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苏威孚B(200581)公告正文

苏威孚B:2016年年度报告(英文版)

公告日期:2017-04-18

                     无锡威孚高科技集团股份有限公司 2016 年年度报告全文




Weifu High-Technology Group Co., Ltd.

        ANNUAL REPORT 2016




              April 2017




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                                                              无锡威孚高科技集团股份有限公司 2016 年年度报告全文




             Section I. Important Notice, Contents and Paraphrase

Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of
Weifu High-Technology Group Co., Ltd. (hereinafter referred to as the Company) hereby
confirm that there are no any fictitious statements, misleading statements, or important
omissions carried in this report, and shall take all responsibilities, individual and/or joint, for
the reality, accuracy and completion of the whole contents.
Chen Xuejun, Principal of the Company, Ou Jianbin, person in charger of accounting works
and Ou Jianbin, person in charge of accounting organ (accounting principal) hereby confirm
that the Financial Report of 2016 Annual Report is authentic, accurate and complete.

Other directors attending the Meeting for annual report deliberation except for the followed
   Name of director absent   Title for absent director         Reasons for absent             Attorney

        Rudolf Maier                 Director            On a business trip                 Chen Xuejun

       Chen Yudong                   Director            On a business trip                 Chen Xuejun

Concerning the forward-looking statements with future planning involved in the Report, they
do not constitute a substantial commitment for investors. Investors should be cautious with
investment risks.

The Company described the risks that might occurred in the operation in the report “IX- The
Company’s future development prospects” of “Section IV- Discussion and Analysis of the
Operation” and “X. Risks with financial instrument concerned” in Section XI. Financial
Report, as well as the risk management policy the Company will take in order to reduce those
risks. Investors should pay attention to relevant content. The China Securities Journal,
Securities Times, Hong Kong Commercial Daily and Juchao Website are the information
disclosure media appointed by the Company, all information should be prevail on the above
mentioned media, investors are advice to pay attention on investment risks.

The profit distribution plan that deliberated and approved by the Board is: based on total
stock issue of 1,008,950,570, distributed 6.00 Yuan (tax included) bonus in cash for every
10-share hold by all shareholders, 0 shares bonus issued (tax included) and no capitalizing of
common reserves carried out.




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                                                           Contents




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

Section II Company Profile and Main Finnaical Indexes ............................................................. 5

Section III Summary of Company Business .................................................................................. 9

Section IV Discussion and Analysis of Operation ........................................................................ 12

Section V Important Events .......................................................................................................... 35

Section VI Changes in shares and particular about shareholders............................................... 48

Section VII Preferred Stock……………………………………………………………………….53

Section VIII Particulars about Directors, Supervisors,Senior Executives and Employees ...... 54

Section IX Corporate Governance ................................................................................................. 63

Section X Corporate Bond .............................................................................................................. 69

Section XI Financial Report ............................................................................................................ 70

Section XII Documents Available for Reference ......................................................................... 197




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                                                             无锡威孚高科技集团股份有限公司 2016 年年度报告全文




                                            Paraphrase


                       Items            Refers to                                 Contents

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

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

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

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

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

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

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

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

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

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

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

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

Weifu 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.

Weifu Precision Machinery               Refers to   Weifu Precision Machinery Manufacturing Co., Ltd.

Zhonglian Electronic                    Refers to   Zhonglian Automobile Electronic Co., Ltd.

Taiji Industrial                        Refers to   Wuxi Taiji Industrial Co., Ltd.

CSRC                                    Refers to   China Securities Regulatory Commission

SZ Stock Exchange                       Refers to   Shenzhen Stock Exchange

                                                    Jiangsu Gongzheng Tianye Certified Public Accountants Co., Ltd.
Jiangsu Gongzheng                       Refers to
                                                    (Special Ordinary Partnership)

The reporting period                    Refers to   From 1 Jan. 2016 to 31 Dec. 2016




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               Section II Company Profile and Main Finnaical Indexes

I. Company information

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

Stock exchange for listing      Shenzhen Stock Exchange

Name of the Company (in
                                无锡威孚高科技集团股份有限公司
Chinese)

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

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

Short form of foreign name of
                                WFHT
the Company (if applicable)

Legal representative            Chen Xuejun

Registrations add.              No.5, Huashan Road, New District, Wuxi City

Code for registrations add      214028

Offices add.                    No.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.cn


II. Person/Way to contact

                                                     Secretary of the Board                   Rep. of security affairs

Name                                       Zhou Weixing                             Yan Guohong

                                           No.5, Huashan Road, New District, Wuxi   No.5, Huashan Road, New District, Wuxi
Contact add.
                                           City                                     City

Tel.                                       0510-80505999                            0510-80505999

Fax.                                       0510-80505199                            0510-80505199

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


III. Information disclosure and preparation place

Newspaper appointed for information disclosure    Securities Times; China Securities Journal; Hong Kong Commercial Daily

Website for annual report publish appointed by http://www.cninfo.com.cn


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                                                                          无锡威孚高科技集团股份有限公司 2016 年年度报告全文


CSRC

Preparation place for annual report                 Office of the Board of Directors

IV. Registration changes of the Company

组织机构代码                                      91320200250456967N

Changes of main business since listing (if
                                                  No change
applicable)

                                                  The Company’s controlling shareholder was Weifu Group before 2009.The
                                                  controlling shareholder changed to Industry Group from 31st May 2009 because
Previous changes for controlling shareholders Industry Group merged Weifu Group in 2009.Becasue both Weifu Group and
(if applicable)                                   Industry Group were wholly state-owned companies of Wuxi State-owned Assets
                                                  Supervision & Administration Commission of State Council, which as actual
                                                  controller had no changes.


V. Other relevant information

CPA engaged by the Company

Name of CPA                 Jiangsu Gongzheng Tianye Certified Public Accountants Co., Ltd. (Special Ordinary Partnership)

                            10/F, No.5 Building, Jiakaicheng Fortune Center, Jingrong 3rd Street, Taihu Xincheng, Binghu District,
Offices add. for CPA
                            Wuxi, Jiangsu Province

Signing Accountants         Bo Lingjing,    Meng Yin
Sponsor engaged by the Company for performing continuous supervision duties in reporting period

□ Applicable √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period

□ Applicable √ Not applicable


VI. Main accounting data and financial indexes

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

                                                2016               2015                Changes over last year         2014

Operating income (RMB)                     6,422,700,399.27    5,741,643,746.42                          11.86%   6,354,480,020.38

Net profit attributable to shareholders
                                           1,672,224,317.05    1,515,388,285.71                          10.35%   1,539,439,686.81
of the listed company(RMB)

Net profit attributable to shareholders
of the listed company after deducting 1,435,963,836.76         1,232,371,453.62                          16.52%   1,404,877,811.26
non-recurring gains and losses(RMB)

Net cash flow arising from operating
                                            527,344,364.04       542,045,770.17                          -2.71%    889,899,654.79
activities(RMB)


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                                                                        无锡威孚高科技集团股份有限公司 2016 年年度报告全文


Basic        earnings    per      share
                                                       1.66                 1.49                           11.41%                 1.51
(RMB/Share)

Diluted       earnings    per     share
                                                       1.66                 1.49                           11.41%                 1.51
(RMB/Share)

Weighted average ROE                                13.53%              13.32%                             0.21%                15.05%

                                            End of 2016        End of 2015          Changes over end of last year    End of 2014

Total assets (RMB)                        17,263,771,897.78   15,704,093,069.04                            9.93% 14,488,589,167.90

Net assets attributable to shareholder
                                          12,927,344,292.47   11,783,228,273.39                            9.71% 10,859,034,688.96
of listed company (RMB)


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

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

□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting 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 accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)

□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.


VIII. Quarterly main financial index

                                                                                                                                In RMB

                                                      1st Q                 2nd Q                  3rd Q                4th Q

Operating income                                  1,533,288,775.97     1,833,187,676.52        1,522,896,852.89     1,533,327,093.89

Net profit attributable to shareholders of the
                                                    405,471,329.51      538,097,206.21           366,126,109.76      362,529,671.57
listed company

Net profit attributable to shareholders of the
listed       company     after     deducting        331,616,138.91      498,016,578.22           307,178,949.97      299,152,169.66
non-recurring gains and losses

Net cash flow arising from operating
                                                     42,831,760.61      150,709,254.34            55,521,302.20      278,282,046.89
activities

Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial
index disclosed in the company’s quarterly report and semi-annual report
□Yes    √ No

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

√Applicable    □ Not applicable
                                                                                                                                    In RMB

                             Item                                  2016            2015               2014                   Note

Gains/losses from the disposal of non-current asset
(including the write-off that accrued for impairment of         -6,229,604.16    -8,835,206.68    -16,283,213.60
assets)

                                                                                                                    Including
Governmental       subsidy     reckoned       into   current                                                        government
gains/losses (not including the subsidy enjoyed in quota                                                            subsidy income
                                                                43,963,942.28 142,227,027.11      170,915,324.15
or ration according to national standards, which are                                                                received from
closely relevant to enterprise’s business)                                                                         relocation by
                                                                                                                    policy

Profit and loss of assets delegation on others’
                                                               205,047,032.68 162,047,876.71      158,156,542.41
investment or management

Held transaction financial asset, gains/losses of changes
of fair values from transaction financial liabilities, and
investment gains from disposal of transaction financial
asset, transaction financial liabilities and financial asset    31,650,057.18 102,044,890.13
available for sales, exclude the effective hedging
business relevant with normal operations of the
Company

Switch back of provision for depreciation of account
                                                                 2,338,453.69    4,097,243.96        3,970,434.00
receivable which was singly taken depreciation test

Other non-operating income and expenditure except for
                                                                 4,481,317.09        -1,235.46       2,049,146.66
the aforementioned items

Relocation expenses                                                -57,116.41   -68,257,168.60   -158,174,925.50

Less: Impact on income tax                                      42,191,376.78   49,378,731.32      24,042,902.11

     Impact on minority shareholders’ equity (post-tax)         2,742,225.28      927,863.76        2,028,530.46

Total                                                          236,260,480.29 283,016,832.09      134,561,875.55              --

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




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                      Section III Summary of Company Business

I. Main businesses of the company in the reporting period
(I) Main business of the company
1. The company belongs to auto parts industry, and its main business products include diesel fuel injection system
products, exhaust after-treatment system products and air management system products.
2. Main uses of the company's products
(1) The diesel fuel injection system products are widely used in different power diesel engines supporting all types
of trucks, passenger cars, buses, construction machinery, marine, farm machinery and generator sets. The
company not only makes products matching with the main engines used at home but also exports some products
to the Americas, Southeast Asia, and the Middle East. The products meet the needs of emission regulations of the
national.
(2) The exhaust after-treatment system products mainly support the major manufacturers of automobile,
motorcycle and general machinery at home which meet the National emission standards.
(3) The wheel diameter range of air management system products (supercharger) covers 30mm to 125mm whole
series which matches with most of the domestic small-bore diesel engine plants and some six-cylinder diesel
engine manufacturers and meet the needs of the light and heavy commercial vehicles and some passenger cars.
The company has the vacuum valve control that meets the emission standards of Euro IV & Euro V, the
electronically controlled variable geometry turbochargers, the titanium-aluminum alloy superchargers, the electric
superchargers, the ceramic ball bearing superchargers and some kinds of gasoline engine turbochargers.
3. Business model of the company
The company follows the operating philosophy of making competitive products, creating famous brands, striving
for first choices, and creating value for the users, implements the business model that parent company unifies the
management and subsidiaries decentralize the production. Namely, the group company is responsible for making
strategic development planning and operation targets, and making the unified management, instruction and
assessment for the finance, significant personnel management, core raw materials, quality control, and technology
of the subsidiaries. The subsidiaries arrange production based on the order management model of market, which
makes the subsidiaries keep the consistent quality with the company, helps keep abreast of customer needs and
saving logistics costs, maintain the timeliness of products production and supply, and improve the company’s
economic benefits.
During the reporting period, the company’s main business and business model has no significant changes.


(II) Development stage and periodic characteristics of the industry the company involves and the company's
industry position during the reporting period


The Company belongs to the industry of auto parts, which is closely related to macro-economic situations, auto
industry policies and market demands. The Company has grown into one of key domestic enterprises for

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providing core auto (power engineering) parts after more than 60 years of development, and has formed a distinct
advantage within industry since it has always kept pace with the upgrading of national motor vehicle emission
standards, been busy with strategic disposition and enhanced its technical reserves these years. The Company
features a full line of diesel fuel injection systems as well as excellent exhaust gas after-treatment system
technology. As a major provider for domestic self-owned motor after-treatment market, the Company takes a
leading position in domestic market in terms of technical level, market size and production capability with high
superiority in its integrated technology of catalyst and after-treatment system. The Company also has a full line of
air intake systems (supercharger) and its technical strength is a lead in domestic market with the production in line
with national emission standard. At present, the Company has finished the whole industry chain layout in terms of
air intake system, diesel fuel injection system and exhaust gas after-treatment system, which is able to provide
systematic integration solution for the customers, and it is also one of the companies which have the most
complete product reserves and can satisfy the national emission standard.


From the perspective of development history of Chinese auto market, it has stepped into a mature stage with
stable growth after rapid growth in past decades of years, and the sales growth will be slowing down every year in
future and the core technologies will be changing with each passing day. Nowadays, the problems regarding
pollution and haze have become serious social issues concerned by the public, therefore, the government shall
take a further step to strengthen the implement of emission regulation as well as the supervision and improvement
on motor vehicle exhaust emissions, meanwhile, the government shall be dedicated to promote the development
of new energy automobiles. In order to meet the upgrading requirements of emission regulation, the Company
shall be planning research and development direction for new technologies, actively promoting the adjustment of
product structures, accelerating to cultivate new growth point of sales, keeping enhancing competitive capacity,
and building a new development pattern.


II. Major changes in main assets

1. Major changes in main assets


                Major assets                                          Note of major changes


Equity assets                        No major change

Fixed assets                         No major change

Intangible assets                    No major change

                                     Amount at period-end has major decline over that of year beginning mainly because the
Construction in progress
                                     new-built plant of Weifu Leader has turned into fixed assets


2. Main overseas assets

□ Applicable √ Not applicable


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III. Core Competitiveness Analysis
The company is an important new high-tech enterprise of the National Torch Plan. Over the years, the company
has been standing in the industry's leading position and possessing the obvious technological advantages by
relying on the scientific research basis, such as "National Enterprise Technology Center", "Post-doctoral Research
Center", "Graduate Research Center of Jiangsu Province", and "Achievement Industrialization Base of National
High Technology Research and Development Plan".


During the reporting period, centered on technology innovation and development strategies, taking technology
innovation as a main line, management innovation as security and quality innovation and system innovation as
comprehensive innovation mechanism, the Company has been constantly improving its core competitiveness in
terms of basis, technical crafts and product innovation. The Company has taken the upgrading of three system
products as a priority, accelerated to break through key technologies, and comprehensively improved system
integration (service) capability; oriented by the customer requirement, the Company has also consolidated and
expanded market positively to comprehensively improve its product market share; it also has attracted high
quality talents with perfect incentive mechanism, intensified innovation incentive, optimized human resources
management system, and enhanced executive force; the Company has taken increasing resource use efficiency as
a goal, accelerated the integration of informatization and industrialization, strengthened the capability of
allocation of enterprise element resources, focused on quality benefits, created technology quality cost
comparative advantages so as to maintain stable enterprise development.
Core competitiveness of the Company has no major changes in the Period




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               Section IV Discussion and Analysis of the Operation
1. Introduction
(I) General introduction
Under the influence of the purchase tax reduced by 50% in 2016, car market gets aormer greately with saels
volume over the prediction at beginning of the Year. Production and sales of the vehicles in the whole year has a
growth trends of steady rise overall. According to the numbers from CAAM: in 2016, the whole national has a
production and sales of vehicle amounts of 28.12 million and 28.03 million repectively, a y-o-y growth 14.46%
and 13.65%, including 24.42 million and 24.38 million respectively for passenger cars, with a 15.50% and
14.93% growth on a y-o-y basis, passenger cars is still the main driving force for the development of automotive
industry. The Country put more investment in key areas in the Year, and increased spending on efforts of
governance overload, as the continuse growth in logistic industry, the commercial vehicle, medium and heavy
commercial vehicle in particular has a strong recovery, the declining tendency for two consecutive years in
negative growth is over.


Benefited from the stable growth of automobile market and the recovery of commercial vehicles, the Company
has achieved a sound development in various businesses and all the economic indexes have exceeded the goals set
at the beginning of the year.


Fuel injection systems have seized the opportunity of non-road T3 emission upgrading to accelerate the expansion
of non-road market and captured the market quickly; automotive common-rail high-pressure pump products have
taken the market opportunities and achieved stable growth of sales at month-on-month basis, completed the tasks
delivered by the customers with quantity and quality guaranteed; after-treatment systems have maintained a sound
momentum of sales growth benefited from the implementation of national purchase tax halve policy and the
increase of market share of Chinese brand passenger vehicles; the business of air intake systems (superchargers)
has a good development momentum; diesel superchargers have seized key customers and its market share
maintains stable growth; gas superchargers have been ready for bulk supply after preliminary technical
development and customer authentication and will become a new highlight for development of auto core parts.
Regarding the parts manufacture business, the Company has drastically boosted its production capacity with
nearly zero-defect quality guaranteed, able to meet the delivery requirement.


During the Period, the Company achieved operation revenue of 6423 million Yuan with a y-o-y growth of 11.86%;
total profit amounting to 1819 million Yuan, a 9.32% growth on a y-o-y basis; total assets amounting to 17264
million Yuan, a 9.93% up from a year earlier; and the equity attributable to owners of parent company amounting
to 12927 million Yuan, a 9.71% growth on a y-o-y basis.
(II) Works implemented
1. The Company has continued to promote the construction of management accounting, further strengthened
budget control; the Company also completed the preparation for building a group foreign currency cash pool,


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made a plan for the business of purchasing and exchanging foreign currencies, reduced use cost of foreign
currency and boosted capital efficiency. In 2016, the group has sound financial incomes by optimizing structure
configuration of financial products.


2. The Company has carried out continuous improvement activities and in 2016, the employee participation rate
has reached up to 80%. In the face of drastic growth of market demands and the increasing of customer delivery
requirements of this year, the Company has taken an active role in efforts to production and quality control,
maintained a good operation of the Company. Various indexes have reached the predetermined targets in the year
of 2016, and the customer satisfaction has been enhanced drastically. At the same time, the company has
introduced Q11 manufacturing principle in the group, also promoted to build one-in-one-out firewall for 22 core
products, and strengthened employee training and internal mistake-proofing ability.


3. The Company has completed the online of second phase and the third phase of ERP project of the group, and
the first phase of MES system has already been staged online for related business divisions. The first phase of
SRM has been successfully online and the group supercomputing center has performed preliminary operation.


4. The Company has completed the reengineering audit for ERP-SAP flow for six modules of the related
subsidiaries, which has lay a solid flow basis for the company blue print design; meanwhile, The Company has
also followed up the operation of risk assets of various business divisions based on the actual, taken a further step
to control risks.


5. The Company has continued to promote safety and environmental protection target-oriented responsibility
system to build safety enterprise, introduced normalized management of ISO14001 environmental management
system, completed the construction of safety production standardization system and safe environmental protection
organization network, ensuring the effective operation and control of the whole system and providing guarantees
for sustainable and stable operation and management.


6. The Company has further deepened talent development strategy and promoted medium and long term incentive
mechanism. The Company has also strengthened the construction of human resources integration and internal
recruitment deployment platform. The Company has focused on strategy development goal of the Company and
optimized the structural adjustment of human resources, promoted potential talents cultivation mechanism and
enhanced the promotion of core talents incentive and management mechanism, ensuring the Company will share
the development result together with the employees and the employee income will be increased steadily.


