WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD.
SEMI-ANNUAL REPORT 2026
August 2026
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Section I. Important Notice, Contents and Interpretation
Board of Directors and all directors, 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.
Rong Bin, Principal of the Company, and Feng Zhiming, person in charge of accounting works, and
Li Yanqing, person in charge of accounting organ (accounting principal) hereby confirm that the
Financial Report of Semi-Annual Report 2026 is authentic, accurate and complete.
All directors have attended the BoD Meeting for the Report deliberation.
The forward-looking statements with future plans involved in the Report do not constitute a
substantial commitment for investors. Investors and related parties should maintain sufficient risk
awareness and investors are advised to exercise caution of investment risks.
Possible risks and countermeasures for the future operation of the Company are described in the
“Discussion and Analysis of the Management” in the Report and investors are advised to check
them out.
The profit distribution plan that was deliberated and approved by the Board Meeting is: based on
total share capital of 966,785,693, distributed 3.00 yuan (tax included) bonus in cash for every 10-
share held by all shareholders, 0 share bonus issued (tax included) and no transfer of capital reserve
into share capital. When the profit distribution plan is implemented, if there is a change in the total
amount of shares entitled to profit distribution, on the basis of the total amount of shares entitled to
profit distribution on the equity registration date at the time of implementation of the distribution
plan, the distribution amount shall be adjusted according to the principle of unchanged distribution
proportion.
The Report is prepared in Chinese and English respectively. In the event of any discrepancy
between the two versions, the Chinese version shall prevail.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Content
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Documents Available for Reference
I. Financial statement carrying the signatures and seals of person in charge of the Company, principal of the
accounting works and person in charge of accounting organ (accounting Supervisor);
II. Original documents of the Company and manuscripts of public notices that disclosed in the website designated
by CSRC during the reporting period;
III. The Semi-Annual report summary is published on China Securities Journal and Securities Times during the
reporting period.
IV. Place for preparation: Office of the BoD of the Company
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Interpretation
Items Refers to Contents
Company, The Company, WFHT Refers to WEIFU HIGH-TECHNOLOGY GROUP CO., LTD.
Weifu Group Refers to Wuxi Weifu Group Co., Ltd.
Wuxi Industry Group Refers to Wuxi Industry Development Group Co., Ltd.
Bosch Refers to Robert Bosch Co., Ltd, ROBERT BOSCH GMBH
RBCD Refers to Robert Bosch Powertrain Ltd.
WFLD Refers to Wuxi Weifu Lida Catalytic Converter Co., Ltd.
WFJN Refers to Nanjing Weifu Jinning Co., Ltd.
WFTT Refers to Ningbo Weifu Tianli Turbocharging Technology Co., Ltd.
WFCA Refers to Wuxi Weifu CHANG?AN Co., Ltd.
WFMA Refers to Wuxi Weifu Mashan Fuel Injection Equipment Co., Ltd.
WFTR Refers to Wuxi Weifu International Tarde Co., Ltd.
WFSC Refers to Wuxi Weifu Schmitter Powertrain Components Co., Ltd.
WFAM Refers to Wuxi Weifu Autocam Precision Machinery Co., Ltd.
WFAS Refers to Wuxi Weifu Autosmart Seating System Co., Ltd.
WFLH Refers to Weifu Lianhua Automotive Parts（Fuzhou）Co., Ltd
SPV Refers to Weifu Holding ApS
IRD Refers to IRD Fuel Cells A/S
Borit Refers to Borit NV
WFQL Refers to Wuxi Weifu Qinglong Power Technology Co., Ltd.
VHIO Refers to VHIT S.p.A. Società Unipersonale
VHWX Refers to VHIT Automotive Systems(Wuxi) Co.Ltd
Lezhuo Bowei Refers to Lezhuo Bowei Hydraulic Technology (Shanghai) Co., Ltd
WuXi Zhuowei Refers to Wuxi Zhuowei TimesHigh-Tech Co., Ltd.
WFSS Refers to Weifu Zhigan(Wuxi) Technology Co., Ltd
WFET Refers to Weifu ET Hydrogen Energy Technology (Wuxi) Co., Ltd.
WFBL Refers to Weifu Baolong (Nanjing) Technology Co., Ltd.
HySTech Refers to Voith HySTech GmbH
WFEC Refers to Wuxi WFEC Catalysts. Co., Ltd.
WFPM Refers to Wuxi Weijing Technology Co., Ltd.
Zhonglian Electronics Refers to Zhonglian Automobile Electronics Co., Ltd.
Autolink Refers to Wuxi Chelian Tianxia Information Technology Co., Ltd.
Changchun Xuyang Refers to Changchun Xuyang Weifu Automobile components Technology Co., Ltd.
CSRC Refers to China Securities Regulatory Commission
SZSE Refers to Shenzhen Stock Exchange
The reporting period Refers to From January 1, 2026 to June 30, 2026
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Section II. Company Profile and Main Financial Indexes
I. Company information
Short form of the stock WFHT, Su Weifu-B Stock code 000581,200581
Previous Short form of the stock Su Weifu-A
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in Chinese) 无锡威孚高科技集团股份有限公司
Short form of the Company (in Chinese) 威孚高科
Foreign name of the Company (if applicable) WEIFU HIGH-TECHNOLOGY GROUP CO.,LTD.
Short form of foreign name of the Company (if applicable) WFHT
Legal representative Yin Zhenyuan
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Liu Jinjun Xu Kan
Contact add. No.6 Huashan Road, Xinwu District, Wuxi No.6 Huashan Road, Xinwu District, Wuxi
Tel. 0510-80505999 0510-80505999
Fax. 0510-80505199 0510-80505199
E-mail Web@weifu.com.cn Web@weifu.com.cn
III. Other information
Whether the registered address, office address, postal code, website, email address, etc. of the Company changed during the report
period or not
□ Applicable ?Not applicable
The registered address, office address, postal code, website, and email address of the Company remained unchanged during the
report period. Please refer to the 2025 Annual Report for details.
Has the information disclosure and location changed during the report period?
□ Applicable ? Not applicable
The website and media name and website of the stock exchange where the Company disclosed its semi-annual report, and the
place of placement of the Company’s semi-annual report remains unchanged during the report period. Please refer to the 2025
Annual Report for details.
Whether there is any change in other relevant information during the report period or not
□ Applicable ?Not applicable
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes ? No
Amount in current Year-on-year increase
Amount in last period
period (+)/decrease (-)
Operation income (RMB) 6,577,060,413.92 5,760,418,633.11 14.18%
Net profit attributable to shareholders of
the listed Company (RMB)
Net profit attributable to shareholders of
the listed Company after deducting non- 862,738,920.84 655,342,454.44 31.65%
recurring gains/losses (RMB)
Net cash flows arising from operating
activities (RMB)
Basic earnings per share (RMB/Share) 0.87 0.72 20.83%
Diluted earnings per share (RMB/Share) 0.87 0.72 20.83%
Weighted average ROE 4.20% 3.49% 0.71%
Ending balance of Ending balance of last Year-on-year
current period period increase(+)/decrease(-)
Total asset (RMB) 30,882,875,115.73 29,667,727,447.65 4.10%
Net asset attributable to shareholders of
listed Company (RMB)
V. Difference of the accounting data under accounting rules in and out of China
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable ? Not applicable
The Company had no difference of the net profit or net asset disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in report period.
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable ?Not applicable
The Company had no difference of the net profit or net asset disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in report period.
VI. Items and amounts of non-recurring gains/losses
?Applicable □Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the write-off that accrued for
impairment of asset)
Governmental grants reckoned into current gain/loss (except for those with normal
operation business concerned, and conform to the national policies & regulations and are
enjoyed at a fixed basis according to certain standards and continuously affect the gain/loss 9,123,350.61
of the Company)
Except for effective hedging business related to the normal operation of the Company, the
fair value gain and loss arising from the holding of financial asset and financial liability by
-45,338,513.37
non-financial enterprises, as well as the gain and loss arising from the disposal of financial
asset and financial liability
Reversal of impairment provision for accounts receivable subject to separate impairment
testing
Gains/losses from debt restructuring -509,395.38
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Other non-operating income and expenditure except for the aforementioned items 1,928,124.84
Less: Impact on income tax -6,806,842.56
Impact on minority shareholders’ equity (post-tax) 1,893,517.15
Total -26,323,048.39
Other gains/losses that conform to the definition of non-recurring gains/losses:
□ Applicable ? Not applicable
The Company does not have other gains/losses that conform to the definition of non-recurring gains/losses.
Information on the definition of non-recurring gains/losses listed in the Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Non-recurring Gains/Losses as Recurring Gains/Losses
□Applicable ?Not applicable
The Company does not have any non-recurring gains/losses listed in the Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Non-recurring Gains/Losses as Recurring Gains/Losses.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Section III. Discussion and Analysis of the Management
I. Major business of the company within reporting period
(I) Main business of the company
The company has been deeply engaged in the automotive core components industry for many years. Leveraging its extensive
technical expertise, comprehensive production system, and broad market presence, it has established three core business segments:
energy and power, automotive intelligence, and new industrial applications and built a diversified product portfolio covering
traditional internal combustion vehicles, new-energy vehicles, off-road machinery, industrial equipment, and energy storage,
providing integrated solutions for domestic and international OEMs, vehicle manufacturers, and related enterprises. During the
reporting period, the company's core products have consistently maintained a leading position in the industry in terms of market
share, technological advancement, and production scale.
This segment represents the Company's core competitive business, focusing on fuel injection systems, exhaust aftertreatment
systems, intake systems, electric drive systems, and automotive thermal management. The Company actively promotes business
transformation and upgrading and continuously expands into emerging markets such as plug-in hybrid electric vehicles, overseas
exports, and electrification. The products fully comply with the latest national and industry emission standards, including China VI
for on-road vehicles and Stage IV for off-road applications, offering customers highly integrated, high-efficiency key components
and comprehensive system solutions.
(1) Fuel Injection System Business: Focusing on products such as high-pressure fuel pumps, high-pressure common rail systems,
injectors, and filters, the Company's offerings are compatible with diesel engines with various power ratings and clean alternative
fuels. These products are widely used in diverse applications including trucks, buses, construction machinery, agricultural
equipment, marine engines, and power generation units. The Company leads the industry in terms of product variety, production
scale, and market share. While maintaining a strong presence in domestic original equipment manufacturer (OEM) markets, it is
actively expanding into overseas markets, with certain products successfully exported to regions such as the Americas, Southeast
Asia, and the Middle East, earning broad recognition from international customers.
(2) Exhaust Aftertreatment System Business: Focusing on diesel, gasoline, and natural gas purifiers, mufflers, catalysts, and
related products, the business caters to diverse applications including conventional and plug-in hybrid passenger vehicles,
commercial vehicles, construction machinery, agricultural equipment, power generation units, motorcycles, etc. The Company
ranks among the top in China in terms of technological capability, market scale, and production capacity. Leveraging advanced
catalytic technology and high purification efficiency, it provides strong support for OEM product upgrades, helping customers
meet the latest emission regulations and enhance their market competitiveness.
(3) Intake System Business: Focusing on products such as diesel, gasoline, and natural gas turbochargers, serving a wide range of
applications including conventional and plug-in hybrid passenger vehicles, commercial vehicles, construction machinery,
agricultural machinery, power generation units, motorcycles, ATVs, UAVs, etc., it provides stable and efficient support services to
major domestic OEMs and vehicle manufacturers. The products offer core advantages in enhanced power output and energy
efficiency, effectively optimizing engine performance while balancing power output with environmental requirements, meeting
diverse power equipment needs in various application scenarios.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
(4) Electric Drive System Business: Focusing on products such as motor shafts, end covers, and water jackets, these components
feature high precision, strong reliability, and broad adaptability. The Company primarily supplies domestic and international new-
energy passenger vehicle manufacturers and electric drive system producers, helping to enhance the power performance and
driving range of new-energy vehicles.
(5) Automotive Thermal Management Business: Includes products such as electronic oil pumps and electronic water pumps.
Focusing on market demands in the thermal management field of new-energy vehicles, these products effectively regulate vehicle
operating temperatures, improving the stability and safety performance of new-energy vehicles. It primarily serves domestic and
international new-energy passenger and commercial vehicle manufacturers.
This segment is a key strategic growth area for the Company's business transformation, focusing on intelligent chassis, smart
cockpit, autonomous driving, and other component and system products. By pursuing both internal growth and external expansion,
it aims to achieve rapid and substantial expansion, creating the Company's second core business segment.
