014                         (No.:
                          7. Engagement of audit firms for financial report of 2014                                 2014-019)
                          8. Engagement of audit firms for internal control of 2014         All have been           published
                                                                                                          2014-06-2
    In 2013        2014-06-20 9. Un-implementation of the Commitment of Share Merger            deliberated             on Juchao
                                                                                                          1
                          Reform Made by Largest Shareholder and Content Changes            and passed              Website(ww
                          Arrangement and Commitments in Management Incentive                                       w.cninfo.co
                          Mechanism for WFHT;                                                                       m.cn)
                          10. Implementation Method on Incentive Fund;
                          11. Assessment Method for the Annual Operation Performance of
                          Senior Executives;
                          12. Management Method on Remuneration of Senior Executives2. Extraordinary shareholders’ general meeting in the report periodNil3. Request for extraordinary general meeting by preferred stockholders whose voting rights restore□ Applicable √ Not applicableIII. Responsibility performance of independent directors in report period1. The attending of independent directors to Board meetings and shareholders’ general meeting
                                                   The attending of independent directors
    Name of           Times of Board meeting                        Times of         Times of               Whether absent the
                                                     Times of                                      Times of
    independent         supposed to attend in the                  attending by       entrusted              Meeting for the second
                                                     Presence                                      Absence
    director               report period                        communication        presence               time in a row or not
    Du Fangci                         6                       2            4                                              No
    Yu Xiaoli                         6                       2            4                                              No
    Xing Min                          6                                    4                 2                            No
    Zhang Hongfa                      6                       2            4                                              NoTimes attending shareholders’ general meeting
                                                                                                                                     1from independent directorsExplanation of absent the Board Meeting for the second time in a row2. Objection for relevant events from independent directorsWhether independent directors come up with objection about company’s relevant matters or not□ Yes √ NoIndependent directors has no objections for relevant events in reporting period3. Other explanation about responsibility performance of independent directors
                                                                       无锡威孚高科技集团股份有限公司 2014 年年度报告全文Whether the opinions from independent directors have been adopted or not√ Yes □ NoIndependent directors’ explanation on adoption or not adoption of relevant recommendations of the CompanyThe independent directors earnestly performed their duties endowed by relevant laws, regulations, the Articles ofAssociation and independent director system pursuant to the Company Law, Opinions on EstablishingIndependent Director System in Listed Company, the Articles of Association and relevant laws and regulations.They take active participation in meetings of the board and general meeting. Prior to the participation, theyactively acquire the information needed for making decisions. They considered each proposal in meetings andactively joined discussion and offered their recommendations. They issued independent opinions on significantissues. Diligent, loyal and responsible were their attitude when performing their duties, so as to fully exercise theirinfluences as independent directors. They protected the interests of the Company and shareholders. Independentdirectors have no objection in relation to the relevant issues of the Company.IV. Performance of subordinate committees of the Board in reporting period1. Two meetings of Audit committee of the Board, deliberated the followed: ―Financial Result Report of 2013‖,―Annual Report of 2013 and its Summary‖, ―Conclusion Report of auditing for year of 2013‖, ―Engagement ofaudit institute for financial report of 2014‖, ―Engagement of audit institute for internal control of the Company of2014‖ , ―Semi-Annual Report of 2014 and its Summary‖, and ―Specific Report on Raise Funds Deposit for FirstHalf Year of 2014 and Practical Usage‖ etc.;2. Two meeting of remuneration and appraisal committee of the Board, deliberate ―Remuneration evaluation andpayment for senior executive of 2013‖ and ―Work Reports on Implementation of Performance Assessment andRemuneration Method for Senior Executives‖3. One meeting of strategy committee of the Board, deliberate ―Operation target for year of 2014‖V. Works from Supervisory CommitteeWhether the Company has risks or not in reporting period that found in supervisory activity from supervisory committee□ Yes √ NoSupervisory committee has no objection about supervision events in reporting periodVI. Independence of the Company in aspect of business, personnel, assets, institute andfinance relative to its controlling shareholderDuring the reporting period, the Company continued to keep independent in business, personnel, asset, organ andfinance, with complete set of business system and ability to conduct independent operation.1. Business: the Company had independent production system, purchase and sale system and land use right.Industry property, trademark, non-patent technology and other intangible assets related to its production operationbusiness were all owned by the Company. It was totally independent from controlling shareholders in business,with independent and complete business and ability to conduct business independently.2. Personnel: the Company was independent in management of labor force, administration and salary. The generalmanager, deputy general manager, financial principal, marketing principal, secretary to the board and other seniormanagement only took positions in the Company and received remuneration from the Company, and took noposition in substantial shareholders. Directors and senior management of the Company were determined through
                                                              无锡威孚高科技集团股份有限公司 2014 年年度报告全文legal procedures; no controlling shareholder intervened in engagement and dismissal of personnel which shouldbe determined by the board and general meeting.3. Asset: there was clear property relation between the Company and substantial share holders. It had independentand complete production, supply and sales system. Industry property, trademark, non-patent technology and otherintangible assets were all owned by the Company.4. Organ: the Company had sound organ system and independent internal organs which were totally separatedwith controlling shareholders. There was no subordinate relation and normal operation can be promised. TheCompany set general meeting, the board and the supervisory committee and other decision-making andsupervision organs. The production operation and administrative management (including labor force, finance,technology, etc) were totally independent from controlling shareholders. The office organ and productionoperation place were separated from controlling shareholders, without joint operation.5. Finance: the Company set independent finance department, and established independent accounting calculationsystem and finance management system. It had independent bank account and paid tax independently.VII. Horizontal Competition□ Applicable √ Not applicableVIII. Appraisal and incentive mechanism for senior executivesEngagement, examination and incentives of senior management are made according to relevant provisions in theCompany Law and the Articles of Association. According to ―Assessment Method for the Annual OperationPerformance of Senior Executives‖ and ―Management Method on Remuneration of Senior Executives‖, theCompany determined the annual remuneration of senior management which comprised of basic annual salary andperformance-related remuneration. Basic annual salary was determined according to specific positions andperformance-related remuneration was directly related to economic benefits of the Company which was grantedaccording to completion of each annual benefit target. Till now, the Company has not implemented equityincentive measures.
                                                                 无锡威孚高科技集团股份有限公司 2014 年年度报告全文
                                     Section X. Internal controlI. Internal control (IC) constructionIn accordance with the ―Basic Norms of Internal Control for Enterprise‖ and matching guidelines as well as ot herrequirement from internal control supervision, combining with the IC system and evaluation methods,continuously and comprehensively promoting the construction of IC, the high-risk areas that with significantattentions including strategy management risk, market management risks, assets security risk, financial reportrisks, project investment and capital financing risk, information security risk, safe production risk and legitimacyrisk etc., formulate a self-evaluation of internal control and release procedure of the reports. Furthermore, engagedqualified accounting firms to exercise audit for the effective-ness of internal control regularly. The evaluationreport and audit report for internal control in every year are disclosed timely in line with relevant supervisionrequirement since the internal control construction implemented in 2012. In the reporting period, by means oforganized mechanism procedures, optimized the deficits and track corrective, as well as internal activity ofinternal audit, the Company promotes an upgrade in management and ability for the internal control. Under theprinciple of benefit maximization and possible to avoid risks, the internal control system of the Company arebeing improved continuously. Overall performance of the internal control system of the Company can be found in―Appraisal Report of Internal Control for year of 2014‖.II. Statement of the Board on responsibility of internal controlIn line with the regulation mechanism of enterprise’ internal control, Board of the Company has responsibility toestablished and improve its internal control and implemented internal control effectively, evaluate theeffectiveness and release the evaluation report of internal control strictly according to the facts. Supervisorycommittee kept eyes on the implementation and establishment of internal control from the Board. Managers areresponsible for organizing and leading the daily running of company internal control. Board of the Company,Supervisory Committee, Directors, Supervisors and Senior Executives guarantee that there are no any fictitiousstatements, misleading statements or important omissions carried in the report, and shall take all responsibilities,individual and/or joint, for the reality, accuracy and completion of the whole contents.The Company’s internal control aims at guarantee a legal operation management reasonably, assets safety, the realand completion of the financial report and relevant information, improve the business results and achieve thedevelopment strategy.Because of the inherent feature of internal control, reasonable assurance only can be provided for the realizationof the above mentioned targets. Furthermore, inappropriate internal control may be resulted by the changes ofconditions, or failure of controlling policy and procedures implementation, the validity of internal control thatcalculated according to evaluation results of internal control has a certain risks.III. Bases for construction of financial report internal controlThe Company carry out internal control evaluation in line with the regulation system of enterprise’s internal
                                                                              无锡威孚高科技集团股份有限公司 2014 年年度报告全文control and ―Basic Norms of Internal Control for Enterprise‖ jointly issued by five ministries of the State, and―Internal Control Guidelines for Listed Companies‖.IV. Self-evaluation report of internal control
                               Details of major defects in self-evaluation report that found in reporting periodNo major defect has been found in the report period according to the standard of defects in self-evaluation.Date of self-evaluation report of
                                         2015-04-23internal control disclosed (full-text)
    Index of self-evaluation report of       ‖Self-evaluation report of internal control for 2014‖, more details found in Juchao websiteinternal control disclosed(full-text) (www.cninfo.com.cn) appointed by Shenzhen Stock ExchangeV. Auditing report and authentication report of internal controlAuditing report of IC
                                       Auditing comments section for audit report of internal controlAudit institute considers that: according to relevant regulations and ―Basic Rules of Internal Control for Enterprises‖, WeifuHigh-Technology Co., Ltd., in all major aspects, keeps an efficiency of internal control of financial report dated 31 December 2014.Disclosure date of audit report of
                                         2015-04-23internal control (full-text)
    Index of audit report of internal        ‖Audit report of internal control for year of 2014‖, more details found in Juchao website
    control (full-text)                      (www.cninfo.com.cn) appointed by Shenzhen Stock ExchangeWhether modified audit opinions carried out for the audit report of internal control from CPA or not□Yes √□ NoWhether audit report of internal control, issued by CPA, is in agreement with self-evaluation report, issued by the Board√ Yes □ NoVI. Establishment and enforcement of Accountability Mechanism for Major Errors in AnnualReportThe ―accountability mechanism for major errors in annual report disclosure‖ was deliberated and approved on 20April 2010, relevant notice found in Juchao website (www.cninfo.com.cn). In reporting period, no majorcorrection for accounting errors, supplementation for major missing information and correction of performanceforecast been found.
                                                                    无锡威孚高科技集团股份有限公司 2014 年年度报告全文
                                     Section XI. Financial ReportI. Audit report
    Type of audit opinion                         Standard unqualified opinion
    Signing date of audit report                  2015-04-21
    Name of audit institute                       Jiangsu Gongzheng Tianye Certified Public Accountants Co., Ltd. (LLP)
    Document serial of auditreport                Su Gong W [2015]No.: A 679
    CPA’s name                                   Zhang Caibin, Zhu Youmin
                                                    Auditor’s Report
                                                                                      Su Gong W [2015]No.: A 679To all shareholders of Weifu High-Technology Group Co., Ltd.:We have audited the Companying consolidated and parent Company’s financial statements of WeifuHigh-Technology Group Co., Ltd. (―WFHT‖ for short), including balance sheet of 31 December 2014, and profitstatement for year of 2014, cash flow statement and statement on changes of owners’ equity for the year ended,and notes to the financial statements for the year ended.I. Management’s responsibility for the financial statementsManagement of the Company is responsible for prepare and present financial statement of the Company, which including: (1)Prepare financial statements with fair presentation in line with Accounting Standards for Business Enterprises; (2) Designing,executed and maintaining necessary internal control in order to prevent fundamental miscarrying in financial statement fromfraudulent or errors.II. Auditor's responsibilityOur responsibility is to express an audit opinion on these financial statements based on our audit. We performedour audit in accordance with Chinese Certified Public Accountants' Auditing Standards. Those standards requireus to comply with professional ethics, and to plan and perform our audit so as to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures of thefinancial statements. The selective audit procedures depend on auditor's judgment, including the evaluation of therisk of material misstatement of the consolidated financial statements due to frauds or errors. When evaluatingrisk, we consider internal control related to financial statements, in order to design auditing procedures. An auditalso includes assessing the appropriateness of the accounting policies adopted and the reasonableness of theaccounting estimates made by management, as well as evaluating the overall presentation of the financialstatements.