II. Main business analysis
1. Introduction

See the ―I-Introduction‖ in ―Discussion and Analysis of the Operation‖




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2. Revenue and cost

(1) Constitute of operation revenue

                                                                                                                                     In RMB

                                            2016                                          2015
                                                                                                                        Increase/decrease
                                               Ratio in operation                              Ratio in operation
                              Amount                                          Amount                                         y-o-y
                                                    revenue                                         revenue

Total operation
                           6,422,700,399.27                   100%       5,741,643,746.42                     100%                   11.86%
revenue

According to industries

Automobile parts           6,043,223,608.00               94.09%         5,419,602,844.58                 94.39%                     11.51%

Other business               379,476,791.27                   5.91%           322,040,901.84                  5.61%                  17.83%

According to products

Automobile fuel
                           3,614,457,127.38               56.28%         3,032,437,947.90                 52.82%                     19.19%
injection system

Intake system                256,544,008.85                   3.99%           213,835,708.36                  3.72%                  19.97%

Automotive post
                           2,172,222,471.77               33.82%         2,173,329,188.32                 37.85%                     -0.05%
processing system

Other business               379,476,791.27                   5.91%           322,040,901.84                  5.61%                  17.83%

According to region

Domestic sales             6,169,779,041.07               96.06%         5,439,916,487.56                 94.74%                     13.42%

Foreign sales                252,921,358.20                   3.94%           301,727,258.86                  5.26%                -16.18%




(2) About the industries, products, or regions accounting for over 10% of the company’s operating income
or operating profit

√Applicable    □ Not applicable
                                                                                                                                     In RMB

                                                                                 Increase/decrease Increase/decrease Increase/decrease
                                                                Gross profit
                        Operating revenue      Operating cost                       of operating    of operating cost      of gross profit
                                                                      ratio
                                                                                   revenue y-o-y          y-o-y             ratio y-o-y

According to industries

Automobile parts          6,043,223,608.00 4,586,960,342.60           24.10%               11.51%              11.16%                 0.24%

According to products



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Automobile fuel
                            3,614,457,127.38 2,567,980,279.10        28.95%          19.19%            18.27%             0.55%
injection system

Intake system                 256,544,008.85      197,110,413.23     23.17%          19.97%            22.12%             -1.35%

Automotive post
                            2,172,222,471.77 1,821,869,650.27        16.13%          -0.05%             1.56%             -1.33%
processing system

According to region

Domestic sales              6,169,779,041.07 4,334,912,180.35        29.74%          20.55%            13.17%             4.59%

Foreign sales                 252,921,358.20      252,048,162.24      0.35%         -16.18%            -14.84%            -1.56%

Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on
latest one year’s scope of period-end
□ Applicable √ Not applicable

(3) Income from physical sales larger than income from labors
√ Yes □ No



                                                                                                             Increase/decrease
               Industries                 Item                     Unit              2016        2015
                                                                                                                  y-o-y

                                      Sales volume         In 10 thousand units       166        133             24.81%
Fuel injection
                                         Output            In 10 thousand units       176        128             37.50%
system—multiple-piston pump
                                         Storage           In 10 thousand units       20          10             100.00%

                                      Sales volume          In 10 thousand sets       205        241             -14.94%

Fuel injection system—injector          Output             In 10 thousand sets       203        222             -8.56%

                                         Storage            In 10 thousand sets       34          36             -5.56%

                                      Sales volume         In 10 thousand pieces      317        223             42.15%
After-treatment
                                         Output            In 10 thousand pieces      350        228             53.51%
system—purifier
                                         Storage           In 10 thousand pieces      85          52             63.46%

                                      Sales volume         In 10 thousand units       43          34             26.47%

Intake system—turbocharger              Output            In 10 thousand units       47          33             42.42%

                                         Storage           In 10 thousand units       10          6              66.67%

Reasons for y-o-y relevant data with over 30% changes
√Applicable      □ Not applicable



① Fuel injection system--- multi-cylinder pumps have a greater growth benefited from the recovery growth of
commercial vehicle market, which making the demands on automotive common-rail high pressure fuel pump
increase.
② After-treatment system--- air purifiers have a greater growth for the reason of implementing of national
purchasing tax halve policy and the increase of market share of Chinese brand passenger vehicle market.
③ Air intake system---superchargers business have a sound development momentum, mainly because diesel

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supercharger has seized the core customers and its market share has maintain stable growth. After technical
development at first stage and client authentication, gas supercharger has been ready for bulk supply.


(4) Fulfillment of the company’s signed significant sales contracts up to this reporting period

□ Applicable √ Not applicable


(5) Constitute of operation cost

Classification of industries and products
                                                                                                                            In RMB

                                                         2016                               2015
                                                                                                                    Increase/decrea
       Industries             Item                                 Ratio in                           Ratio in
                                               Amount                             Amount                               se y-o-y
                                                                operation cost                     operation cost

Automobile      parts   Direct material     3,550,614,388.81           77.40% 3,325,622,378.96            80.59%            6.77%

Automobile      parts   Labor cost           402,808,864.39             8.78%    325,323,175.11             7.88%          23.82%

Automobile      parts   Depreciation         147,968,909.11             3.23%    109,737,617.87             2.66%          34.84%

                        Varieties of
Automobile      parts                        485,568,180.29            10.59%    365,847,710.48             8.87%          32.72%
                        consumption

                                                                                                                            In RMB

                                                         2016                               2015
                                                                                                                    Increase/decrea
         Products             Item                                 Ratio in                           Ratio in
                                               Amount                             Amount                               se y-o-y
                                                                operation cost                     operation cost

Fuel injection system Direct material       1,675,874,517.95           65.26% 1,470,582,164.59            67.73%           13.96%

Fuel injection system Labor cost             322,019,029.97            12.54%    269,811,950.38           12.43%           19.35%

Fuel injection system Depreciation           124,639,398.58             4.85%     89,222,179.07             4.11%          39.70%

                        Varieties of
Fuel injection system                        445,447,332.60            17.35%    341,622,459.21           15.73%           30.39%
                        consumption

Intake system           Direct material      158,681,800.62            80.50%    128,381,330.20           79.53%           23.60%

Intake system           Labor cost            16,853,237.53             8.55%     14,425,370.94             8.94%          16.83%

Intake system           Depreciation          11,497,121.82             5.84%     10,834,115.68             6.71%           6.12%

                        Varieties of
Intake system                                 10,078,253.26              5.11%     7,772,671.64             4.82%          29.66%
                        consumption

After-treatment
                        Direct material     1,716,058,070.24           94.19% 1,723,291,848.39            96.06%            -0.42%
system

After-treatment
                        Labor cost            63,936,596.89             3.51%     41,085,853.79             2.29%          55.62%
system

After-treatment         Depreciation          11,832,388.71             0.65%     13,048,358.90             0.73%           -9.32%


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system

After-treatment           Varieties of
                                                30,042,594.43            1.65%     16,452,579.63             0.92%           82.60%
system                    consumption


(6) Whether the changes in the scope of consolidation in Reporting Period

□Yes      √ No


(7) Major changes or adjustment in business, product or service of the Company in Reporting Period

□ Applicable √ Not applicable

(8) Major sales and main suppliers
Major sales client of the Company



Total top five clients in sales (RMB)                                                                              2,675,185,923.06

Proportion in total annual sales volume for top five clients                                                                 41.64%

Ratio of the related sales in total annual sales from top five clients                                                       27.26%



Information of top five clients of the Company

  Serial                          Name                                   Sales (RMB)                Proportion in total annual sales

     1       Bosch Automobile Diesel                                             1,750,915,271.84                            27.26%

     2       Client II                                                            386,093,646.64                              6.01%

     3       Client III                                                           197,355,978.30                              3.07%

     4       Client IV                                                            183,886,722.30                              2.86%

     5       Client V                                                             156,934,303.98                              2.44%

   Total                           --                                            2,675,185,923.06                            41.64%

Other situation of main clients
√Applicable □Not applicable

The Company has association with Bosch Automobile Diesel, and directors, supervisors, senior executives, core
technicians and actual controller of the Company have no equity in main clients directly or indirectly.


Main suppliers of the Company

Total purchase amount from top five suppliers (RMB)                                                                1,535,707,532.42

Proportion in total annual purchase amount for top five suppliers                                                            33.03%

Ratio of the related purchase in total annual purchase amount from
                                                                                                                             25.21%
top five suppliers




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Information of top five suppliers of the Company

   Serial                      Suppliers                Purchasing amount (RMB)        Ratio in annual total purchasing amount

     1         Weifu Environment                                  1,020,202,026.55                                     21.94%

     2         Supplier 1                                             158,394,217.95                                     3.41%

     3         Bosch Automobile Diesel                                151,969,520.16                                     3.27%

     4         Supplier 2                                             110,590,354.30                                     2.38%

     5         Supplier 3                                              94,551,413.46                                     2.03%

   Total                            --                            1,535,707,532.42                                     33.03%

Other notes of main suppliers of the Company
√Applicable     □Not applicable

The Company has association with Weifu Environment and Bosch Automobile Diesel, and directors, supervisors,
senior executives, core technicians and actual controller of the Company have no equity in main suppliers directly
or indirectly.

3. Expenses

                                                                                                                        In RMB

                                     2016             2015             Increase/decrease y-o-y      Note of major changes

Sales expense                       213,304,364.89   168,586,194.65                     26.53%

Management expense                  797,426,199.46   794,534,500.08                      0.36%

Financial expense                    -9,109,442.62   -11,123,563.15


4. R&D investment

√Applicable    □ Not applicable
During the reporting period, the company focused on the enterprise technology innovation strategy and planning,
adhered to the technological innovation, accelerated the research and development of key projects and products,
put forth effort to improve the industrialization of new products, and enhanced new power for the enterprises
development. The company made breakthroughs in the technological innovation fields, while actively expanded
the research and development of high-pressure fuel injection system products in marine, agricultural machinery
and other fields; the post-processing R & D products not only met the Guo V emission standards, but also
gradually imported into the applications of Guo VI diesel vehicle projects; air intake products developed from
diesel engine to gasoline engine, and gasoline engine supercharger technology and manufacturing level gradually
became mature. The smooth implementation of these projects ensured the company's leading position in engine
core components industry in the future.




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                                                                         无锡威孚高科技集团股份有限公司 2016 年年度报告全文


R&D investment of the Company

                                                            2016                       2015                     Change ratio

Number of R&D (people)                                                 1,083                           996                     8.73%

Ratio of number of R&D                                               20.79%                       19.81%                       0.98%

R&D investment (Yuan)                                       319,386,108.20              287,087,716.91                     11.25%

R&D investment accounted for R&D income                                4.97%                       5.00%                   -0.03%

R&D investment capitalization (Yuan)                                    0.00                           0.00                    0.00%

Capitalization R&D investment accounted for
                                                                       0.00%                       0.00%                       0.00%
R&D investment

The reason of great changes in the proportion of total R&D investment accounted for operation income than last year
□ Applicable √ Not applicable
Reason for the great change in R&D investment capitalization rate and rational description
□ Applicable √ Not applicable


5. Cash flow

                                                                                                                               In RMB

                            Item                                       2016                     2015             Y-o-y changes

Subtotal of cash in-flow from operation activity                    5,815,453,641.50         4,663,575,776.26              24.70%

Subtotal of cash out-flow from operation activity                   5,288,109,277.46         4,121,530,006.09              28.30%

Net cash flow from operation activity                                527,344,364.04           542,045,770.17               -2.71%

Subtotal of cash in-flow from investment activity                  11,296,028,290.03         8,362,967,538.51              35.07%

Subtotal of cash out-flow from investment activity                 10,330,540,145.28         7,150,465,232.68              44.47%

Net cash flow from investment activity                               965,488,144.75          1,212,502,305.83             -20.37%

Subtotal of cash in-flow from financing activity                     323,359,165.37           682,812,655.54              -52.64%

Subtotal of cash out-flow from financing activity                   1,062,028,582.97         1,425,273,349.62             -25.49%

Net cash flow from financing activity                                -738,669,417.60         -742,460,694.08

Net increased amount of cash and cash equivalent                     754,908,479.26          1,012,087,381.92             -25.41%

Main reasons for y-o-y major changes in aspect of relevant data
√Applicable   □ Not applicable

1. Cash in/out flow from investment activity have a y-o-y growth, mainly because principal and interest of the

entrust financial received in the Period and expenses for purchasing entrust financial increased on a y-o-y basis;

2. Subtotal of cash in-flow from financing activity decline from a year earlier, mainly because the short-term loans

received in the Period declined on a y-o-y basis.




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                                                                              无锡威孚高科技集团股份有限公司 2016 年年度报告全文


Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company
√Applicable □Not applicable

Mainly due to the investment, and specific influencing factors found more in supplementary information of cash
flow statement carried in Annotation of the Report.

III. Analysis of the non-main business

√Applicable □Not applicable
                                                                                                                                        In RMB

                                         Ratio in total
                         Amount                                          Note                              Whether be sustainable
                                             profit

                                                          Income mainly form the two The               company      joint   ventures    Bosch
                                                          joint ventures the Company Automobile                   Diesel    and      Zhonglian
Investment
                     1,377,945,740.24           75.77% holding      (Bosch        Automobile Electronic production and operation was
income
                                                          Diesel        and         Zhonglian stability,    so    the   investment     can   be
                                                          Electronic)                          sustained stable.

Asset impairment        88,590,217.25             4.87%

Non-operating
                        50,617,212.70             2.78%
income

Non-operating
                        10,328,220.50             0.57%
expense


IV. Assets and liability

1. Major changes of assets composition

                                                                                                                                        In RMB

                            End of 2016                         End of 2015
                                                                                              Ratio
                                         Ratio in                              Ratio in                       Notes of major changes
                        Amount                             Amount                            changes
                                        total assets                          total assets

Monetary fund      3,969,674,068.56         22.99% 3,274,679,732.54               20.85%      2.14%

Account
                   1,324,703,543.17          7.67% 1,261,163,184.87                 8.03%     -0.36%
receivable

                                                                                                       Amount at period-end has major
                                                                                                       growth over that of period-begin
Inventory          1,349,444,535.25          7.82%        865,574,792.41            5.51%     2.31% mainly due to the demand growth in
                                                                                                       market and stock up for spring
                                                                                                       festival

Investment
                       25,113,472.54         0.15%         20,233,111.93            0.13%     0.02%
property



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                                                                             无锡威孚高科技集团股份有限公司 2016 年年度报告全文


Long-term equity
                     3,421,030,760.78        19.82% 3,283,584,245.43            20.91%      -1.09%
investment

Fix assets           2,447,840,035.34        14.18% 2,320,627,323.42            14.78%      -0.60%

                                                                                                      Amount at period-end has major
                                                                                                      declined over that of period-begin
Construction in
                        90,621,102.20         0.52%      162,402,752.68          1.03%      -0.51% mainly due to the new-built plant
process
                                                                                                      from Weifu Leader has turned into
                                                                                                      fixed assets

                                                                                                      Amount at period-end has major
                                                                                                      declined over that of period-begin
Short-term loans      150,000,000.00          0.87%      360,000,000.00          2.29%      -1.42% mainly because the bank loans
                                                                                                      decreased for financing mode
                                                                                                      adjustment

Long-term loans         60,000,000.00         0.35%                                         0.35%


2. Assets and liability measured by fair value

√Applicable □Not applicable
                                                                                                                                     In RMB

                                                                               Devaluatio Amount
                                       Changes of fair     Accumulative
                                                                                  n of         of
                    Amount at the          value           changes of fair                              Amount of sale     Amount in the
         Items                                                                 withdrawi purchase
                   beginning period gains/losses in      value reckoned into                              in the period    end of period
                                                                                ng in the    in the
                                         this period           equity
                                                                                 period      period

Financial assets

3. Available for
sale financial      456,010,900.00      -17,302,800.00       144,722,827.51                               76,278,296.76    361,847,700.00
assets

Subtotal of
                    456,010,900.00      -17,302,800.00       144,722,827.51                               76,278,296.76    361,847,700.00
financial assets

Above total         456,010,900.00      -17,302,800.00       144,722,827.51                               76,278,296.76    361,847,700.00

Financial
                                0.00                                                                                                   0.00
liabilities

Whether there have major changes on measurement attributes for main assets of the Company in report period or not
□ Yes      √No




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                                                                                                             无锡威孚高科技集团股份有限公司 2016 年年度报告全文
3. The assets rights restricted till end of the period

                                                                                                                                                       In RMB

                Item                          Book value at period-end                                           Restriction reason

Monetary fundMonetary funds                         439,209.02           Cash delosit paid for LC

Monetary fundsMonetary fund                        75,100,196.40         Cash deposit paid for bank acceptance

Notes receivableNote receivable                    23,180,000.00         Notes pledge for bank acceptance

Total                                              98,719,405.42



V. Investment

1. Overall situation

□ Applicable √ Not applicable


2. The major equity investment obtained in the reporting period

□ Applicable √ Not applicable


3. The major non-equity investment doing in the reporting period

□ Applicable √ Not applicable


4. Financial assets investment

(1) Securities investment
√Applicable □Not applicable


                                                                                                                                                       In RMB
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                                                                                                                                         无锡威孚高科技集团股份有限公司 2016 年年度报告全文

                        Short                       Accounti
              Code                                                              Changes in fair
 Variety                 form                          ng      Book value at                      Cumulative fair    Current                   Profit and loss in Book value at               Capita
               of                     Initial                                    value of the                                  Current sales                                      Accountin
    of                      of                      measure the beginning of                      value changes in purchase                     the Reporting    the end of the                 l
             securiti             investment cost                               current profit                                   amount                                           g subject
securities              securit                       ment      the period                            equity         amount                         Period           period                   Source
               es                                                                  and loss
                            ies                      model

Domestic                                            Fair                                                                                                                          Financial
   and                                              value                                                                                                                          assets     Own
             600841 SDEC           199,208,000.00              358,278,400.00    12,276,000.00      116,638,275.01             76,278,296.76     12,958,150.00 293,694,000.00
 foreign                                            measure                                                                                                                       available funds
  stocks                                            ments                                                                                                                         for sales

Domestic                Miracl                      Fair                                                                                                                          Financial
   and                  e                           value                                                                                                                          assets     Own
             002009                 69,331,500.00               97,732,500.00   -29,578,800.00       28,084,552.50                              -29,343,300.00    68,153,700.00
 foreign                Logist                      measure                                                                                                                       available funds
  stocks                ics                         ments                                                                                                                         for sales

Total                              268,539,500.00      --      456,010,900.00   -17,302,800.00     144,722,827.51       0.00   76,278,296.76    -16,385,150.00 361,847,700.00        --         --

Disclosure date of                2012-03-24
securities investment
                                  2013-06-04
approval of the Board

Disclosure date of
securities investment
approval of the
Shareholder Meeting (if
applicable)


 (2) Derivative investment

□ Applicable √ Not applicable
The Company has no derivatives investment in the Period



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                                                                                                                                          无锡威孚高科技集团股份有限公司 2016 年年度报告全文
5. Application of raised proceeds

√Applicable □Not applicable


(1)Overall application of raised proceeds

√Applicable □Not applicable
                                                                                                                                                                                        In 10 thousand Yuan

                                                                                                                                                   Total          Usage of the retained
                                                                 Total                                Cumulative raised Ratio of cumulative
                                             Total raised                      Total raised capital                                             accumulativ        raised capitals and      Raised capitals
                          Total raised                       accumulative                                capitals has     raised capitals has
   Year        Way                           capital used                      has purpose of uses                                                e raised         what is expected to       idle for more
                            capitals                         raised capitals                           purpose of uses     purpose of uses
                                              in Period                        changed in Period                                                  capitals         invested with those      than two years
                                                                  used                                 changed in total        changed
                                                                                                                                                  unused                 capitals

            Private                                                                                                                                              No un-used raised fund
2012                            285,012.43        9,525.71      285,012.43                   2,365               12,365                4.34%                 0                                               0
            placement                                                                                                                                            at end of the Period

Total           --              285,012.43        9,525.71      285,012.43                   2,365               12,365                4.34%                 0              --                               0

                                                                           Explanation on General usage of raised capital

On 21 January 2012, the CSRC issued the reply on approving non-public issuance of Weifu High-technology Group Co., Ltd. (ZJXK(2012)No.109), pursuant to which, the Company was
approved to issue new shares not exceeding 112,858,000 by non-public offering. On 10 February 2012, Jiangsu Gongzheng issued capital verification report (SGW(2012)No.B006), stating
that as on 10 February 2012, Weifu High-tech has already issued 112,858,000 RMB common shares (A-share) and raised capital proceeds of RMB2,866,028,910.00. after deduction of
issuance expense of RMB15,904,657.07, the net raise proceeds was RMB2,850,124,252.93. Relevant notice (Notice No.: 2012-002 and No.: 2012-012) has released on Juchao Website dated 1
Feb. 2012 and 28 Feb. 2012 respectively.
On 26 March 2013 and 23 May, the Company holding a 9th session of 7th BOD and AGM of 2012 respectively, for deliberated and approved the Proposal                      of Change the Raised Fund Project
Investment, mainly adjusted part of the content in ―industrialized projects of exhaust After-treatment system products‖. Relevant notice (Notice No.: 2012-001, No.: 2013-007 and No.:
2013-014) have released on Juchao Website dated 28 March 2013 and 24 May 2013 respectively.