(1) Intelligent Chassis Business: Focusing on core components of fully active hydraulic suspensions and braking systems, the
Company is continuously enhancing our in-house R&D and manufacturing capabilities while deepening external joint ventures. It
aims to develop key components such as suspension motor hydraulic pumps, solenoid valves, and brake actuation systems,
securing a leading advantage in global motor and hydraulic pump technology for active hydraulic suspensions and establishing
industry leadership. Currently, our suspension motor hydraulic pumps have secured production orders from multiple leading
customers, while vacuum pumps are stably supplied to major domestic and international automakers. Meanwhile, next-generation
wire-controlled chassis core components, including WDC solenoid valves and EMB integrated brakes, are under development,
further strengthening our forward-looking technological footprint in the intelligent chassis field.
(2) Intelligent Cockpit Business: Focusing on core components such as automotive seat assemblies and electric long slide tracks,
the Company adheres to a market strategy of serving both passenger and commercial vehicles. By emphasizing high performance,
high quality, and cost-effectiveness, it has established a differentiated competitive advantage, achieving large-scale mass
production for both passenger and commercial vehicle customers.
(3) Autonomous Driving Business: Focusing on products such as millimeter-wave corner radars, front radars, in-cabin radars, and
gate control radars, it can offer customized radar modules and intelligent perception solutions for diverse applications incl uding
autonomous driving, smart cockpits, intelligent parking, and vehicle-to-infrastructure coordination, continuously expanding into
global markets.
This segment represents the Company's strategic growth initiative, proactively positioned in response to industrial technological
advancements. It focuses on hydraulic systems and core components, AIDC thermal management, industrial embodied intelligence
and smart factory systems, new-energy industry chain (including hydrogen) and commercial aerospace precision parts and other
fields. Hydraulic systems and core components serve as the segment’s core business, leveraging joint venture platforms to expand
into mobile and industrial hydraulic markets and continuously building comprehensive competitive advantages in cost,
performance, and responsiveness. Meanwhile, the Company is intensifying its investment in emerging businesses such as AIDC
thermal management components and systems, core parts and systems for industrial embodied intelligence, smart factory systems
and equipment. It is actively advancing R&D and industrial collaboration for key commercial aerospace components, deepening
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
its layout and synergistic capabilities across the new-energy value chain, thereby achieving breakthroughs and high-quality
development of this segment.
(II) Business model
The Company adheres to the business philosophy of "producing high-quality products, creating renowned brands, and achieving
shared value growth," operating under a model of centralized management by the parent Company and decentralized production by
its subsidiaries. The parent Company is responsible for formulating strategic development plans and operational goals, and centrally
manages, guides, and evaluates subsidiaries in areas such as finance, key personnel management, core raw materials, quality control,
and technology research and development. The subsidiaries organize production based on market orders, ensuring consistent product
quality while enabling timely understanding of customer needs, reducing logistics costs, maintaining prompt supply, and enhancing
overall profitability.
(III) Industry development
The Company is engaged in the automotive parts manufacturing industry. In the first half of 2026, the Chinese automotive industry
operated steadily, with cumulative production and sales declines month by month. However, due to pressure on domestic demand, the
production and sales decreased slightly year-on-year. Supported by unexpectedly strong export growth and driven by the ongoing
transformation between old and new drivers of industrial development, the automobile production and sales reached 14.993 million
and 15.017 million units respectively, with year-on-year decreases of 4% and 4.1%.
From January to June 2026, the commercial vehicle market showed a structural feature characterized by "slight domestic demand
decline and export-driven growth." Driven by rapidly increasing penetration of new-energy commercial vehicles and sustained
positive export performance, China's commercial vehicle market achieved year-on-year growth in both production and sales. In the
first half of the year, the production and sales were 2.272 million and 2.297 million units respectively, with year-on-year increases of
of 17.9%. From January to June 2026, the production and sales of trucks were 1.995 million and 2.019 million units respectively,
with year-on-year increases of 8.6% and 8.7%. Among them, the sales of heavy-duty trucks was 661,000 units, with a year-on-year
increase of 22.6%; the sales of medium-duty trucks was 75,000 units, with a year-on-year increase of 25.3%; the sales of light-duty
trucks was 1.05 million units, with a year-on-year increase of 1.3%; the sales of micro trucks was 234,000 units, with a year-on-year
increase of 5.3%. During the same period, the production and sales of buses were 277,000 and 278,000 units respectively, with year-
on-year increases of 6% and 5%. Among them, the sales of large and medium-sized buses was 54,000 units, with a year-on-year
increase of 3.4%, while the sales of light-duty buses was 225,000 units, with a year-on-year increase of 5.4%.
From January to June 2026, the domestic sales of commercial vehicles was 1.633 million units, with a year-on-year increase of 0.8%;
the exports of commercial vehicles was 664,000 units, with a year-on-year increase of 32.5%. The domestic sales of new-energy
commercial vehicles was 496,000 units, with a year-on-year increase of 40.2%, accounting for 30.4% of total domestic sales of
commercial vehicles. Driven by the rapid growth of pure electric models, the electrification process continuously accelerated in the
commercial vehicle market.
From January to June 2026, the passenger vehicle market performed poorly with a slight decline, but Chinese brands showed str ong
performance and exports continued to serve as the core growth driver. The production and sales of passenger vehicles were 12.721
million and 12.72 million units respectively, with year-on-year decreases of 5.9% and 6%. The domestic sales of passenger vehicle
were 8.288 million units, with a year-on-year decrease of 24.3%, while the exports were 4.432 million units, with a year-on-year
increase of 71.7%. From January to June 2026, total sales of Chinese brand passenger vehicles were 9.138 million units, with a year-
on-year decrease of 1.4%, accounting for 71.8% of total sales of passenger vehicle and the market share had a year-on-year increase
of 3.3%.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
From January to June 2026, the new-energy vehicle market maintained steady growth, with the penetration rate of new vehicle sales
continuing to increase. The cumulative production and sales of new-energy vehicles were 7.438 million and 7.446 million units
respectively, with year-on-year increases of 6.7% and 7.3%. The sales of new-energy vehicles accounted for 49.6% of total sales of
new vehicles. Among them, the sales of pure electric vehicles were 4.987 million units, with a year-on-year increase of 13%; the
sales of plug-in hybrid electric vehicles were 2.457 million units, with a year-on-year decrease of 2.5%; the sales of fuel cell vehicle
was 700 units, with a year-on-year decrease of 50.1%. In terms of exports, the export of new-energy vehicles was 2.355 million units,
with a year-on-year increase of 1.2 times. Among them, the export of pure electric vehicles was 1.433 million unit, with a year-on-
year increase of 1.1 times; the export of plug-in hybrid electric vehicles was 922,000, with a year-on-year increase of 1.4 times,
indicating that export of plug-in hybrid electric vehicles grew faster than that of pure electric vehicles. In June alone, the export of
new-energy vehicle was 523,000 units, with a year-on-year increase of 1.6 times, setting a new record high for monthly exports. In
June, the sales of new-energy vehicles were 1.643 million units, with a year-on-year increase of 23.6% and a market penetration rate
of 58.5%.
In the first half of 2026, the domestic demand for construction machinery rebounded due to equipment renewal policies, while strong
demand from overseas markets such as emerging economies and “Belt and Road” regions further boosted the sales. In the first half of
the year, the sales of diesel internal combustion engines for construction machinery was 489,000 units, with a year-on-year increase
of 7.6%. The agricultural machinery benefited from expanded subsidies and robust export growth, and the sales of diesel engines was
(Note: The above industry data sources are the China Association of Automobile Manufacturers, the First Commercial Vehicle
Network, and the China Internal Combustion Engine Industry Association.)
(IV) Company` business during the reporting period
Since this year, the Company has earnestly implemented its annual work objectives and plans and actively seized and responded to
industry opportunities and challenges. During the reporting period, the operating revenue was RMB 6.577 billion, with a year-on-
year increase of 14.18%; the net profit attributable to shareholders of the listed Company was RMB 836 million, with a year-on-year
increase of 19.17%.
Energy & Power Segment: In the fuel injection system business, the Company grasped the growth opportunities in the commercial
vehicle export market, the sales of common rail pumps was nearly 780,000 units, with a year-on-year increase of over 30%; the sales
of inline pumps increased by approximately 14%; in high-power fuel injection system products, it continued to drive the
development of customer projects. In the exhaust aftertreatment system business, the market share steadily increased, the sal es of
gasoline purifiers was about 1.8 million units, the sales of diesel purifiers was about150,000 units; the sales of natural gas purifiers
was significantly increased year-on-year. In the intake system, the business showed strong performance, with notable success in
expanding the market for gasoline turbochargers. The total sales of four-cylinder turbochargers was more than 800,000 units, among
which, the sales of diesel turbochargers were 380,000 units, maintaining the leading domestic market share, the sales of gasoline
turbochargers was more than 420,000 units, with a year-on-year increase of more than 100%. The sales of six-cylinder turbochargers
was approximately 75,000 units, with a year-on-year increase of about 27%, while the sales of high-power turbochargers continued to
increase. Leveraging its leading advantages in core components such as high-power fuel injection systems, turbocharging systems,
and aftertreatment systems, the Company is actively expanding into the diesel and gas generator markets. Automotive Intelligence
Segment: In the suspension motor hydraulic pump products, it completed sample deliveries to customers, and secured new project
approval from global premium automotive brands. The sales of automotive seat assemblies were 90,000 units, with a year-on-year
increase of 20%; the electric long slide rail products received new customer project approvals. The millimeter-wave radar products
entered mass production of multiple automaker projects, and secured the project approval from a leading domestic L4 autonomous
logistics vehicle manufacturer. New Industrial Segment: The hydraulic system business continued to expand in scale, the sales of key
products maintained strong growth, and the joint venture collaboration with Bosch Rexroth was accelerated. The development and
market application of core embodied intelligence components, including dexterous hands, harmonic reducers, and flexible pressure
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
sensors, were actively advanced. The smart factory initiatives were proactively expanded. The non-automotive market expansion for
core components of hydrogen fuel cells was actively pursued, focusing particularly on metal bipolar plates in SOFC (solid oxide fuel
cell) applications. PEM water electrolysis systems had cumulatively completed 1,500 hours of demonstration operation and secured
multiple customer projects and orders for PEM hydrogen generation systems and electrolyzers.
Energy & Power Segment: In the high-power fuel injection system products, completed in-vehicle validation for leading customers'
durability verification of methanol direct injection systems and high-low temperature cycling tests for hydrogen internal combustion
engine injectors. Achieved batch production of aftertreatment system products for multiple categories of China VI-compliant vehicles,
successfully deployed methanol aftertreatment solutions in real-world applications, and promoted development of new heavy-duty
commercial vehicle platforms. Realized mass production of intake system products for multiple new projects involving gasoline,
natural gas, and diesel turbochargers, and carried out research and testing for electric-assisted turbochargers. In automotive thermal
management, achieved volume delivery and order fulfillment of multi-specification electronic oil pumps, and completed sample
deliveries and testing verification for various types of water pumps. Automotive Intelligence Segment: Completed prototype
development and accumulator design of suspension motor hydraulic pumps. In automotive seat systems, completed structural
modeling and design of seat assembly frames and achieved functional validation for electric side-sliding turntable prototypes. In
millimeter-wave radar products, completed design of multiple radar models, and promoted market adaptation and expansion efforts
for 3D corner radars. New Industrial Segment: In hydraulic components, completed the development and prototyping of multiple
new pumps, solenoid valves, and proportional valves. In core components for embodied intelligence, achieved breakthroughs in 11-
degree-of-freedom dexterous hand control technology, and completed process validation, functional development, and customer
samples delivery of various sensing and alarm products. In PEM hydrogen generation systems, completed reliability demonstrati on
operations and sample development and certification of electrolyzers of multiple specifications, and several hydrogen valves passed
qualification certifications and were delivered to customers. In low-iridium catalysts and membrane electrode assemblies, completed
production line commissioning and product development, and realized small-batch supply. Successfully implemented the metal
single-cell battery project and delivered it to customer applications.
The company steadily advanced the implementation and tiered decomposition of its "15th Five-Year" strategic plan, focusing on
three core strategic sectors: energy and power, intelligent automotive, and new industrial. The company completed a step-by-step
breakdown and review of strategic objectives across all business units and functional lines, developed dedicated action plans to
support strategy execution, and conducted in-depth thematic strategic assessments on key business directions. In terms of investment
and financing, it focused on orderly implementing industrial mergers and acquisitions in line with automotive electrification,
continuously expanded the strategic partner ecosystem, and deepened industrial collaboration, project implementation, and capital
investment coordination with key strategic partners. For priority industries under the "15th Five-Year" development plan, it
systematically planned the capital operation pathways such as introducing strategic investors and advancing mixed-ownership reform.