                                                              无锡威孚高科技集团股份有限公司 2014 年年度报告全文We believe that we have obtained sufficient and appropriate audit evidences to provide a basis for our auditopinion.III. Auditing opinionIn our opinion, in all material aspects, WFHT’s financial statements have been prepared in accordance with theAccounting Standards for Business Enterprise, and they fairly present the financial status of the consolidated andparent company’s as of December 31, 2014, and its operation results and cash flows for the year ended.
    Jiangsu Gongzheng Tianye CPA                          Chinese CPA        Zhang Caibin,
       (LLP)
            Wuxi China                                  Chinese CPA        Zhu Youmin
                                                                 21st April 2015
                                                                        无锡威孚高科技集团股份有限公司 2014 年年度报告全文II. Financial statementUnit in note of financial statement refers to CNY: RMB (Yuan)1. Consolidated balance sheetPrepared by Weifu High-Technology Group Co., Ltd
                                                            2014-12-31
                                                                                                                    In RMB
                                      Item                                      Closing balance        Opening balanceCurrent assets:
    Monetary funds                                                                2,360,027,208.92        2,447,555,672.40
    Settlement provisions
    Capital lent
    Financial liability measured by fair value and with variation reckonedinto current gains/losses
    Derivative financial liability
    Notes receivable                                                                993,552,743.48        1,090,280,233.40
    Accounts receivable                                                           1,206,105,236.56        1,132,835,466.09
    Accounts paid in advance                                                        101,014,401.60         174,401,410.49
    Insurance receivable
    Reinsurance receivables
    Contract reserve of reinsurance receivable
    Interest receivable                                                                4,016,280.99         51,438,634.58
    Dividend receivable                                                                 500,000.00          22,937,046.01
    Other receivables                                                                12,119,685.70          11,486,223.97
    Purchase restituted finance asset
    Inventories                                                                    1,111,669,480.16        986,790,491.70
    Divided into assets held for sale
    Non-current asset due within one year
    Other current assets                                                          1,812,883,996.48        1,580,056,398.02
    Total current assets                                                               7,601,889,033.89        7,497,781,576.66Non-current assets:
    Loans and payments on behalf
    Finance asset available for sales                                               844,536,400.00         487,949,400.00
    Held-to-maturity investment                                                                            400,000,000.00
                                                                        无锡威孚高科技集团股份有限公司 2014 年年度报告全文
    Long-term account receivable
    Long-term equity investment                                                   3,314,987,967.02       2,519,560,708.20
    Investment property                                                              21,418,942.40           3,424,363.44
    Fixed assets                                                                  1,349,745,789.17       1,471,037,804.88
    Construction in progress                                                        477,416,068.77         199,463,338.80
    Engineering material
    Disposal of fixed asset
    Productive biological asset
    Oil and gas asset
    Intangible assets                                                               363,863,195.29         360,284,868.85
    Expense on Research and Development
    Goodwill                                                                          1,784,086.79           1,784,086.79
    Long-term expenses to be apportioned                                             12,202,828.33          16,331,775.24
    Deferred income tax asset                                                       148,359,493.95         116,614,808.05
    Other non-current asset                                                         352,385,362.29
    Total non-current asset                                                            6,886,700,134.01       5,576,451,154.25
    Total assets                                                                      14,488,589,167.90      13,074,232,730.91Current liabilities:
    Short-term loans                                                                415,000,000.00         399,500,000.00
    Loan from central bank
    Absorbing deposit and interbank deposit
    Capital borrowed
    Financial liability measured by fair value and with variation reckonedinto current gains/losses
    Derivative financial liability
    Notes payable                                                                   488,556,684.85         383,418,397.65
    Accounts payable                                                              1,453,938,798.61       1,476,781,979.39
    Accounts received in advance                                                     43,783,927.30          42,297,015.90
    Selling financial asset of repurchase
    Commission charge and commission payable
    Wage payable                                                                    261,647,666.99         173,252,560.10
    Taxes payable                                                                    70,103,988.54          43,814,597.61
    Interest payable                                                                   749,561.12             996,716.67
    Dividend payable
                                                   无锡威孚高科技集团股份有限公司 2014 年年度报告全文
    Other accounts payable                                      62,266,107.58          87,324,894.86
    Reinsurance payables
    Insurance contract reserve
    Security trading of agency
    Security sales of agency
    Divided into liability held for sale
    Non-current liabilities due within 1 year
    Other current liabilities                                        10,706,310.23          26,314,544.23
    Total current liabilities                                     2,806,753,045.22       2,633,700,706.41Non-current liabilities:
    Long-term loans                                             60,000,000.00          60,000,000.00
    Bonds payable
        Including: preferred stock
                    Perpetual capital securities
    Long-term account payable                                   18,852,727.00          19,191,818.00
    Long-term wages payable                                     69,000,000.00         122,586,433.61
    Special accounts payable                                    18,265,082.11          25,655,817.40
    Projected liabilities
    Deferred income                                            228,792,442.75         195,506,040.61
    Deferred income tax liabilities                             23,815,411.40          19,938,394.40
    Other non-current liabilities
    Total non-current liabilities                                   418,725,663.26         442,878,504.02
    Total liabilities                                             3,225,478,708.48       3,076,579,210.43Owner’s equity:
    Share capital                                            1,020,200,992.00       1,020,200,992.00
    Other equity instrument
        Including: preferred stock
                    Perpetual capital securities
    Capital public reserve                                   3,635,684,413.04       3,630,042,689.57
    Less: Inventory shares
    Other comprehensive income                                 121,598,365.00          98,999,415.00
    Reasonable reserve                                            867,353.00            1,255,141.19
    Surplus public reserve                                     510,100,496.00         433,608,687.76
    Provision of general risk
                                                                        无锡威孚高科技集团股份有限公司 2014 年年度报告全文
    Retained profit                                                               5,570,583,069.92        4,416,658,298.29
    Total owner’s equity attributable to parent company                              10,859,034,688.96        9,600,765,223.81
    Minority interests                                                                   404,075,770.46         396,888,296.67
    Total owner’s equity                                                             11,263,110,459.42        9,997,653,520.48
    Total liabilities and owner’s equity                                             14,488,589,167.90       13,074,232,730.91Legal Representative: Chen XuejunPerson in charge of accounting works: Ou JianbinPerson in charge of accounting institute: Ou Jianbin2. Balance Sheet of Parent Company
                                                                                                                    In RMB
                                        Item                                    Closing balance        Opening balanceCurrent assets:
    Monetary funds                                                                1,263,715,541.56        1,485,894,410.54
    Financial liability measured by fair value and with variation reckonedinto current gains/losses
    Derivative financial liability
    Notes receivable                                                                225,640,382.60         348,205,626.83
    Accounts receivable                                                             565,769,317.89         665,090,625.52
    Account paid in advance                                                          51,338,729.85          85,580,666.96
    Interest receivable                                                                  33,287.67          45,000,000.00
    Dividends receivable                                                                500,000.00           21,925,117.50
    Other receivables                                                                  5,071,840.68           2,907,285.14
    Inventories                                                                     188,287,955.01         226,017,992.28
    Divided into assets held for sale
    Non-current assets maturing within one year
    Other current assets                                                          1,917,505,847.55        1,562,100,000.00
    Total current assets                                                               4,217,862,902.81        4,442,721,724.77Non-current assets:
    Available-for-sale financial assets                                             758,596,400.00         402,009,400.00
    Held-to-maturity investments                                                                           400,000,000.00
    Long-term receivables
    Long-term equity investments                                                  4,308,319,159.56        3,615,576,088.69
    Investment property
                                                                        无锡威孚高科技集团股份有限公司 2014 年年度报告全文
    Fixed assets                                                                    543,076,778.80         640,596,120.54
    Construction in progress                                                        361,110,943.40         136,613,517.22
    Project materials
    Disposal of fixed assets
    Productive biological assets
    Oil and natural gas assets
    Intangible assets                                                               205,291,338.85         198,885,843.05
    Research and development costs
    Goodwill
    Long-term deferred expenses
    Deferred income tax assets                                                       81,490,070.42          64,315,609.74
    Other non-current assets                                                        307,820,607.89
    Total non-current assets                                                           6,565,705,298.92       5,457,996,579.24
    Total assets                                                                      10,783,568,201.73       9,900,718,304.01Current liabilities:
    Short-term borrowings                                                           260,000,000.00         220,000,000.00
    Financial liability measured by fair value and with variation reckonedinto current gains/losses
    Derivative financial liability
    Notes payable                                                                   178,800,000.00         191,790,000.00
    Accounts payable                                                                486,151,165.89         596,257,017.04
    Accounts received in advance                                                      1,754,804.23          17,577,849.84
    Wage payable                                                                    139,244,128.74          60,727,176.41
    Taxes payable                                                                    29,078,723.63          38,260,172.61
    Interest payable                                                                   131,500.00              340,511.11
    Dividend payable
    Other accounts payable                                                          160,538,572.20         219,154,760.28
    Divided into liability held for sale
    Non-current liabilities due within 1 year
    Other current liabilities
    Total current liabilities                                                          1,255,698,894.69       1,344,107,487.29Non-current liabilities:
    Long-term loans
    Bonds payable
                                                   无锡威孚高科技集团股份有限公司 2014 年年度报告全文
        Including: preferred stock
                    Perpetual capital securities
    Long-term account payable
    Long-term wages payable                                     69,000,000.00         122,586,433.61
    Special accounts payable                                                             7,390,735.29
    Projected liabilities
    Deferred income                                            210,389,955.02         181,898,815.24
    Deferred income tax liabilities                             21,458,535.00          17,470,485.00
    Other non-current liabilities
    Total non-current liabilities                                   300,848,490.02         329,346,469.14
    Total liabilities                                             1,556,547,384.71       1,673,453,956.43Owners’ equity:
    Share capita                                             1,020,200,992.00       1,020,200,992.00
    Other equity instrument
        Including: preferred stock
                    Perpetual capital securities
    Capital public reserve                                   3,666,689,037.39       3,661,248,059.50
    Less: Inventory shares
    Other comprehensive income                                 121,598,365.00          98,999,415.00
    Reasonable reserve
    Surplus reserve                                            510,100,496.00         433,608,687.76
    Retained profit                                          3,908,431,926.63       3,013,207,193.32
    Total owner’s equity                                         9,227,020,817.02       8,227,264,347.58
    Total liabilities and owner’s equity                        10,783,568,201.73       9,900,718,304.013. Consolidated Profit Statement
                                                                                                  In RMB
                                         Item              Current Period           Last Period
    I. Total operating income                                     6,354,480,020.38       5,589,307,689.55
    Including: Operating income                                   6,354,480,020.38       5,589,307,689.55
    Interest income
    Insurance gained
    Commission charge and commission income
    II. Total operating cost                                      5,679,424,331.36       4,999,434,131.48
                                                                           无锡威孚高科技集团股份有限公司 2014 年年度报告全文
    Including: Operating cost                                                             4,740,201,728.63       4,169,807,309.66
    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                                                            33,417,172.98          32,458,458.22
    Sales expenses                                                                     174,919,036.22         207,152,852.24
    Administration expenses                                                            648,698,294.92         558,285,409.97
    Financial expenses                                                                 -24,803,283.07         -56,891,090.69
    Losses of devaluation of asset                                                     106,991,381.68          88,621,192.08
    Add: Changing income of fair value(Loss is listed with ―-‖)
    Investment income (Loss is listed with ―-‖)                                    1,042,446,193.00         642,493,295.01
    Including: Investment income on affiliated company and joint venture               881,943,278.13         549,177,316.88
    Exchange income (Loss is listed with ―-‖)
    III. Operating profit     (Loss is listed with ―-‖)                                 1,717,501,882.02       1,232,366,853.08
    Add: Non-operating income                                                          175,717,204.02          37,547,250.75
           Including: Disposal gains of non-current asset                                 1,266,871.19          17,140,286.06
    Less: Non-operating expense                                                        180,698,053.92          12,604,472.52
           Including: Disposal loss of non-current asset                                 17,546,837.25           4,013,576.76
    IV. Total Profit   (Loss is listed with ―-‖)                                        1,712,521,032.12       1,257,309,631.31
    Less: Income tax expense                                                           123,443,709.79         103,016,098.36
    V. Net profit (Net loss is listed with ―-‖)                                         1,589,077,322.33       1,154,293,532.95
    Net profit attributable to owner’s of parent company                             1,539,439,686.81       1,108,221,450.83
    Minority shareholders’ gains and losses                                               49,637,635.52          46,072,082.12
    VI. Net after-tax of other comprehensive income                                          22,598,950.00          42,490,055.00
    Net after-tax of other comprehensive income attributable to owners of
                                                                                         22,598,950.00          42,490,055.00parent company
      (I) Other comprehensive income items which will not be reclassifiedsubsequently to profit of loss
              1. Changes as a result of re-measurement of net defined benefitplan liability or asset
              2. Share of the other comprehensive income of the investee
                                                                            无锡威孚高科技集团股份有限公司 2014 年年度报告全文accounted for using equity method which will not be reclassifiedsubsequently to profit and loss
    (II) Other comprehensive income items which will be reclassified
                                                                                          22,598,950.00             42,490,055.00subsequently to profit or loss