On 21 April 2015 and 28 May, the Company holding a 21 st session of 7th BOD and AGM of 2014 respectively, for deliberated and approved the Proposal of Adjusting Part of the Raised Fund
Projects and Capacity and Change Part of the Raised Fund Project Investment, mainly adjusted the plans and capacity of ―R&D of WAPS and Industrialization and Parts Productivity

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                                                                                                                                    无锡威孚高科技集团股份有限公司 2016 年年度报告全文
Improvement for Diesel Common Rail System‖ and the ―Construction project in Industrial Park‖, change the project of ―R&D of Automotive Power Battery Materials and Power Battery‖.
Relevant notice (Notice No.: 2015-003, No.: 2015-010 and No.: 2015-016) have released on Juchao Website dated 23 April 2015 and 29 May 2015 respectively.
On 15 April 2016, the Company holding a 5th session of 8th BOD for deliberated and approved the Proposal of Supplement Circulating Fund with the Remaining Raised Fund and Interest
Permanently, the remaining raised fund and interest income are agreed to supplement working capital of the Company permanently. Relevant notice (Notice No.: 2016-002 and No.: 2016-008)
have released on Juchao Website dated 19 April 2016.
The raised fund project investment have completed till end of the Period, raised fund accumulated to RMB 2,850,124,300.


(2) Situation of committed project of raised proceeds

√Applicable □Not applicable
                                                                                                                                                                           In 10 thousand Yuan

                                          Projects       Total      Total                    Amount of                                  Predicted                      Reach the      Project
                                                                                                               Investment program                          Profit
                                       changed or not committed investment      Amount      accumulated                                serviceable                     predicted    feasibility
  Committed investment projects
                                         (including investment      after     invested in                       till the year-end                        achieved in
   &investment of raised fund
                                          changed      of raised adjustment    this year investment till the                         condition date of                 interest or was changed
                                                                                                                   (3)=(2)/(1)                            this year
                                          partially)   capitals      (1)                    year-end (2)                                  project                         not      hugely or not

Investment project commitment

R&D of WAPS, industrialization,
productivity expansion of diesel            Yes          62,032      59,667          4.04            59,667              100.00% 2015-12-31                 8,908.12      No            No
common rail system parts

Construction project in industrial
                                            Yes          57,750      57,750     7,156.67             57,750              100.00% 2015-12-31               21,139.09       Yes           No
zone

Industrialization of After-treatment
                                            Yes          26,000      26,000                          26,000              100.00% 2015-06-30                11,901.19      No            No
system

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

R&D of Automotive Power Battery
                                            Yes          10,000           0                                                                                               No           Yes
Materials and Power Battery

Equity acquisition                          No         34,381.5    34,381.5                        34,381.5              100.00% 2012-06-30                 5,406.75      Yes           No

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                                                                                                                                             无锡威孚高科技集团股份有限公司 2016 年年度报告全文

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

Permanent liquid assets
                                              No                           12,365         2,365             12,365                 100.00%                                         Yes           No
supplementation

Subtotal of commitment projects               --         285,317.5 285,012.43          9,525.71         285,012.43            --                     --             47,355.15       --           --

                                                                              Investment orientation for fund over-arising

N/A

Total                                         --         285,317.5 285,012.43          9,525.71         285,012.43            --                     --             47,355.15       --           --

                                        Reasons for missing the schedule:
                                        i WAPS R&D and industrialization and production capacity improvement of diesel common rail system components
Situation about not coming up to
                                        The common rail technology route covered the entire Guo IV diesel engine for automobile market, resulting in the market demand for WAPS system not
schemed progress or expected
                                        reaching expectation; the rise in raw material prices of the component of common rail products and the decline in sales prices affected the expected
revenue and the reason(In specific
                                        returns.
project)
                                        ii Industrialization projects of automobile exhaust post-processing system products
                                        The fierce competition in diesel fuel market affected the product sales and prices and then affected the expected benefits.
                                        The Company changed the "automobile power battery materials and power battery research and development projects" to the permanent supplementary
                                        working capital, mainly because that this project still has a great deal of uncertainty in technical route at present and the investment scale is rather large, in

Explanation on great changes of         order to prevent investment risks, the company has always been careful in the implementation of this project; in order to improve the use efficiency of

feasibility of project                  raised funds and protect the interests of investors, the company changed the raised funds of this project to permanent supplementary working capital and
                                        invested all of them in the company's main business. But at the same time, the company continued to track the development of power batteries, continued
                                        to carry out the cooperation among production, study and research, and timely made investments with its own funds according to market changes.

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

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

Adjustment of implementation way Applicable


                                                                                                                                                                                                        26
                                                                                                                                       无锡威孚高科技集团股份有限公司 2016 年年度报告全文
for investment project of raised       Occurred in the Period
capitals                               The Company has completed the project investment of raised funds, remaining raised funds of RMB 23.65 million for the WAPS research and
                                       development and industrialization and the production capacity improvement of diesel common rail system components. In order to improve the use
                                       efficiency of raised funds, reduce the company's financial expenses and maximize the interests of the company and shareholders, the company held the 5th
                                       meeting of the 8th Board of Directors on April 15, 2016, considered and approved the company's Proposal on Using the Surplus Raised Funds and Interest
                                       Income to Permanently Replenish the Working Capital, and agreed the company to use the surplus raised funds and interest income to permanently
                                       replenish the working capital.

                                       Applicable

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

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

                                       Applicable
                                       1.The Company has completed the project investment of raised funds. The surplus raised funds of RMB 23.65 million were used for the WAPS research
                                       and development and industrialization and the production capacity improvement of diesel common rail system components. In the implementation
                                       process, based on the saving principle and ensuring the implementation effect of the project, this project strictly controlled the costs by strengthening the
                                       cost control, supervision and management, while implemented the resource sharing model to reduce the repeated investment, and thus reduced total
Remaining raised fund and reasons
                                       expenditures for the project;
from project implementation
                                       1. Since the implementation of the company’s fund-raising project, the company took special account management for the raised funds, and the raised
                                       funds generated a certain interest income during the deposit;
                                       3. On April 15, 2016, the 5th meeting of the 8th Board of Directors of the company considered and approved the Proposal on Using the Surplus Raised
                                       Funds and Interest Income to Permanently Replenish the Working Capital, and agreed the company to use the surplus raised funds and interest income to
                                       permanently replenish the working capital.

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                                                                                                                                          无锡威孚高科技集团股份有限公司 2016 年年度报告全文

Usage and trend of unused raised
                                        No un-used raised fund at end of the Period
capitals

Issues or other conditions found in
                                        Not applicable
use of fund raised and disclosure


(3)The changed project of raised proceeds

√ Applicable □ Not applicable
                                                                                                                                                                                In 10 thousand Yuan

                                                                                                                                                                             Reach
                                                                                                          Accumulativ                                                                      Project
                                                                                                                                                                               the
                                                                          Total raised     Amount           e funds       Investment          Predicted                                 feasibility was
                                                                                                                                                                 Profit      predicte
                                                                         funds plans to    actually         actually      program till       serviceable                                   changed
      Project after changed           Corresponding original project                                                                                           realized in      d
                                                                         invested after invested in the    invested      the period-end    condition date of                            hugely or not
                                                                                                                                                                this year    interest
                                                                          changed (1)       Period        ended as the    (3)=(2)/(1)           project                                  after project
                                                                                                                                                                              or not
                                                                                                           Period (2)                                                                      changed
                                                                                                                                                                              (Y/N)

                                    R&D of WAPS, industrialization,
Permanent liquid assets
                                    productivity expansion of diesel              2,365          2,365          2,365         100.00%                                          Yes           No
supplementation
                                    common rail system parts

R&D of WAPS,
                                    R&D of WAPS, industrialization,
industrialization, productivity
                                    productivity expansion of diesel             59,667           4.04         59,667         100.00% 2015-12-31                  8,908.12     No            No
expansion of diesel common rail
                                    common rail system parts
system parts

Construction project in             Construction project in industrial
                                                                                 57,750       7,156.67         57,750         100.00% 2015-12-31                21,139.09      Yes           No
industrial zone                     zone

Permanent liquid assets             R&D of Automotive Power Battery
                                                                                 10,000                        10,000         100.00%                                          Yes           Yes
supplementation                     Materials and Power Battery

Automotive exhaust                  Automotive exhaust After-treatment           26,000                        26,000         100.00% 2015-06-30                11,901.19      No            No
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                                                                                                                                   无锡威孚高科技集团股份有限公司 2016 年年度报告全文
After-treatment system products system products industrialization
industrialization projects       projects

Total                                              --                         155,782        9,525.71      155,782        --                --              41,948.4     --           --

                                 I. Occurred in the Period
                                 The fund-raised project investment have completed in the Period, remaining raised fund of 23.65 million Yuan, which from the R&D of WAPS Development
                                 and industrialization and productivity expansion of diesel common rail system parts. With purpose of improving efficiency of the use of raised fund, reducing
                                 the financial expenses of the Company and maximizing shareholders’ interest; the Company holding the 5 th session of 8th BOD on 15 April 2016, deliberated
                                 and approved the Proposal of Supplement Circulating Fund with the Remaining Raised Fund and Interest Permanently, the remaining raised fund and interest
                                 income are agreed to supplement working capital of the Company permanently. Relevant notice (Notice No.: 2016-002 and No.: 2016-008) have released on
                                 Juchao Website dated 19 April 2016.
                                 II. Occurred in previous year
                                 (i) The Company held the 21st session of the 7th BOD on 21 April 2015 and the 2014 annual general meeting on 28 May 2015 to consider and approve the
                                 resolution on adjustment to plans and production capacity of certain investment projects funded with raised proceeds and alteration to certain such investment

Explanation on reasons of the projects. The relevant announcements (No. 2015-003, No. 2015-010, and No. 2015-016) were published on Juchao Information Website dated 23 April and 29
changes,      decision-making May 2015.
procedures    and    information Reasons for the adjustments and alteration and details thereof are set out below:
disclosure (explain by specific 1. WAPS research and development and industrialization and production capacity improvement of diesel common rail system spare parts
project)
                                ①Reasons for alteration: since the State has clearly determined the time to implement the national IV emission rules, market conditions experience substantial
                                 changes. There was a burst of increasing demands for common rail products and spare parts. Meanwhile, WAPS system had limited development space in
                                 national IV auto-applicable diesel machine, and market demands for WAPS system in non-road machinery market will be uncertain in future. In order to adapt
                                 to market variations, the Company made adjustments to investment plans and production capacity of this project funded with raised proceeds. In particular, it
                                 increased production capacity of common rail spare parts and reduced that of WAPS system, aiming to meet both processing demands for common rail spare
                                 parts and WAPS system in future through adjusting equipment injection structure and increasing flexibility of processing. In addition, the Company increased
                                 appropriately the minimum liquidity required for high pressure common rail spare parts. It seeks suitable opportunity to make subsequent injection to WAPS
                                 system with its own capital when the relevant market is matured in terms of demands.
                                 ②Adjustments to the plans and production capacity of this project: subject to the total investment of RMB650 million remaining unchanged, investment for
                                 fixed assets is cut down to RMB440.73 million instead of the original RMB500 million; liquidity investment is raised to RMB209.27 million instead of the
                                 original RMB150 million.        WAP3 system (heavy) by the original program of the 200 thousand sets adjusted for 50 thousand sets, common rail system

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                                                                                                     无锡威孚高科技集团股份有限公司 2016 年年度报告全文
components from the original program of the 11.8 million pieces adjusted to 19. 23 million pieces.
③Completion date of this project is adjusted to 31 December 2015.
2. Construction project in industrial zone
① Reasons for alteration: since the State has clearly determined the time to implement the national IV emission rules, market conditions experience
substantial changes, there is a burst of increasing demands for common rail products and uncertainty exists in market demands for WAPS system, the
Company accordingly makes adjustments to the investment plan and production capacity of this project in order to adapt to the changing market demands.
②Adjustments to the plans and production capacity of this project: subject to the total investment of RMB650 million remaining unchanged, investment for
fixed assets is raised to RMB599.15 million instead of the original RMB572.50 million; liquidity investment is cut down to RMB50.85 million instead of the
original RMB77.50 million, and additional liquidity required in subsequent periods will be funded with its own capital. WAP2 system (medium) by the
original program of the 100 thousand sets adjusted for 30 thousand sets, common rail system components from the original program of the 810 thousand sets
adjusted to 1.25 million sets. As for specific implementation, processing for the key common rail high pressure pump spare parts was implemented by the
machinery system segment of Weifu headquarter office. With utilization of existing equipment, the Company was able to eliminate certain equipment that did
not satisfy the requirements for environment protection and crafts processing, acquired processing facilities that delivered guaranteed and flexible
performance, targeting to balance its processing capability. Capital needed for equipment investment was mainly funded with its own capital. Plant
construction was mainly funded with raised proceeds. The general installment of high pressure common rail pump was undertaken by its wholly-owned
subsidiary Weifu Auto Diesel. Equipment injection occurred during assemble procedure was funded with the own capital injected by Weifu Auto Diesel rather
than with raised proceeds. And it was finally sold to Bosch Auto Diesel System Co., Ltd. by Weifu Auto Diesel.
③Completion date of this project is adjusted to 31 December 2015.
3. Auto power battery materials and power battery research and development project
① Reasons for alteration: since there exists extremely huge uncertainty to implement this project technically and investment scale is large, the Company has
always been prudent to implementation of this project to prevent from investment risk. In order to improve utilization efficiency of raised proceeds and
protect investors’ interests, the Company decided to change the raised proceeds for this project to permanent supplementary liquidity which will be all
invested in its major business operation. Meanwhile, the Company will continue to follow up development of power battery and continue cooperation in terms
of production, study and research, and will make prompt investment with its own capital as appropriate.
②Raised proceeds for this project changed to be permanent supplementary liquidity instead.
(II) The Company convened the 9th meeting of the 7th board of directors on 26 March 2013 and the 2012 annual general meeting on 23 May 2013, to consider
and approve the report relating to change of matters scheduled under the fund raising investment. The relevant announcement was published on Juchao
Information website dated 28 March 2013 and 24 May 2013, with announcement No. of 2013-001, 2013-007 and 2013-014.
The fund raising investment project subject to change refers to the ―industrialization project of auto exhaust gas rear disposal system products‖. The major

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                                                                                                                                            无锡威孚高科技集团股份有限公司 2016 年年度报告全文
                                        reason and specific changes are set out below:
                                        ①reason for change: taking into account the uncertainty arising from update of the prevailing national emission regulations (namely from level III to level IV)
                                        and insufficient land supply at the time being, the original investment plan of this fund raising investment project can no longer satisfy the development need
                                        of Wuxi Weifu Leader Catalytic Converter Company Limited which was a controlling subsidiary of the implementation entity. As such, the Company needs to
                                        make corresponding adjustment to certain content of this project.
                                        ②the aggregate investment of this project has been changed to RMB340 million instead of the original RMB260 million, the gap of which will be filled up by
                                        its own capital in full.
                                        ③the completion date of this project has been changed to 30 June 2015.

                                        Reasons for not achieving the expected return

Particular and reasons of fail to I. R&D of WAPS, industrialization, productivity expansion of diesel common rail system parts
reached the target advance or           The common rail technology route covers all over the country in market of diesel engine for automobile, the market demand for WAPS system are fails to
anticipated income (explain by          reached the expectation; soaring raw materials and declined of selling price impacts the predicted return as results.
specific project)                       II. Automotive exhaust After-treatment system products industrialization projects
                                        The competition of diesel oil purifier comes more and more intensified in the market, sales and price of the products are being impact.

                                        Major reasons for change of ―auto power battery materials and power battery R&D project‖ into ―permanent supplement for liquidity‖ occurred in previous
Explanation on major changes            year: there is substantial uncertainty for this project in terms of technology routes; in order to maximize the utilization efficiency of raised proceeds and to
on project feasibility after            protect investors’ interests, the Company decided to change the raised proceeds of this project into permanent supplement for liquidity, which meant that they
project changed                         would be used for the Company’s principal business in full. However, the Company will continue to follow up development of power battery, continue
                                        cooperation between production, study and research, and make investment with its own capital if necessary based on market conditions.


VI. Significant asset and equity sales

1. Significant asset sales

□ Applicable       √ Not applicable
No significant assets being sold in the Period




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                                                                                                                             无锡威孚高科技集团股份有限公司 2016 年年度报告全文
2. Significant equity sales

□ Applicable    √ Not applicable


VII. Analysis of the main stock-jointly and controlling subsidiary

√ Applicable    □ Not applicable
Main subsidiary and stock-jointly enterprise with over 10% influence on net profit of the Company
                                                                                                                                                                        In RMB

  Company
                     Type            Main business         Register capital      Total assets       Net Assets         Operating revenue    Operating profit     Net profit
    name

Weifu
                                Fuel injection system
Automotive      Subsidiary                              300,000,000.00          1,889,953,665.83    1,344,367,791.07     1,496,636,409.57      228,956,870.22    194,322,883.83
                                products
Diesel

                                After-treatment
Weifu Leader Subsidiary                                 502,596,300.00          2,803,292,252.73    1,451,597,149.76     2,261,240,878.55      171,052,164.14    160,034,554.74
                                system products

Weifu                           Fuel injection system
                Subsidiary                              346,286,825.80          1,039,065,069.01     778,457,482.15        515,817,815.62       44,872,010.29     57,021,640.41
Jinning                         products

Bosch
                Joint-stock     Fuel injection system
Automobile                                              USD241,000,000.00       8,381,153,378.00    5,479,541,965.00    10,539,139,732.00    2,632,209,471.00   2,162,700,491.00
                company         products
Diesel

Zhonglian       Joint-stock     Gasoline system
                                                        600,620,000.00          4,073,480,665.06    4,049,988,526.32        21,543,597.74    1,651,394,925.27   1,644,739,922.31
Electronic      company         products

Subsidiary obtained and disposed in the Period
□ Applicable    √ Not applicable
Statement on main controlling and stock-jointly company

Thanks to the opportunity of non-road T3 emission ugrade for Weifu Jinning, the operation revenue, profit and net profit all have a better grwoth from a year eariler

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VIII. The structured subject controlled by the Company

□ Applicable   √ Not applicable


IX. Prospects for future development

(I) Industry competition pattern and development trend
The Company belongs to automobile parts industry, and mainly engaged in the production and sales of diesel fuel
injection system products, exhaust after-treatment system products and intake system products. It is closely related
with the macroeconomic situation, the auto industry policy and the auto market demand. From the development
history of China's auto market, China's auto market has entered the smooth and steady and mature stage after more
than ten years of rapid growth, the future annual sales growth will slow down, and the key technology will be
changing with each passing day. The current pollution and haze have become a social problem with widespread
concern, for which the government will further strengthen the strict implementation of emission regulations and
increase the supervision and remediation efforts to motor vehicle emissions, and also will be committed to the
promotion of the development of new energy car. In order to meet the upgrading requirements of emission
regulations, the company will plan the research and development direction of new technologies, actively promote
the product structure adjustment, accelerate the development of new business growth point, continuously enhance
the competitiveness and build a new pattern of development.



(II) The Company's development strategy
Actively develop the fuel injection system products, automobile after-treatment system products and engine air
intake system (superchargers) that meet the national energy saving and emission reduction regulations,
comprehensively promote the system integration (service) capabilities, actively lay out the new business, develop
new markets, and build new engines for the enterprises’ sustainable development.