Simultaneously, it established a routine post-investment evaluation mechanism to strengthen post-merger integration capabilities and
continuously refine a closed-loop management system for equity investments throughout their entire lifecycle.
The company continued to systematically improve the value streams of its subsidiaries and business segments, and regularly
conducted improvement activities at the workshop level. It promoted the group's intelligent manufacturing initiatives by formulating
mid and long-term strategic plans for AI technology applications and accelerating the implementation of "AI + manufacturing." It
also promoted and accelerated manufacturing informatization, to enable equipment management system, spare parts management
module and tooling management system to enter development and implementation phases. Carried out blueprint design for digital
projects including production logistics simulation in industrial parks and process mining for manufacturing informatization. The
company was steadily promoting the second phase of its quality management platform construction, orderly implementing functional
modules related to incoming material management and customer quality management across business segments, exploring the
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
application of AI technologies in quality control scenarios, establishing a networked quality tools system to standardize and enable
collaborative use of various tools and methods. The Company was developing two knowledge bases - cleanliness technical standards
and customer quality release criteria, to consolidate and share product cleanliness specifications and customer-specific release
requirements. The Company was steadily advancing the construction of its hydrogen energy industrial park, strengthening process
management for key infrastructure projects such as smart manufacturing park and prototype center upgrades. The Company was
promoting the implementation of its energy strategy, accelerating the development of an energy management platform to ensure the
sustainable operation of its energy management system, and coordinate the execution of various energy-saving and carbon-reduction
transformation projects. The Company organized all functional departments, business segments, and subsidiaries to complete tiered
safety and environmental protection responsibility agreements, continuously reinforcing the primary responsibilities of EHS
(Environment, Health, and Safety).
The Company was steadily advancing organizational optimization at headquarters, streamlining management levels and clarifying
the boundaries of responsibilities among departments. It continued to refine its process authorization system and drive the
implementation of business unit plans under its segments. The Company developed a human resources strategic plan, optimized
systems related to talent management and employee development, and implemented the "1+5+N" incentive framework; established a
strategic talent map, recruited high-end and critical talents, and strengthened the talent pipeline for the "Three Aviation and One
Craftsman" initiative, earned the recognition as a key enterprise in regional talent self-evaluation; advanced the integration of human
resource management systems across overseas subsidiaries, and enabled unified online operation of goal management processes. In
terms of finance, the Company continued to optimize its financial shared services and business processes, conduct routine business
risk assessments, fined cash flow management, and maintained stable net cash inflows from operations; continuously refined
financing structure, and steadily reduced overall financing costs. In procurement and operations, closely monitored market trends and
dynamically adjusted procurement strategies to mitigate supply chain delivery risks and cost fluctuation. Conducted specialized
commercial negotiations for key raw materials, expanded new supply channels, and promoted applications of alternative materials
and introduction of new quality suppliers. Launched a dedicated inventory turnover improvement program, for dynamic tracking of
capital tied up in inventory and efficiency of bill circulation. Continuously enhanced internal control and risk prevention systems,
conducted annual internal control self-audits across all business units and implemented improvements accordingly; carried out
special audits in key areas to ensure effective resolution and closure of identified issues; strengthened internal audit over sight, to
continuously monitor audit rectification outcomes and ensure compliant and stable operations.
II. Analysis on core competitiveness
components after over 60 years of development, establishing long-term, stable, and deeply trusted strategic partnerships with
leading domestic automakers and original equipment manufacturers. The Company's core products cover key areas including fuel
injection systems, exhaust aftertreatment systems, intake systems, core components for electric drive systems, core components for
thermal management systems, core components for braking systems, cabin core components, intelligent sensing modules, and core
components for hydrogen fuel cells, offering a comprehensive product portfolio and strong competitive advantages in the market.
Ranked 46th on the List of 2026 China Automotive Supply Chain Top 100, the Company is a leader in China’s internal
combustion engine industry and one of the top 500 mechanical enterprises in China. Its subsidiaries, Weifu Lida and Weifu Tianli,
have been recognized as the seventh and eighth batches of National Manufacturing Single Champions respectively, while Weifu
Tianli, Weifu Jinning, and Weifu Aotekem have been designated as national "Little Giant" specialized, refined, distinctive, and
innovative enterprises, highlighting the company’s core competitiveness and prominent industry position in niche markets.
platforms including a National-level Enterprise Technology Center, a National High-Tech Research and Development Program
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Industrialization Base, a Postdoctoral Research Station, and Jiangsu Province Graduate Student Workstation. It also operates
multiple provincial-level engineering technology research centers and engineering laboratories, forming a multi-tiered, systematic
innovation system. Focusing on business areas such as energy and power, intelligent automotive systems, and new industrial
applications, the company conducts technological innovation and product development, mastering numerous key core technologies
in the industry. The technical specifications of main products are leading in the industry. In recent years, the company has
strengthened its strategic expansion into emerging businesses, establishing robust capabilities in product development and
technological reserves across new fields, including automotive seats, millimeter-wave radars, fully active suspension motor
hydraulic pumps, electronic water pumps, and core components for embodied intelligence, continuously advancing the
industrialization of its technological achievements.
management system, with a financial shared service platform, enabling efficient integration and smooth operation among
organizational personnel, business processes, and accounting calculations. It has built an HR information system platform to
ensure timely, accurate, and standardized management of foundational data in organization, personnel, compensation, and
attendance. The procurement shared system has been launched, establishing seamless communication channels between the
enterprise and suppliers and enabling closed-loop control throughout the entire procurement process. The company has
implemented the Weifu Production System (WPS) centered on lean thinking, and built a comprehensive quality management
system covering R&D, procurement, production, and after-sales services, demonstrating strong capabilities in manufacturing,
quality assurance, cost control, and product delivery. Leveraging intelligent manufacturing, the company is continuously
advancing the development of digital factories with distinct Weifu characteristics, achieving real-time monitoring and continuous
optimization of production processes through big data analytics, AI technology applications, and upgrades in smart equipment.
of delivering refined service support to customers. By establishing a collaborative mechanism among customer managers across
all business lines, it has effectively integrated resources from the market expansion department and various business units, creating
a unified service system that jointly serves key strategic customers. Through regular executive exchanges and high-level
coordination mechanisms, the company has continuously deepened customer relationships, enhancing customer loyalty and
collaboration depth. The company has built an extensive and responsive after-sales service network, supported by an intelligent
service platform and a nationwide authorized repair system, enabling fast response, professional, efficiency, and full lifecycle
technical support and after-sales services and providing dual assurance for both market expansion and customer services.
industry expertise, rich operational and management experience, and a strong market reputation, providing solid decision-making
support and strategic guidance for the company’s steady growth. The company values employee development and emphasizes
building a core talent team. Over the years, it has cultivated a group of professional, high-quality management and technical
professionals, establishing a well-structured talent pipeline that ensures robust human resources for long-term, stable development.
The company maintains a comprehensive human resources management system, and continuously optimizes processes, systems,
and incentive mechanisms to create a fair, transparent, open, and inclusive career development platform and value realization
pathway for all employees. It places great importance on employee service and care, enhancing the employee experience through
self-service platforms and fostering a warm, supportive, and engaging work environment.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
adhered to open collaboration and win-win cooperation, establishing long-term, stable, and deeply trusted partnerships with high-
quality strategic partners domestically and internationally. In 1984, the company initiated a strategic alliance with Bosch, a global
leader in the industry. Over the years, through joint efforts, the cooperation has expanded across multiple fields, setting an
exemplary model in industry collaboration. Meanwhile, the company has jointly established industrial platforms with renowned
enterprises such as U.S.-based Atekem and Baolong Technology. Leveraging long-term collaborations with leading global
companies, the company has cultivated a high-quality team of management and technical professionals with international
perspectives and cross-cultural communication skills. It has mastered advanced international capabilities in research and design,
manufacturing processes, quality control, and production operations, providing solid support for its international business
expansion and global market strategy.
industry partners, and relying on solid financial fundamentals and adheres to the development philosophy of "industry as the
foundation, capital as the enabler”, the company always focuses on core strategic sectors such as energy and power, intelligent
automotive, and new industrialization to expand its industrial footprint. Through diversified approaches, including equity
investments, joint ventures, and corporate bond issuances, the company continuously strengthens and extends its industrial chain,
nurturing emerging growth opportunities. The company has established a comprehensive and standardized investment decision-
making and post-investment management system, emphasizing strategic alignment between portfolio companies and its core
business, enabling synergistic development between internal growth and external expansion and providing strong support for the
implementation of its medium- to long-term strategy.
"Becoming a World-leading Provider of Intelligent Automotive and New Industrial Systems, the company always upholds core
values of “Dedication, Innovation, Responsibility, and Integration”, and promotes an entrepreneurial spirit characterized by
“Practical Action, Bold Initiative, Effective Collaboration, and Striving for Excellence”, forming a rich and clearly oriented
cultural foundation. The company is committed to building a distinctive cultural system driven by "Quality" and "Intelligence",
and further uniting development consensus and showcasing cultural confidence through branded initiatives such as the regular
“Quality & Intelligence Carnival”, reflecting the company's commitment to its original aspirations and its forward-looking vision.
This outstanding corporate culture provides strong spiritual guidance and cultural support for sustainable and steady operations,
driving continuous pursuit of excellence and serving as a lasting force behind the realization of strategic goals and high-quality
growth.
III. Analysis of main business
Overview
Refer to the relevant content of “1. Major business of the Company within report period”.
Year on year changes in major financial data
In RMB
Amount in current Amount in last Year-on-year increase
Reason
period period (+)/decrease (-)
Operation income 6,577,060,413.92 5,760,418,633.11 14.18%
Operation cost 5,407,931,484.30 4,765,222,793.27 13.49%
Sales expense 71,309,292.67 83,998,662.78 -15.11%
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Administration
expenses 374,153,718.45 381,273,882.00 -1.87%
Mainly due to changes in foreign
exchange gains and losses caused by
exchange rate fluctuations (Exchange
loss for this reporting period was
Financial expenses 8,855,912.51 -35,073,044.09 125.25%
approximately 13.35 million yuan,
compared to an exchange gain of about
last year)
Mainly due to the increase in taxable
Income tax expense 59,955,818.95 42,189,606.93 42.11%
income
R&D expenses 338,140,590.10 350,722,149.70 -3.59%
Mainly due to an increase in cash
Net cash flows
received from sales of goods and
arising from 935,206,251.36 492,874,278.74 89.75%
operating activities provision of services during the
reporting period.
Net cash flows
Mainly due to increased investment
arising from investing -906,451,406.79 719,988,801.17 -225.90%
activities scale
Net cash flows Mainly due to the adjustment in the
arising from -9,331,659.61 -800,783,034.85 98.83% implementation timing of the
financing activities Company’s 2025 year cash dividend.
Net increase of cash Mainly due to the decrease in net cash
-2,257,807.63 448,858,253.58 -100.50%
and cash equivalents flows arising from investing activities.
Significant changes in the composition or source of profits of the Company during the report period
□ Applicable ?Not applicable
There have been no significant changes in the composition or source of profits of the Company during the report period.