             1. Share of the other comprehensive income of the investeeaccounted for using equity method which will be reclassified subsequentlyto profit or loss
             2. Gains or losses arising from changes in fair value of
                                                                                          22,598,950.00             42,490,055.00available-for-sale financial assets
             3. Gains or losses arising from reclassification ofheld-to-maturity investment as available-for-sale financial assets
             4. The effect hedging portion of gains or losses arising fromcash flow hedging instruments
             5. Translation differences arising on translation of foreigncurrency financial statements
             6. Other
    Net after-tax of other comprehensive income attributable to minorityshareholders
    VII. Total comprehensive income                                                        1,611,676,272.33          1,196,783,587.95
    Total comprehensive income attributable to owners of parent
                                                                                       1,562,038,636.81          1,150,711,505.83Company
    Total comprehensive income attributable to minority shareholders                     49,637,635.52             46,072,082.12VIII. Earnings per share:
      (i) Basic earnings per share                                                                 1.51                       1.09
      (ii) Diluted earnings per share                                                              1.51                       1.09Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, andrealized 0 Yuan at last period for combined partyLegal Representative: Chen XuejunPerson in charge of accounting works: Ou JianbinPerson in charge of accounting institute: Ou Jianbin
                                                                           无锡威孚高科技集团股份有限公司 2014 年年度报告全文4. Profit Statement of Parent Company
                                                                                                                          In RMB
                                          Item                                     Current Period           Last Period
    I. Operating income                                                                   2,267,337,970.05       2,462,065,611.26
    Less: Operating cost                                                             1,788,597,830.15       1,983,561,133.99
           Operating tax and extras                                                      10,824,678.36          12,447,486.53
           Sales expenses                                                                87,020,762.44         103,626,329.78
           Administration expenses                                                      245,613,703.29         207,405,705.89
           Financial expenses                                                           -17,935,026.12          -51,090,607.00
           Losses of devaluation of asset                                                 9,077,420.90          43,991,263.31
    Add: Changing income of fair value(Loss is listed with ―-‖)
          Investment income (Loss is listed with ―-‖)                               1,182,615,271.18         807,499,619.20
          Including: Investment income on affiliated company and joint
                                                                                        808,997,384.50         495,674,234.35venture
    II. Operating profit      (Loss is listed with ―-‖)                                 1,326,753,872.21         969,623,917.96
    Add: Non-operating income                                                             166,909,810.39            6,257,329.56
           Including: Disposal gains of non-current asset                                   524,140.09            1,684,449.09
    Less: Non-operating expense                                                        175,935,248.16            4,500,884.37
           Including: Disposal loss of non-current asset                                 16,437,002.04            1,482,742.03
    III. Total Profit   (Loss is listed with ―-‖)                                       1,317,728,434.44         971,380,363.15
    Less: Income tax expense                                                            39,951,595.29          35,963,460.53
    IV. Net profit (Net loss is listed with ―-‖)                                        1,277,776,839.15         935,416,902.62
    V. Net after-tax of other comprehensive income                                           22,598,950.00          42,490,055.00
       (I) Other comprehensive income items which will not be reclassifiedsubsequently to profit of loss
              1. Changes as a result of re-measurement of net defined benefitplan liability or asset
              2. Share of the other comprehensive income of the investeeaccounted for using equity method which will not be reclassifiedsubsequently to profit and loss
       (II) Other comprehensive income items which will be reclassified
                                                                                         22,598,950.00          42,490,055.00subsequently to profit or loss
              1. Share of the other comprehensive income of the investeeaccounted for using equity method which will be reclassified subsequentlyto profit or loss
              2. Gains or losses arising from changes in fair value of                   22,598,950.00          42,490,055.00
                                                                            无锡威孚高科技集团股份有限公司 2014 年年度报告全文available-for-sale financial assets
             3. Gains or losses arising from reclassification ofheld-to-maturity investment as available-for-sale financial assets
             4. The effect hedging portion of gains or losses arising fromcash flow hedging instruments
             5. Translation differences arising on translation of foreigncurrency financial statements
             6. Other
    VI. Total comprehensive income                                                         1,300,375,789.15         977,906,957.62VII. Earnings per share:
      (i) Basic earnings per share
      (ii) Diluted earnings per share5. Consolidated Cash Flow Statement
                                                                                                                           In RMB
                                      Item                                          Current Period           Last PeriodI. Cash flows arising from operating activities:
    Cash received from selling commodities and providing labor services               7,216,910,847.87       6,172,087,848.64
    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
    Net increase of insured savings and investment
    Net increase of amount from disposal financial assets that measuredby fair value and with variation reckoned into current gains/losses
    Cash received from interest, commission charge and commission
    Net increase of capital borrowed
    Net increase of returned business capital
    Write-back of tax received                                                           44,981,125.56          36,344,057.52
    Other cash received concerning operating activities                                 157,375,158.71         175,739,109.03
    Subtotal of cash inflow arising from operating activities                              7,419,267,132.14       6,384,171,015.19
    Cash paid for purchasing commodities and receiving labor service                  4,857,961,523.04       3,998,317,410.40
    Net increase of customer loans and advances
    Net increase of deposits in central bank and interbank
                                                                         无锡威孚高科技集团股份有限公司 2014 年年度报告全文
    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                                               778,604,528.63         708,768,497.02
    Taxes paid                                                                       478,485,171.36         434,633,292.96
    Other cash paid concerning operating activities                                  414,316,254.32         438,493,691.68
    Subtotal of cash outflow arising from operating activities                          6,529,367,477.35       5,580,212,892.06
    Net cash flows arising from operating activities                                      889,899,654.79         803,958,123.13II. Cash flows arising from investing activities:
    Cash received from recovering investment                                       3,426,900,000.00       1,747,750,000.00
    Cash received from investment income                                             279,606,162.41         215,105,271.93
    Net cash received from disposal of fixed, intangible and other
                                                                                        4,549,779.50          27,964,427.20long-term assets
    Net cash received from disposal of subsidiaries and other units
    Other cash received concerning investing activities                              154,360,800.00          46,086,392.49
    Subtotal of cash inflow from investing activities                                   3,865,416,741.91       2,036,906,091.62
    Cash paid for purchasing fixed, intangible and other long-term assets            802,479,615.28         443,371,774.96
    Cash paid for investment                                                       3,731,802,670.00       2,648,881,501.00
    Net increase of mortgaged loans
    Net cash received from subsidiaries and other units obtained
    Other cash paid concerning investing activities                                  124,616,501.56           1,950,855.71
    Subtotal of cash outflow from investing activities                                  4,658,898,786.84       3,094,204,131.67
    Net cash flows arising from investing activities                                     -793,482,044.93       -1,057,298,040.05III. 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           9,120,000.00investment by subsidiaries
    Cash received from loans                                                       1,011,000,000.00         879,000,000.00
    Cash received from issuing bonds
    Other cash received concerning financing activities                                    4,117.89
    Subtotal of cash inflow from financing activities                                   1,014,051,439.96         888,120,000.00
    Cash paid for settling debts                                                     995,500,000.00         517,500,000.00
    Cash paid for dividend and profit distributing or interest paying                362,953,796.86         261,005,069.72
    Including: Dividend and profit of minority shareholder paid by
                                                                                       33,440,573.30          38,175,305.87subsidiaries
                                                                          无锡威孚高科技集团股份有限公司 2014 年年度报告全文
       Other cash paid concerning financing activities                                  12,527,056.47             339,091.00
    Subtotal of cash outflow from financing activities                                   1,370,980,853.33         778,844,160.72
    Net cash flows arising from financing activities                                      -356,929,413.37         109,275,839.28IV. Influence on cash and cash equivalents due to fluctuation in exchangerate
    V. Net increase of cash and cash equivalents                                          -260,511,803.51        -144,064,077.64
       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                          2,028,227,816.93       2,288,739,620.446. Cash Flow Statement of Parent Company
                                                                                                                         In RMB
                                     Item                                         Current Period           Last PeriodI. Cash flows arising from operating activities:
       Cash received from selling commodities and providing labor services           2,851,550,581.61       2,843,747,396.06
       Write-back of tax received
       Other cash received concerning operating activities                             123,098,275.94         295,709,406.43
    Subtotal of cash inflow arising from operating activities                            2,974,648,857.55       3,139,456,802.49
       Cash paid for purchasing commodities and receiving labor service              1,942,621,551.16       1,944,119,560.86
       Cash paid to/for staff and workers                                              304,551,173.70         290,926,971.54
       Taxes paid                                                                      167,536,666.25         153,325,573.83
       Other cash paid concerning operating activities                                 231,017,098.12         181,221,420.94
    Subtotal of cash outflow arising from operating activities                           2,645,726,489.23       2,569,593,527.17
    Net cash flows arising from operating activities                                       328,922,368.32         569,863,275.32II. Cash flows arising from investing activities:
       Cash received from recovering investment                                      3,389,400,000.00       1,747,750,000.00
       Cash received from investment income                                            490,919,343.29         443,108,613.13
       Net cash received from disposal of fixed, intangible and other
                                                                                           917,402.86            2,378,444.83long-term assets
       Net cash received from disposal of subsidiaries and other units                  28,984,413.12
       Other cash received concerning investing activities                             148,230,000.00            7,900,000.00
    Subtotal of cash inflow from investing activities                                    4,058,451,159.27       2,201,137,057.96
       Cash paid for purchasing fixed, intangible and other long-term assets           586,811,102.09         214,059,196.20
       Cash paid for investment                                                      3,661,469,578.60       2,665,163,188.00
       Net cash received from subsidiaries and other units
                                                                           无锡威孚高科技集团股份有限公司 2014 年年度报告全文
       Other cash paid concerning investing activities                                  124,616,501.56            509,264.71
    Subtotal of cash outflow from investing activities                                    4,372,897,182.25       2,879,731,648.91
    Net cash flows arising from investing activities                                       -314,446,022.98        -678,594,590.95III. Cash flows arising from financing activities
       Cash received from absorbing investment
       Cash received from loans                                                         660,000,000.00         440,000,000.00
       Cash received from issuing bonds
       Other cash received concerning financing activities                                    4,117.89
    Subtotal of cash inflow from financing activities                                       660,004,117.89         440,000,000.00
       Cash paid for settling debts                                                     620,000,000.00         220,000,000.00
       Cash paid for dividend and profit distributing or interest paying                317,447,029.25         213,403,709.61
       Other cash paid concerning financing activities
    Subtotal of cash outflow from financing activities                                      937,447,029.25         433,403,709.61
    Net cash flows arising from financing activities                                       -277,442,911.36           6,596,290.39IV. Influence on cash and cash equivalents due to fluctuation in exchangerate
    V. Net increase of cash and cash equivalents                                           -262,966,566.02        -102,135,025.24
       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                           1,159,462,935.71       1,422,429,501.73
                                                                                                                                   无锡威孚高科技集团股份有限公司 2014 年年度报告全文7. Statement of Changes in Owners’ Equity (Consolidated)This Period
                                                                                                                                                                                  In RMB
                                                                                                  This Period
                                                              Owners’ equity attributable to parent company
                                           Other                            Les
                                     equity instrument                      s:                                                  Provi
    Item                                    Perpet                          Inv Other                                           sion                      Minority     Total     owners’
                                                                                                  Reasonable
                 Share capital      Preferr ual         Capital reserve     ent comprehensive                   Surplus reserve of      Retained profit   interests    equity
                                                    Oth                                           reserve
                                    ed      capital                         ory income                                          gener
                                                    er
                                    stock securit                           shar                                                al risk
                                            ies                             esI. Balance at
    the end of       1,020,200,992.00                        3,630,042,689.57         98,999,415.00    1,255,141.19 433,608,687.76          4,416,658,298.29 396,888,296.67 9,997,653,520.48the last year
       Add:Changes ofaccountingpolicyErrorcorrection of
    the       lastperiodEnterprisecombineunder thesamecontrolOtherII. Balance
    at       the 1,020,200,992.00                            3,630,042,689.57         98,999,415.00    1,255,141.19 433,608,687.76          4,416,658,298.29 396,888,296.67 9,997,653,520.48beginning of
                                                                              无锡威孚高科技集团股份有限公司 2014 年年度报告全文this yearIII. Increase/Decrease in
    this      year
                 5,641,723.47   22,598,950.00   -387,788.19   76,491,808.24       1,153,924,771.63    7,187,473.79 1,265,456,938.94(Decrease islisted with―-‖)
    (i)    Total
    comprehensi                     22,598,950.00                                     1,539,439,686.81   49,637,635.52 1,611,676,272.33ve income
    (ii)Owners’
    devoted and      5,641,723.47                                                                         -9,090,457.00     -3,448,733.53decreasedcapital1.Commonshares
                                                                                                      3,047,322.07       3,047,322.07invested byshareholders
    2.    Capitalinvested byholders ofother equityinstruments3. Amountreckonedinto ownersequity withshare-basedpayment
    4. Other         5,641,723.47                                                                        -12,137,779.07     -6,496,055.60(III) Profit
                                                              76,491,808.24       -385,514,915.18 -33,440,573.30      -342,463,680.24distribution1.