(III) 2017 annual operating plan
1. Take the market as a guide, consolidate the market share of old products, actively develop new products and

new markets, and positively access to new projects to enhance the share, focus on the product upgrades, accelerate

the breakthrough of key technologies, improve and enhance the system integration capabilities, and strive to

achieve sales growth.
2. Strengthen the quality precontrol, continue to deepen WPS, promote the deep integration of informatization and
industrialization, refine on the process, be strict in the quality, achieve products without defect, streamline the
process, improve the whole members, and strive to improve the quality and efficiency;
3. Strengthen the pre-research and risk assessment to investment projects, accomplish the assessment and analysis
of internal control effectiveness, and prevent the occurrence of major risks. Strengthen the inventory resource
analysis, prevent the asset risks, and explore the quota management of subsidiaries’ working capital;
4. Take the information system as the carrier, optimize the cost approval flow, payment flow, financial transaction
flow, and achieve the synergistic integration; take cost as the center and capital as the link, strengthen the budget

                                                                                                                  33
                                                                    无锡威孚高科技集团股份有限公司 2016 年年度报告全文


management, and further enhance the management quality;
5. Continue to promote the integration and use efficiency of group networks and communications, strengthen
the data security of application intranet; promote the hyper operator center in the group, realize the resource
sharing in the entire group, and improve the design capabilities of engineering development;
6. Strengthen the validity assessment management to the implementation of remuneration and performance system,
adhere to the incentive and assessment principles simultaneously, rely on the award platform of incentive funds
and the motivation system for talents, and accomplish the company's core talent team construction;
7. Combine with its own characteristics and strategic objectives, actively and reliably look for new business
development opportunities, lay out the core components business of future auto industry, and lay the foundation
for transformation and upgrading.
(IV) Possible risks
1. The increase in uncertainty of world economic, the slowdown in the domestic macroeconomic growth and the
weakening in the strength and effect of industry preferential policies will influence the growth of the automobile
market.
2. The continuous rise in labor costs, the increase in logistics costs and the fluctuations in raw material prices will
increase the company's cost pressures.



X. Reception of research, communication and interview

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

√ Applicable    □ Not applicable
          Time              Way        Type                            Basic situation index of investigation

                            Spot
2016-05-26                           Institution   The scene of the shareholders’ general meeting
                          research

1 Jan.2016- 31             Written                 The Company answered 307 questions for investors online through the
                                     Individual
Dec.2016                   inquiry                 investor relations interactive platform(http://irm.p5w.net/dqhd/sichuan/)

                         Telephone                 Basic condition of the Company, the implementation of IV standards in
1 Jan.2016- 31
                        communicat   Individual    China and views on market in 2016, communication with investors by
Dec.2016
                             ion                   telephone more than 400

Reception (times)                                                                                                              715

Number of hospitality                                                                                                           50

Number of individual reception                                                                                                 358

Number of other reception                                                                                                      307

Disclosed, released or let out major undisclosed
                                                                                                                                N
information (Y/N)




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                                                                          无锡威孚高科技集团股份有限公司 2016 年年度报告全文



                                          Section V. Important Events

I. Profit distribution plan of common stock and capitalizing of common reserves plan

Formulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy during
the Reporting Period
√ Applicable     □ Not applicable
1. Cash dividend policy: carry out bonus distribution according to the regulations in Article of Association
2. In reporting period, the Company implemented the profit distribution for year of 2015, based on the total share
capital 1,008,950,570 shares, distributed 5.00 Yuan (tax included) bonus in cash for every 10 shares held, no
capitalization from public reserves. The plan was completed in July 2016. the implementation of the Company's
cash dividend policy is in compliance with the provisions of "Articles of Association", relevant decision-making
procedures are complete and fully listen to the views of independent directors and minority shareholders and
maintain the legitimate rights and interests of minority shareholders.

                                               Special explanation on cash dividend policy

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

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

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

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

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

Condition and procedures are compliance and transparent while the cash bonus policy adjusted or changed
                                                                                                                 Not applicable
(Y/N):
Profit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan (pre-plan) in latest three years
(including the reporting period)
The profit distribution plan for 2016: based on total share capital of 1,008,950,570 shares at end of 2016,
distribute cash dividend of RMB 6.00 (tax included) for every 10 shares, and no capitalization of capital reserve.
The profit distribution plan for 2015: based on total share capital of 1,008,950,570 shares at end of 2015,
distribute cash dividend of RMB 5.00 (tax included) for every 10 shares, and no capitalization of capital reserve.
The plan has been implemented completely in July 2016.
The profit distribution plan for 2014: based on total share capital of 1,020,200,992 shares at end of 2014,
distribute cash dividend of RMB 4.00 (tax included) for every 10 shares, and no capitalization of capital reserve.
The plan has been implemented completely in June 2015.

Cash dividend of common stock in latest three years (including the reporting period)
                                                                                                                             In RMB

 Year for       Amount for     Net profit attributable to common Ratio in net profit attributable to Amount for cash Proportion for
  bonus     cash bonus (tax        stock shareholders of listed     common stock shareholders of   bonus by other    cash bonus by
  shares        included)     company in consolidation statement     listed company contained in        ways          other ways


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                                                                          无锡威孚高科技集团股份有限公司 2016 年年度报告全文


                                        for bonus year                  consolidation statement

2016       605,370,342.00                        1,672,224,317.05                            36.20%                0.00           0.00%

2015       504,475,285.00                        1,515,388,285.71                            33.29%                0.00           0.00%

2014       408,080,396.80                        1,539,439,686.81                            26.51%                0.00           0.00%

The Company gains profits in reporting period and the retained profit of common stock shareholders provided by parent company is
positive but no plan of cash dividend proposed of common stock
□ Applicable    √ Not applicable


II. 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)                                                                                   6.00

Shares added for every 10-share base (Share)                                                                                          0

Equity base of distribution plan (Share)                                                                                   1,008,950,570

Total cash dividend(RMB) (Tax included)                                                                                   605,370,342.00

Distributable profits (RMB)                                                                                           5,525,644,079.79

Ratio of cash dividend in total profit distribution                                                                            100.00%

                                                         Cash dividend policy:

Other

                         Detail explanation on profit distribution or capitalization from capital public reserve

Pursuit to the Standard Unqualified Auditor’s Report for year of 2016 issued by Jiangsu Gongzheng, the profit available for
distribution of the parent company for year of 2016 are as: net profit of the parent company for year of 2016 RMB 1,322,660,700,
plus retained profit at beginning of the 2016 RMB 4,707,458,600, deducted cash bonus distributed for year of 2015 RMB
504,475,300, the distributable profit at end of the Period was RMB 5,525,644,000.
Profit distribution plan for year of 2016: on base of the total 1,008,950,570 shares at end of 2016, distributed 6.00 Yuan (tax
included) in cash for each 10 shares, no bonus, and no transfer of reserve to common shares. The remaining retained profit carried
forward to next year. Profits allocate for year of 2016 amounting to RMB 605,370,342.


III. Implementation of commitment

1. Commitments that the company, shareholders, actual controller, offeror, directors, supervisors, senior
management or other related parties have fulfilled during the reporting period and have not yet fulfilled by
the end of reporting period
□ Applicable    √ Not applicable
No condition of the above mentioned occurred in the Period




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                                                                        无锡威孚高科技集团股份有限公司 2016 年年度报告全文


2. Concerning assts or project of the Company, which has profit forecast, and reporting period still in
forecasting period, explain reasons of reaching the original profit forecast

□ Applicable   √ Not applicable


IV. Non-operational fund occupation from controlling shareholders and its related party

□ Applicable   √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.


V. Explanation from Board of Directors, Supervisory Committee and Independent Directors
(if applicable) for “Qualified Opinion” that issued by CPA

□ Applicable   √ Not applicable


VI. Particulars about the changes in aspect of accounting policy, estimates and calculation
method compared with the financial report of last year

□ Applicable   √ Not applicable
No particulars about the changes in aspect of accounting policy, estimates or calculation method in Period.


VII. Major accounting errors within reporting period that needs retrospective restatement

□ Applicable   √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.


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

□ Applicable   √ Not applicable
No changes in consolidation statement’s scope in the Period


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

Accounting firm appointed

                                                                       Jiangsu Gongzheng Tianye Certified Public Accountants
Name of domestic accounting firm
                                                                       Co., Ltd. (Special Ordinary Partnership)

Remuneration for domestic accounting firm (in 10 thousand Yuan)                                                                142

Continuous life of auditing service for domestic accounting firm                                                                25

Name of domestic CPA                                                                                      Bo Lingjing, Meng Yin


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                                                                            无锡威孚高科技集团股份有限公司 2016 年年度报告全文


Re-appointed accounting firms in this period

□Yes           √No
Appointment of internal control auditing accounting firm, financial consultant or sponsor

√ Applicable     □ Not applicable

Being deliberated in Annual Shareholders General Meeting of 2015, Jiangsu Gongzheng was appointed as audit
accounting firm for internal control of the Company for year of 2015. In the Period, auditing charge for internal
control amounting to RMB 160,000.

X. Particular about suspended and delisting after annual report disclosed

□ Applicable     √ Not applicable


XI. Bankruptcy reorganization

□ Applicable     √ Not applicable
No bankruptcy reorganization for the Company in reporting period


XII. Significant lawsuits and arbitrations of the Company

□Applicable           √Not applicable
No significant lawsuits and arbitrations occurred in the reporting period


XIII. Penalty and rectification

□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.


XIV. Integrity of the company and its controlling shareholders and actual controllers

□ Applicable     √ Not applicable


XV. Implementation of the company’s stock incentive plan, employee stock ownership plan or
other employee incentives

√ Applicable     □ Not applicable

On June 20, 2014, the Company held the 2013 AGM which deliberated "the Company’s incentive fund
implementation methods", the Company has fully implemented it during the reporting period, completed the
medium and long term special incentive allocation for core talents, farthest mobilized the enthusiasm and
creativity of employees, stabilized the employees, attracted the high-quality talents, and enhance the cohesive
force in enterprise.

XVI. Major related transaction
1. Related transaction with routine operation concerned
√ Applicable     □ Not applicable


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                                                                               无锡威孚高科技集团股份有限公司 2016 年年度报告全文


                                                                                 Tradin Wheth
                                                             Related             g limit er over
                                                    Relate             Proportio                 Clearing Availa
                        Type of Content Pricin              transactio           approv the                                  Index
                                                        d                 n in                   form for ble      Date of
    Related   Relations related of related     g            n amount              ed (in approv                                of
                                                    transac             similar                   related similar disclosur
     party       hip   transactio transacti princip           (in 10               10       ed                              disclos
                                                      tion             transacti                 transacti market     e
                           n         on        le           thousand             thousa limited                               ure
                                                     price                ons                       on     price
                                                              Yuan)                nd    or not
                                                                                 Yuan) (Y/N)
Weifu                                                                                                                       2016-04- Notice
              Associate Procurem                Fair                                                   Accordi
Precision                                                Marke                                                     Market 19        No.:
              d            ent of     Goods    market               3,484.39    0.75%    3,500   No    ng to the
Machiner                                                 t price                                                   price            2016-0
              company goods                    pricing                                                 contract
y                                                                                                                                   05

              Associate
              d
              company,
              controllin
Bosch                      Procurem             Fair                                                   Accordi
              g                                          Marke                                                     Market
Diesel                     ent of     Goods    market              15,196.95    3.27% 15,000     Yes   ng to the
              subsidiar                                  t price                                                   price
System                     goods               pricing                                                 contract
              y of
              German
              Bosch
              Company

              Joint
Weifu                      Procurem             Fair                                                   Accordi
              venture                                    Marke                          135,00                     Market
Environm                   ent of     Goods    market              102,020.2   21.94%            No    ng to the
              of Weifu                                   t price                            0                      price
ent                        goods               pricing                                                 contract
              Leader

              Second
              largest      Procurem             Fair                                                   Accordi
German                                                   Marke                                                     Market
              sharehold ent of        Goods    market               8,795.62    1.89% 10,000     No    ng to the
Bosch                                                    t price                                                   price
              er of the    goods               pricing                                                 contract
              Company

Weifu
              Associate               Goods     Fair                                                   Accordi
Precision                  Sales of                      Marke                                                     Market
              d                       and labor market               275.54     0.04%     500    No    ng to the
Machiner                   goods                         t price                                                   price
              company                 forces   pricing                                                 contract
y

              Associate
              d
              company,
              controllin
Bosch                                 Goods     Fair                                                   Accordi
              g            Sales of                      Marke 175,091.5                160,00                     Market
Diesel                                and labor market                         27.26%            Yes   ng to the
              subsidiar goods                            t price          3                 0                      price
System                                forces   pricing                                                 contract
              y of
              German
              Bosch
              Company



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                                                                              无锡威孚高科技集团股份有限公司 2016 年年度报告全文


           Joint
Weifu                              Goods        Fair                                                 Accordi
           venture      Sales of                         Marke                                                   Market
Environm                           and labor market                4,016.21    0.63%   4,000   Yes   ng to the
           of Weifu goods                                t price                                                 price
ent                                forces      pricing                                               contract
           Leader

           Second
           largest                              Fair                                                 Accordi
German                  Sales of                         Marke                                                   Market
           sharehold               Goods       market                  5.44             500    No    ng to the
Bosch                   goods                            t price                                                 price
           er of the                           pricing                                               contract
           Company

           First
           majority                             Fair                                                 Accordi
Industry                           Rental                Marke                                                   Market
           sharehold Other                     market                97.17              100    No    ng to the
Group                              fee paid              t price                                                 price
           er of the                           pricing                                               contract
           Company

           Associate
           d
           company,
                                   Technical
           controllin
Bosch                              commissi Fair                                                     Accordi
           g                                             Marke                                                   Market
Diesel                  Other      on          market               167.08              300    No    ng to the
           subsidiar                                     t price                                                 price
System                             payable     pricing                                               contract
           y of
                                   etc.
           German
           Bosch
           Company

           Second
                                   Technical
           largest                              Fair                                                 Accordi
German                             commissi              Marke                                                   Market
           sharehold Other                     market               469.35             1,200   No    ng to the
Bosch                              on paid               t price                                                 price
           er of the                           pricing                                               contract
                                   etc.
           Company

           Joint
Weifu                                           Fair                                                 Accordi
           venture                 Rental                Marke                                                   Market
Environm                Other                  market               227.49              250    No    ng to the
           of Weifu                fee                   t price                                                 price
ent                                            pricing                                               contract
           Leader

           Associate
           d
           company,
Bosch      controllin              Purchasi     Fair                                                 Accordi
                                                         Marke                                                   Market
Diesel     g            Other      ng fixed market                       0              500    No    ng to the
                                                         t price                                                 price
System     subsidiar               assets      pricing                                               contract
           y of
           German
           Bosch



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                                                                                 无锡威孚高科技集团股份有限公司 2016 年年度报告全文


              Company

              Joint
Weifu                                 Purchasi    Fair                                                   Accordi
              venture                                      Marke                                                     Market
Environm                    Other     ng fixed market                   31.65                    Yes     ng to the
              of Weifu                                     t price                                                   price
ent                                   assets     pricing                                                 contract
              Leader

              Joint
Weifu                                 Sales of    Fair                                                   Accordi
              venture                                      Marke                                                     Market
Environm                    Other     fixed      market                   0.48                   Yes     ng to the
              of Weifu                                     t price                                                   price
ent                                   assets     pricing                                                 contract
              Leader

                                                                                        330,85
Total                                              --        --      309,879.1    --              --        --         --     --   --
                                                                                             0

Detail of sales return with major amount
                                                                                        Not applicable
involved

                                                 Being deliberated and approved by AGM of 2015, total related transaction for year of
                                                 2016 predicted as 3308.5 million Yuan, actually 3098.791 million Yuan occurred in the
Report the actual implementation of the Period, the related transaction classified according to types are as: 1. it estimated that
daily related transactions which were purchasing goods and labor service from related party in 2016 will up to 1635 million
projected about their total amount by Yuan, while 1294.9716 million Yuan occurred actually in the Period; 2. it estimated that
types   during        the   reporting period(if sales of goods and labor service to related party in 2016 will up to 1650 million Yuan,
applicable)                                      while 1793.8872 million Yuan actually occurred; 3. it estimated that other related
                                                 transactions with related party will up to 23.5 million Yuan while 9.9322 million Yuan
                                                 actually occurred.

Reasons for major differences between
                                                                                        Not applicable
trading price and market reference price

2. Related transactions by assets acquisition and sold
□ Applicable         √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period


3. Main related transactions of mutual investment outside
□ Applicable         √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period


4. Contact of related credit and debt
□ Applicable         √ Not applicable
The Company had no contact of related credit and debt in the reporting period.


5. Other related transactions

□ Applicable         √ Not applicable
The company had no other significant related transactions in reporting period.




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                                                                               无锡威孚高科技集团股份有限公司 2016 年年度报告全文


XVII. Significant contract and implementations

1. Trusteeship, contract and leasing

(1) Trusteeship

□ Applicable   √ Not applicable
No trusteeship for the Company in reporting period



(2) Contract
□ Applicable   √ Not applicable
No contract for the Company in reporting period


(3) Leasing
□ Applicable   √ Not applicable
No leasing for the Company in reporting period


2. Major guarantees
√ Applicable   □ Not applicable


(1) Guarantees
                                                                                                                         In 10 thousand Yuan
                    Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)

                           Related                                                                                                 Guarante
                                                    Actual date of
                          Announce                                            Actual                                                 e for
Name of the Company                    Guarantee happening (Date                                              Guarantee Implemen
                             ment                                           guarantee      Guarantee type                           related
       guaranteed                         limit       of signing                                                term   ted (Y/N)
                          disclosure                                           limit                                                party
                                                      agreement)
                             date                                                                                                   (Y/N)

Total approving external guarantee in report period                       Total actual occurred external guarantee in report
                                                                      0                                                                       0
(A1)                                                                      period (A2)

Total approved external guarantee at the end of                           Total actual balance of external guarantee at the end
                                                                      0                                                                       0
report period ( A3)                                                       of report    period (A4)

                                            Guarantee of the Company and the subsidiaries

                           Related                                                                                                 Guarante
                                                     Actual date of
                          Announce                                            Actual                                                 e for
Name of the Company                    Guarantee happening (Date                                              Guarantee Implemen
                             ment                                           guarantee      Guarantee type                           related
       guaranteed                         limit        of signing                                               term   ted (Y/N)
                          disclosure                                           limit                                                party
                                                      agreement)
                             date                                                                                                   (Y/N)

Ningbo Tianli
                                                                                            Joint liability
Turbocharging            2016-10-27          6,000 2016-11-11                 6,000                              5        No         No
                                                                                              guaranty
Technology Co., Ltd.




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                                                                               无锡威孚高科技集团股份有限公司 2016 年年度报告全文


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

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

                                             Guarantee of the subsidiaries for the subsidiaries

                            Related                                                                                                  Guarante
                                                      Actual date of
                           Announce                                           Actual                                                     e for
Name of the Company                      Guarantee happening (Date                                            Guarantee Implemen
                             ment                                            guarantee    Guarantee type                                related
        guaranteed                         limit          of signing                                            term     ted (Y/N)
                           disclosure                                          limit                                                    party
                                                          agreement)
                              date                                                                                                      (Y/N)

Total amount of approving guarantee for                                    Total amount of actual occurred guarantee for
                                                                       0                                                                          0
subsidiaries in report period (C1)                                         subsidiaries in report period (C2)

Total amount of approved guarantee for                                     Total balance of actual guarantee for subsidiaries at
                                                                       0                                                                          0
subsidiaries at the end of reporting period (C3)                           the end of reporting period (C4)

                          Total amount of guarantee of the Company( total of three abovementioned guarantee)

Total amount of approving guarantee in report                              Total amount of actual occurred guarantee in report
                                                                  6,000                                                                   6,000
period (A1+B1+C1)                                                          period (A2+B2+C2)

Total amount of approved guarantee at the end of                           Total balance of actual guarantee at the end of report
                                                                  6,000                                                                   6,000
report period (A3+B3+C3)                                                   period (A4+B4+C4)

The proportion of the total amount of actually guarantee in the net
                                                                                                                                          0.46%
assets of the Company (that is A4+ B4+C4)

Including:

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

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

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

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

Explanations on possibly bearing joint and several liquidating responsibilities for undue guarantees
                                                                                                                       Not applicable
(if applicable)

Explanations on external guarantee against regulated procedures (if applicable)                                        Not applicable

Explanation on guarantee with composite way


(2)Guarantee outside against the regulation

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




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                                                                             无锡威孚高科技集团股份有限公司 2016 年年度报告全文


3. Entrust others to cash asset management

(1) Trust financing

√ Applicable      □ Not applicable
                                                                                                                           In 10 thousand Yuan

                                                                                                  Amount
                                                                                                  of reserve                          Actual
        Wheth                                                                         Principal      for                              collect
                                                                                                                             Actual
            er                      Trust                                              actually devaluati                                  ed
                                                                       Criteria for                            Anticipat gains/loss
Name related           Type      financing Start date     End date                    collected     on of                             gains/l
                                                                      fixing reward                            ed income      es in
           trade                  amount                                                in the    withdraw                             osses
                                                                                                                             period
         or not                                                                         Period     ing (if                                 in
                                                                                                  applicabl                           period
                                                                                                      e)

                   Bank
                                                                     Maximize
                   financing,
                                                                     annualized ate                                                   Timely
Bank,              information                2016-01-0 2018-10-2
        No                          978,920                          of return          975,920             0 20,504.7 20,504.7 payme
trust              management                 1          0
                                                                     agreed in                                                        nt
                   plan, trust
                                                                     contract
                   products

Total                               978,920       --            --          --          975,920                 20,504.7 20,504.7          --

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

Principal uncollected for
overdue and accumulated                                                                                                                         0
earnings

Lawsuit involved (if
                                 N/A
applicable)

Disclosure date for approval
from the Board for trust         2016-04-15
financing (if applicable)

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

                                 On 14 April 2017, the Company held the 10th session of the 8th BOD which deliberated and approved
                                 the "Proposal of trust management for the company’s own idle funds", agreed the trust management
Whether has trust financing
                                 for the Company's own idle funds, the amount is not more than 30% of the latest net assets that being
plan in future
                                 audited at the end of the year, and the above amount can be repeatedly used for investing in the
                                 low-risk financial products.