Component of operation income
In RMB
Amount in current period Amount in last period
Year-on-year increase
Ratio in operation Ratio in operation
Amount Amount (+)/decrease (-)
income income
Total operation
income
By industry
Automotive
components 6,441,837,362.16 97.94% 5,664,265,047.26 98.33% 13.73%
Other 135,223,051.76 2.06% 96,153,585.85 1.67% 40.63%
By product
Energy and Power 5,607,181,494.67 85.25% 4,808,603,638.15 83.48% 16.61%
Automotive
Intelligence 757,860,795.16 11.52% 753,668,394.13 13.08% 0.56%
New Industrial
System + AI
Other 135,223,051.76 2.06% 96,153,585.85 1.67% 40.63%
By region
Domestic 5,846,941,562.11 88.90% 5,032,603,685.85 87.37% 16.18%
Foreign 730,118,851.81 11.10% 727,814,947.26 12.63% 0.32%
Information on industries, products, or regions accounting for more than 10% of the Company's operating income or operating profit
?Applicable □Not Applicable
In RMB
Year-on-year Year-on-year Year-on-year
Gross increase increase increase
Operating income Operating Cost profit (+)/decrease (- (+)/decrease (-) (+)/decrease (-
rate ) of Operating of Operating ) of gross
income Cost profit rate
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
By industry
Automotive
components
By product
Energy and Power 5,607,181,494.67 4,620,095,327.27 17.60% 16.61% 15.92% 0.49%
Automotive Intelligence 757,860,795.16 642,203,265.49 15.26% 0.56% 0.73% -0.15%
By region
Domestic 5,711,718,510.35 4,710,486,867.82 17.53% 15.70% 14.90% 0.58%
Foreign 730,118,851.81 637,639,903.60 12.67% 0.32% 1.52% -1.03%
IV. Analysis of non-main business
?Applicable □Not applicable
In RMB
Ratio
Amount in total Cause description Whether be sustainable
profit
Investment earnings mainly form the Yes (The joint ventures RBCD, Zhonglian
joint ventures RBCD, Zhonglian Electronics and WFEC maintain stable
Investment
earnings
investment returns are sustained and
stable)
Gains/losses Mainly refers to the fair value changes
from changes -65,717,427.94 -7.25% of tradable financial asset
in fair value
Asset Mainly refers to the provision of
-75,062,255.15 -8.28%
impairment inventory impairment
Non-operating
income
Non-operating
expense 2,075,990.74 0.23%
V. Asset and liability analysis
In RMB
End of current period End of last period Ratio
Note of major
Ratio in Ratio in changes
Amount Amount changes
total asset total asset (+/-)
Monetary funds 2,414,890,487.09 7.82% 2,358,850,312.47 7.95% -0.13%
Accounts receivable 4,122,335,543.56 13.35% 4,341,063,178.47 14.63% -1.28%
Inventory 2,629,912,239.61 8.52% 2,458,134,988.90 8.29% 0.23%
Investment real estate 50,250,692.83 0.16% 52,318,319.87 0.18% -0.02%
Long-term equity
investment
Fixed asset 4,464,761,205.57 14.46% 4,582,924,701.55 15.45% -0.99%
Mainly for
Construction in increasing
progress 425,065,311.64 1.38% 280,431,452.37 0.95% 0.43% long-term asset
investments
Right-of-use asset 89,829,218.94 0.29% 97,945,565.44 0.33% -0.04%
Short-term borrowings 626,107,426.19 2.03% 564,763,810.23 1.90% 0.13%
Mainly due to
increase
Contract liabilities 86,839,084.88 0.28% 63,010,303.58 0.21% 0.07% advance
customer
payments
Long-term borrowings 105,843,351.11 0.34% 87,300,000.00 0.29% 0.05%
Lease liabilities 68,279,058.96 0.22% 73,373,773.23 0.25% -0.03%
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Other receivables 2,134,238,766.20 6.91% 82,980,848.24 0.28% 6.63%
Dividend
receivable from
Including: dividends receivable 2,055,706,449.33 6.66% 5,357,758.49 0.02% 6.64%
participating
companies
?Applicable □Not applicable
The
proportion Is there a
Specific
Cause of Operation Control measures to of overseas significant
content Asset scale Location Revenue
formation model ensure asset security asset to the impairment
of asset
Company’s risk?
net asset
The Company will
A wholly-
fully pay attention to
owned
changes in the
subsidiary
industry and market,
Business of the
strengthen corporate
combinations Company,
RMB governance, personnel
IRD not under
Denmark engaged in
management,
Nil 1.70% No
common R&D,
financial
control production,
management, audit
and sales of
supervision, and
fuel cell
performance
components
evaluation
The Company will
A wholly-
fully pay attention to
owned
changes in the
subsidiary
industry and market,
Business of the
strengthen corporate
combinations Company,
governance, personnel
Borit not under RMB247,791,700.00 Belgium engaged in
management,
Nil 1.24% No
common R&D,
financial
control production,
management, audit
and sales of
supervision, and
fuel cell
performance
components
evaluation
The Company will
A wholly-
fully pay attention to
owned
changes in the
subsidiary
industry and market,
Business of the
strengthen corporate
combinations Company,
governance, personnel
VHIO not under RMB621,160,900.00 Italy engaged in
management,
RMB10,862,100.00 3.10% No
common R&D,
financial
control production,
management, audit
and sales of
supervision, and
Automotive
performance
components
evaluation
?Applicable □ Not applicable
In RMB
Accumulated
Gains/losses
gains/losses Impairment
from Amount
from provision Amount of
Opening changes in of sale
Items changes in accrued in purchase in the Other changes Ending balance
balance fair value in in the
fair value current period
current period
booked into period
period
equity
Financial asset
financial
- -
assets(excluding 2,784,723,352.05 4,774,156,072.48 3,418,704,306.74
derivative 89,262,091.65 4,050,913,026.14
financial asset)
instrument 1,049,138,690.00 0.00 0.00 1,049,138,690.00
investment
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
financing
Subtotal of - -
financial assets 89,262,091.65 3,981,198,194.20
- -
Above total 5,695,781,067.78 4,774,156,072.48 6,399,476,854.41
Financial
liabilities
Other changes: Maturity redemption
Whether there were major changes in the measurement attributes for main assets of the Company in report period or not
□ Yes ?No
In RMB
Item Book value at period-end Restriction reason
Monetary funds 728,665.13 Cash deposit paid for bank acceptance
Monetary funds 317,328.83 Guarantee deposit
Monetary funds 144.17 Cash deposit for Mastercard
Monetary funds 7,820,760.93 Performance bond
Monetary funds 380,066.34 Financial management guarantee deposit
Monetary funds 30,308,794.51 Loan margin
Funds frozen by the court due to litigation are deposits in a corporate
structured deposit account opened by the Company in a bank. The principal
Trading financial assets 10,150,000.00
balance in such deposit account was RMB100.00 million, of which RMB
Receivables financing 370,229,131.46 Notes pledge for bank acceptance
Total 419,934,891.37 --
VI. Analysis on investment
?Applicable □Not applicable
Investment amount during the report period (yuan) Investment amount for the same period last year (yuan) Change
?Applicable Not applicable
□ Applicable ? Not applicable
(1) Securities investment
? Applicable □Not applicable
In RMB
Current
Book Cumula
Account gain/lo Profit Book
Variet Code Short value at tive fair Current Capi
Initial ing ss of Current and loss value at Account
y of of form of the value purcha tal
investment measure fair sales in the the end ing
securit securit securitie beginnin changes se sour
cost ment value amount Reportin of the subject
ies ies s g of the in amount ce
model change g Period period
period equity
s
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Dome
stic Tradabl
Hanma Measure - -
and 60037 1,154,757.5 888,391.5 156,072 648,491. e Own
Technol d at fair 395,972 395,972.
foreig 5 5 6 .48 67 financia fund
ogy value .37 37
n l asset
stocks
- -
Total -- 395,972 0.00 0.00 395,972. -- --
.37 37
Disclosure date of securities investment
Not applicable, Hanma Technology was formed through the conversion of accounts receivable into equity.
approval of the Board
(2) Derivative investment
□ Applicable ? Not applicable
There are no derivative investments during the report period.
□ Applicable ? Not applicable
There is no application of raised proceeds during the report period.
VII. Sales of major asset and equity
□ Applicable ? Not applicable
No major asset was sold during the report period.
□ Applicable ? Not applicable
VIII. Analysis of main controlling and participating companies
? Applicable □ Not applicable
Main subsidiaries and participating enterprises with over 10% influence on net profit of the Company
In RMB
Company Main Operating
Type Register capital Total asset Net asset Operating profit Net profit
name business income
Automotive
parts
Subsidiary 1 Subsidiary manufactur 502,596,300.00 7,008,524,500.52 3,321,705,499.84 2,353,201,262.02 113,670,543.20 89,677,474.44
ing and
sales
Automotive
parts
Participating USD
RBCD manufactur 18,159,830,710.31 6,720,704,315.86 5,068,471,572.52 914,844,891.75 858,569,240.53
enterprise 382,500,000.00
ing and
sales
Automotive
parts
Zhonglian Participating 10,062,968,071.0
manufactur 600,620,000.00 11,771,254,922.11 14,214,738.71 1,343,652,608.66 1,340,597,954.92
Electronics enterprise 9
ing and
sales
Note: The operation profit and net profit presented in Subsidiary 1 do not include investment income from associated enterprises.
Subsidiaries acquired and disposed in report period
Applicable ?Not applicable
Ways of acquiring and disposing of
Corporate name Impact on overall production, operation, and performance
subsidiaries during the report period
The establishment of this company is primarily aimed at expanding the
post-processing system business in the Southeast Asian market, while
WEIFU
also creating a synergistic relationship with the domestic market. With
LIDA(MALAYSIA) Investment establishment
planned investment of 40.00 million yuan, it is expected to have a
SDN.BHD
positive impact on the company's overall operations and future
performance.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
The company primarily engaged in hub motor-related business. Due to
the industry's development falling short of expectations, the strategic
Wuxi Weifu Electric
adjustments by the company and other reasons, it has been liquidated and
Drive Technology Liquidation and cancellation
dissolved. The assets involved in this liquidation are mainly cash-based,
Co., Ltd
and the process will not have a significant impact on the company's
overall operations or financial performance.
The company served as Borit's U.S. business office. Due to the need for
strategic optimization and improved management efficiency, it has been
Borit Inc. Liquidation and cancellation liquidated and dissolved. This liquidation and deregistration will not have
a material impact on the company's overall operations or financial
performance.
Description of major participating enterprises:
Nil
IX. Structured subject controlled by the Company
□ Applicable ? Not applicable
X. Risks faced by the company and corresponding measures
The current global macroeconomic environment remains complex and challenging, with insufficient domestic economic demand.
The automotive industry is facing structural divergence characterized by "pressure on domestic demand and export-driven growth",
intensifying competition and accelerating iteration in new-energy and intelligent technology pathways. If industry sentiment falls
short of expectations or the market landscape undergoes significant changes, it could introduce certain uncertainties regarding the
company's operations, market expansion, and profitability.
Countermeasures: The company will continuously monitor the macroeconomic environment and industry development trends,
dynamically optimize its business strategies, strengthen and solidify its competitive position in core markets, and actively explore
new products, customers, and business areas. Keeping pace with the technological trends of electrification, intelligence, and
integration in the automotive industry, the company will increase R&D investment and technology reserves to enhance product
competitiveness, cost control capabilities, and overall risk resilience, ensuring sustainable and stable operations. At the same time, it
will seize opportunities presented by the rapid growth of export markets and fully leverage its global collaboration advantages, to
steadily expand its international business footprint.
With the continuous promotion of the company's international strategic layout and the continuous expansion of strategic emerging
businesses, especially in the fields of new energies and new industries, the company's management range, business complexity and
investment decision-making difficulty increase accordingly, and there are certain management and investment risks in internal
control, cross-cultural management, project management and control, and the realization of investment benefits.
Countermeasures: The company will continue to improve the modern corporate management system, optimize internal
management processes and operational mechanisms, strengthen system implementation and process control, comprehensively
improve the level of refined management, strengthen the overall planning and risk control of international business, speed up the
introduction of international talents and team building, enhance the ability of overseas business operation, strengthen the whole
life cycle management of new businesses and new projects, to effectively prevent business and investment risks and ensure the
steady realization of the company's strategic objectives.
The main raw materials needed for the company's production include aluminum and precious metals, and their prices are affecte d
by multiple factors such as global macro-economy, supply and demand, and commodity market fluctuations. If the prices of major
raw materials continue to rise sharply, it will directly increase the company's production costs and adversely affect the company's
profitability and operating performance.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Countermeasures: The company will continue to strengthen the research and judgment on the market trend of bulk commodities,
scientifically plan production and inventory strategies, reasonably control the inventory of raw materials, continue to deepen the
collaborative management of supply chain and optimize the procurement mode, strengthen the integration of industrial chain
resources and cost control, absorb the cost pressure through technical upgrading, process optimization, product structure
adjustment, etc., and transfer some risks through reasonable product price adjustment when necessary, so as to minimize the
impact of raw material price fluctuations on the company's operation.
In daily operation, the company can use various financial instruments such as monetary funds, structured deposits, accounts
receivable, equity instruments investment, wealth management products, bank loans and accounts payable, which may result in
credit risk, market risk and liquidity risk. If the relevant risk cannot be controlled completely, it may adversely affect th e
company's asset security, cash flow and operating results.
Countermeasures: The company will continuously identify, evaluate and monitor all kinds of financial risks, define risk
preferences and limits, strictly implement customer credit management, centralized fund management, investment and financing
approval and other control processes, strengthen the whole process management of credit risk, market risk and liquidity risk, to
ensure that all kinds of risks are controlled within a reasonable and tolerable range, effectively guarantee the safe and stable
operation of the company's assets, and safeguard the legal rights and interests of the company and all shareholders.