    Withdrawal                                                    76,491,808.24         -76,491,808.24of surplus
                无锡威孚高科技集团股份有限公司 2014 年年度报告全文reserves2.Withdrawalof generalriskprovisions3.Distributionfor owners
                    -306,060,297.60 -33,440,573.30   -339,500,870.90(orshareholders)
    4. Other              -2,962,809.34                    -2,962,809.34(IV)Carryingforwardinternalowners’equity
    1.    Capitalreservesconversed tocapital(sharecapital)2. Surplusreservesconversed tocapital(sharecapital)3.Remedying
    loss    withsurplusreserve
                                                                                                                                   无锡威孚高科技集团股份有限公司 2014 年年度报告全文4. Other(V)
    Reasonable                                                                                        -387,788.19                                                  80,868.57            -306,919.62reserve1.Withdrawal
                                                                                                17,248,551.90                                              2,225,365.33        19,473,917.23in the reportperiod2. Usage in
    the    report                                                                                   17,636,340.09                                              2,144,496.76        19,780,836.85period(VI)OthersIV. Balanceat the end of
               1,020,200,992.00                        3,635,684,413.04        121,598,365.00      867,353.00 510,100,496.00            5,570,583,069.92 404,075,770.46 11,263,110,459.42
    the     reportperiodLast Period
                                                                                                                                                                                        In RMB
                                                                                                 Last Period
                                                           Owners’ equity attributable to the parent Company
                                         Other                            Les
                                                                                                                                Prov
                                   equity instrument                      s:
    Item                                                                                                                       ision
                                        Perpetu                           Inv Other                                                                     Minority           Total       owners’
                                                                                                Reasonable                      of
                 Share capital    Prefe al            Capital reserve     ent comprehensive                     Surplus reserve       Retained profit   interests          equity
                                                 Othe                                           reserve                         gene
                                  rred capital                            ory income
                                                 r                                                                              ral
                                  stock securiti                          shar
                                                                                                                                risk
                                        es                                esI. Balance at
    the end of the   680,133,995.00                        3,633,184,669.52         56,509,360.00                    340,066,997.50        3,946,085,733.22 305,003,245.53 8,960,984,000.77last year
         Add:
    Changes    ofaccountingpolicy
                                                                                                      无锡威孚高科技集团股份有限公司 2014 年年度报告全文Errorcorrection ofthe last periodEnterprisecombine
    under      thesame controlOtherII. Balance at
    the beginning     680,133,995.00   3,633,184,669.52   56,509,360.00                  340,066,997.50       3,946,085,733.22 305,003,245.53 8,960,984,000.77of this yearIII. Increase/Decrease in
    this      year
                  340,066,997.00      -3,141,979.95   42,490,055.00   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)     Total
    comprehensiv                                          42,490,055.00                                       1,108,221,450.83   46,072,082.12 1,196,783,587.95e income(ii) Owners’devoted and
                                      -3,141,979.95                                                                          73,309,536.01    70,167,556.06decreasedcapital1.Commonshares
                                                                                                                             73,309,536.01    73,309,536.01invested byshareholders
    2.      Capitalinvested by
    holders      ofother equityinstruments
    3.    Amount
                                                                    无锡威孚高科技集团股份有限公司 2014 年年度报告全文reckoned intoowners equitywithshare-basedpayment
    4 Other                             -3,141,979.95                                                            -3,141,979.95
    (III)     Profit
                   340,066,997.00                   93,541,690.26       -637,648,885.76   -27,705,305.87   -231,745,504.37distribution1. Withdrawal
    of     surplus                                      93,541,690.26        -93,541,690.26reserves2. Withdrawalof general riskprovisions3.Distribution
                                                                        -204,040,198.50   -27,705,305.87   -231,745,504.37for owners (orshareholders)
    4. Other           340,066,997.00                                       -340,066,997.00(IV) Carryingforwardinternalowners’equity
    1.      Capitalreservesconversed tocapital (sharecapital)
    2.     Surplusreservesconversed tocapital (sharecapital)3. Remedying
    loss      with
                                                                                                                                无锡威孚高科技集团股份有限公司 2014 年年度报告全文surplusreserve4. Other(V)
    Reasonable                                                                                       1,255,141.19                                              208,738.88      1,463,880.07reserve1. Withdrawal
    in the report                                                                                  17,366,734.77                                             2,119,500.71     19,486,235.48period2. Usage in
    the    report                                                                                   16,111,593.58                                            1,910,761.83     18,022,355.41period(VI)OthersIV. Balance at
    the end of the 1,020,200,992.00                       3,630,042,689.57         98,999,415.00     1,255,141.19 433,608,687.76         4,416,658,298.29 396,888,296.67 9,997,653,520.48report period8. Statement of Changes in Owners’ Equity (Parent Company)This Period
                                                                                                                                                                                 In RMB
                                                                                                       This Period
                                                            Other
                                                                                               Less:
                                                      equity instrument                               Other
              Item                                                                             Invent                   Reasonable                                       Total owners’
                                  Share capital    Preferr Perpetual      Capital reserve             comprehensive                  Surplus reserve   Retained profit
                                                                     Othe                      ory                      reserve                                             equity
                                                   ed      capital                                    income
                                                                     r                         shares
                                                   stock securitiesI. Balance at the end of the
                                1,020,200,992.00                           3,661,248,059.50             98,999,415.00                 433,608,687.76 3,013,207,193.32 8,227,264,347.58last year
          Add: Changes ofaccounting policy
        Error correction of thelast period
           Other
    II. Balance at the beginning of 1,020,200,992.00                           3,661,248,059.50             98,999,415.00                 433,608,687.76 3,013,207,193.32 8,227,264,347.58
                                                                        无锡威孚高科技集团股份有限公司 2014 年年度报告全文this yearIII. Increase/ Decrease in this
    year (Decrease is listed with     5,440,977.89   22,598,950.00                  76,491,808.24    895,224,733.31    999,756,469.44―-‖)
    (i) Total comprehensive
                                                 22,598,950.00                                  1,277,776,839.15 1,300,375,789.15income(ii) Owners’ devoted and
                                  5,440,977.89                                                                       5,440,977.89decreased capital1.Common shares invested byshareholders2. Capital invested by holdersof other equity instruments3. Amount reckoned into
    owners       equity withshare-based payment
    4. Other                          5,440,977.89                                                                       5,440,977.89
    (III) Profit distribution                                                       76,491,808.24 -382,552,105.84 -306,060,297.601. Withdrawal of surplus
                                                                                76,491,808.24     -76,491,808.24reserves2. Distribution for owners (or
                                                                                                -306,060,297.60 -306,060,297.60shareholders)3. Other(IV) Carrying forward internalowners’ equity1. Capital reserves conversedto capital (share capital)2. Surplus reserves conversedto capital (share capital)3. Remedying loss withsurplus reserve4. Other(V) Reasonable reserve1. Withdrawal in the report
                                                                 4,362,065.61                                        4,362,065.61period
    2. Usage in the report period                                    4,362,065.61                                        4,362,065.61
                                                                                                                                无锡威孚高科技集团股份有限公司 2014 年年度报告全文(VI)OthersIV. Balance at the end of the
                              1,020,200,992.00                             3,666,689,037.39            121,598,365.00                 510,100,496.00 3,908,431,926.63 9,227,020,817.02report periodLast period
                                                                                                                                                                                  In RMB
                                                                                                       Last period
                                                            Other
                                                                                               Less:
                                                      equity instrument                               Other
              Item                                                                             Invent                   Reasonable                                       Total owners’
                                  Share capital    Preferr Perpetual      Capital reserve             comprehensive                  Surplus reserve   Retained profit
                                                                     Othe                      ory                      reserve                                             equity
                                                   ed      capital                                    income
                                                                     r                         shares
                                                   stock securitiesI. Balance at the end of the
                                  680,133,995.00                            3,661,248,059.50           56,509,360.00                  340,066,997.50 2,715,439,176.46 7,453,397,588.46last year
          Add: Changes ofaccounting policy
        Error correction of thelast period
          OtherII. Balance at the beginning of
                                  680,133,995.00                            3,661,248,059.50           56,509,360.00                  340,066,997.50 2,715,439,176.46 7,453,397,588.46this yearIII. Increase/ Decrease in this
    year (Decrease is listed with     340,066,997.00                                                       42,490,055.00                   93,541,690.26   297,768,016.86    773,866,759.12―-‖)(i) Total comprehensive
                                                                                                       42,490,055.00                                   935,416,902.62    977,906,957.62income(ii) Owners’ devoted anddecreased capital1.Common shares invested byshareholders2. Capital invested by holdersof other equity instruments3. Amount reckoned into
    owners        equity      withshare-based payment
                                                                                            无锡威孚高科技集团股份有限公司 2014 年年度报告全文4. Other
    (III) Profit distribution        340,066,997.00                                                      93,541,690.26 -637,648,885.76     -204,040,198.501. Withdrawal of surplus
                                                                                                     93,541,690.26    -93,541,690.26reserves2. Distribution for owners (or
                                                                                                                     -204,040,198.50   -204,040,198.50shareholders)
    3. Other                         340,066,997.00                                                                      -340,066,997.00(IV) Carrying forward internalowners’ equity1. Capital reserves conversedto capital (share capital)2. Surplus reserves conversedto capital (share capital)3. Remedying loss withsurplus reserve4. Other(V) Reasonable reserve1. Withdrawal in the report
                                                                                     4,032,088.99                                         4,032,088.99period
    2. Usage in the report period                                                        4,032,088.99                                         4,032,088.99(VI)OthersIV. Balance at the end of the
                              1,020,200,992.00    3,661,248,059.50   98,999,415.00                  433,608,687.76 3,013,207,193.32 8,227,264,347.58report period