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                                                                           无锡威孚高科技集团股份有限公司 2016 年年度报告全文


(2) Entrusted loans
□ Applicable     √ Not applicable
The company had no entrusted loans in the reporting period.



4. Other material contracts
□ Applicable     √ Not applicable
No other material contracts for the Company in reporting period


XVIII. Social responsibility

1. Precise poverty alleviation social responsibility

2. Performance of other social responsibility

As for the ―Social Responsibility Report 2016‖ of the Company, found more in the Juchao Website (www.cninfo.com.cn), the
information disclosure website appointed by Shenzhen Stock Exchange.


The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department

Not applicable



Issued social responsibility report
√ Yes   □ No

                                        Corporate Social Responsibility Report (CSR Report)

                                                                Including the                     Disclosure standards
                        Including the       Including the
                                                               information of
  Enterprise type        environment       information of
                                                                  corporate         Domestic standard           Foreign standard
                        content (Y/N)      society (Y/N)
                                                              governance (Y/N)

    State-owned
                             Yes                Yes                  Yes                    Yes
     enterprise



Specific description

1. Is the Company pass the environment
                                                                                                                                   Yes
management system certification (ISO14001) ?

2. Amount invested for environment protection in
                                                                                                                                   826
the Year (in 10 thousand Yuan)
                                                      The Company resolutely implements the "three simultaneous" system for
                                                      construction projects, strictly fulfills the environmental assessment, approval,
3. Emission reduction performance of ―waste gas,
                                                      acceptance and other procedures of construction projects. In the process of
waste water and waste residue‖
                                                      new projects and technological transformation, solve the old and new
                                                      pollution at the same time in accordance with the technically feasible and


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                                                                        无锡威孚高科技集团股份有限公司 2016 年年度报告全文


                                                      economically reasonable principles, the three wastes governance project must
                                                      be designed, constructed and inspected and accepted with the main project at
                                                      the same time. (1)Wastewater disposal: the integrated sewage treatment station
                                                      of   Weifu   Industrial     Park   continues   the   stable   operation,   assign
                                                      specially-trained staff to operate and take charge of the environmental
                                                      protection equipment but also monitor, control and verify the whole process.
                                                      (2) Waste disposal: the company classifies various wastes according to the
                                                      standards. Entrust qualified units to dispose the hazardous waste; entrust the
                                                      qualified sanitation office to dispose the household garbage; the scrap metals
                                                      and other garbage that can be recycled as resources are respectively recycled
                                                      and used by relevant qualified units. (3) Define and decompose the
                                                      environmental responsibility. (4) Continue to carry out the training for
                                                      environmental protection.

4. Input on the employee for individual knowledge
                                                                                                                                   233
and technical improvement     (in 10 thousand Yuan)

5. Social donation (capital, materials and free
                                                                                                                                  4.85
professional services)   (in 10 thousand Yuan)


XIX. Explanation on other significant events

√ Applicable   □ Not applicable
Relocation compensation recived
In August 2010, pursuit to the startup project of City-retreated & Park-entered (Notice No.: 2010-023) from Wuxi
Urban General Plan Company. In September 2013, the Company entered into the Contract of State-Owned Land
Use Rights Acquisition of Wuxi with Wuxi Land Reserve Center, the Company received a relocation
compensation amounting to RMB 503.8116 million (Notice No.: 2013-022). The relocation compensation
received by the Company respectively in October 2013 ( RMB 7.9 million received), in October 2014 (RMB
145.23 million received) (Notice No.: 2014-028); in May 2015 (received RMB 145.23 million) (Notice No.:
2015-014); in December 2015 (received RMB 180.15 million) (Notice No.: 2016-001) and in June 2016 received
RMB 25.3016 million. the Company totally received relocation compensation ended as the Period was RMB
503.8116 million. Relevant accounting treatment are carried out according to the ASBE Interpretations-No.3 from
Ministry of Finance and ASBE No.16- Government Subsidy. Relvant notice are released on China Securities
Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website (http://www.cninfo.com.cn).


XX. Significant event of subsidiary of the Company

√ Applicable   □ Not applicable


1. Proposed investment in establishment of industrial acquisition funds by a wholly-owned subsidiary of the
Company
On 31 May 2016, the 8th board of directors of the Company held the 7th meeting to consider and approve the


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                                                                无锡威孚高科技集团股份有限公司 2016 年年度报告全文


proposal relating to proposed investment in establishment of industrial acquisition funds by a wholly-owned
subsidiary of the Company. In order to accelerate industrial upgrade and development progress, reserve merger &
acquisition projects, improve its comprehensive strength and realize its development strategy, the Company
entered into initial intention of cooperation with Ping’an Securities, pursuant to which, Weifu Auto Diesel, a
wholly-owned subsidiary of the Company, intended to cooperate with Ping’an Ronghui (a subsidiary of Ping’an
Caizhi which is a wholly-owned subsidiary of Ping’an Securities) to invest in establishing industrial acquisition
funds. The relevant announcements (No.: 2016-013 and 2016-015) were published on China Securities, Securities
Times, Hong Kong Commercial Daily and Juchao Information Website (http://www.cninfo.com.cn). At the
current stage, this matter is in the progress of preparation.
2. Proposed application for listing in the national middle and small enterprises stock transfer system by the
controlling subsidiary Weifu Tianli
On 25 October 2016, the 8th board of directors of the Company held the 9th meeting to consider and approve the
proposal relating to proposed application for listing in the national middle and small enterprises stock transfer
system by the controlling subsidiary Weifu Tianli Pressure Technology Co., Ltd. on 30 December 2016, Weifu
Tianli was served with the notice of acceptance from the National Middle and Small Enterprise Stock Transfer
System Company Limited (GP2016120120). The relevant announcements (No.: 2016-020, 2016-023 and
2017-001) were published on China Securities, Securities Times, Hong Kong Commercial Daily and Juchao
Information Website (http://www.cninfo.com.cn). At the current stage, this matter is in the progress of
consideration and approval.




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                                                                         无锡威孚高科技集团股份有限公司 2016 年年度报告全文



    Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
                                                                                                                          In Share


                                    Before the Change        Increase/Decrease in the Change (+, -)        After the Change
                                                                          Capitali
                                                             New           zation
                                                                   Bonus                                                  Proportio
                                   Amount        Proportion shares           of    Others Subtotal        Amount
                                                                   shares                                                    n
                                                            issued         public
                                                                          reserve
I. Restricted shares                    78,952       0.01%                             -375      -375           78,577        0.01%

3. Other domestic shares                78,952       0.01%                             -375      -375           78,577        0.01%

        Domestic nature
                                        78,952       0.01%                             -375      -375           78,577        0.01%
person shares

II. Unrestricted shares          1,008,871,618      99.99%                              375      375      1,008,871,993     99.99%

1. RMB common shares               836,491,618      82.90%                              375      375       836,491,993      82.90%

2. Domestically listed
                                   172,380,000      17.09%                                                 172,380,000      17.09%
foreign shares

III. Total shares                1,008,950,570    100.00%                                                 1,008,950,570 100.00%

Reasons for share changed
□ Applicable       √ Not applicable
Approval of share changed
□ Applicable       √ Not applicable
Ownership transfer of share changed
□ Applicable       √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable       √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable       √ Not applicable


2. Changes of restricted shares

□ Applicable       √ Not applicable


II. Securities issuance and listing

1. Security offering (without preferred stock) in Reporting Period

□ Applicable       √ Not applicable


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2. Changes of total shares and shareholders structure as well as explanation on changes of assets and
liability structure

□ Applicable     √ Not applicable


3. Existing internal staff shares

□ Applicable     √ Not applicable

III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
                                                                                                                                In Share



                                                                                                 Total preference
                               Total common                                                      shareholders with
                                                                  Total preference
Total common                   stock                                                             voting rights
                                                                  shareholders with voting
stock                          shareholders                                                      recovered at end of
                                                                  rights recovered at end
shareholders in         44,781 at end of last            44,711                                0 last month before                     0
                                                                  of reporting period (if
reporting                      month before                                                      annual report
                                                                  applicable) (found in
period-end                     annual report                                                     disclosed (if
                                                                  note8)
                               disclosed                                                         applicable) (found in
                                                                                                 note8)

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

                                                              Total                                                 Number of share
                                                 Proporti               Changes in Amount of       Amount of
                                       Nature of          shareholders                                               pledged/frozen
                                                   on of
   Full name of Shareholders          shareholde                          report    restricted    un-restricted
                                                  shares at the end of
                                           r                                                                         State of   Amoun
                                                   held                   period   shares held    shares held
                                                          report period                                               share        t

Wuxi Industry Development             State-owne
                                                    20.22% 204,059,398                0            204,059,398
Group Co., Ltd                        d corporate

                                      Foreign
ROBERT BOSCH GMBH                                   14.16% 142,841,400                0            142,841,400
                                      corporate

China Securities Finance              State-owne
                                                    2.63%   26,555,515 -3,950,854                    26,555,515
Corporation Limited                   d corporate

                                      Foreign
UBS      AG                                         2.61%   26,373,988       4,133,040               26,373,988
                                      corporate

Kangjian Assets Management            Foreign
                                                    1.52%   15,339,892        -541,900               15,339,892
Company –Client’s fund              corporate

Central Huijin Assets                 State-owne
                                                    1.27%    12,811,200               0              12,811,200
Management Co., Ltd.                  d corporate

BBH BOS S/A FIDELITY FD - Foreign
                                                    1.23%   12,382,279                0              12,382,279
CHINA FOCUS FD                        corporate



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Puxin Investment Company-            Foreign
                                                      1.01%    10,225,177 -1,122,700                       10,225,177
Client’s fund                       corporate

RBC EMERGING MARKETS Foreign
                                                      0.95%     9,626,264    1,800,000                      9,626,264
EQUITY FUND                          corporate

MERRILL LYNCH                        Foreign
                                                      0.88%     8,915,000 -2,388,625                        8,915,000
INTERNATIONAL                        corporate

Strategy investors or general corporation
comes top 10 shareholders due to rights             Not applicable
issue (if applicable) (see note 3)

                                                    Among the top ten shareholders, there has no associated relationship between Wuxi
                                                    Industry Development Croup Co., Ltd. and other shareholders, the first largest
Explanation      on   associated     relationship
                                                    shareholder of the Company; and they do not belong to the consistent actionist
among the aforesaid shareholders
                                                    regulated by the Management Measure of Information Disclosure on Change of
                                                    Shareholding for Listed Company.

                                     Particular about top ten shareholders with un-restrict shares held

                                                                      Amount of un-restrict                  Type of shares
                      Shareholders’ name                                 shares held at
                                                                                                          Type                Amount
                                                                            Period-end

Wuxi Industry Development Group Co., Ltd                                         204,059,398 RMB common shares                204,059,398

                                                                                               RMB common shares              115,260,600
ROBERT BOSCH GMBH                                                                142,841,400    Domestically listed
                                                                                                                               27,580,800
                                                                                                   foreign shares

China Securities Finance Corporation Limited                                      26,555,515 RMB common shares                 26,555,515

UBS      AG                                                                       26,373,988 RMB common shares                 26,373,988

Kangjian Assets Management Company –Client’s fund                               15,339,892 RMB common shares                 15,339,892

Central Huijin Assets Management Co., Ltd.                                        12,811,200 RMB common shares                 12,811,200

                                                                                                Domestically listed
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD                                          12,382,279                                   12,382,279
                                                                                                   foreign shares

Puxin Investment Company- Client’s fund                                          10,225,177 RMB common shares                 10,225,177

                                                                                                Domestically listed
RBC EMERGING MARKETS EQUITY FUND                                                   9,626,264                                    9,626,264
                                                                                                   foreign shares

MERRILL LYNCH INTERNATIONAL                                                        8,915,000 RMB common shares                  8,915,000

                                                                     Among the top ten shareholders, there has no associated relationship
                                                                     between Wuxi Industry Development Croup Co., Ltd. and other
Expiation on associated relationship or consistent actors
                                                                     shareholders, the first largest shareholder of the Company; and they
within the top 10 un-restrict shareholders and between top 10
                                                                     do not belong to the consistent actionist regulated by the
un-restrict shareholders and top 10 shareholders
                                                                     Management Measure of Information Disclosure on Change of
                                                                     Shareholding for Listed Company.




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                                                                               无锡威孚高科技集团股份有限公司 2016 年年度报告全文


Explanation on top 10 shareholders involving margin
                                                                    Not applicable
business (if applicable) (see note 4)

Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
buy-back agreement dealing in reporting period.


2. Controlling shareholder of the Company

Nature of controlling shareholders: local state-owned holding
Type of controlling shareholders: legal person


                              Legal
                          person/person   Date of               Organization
 Controlling shareholders                                                                         Main operation business
                           in charge of foundation                 code
                             the unit
                                                                                 Authorizing the state-owned assets operation within a
Wuxi Industry                                                                    certain areas, investment management of significant
                                   Jiang                       9132020013600
Development Group Co.,                           1995-10-05                      project, investment and development of manufacturing
                                   Guoxiong                    26543
Ltd.                                                                             and   services   and   venture   capital   in   high-tech
                                                                                 achievement, entrust enterprise and management etc.

Equity          of        other
domestic/oversea          listed
company         control      by Substantial shareholder of the Company—Industry Group is the controlling shareholder of Wuxi Taiji
controlling shareholder as Industry Co., Ltd. (stock code: 600667)
well     as    stock-joint   in
report period

Changes of controlling shareholders in reporting period
□ Applicable        √ Not applicable
The Company had no changes of controlling shareholders in reporting period



3. Actual controller of the Company

Nature of actual controller: local state-owned assets management
Type of actual controller: legal person


                                              Legal person/person Date of
    Actual controlling shareholders                                               Organization code          Main operation business
                                              in charge of the unit foundation
State-owned Assets Supervision &
                                                                                                         State-owned Assets
Administration Commission of Wuxi                     ~                                  ~
                                                                                                         Administration
Municipality of Jiangsu Province




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Equity of domestic/oversea listed
company control by actual controller Not applicable
in report period

Changes of actual controller in reporting period
□ Applicable      √ Not applicable
No 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.



                                                                  20.22%

                                              Weifu High-Technology Group Co., Ltd.




Actual controller controlling the Company by entrust or other assets management

□ Applicable      √ Not applicable
4. Particulars about other legal person shareholders with over 10% shares held
√Applicable       □Not applicable

  Corporate        Legal rep./person                      Register
                                        Dated founded                             Main business or management activity
 shareholders       in charge of unit                      capital

                                                                      Development, manufacture and sales of automotive equipment
                                                                      and engine equipment; engaged in electro-technical, electronic
ROBERT                                                                technology, machinery manufacturing and optical system as well
                   Heiko Carrie,                        EUR 1,200
BOSCH                                   1886-11-15                    as produce iron, metal and plastic products and similar
                   Bettina Holzwarth                    million
GMBH                                                                  commodity. The company engaged in varies trading business
                                                                      concerned with its business scope and established relevant
                                                                      company concerned with its business scope.


5. Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,
restructuring side and other commitment subjects

□ Applicable √ Not applicable


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                                      Section VII. Preferred Stock

□ Applicable   √ Not applicable
The Company had no preferred stock in the Period.




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         Section VIII. Particulars about Directors, Supervisors, Senior
                                         Executives and Employees

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

                                                                                                            Amount
                                                                                                Amount
                                                                                     Shares                    of               Shares
                                                                                                of shares
                       Worki                                                         held at                 shares   Other     held at
                                Se     Start dated of office    End date of office              increased
             Title      ng         Age                                               period-b               decrease changes period-e
 Name                           x              term                   term                       in this
                       status                                                         egin                  d in this (share)     nd
                                                                                                 period
                                                                                     (Share)                 period             (Share)
                                                                                                (Share)
                                                                                                            (Share)

                       Curren
 Chen
         Chairman      tly in M     49 2012-03-07              2018-05-27             34,753                                     34,753
Xuejun
                       office

                       Curren
Rudolf Vice
                       tly in M     59 2012-03-07              2018-05-27
 Maier Chairman
                       office

 Wang                  Curren
        Vice
Xiaodon Chairman,      tly in M     50 2012-03-07              2018-05-27             20,781                                     20,781
        GM
   g                   office
        Deputy
        General
                  Curren
  Ou Manager and                         2012-03-07            2018-05-27
        financing  tly in M         50                                                10,000                                     10,000
Jianbin Charger
                  office
        Director                         2012-05-23            2018-05-27

 Zhang                 Curren
Xiaogen Director       tly in M     53 2015-05-28              2018-05-27
   g                   office

                       Curren
 Chen
         Director      tly in M     55 2012-03-07              2018-05-27
Yudong
                       office

 Hua                   Curren
Wanron Director        tly in   F   52 2012-03-07              2018-05-27
   g                   office

                       Curren
 Xing    Independent
                       tly in M     62 2012-03-07              2018-05-27
 Min     Director
                       office

  Lou    Independent Curren
                                M   53 2015-05-28              2018-05-27
Diming Director        tly in


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                                                                无锡威孚高科技集团股份有限公司 2016 年年度报告全文


                         office

   Jin                   Curren
          Independent
Zhanglu                  tly in M       66 2015-05-28   2018-05-27
          Director
    o                    office

   Xu                    Curren
          Independent
Xiaofan                  tly in M       53 2015-05-28   2018-05-27
          Director
    g                    office

          Chairman of
   Shi                   Curren
          the
Xingyua                  tly in M       54 2012-03-07   2018-05-27         12,673                          12,673
          Supervisory
    n                    office
          Committee

 Zhang                   Curren
Zhentin Supervisor       tly in M       52 2015-05-28   2018-05-27            500                            500
    g                    office

                         Curren
   Liu
          Supervisor     tly in M       41 2012-03-07   2018-05-27
 Jinjun
                         office

                         Curren
  Miao
          Deputy GM      tly in M       53 2003-04-16   2018-05-27         10,000                          10,000
Yuming
                         office

                         Curren
   Xu
          Deputy GM      tly in M       45 2012-03-07   2018-05-27         13,000                          13,000
Yunfeng
                         office

                         Curren
  Zhou    Secretary of
                         tly in M       53 2005-06-09   2018-05-27          3,565                           3,565
Weixing the Board
                         office

  Total         --         --      --   --         --           --        105,272       0       0         105,272


II. Changes of directors, supervisors and senior executives

□Applicable    √Not applicable


III. Post-holding

Professional background, major working experience and present main responsibilities in Company of directors,
supervisors and senior executive
Mr. Chen Xuejun, was born in May 1967, a university background and a senior economist. He currently serves as
Chairman of the Company, party secretary of the Company and director of the majority shareholder of the
Company – Industrial Group. He has served as Director and Party branch secretary of the Company mining and
supply department, Director of Party Committee Office. He has served as chairman of supervisory committee of
the Company, deputy chairman and General Manager of the Company.

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Mr. Rudolf Maier, was born in October 1957, a German citizenship with a doctor degree. He currently serves as
vice chairman of the Company, executive deputy president of technology research of German Bosch Diesel
System and chairman of the BOSCH Automotive Diesel Systems Co., Ltd.; previously he was a chairman of
commercial vehicle dept. diesel injection system, chairman of German Bosch Diesel System China Region, the
vice Chairman of BOSCH Automotive Diesel Systems Co., Ltd. and director of the Company.


Mr. Wang Xiaodong, was born in November 1966, a university graduate, MBA and senior engineer. He currently
serves as vice chairman and GM of the Company, and previously served as Division Chief of Products
Development Department of the Company, Deputy GM of Bosch Automobile Diesel and supervisor of the
Company.