In recent years, the company has accelerated its strategic transformation into new business areas, actively expanding into full
active hydraulic suspension, intelligent seats, millimeter-wave radar, hydrogen energy, and comprehensive recycling of lithium
batteries. It continues to advance external investments, mergers and acquisitions, integration, and industrial incubation. However,
emerging industries are characterized by rapid technological iteration and long market development cycles, posing risks such as
delayed technology implementation and slower-than-expected market expansion. Additionally, with increasing numbers of
external investment projects, if post-investment integration, business synergy, team alignment, and operational management fail to
meet expectations, the operating performance of invested companies may fall short, negatively impacting the company’s overall
strategic progress and financial results.
Countermeasures: The company will adhere to an industry-driven investment philosophy, strictly follow procedures for project
initiation, due diligence, and decision-making, carefully select investment objects with a strong focus on synergies between
projects and core businesses. It will continuously strengthen full-cycle post-investment management by establishing routine
monitoring and evaluation mechanisms, enhancing oversight over the operations, finances, and major events of invested
enterprises. The company will promote resource integration across business, technology, and management dimensions, proactivel y
identify and mitigate potential operational risks. For emerging businesses still in the development phase, it will conduct forward-
looking risk assessments and manages resource allocation prudently, to ensure the orderly advancement of the company’s strategic
transformation.
XI. Formulation and implementation of market value management system and valuation
enhancement plan
Whether the company has formulated market value management system or not?
?Yes □ No
To strengthen the Company's market value management, further standardize its market value management practices, protect the
legitimate rights and interests of the company's investors (especially medium and small investors) and other stakeholders, enhance
the Company's investment value, and improve investor returns, the Company has formulated the Market Value Management
System in accordance with the relevant provisions of laws, regulations and normative documents such as the Company Law of the
People's Republic of China, the Securities Law of the People's Republic of China, the Guidelines for Supervision of Listed
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Companies No. 10 – Market Value Management, and the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange, as
well as the Articles of Association of the Company, and in combination with the Company's actual situation. This system was
reviewed and approved at the 6th meeting of the 11th session of the Board of Directors on April 16, 2025. Please refer to the full
text of the system disclosed by the Company on April 18, 2025 on the website of Juchao Information for specific details.
Whether the Company has disclosed valuation enhancement plan or not?
□Yes ?No
XII. Implementation of the action plan for “Double Improvement of Quality and Return”
Whether the Company discloses the Action Plan for “Double Improvement of Quality and Return” or not?
□Yes ?No
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Section IV Corporate Governance, Environmental and Social
Responsibilities
I. Changes in directors, supervisors and senior executives
Applicable ? Not applicable
Name Duty Type Date Reason
Rong Bin General Manager Appointed 2026-06-26 Appointed by the BoD
Continued appointed
Xue Liang Deputy General Manager Appointed 2026-06-26
by the BoD
Yin Zhenyuan Chairman Leave office 2026-07-26 Job adjustment
II. Profit distribution and capitalization of capital reserves during the report period
?Applicable □Not applicable
Share capital base for profit distribution proposal (shares) 3
The base number of shares for the distribution plan (shares) 966,785,693
Cash dividend amount (yuan) (including tax) 290,035,707.90
Cash dividend amount in other forms (such as share repurchase) (yuan) 0.00
Total cash dividend (including other forms) (yuan) 290,035,707.90
Distributable profits (yuan) 13,104,974,780.35
The proportion of total cash dividends (including other forms) in the total profit distribution 100%
Cash dividend amount
Other
Detail explanation on profit distribution or capitalization from capital reserves
Based on the 966,785,693 shares, a cash dividend of RMB 3.00 yuan per 10 shares (including tax) will be distributed, no bonus
shares and no capitalization from capital reserves. The total proposed cash dividends for this time is 290,035,707.90 yuan
(including tax). If the total share capital of the Company changes before the implementation of the distribution plan, the Company
will implement profit distribution according to the principle of unchanged distribution proportion and adjustment of the total
amount of distribution. The above distribution plan complies with the provisions of the Company's articles of association and
review procedures, fully protecting the legitimate rights and interests of small and medium-sized investors.
III. Implementation of the Company’s stock incentive plan, employee stock ownership plan
or other employee incentives
□Applicable ?Not applicable
The Company didn’t implement stock incentive plan, employee stock ownership plan or other employee incentives.
IV. Environment information disclosure
Whether the listed company and its major subsidiaries included in the list of enterprises are required to disclose environment
information in accordance with laws?
? Yes □ No
Number of enterprises included in the list of enterprises
required to disclose environmental information in 4
accordance with laws
Query index for the report on environmental information disclosure in
SN Enterprise name
accordance with laws
with the Law (Jiangsu) http://218.94.78.91:18181//spsarchive-
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
V. Social responsibility
In 2026, the Company remained focused on its goal of high-quality development and fully integrated social responsibility into its
corporate strategy. Guided by its commitment to responsible action and long-term positive development, the Company embraced a
service philosophy centered on care, empowerment, and community benefit. It coordinated initiatives in employee care, community
service, charitable assistance, and environmental protection, fulfilling its corporate social responsibilities through practi cal actions
and demonstrating both corporate responsibility and a strong human-centered approach.
Employee care serves as a fundamental foundation for the Company's sustainable development. During the reporting period, the
Company integrated resources from various channels, including the Wuxi Federation of Trade Unions, the Red Cross Society of
Wuxi, and internal corporate mutual aid funds, to establish a comprehensive and targeted employee assistance mechanism. The
Company continued to provide support for employees facing critical challenges, including serious medical needs, children's
education expenses, and family financial difficulties, helping employees overcome hardships and fostering a workplace culture where
employees feel that the Company is like a second home. Meanwhile, the Company actively advanced the development of a "Healthy
Enterprise" by organizing a series of initiatives, including on-site medical consultations in workshops, first-aid skills training, and
public health education sessions on chronic disease prevention. These activities promoted health awareness among employees,
enhanced employees’ ability to respond to emergencies and provide mutual assistance., and provided comprehensive support for their
physical and mental well-being.
In the area of philanthropy and community engagement, the Company actively fulfilled its social responsibilities by donating
RMB75,000 to Red Cross charitable programs. The Company has also received the "Red Cross Fundraising Organization Award" for
multiple consecutive years. With regard to community services, the Company focuses on elderly care, community welfare, and
convenient public services. It carried out environmental protection volunteer activities at Hongfu Home-Based Elderly Care Service
Station and organized the "Making Moxa Hammers with Skillful Hands" handicraft event to bring warmth and care to senior citizens..
Through the Hongfu Community Service Center, the Company organized free medical consultation activities, bringing accessible
healthcare services directly to local residents and strengthening connections between the Company and the surrounding community.
In terms of educational assistance, the Company remained committed to supporting education in remote areas by donating Children's
Day care packages to No. 4 Complete Primary School of Yushu Tibetan Autonomous Prefecture in Qinghai Province, contributing to
the healthy growth and development of young students. The Company also firmly embraced the principles of green development and
launched the public welfare initiative "Strengthen Environmental Protection, Share a Green Future." Employees participated in
volunteer hiking and environmental cleanup activities along the shores of Lake Taihu, taking concrete actions to protect the
ecological environment and promote green, low-carbon, and environmentally responsible values.
Looking ahead, the Company will continue to uphold its commitment to public welfare and proactively fulfill its corporate social
responsibilities. It will further enhance its employee care and support system, deepen its involvement in community services, elderly
care, education assistance and environmental protection initiatives, develop innovative platforms for public welfare initiati ves, and
expand the reach of its social responsibility programs. Rooted in the local community and committed to giving back to society, the
Company will continue to demonstrate corporate warmth through sustained social responsibility practices, contribute to social
harmony and progress through concrete actions, and strengthen its reputation as a responsible corporate citizen.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Section V. Important Events
I. Commitments completed in Period and those completed till the end of the Period from
actual controller, shareholders, related parties, purchaser and companies
?Applicable Not applicable
There are no commitments which are not completed in Period and those completed till the end of the Period from actual controller,
shareholders, related parties, purchaser and companies.
II. Non-operational fund occupation by controlling shareholders and their related parties
□ Applicable ? Not applicable
No non-operational fund occupation by controlling shareholders and their related parties in period.
III. External guarantee out of regulations
□ Applicable ? Not applicable
No external guarantee out of the regulations occurred in the period.
IV. Appointment and dismissal of CPA
Whether the semi-annual financial report has been audited or not?
□ Yes No
The company's semi-annual report has not been audited.
V. Explanation from the BOD, the board of supervisors and independent directors (if
applicable) for “Qualified Audit Opinion” issued by CPA
□ Applicable ?Not applicable
VI. Explanation from the BOD for “Qualified Audit Opinion” of last period
□ Applicable ?Not applicable
VII. Bankruptcy reorganization
□ Applicable ?Not applicable
No bankruptcy reorganization for the Company in report period
VIII. Lawsuits
Material litigation and arbitration matters
□ Applicable Not Applicable
During the report period, the company has no material litigation or arbitration matters.
Other litigation matters
Applicable □ Not Applicable
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Amount Whether Execution Date Index
Results and impacts of
Basic information of litigation involved (in expected Progress of litigation of litigation of of
litigation (arbitration)
(arbitration) ten thousand liability have (arbitration) (arbitration) discl disclos
trial
yuan) been formed judgments osure ure
The Company or its
subsidiaries, as plaintiffs, have It has no significant
Related cases are
no lawsuits that meet the impact on the Case not
disclosure threshold for material company's production yet closed
trial or execution
litigation; summary of other and operation
lawsuits
The Company or its
subsidiaries, as plaintiffs, have It has no significant
Related cases are
no lawsuits that meet the impact on the Case not
disclosure threshold for material company's production yet closed
trial
litigation; summary of other and operation
lawsuits
IX. Penalty and rectification
□ Applicable ?Not applicable
No penalty and rectification for the Company in report period.
X. Integrity of the Company, its controlling shareholder and actual controller
□ Applicable ?Not applicable
XI. Major related transaction
Applicable ? Not applicable
Tradin Wheth
Related
g limit er over
Content party Proportio Clearing Availab
Type of Related approv the
of related Pricing transactio n in form for le
related party ed (in approv Date of Index of
Related party Relationship party princip n amount similar related similar
transactio transacti ten ed disclosure disclosure
transactio le (in ten transactio transacti market
n on price thousa limited
n thousand ns on price
nd or not
yuan)
yuan) (Y/N)
Procure Procure Fair Accord
ment of ment of marke ing to
Joint Market Marke
WFPM goods goods t 1,042.23 0.15% 2,600 N the
venture price t price
and and pricin contrac
services services g t
Procure Procure Fair Accord
Joint ment of ment of marke ing to
Market 50,646.3 120,0 Marke
WFEC venture of goods goods t 7.24% N the
price 5 00 t price
WFLD and and pricin contrac
Announce
services services g t
Associated Procure Procure Fair Accord
enterprise, ment of ment of marke ing to
Market 17,625.1 36,00 Marke
RBCD controlling goods goods t 2.52% N the
price 2 0 t price
subsidiary and and pricin contrac
of Bosch services services g t
Second Procure Procure Fair Accord
largest ment of ment of marke ing to
Market 12,180.1 38,00 Marke
Bosch shareholder goods goods t 1.74% N the
price 2 0 t price
of the and and pricin contrac
Company services services g t
Procure Procure Fair Accord
Holding ment of ment of marke ing to
Market Marke
FALCON company of goods goods t 1.19 0.00% 0 Y the
price t price
IDG and and pricin contrac
services services g t
Procure Procure Fair Accord
Joint ment of ment of marke ing to
Changchun Market Marke
Xuyang
venture of goods goods t 7.82 0.00% 0 Y the
price t price
WFLD and and pricin contrac
services services g t
Procure Procure Fair Accord
ment of ment of marke ing to
Joint Market Marke
Lezhuo Bowei goods goods t 1.97 0.00% 0 Y the
venture price t price
and and pricin contrac
services services g t
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Procure Procure Fair Accord
Holding ment of ment of marke ing to
Market Marke
Zhongcui food company of goods goods t 21.93 0.00% 0 Y the
price t price
IDG and and pricin contrac
services services g t
Fair Accord
Sale of Sale of
marke ing to
Joint goods goods Market Marke
WFPM t 72.58 0.01% 150 N the
venture and and price t price
pricin contrac
services services
g t
Fair Accord
Sale of Sale of
Joint marke ing to
goods goods Market Marke
WFEC venture of t 120.01 0.02% 750 N the
and and price t price
WFLD pricin contrac
services services
g t
Associated
enterprise, Fair Accord
Sale of Sale of
controlling marke ing to
goods goods Market 84,795.6 170,0 Marke
RBCD subsidiary t 12.89% N the
and and price 5 00 t price
of Robert pricin contrac
services services Announce
Bosch g t
Company
Second Fair Accord
Sale of Sale of
largest marke ing to
goods goods Market 104,615. 265,0 Marke
Bosch shareholder t 15.91% N the
and and price 46 00 t price
of the pricin contrac
services services
Company g t
Fair Accord
Sale of Sale of
Joint marke ing to
Changchun goods goods Market Marke
Xuyang
venture of t 2,319.02 0.35% 9,500 N the
and and price t price
WFLD pricin contrac
services services
g t
Fair Accord
Sale of Sale of
marke ing to
Joint goods goods Market Marke
Lezhuo Bowei t 509.99 0.08% 1,800 N the
venture and and price t price
pricin contrac
services services
g t
Fair Accord
Largest Sale of Sale of
marke ing to
shareholder goods goods Market Marke
IDG t 22.58 0.00% 0 Y the
of the and and price t price
pricin contrac
Company services services
g t
Payment
Associated Fair Accord
of
enterprise, marke ing to
technolo Market Marke
RBCD controlling Other t 145.78 200 N the
gy price t price
subsidiary pricin contrac
royalty
of Bosch g t
fees, etc.