                                                                无锡威孚高科技集团股份有限公司 2014 年年度报告全文III .Basic information of the Company1. Historical origin of the CompanyBy the approval of STGS (1992) No. 130 issued by Jiangsu Economic Restructuring Committee, WeifuHigh-Technology Group Co., Ltd. (hereinafter referred to ―the Company‖ or ―Company‖) was established as acompany of limited liability with funds raised from targeted sources, and registered at Wuxi Administration forIndustry & Commerce in October 1992. The original share capital of the Company totaled RMB 115.4355 million,including state-owned share capital amounting to RMB 92.4355 million, public corporate share capital amountingto RMB 8 million and inner employee share capital amounting to RMB 15 million.Between year of 1994 and 1995, the Company was restructured and became a holding subsidiary of Wuxi WeifuGroup Co., Ltd (hereinafter referred to as ―Weifu Group‖).By the approval of Jiangsu ERC and Shenzhen Securities Administration Office in August 1995, the Companyissued 68 million special ordinary shares (B-share) with value of RMB 1.00 for each, and the total value of thoseshares amounted to RMB 68 million. After the issuance, the Company’s total share capital increased to RMB183.4355 million.By the approval of CSRC in June 1998, the Company issued 120 million RMB ordinary shares (A-share) atShenzhen Stock Exchange through on-line pricing and issuing. After the issuance, the total share capital of theCompany amounted to RMB 303.4355 million.In the middle of 1999, deliberated and approved by the Board and Shareholders’ General Meeting, the Companyimplemented the plan of granting 3 bonus shares for each 10 shares. After that, the total share capital of theCompany amounted to RMB 394.46615 million, of which state-owned shares amounted to RMB 120.16615million, public corporate shares RMB 10.4 million, foreign-funded shares (B-share) RMB 88.40 million, RMBordinary shares (A-share) RMB 156 million and inner employee shares RMB 19.5 million.In the year 2000, by the approval of the CSRC and based upon the total share capital of 303.4355 million sharesafter the issuance of A-share in June 1998, the Company allotted 3 shares for each 10 shares, with a price of RMB10 for each allotted share. Actually 41.9 million shares was allotted, and the total share capital after the allotmentincreased to RMB 436.36615 million, of which state-owned corporate shares amounted to RMB 121.56615million, public corporate shares RMB 10.4 million, foreign-funded shares (B-share) RMB 88.4 million and RMBordinary shares (A-share) RMB 216 million.In April 2005, Board of Directors of the Company has examined and approved 2004 Profit Pre-distribution Plan,and examined and approved by 2004 Shareholders’ General Meeting , the Company distributed 3 shares for each10 shares to the whole shareholders totaling to 130,909,845 shares in 2005.According to the Share Merger Reform Scheme of the Company that passed by related shareholders’ meeting ofShare Merger Reform and SGZF [2006] No.61 Reply on Questions about State-owned Equity Management inShare Merger Reform of Weifu High-Technology Co., Ltd. issued by State-owned Assets Supervision &Administration Commission of Jiangsu Province, the Weifu Group etc. 8 non-circulating shareholders arrangedpricing with granting 1.7 shares for each 10 shares to circulating A-share shareholders (totally granted 47,736,000shares), so as to realize the originally non-circulating shares can be traded on market when satisfied certainconditions, the scheme has been implemented on April 5, 2006.On 27 May 2009, Weifu Group satisfied the consideration arrangement by dispatching 0.5 shares for each 10shares based on the number of circulating A shares as prior to Share Merger Reform, according to the aforesaidShare Merger Reform, with an aggregate of 14,039,979 shares dispatched. Subsequent to implementation ofdispatch of consideration shares, Weifu Group then held 100,021,999 shares of the Company, representing17.63% of the total share capital of the Company.Pursuant to the document (XGZQ(2009)No.46) about ―Approval for Merger of Wuxi Weifu Group Co., Ltd. byWuxi Industry Development Group Co., Ltd.‖ issued by the State-owned Assets Supervision and AdministrationCommission of Wuxi City Government, Wuxi Industry Development Group Co., Ltd. (hereinafter referred to asWuxi Industry Group) acquired Weifu Group. After the merger, Weifu Group was then revoked, and its assets andcredits & debts were transferred to be under the name of Wuxi Industry Group. Accordingly, Wuxi IndustryGroup became the first largest shareholder of the Company since then.
                                                                      无锡威孚高科技集团股份有限公司 2014 年年度报告全文In accordance with the resolutions of shareholders' meeting and provisions of amended constitution, and approvedby [2012] No. 109 document of China Securities Regulatory Commission, in Feb., the Company issued RMBordinary shares (A-share) of 112,858,000 shares to Wuxi Industry Groups and overseas strategic investor,ROBERT BOSCH GMBH (hereinafter referred to as Germany BOSCH), face value was RMB 1 Yuan per share,added registered capital of RMB112,858,000 Yuan , and the registered capital after change was RMB680,133,995 Yuan. Wuxi Industry Group is the first majority shareholder of the Company, and Germany BOSCHis the second majority shareholder of the Company.In March 2013, the profit distribution replan for year of 2012 was deliberated and approved by the Board, and alsopassed in Annual General Meeting 2012 of the Company in May 2013. On basis of total share capital 680,133,995shares, distribute 5-share for every 10 shares held by whole shareholders, 340,066,997 shares in total aredistributed. Total share captial of the Company amounting RMB 1,020,200,992 up to 31 December 2013.2. Registered place, organization structure and head office of the CompanyRegistered place and head office of the Company: Wuxi, JiangsuThe Company sets up Shareholders’ General Meeting, the Board of Directors and the Supe rvisory Committee.The Company sets up Administration Department, Engineering Technology Research Institution, HumanResources Department, Office of the Board, Risk Management Department, Information Systems Department,Market & Strategy Plan Department, Party-masses Security Department, Finance Control Department, ProjectPurchase Department, MS Business Segment, AC Business Segment, and subsidiaries such as Wuxi Weifu LeaderCatalytic Converter Co., Ltd. (referred to as Weifu Leader), Nanjing Weifu Jinning Co., Ltd. (referred to as WeifuJinning), and Wuxi Weifu Automotive Diesel System Co., Ltd. (referred to as Weifu Diesel System).3. Business nature and major operation activities of the CompanyOperation scope of parent company: manufacture of engine fuel oil system products, fuel oil system testers andequipments; sales of energy-oriented machinery, hardware & electric materials, chemical products and rawmaterials (other than chemical dangerous). Auto spare parts, autos (other than autos under-9 seats); repair ofengine, technological development and consultancy service of machinery industry; import and export business inrespect of diversified commodities and technologies (other than those commodities and technologies limited orforbidden by the State for import and export) by self-operation and works as agent for such businessMajor subsidiaries respectively activate in production and sales of engine accessories, auto spare parts, mufflers,and purifiers.4. Relevant party offering approval reporting of financial statements and date thereofFinancial statements of the Company were approved by the Board of Directors for reporting dated 21 April2015.5.Scope of consolidate financial statement
                     Subsidiary                     Shareholding Proportion of Registered Business scope Statement
                                                               ratio (%)  votes (%) capital (in 10                  consolidate
                                                                                      thousand                        (Y/N)
                                                                                        Yuan)
    Nanjing Weifu Jinning Co., Ltd. (referred to as ―Weifu             80.00       80.00  34,628.70 Internal-combustio
    Jinning‖)                                                                                           n engine and       Y
                                                                                                      accessories
    Wuxi Weifu Leader Catalytic Converter Co., Ltd. (referred to        94.81       94.81   50,259.63     Purifier and
                                                                                                                        Y
    as ―Weifu Leader‖)                                                                                    muffler
    Weifu Mashan Pump Glib Co., Ltd. (referred to as ―Weifu           100.00      100.00       4,500 Internal-combustio
    Mashan‖)                                                                                            n engine and       Y
                                                                                                      accessories
    Wuxi Weifu Chang’an Co., Ltd. (referred to as ―Weifu             100.00      100.00       6,000 Internal-combustio
    Chang’an‖)                                                                                         n engine and       Y
                                                                                                      accessories
    Jiangsu Weifu Nano Technology Co., Ltd. (referred to as             80.00       80.00       3,000     Nanometer      [Note
    ―Weifu Nano‖)                                                                                         material       1]
                                                                        无锡威孚高科技集团股份有限公司 2014 年年度报告全文
    Wuxi Weifu Automotive Diesel System Co., Ltd. (referred to           100.00        100.00        30,000 Internal-combustio
    as ―Weifu Diesel System‖)                                                                                n engine and            Y
                                                                                                            accessories
    Wuxi Weifu International Trade Co. Ltd. (referred to as              100.00        100.00         3,000 International trade
                                                                                                                                   Y―Weifu International Trade‖)
    Wuxi Weifu ITM Supercharging Technique Co., Ltd.                     100.00        100.00        16,000 Internal-combustio
    (referred to as ―Weifu ITM ‖)                                                                          n engine and       Y
                                                                                                          accessories
    Wuxi Weifu Schmidt Power System Spare Parts Co., Ltd.                  66.00         66.00      4,800 Internal-combustio
    (referred to as ―Weifu Schmidt‖)                                                                       n engine and       Y
                                                                                                          accessories
    Ningbo Weifu Tianli Supercharging Technique Co., Ltd.                  51.00         51.00     10,469 Internal-combustio
    (referred to as ―Weifu Tianli‖)                                                                        n engine and       Y
                                                                                                          accessories
    Chaoyang Weifu Jialin Machinery Manufacture Co., Ltd.                  51.00         51.00        800 Internal-combustio
    (referred to as ―Weifu Jialin ‖)                                                                                       [Note
                                                                                                         n engine and
                                                                                                          accessories      2]
    Anhui Weifu Tianshi Machinery Co., Ltd. (referred to as                52.00         52.00      1,000 Internal-combustio
    ―Weifu Tianshi‖)                                                                                       n engine and       Y
                                                                                                          accessories
    Kunming Xitong Machinery Co., Ltd. (referred to as                     70.00         70.00        400 Internal-combustio
    ―Kunming Xitong ‖)                                                                                     n engine and       Y
                                                                                                          accessories
    Wuxi Weifu-Autocam Fine Machinery Co. Ltd. (referred to                51.00         51.00   USD1,510      Auto parts
                                                                                                                            Yas ―Weifu Autocam‖)[Note 1]Weifu Nano: cancel in February 2014, the profit statement and cash flow statement from period-begin to date of thecancelled included in consolidated statement for the Period;[Note 2] Weifu Jialin: cancel in April 2014, the profit statement and cash flow statement from period-begin to date of the cancelledincluded in consolidated statement for the PeriodIV. Basis of preparation of financial statements1. Preparation baseThe financial statement were stated in compliance with Accounting Standard for Business Enterprises –BasicNorms issued by Ministry of Finance, the specific 41 accounting rules revised and issued dated 15 February 2006and later, the Application Instruments of Accounting Standards and interpretation on Accounting standards andother relevant regulations (together as ―Accounting Standards for Business Enterprise‖), as well as theCompilation Rules for Information Disclosure by Companies Offering Securities to the Public No.15 – GeneralProvision of Financial Report (Amended in 2014) issued by CSRC in respect of the actual transactions andproceedings, on a basis of ongoing operation.In line with relevant regulations of Accounting Standards of Business Enterprise, accounting of the Company inon accrual basis. Except for certain financial instruments, the financial statement measured on historical cost.Assets have impairment been found, corresponding depreciation reserves shall accural according to relevantrelues.2. Going concernThe Company comprehensively assessed the available information, there are no obvious factors that imapctsustainable operation ability of the Company within 12 months since end of the reporting periodV. Major Accounting Policies and EstimationSpecific accounting policies and estimation attention:The Company and its subsidiaries are mainly engaged in the manufature and sales of engine fuel oil system
                                                                 无锡威孚高科技集团股份有限公司 2014 年年度报告全文products, Auto spare parts, mufflers and purifiers etc., in line with the real operational characteristics and relevantaccounting standards, many specific accounting policies and estimation have been formulated for the transactionsand events with revenue recognized concerned. As for the explanation on major accounting judgment andestimation, found more in 29 .Other ―major accounting judgment and estimation‖1. Statement on observation of Accounting Standard for Business EnterprisesFinancial statements prepared by the Company were in accordance with requirements of Accounting Standard forBusiness Enterprises, which truly and completely reflected the financial information of the Company dated 31December 2014, such as financial position, operation achievements and cash flow for the year of 2014.2. Accounting periodAccounting period of the Company consist of annual and mid-term, mid-term refers to the reporting period shorterthan one annual accounting year. The company adopts Gregorian calendar as accounting pe riod, namely form each1 January to 31 December.3. Business cyclesNormal business cycle is the period from purchasing assets used for process by the Company to the cash and cashequivalent achieved. The Company’s normal business cycle was one-year (12 months)4. Recording currencyThe Company’s reporting currency is the RMB Yuan.5. Accounting Treatment Method for Business CombinationsBusiness combination is the transaction or events that two or two above independent enterprises combined as areporting entity. Business combination including enterprise combined under the same control and businesscombined under different control.(1) The business combination under the same controlEnterprise combination under the same control is the enterprise who take part in the combination are have thesame ultimate controller or under the same controller, the control is not temporary. The assets and liabilityacquired by combining party are measured by book value of the combined party on combination date. Bal ance ofnet assets’s book value acquired by combining party and combine consideration paid (or total book value of theshares issued), shall adjusted capital reserve (share premium); if the capital reserves (share premium) is notenough for deducted, adjusted for retained earnings. Vary directly expenses occurred for enterprise combination,the combining party shall reckoned into current gains/losses while occurring. Combination day is the date whencombining party obtained controlling rights from the combined party.(2) Combine not under the same controlA business combination not involving entities under common control is a business combination in which all of thecombining entities are not ultimately controlled by the same party or parties both before and after the combination.As a purchaser, fair value of the assets (equity of acquiree held before the date of purchasing included) forpurchasing controlling right from the actuiree, the liability occurred or undertake on purchasing date less the fairvalue of identifiable net assets of the acuquiree obtained in combination, recognized as goodwill if the results ispositive; if the number is negative, the acquirer shall firstly review the measurement of the fair value of theidentifiable assets obtained, liabilities incurred and contingent liabilities incurred, as well as the combination costs.after that, if the combination costs are still lower than the fair value of the identifiable net assets obtained, theacquirer shall recognize the difference as the profit or loss in the current period. Other directlry expenses cost forcombination shall be reckoned into current gains/losses. Difference of the fair value of assets paid and its bookvalues, reckoned into current gains/losses. On purchasing date, the identifiable assets, liability or contigency ofthe acquiree obtained by the Company recognized by fair value, that required identification conditions;Acquisition date refers to the date on which the acquirer effectively obtains control of the acquiree.