Mr. Ou Jianbin, born in June 1966, a senior college graduated and an accountant. Currently he serves as director
and standing deputy GM as well as chief of the financial of the Company; previously served as Assistant Minister
and Deputy Minister of Financial Department of Weifu Company, Director and deputy GM of subsidiary Weifu
Jinning, Deputy GM and GM of subsidiary Weifu Leader and supervisor of the Company.


Mr. Zhang Xiaogeng, born in March 1963, college degree, senior economist. He currently serves as director of the
Company, deputy president of majority shareholder – Industry Group; and previously served as clerk of the
production system office at commission for restructuring of Wuxi City, deputy director of enterprise reform
department of Wuxi City, director of comprehensive institution department of Wuxi City, director of development
and planning department (policy and regulation division) of SASAC of Wuxi City and deputy GM of Wuxi
Industry Asset Management Co., Ltd
Mr. Chen Yudong, was born in September 1961, an America citizenship and a Doctor. He currently serves as
director of the Company and president of Bosch (China) Investment Ltd; he previously served as Chief engineer
of Greater China, Business Director and GM of Business department of China of Delphi Automotive Parts Group,
senior deputy president of petrol system dept. of German Bosch and executive deputy president of Bosch (China)
Investment Ltd.
Ms. Hua Wanrong, born in September 1964, graduated from college, a senior accountant. Currently she serves as
director of the Company, chief of the financial management dept. of majority shareholder Industry Group, and
director of Taiji Industrial. Previously she served as deputy director of administrative resources division of
State-owned Assets Supervision and Administration Bureau of Wuxi City, director of tax policy and regulations
division and director of state-owned assets division of Wuxi Municipal Bureau of Finance, director of property
management department and director of development and planning department of State-owned Assets Supervision
and Administration Commission of Wuxi City, director of investment and development department of major
shareholder – Industry Group.


Mr. Xing Min, born in January 1954, graduate from University, professorate senior engineer. He currently serves

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as independent director of the Company, vice chairman and secretary-general of China Internal Combustion
Engine Industry Association (CICEIA), Independent Director of Hunan Tyen Machinery Co., Ltd., and Independent
Director of First Tractor; he previously served as vice chief of Bureau of Retired Veteran Cadres of Machinery Dept,,
secretary of Party Committee of Administration Division and deputy director, director of Labor Division,
secretary of Party Committee of China National Heavy Machinery Corporation (CHMC), GM and secretary of
Party Committee and consultant of China National Machine Tools Corporation (CNMTC).


Lou Diming, male, born in July 1963, doctor, professor. He currently serves as independent director of the
Company, professor and doctoral supervisor of Tongji University, director of Automobile Engine Design Institute
of College of Automotive Studies, Tongji University, vice president of SICES, director of Chinese Society for
Internal Combustion Engines, vice chairman of small and medium power diesel branch and vice chairman of oils
and clean fuel branch, committee member of Expert & Technical Committee of National Technical Committee
177 on IC engines Standardization Administration of China, committee member of Expert Committee of China
Internal Combustion Engine Industry Association, independent director of Shanghai Diesel Engine Co., Ltd.,
independent director of Kunming Yunnei Power Co., Ltd.. he previously served as deputy director and general
party branch secretary in School of Mechanical Engineering of Shanghai Railway Institute, deputy secretary of
branch Party committee of School of Mechanical Engineering and general party branch secretary in School of
Locomotive Vehicle Engineering and executive vice president of Institute of Rail Transit of Tongji University,
and secretary of the second joint committee of Tongji University.


Jin Zhangluo, male, born in August 1950, college degree, certified public accountant, senior accountant. Currently
he serves as independent director of the Company, an independent director of Jiangsu Meishang Ecology
Landscape Co., Ltd., independent director of Jiangsu Liba Enterprise Joint-Stock Co., Ltd., independent director
of Suzhou Taihu Electric Advanced Material Co, Ltd., independent director of Jiangsu Penyao Environmental
Protection and Technology Co., Ltd. He previously served as financial administrator of Jiangsu Jintan Diesel
Engine Factory, deputy chief, chief, and chief accountant of finance department of Wuxi Power Factory,
department manager, deputy director, and routine deputy director of Jiangsu Gongzheng Tianye CPA


Xu Xiaofang, male, born in March 1963, graduate, a lawyer. Now he serves as independent director of the
Company, lawyer in Kunlun (Shenzhen) Law Firm, director of Shenzhen League Star Technology Co., Ltd;
previously he served as part-time lawyer in Beihai Economic Law Firm, staff in China Chamber of International
Commerce Beihai Branch, part-time lawyer of Guangdong Yuanjian Law Firm, and staff of legal affairs in CEIEC
and lawyer of Guangdong Bohe Law Firm.


Mr. Shi Xingyuan, was born in May 1962, a postgraduate, Master of Commerce and Industry, senior engineer.
Currently he serves as Chairman of the Supervisory Committee of the Company, deputy secretary of party
committee and chairman of labor union of the Company; previously he served as director of the management office of
the Company, director of GM office and assistant GM, deputy GM and director of the Company.


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Mr. Zhang Zhenting, born in December 1964, university graduated, senior engineer. Currently he serves as
supervisor of the Company and GM of Weifu Jinning; previously served as served as the engineer in charge, chief
engineer, director of development department, general manager assistant, deputy chief engineer, vice general
manager in Weifu Jinning.


Mr. Liu Jinjun, born in September 1975, graduates from University, a MSIE and engineer. Currently serves as
supervisor of the Company and director of H&R department; previously served as Manager of H&R
administrative and technology sales manager of Weifu Auto Diesel


Mr. Miao Yuming, born in April 1963, a university background, MBA and senior engineer. Currently he serves as
deputy GM of the Company, deputy GM of Bosch Automobile Diesel; previsouly served as director of sales
departmetn and assistant GM in the Company.


Mr. Xu Yunfeng, born in November 1971, graduate from University, a Master and engineer. Currently serves as
deputy GM of the Company and previously served as vice director of product research institute of Technology
Center of the Company, Manager, assistant GM and GM of sales dept. of Weifu Automobile Diesel.


Mr. Zhou Weixing, born in January 1963, graduate from University, a senior engineer. Currently serves as
secretary of the Board of the Company and previously served as representative of security affairs and director of
security office.


Post-holding in shareholder’s unit

√ Applicable    □ Not applicable

                                                                                                            Received remuneration
                                                         Position in shareholder’s Start dated   End date
     Name                Name of shareholder’s unit                                 of office    of office from shareholder’s unit
                                                                   unit n              term         term
                                                                                                                    (Y/N)

                                                         Executive vice president
Rudolf Maier       ROBERT BOSCH GMBH                                                2011-01-01              Yes
                                                         of Diesel System

                   Bosch Automobile Diesel System Co.,
Rudolf Maier                                             Chairman                                           Yes
                   Ltd

Zhang              Wuxi Industry Development Group
                                                         Vice president             2008-04-01              Yes
Xiaogeng           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 Co.,
Miao Yuming                                              Deputy GM                  2012-03-01              Yes
                   Ltd



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Post-holding in other unit
√ Applicable     □ Not applicable

                                                                                                                        Received

                                                                                       Start dated of    End date of   remuneratio
     Name                  Name of other units             Position in other unit n
                                                                                        office term      office term   n from other
                                                                                                                       unit (Y/N)

    Xing Min       CICEIA                              Vice chairman and secretary    2008-08-01                           Yes

    Xing Min       Hunan Tyen Machinery Co., Ltd. Independent director                2015-07-17        2018-07-16         Yes

    Xing Min       First Tractor Co., Ltd.             Independent director           2015-10-29        2018-10-18         Yes

  Lou Diming       Tongji University                   Professor, doctoral tutor      2000-04-15                           Yes

  Lou Diming       Shanghai Diesel Engine Co., Ltd. Independent director              2015-05-20        2018-05-19         Yes

  Lou Diming       Kunming Yunnei Power Co., Ltd. Independent director                2015-12-28        2018-12-27         Yes

                   Jiangsu Meishang Ecological
  Jin Zhangluo                                         Independent director           2011-09-28        2017-09-27         Yes
                   Landscape Co., Ltd.

  Jin Zhangluo     Jiangsu Liba Industrial Co., Ltd.   Independent director           2014-02-15        2017-02-14         Yes

                   Suzhou Taihu Electrical New
  Jin Zhangluo                                         Independent director           2016-02-04        2019-02-03         Yes
                   Materials Co., Ltd.

                   Jiangsu Pengyao Environmental
  Jin Zhangluo                                         Independent director           2014-02-01                           Yes
                   Protection Technologies Co., Ltd.

                   Oriental Kunlun (Shenzhen) Law
  Xu Xiaofang                                          Lawyer                         2004-09-01                           Yes
                   Firm

                   Shenzhen League Star Technology
  Xu Xiaofang                                          Director                       2012-08-01                           Yes
                   Co., Ltd

Explanation on
post-holding in    The aforesaid are the independent directors of the Company
other unit

Punishment of securities regulatory authority in recent three years to the company’s current and outgoing directors, supervisors and
senior management during the reporting period
□ Applicable     √ Not applicable


IV. Remuneration for directors, supervisors and senior executives

Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives


1. Decision-making procedure: the remuneration and review committee of the Board shall make proposals
according to completion status of the major annual targets, the implementation of which is subject to submission
to and approval by the Board;
2. Determination reference: remuneration of directors, supervisors and senior management who receive

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remuneration from the Company is determined based on the annual operating results assessment measures of
senior management and remuneration management rules of senior management as approved at the general
meetings. Salary for independent directors of the Company is determined by general meeting which is set at
RMB25,000 per quarter (after tax), and the traveling expense occurred by them arising from attending the
Company’s board meeting, general meetings and relevant activities will be reimbursed according to the actual
conditions.
3. Actual payment: remuneration of directors, supervisors and senior management who receive remuneration from
the Company comprises of basic annual pay and performance related annual salary. The basic annual pay shall be
determined based on specific positions and paid monthly, while the performance related salary is determined and
paid based on satisfaction of the various performance indicators since it is directly linked with the economic
benefits of the Company. Remuneration of independent directors will be paid on a quarterly basis.



Remuneration for directors, supervisors and senior executives in reporting period
                                                                                                                  In 10 thousand Yuan

                                                                                                     Total             Whether
                                                                                                 remuneration        remuneration
    Name                           Title                    Sex    Age    Post-holding status obtained from the     obtained from
                                                                                                Company (before     related party of
                                                                                                    taxes)           the Company

Chen Xuejun Chairman                                         M      49    Currently in office         83                  No

Rudolf Maier Vice Chairman                                   M      59    Currently in office                             Yes

Wang
                Vice Chairman, GM                            M      50    Currently in office         77                  No
Xiaodong

                Director, standing Deputy GM and Chief
Ou Jianbin                                                   M      50    Currently in office         65                  No
                in financial

Zhang
                Director                                     M      53    Currently in office                             Yes
Xiaogeng

Chen Yudong Director                                         M      55    Currently in office                             Yes

Hua Wanrong Director                                         F      52    Currently in office                             Yes

Xing Min        Independent Director                         M      62    Currently in office        12.1                 No

Lou Diming      Independent Director                         M      53    Currently in office        12.1                 No

Jin Zhangluo    Independent Director                         M      66    Currently in office        12.1                 No

Xu Xiaofang     Independent Director                         M      53    Currently in office        12.1                 No

Shi Xingyuan Chairman of the Supervisory Committee           M      54    Currently in office         65                  No

Zhang
                Supervisor                                   M      53    Currently in office         44                  No
Zhenting

Liu Jinjun      Supervisor                                   M      41    Currently in office         36                  No



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                                                                          无锡威孚高科技集团股份有限公司 2016 年年度报告全文


Miao Yuming Deputy GM                                         M      53    Currently in office                          Yes

Xu Yunfeng        Deputy GM                                   M      45    Currently in office         65               No

Zhou Weixing Secretary of the Board                           M      53    Currently in office         36               No

Total                                 --                      --     --             --               519.4               --

Delegated equity incentive for directors, supervisors and senior executives in reporting period
□ Applicable     √ Not applicable


V. Particulars of workforce

1. Number of Employees, Professional composition, Education background


Employee in-post of the parent Company (people)                                                                                1,845

Employee in-post of main Subsidiaries (people)                                                                                 3,365

The total number of current employees (people)                                                                                 5,210

The total number of current employees to receive pay (people)                                                                  5,448

Retired employee’ s expenses borne by the parent Company and main
                                                                                                                                  0
Subsidiaries (people)

                                                      Professional composition
                  Category of professional composition                          Numbers of professional composition (people)
Production personnel                                                                                                           3,028

Sales personnel                                                                                                                 218

Technical personnel                                                                                                            1,272

Financial personnel                                                                                                              90

Administrative personnel                                                                                                        602

Total                                                                                                                          5,210

                                                         Education background
                   Category of education background                                          Numbers (people)
Master degree and above                                                                                                         221

Undergraduate                                                                                                                  1,205

Junior college                                                                                                                 1,113

Other                                                                                                                          2,671

Total                                                                                                                          5,210


2. Remuneration Policy

In 2016, the Company continued to improve its remuneration and benefits system so as to constanly secure the
income level of its staff. Staff’s income is closely linked with the Company’s operating results. The Company also
emphasized increase or decrease of income per capita, and the linkage system among ―profit per capita, sales per

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capital and production efficiency‖. It implemented budget system both in inflexibility and flexibility, enhanced
performance related income linked assessment measures and proactively propelled implementation of the
incentive mechanism in a long and middle run. The Company arranged social insurance for all of its employees,
and continued to make available the complementary annuity and medical and accident commercial insurances,
managing to activate employees’ enthusiasm and innovation, retain employees, attract high quality elites and
strengthen corporate cohesiveness.


3. Training programs

In 2016, the Company further increased trainings to improve the professionalism and expertise of employees.
Throughout the year, it held in aggregate 104 internal trainings with 113 in-house trainers. Besides, it conducted
an overall dynamic management against its training courses and trainers in order to achieve constant improvement
of internal training quality. A total of about 16,000 people have received relevant trainings from the Company,
among which, internal trainings accounted for 85%. The major training subjects included development plan for
potential elites, establishment and implementation of training plan for core elites. Together with the assessment on
effectiveness of trainings, the Company managed to strengthen training management on application and sharing
plans. In addition, the Company also tried cross training among subsidiaries, and achieved cultivation and mutual
progress of special talents by use of the in-house advantageous resources and platforms.




4. Labor outsourcing

□ Applicable   √ Not applicable




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                            Section IX. Corporate Governance
I. Corporate governance of the Company

During the reporting period, the Company earnestly implemented the Basic Internal Control Standards for
Enterprise and its guidance in strict accordance to the requirements of the Company Law, Securities Law, Listing
Rules of Shenzhen Stock Exchange as well as Guidance on Standard Operation of Listed Company on Main
Board, continued to improve and enhance legal person governance structure and internal control system, thus to
standardize its operation. The actual status of corporate governance in accordance with the requirements of China
Securities Regulatory Commission regulatory documents related to listing Corporation.


The company has established a series of document systems for standardized management including the ―Rules
of Procedure‖ of three committees, "Working Rules", ―internal control system‖, "Evaluation Management System
of Internal Control", "Information Disclosure Management Approach", "Financial Decision-making System of
Significant Investment", "Related Party Transaction System", "Inside Information and Insider Management
System".


According to the "Company Law", "Articles of Association" and relevant laws and regulations, the company
established a relatively complete organizational control architecture system. The company’s board of directors
executes the resolution of general meeting of stockholders, takes charge of the company’s great decisions, and
take responsible for the general meeting of stockholders; the company sets up the general manager according to
law to preside over the company’s daily production and operation and management, organize and implement the
resolutions of the board of directors, and take responsible for the board of directors; the company’s board of
supervisors is the company’s supervisory body, takes responsible for behaviors of the directors and senior
management and the supervise the company’s financial affairs. The board of directors has four special committees
including the strategy committee, remuneration and appraisal committee, audit committee, and nominations
committee. The company’s general meeting of stockholders, board of directors, board of supervisors, and
management layer have clear rights and obligations, perform their own duties, effectively check and balance,
scientifically make decisions, coordinate operations, and lay a solid foundation for the company’s sustainable,
stable and healthy development.


The company’s independent directors perform their duties and faithfully and conscientiously fulfill their
obligations in strict accordance with relevant regulations of "Articles of Association" and the "Independent
Director System", and actively attend the board meetings and shareholders' meetings, understand and obtain
relevant information before meetings; carefully consider each motion, and actively participate in the discussions
and make recommendations. Seriously make independent opinions, and effectively protect the interests of the
company and shareholders, especially the minority shareholders. Independent directors have no objections on
relevant matters of the company.


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The company further implements the "Basic Norms of Enterprise Internal Control" and its guidelines, constructs
the internal control system in the company headquarters and major subsidiaries, enhance the company's
management and control level, optimize the workflow, improve the internal control system, identify and control
the operational risks. Please see the detailed contents of "2016 Annual Internal Control Evaluation Report" on
www.cninfo.com.cn which is the information disclosure website designated by Shenzhen Stock Exchange.


Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance for
listed company from CSRC?
□ Yes   √ No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governance
for listed company from CSRC.
II. Independency of the Company relative to controlling shareholders’ in aspect of businesses,
personnel, assets, organization and finance
1. Business: the company has a complete independent research and development, procurement, production and
sales systems, the main business does not have horizontal competition with the controlling shareholders. The
business is absolutely separated.


2. Personnel: the company has mutual independence with its controlling shareholders in labor, personnel and
salary management; there is no mixed operation and management with the controlling shareholders. The
company’s general manager, vice general manager, financial administrator, secretary of the board, and senior
executives don’t hold any position in the shareholders’ units.


3. Assets: the company's assets are independent and complete, the property relations with the controlling
shareholders are clear.

4. Organization: the company has established organization completely independent from its controlling
shareholders, the duty and authority of the company’s stockholders' meeting, board of directors, board of
supervisors and management level are clearly defined, the internal management system can operate
independently.

5. Finance: the company has set up an independent financial department, established the independent financial
accounting system and financial management system, opened the independent bank account, and paid taxes
separately according to law.

III. Horizontal competition

□ Applicable    √ Not applicable


IV. In the report period, the Company held annual shareholders’ general meeting and
extraordinary shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period


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      Session of                       Ratio of investor                      Date of
                         Type                                Date                                     Index of disclosure
       meeting                           participation                       disclosure

                                                                                          (No.: 2016-012)     published on Juchao
AGM of 2015         AGM                         44.44% 2016-05-26        2016-05-27
                                                                                          Website(www.cninfo.com.cn)


2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore

□ Applicable      √ Not applicable

V. Responsibility performance of independent directors

1. The attending of independent directors to Board meetings and general meeting

                                         The attending of independent directors to Board Meeting

                       Times of Board                                                                                  Absent the
      Name of                                                        Times of             Times of
                     meeting supposed to         Times of                                               Times of     Meeting for the
  independent                                                       attending by          entrusted
                      attend in the report       Presence                                               Absence      second time in a
       director                                                  communication            presence
                            period                                                                                      row (Y/N)

Xing Min                        5                    1                   4                                                  No

Lou Diming                      5                    1                   4                                                  No

Jin Zhangluo                    5                    1                   4                                                  No

Xu Xiaofang                     5                    1                   4                                                  No

Times for attending general meeting
                                                                                                                                    1
from independent directors

Explanation of absent the Board Meeting for the second time in a row
Nil


2. Objection for relevant events from independent directors

Independent directors come up with objection about Company’s relevant matters
□ Yes    √ No
Independent directors has no objections for relevant events in reporting period

3. Other explanation about responsibility performance of independent directors

The opinions from independent directors have been adopted

√ Yes    □ No

Explanation on advice that accepted/not accepted from independent directors

During the reporting period, the company’s independent directors have paid close attention to the company’s
operations, independently performed their duties, made special opinions on the company’s system improvement
and daily operating decisions in strict accordance with relevant laws and regulations and the provisions of


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"Articles of Association", made independent and just opinions on the matters that need the independent directors’
opinions during the reporting period, and played the due role in improving the corporate governance mechanism,
maintaining the legitimate rights and interests of the company and all shareholders.