Associated Fair Accord
enterprise, Lease marke ing to
Market Marke
RBCD controlling Other receivab t 26.52 100 N the
price t price
subsidiary les pricin contrac
of Bosch g t
Payment
Second Fair Accord
of
largest marke ing to
technolo Market Marke
Bosch shareholder Other t 442.12 500 N the
gy price t price
of the pricin contrac
royalty
Company g t
fees, etc.
Second Fair Accord Announce
Procure
largest marke ing to 2026/4/17 ment No.:
ment of Market Marke
Bosch shareholder Other t 74.88 4,000 N the 2026-008
fixed price t price
of the pricin contrac
assets
Company g t
Second Fair Accord
Provide
largest marke ing to
technical Market Marke
Bosch shareholder Other t 0 2,500 N the
services, price t price
of the pricin contrac
etc.
Company g t
Technic Fair Accord
Joint al marke ing to
Market Marke
WFEC venture of Other services, t 0 100 N the
price t price
WFLD etc. pricin contrac
payable g t
Fair Accord
Joint Lease marke ing to
Market Marke
WFEC venture of Other receivab t 100.45 300 N the
price t price
WFLD le pricin contrac
g t
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Fair Accord
Joint Motion marke ing to
Market Marke
WFEC venture of Other Fee t 23.39 200 N the
price t price
WFLD payable pricin contrac
g t
Fair Accord
Lease marke ing to
Joint Market Marke
Lezhuo Bowei Other receivab t 158.54 400 N the
venture price t price
les pricin contrac
g t
Fair Accord
Motion
marke ing to
Joint Fee Market Marke
Lezhuo Bowei Other t 91.04 0 Y the
venture receivab price t price
pricin contrac
le
g t
Fair Accord
Procure
marke ing to
Joint ment of Market Marke
WFPM Other t 19.2 0 Y the
venture fixed price t price
pricin contrac
assets
g t
Fair Accord
Procure
Holding marke ing to
Eleventh ment of Market Marke
Technology
company of Other t 15.09 0 Y the
fixed price t price
IDG pricin contrac
assets
g t
Fair Accord
Largest Provide
marke ing to
shareholder technical Market Marke
IDG Other t 68.21 0 Y the
of the services, price t price
pricin contrac
Company etc.
g t
Fair Accord
Provide
Holding marke ing to
technical Market Marke
Jiangsu Taiji company of Other t 2.36 0 Y the
services, price t price
IDG pricin contrac
etc.
g t
Procure
ment of Fair Accord
Holding canteen marke ing to
Zhongcui Market Marke
Food
company of Other ingredie t 92.99 0 Y the
price t price
IDG nts and pricin contrac
related g t
supplies
Fair Accord
Holding Lease marke ing to
Market Marke
Junhai Xichan company of Other receivab t 0.92 0 Y the
price t price
IDG les pricin contrac
g t
Total 275,243. 652,1
-- -- -- -- -- -- -- --
Detail of sales return with major amount involved Not applicable
The Company expects the total amount of daily related transactions in 2026 to be 6,521.00 million yuan, and the actual total
amount of daily related transactions that occurred during the report period is 2,752.4351 million yuan, classified as follows : 1. It
Report the actual implementation of the daily related is expected that the purchase of goods and services from related parties in 2026 will not exceed 1,966.00 million yuan, and the
transactions which were projected about their total amount by actual amount incurred during the report period is 815.2673 million yuan; 2. It is expected that the sales of goods and services to
types during the report period (if applicable) related parties in 2026 will not exceed 4,472.00 million yuan, and the actual amount incurred during the report period is
yuan, and the actual amount incurred during the report period is 12.6149 million yuan.
Reasons for major differences between trading price and
Not applicable
market reference price (if applicable)
Note: WFPM’s full name is "Wuxi Weijing Technology Co., Ltd.", it was previously named "Wuxi Weifu Precision Machinery
Manufacturing Co., Ltd.
□ Applicable ? Not applicable
□ Applicable ?Not applicable
□ Applicable ? Not applicable
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
□ Applicable ?Not applicable
□ Applicable ? Not applicable
Applicable ?Not applicable
The Company held the 16th meeting of the 11th board of directors on June 8, 2026, deliberated and approved the proposal on the
formation of Related Party Transactions Caused by Public Tendering. For specific details, please refer to the "Announcement on
Related Party Transactions Caused by Public Tendering" (Announcement No. 2026-015) disclosed by the Company on June 9,
For more information on major related party transactions, please refer to the temporary report disclosure website.
Disclosure date of Name of website disclosing temporary
Name of temporary announcement
temporary announcement announcement
Announcement on Related Party Transactions Caused by
Public Tendering
XII. Significant contract and implementation
□ Applicable ?Not applicable
No trusteeship for the Company in report period
□ Applicable ?Not applicable
No contract for the Company in report period
□ Applicable ?Not applicable
No leasing in the Period
? Applicable □ Not applicable
In ten thousand yuan
The Company’ guarantee towards subsidiaries
Disclosure date of
Name of Guarante Actual Actual Guaranteed by
announcement Guarantee Counter Fulfilled
guarantee ed occurring guaranteed Collateral Guarantee period related parties
related to the type Guarantee or not
d object amount date amount or not
guaranteed amount
Joint Three years from the date on which the
VHIO 2023-04-28 55,000 2023-07-13 7,784 liability NA NA Italian Tax Authority receives the letter of N N
guarantee guarantee
Joint Six months from the maturity date of
VHIO 2023-04-28 55,000 2023-11-16 5,309 liability NA NA each guaranteed obligation, but not later N N
guarantee than June 30, 2028
Two years from the date of VHIO’s full
Joint performance of all supplier obligations,
VHIO 2023-04-28 55,000 2024-04-09 30,706 liability NA NA or the date on which it itself meets the N N
guarantee indicator requirements specified in the
letter of guarantee
The deadline for the debtor of the main
contract to fulfill the debt shall be subject
to the provisions of the main contract.
IRD 2025-04-18 5,742 2025-09-18 2,490 Pledged NA N N
euros in advance according to the provisions of
laws, regulations, rules, or the main
contract agreement, or if both parties to
the main contract agree through
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
consultation, the early due date of the
debt shall be the date on which the debt
performance period expires. If the main
contract stipulates that the debtor shall
repay the debt in installments, the due
date of each debt shall be deemed as the
expiration date of the performance period
for that portion of the debt
Approved total guaranteed amount towards the Total actual amount occurred towards
subsidiaries within report period (B1) subsidiaries within report period (B2)
Approved total guaranteed amount towards the Total actual guarantee balance towards
subsidiaries at the year end (B3) subsidiaries at the year end (B4)
Total amount of the Company’s guarantee (total of the top three)
Approved total amount guaranteed within report Total actual guaranteed amount occurred
period (A1+B1+C1) within report period (A2+B2+C2)
Approved total amount guaranteed at the year Actual total guarantee balance at the year
end (A3+B3+C3) end (A4+B4+C4)
Proportion of actual total guaranteed amount (A4+B4+C4) to net asset 2.31%
Including:
Explanation of situations where there is a guarantee liability or evidence indicating the possibility of assuming joint and several
Nil
liability for the unexpired guarantee contract during the report period (if any)
Explanation of providing external guarantees in violation of prescribed procedures (if any) Nil
Specific description for using the guarantee by complex method: Nil
? Applicable □ Not applicable
In ten thousand yuan
Balance of entrusted wealth Amount with impairment accrual
Type risk characteristics management during the for the overdue financial products
reporting period which has not been recovered
Financing products of banks R1 (Low risk) 253,565 0
Trust financial products R2 (Medium-low risk) 4,079 0
R3 (Medium risk)+R4
Others 32,728 0
(Medium-high risk)
Details of the single major amount, or high-risk trust investment with low security, poor fluidity
□ Applicable ? Not applicable
□ Applicable ? Not applicable
XIII. Reception of investigation, communication and interview during the reporting period
? Applicable □ Not applicable
Reception Reception Reception object Reception Main content talked about and Index of basic situation
Reception mode
time place type Object materials provided of research
Interactive Answered 16 questions
Written inquiry Other Other
relationship investor relations
Telephoning Other Other communications with
the investors
XIV. Explanation on other significant events
? Applicable Not applicable
There are no other significant events to be explained.
XV. Significant events of subsidiaries of the Company
? Applicable Not applicable
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in share capital
In Share
Before the Change Change during the report period (+/-)) After the change
Public
New reserve
Bonus
Amount Proportion shares transfer Others Subtotal Amount Proportion
shares
issued into share
capital
I. Restricted
shares
shares
legal person’s
shares
shares
Including:
Domestic legal
person’s shares
Domestic natural
person’s shares
Including:
Foreign legal
person’s shares
Foreign natural
person’s shares
II. Unrestricted
shares
shares
listed foreign 172,380,000 17.83% 172,380,000 17.83%
shares
foreign shares
III. Total shares 966,785,693 100.00% 0 0 966,785,693 100.00%
Reasons for share changed
?Applicable □Not applicable
During the report period, changes in executive lock up of shares resulting in changes in restricted and unrestricted shares.
Approval status of share changes
□Applicable ?A Not applicable
Ownership transfer of share changed
□Applicable ?Not applicable
Progress of the implementation of buyback share
□Applicable ?Not applicable
Progress of the implementation of reducing buyback shares by means of centralized bidding
□Applicable ?Not applicable
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Influence on the basic EPS and diluted EPS as well as other financial indexes of net asset 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
?Applicable □Not applicable
In Share
Opening Restricted Shares Ending
Date for
Shareholders restricted shares increased released in restricted Restricted reasons
released
shares in the Period Period shares
Lock-up shares held
Rong Bin 84,000 0 0 84,000 Nil
by senior executives
Lock-up shares held
Feng Zhiming 48,894 0 0 48,894 Nil
by senior executives
Lock-up shares held
Xu Sheng 84,000 0 0 84,000 Nil
by senior executives
Lock-up shares held
Liu Jinjun 84,000 0 0 84,000 Nil
by senior executives
Lock-up shares held
Li Gang 84,000 0 0 84,000 Nil
by senior executives
Lock-up shares held
Former directors, supervisors by former directors,
and senior management supervisors and senior
management
Total 500,394 0 14,250 514,644 -- --
II. Securities issuance and listing
□ Applicable ? Not applicable
III. Number and shareholding situation of Company shareholders
In Share
Total preference shareholders with voting rights recovered at end of last
Total common stock shareholders at end of the report period 62,701 0
month before annual report disclosed (if applicable)(refer to Note 8)
Particulars about shares held above 5% by shareholders or top 10 shareholders(Excluding shares lent through refinancing)
Information of shares
Proportion Total of common Changes in Number of Amount of
Nature of pledged, tagged or frozen
Full name of Shareholders of shares shares held at the report restricted unrestricted
shareholder State of
held end of report period period shares held shares held Amount
share
Wuxi Industry Development State-owned
Group Co., Ltd. corporate
Foreign
Robert Bosch Co., Ltd 15.44% 149,241,339 0 0 149,241,339 N/A 0
corporate
State-owned
SOOCHOW Securities 1.62% 15,679,495 6,037,400 0 15,679,495 Pleged 3,495,800
corporate
NSSF-413 Other 0.95% 9,180,001 60,000 0 9,180,001 N/A 0
FIDELITY INVMT TRT
Foreign
FIDELITY INTL SMALL CAP 0.93% 8,972,271 0 0 8,972,271 N/A 0
corporate
FUND
NSSF-107 Other 0.70% 6,795,000 1,362,100 0 6,795,000 N/A 0
Hong Kong Securities Clearing Foreign
Company corporate
Domestic
Xie Zuogang natural 0.58% 5,562,767 0 0 5,562,767 N/A 0
person
Domestic
Lin Chuan natural 0.57% 5,500,000 -91,000 0 5,500,000 N/A 0
person
Guolian An Fund - China
Other 0.53% 5,104,900 624,000 0 5,104,900 N/A 0
Pacific Life Insurance Co., Ltd.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
- Dividend Insurance - Guolian
An Fund - China Pacific Life
Equity Relative Yield
(Guaranteed Dividend) Single
Asset Management Plan
Strategy investor or general legal person
becoming the top 10 shareholders by placing Nil
new shares (if applicable)
Among the aforesaid shareholders, there has no associated relationship between Wuxi Industry Development Croup
Explanation on associated relationship
Co., Ltd., the first largest shareholder of the Company, and other shareholders; and they do not belong to the persons
concerted action among the aforesaid
acting in concert regulated by the Management Measure of Information Disclosure on Change of Shareholding for
shareholders
Listed Company.