                                                                无锡威孚高科技集团股份有限公司 2014 年年度报告全文6. Preparation method for consolidated financial statement(1) Recognition principle of consolidated scopeOn basis of the financial statement of the parent company and owned subsidiaries, preparted consolidatedstatement in line with relvevant information. The scope of consolidation of consolidated financial statements isascertained on the basis of effective control. Once certain elements involved in the above definition of controlchange due to changes of relevant facts or circumstances, the Company will make separate assessment.(2) Basis of controlControl is the right to govern an investee so as to obtain variable return through participating in the investee’srelevant activities and the ability to affect such return by use of the aforesaid right over the investee. Relevantactivites refers to the activites have major influence on return of the investee’s.(3) Consolidation processSubsidiaries are consolidated from the date on which the company obtains their actual control, and aredeconsolidated from the date that such control ceases. All significant inter-group balances, investment,transactions and unrealized profits are eliminated in the consolidated financial statements. For subsidiaries beingdisposed, the operating results and cash flows prior to the date of disposal are included in the consolidated incomestatement and consolidated cash flow statement; for subsidiaries disposed during the period, the opening balancesof the consolidated balance sheet would not be restated. For subsidiaries acquired from a business combinationnot under common control, their operating results and cash flows subsequent to the acquisition date are includedin the consolidated income statement and consolidated cash flow statement, and the opening balances andcomparative figures of the consolidated balance sheet would not be restated. For subsidiaries acquired from abusiness combination under common control, their operating results and cash flows from the date ofcommencement of the accounting period in which the combination occurred to the date of combination areincluded in the consolidated income statement and consolidated cash flow statement, and the comparative figuresof the consolidated balance sheet would be restated.In preparing the consolidated financial statements, where the accounting policies or the accounting periods areinconsistent between the company and subsidiaries, the financial statements of subsidiaries are adjusted inaccordance with the accounting policies and accounting period of the company.Concerning the subsidiary obtained under combination with different control, adjusted several financial statementof the subsidiary based on the fair value of recognizable net assets on purchased day while financial statementconsolidation; concerning the subsidiary obtained under combination with same control, considered current statusof being control by ultimate controller for consolidation while financial statement consolidation.The unrealized gains and losses from the internal transactions occurred in the assets the Company sold to thesubsidiaries fully offset "the net profit attributable to the owners of the parent company". The unrealized gains andlosses from the internal transactions occurred in the assets the subsidiaries sold to the Company are distributed andoffset between "the net profit attributable to the owners of the parent company" and "minority interest" accordingto the distribution ratio of the Company to the subsidiary. The unrealized gains and losses from the internaltransactions occurred in the assets sold among the subsidiaries are distributed and offset between "the net profitattributable to the owners of the parent company" and "minority interest" according to the distribution ratio of theCompany to the subsidiary of the seller.The share of the subsidiary’s ownership interest not attributable to the Company is listed as ―minority interest‖item under the ownership interest in the consolidated balance sheet. The share of the subsidiary’s current profit orloss attributable to the minority interests is listed as "minority interest" item under the net profit item in theconsolidated income statement. The share of the subsidiary’s current consolidated income attributable to theminority interests is listed as the ―total consolidated income attributable to the minority shareholders‖ item underthe total consolidated income item in the consolidated income statement. If there are minority shareholders, addthe "minority interests" item in the consolidated statement of change in equity to reflect the changes of theminority interests. If the losses of the current period shared by a subsidiary’s minority shareholders exceed theshare that the minority shareholders hold in the subsidiary ownership interest in the beginning of the period, thebalance still charges against the minority interests.
                                                               无锡威孚高科技集团股份有限公司 2014 年年度报告全文When the control over a subsidiary is ceased due to disposal of a portion of an interest in a subsidiary, the fairvalue of the remaining equity interest is re-measured on the date when the control ceased. The difference betweenthe sum of the consideration received from disposal of equity interest and the fair value of the remaining equityinterest, less the net assets attributable to the company since the acquisition date, is recognized as the investmentincome from the loss of control. Other comprehensive income relating to original equity investment insubsidiaries shall be treated on the same basis as if the relevant assets or liabilities were disposed of by theacquiree directly when the control is lost, namely be transferred to current investment income other than therelevant part of the movement arising from re-measuring net liabilities or net assets under defined benefit schemeby the original subsidiary. Subsequent measurement of the remaining equity interests shall be in accordance withrelevant accounting standards such as ―Accounting Standards for business Enterprises 2 – Long-term EquityInvestments‖ or ―Accounting Standards for business Enterprises 22 – Financial Instruments Recognition andMeasurement‖.The company shall determine whether loss of control arising from disposal in a series of transactions should beregarded as a bundle of transactions. When the economic effects and terms and conditions of the disposaltransactions met one or more of the following situations, the transactions shall normally be accounted for as abundle of transactions:①The transactions are entered into after considering the mutual consequences of each individual transaction;② The transactions need to be considered as a whole in order to achieve a deal in commercial sense;③The occurrence of an individual transaction depends on the occurrence of one or more individual transactions inthe series;④ The result of an individual transaction is not economical, but it would be economical after taking into accountof other transactions in the series. When the transactions are not regarded as a bundle of transactions, theindividual transactions shall be accounted as ―disposal of a portion of an interest in a subsidiary which does notlead to loss of control‖ and ―disposal of a portion of an interest in a subsidiary which lead to loss of control‖.When the transactions are regarded as a bundle of transactions, the transactions shall be accounted as a singledisposal transaction; however, the difference between the consideration received from disposal and the share ofnet assets disposed in each individual transactions before loss of control shall be recognized as othercomprehensive income, and reclassified as profit or loss arising from the loss of control when control is lost.7. Joint arrangement classification and accounting treatment for joint operationsIn accordance with the Company’s rights and obligation under a joint arrangement, the Company classifies jointarrangements into: joint ventures and joint operations.(1) Recognize the assets held solely by the Company, and recognize assets held jointly by the Company inappropriation to the share of the Company;(2) Recognize the obligations assumed solely by the Company, and recognize obligations assumed jointly by theCompany in appropriation to the share of the Company;(3) recognize revenue from disposal of the share of joint operations of the Company;(4) recognize fees solely occurred by Company;(5) recognize fees from joint operations in appropriation to the share of the Company.8. Determining standards for cash and cash equivalentCash refers to stock cash, savings available for paid at any time; cash and cash equivalent refers to the cash heldby the Company with short terms(expired within 3 months since purchased), and liquid and easy to transfer asknown amount and investment with minor variation in risks.9. Foreign currency business and conversionThe occurred foreign currency transactions are converted into the recording currency in accordance with themiddle rate of the market exchange rate published by the People's Bank of China on the transaction date. Thereinto,the occurred foreign currency exchange or transactions involved in the foreign currency exchange are converted inaccordance with the actual exchange rate in the transactions.At the balance sheet date, the account balance of the foreign currency monetary assets and liabilities is converted
                                                               无锡威孚高科技集团股份有限公司 2014 年年度报告全文into the recording currency amount in accordance with the middle rate of the market exchange rate published bythe People's Bank of China on the transaction date. The balance between the recording currency amount convertedaccording to exchange rate at the balance sheet date and the original recording currency amount is disposed as theexchange gains or losses. Thereinto, the exchange gains or losses occurred in the foreign currency loans related tothe purchase and construction of fixed assets are disposed according to the principle of capitalization of borrowingcosts; the exchange gains and losses occurred during the start-up are included in the start-up costs; the rest isincluded in the current financial expenses.At the balance sheet date, the foreign currency non-monetary items measured with the historical costs are convertedin accordance with the middle rate of the market exchange rate published by the People's Bank of China on thetransaction date without changing its original recording currency amount; the foreign currency non-monetary itemsmeasured with the fair value are converted in accordance with the middle rate of the market exchange ratepublished by the People's Bank of China on the fair value date, and the generated exchange gains and losses areincluded in the current profits and losses as the gains and losses from changes in fair value.The following displays the methods for translating financial statements involving foreign operations into thestatements in RMB: The asset and liability items in the balance sheets for overseas operations are translated at thespot exchange rates on the balance sheet date. Among the owners’ equity items, the items other than―undistributed profits‖ are translated at the spot exchange rates of the transaction dates. The income and expenseitems in the income statements of overseas operations are translated at the average exchange rates of thetransaction dates. The exchange difference arising from the above mentioned translation are recognized in othercomprehensive income and is shown separately under owner’ equity in the balance sheet; such exchangedifference will be reclassified to profit or loss in current year when the foreign operation is disposed according tothe proportion of disposal.The cash flows of overseas operations are translated at the average exchange rates on the dates of the cash flows.The effect of exchange rate changes on cash is presented separately in the cash flow statement.10. Financial instrumentFinancial instrument is the contract that taken shape of the financial asses for an enteprises and of the financialliability or equity instrument for other units.(1) Classification and measurment on financial assets and financial liabilityIn terms of investment purposes and economic natures, the Company divides its financial assets into financialassets( with its variation of fair value reckoned into current gains/losses), financial assets available for sale,account receivables and held-to-maturity investments, among which, transactional financial asset is measured atfair value and movement of its fair value is recorded in current gains and losses; financial asset available for saleis measured at fair value and movement of its fair value is recorded in owners’ equity; account receivables andheld-to-maturity investments are measured at amortized cost.In terms of economic nature, the Company divides its financial liabilities into two groups, namely financialliabilities at fair value through gains and losses and other financial liabilities at amortized cost.(2) Determination of fair values for financial assets and financial liabilitiesThe fair value refers to the price that will be received when selling an asset or the price to be paid to transfer aliability in an orderly transaction between market participants on the date of measurement. Financial instrumentsexist in an active market. Fair value is determined based on the quoted price in such market. An active marketrefers to where pricing is easily and regularly obtained from exchanges, brokers, industrial organizations and pricefixing service organizations, representing the actual price of a market transaction that takes place in a fair deal.While financial instruments do not exist in an active market, the fair value is determined using valuationtechniques. Valuation technologies include reference to be familiar with situation and prices reached in recentmarket transactions entered into by both willing parties, reference to present fair values of similar other financialinstruments, cash flow discounting method and option pricing models.As for the equty investment of the investee held by the Company, which has no controlling rights, commoncontrol or significant influence (that is under the major influence), has no quota in an active market and the fairvalue can not be measure reasonably, than divided into financial assets available for sale and measured by cost.(3) Recognition basis and measurement for transfer of financial assetsThat the Company grants or delivers financial assets to party other than the issuer of such financial assets equals