VI. Duty performance of the special committees under the board during the reporting period
During the reporting period, the board of directors of the special committees performed their duties as follows:


1. Two meetings of Audit committee of the Board, deliberated the followed: ―Financial Result Report of 2015‖,
―Annual Report of 2015 and its Summary‖, ―Conclusion Report of auditing for year of 2015‖, ―Engagement of
audit institute for financial report of 2016‖, ―Engagement of audit institute for internal control of the Company of
2016‖, ―Semi-Annual Report of 2016 and its Summary‖, and ―Specific Report on Raise Funds Deposit for First
Half Year of 2016 and Practical Usage‖ etc.;


2. One meeting of remuneration and appraisal committee of the Board, deliberate ―Remuneration evaluation and
payment for senior executive of 2015‖;


3. One meeting of strategy committee of the Board, deliberate ―Operation target for year of 2016‖

VII. Works from Supervisory Committee
The Company has risks in reporting period that found in supervisory activity from supervisory committee
□ Yes √ No
Supervisory committee has no objection about supervision events in reporting period

VIII. Examination and incentives of senior management

Assessment and incentive of senior management of the Company is conducted pursuant to the Company Law,
Articles of Association, and the annual operating results assessment measures of senior management and
remuneration management rules of senior management as approved at the general meetings. Assessment of
operating results of senior management comprises of annual operating results assessment and term-of-service
operating results assessment. Assessment on results and procedure was combined, and assessment results were
linked to incentives and punishment. With respect to annual operating results review, the remuneration and review
committee of the Board made comprehensive assessment on satisfaction of the annual operating targets and
determined the annual remuneration, incentives or punishment for senior management based on their review
results (which was implemented according to remuneration management rules of senior management), based on
the major annual operating targets set by the Board under required procedures and methods through establishment
of scientific performance indicators and assessment system and combination of scoring in terms of quantity and
review comments. During the reporting period, the Company made appropriate assessment on its senior
management under the performance indicator and assessment system, the results of which had been reflected in
the annual performance related remuneration.

Currently, the Company has not exercised any share option scheme.


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IX. Internal Control

1. Details of major defects in IC appraisal report that found in reporting period

□Yes √ No


2. Appraisal Report of Internal Control


Disclosure date of full internal control evaluation report              2017-04-18

                                                                        ‖Self-evaluation report of internal control for 2016‖, more
Disclosure index of full internal control evaluation report             details found in Juchao website (www.cninfo.com.cn)
                                                                        appointed by Shenzhen Stock Exchange

The ratio of the total assets of units included in the scope of
evaluation accounting for the total assets on the company's                                                                        92.00%
consolidated financial statements

The ratio of the operating income of units included in the scope of
evaluation accounting for the operating income on the company's                                                                    99.00%
consolidated financial statements

                                                     Defects Evaluation Standards

              Category                         Financial Reports                                  Non-financial Reports

                                See details in ―(II) Basis for evaluation of     See details in ―(II) Basis for evaluation of internal
                                internal controls and defect identification       controls and defect identification standards of
                                standards of internal controls of III Evaluation internal controls of III Evaluation of Internal
Qualitative criteria
                                of Internal Controls‖ in ―2016 Annual Internal Controls‖ in ―2016 Annual Internal Control
                                Control Self-Evaluation Report‖ disclosed on Self-Evaluation Report‖ disclosed on
                                www.cninfo.com.cn on April 18, 2016.              www.cninfo.com.cn on April 18, 2016.

                                See details in ―(II) Basis for evaluation of     See details in ―(II) Basis for evaluation of internal
                                internal controls and defect identification       controls and defect identification standards of
                                standards of internal controls of III Evaluation internal controls of III Evaluation of Internal
Quantitative standard
                                of Internal Controls‖ in ―2016 Annual Internal Controls‖ in ―2016 Annual Internal Control
                                Control Self-Evaluation Report‖ disclosed on Self-Evaluation Report‖ disclosed on
                                www.cninfo.com.cn on April 18, 2016.              www.cninfo.com.cn on April 18, 2016.

Amount of significant defects
                                                                                     0
in financial reports

Amount of significant defects
                                                                                     0
in non-financial reports

Amount of important defects
                                                                                     0
in financial reports

Amount of important defects
                                                                                     0
in non-financial reports


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X. Auditing report of internal control

√Applicable □ Not applicable

                                             Deliberations in Internal Control Audit Report

Audit institute considers that: according to relevant regulations and ―Basic Rules of Internal Control for Enterprises‖, Weifu
High-Technology Co., Ltd., in all major aspects, keeps an efficiency of internal control of financial report dated 31 December 2016.

Disclosure details of audit report of internal control Disclosed

Disclosure date of audit report of internal control
                                                        2016-04-18
(full-text)

                                                        ‖Audit report of internal control for year of 2016‖, more details found in
Index of audit report of internal control (full-text)
                                                        Juchao website (www.cninfo.com.cn) appointed by Shenzhen Stock Exchange

Opinion type of auditing report of IC                   Standard unqualified

Whether the non-financial report had major defects No

Carried out modified opinion for internal control audit report from CPA
□Yes √ No
The internal control audit report, issued by CPA, has concerted opinion with self-evaluation report, issued from the Board
√ Yes □ No




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                                           Section X Corporate Bond

Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when
annual report approved for released or fail to cash in full on due
No




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                                   Section XI. Financial Report

I. Audit report

Type of audit opinion                                      Standard unqualified opinion

Signing date of audit report                               2017-04-14

Document number of audit report                            SG W[2017]No458 A

                                                           Jiangsu Gongzheng Tianye Certified Public Accountants Co.,
Name of audit institute
                                                           Ltd. (Special Ordinary Partnership)

Name of CPA                                                Bo Lingjing, Meng Yin



                                                 Auditor’s Report
                                                                                          SG W[2017]NO458A

To the Shareholders of Weifu High-Technology Group Co., Ltd.:

We have audited the Companying consolidated and parent Company’s financial statements of Weifu
High-Technology Group Co., Ltd. (―the Company‖), including balance sheet of 31 December 2016 and profit
statement, and cash flow statement, and statement on changes of shareholders’ equity for the year ended, and
notes to the financial statements for the year ended.



I. Management’s responsibility for the financial statements
Management of the Company is responsible for prepare and present financial statement of the Company, which
including: (1) Prepare financial statements with fair presentation in line with Accounting Standards for Business
Enterprises; (2) Designing, executed and maintaining necessary internal control in order to prevent fundamental
miscarrying in financial statement from fraudulent or errors.



II. Auditor's responsibility
Our responsibility is to express an audit opinion on these financial statements based on our audit. We performed
our audit in accordance with Chinese Certified Public Accountants' Auditing Standards. Those standards require
us to comply with professional ethics, and to plan and perform our audit so as to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures of the
financial statements. The selective audit procedures depend on auditor's judgment, including the evaluation of the
risk of material misstatement of the consolidated financial statements due to frauds or errors. When evaluating
risk, we consider internal control related to financial statements, in order to design auditing procedures, but not for


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the purpose of expressing an opinion on the internal control's effectiveness. An audit also includes assessing the
appropriateness of the accounting policies adopted and the reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that we have obtained sufficient and appropriate audit evidences to provide a basis for our audit
opinion.


III. Auditing opinion
In our opinion, the Company’s financial statements have been prepared in accordance with the Enterprises
Accounting Standards and Enterprises Accounting System, and they fairly present the financial status of the
Company and of its parent company as of 31 December 2016 and its operation results and cash flows for the year
ended.




     Jiangsu Gongzheng Tianye Certified Public Accountants Co., Ltd.

         (Special Ordinary Partnership)

                                                           Chinese CPA: Bo Lingjing

               Wuxi China                                   Chinese CPA: Meng Yin




                                                                                          14 April 2017




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II. Financial statement

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


1. Consolidated balance sheet

Prepared by Weifu High-Technology Group Co., Ltd
                                                             2016-12-31
                                                                                                                  In RMB

                                     Item                                      2016.12.31              2016.1.1

Current assets:

     Monetary funds                                                              3,969,674,068.56       3,274,679,732.54

     Settlement provisions

     Capital lent

     Financial liability measured by fair value and with variation
reckoned into current gains/losses

     Derivative financial assets

     Notes receivable                                                            1,279,844,777.10       1,031,886,230.18

     Accounts receivable                                                         1,324,703,543.17       1,261,163,184.87

     Account paid in advance                                                       74,030,486.38           73,326,550.19

     Insurance receivable

     Reinsurance receivables

     Contract reserve of reinsurance receivable

     Interest receivable                                                            2,487,527.65            3,281,939.96

     Dividends receivable                                                                                   3,600,000.00

     Other receivables                                                              5,907,873.92            8,817,661.08

     Purchase restituted finance asset

     Inventories                                                                 1,349,444,535.25         865,574,792.41

     Divided into assets held for sale

     Non-current assets due within one year

     Other current assets                                                        1,914,225,879.67       2,016,204,649.28

Total current assets                                                             9,920,318,691.70       8,538,534,740.51

Non-current assets:

     Loans and payments on behalf

     Available-for-sale financial assets                                          695,235,461.00          694,398,661.00

     Held-to-maturity investments



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     Long-term receivables

     Long-term equity investments                                              3,421,030,760.78        3,283,584,245.43

     Investment property                                                          25,113,472.54           20,233,111.93

     Fixed assets                                                              2,447,840,035.34        2,320,627,323.42

     Construction in progress                                                     90,621,102.20          162,402,752.68

     Project materials

      Disposal of fixed assets

      Productive biological assets

     Oil and natural gas assets

     Intangible assets                                                           347,206,518.76          360,610,837.42

     Research and development costs

      Goodwill                                                                     1,784,086.79            1,784,086.79

     Long-term deferred expenses                                                   1,753,413.10           14,004,911.64

     Deferred income tax assets                                                  210,196,714.45          158,873,725.37

     Other non-current assets                                                    102,671,641.12          149,038,672.85

Total non-current assets                                                       7,343,453,206.08        7,165,558,328.53

Total assets                                                                  17,263,771,897.78       15,704,093,069.04

Current liabilities:

     Short-term borrowings                                                       150,000,000.00          360,000,000.00

     Loan from central bank

     Absorbing deposit and interbank deposit

     Capital borrowed

     Financial liability measured by fair value and with variation
reckoned into current gains/losses

     Derivative financial liability

     Notes payable                                                               837,045,962.78          630,682,394.24

     Accounts payable                                                          1,729,250,355.93        1,463,607,938.95

     Accounts received in advance                                                 42,983,352.84           33,545,363.49

     Selling financial asset of repurchase

     Commission charge and commission payable

     Wage payable                                                                230,672,269.58          245,070,941.07

     Taxes payable                                                                62,634,922.88           52,389,865.33

     Interest payable                                                               437,938.27              778,673.59

     Dividend payable




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     Other accounts payable                                     96,514,485.59           49,333,826.26

     Reinsurance payables

     Insurance contract reserve

     Security trading of agency

     Security sales of agency

     Divided into liability held for sale

     Non-current liabilities due within one year                                        60,000,000.00

     Other current liabilities

Total current liabilities                                    3,149,539,287.87        2,895,409,002.93

Non-current liabilities:

     Long-term loans                                            60,000,000.00

     Bonds payable

        Including: preferred stock

                Perpetual capital securities

     Long-term account payable                                  17,835,454.00           18,174,545.00

     Long-term wages payable                                   112,815,704.51           96,350,000.00

     Special accounts payable                                   18,265,082.11           44,725,048.69

     Accrual liabilities

     Deferred income                                           479,211,845.88          400,657,991.06

     Deferred income tax liabilities                            27,674,132.89           35,499,320.90

     Other non-current liabilities

Total non-current liabilities                                  715,802,219.39          595,406,905.65

Total liabilities                                            3,865,341,507.26        3,490,815,908.58

Owners’ equity:

     Share capital                                           1,008,950,570.00        1,008,950,570.00

     Other equity instrument

        Including: preferred stock

                Perpetual capital securities

     Capital reserve                                         3,417,841,402.89        3,396,935,227.97

     Less: Inventory shares

     Other comprehensive income                                144,722,827.51          188,436,372.50

     Reasonable reserve                                             89,005.19             914,648.09

     Surplus reserve                                           510,100,496.00          510,100,496.00

     Provision of general risk



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     Retained profit                                                            7,845,639,990.88       6,677,890,958.83

归属于母公司 Total owners’ equity                                            12,927,344,292.47       11,783,228,273.39

     Minority interests                                                          471,086,098.05          430,048,887.07

Total owners’ equity                                                         13,398,430,390.52       12,213,277,160.46

Total liabilities and owner’s equity                                         17,263,771,897.78       15,704,093,069.04


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


2. Balance Sheet of Parent Company

                                                                                                                 In RMB

                                     Item                                     2016.12.31              2016.1.1

Current assets:

     Monetary funds                                                             2,143,816,269.01       1,739,313,657.29

     Financial liability measured by fair value and with variation
reckoned into current gains/losses

     Derivative financial assets

     Notes receivable                                                            216,516,806.40          159,630,301.53

     Accounts receivable                                                         611,594,846.92          537,504,587.17

     Account paid in advance                                                      34,805,212.41           50,246,196.23

     Interest receivable                                                                                      33,287.67

     Dividends receivable                                                                                  3,600,000.00

     Other receivables                                                            46,349,571.47           81,906,796.95

     Inventories                                                                 202,839,001.66          151,832,151.38

     Divided into assets held for sale

     Non-current assets due within one year

     Other current assets                                                       1,945,446,935.23       2,038,225,831.05

Total current assets                                                            5,201,368,643.10       4,762,292,809.27

Non-current assets:

     Available-for-sale financial assets                                         619,295,461.00          608,458,661.00

     Held-to-maturity investments

     Long-term receivables

     Long-term equity investments                                               4,591,005,651.65       4,241,205,473.10

     Investment property

     Fixed assets                                                               1,438,192,853.38       1,417,143,347.25



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     Construction in progress                                                     36,142,328.79           60,582,501.19

     Project materials

      Disposal of fixed assets

      Productive biological assets

     Oil and natural gas assets

     Intangible assets                                                           192,448,576.72          199,636,812.43

     Research and development costs

      Goodwill

     Long-term deferred expenses

     Deferred income tax assets                                                   96,943,564.13           86,269,470.27

     Other non-current assets                                                     31,747,194.01           80,413,247.85

Total non-current assets                                                       7,005,775,629.68        6,693,709,513.09

Total assets                                                                  12,207,144,272.78       11,456,002,322.36

Current liabilities:

     Short-term borrowings                                                        80,000,000.00          230,000,000.00

     Financial liability measured by fair value and with variation
reckoned into current gains/losses

     Derivative financial liability

     Notes payable                                                               171,760,000.00          218,219,397.80

     Accounts payable                                                            595,558,830.63          473,825,553.93

     Accounts received in advance                                                   732,252.09             4,754,011.37

     Wage payable                                                                119,456,739.08          118,032,003.11

     Taxes payable                                                                28,055,629.04           16,992,552.61

     Interest payable                                                                 88,933.33              292,886.11

     Dividend payable

     Other accounts payable                                                       14,190,407.16           12,757,135.96

     Divided into liability held for sale

     Non-current liabilities due within one year

     Other current liabilities

Total current liabilities                                                      1,009,842,791.33        1,074,873,540.89

Non-current liabilities:

     Long-term loans

     Bonds payable

        Including: preferred stock




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                Perpetual capital securities

     Long-term account payable

     Long-term wages payable                               101,240,000.00           96,350,000.00

     Special accounts payable                                                       26,459,966.58

     Accrual liabilities

     Deferred income                                       432,695,399.27          382,179,400.68

     Deferred income tax liabilities                        25,539,322.49           33,253,477.50

     Other non-current liabilities

Total non-current liabilities                              559,474,721.76          538,242,844.76

Total liabilities                                        1,569,317,513.09        1,613,116,385.65

Owners’ equity:

     Share capital                                       1,008,950,570.00        1,008,950,570.00

     Other equity instrument

        Including: preferred stock

                Perpetual capital securities

     Capital reserve                                     3,448,408,786.39        3,427,939,852.32

     Less: Inventory shares

     Other comprehensive income                            144,722,827.51          188,436,372.50

     Reasonable reserve

     Surplus reserve                                       510,100,496.00          510,100,496.00

     Retained profit                                     5,525,644,079.79        4,707,458,645.89

Total owners’ equity                                   10,637,826,759.69        9,842,885,936.71

Total liabilities and owner’s equity                   12,207,144,272.78       11,456,002,322.36


 3. Consolidated Profit Statement

                                                                                          In RMB

                                     Item                 2016                    2015

I. Total operating income                                 6,422,700,399.27       5,741,643,746.42

Including: Operating income                               6,422,700,399.27       5,741,643,746.42

     Interest income

     Insurance gained

     Commission charge and commission income

II. Total operating cost                                  6,022,388,441.21       5,471,900,282.14

Including: Operating cost                                 4,884,458,125.87       4,395,237,339.33



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     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                                                  47,718,976.36           29,548,327.24

              Sales expenses                                                           213,304,364.89          168,586,194.65

              Administration expenses                                                  797,426,199.46          794,534,500.08

              Financial expenses                                                         -9,109,442.62         -11,123,563.15

              Losses of devaluation of asset                                            88,590,217.25           95,117,483.99

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

           Investment income (Loss is listed with ―-‖)                              1,377,945,740.24       1,333,070,823.57

           Including: Investment income on affiliated company and joint
                                                                                      1,131,546,611.25       1,050,533,134.73
venture

     Exchange income (Loss is listed with ―-‖)

III. Operating profit    (Loss is listed with ―-‖)                                  1,778,257,698.30       1,602,814,287.85

     Add: Non-operating income                                                          50,617,212.70          145,032,227.22

           Including: Disposal gains of non-current asset                                1,313,513.35            1,834,575.54

     Less: Non-operating expense                                                        10,328,220.50           84,329,691.21

           Including: Disposal loss of non-current asset                                  7,543,117.51          10,669,782.22

IV. Total Profit   (Loss is listed with ―-‖)                                        1,818,546,690.50       1,663,516,823.86

     Less: Income tax expense                                                           92,541,909.98          110,752,611.66

V. Net profit (Net loss is listed with ―-‖)                                         1,726,004,780.52       1,552,764,212.20

    Net profit attributable to owner’s of parent company                             1,672,224,317.05       1,515,388,285.71

     Minority shareholders’ gains and losses                                           53,780,463.47           37,375,926.49

VI. Net after-tax of other comprehensive income                                         -43,713,544.99          66,838,007.50

  Net after-tax of other comprehensive income attributable to owners of
                                                                                        -43,713,544.99          66,838,007.50
parent company

       (I) Other comprehensive income items which will not be
reclassified subsequently to profit of loss

              1. Changes as a result of re-measurement of net defined
benefit plan liability or asset

              2. Share of the other comprehensive income of the investee



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accounted for using equity method which will not be reclassified
subsequently to profit and loss

     (II) Other comprehensive income items which will be reclassified
                                                                                         -43,713,544.99           66,838,007.50
subsequently to profit or loss

             1. Share of the other comprehensive income of the investee
accounted for using equity method which will be reclassified
subsequently to profit or loss

             2. Gains or losses arising from changes in fair value of
                                                                                         -43,713,544.99           66,838,007.50
available-for-sale financial assets

             3. Gains or losses arising from reclassification of
held-to-maturity investment as available-for-sale financial assets

               4. The effect hedging portion of gains or losses arising from
cash flow hedging instruments

             5. Translation differences arising on translation of foreign
currency financial statements

             6.Other

  Net after-tax of other comprehensive income attributable to minority
shareholders

VII. Total comprehensive income                                                        1,682,291,235.53        1,619,602,219.70

     Total comprehensive income attributable to owners of parent
                                                                                       1,628,510,772.06        1,582,226,293.21
Company

     Total comprehensive income attributable to minority shareholders                     53,780,463.47           37,375,926.49

VIII. Earnings per share:

      (i) Basic earnings per share                                                                 1.66                    1.49

      (ii) Diluted earnings per share                                                              1.66                    1.49

Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and
realized 0 Yuan at last period for combined party


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


4. Profit Statement of Parent Company

                                                                                                                         In RMB

                                      Item                                              2016                    2015

I. Operating income                                                                    2,036,799,902.87        1,496,256,710.78

     Less: Operating cost                                                              1,599,149,986.88        1,133,660,526.24

          Operating tax and extras                                                        17,207,158.95            1,526,114.71

          Sales expenses                                                                  37,115,337.20           67,295,120.61


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           Administration expenses                                                       335,634,677.44          350,001,215.81

           Financial expenses                                                             -10,480,951.41         -10,072,373.50

           Losses of devaluation of asset                                                 28,418,499.67           36,385,574.47

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

           Investment income (Loss is listed with ―-‖)                                1,299,983,044.34       1,274,757,907.10