Description of the above shareholders in
relation to delegate/entrusted voting rights and Nil
abstention from voting rights.
Special note on the repurchase account among
Nil
the top 10 shareholders (if applicable)
Particular about top 10 shareholders with unrestricted shares held(Excluding shares lent through refinancing, locked-up shares for senior executives)
Amount of unrestricted shares held at Shares held
Shareholders’ name
Period-end Type Amount
Wuxi Industry Development Group Co., Ltd. 213,202,199 RMB common shares 213,202,199
RMB common shares 115,260,600
Robert Bosch Co., Ltd 149,241,339
Domestically listed foreign shares 33,980,739
SOOCHOW Securities 15,679,495 RMB common shares 15,679,495
NSSF-413 9,180,001 RMB common shares 9,180,001
FIDELITY INVMT TRT FIDELITY INTL SMALL CAP FUND 8,972,271 Domestically listed foreign shares 8,972,271
NSSF-107 6,795,000 RMB common shares 6,795,000
Hong Kong Securities Clearing Company 6,081,864 RMB common shares 6,081,864
Xie Zuogang 5,562,767 Domestically listed foreign shares 5,562,767
Lin Chuan 5,500,000 RMB common shares 5,500,000
Guolian An Fund - China Pacific Life Insurance Co., Ltd. -
Dividend Insurance - Guolian An Fund - China Pacific Life
Equity Relative Yield (Guaranteed Dividend) Single Asset
Management Plan
Among the aforesaid shareholders, there has no associated relationship between Wuxi Industry
Explanation on associated relationship or consistent actors
Development Croup Co., Ltd., the first largest shareholder of the Company, and other shareholders;
within the top 10 restricted shareholders and between top 10
and they do not belong to the persons acting in concert regulated by the Management Measure of
unrestricted shareholders and top 10 shareholders
Information Disclosure on Change of Shareholding for Listed Company.
Explanation on top 10 shareholders involving margin business
Nil
(if applicable)
Shareholders holding more than 5% of the shares, top 10 shareholders or top ten unrestricted shareholders participating in the
lending of shares through refinancing business
□Applicable ? Not applicable
Top 10 shareholders or top ten unrestricted shareholders participating in the lending/returning of shares through refinancing
business
□Applicable ? Not applicable
Whether the top ten common shareholders or top ten unrestricted shareholders have agreed repurchase dealing in report period or
not?
□ Yes ? No
The top ten common shareholders or top ten unrestricted shareholders didn’t have agreed repurchase dealing in report period.
IV. Changes in shareholding of directors, supervisors, and senior management
?Applicable Not applicable
The shareholdings of the company's directors, supervisors and senior management did not change during the report period; for
details, please refer to the 2025 Annual Report.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
V. Changes of controlling shareholders or actual controller in report period
Changes of controlling shareholders in report period
□ Applicable ? Not applicable
The Company had no changes of controlling shareholders in report period
Changes of actual controller in report period
□ Applicable ? Not applicable
The Company had no changes of actual controller in report period
VI. Preferred stock
□ Applicable ? Not applicable
The Company had no preferred stock in report period.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Section VII. Corporate Bonds
I. Enterprise bonds
□ Applicable ? Not applicable
II. Corporate bonds
? Applicable ? Not applicable
Unit: Ten Thousand Yuan
Bond Issue Interest Maturit Bond Interest Principal and interest repayment Securities
Bond name Bond code
abbreviation date accrual date y date balance rate method Trading Venue
Interest is calculated at a simple
WFHT 2025 Sci-
annual rate without compound
Tech Innovation
interest. Interest is paid annually,
Corporate Bond 2025- 2028- Shenzhen Stock
(465 Modern 12-05 12-08 Exchange
at maturity, and the final interest
Industrial Cluster
payment is made together with
Special)
the principal redemption.
Investor appropriateness arrangements (if any) The corporate bond is publicly issued to professional institutional investors
Applicable trading mechanism Matched transaction, negotiated transaction, click transaction, inquiry transaction, competitive bidding transaction
Risk of termination of listing and trading (if any)
None
and response measures
Overdue unpaid bonds
Applicable ? Not Applicable
Applicable ? Not Applicable
Applicable ? Not Applicable
safeguards during the reporting period, as well as their impact on the rights and interests of bond
investors
Applicable ? Not Applicable
III. Non-financial corporate debt financing instruments
Applicable ? Not Applicable
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
IV. Convertible bond
Applicable ? Not Applicable
V. During the reporting period, the consolidated financial statements incurred losses
exceeding 10% of the net assets at the end of the previous year
Applicable ? Not Applicable
VI. Major accounting data and financial indicators of the Company in the recent two years
as of the end of the reporting period
Unit: Ten Thousand Yuan
Year-on-year
Item End of the reporting period End of the previous year
increase/decrease (+/-)
liquidity ratio 1.93 1.85 4.32%
asset-liability ratio 32.09% 29.69% 2.40%
quick ratio 1.64 1.54 6.49%
Year-on-year
The reporting period Same period of last year
increase/decrease (+/-)
Net profit after deducting non-
recurring gains and losses
EBITDA to total debt ratio 33.33% 35.55% -2.22%
Interest coverage ratio 59.57 84.50 -29.50%
Cash interest coverage ratio 108.01 65.93 63.83%
EBITDA interest coverage ratio 83.94 125.62 -33.18%
Loan repayment rate 100.00% 100.00% 0.00%
Interest coverage 100.00% 100.00% 0.00%
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Section VIII. Financial Report
I. Audit report
Whether the Semi-Annual report is audited
□Yes ?No
The Company's Semi-Annual financial report has not been audited
II. Financial statement
Statement in Financial Notes are carried in RMB/CNY
Prepared by Weifu High-Technology Group Co., Ltd.
June 30, 2026
In RMB
Item Ending balance Beginning balance
Current assets:
Monetary funds 2,414,890,487.09 2,358,850,312.47
Settlement provisions
Capital lent
Tradable financial assets 2,668,446,370.48 2,334,658,155.36
Derivative financial assets
Notes receivable 219,852,886.48 93,133,355.40
Accounts receivable 4,122,335,543.56 4,341,063,178.47
Receivable financing 1,931,633,857.67 1,861,919,025.73
Accounts paid in advance 127,281,493.52 99,492,959.55
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other accounts receivable 2,134,238,766.20 82,980,848.24
Including: Interest receivable
Dividend receivable 2,055,706,449.33 5,357,758.49
Buying back the sale of financial
assets
Inventories 2,629,912,239.61 2,458,134,988.90
Including: data resource
Contract assets
Assets held for sale
Non-current asset due within one
year
Other current assets 126,873,106.40 137,849,612.83
Total current assets 17,165,720,148.27 14,457,115,642.42
Non-current assets:
Loans and payments on behalf
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Creditors' investment
Other creditors' investment
Long-term accounts receivable
Long-term equity investment 5,822,527,426.36 7,299,370,031.76
Investment in other equity
instrument
Other non-current financial
assets
Investment real estate 50,250,692.83 52,318,319.87
Fixed assets 4,464,761,205.57 4,582,924,701.55
Construction in progress 425,065,311.64 280,431,452.37
Productive biological assets
Oil and gas assets
Right-of-use assets 89,829,218.94 97,945,565.44
Intangible assets 450,562,433.10 478,905,295.60
Including: Data resources
Development expenditure
Including: Data resources
Goodwill 1,784,086.79 1,784,086.79
Long-term expenses to be
apportioned
Deferred income tax assets 300,875,710.90 309,899,010.51
Other non-current assets 254,404,857.95 249,239,314.05
Total non-current assets 13,717,154,967.46 15,210,611,805.23
Total assets 30,882,875,115.73 29,667,727,447.65
Current liabilities:
Short-term loans 626,107,426.19 564,763,810.23
Loan from central bank
Capital borrowed
Tradable financial liabilities
Derivative financial liabilities
Note payable 2,629,903,122.45 1,913,336,503.36
Accounts payable 4,237,833,475.69 4,375,877,094.85
Accounts received in advance 4,013,931.36
Contract liabilities 86,839,084.88 63,010,303.58
Selling financial asset of
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 230,734,900.13 364,256,169.69
Taxes payable 62,194,402.89 71,255,035.47
Other accounts payable 741,318,575.43 65,306,720.22
Including: Interest payable
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Dividend payable 676,749,985.10 2,937,600.00
Handle fee and commission
payable
Reinsurance payable
Liabilities held for sale
Non-current liabilities due
within one year 28,958,678.66 130,157,223.15
Other current liabilities 236,086,884.45 245,935,469.10
Total current liabilities 8,879,976,550.77 7,797,912,261.01
Non-current liabilities:
Insurance contract reserve
Long-term loans 105,843,351.11 87,300,000.00
Bonds payable 505,335,616.44 500,624,657.53
Including: Preferred stock
Perpetual capital securities
Lease liabilities 68,279,058.96 73,373,773.23
Long-term accounts payable 7,780,000.00 7,780,000.00
Long-term wages payable 78,406,055.33 80,454,470.77
Accrual liability 113,660,642.29 105,455,503.64
Deferred income 127,651,476.51 128,942,021.14
Deferred income tax liabilities 22,760,530.12 27,018,658.45
Other non-current liabilities
Total non-current liabilities 1,029,716,730.76 1,010,949,084.76
Total liabilities 9,909,693,281.53 8,808,861,345.77
Owner’s equity:
Share capital 966,785,693.00 966,785,693.00
Other equity instrument
Including: Preferred stock
Perpetual capital
securities
Capital public reserve 2,687,763,305.94 2,686,504,136.26
Less: Inventory shares
Other comprehensive income 66,340,494.45 122,398,098.62
Reasonable reserve 7,539,452.76 8,619,634.17
Surplus public reserve 510,100,496.00 510,100,496.00
Provision of general risk
Retained profit 15,782,810,442.46 15,623,144,555.11
Total owner’ s equity attributable to
parent company 20,021,339,884.61 19,917,552,613.16
Minority interests 951,841,949.59 941,313,488.72
Total owner’ s equity 20,973,181,834.20 20,858,866,101.88
Total liabilities and owner’ s equity 30,882,875,115.73 29,667,727,447.65
Legal Representative: Rong Bin
Person in charge of accounting works: Feng Zhiming
Person in charge of accounting institute: Li Yanqing
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
In RMB
Item Ending balance Beginning balance
Current assets:
Monetary funds 1,272,579,711.13 641,573,048.70
Tradable financial assets 698,009,907.17 972,513,172.06
Derivative financial assets
Notes receivable 7,800,082.62 8,526,802.49
Accounts receivable 1,713,881,244.37 1,675,175,133.11
Receivable financing 353,041,542.80 339,279,089.10
Accounts paid in advance 81,241,611.02 54,801,020.36
Other accounts receivable 2,354,509,084.01 489,034,511.33
Including: Interest receivable 385,076.40 117,347.22
Dividend receivable 1,942,779,301.20 5,357,758.49
Inventories 530,898,534.27 502,216,446.23
Including: Data resources
Contract assets
Assets held for sale
Non-current assets maturing
within one year 637,645,342.46 429,658,356.15
Other current assets 277,302.15 340,501.80
Total current assets 7,649,884,362.00 5,113,118,081.33
Non-current assets:
Creditors' investment
Other creditors' investment
Long-term receivables
Long-term equity investments 8,802,817,491.78 10,263,381,015.17
Investment in other equity
instrument
Other non-current financial
assets
Investment real estate 31,626,370.41 32,191,785.94
Fixed assets 2,692,203,559.20 2,756,810,568.23
Construction in progress 86,843,738.58 81,553,060.91
Productive biological assets
Oil and natural gas assets
Right-of-use assets 2,303,346.14 2,848,428.84
Intangible assets 237,545,953.78 248,718,256.80
Including: Data resources
Development expenditure
Including: Data resources
Goodwill
Long-term deferred expenses 1,058,463.57 953,697.60
Deferred income tax assets 152,711,207.93 150,842,007.83
Other non-current assets 82,208,577.84 59,617,807.63
Total non-current assets 13,812,775,335.49 15,321,373,715.64
Total assets 21,462,659,697.49 20,434,491,796.97
Current liabilities:
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Short-term borrowings 200,294,666.67 120,077,366.66