                                                                    无锡威孚高科技集团股份有限公司 2014 年年度报告全文transfer of financial assets. Financial assets transferred could be the entire or part of such financial assets. Twoforms are listed as follows:①Transfer of right for collecting cash flow of financial assets to another party;②Transfer financial assets to another party, while the aforementioned right is retained, with obligation of payingsuch cash flow to final collectorIn the even that the Company has transferred almost all risks and remunerations arising from ownership of all orpart financial assets to another party, accordingly, recognition for such entire or part financial assets shall beceased. Gains and losses are determined by the received consideration less the carrying value of the transferredfinancial assets. Meanwhile, the original accumulated gains or losses of financial assets recognized in the owners’equity shall transferred to gains and losses; when all risks and remunerations attached to ownership are retained,recognition for such entire or part financial assets shall continue, and the consideration received shall be viewed asfinancial liabilities.As for the financial assets which the Company has neither transferred nor retained all risks and remunerationsattached to ownership of such financial assets, while control upon such financial assets still exists, recognitionshall be conducted in light of the degree of its continuous involvement in the transferred financial assets.Accordingly, relevant liabilities shall be recognized.(4) Recognition for termination of financial assets and liabilityUpon satisfaction of one of the following condition, financial assets will immediately experience discontinuedrecognition:①Right entitled by contract in respect of collection of cash flow from such financial asset terminates.②Such financial assets have been transferred and meet discontinued recognition condition for financial assets asregulated by Accounting Standard for Enterprise No.23-Transfer of Financial Assets.Only when present obligations under financial liability have been released entirely or partly, could ceaserecognition of such financial liability or part thereof.(5) Impairment of fianncial assetsThe Company conducts inspection on carrying values of financial assets, except for transactional financial assets,as at balance sheet date. If there is objective evidence indicating that impairment has happened to financial assets,impairment reserve then shall be provided. Financial asset with great amount in single item is subject to separateimpairment test. In case of any objective evidence indicating that impairment has happened to such financial asset,impairment loss shall be recognized and recorded in current gains and losses. As for the financial assets with nogreat amount in single item and those which prove to be not impaired after separate test, the Company willconduct impairment test on basis of credit portfolio which is determined in light of customers’ credit records andhistorical bad debts, so as to recognize impairment loss.Objective evidence indicating impairment happens to financial assets means the proceedings meeting the threecharacteristics: actually occurred subsequent to initial recognition of such financial assets, bring influence over theestimated future cash flow of such financial assets, and such influence could be reliably measured by theCompany.The followings are included in objective evidences indicating impairment happens to financial assets:①Serious financial difficulty happens to issuer or debtor;② Breach of terms of contract by debtor, such as breach or overdue in repaying interest or principal;③Creditor makes concession for debtors who experience financial trouble in light of consideration for economyor laws;④Debtor is very likely to experience bankrupt or financial reorganization;⑤ Financial assets are not able to be traded in active market since material financial difficulty happens to issuer;⑥ It is unable to judge whether cash flow from certain asset in a group of financial assets has decreased, while itis finally found that the estimated future cash flow of such financial asset has actually decreased since its initialrecognition and the decrease can be reliably measured by reference to the general valuation based on open data.For example, payment capacity of debtor of such financial assets portfolio gradually worsens, or unemployment incountry or region where the debtor locates risen, price of guaranty falls greatly in the place where it locate, and theindustry in which it belongs to is unpromising;⑦Material negative changes happen to technologies, markets, economy or law environment in which debtoroperates, which leads to that equity instrument investor is not likely to be able to recover investment cost;⑧Fair value of equity instrument investment experiences severe or non-temporary falling;
                                                                      无锡威孚高科技集团股份有限公司 2014 年年度报告全文⑨ Other objective evidence indicating impairment happens to financial assets.In the event of impairment in financial asset at amortized cost, impairment loss is calculated based on thedifference between carrying value and present value of estimated future cash flow discounted at effective interestrate.After impairment loss is recognized for financial asset at amortized cost, if there is objective evidence indicatingvalue of such financial asset has recovered, which is objectively related to proceedings occurred after recognitionof such loss, the original impairment loss shall be reversed and recorded in current gains and losses. However, thecarrying value subsequent to such reversal shall not exceed the amortized cost of such financial asset as at thereversal date on assumption that such impairment loss had not been provided.Impairment of available-for-sale financial assets: in the event that decline in fair value of the available-for-saleequity instrument is regarded as ―severe decline‖ or ―non-temporary decline‖ on the basis of comprehensiverelated factors, it indicates that there is impairment loss of the available-for-sale equity instrument. In particular,―severe decline‖ refers to fair value is lower than 50% of the cost price and last for over one year.―Non-temporary decline‖ refers to fair value fell for over 6-month sessions.When the available-for-sale financial assets impair, the accumulated loss originally included in the othercomprehensive income arising from the decrease in fair value was transferred out from the capital reserve andincluded in the profit or loss for the period. The accumulated loss that transferred out from the capital reserve isthe balance of the acquired initial cost of asset, after deduction of the principal recovered, amortized amounts,current fair value and the impairment loss originally included in the profit or loss. After recognition of theimpairment loss, if there is objective evidence showing recovery in value of such financial assets impaired andwhich is related to any event occurring after such recognition in subsequent periods, the impairment lossoriginally recognized shall be reversed. The impairment loss reversal of the available-for-sale equity instrumentwill be recognized as other comprehensive income, and the impairment loss reversal of the available-for-sale debtinstrument will be included in the profit or loss for the period.When an equity investment that is not quoted in an active market and the fair value of which cannot be measuredreliably, or the impairment loss of a derivative financial asset linked to the equity instrument that shall be settledby delivery of that equity instrument, then it will not be reversed.11. Account Receivable(1) Account Receivable withdrawal on single significant amount and with bad debt provision accrued forsingle item
    Determine basis or amount standards for single   The Company’s account receivables with above RMB 1 million in single item is
    significant amount                               defined as account receivables with significant amount in single item.
    Withdrawal method for account with single        In line with the difference of present value of future cash flow lower its book
    significant amount and withdrawal single item    value, carried out impairment test independently and withdrawal the bad debt
    bad debt provision                               reserves(2) Receivables with bad debt provision accrual by credit portfolio
                                         Combination                                              Bad debt provision accrualClassify to many combination based on credit portfolio for those receivables with minor accountsingly and those with major amount but has no impairment been found after testing independelty;
                                                                                                Age analysis methodbase on the actual loss ratio of the receivables of previous years, with same or similar creditportfolio, and combining actual condition accrual bad debt reservesIn combination, accounts whose bad debts provision was accrued by age analysis:√ Applicable □ Not applicable
                                                                      无锡威孚高科技集团股份有限公司 2014 年年度报告全文
               Account age                           Rate for receivables                      Rate for other receivables
    Within 1 year (one year included)                                             10.00%                                        10.00%Within 6 months
    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 applicableIn combination, withdrawal proportion of bad debt provision based on other methods:□ Applicable √ Not applicable(3) Account receivable with minor single amount but with withdrawal bad debt provision for single item:
    Reasons for withdrawal single item bad     The present value of future cash flow has major difference with the receivable group’s
    debt provision                             present value of future cash flow
                                           Carried out impairment test independently, accrual bad debt reserves according to theWithdrawal method for bad debt provision
                                           difference of present value of future cash flow lower its book value12. Inventories(1)Classification of inventoriesThe Company’s inventories are categorized into stock materials, product in process and stock goods etc.(2)Pricing for delivered inventoriesA. Generally, stock materials are calculated at planned cost. Material cost difference is individually set accordingto classification of grant types. Pursuant to the difference between the planned cost of the received or deliveredraw materials and the material cost the aforesaid cost should share after carrying forward at period-end, theCompany adjusts the planned cost to effective cost; finished products are priced at effective costs, and carriedforward to operating cost by weighted average method when being delivered;B. Products in process are priced at effective costs, and carried forward to finished products at actually occurredcost;C. Finished self-produced products are priced at effective costs, and carried forward to operating cost by weightedaverage method; external purchase goods (from import and export trades) are carried forward to sales cost byindividual pricing method.(3)Recognition evidence for net realizable value of inventories and withdrawal method for inventory impairmentprovisionInventories as at period-end are priced at the lower of costs and net realizable values; at period end, on the basis ofoverall clearance about inventories, inventory impairment provision is withdrew for uncollectible part of costs ofinventories which result from destroy of inventories, out-of-time of all and part inventories, or sales pricelowering than cost. Inventory impairment provision for stock goods and quantity of raw materials is subject to thedifference between costs of single inventory item over its net realizable value. As for other raw materials withlarge quantity and comparatively low unit prices, inventory impairment provision is withdrawn pursuant tocategories.As for finished goods, commodities and materials available for direct sales, their net realizable values aredetermined by their estimated selling prices less estimated sales expenses and relevant taxes. For materialinventories held for purpose of production, their net realizable values are determined by the estimated sellingprices of finished products less estimated costs, estimated sales expenses and relevant taxes accumulated tillcompletion of production. As for inventories held for implementation of sales contracts or service contracts, theirnet realizable values are calculated on the basis of contract prices. In the event that inventories held by a companyexceed order amount as agreed in sales contracts, net realizable values of the surplus part are calculated on thebasis of normal sale price.