           Including: Investment income on affiliated company and joint
                                                                                        1,032,835,715.35         955,955,208.26
venture

II. Operating profit    (Loss is listed with ―-‖)                                     1,329,738,238.48       1,192,218,439.54

     Add: Non-operating income                                                            40,987,231.88          133,988,348.54

           Including: Disposal gains of non-current asset                                    991,196.41             465,182.13

     Less: Non-operating expense                                                            6,411,862.19          73,030,302.51

           Including: Disposal loss of non-current asset                                   5,631,107.91            3,209,637.17

III. Total Profit   (Loss is listed with ―-‖)                                         1,364,313,608.17       1,253,176,485.57

     Less: Income tax expense                                                             41,652,889.27           46,069,369.51

IV. Net profit (Net loss is listed with ―-‖)                                          1,322,660,718.90       1,207,107,116.06

V. Net after-tax of other comprehensive income                                            -43,713,544.99          66,838,007.50

       (I) Other comprehensive income items which will not be
reclassified subsequently to profit of loss

              1. Changes as a result of re-measurement of net defined
benefit plan liability or asset

              2. Share of the other comprehensive income of the investee
accounted for using equity method which will not be reclassified
subsequently to profit and loss

       (II) Other comprehensive income items which will be reclassified
                                                                                          -43,713,544.99          66,838,007.50
subsequently to profit or loss

              1. Share of the other comprehensive income of the investee
accounted for using equity method which will be reclassified
subsequently to profit or loss

              2. Gains or losses arising from changes in fair value of
                                                                                          -43,713,544.99          66,838,007.50
available-for-sale financial assets

              3. Gains or losses arising from reclassification of
held-to-maturity investment as available-for-sale financial assets

              4. The effect hedging portion of gains or losses arising from
cash flow hedging instruments

              5. Translation differences arising on translation of foreign
currency financial statements

              6.Other




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VI. Total comprehensive income                                                      1,278,947,173.91       1,273,945,123.56

VII. Earnings per share:

      (i) Basic earnings per share

      (ii) Diluted earnings per share


5. Consolidated Cash Flow Statement

                                                                                                                    In RMB

                                     Item                                           2016                    2015

I. Cash flows arising from operating activities:

     Cash received from selling commodities and providing labor
                                                                                    5,646,233,371.59       4,513,918,022.06
services

      Net increase of customer deposit and interbank deposit

     Net increase of loan from central bank

     Net increase of capital borrowed from other financial institution

     Cash received from original insurance contract fee

     Net cash received from reinsurance business

     Net increase of insured savings and investment

     Net increase of amount from disposal financial assets that measured
by 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                                                       40,830,918.82           52,037,991.83

     Other cash received concerning operating activities                             128,389,351.09           97,619,762.37

Subtotal of cash inflow arising from operating activities                           5,815,453,641.50       4,663,575,776.26

     Cash paid for purchasing commodities and receiving labor service               3,416,440,017.06       2,488,708,088.55

     Net increase of customer loans and advances

      Net increase of deposits in central bank and interbank

     Cash paid for original insurance contract compensation

      Cash paid for interest, commission charge and commission

     Cash paid for bonus of guarantee slip

     Cash paid to/for staff and workers                                              956,097,686.14          844,157,121.52

     Taxes paid                                                                      442,107,218.12          416,117,387.51

     Other cash paid concerning operating activities                                 473,464,356.14          372,547,408.51




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Subtotal of cash outflow arising from operating activities                            5,288,109,277.46       4,121,530,006.09

Net cash flows arising from operating activities                                       527,344,364.04          542,045,770.17

II. Cash flows arising from investing activities:

       Cash received from recovering investment                                       9,935,861,906.70       6,530,002,670.00

       Cash received from investment income                                           1,207,746,248.77       1,254,769,598.71

       Net cash received from disposal of fixed, intangible and other
                                                                                        82,241,379.95          171,524,392.53
long-term assets

        Net cash received from disposal of subsidiaries and other units

       Other cash received concerning investing activities                              70,178,754.61          406,670,877.27

Subtotal of cash inflow from investing activities                                    11,296,028,290.03       8,362,967,538.51

       Cash paid for purchasing fixed, intangible and other long-term assets           442,372,043.84          568,098,396.38

       Cash paid for investment                                                       9,888,110,985.03       6,514,109,667.70

       Net increase of mortgaged loans

        Net cash received from subsidiaries and other units

       Other cash paid concerning investing activities                                       57,116.41          68,257,168.60

Subtotal of cash outflow from investing activities                                   10,330,540,145.28       7,150,465,232.68

Net cash flows arising from investing activities                                       965,488,144.75        1,212,502,305.83

III. Cash flows arising from financing activities

       Cash received from absorbing investment                                          12,800,000.00           12,812,655.54

       Including: Cash received from absorbing minority shareholders’
                                                                                        12,800,000.00           12,812,655.54
investment by subsidiaries

       Cash received from loans                                                        310,559,165.37          670,000,000.00

       Cash received from issuing bonds

       Other cash received concerning financing activities

Subtotal of cash inflow from financing activities                                      323,359,165.37          682,812,655.54

       Cash paid for settling debts                                                    520,559,165.37          725,000,000.00

       Cash paid for dividend and profit distributing or interest paying               541,130,326.60          449,595,560.55

       Including: Dividend and profit of minority shareholder paid by
                                                                                        24,803,800.00           24,324,710.00
subsidiaries

       Other cash paid concerning financing activities                                     339,091.00          250,677,789.07

Subtotal of cash outflow from financing activities                                    1,062,028,582.97       1,425,273,349.62

Net cash flows arising from financing activities                                       -738,669,417.60        -742,460,694.08

IV. Influence on cash and cash equivalents due to fluctuation in exchange
                                                                                           745,388.07
rate

V. Net increase of cash and cash equivalents                                           754,908,479.26        1,012,087,381.92



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     Add: Balance of cash and cash equivalents at the period -begin                3,040,315,198.85       2,028,227,816.93

VI. Balance of cash and cash equivalents at the period -end                        3,795,223,678.11       3,040,315,198.85


6. Cash Flow Statement of Parent Company

                                                                                                                   In RMB

                                    Item                                           2016                    2015

I. Cash flows arising from operating activities:

     Cash received from selling commodities and providing labor
                                                                                   1,663,923,521.83       1,201,234,821.18
services

     Write-back of tax received

     Other cash received concerning operating activities                             98,413,569.34           52,133,866.21

Subtotal of cash inflow arising from operating activities                          1,762,337,091.17       1,253,368,687.39

     Cash paid for purchasing commodities and receiving labor service               855,651,976.61          721,485,054.15

     Cash paid to/for staff and workers                                             391,878,665.88          366,365,566.89

     Taxes paid                                                                     135,900,666.66           74,211,388.19

     Other cash paid concerning operating activities                                 116,261,020.11         329,019,362.91

Subtotal of cash outflow arising from operating activities                         1,499,692,329.26       1,491,081,372.14

Net cash flows arising from operating activities                                    262,644,761.91         -237,712,684.75

II. Cash flows arising from investing activities:

     Cash received from recovering investment                                      9,479,200,000.00       6,436,000,000.00

     Cash received from investment income                                          1,192,132,808.61       1,249,662,102.71

     Net cash received from disposal of fixed, intangible and other
                                                                                     75,624,378.58          139,446,685.24
long-term assets

      Net cash received from disposal of subsidiaries and other units

     Other cash received concerning investing activities                             39,384,620.61          403,480,877.27

Subtotal of cash inflow from investing activities                                 10,786,341,807.80       8,228,589,665.22

     Cash paid for purchasing fixed, intangible and other long-term assets          206,896,193.89          284,499,684.91

     Cash paid for investment                                                      9,779,200,000.00       6,368,383,160.28

      Net cash received from subsidiaries and other units

     Other cash paid concerning investing activities                                      57,116.41          68,257,168.60

Subtotal of cash outflow from investing activities                                 9,986,153,310.30       6,721,140,013.79

Net cash flows arising from investing activities                                    800,188,497.50        1,507,449,651.43

III. Cash flows arising from financing activities

     Cash received from absorbing investment




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       Cash received from loans                                                        180,000,000.00          460,000,000.00

       Cash received from issuing bonds

       Other cash received concerning financing activities

Subtotal of cash inflow from financing activities                                      180,000,000.00          460,000,000.00

       Cash paid for settling debts                                                    330,000,000.00          490,000,000.00

       Cash paid for dividend and profit distributing or interest paying               504,733,015.15          414,668,867.66

       Other cash paid concerning financing activities                                                         249,999,607.07

Subtotal of cash outflow from financing activities                                     834,733,015.15        1,154,668,474.73

Net cash flows arising from financing activities                                       -654,733,015.15        -694,668,474.73

IV. Influence on cash and cash equivalents due to fluctuation in exchange
                                                                                           745,388.07
rate

V. Net increase of cash and cash equivalents                                           408,845,632.33          575,068,491.95

       Add: Balance of cash and cash equivalents at the period -begin                 1,734,531,427.66       1,159,462,935.71

VI. Balance of cash and cash equivalents at the period -end                           2,143,377,059.99       1,734,531,427.66




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                                                                                                                                         无锡威孚高科技集团股份有限公司 2016 年年度报告全文


 7. Statement of Changes in Owners’ Equity (Consolidated)

       2016                                                                                                                                                                           In RMB

                                                                                                          2016

                                                                  Owners’ equity attributable to parent company
                                                 Other                     Le
                                                 equity                    ss:
                                              instrument                   In
          Item                                    Per                      ve                                                      Provis
                                                   pet                             Other                                                                        Minority interests Total owners’ equity
                                             Pre                            nt                   Reasonable                        ion of
                           Share capital           ual     Capital reserve     comprehensive                       Surplus reserve           Retained profit
                                             ferr                          or                     reserve                          gener
                                                  cap Ot                          income
                                              ed                            y                                                      al risk
                                                  ital her                 sh
                                             stoc
                                                  sec                      are
                                               k
                                                  urit                      s
                                                   ies
I. Balance at the end
                          1,008,950,570.00               3,396,935,227.97      188,436,372.50      914,648.09 510,100,496.00                 6,677,890,958.83     430,048,887.07     12,213,277,160.46
of the last year

Add: Changes of
accounting policy

       Error correction
of the last period

       Enterprise
combine under the
same control

  Other

II. Balance at the
beginning of this         1,008,950,570.00               3,396,935,227.97      188,436,372.50      914,648.09 510,100,496.00                 6,677,890,958.83     430,048,887.07     12,213,277,160.46
year

III. Increase/                                              20,906,174.92      -43,713,544.99     -825,642.90                                1,167,749,032.05      41,037,210.98      1,185,153,230.06

                                                                                                                                                                                                      85
                                                                      无锡威孚高科技集团股份有限公司 2016 年年度报告全文
Decrease in this year
(Decrease is listed
with ―-‖)

 (i) Total
comprehensive                           -43,713,544.99                 1,672,224,317.05   53,780,463.47    1,682,291,235.53
income

 (ii) Owners’
devoted and             20,906,174.92                    -12,418.48                       12,375,177.63      33,268,934.07
decreased capital

1.Common shares
invested by                                                                               12,800,000.00      12,800,000.00
shareholders

2. Capital invested
by holders of other
equity instruments

3. Amount reckoned
into owners equity
with share-based
payment

4. Other                20,906,174.92                    -12,418.48                         -424,822.37      20,468,934.07

(III) Profit
                                                                        -504,475,285.00   -24,803,800.00   -529,279,085.00
distribution

1. Withdrawal of
surplus reserves

2. Withdrawal of
general risk
provisions


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                                                                                                            无锡威孚高科技集团股份有限公司 2016 年年度报告全文

3. Distribution for
owners (or                                                                                                    -504,475,285.00   -24,803,800.00     -529,279,085.00
shareholders)

4. Other

(IV) Carrying
forward internal
owners’ equity

1. Capital reserves
conversed to capital
(share capital)

2. Surplus reserves
conversed to capital
(share capital)

3. Remedying loss
with surplus reserve

4. Other

(V) Reasonable
                                                                                -813,224.42                                        -314,630.12       -1,127,854.54
reserve

1. Withdrawal in the
                                                                              16,421,979.63                                       2,104,124.88      18,526,104.51
report period

2. Usage in the
                                                                              17,235,204.05                                       2,418,755.00      19,653,959.05
report period

(VI)Others

IV. Balance at the
end of the report      1,008,950,570.00   3,417,841,402.89   144,722,827.51      89,005.19 510,100,496.00    7,845,639,990.88   471,086,098.05   13,398,430,390.52
period


                                                                                                                                                                87
                                                                                                                                    无锡威孚高科技集团股份有限公司 2016 年年度报告全文
  2015
                                                                                                                                                                                     In RMB

                                                                                                     2015

                                                             Owners’ equity attributable to parent company
                                       Other equity
                                        instrument
                                                                       Les
                                            Per
       Item                                                             s:                                                                                  Minority
                                            pet                                                                               Provis
                                       Pre                             Inv     Other                                                                                       Total owners’ equity
                                            ual                                              Reasonable                       ion of                        interests
                    Share capital      ferr          Capital reserve   ent comprehensive                      Surplus reserve           Retained profit
                                            cap Ot                                            reserve                         gener
                                        ed                             ory    income
                                            ital her                                                                          al risk
                                       sto                             sha
                                            sec
                                        ck                             res
                                            urit
                                             ies
I. Balance at the
end of the last     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
year

Add: Changes of
accounting
policy

    Error
correction of the
last period

  Enterprise
combine under
the same control

  Other

II. Balance at
the beginning 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
this year

III. Increase/        -11,250,422.00                 -238,749,185.07        66,838,007.50       47,295.09                               1,107,307,888.91   25,973,116.61        950,166,701.04
                                                                                                                                                                                               88
                                                                      无锡威孚高科技集团股份有限公司 2016 年年度报告全文
Decrease in this
year (Decrease
is listed with
―-‖)

 (i) Total
comprehensive                                         66,838,007.50     1,515,388,285.71   37,375,926.49    1,619,602,219.70
income

 (ii) Owners’
devoted and
                   -11,250,422.00   -238,749,185.07                                        12,812,655.54    -237,186,951.53
decreased
capital

1.Common
shares invested                                                                            12,812,655.54      12,812,655.54
by shareholders

2. Capital
invested by
holders of other
equity
instruments

3. Amount
reckoned into
owners equity
with share-based
payment

4. Other           -11,250,422.00   -238,749,185.07                                                         -249,999,607.07

(III) Profit
                                                                         -408,080,396.80   -24,324,710.00   -432,405,106.80
distribution

1. Withdrawal of
                                                                                                                          89
                                无锡威孚高科技集团股份有限公司 2016 年年度报告全文
surplus reserves

2. Withdrawal of
general risk
provisions

3. Distribution
for owners (or                     -408,080,396.80   -24,324,710.00   -432,405,106.80
shareholders)

4. Other

(IV) Carrying
forward internal
owners’ equity

1. Capital
reserves
conversed to
capital (share
capital)

2. Surplus
reserves
conversed to
capital (share
capital)

3. Remedying
loss with surplus
reserve

4. Other

(V) Reasonable
                    47,295.09                           109,244.58        156,539.67
reserve


                                                                                   90
                                                                                                                                             无锡威孚高科技集团股份有限公司 2016 年年度报告全文

1. Withdrawal in
                                                                                                    17,777,214.23                                                  2,228,444.50         20,005,658.73
the report period

2. Usage in the
                                                                                                    17,729,919.14                                                  2,119,199.92         19,849,119.06
report period

(VI)Others

IV. Balance at
the end of the         1,008,950,570.00               3,396,935,227.97            188,436,372.50      914,648.09 510,100,496.00                6,677,890,958.83 430,048,887.07      12,213,277,160.46
report period


8. Statement of Changes in Owners’ Equity (Parent Company)

2016
                                                                                                                                                                                            In RMB

                                                                                                                    2016
                                                               Other equity
                                                                 instrument
                                                                      Perp                            Less:         Other
                Item                                                                                                             Reasonabl
                                                                      etual
                                      Share capital          Preferr         Ot   Capital reserve    Inventor comprehensive                   Surplus reserve   Retained profit   Total owners’ equity
                                                                      capit                                                      e reserve
                                                                ed           he
                                                                        al                           y shares       income
                                                              stock           r
                                                                       secu
                                                                      rities
I. Balance at the end of the
                                          1,008,950,570.00                        3,427,939,852.32              188,436,372.50                 510,100,496.00 4,707,458,645.89       9,842,885,936.71
last year

       Add: Changes of
accounting policy

            Error correction of
the last period

            Other

II. Balance at the beginning of           1,008,950,570.00                        3,427,939,852.32              188,436,372.50                 510,100,496.00 4,707,458,645.89       9,842,885,936.71

                                                                                                                                                                                                      91
                                                                   无锡威孚高科技集团股份有限公司 2016 年年度报告全文
this year

III. Increase/ Decrease in this
year (Decrease is listed with     20,468,934.07   -43,713,544.99                     818,185,433.90    794,940,822.98
―-‖)

 (i) Total comprehensive
                                                  -43,713,544.99                   1,322,660,718.90   1,278,947,173.91
income

 (ii) Owners’ devoted and
                                  20,468,934.07                                                         20,468,934.07
decreased capital

1.Common shares invested by
shareholders

2. Capital invested by holders
of other equity instruments

3. Amount reckoned into
owners equity with
share-based payment

4. Other                          20,468,934.07                                                         20,468,934.07

(III) Profit distribution                                                           -504,475,285.00   -504,475,285.00

1. Withdrawal of surplus
reserves

2. Distribution for owners (or
                                                                                    -504,475,285.00   -504,475,285.00
shareholders)

3. Other

(IV) Carrying forward internal
owners’ equity

1. Capital reserves conversed
to capital (share capital)

                                                                                                                     92
                                                                                                                                         无锡威孚高科技集团股份有限公司 2016 年年度报告全文

2. Surplus reserves conversed
to capital (share capital)

3. Remedying loss with
surplus reserve

4. Other

(V) Reasonable reserve

1. Withdrawal in the report                                                                                                  3,396,256.
                                                                                                                                                                                       3,396,256.71
period                                                                                                                                 71

                                                                                                                             3,396,256.
2. Usage in the report period                                                                                                                                                          3,396,256.71
                                                                                                                                       71

(VI)Others

IV. Balance at the end of the
                                     1,008,950,570.00                        3,448,408,786.39               144,722,827.51                  510,100,496.00 5,525,644,079.79      10,637,826,759.69
report period

  2015
                                                                                                                                                                                          In RMB

                                                                                                                2015
                                                            Other equity
                                                             instrument
                                                                  Perp                            Less:          Other        Reasona
                Item
                                                                 etual
                                     Share capital      Preferr                Capital reserve   Inventor comprehensive          ble        Surplus reserve   Retained profit   Total owners’ equity
                                                                 capit Oth
                                                           ed
                                                                    al  er                       y shares       income         reserve
                                                         stock
                                                                 secur
                                                                  ities
I. Balance at the end of the last
                                     1,020,200,992.00                         3,666,689,037.39               121,598,365.00                 510,100,496.00 3,908,431,926.63        9,227,020,817.02
year

       Add: Changes of
accounting policy

           Error correction of the

                                                                                                                                                                                                    93
                                                                                           无锡威孚高科技集团股份有限公司 2016 年年度报告全文
last period

            Other

II. Balance at the beginning of
                                    1,020,200,992.00   3,666,689,037.39   121,598,365.00     510,100,496.00 3,908,431,926.63   9,227,020,817.02
this year

III. Increase/ Decrease in this
year (Decrease is listed with         -11,250,422.00   -238,749,185.07     66,838,007.50                      799,026,719.26    615,865,119.69
―-‖)

 (i) Total comprehensive
                                                                           66,838,007.50                    1,207,107,116.06   1,273,945,123.56
income

 (ii) Owners’ devoted and
                                      -11,250,422.00   -238,749,185.07                                                         -249,999,607.07
decreased capital

1.Common shares invested by
shareholders

2. Capital invested by holders of
other equity instruments

3. Amount reckoned into
owners equity with share-based
payment

4. Other                              -11,250,422.00   -238,749,185.07                                                         -249,999,607.07

(III) Profit distribution                                                                                    -408,080,396.80   -408,080,396.80

1. Withdrawal of surplus
reserves

2. Distribution for owners (or
                                                                                                             -408,080,396.80   -408,080,396.80
shareholders)

3. Other

(IV) Carrying forward internal

                                                                                                                  &n