                                                                   无锡威孚高科技集团股份有限公司 2014 年年度报告全文(4) Inventory systemPerpetual Inventory System is adopted by the Company and takes a physical inventory.(5) Amortization of low-value consumables and wrappage①Low-value consumablesThe Company adopts one-off amortization method to amortize the low-value consumables.②WrappageThe Company adopts one-off amortization method to amortize the wrappage at the time of receipt.13. Classified as assets held for saleThe Company’s component(or non-current asset) will recogniz as held-for-sale while satisfied the followedconditions simultaneously: the component can be promptly sold at its existing status only according to the practiceterms in connection with disposal of this kind of assets; the Company has already made resolution on disposal ofsuch component, such as approved by shareholders in line with regulations, have already approved by generalmeeting or relevant authority; the Company entered into irrevocable transfer agreement with the transferee; andthis transfer will be completed within one year.Book value of the assets held-for-sale shall be adjusted on recoverable amounts (no more than the original bookvalue while qualify held-for-sale conditions), the execee parts from original book value and recoverable amountsafter adjusted shall considered as assets impairment loss reckoned into current gains/losses. Held-for-sale fixedassets and intangible assets would be not applicable to depreciation or amortization, and would be measured at thelower of its carrying value less disposal cost and fair value less disposal cost.If classified as held for sale no longer meets the recognition condition as non-current asset held for sale ordisposal group, the Company will cease such recognition and measure the asset at the lower of(1)the carrying value of the asset or disposal group prior to being classified as held for sale, based on the amountadjusted with the depreciation, amortization or impairment which should have been recognized assuming it hadnot been classified as held for sale;(2)the recoverable amount on the date when the Company decides to cease disposal.14. Long-term equity investmentLong-term equity investments refer to long-term equity investments in which the Company has control, jointcontrol or significant influence over the investee. Long-term equity investment without control or joint control orsignificant influence of the Group is accounted for as available-for-sale financial assets or financial assetsmeasured at fair value with any change in fair value charged to profit or loss.(1) Determination of initial investment costInvestment costs of the long-term equity investment are recongized by the follow according to different way ofacquirement:①For a long-term equity investment acquired through a business combination involving enterprises undercommon control, the initial investment cost of the long-term equity investment shall be the absorbing party’sshare of the carrying amount of the owner’s equity under the consolidated financial statements of the ultimatecontrolling party on the date of combination. The difference between the initial cost of the long-term equityinvestment and the cash paid, non-cash assets transferred as well as the book value of the debts borne by theabsorbing party shall offset against the capital reserve. If the capital reserve is insufficient to offset, the retainedearnings shall be adjusted. If the consideration of the merger is satisfied by issue of equity securities, the initialinvestment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount ofthe owner’s equity under the consolidated financial statements of the ultimate controlling party on the date ofcombination. With the total face value of the shares issued as share capital, the difference between the initial costof the long-term equity investment and total face value of the shares issued shall be used to offset against thecapital reserve. If the capital reserve is insufficient to offset, the retained earnings shall be adjusted. (For businesscombination resulted in an enterprise under common control by acquiring equity of the absorbing party undercommon control through a stage-up approach with several transactions, these transactions will be judged whetherthey shall be treat as ―transactions in a basket‖. If they belong to ―transactions in a basket‖, these transactions willbe accounted for a transaction in obtaining control. If they are not belong to ―transactions in a basket‖, the initialinvestment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount ofthe owner’s equity under the consolidated financial statements of the ultimate controlling party on the date of
                                                                 无锡威孚高科技集团股份有限公司 2014 年年度报告全文combination. The difference between the initial cost of the long-term equity investment and the aggregate of thecarrying amount of the long-term equity investment before merging and the carrying amount the additionalconsideration paid for further share acquisition on the date of combination shall offset against the capital reserve.If the capital reserve is insufficient to offset, the retained earnings shall be adjusted. Other comprehensive incomerecognized as a result of the previously held equity investment accounted for using equity method on the date ofcombination or recognized for available-for-sale financial assets will not be accounted for.)②For a long-term equity investment acquired through a business combination involving enterprises not undercommon control, the initial investment cost of the long-term equity investment shall be the cost of combination onthe date of acquisition. Cost of combination includes the aggregate fair value of assets paid by the acquirer,liabilities incurred or borne and equity securities issued. (For business combination resulted in an enterprise notunder common control by acquiring equity of the acquire under common control through a stage-up approach withseveral transactions, these transactions will be judged whether they shall be treat as ―transactions in a basket‖. Ifthey belong to ―transactions in a basket‖, these transactions will be accounted for a transaction in obtainingcontrol. If they are not belong to ―transactions in a basket‖, the initial investment cost of the long-term equityinvestment accounted for using cost method shall be the aggregate of the carrying amount of equity investmentpreviously held by the acquire and the additional investment cost. For previously held equity accounted for usingequity method, relevant other comprehensive income will not be accounted for. For previously held equityinvestment classified as available-for-sale financial asset, the difference between its fair value and carryingamount, as well as the accumulated movement in fair value previously included in the other comprehensiveincome shall be transferred to profit or loss for the current period.) plus the combination cost measured by costswhcih have directly connection with acquirsition are considered as innital investment cost of such long-termequity investment. Realizable assets and liabilities undertaken by such assets (including contingent liabilities) ofthe party being combined as at the combination date are all measured at fair values, without consideration toamount of minority interests. The surplus of combination cost less fair value net realizable assets of the partybeing combined is recorded as goodwill, and the deficit is directly recognized in the consolidated statement ofgains and losses.③Long-term investments obtained through other ways:A. Initial investment cost of long-term equity investment obtained through cash payment is determined accordingto actual payment for purchase;B. Initial investment cost of long-term equity investment obtained through issuance of equity securities isdetermined at fair value of such securities;C. Initial investment cost of long-term equity investment (exchanged-in) obtained through exchange withnon-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;D. Initial investment cost of long-term equity investment obtained through debt reorganization is determined atfair value of such investment.(2) Subsequent measurement on long-term equity investment①Presented controlling ability on investee, the investment shall used cost method for measurement.②Long-term equity investments with joint control (excluding those constitute joint ventures) or significantinfluence on the investee are accounted for using equity method.Under the equity method, where the initial investment cost of a long-term equity investment exceeds theinvestor’s interest in the fair value of the investee’s identifiable net assets at the acquisition date, no adjustmentshall be made to the initial investment cost. Where the initial investment cost is less than the investor’s interest inthe fair value of the investee’s identifiable net assets at the acquisition date, the difference shall be charged toprofit or loss for the current period, and the cost of the long term equity investment shall be adjusted accordingly.Under the equity method, investment gain and other comprehensive income shall be recognized based on theGroup’s share of the net profits or losses and other comprehensive income made by the investee, respectively.Meanwhile, the carrying amount of long-term equity investment shall be adjusted. The carrying amount oflong-term equity investment shall be reduced based on the Group’s share of profit or cash dividend distributed bythe investee. In respect of the other movement of net profit or loss, other comprehensive income and profitdistribution of investee, the carrying value of long-term equity investment shall be adjusted and included in thecapital reserves. The Group shall recognize its share of the investee’s net profits or losses based on the fair valuesof the investee’s individual separately identifiable assets at the time of acquisition, after making appropriateadjustments thereto. In the event of inconformity between the accounting policies and accounting periods of the
                                                                无锡威孚高科技集团股份有限公司 2014 年年度报告全文investee and the Company, the financial statements of the investee shall be adjusted in conformity with theaccounting policies and accounting periods of the Company. Investment gain and other comprehensive incomeshall be recognized accordingly. In respect of the transactions between the Group and its associates and jointventures in which the assets disposed of or sold are not classified as operation, the share of unrealized gain or lossarising from inter-group transactions shall be eliminated by the portion attributable to the Company. Investmentgain shall be recognized accordingly. However, any unrealized loss arising from inter-group transactions betweenthe Group and an investee is not eliminated to the extent that the loss is impairment loss of the transferred assets.In the event that the Group disposed of an asset classified as operation to its joint ventures or associates, whichresulted in acquisition of long-term equity investment by the investor without obtaining control, the initialinvestment cost of additional long-term equity investment shall be the fair value of disposed operation. Thedifference between initial investment cost and the carrying value of disposed operation will be fully included inprofit or loss for the current period. In the event that the Group sold an asset classified as operation to itsassociates or joint ventures, the difference between the carrying value of consideration received and operationshall be fully included in profit or loss for the current period. In the event that the Company acquired an assetwhich formed an operation from its associates or joint ventures, relevant transaction shall be accounted for inaccordance with ―Accounting Standards for Business Enterprises No. 20 ―Business combination‖. All profit orloss related to the transaction shall be accounted for.The Group’s share of net losses of the investee shall be recognized to the extent that the carrying amount of thelong-term equity investment together with any long-term interests that in substance form part of the investor’s netinvestment in the investee are reduced to zero. If the Group has to assume additional obligations, the estimatedobligation assumed shall be provided for and charged to the profit or loss as investment loss for the period. Wherethe investee is making profits in subsequent periods, the Group shall resume recognizing its share of profits aftersetting off against the share of unrecognized losses.③Acquisition of minority interestUpon the preparation of the consolidated financial statements, since acquisition of minority interest increased oflong-term equity investment which was compared to fair value of identifiable net assets recognized which aremeasured based on the continuous measurement since the acquisition date (or combination date) of subsidiariesattributable to the Group calculated according to the proportion of newly acquired shares, the difference of whichrecognized as adjusted capital surplus, capital surplus insufficient to set off impairment and adjusted retainedearnings.④Disposal of long-term equity investmentsIn these consolidated financial statements, for disposal of a portion of the long-term equity investments in asubsidiary without loss of control, the difference between disposal cost and disposal of long-term equityinvestments relative to the net assets of the subsidiary is charged to the owners’ equity. If disposal of a portion ofthe long-term equity investments in a subsidiary by the parent company results in a change in control, it shall beaccounted for in accordance with the relevant accounting policies as described .- 6 ―Preparation Method of theConsolidated Financial Statements‖.On disposal of a long-term equity investment otherwise, the difference between the carrying amount of theinvestment and the actual consideration paid is recognized through profit or loss in the current period.In respect of long-term equity investment accounted for using equity method with the remaining equity interestafter disposal also accounted for using equity method, other comprehensive income previously under owners’equity shall be accounted for in accordance with the same accounting treatment for direct disposal of relevantasset or liability by investee on pro rata basis at the time of disposal. The owners’ equity recognized for themovement of other owners’ equity (excluding net profit or loss, other comprehensive income and profitdistribution of investee) shall be transferred to profit or loss for the current period on pro rata basis.In respect of long-term equity investment accounted for using cost method with the remaining equity interest afterdisposal also accounted for cost equity method, other comprehensive income measured and reckoned under equitymethod or financial instrument before control of the investee unit acquired shall be accounted for in accordancewith the same accounting treatment for direct disposal of relevant asset or liability by investee on pro rata basis atthe time of disposal and shall be transferred to profit or loss for the current period on pro rata basis; among the netassets of investee unit recognized by equity method (excluding net profit or loss, other comprehensive income andprofit distribution of investee) shall be transferred to profit or loss for the current period on pro rata basis.
                                                                无锡威孚高科技集团股份有限公司 2014 年年度报告全文In the event of loss of control over investee due to partial disposal of equity investment by the Group, in preparingseparate financial statements, the remaining equity interest which can apply common control or impose significantinfluence over the investee after disposal shall be accounted for using equity method. Such remaining equityinterest shall be treated as accounting for using equity method since it is obtained and adjustment was madeaccordingly. For remaining equity interest which cannot apply common control or impose significant influenceover the investee after disposal, it shall be accounted for using the recognition and measurement standard offinancial instruments. The difference between its fair value and carrying amount as at the date of losing controlshall be included in profit or loss for the current period. In respect of other comprehensive income recognizedusing equity method or the recognition and measurement standard of financial instruments before the Groupobtained control over the investee, it shall be accounted for in accordance with the same accounting treatment fordirect disposal of relevant asset or liability by investee at the time when the control over investee is lost.Movement of other owners’ equity (excluding net profit or loss, other comprehensive income and profitdistribution under net asset of investee accounted for and recognized using equity method) shall be transferred toprofit or loss for the current period at the time when the control over investee is lost. Of which, for the remainingequity interest after disposal accounted for using equity method, other comprehensive income and other owners’equity shall be transferred on pro rata basis. For the remaining equity interest after disposal accounted for usingthe recognition and measurement standard of financial instruments, other comprehensive income and otherowners’ equity shall be fully transferred.In the event of loss of common control or significant influence over investee due to partial disposal of equityinvestment by the Group, the remaining equity interest after disposal shall be accounted for using the recognitionand measurement standard of financial instruments. The difference between its fair value and carrying amount asat the date of losing common control or significant influence shall be included in profit or loss for the currentperiod. In respect of other comprehensive income recognized under previous equity investment using equitymethod, it shall be accounted for in accordance with the same accounting treatment for direct disposal of relevantasset or liability by investee at the time when equity method was ceased to be used. Movement of other owners’equity (excluding net profit or loss, other comprehensive income and profit distribution under net asset of investeeaccounted for and recognized using equity method) shall be transferred to profit or loss for the current period atthe time when equity method was ceased to be used.The Group disposes its equity investment in subsidiary by a stage-up approach with several transactions until thecontrol over the subsidiary is lost. If the said transactions belong to ―transactions in a basket‖, each transactionshall be accounted for as a single transaction of disposing equity investment of subsidiary and loss of control. Thedifference between the disposal consideration for each transaction and the carrying amount of the correspondinglong-term equity investment of disposed equity interest before loss of control shall initially recognized as ot hercomprehensive income, and subsequently transferred to profit or loss arising from loss of control for the currentperiod upon loss of control.(3)Impairment test method and withdrawal method for impairment provisionFound more 20.‖impairment of long-term investment‖(4) Criteria of Joint control and significant influenceJoint control is the Company’s contractually agreed sharing of control over an arrangement, which relevantactivities of such arrangement must be decided by unanimously agreement from parties who share control. All theparticipants or participant group whether have controlling over such arrangement as a group or not shall be judgefirstly, than judge that whether the decision-making for such arrangement are agreed unanimity by the participantsor not.Significant influence is the power of the Company to participate in the financial and operating policy decisions ofan investee, but to fail to control or joint control the formulation of such policies together with other parties.While recognizing whether have significant influence by invstee, the potential factors of voting power as currentconvertibel bonds and current executable warrant of the inestee held by investo