Tradable financial liabilities
Derivative financial liabilities
Notes payable 484,027,343.32 416,966,899.26
Accounts payable 1,165,854,315.14 1,102,968,435.44
Accounts received in advance
Contract liabilities 15,543,586.10 42,488,783.95
Wage payable 84,201,004.87 151,440,447.76
Taxes payable 18,273,128.13 12,706,911.51
Other accounts payable 1,290,356,704.37 118,495,769.42
Including: Interest payable 1,084,230.31 402,153.88
Dividend payable 676,749,985.10
Liabilities held for sale
Non-current liabilities due
within one year
Other current liabilities 43,329,722.53 41,804,577.18
Total current liabilities 3,302,881,500.60 2,108,135,693.88
Non-current liabilities:
Long-term loans 84,600,000.00 87,300,000.00
Bonds payable 505,335,616.44 500,624,657.53
Including: Preferred stock
Perpetual capital
securities
Lease liabilities 1,451,274.24 1,641,972.69
Long-term accounts payable
Long term employee
compensation payable
Accrued liabilities 28,520,013.04 22,655,337.99
Deferred income 87,599,549.27 98,433,860.70
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 762,326,152.50 765,475,528.42
Total liabilities 4,065,207,653.10 2,873,611,222.30
Owners’ equity:
Share capital 966,785,693.00 966,785,693.00
Other equity instrument
Including: Preferred stock
Perpetual capital
securities
Capital public reserve 2,815,591,075.04 2,815,516,424.65
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve 510,100,496.00 510,100,496.00
Retained profit 13,104,974,780.35 13,268,477,961.02
Total owner’s equity 17,397,452,044.39 17,560,880,574.67
Total liabilities and owner’s equity 21,462,659,697.49 20,434,491,796.97
In RMB
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Item 2026 semi-annual 2025 semi-annual
I. Total operating income 6,577,060,413.92 5,760,418,633.11
Including: Operating income 6,577,060,413.92 5,760,418,633.11
Interest income
Insurance gained
handle fee and commission income
II. Total operating cost 6,238,097,591.51 5,577,970,476.35
Including: Operating cost 5,407,931,484.30 4,765,222,793.27
Interest expense
Handle fee 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
Taxes and surcharge 37,706,593.48 31,826,032.69
Sales expense 71,309,292.67 83,998,662.78
Administrative expense 374,153,718.45 381,273,882.00
R&D expense 338,140,590.10 350,722,149.70
Financial expense 8,855,912.51 -35,073,044.09
Including: Interest expenses 15,471,988.00 9,045,918.64
Interest income 21,956,678.73 26,681,031.13
Add: Other income 39,765,670.19 76,133,278.27
Investment income (Loss is listed with “-”) 668,251,528.12 545,945,486.83
Including: Investment income on affiliated company and
joint venture
The termination of income recognition for financial
assets measured by amortized cost
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listed with “-”)
Income from change of fair value (Loss is listed with “-”) -65,717,427.94 27,874,369.01
Loss of credit impairment (Loss is listed with “-”) -4,056,163.68 -1,953,886.07
Losses of devaluation of asset (Loss is listed with “-”) -75,062,255.15 -72,319,585.77
Income from assets disposal (Loss is listed with “-”) 4,785,068.04 -2,041,543.96
III. Operating profit (Loss is listed with “-”) 906,929,241.99 756,086,275.07
Add: Non-operating income 1,296,251.20 2,594,469.11
Less: Non-operating expense 2,075,990.74 3,344,708.84
IV. Total profit (Loss is listed with “-”) 906,149,502.45 755,336,035.34
Less: Income tax expense 59,955,818.95 42,189,606.93
V. Net profit (Net loss is listed with “-”) 846,193,683.50 713,146,428.41
(i) Classify by business continuity
(ii) Classify by ownership
VI. Net after-tax of other comprehensive income -56,057,604.17 137,032,360.03
Net after-tax of other comprehensive income attributable to
-56,057,604.17 137,032,360.03
owners of parent company
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
(I) Other comprehensive income items which will not be
reclassified subsequently to profit of loss
cannot be transferedr to gains/losses
instrument
(ii) Other comprehensive income items which will be
reclassified subsequently to gains/losses -56,057,604.17 137,032,360.03
can transferedr to gains/losses
comprehensive income
investment
-56,057,604.17 137,032,360.03
currency financial statements
Net after-tax of other comprehensive income attributable to
minority shareholders
VII. Total comprehensive income 790,136,079.33 850,178,788.44
Total comprehensive income attributable to owners of parent
Company 780,358,268.28 838,902,668.78
Total comprehensive income attributable to minority
shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.87 0.72
(ii) Diluted earnings per share 0.87 0.72
Legal representative: Rong Bin
Person in charge of accounting works: Feng Zhiming
Person in charge of accounting institute: Li Yanqing
In RMB
Item 2026 semi-annual 2025 semi-annual
I. Operating income 2,231,259,289.81 1,820,777,791.61
Less: Operating cost 1,862,990,153.27 1,554,249,540.67
Taxes and surcharge 18,322,548.67 14,109,546.73
Sales expenses 10,548,632.15 8,866,486.16
Administration expenses 178,693,495.26 173,457,220.14
R&D expenses 95,545,583.34 104,316,954.06
Financial expenses 5,558,072.91 -15,451,453.61
Including: Interest expenses 11,528,904.71 9,462,599.47
Interest income 13,714,466.96 13,414,496.93
Add: Other income 18,710,217.95 27,495,662.20
Investment income (Loss is listed with “-”) 531,598,885.52 969,874,460.06
Including: Investment income on affiliated Company and
joint venture
The termination of income recognition for financial
assets measured by amortized cost (Loss is listed with “-”)
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Net exposure hedging income (Loss is listed with “-”)
Changing income of fair value (Loss is listed with “-”) -73,299,299.54 25,814,893.27
Loss of credit impairment (Loss is listed with “-”) -3,836,223.84 1,440,706.85
Losses of devaluation of asset (Loss is listed with “-”) -20,491,253.23 -30,098,319.74
Income on disposal of assets (Loss is listed with “-”) 24,648.90 -227,341.34
II. Operating profit (Loss is listed with “-”) 512,307,779.97 975,529,558.76
Add: Non-operating income 17,520.14 1,579,331.86
Less: Non-operating expense 947,695.78 294,805.16
III. Total Profit (Loss is listed with “-”) 511,377,604.33 976,814,085.46
Less: Income tax -1,869,200.10 -9,816,241.31
IV. Net profit (Net loss is listed with “-”) 513,246,804.43 986,630,326.77
(i) Continuous operating net profit (net loss listed with ‘-”) 513,246,804.43 986,630,326.77
(ii) Termination of net profit (net loss listed with ‘-”)
V. Net after-tax of other comprehensive income
(i) Other comprehensive income items which will not be
reclassified subsequently to gains/losses
that cannot be transferred to gains/losses
instrument
(ii) Other comprehensive income items which will be
reclassified subsequently to gains/losses
that can transferred to gains/losses
comprehensive income
investment
foreign currency financial statements
VI. Total comprehensive income 513,246,804.43 986,630,326.77
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
In RMB
Item 2026 semi-annual 2025 semi-annual
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
services 8,383,428,091.12 6,910,136,894.62
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
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Net increase of insured savings and investment
Cash received from interest, handle fee and commission
Net increase of capital borrowed
Net increase of returned business capital
Net cash received by agents in sale and purchase of securities
Write-back of tax received 8,141,372.52 13,710,287.85
Other cash received concerning operating activities 34,102,719.80 25,132,854.67
Subtotal of cash inflow arising from operating activities 8,425,672,183.44 6,948,980,037.14
Cash paid for purchasing commodities and receiving labor
service
Net increase of customer loans and advances
Net increase of deposits in central bank and interbank
Cash paid for original insurance contract compensation
Net increase of capital lent
Cash paid for interest, handle fee and commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 996,805,907.38 960,705,389.63
Taxes paid 230,233,020.58 150,801,692.40
Other cash paid concerning operating activities 281,224,629.88 314,143,327.30
Subtotal of cash outflow arising from operating activities 7,490,465,932.08 6,456,105,758.40
Net cash flows arising from operating activities 935,206,251.36 492,874,278.74
II. Cash flows arising from investing activities:
Cash received from recovering investment 4,427,121,253.95 2,550,074,734.38
Cash received from investment income 130,536,670.05 118,028,357.68
Net cash received from disposal of fixed, intangible and other
long-term assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities
Subtotal of cash inflow from investing activities 4,566,741,975.80 2,680,045,215.61
Cash paid for purchasing fixed, intangible and other long-term
assets
Cash paid for investment 5,060,021,033.55 1,546,539,331.14
Net increase of mortgaged loans
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 5,473,193,382.59 1,960,056,414.44
Net cash flows arising from investing activities -906,451,406.79 719,988,801.17
III. Cash flows arising from financing activities:
Cash received from absorbing investment 10,279,000.00 90,514,148.08
Including: Cash received from absorbing minority
shareholders’ investment by subsidiaries 10,279,000.00 90,514,148.08
Cash received from loans 441,679,163.02 543,409,434.14
Other cash received concerning financing activities 30,000,000.00
Subtotal of cash inflow from financing activities 481,958,163.02 633,923,582.22
Cash paid for settling debts 453,561,541.81 431,700,433.57
Cash paid for dividend and profit distributing or interest
paying 11,596,136.93 879,948,893.33
Including: Dividend and profit of minority shareholder paid
by subsidiaries 2,937,600.00
Other cash paid concerning financing activities 26,132,143.89 123,057,290.17
Subtotal of cash outflow from financing activities 491,289,822.63 1,434,706,617.07
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Net cash flows arising from financing activities -9,331,659.61 -800,783,034.85
IV. Influence on cash and cash equivalents due to fluctuation in
exchange rate -21,680,992.59 36,778,208.52
V. Net increase of cash and cash equivalents -2,257,807.63 448,858,253.58
Add: Balance of cash and cash equivalents at the period -
begin 2,020,913,308.04 1,756,944,672.22
VI. Balance of cash and cash equivalents at the period-end 2,018,655,500.41 2,205,802,925.80
In RMB
Item 2026 semi-annual 2025 semi-annual
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
services 1,954,624,236.39 2,298,097,029.77
Write-back of tax received
Other cash received concerning operating activities 10,142,487.95 7,894,895.93
Subtotal of cash inflow arising from operating activities 1,964,766,724.34 2,305,991,925.70
Cash paid for purchasing commodities and receiving labor
service
Cash paid to/for staff and workers 399,888,557.25 375,031,690.96
Taxes paid 71,854,683.92 33,654,293.69
Other cash paid concerning operating activities 86,008,317.06 93,520,007.41
Subtotal of cash outflow arising from operating activities 1,787,454,569.44 2,075,234,820.45
Net cash flows arising from operating activities 177,312,154.90 230,757,105.25
II. Cash flows arising from investing activities:
Cash received from recovering investment 1,693,913,026.14 593,074,734.38
Cash received from investment income 32,467,618.16 492,180,593.60
Net cash received from disposal of fixed, intangible and other
long-term assets
Net cash received from disposal of subsidiaries and other units 41,898,426.99
Other cash received concerning investing activities 72,857,900.00 195,976,116.67
Subtotal of cash inflow from investing activities 1,841,933,099.11 1,281,976,377.89
Cash paid for purchasing fixed, intangible and other long-term
assets
Cash paid for investment 1,709,999,999.99 508,102,019.20
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities 24,040,000.00
Subtotal of cash outflow from investing activities 1,842,354,282.09 750,999,603.91
Net cash flows arising from investing activities -421,182.98 530,976,773.98
III. Cash flows arising from financing activities:
Cash received from absorbing investment
Cash received from loans 200,000,000.00 310,000,000.00
Other cash received concerning financing activities 687,509,701.36 719,967,055.55
Subtotal of cash inflow from financing activities 887,509,701.36 1,029,967,055.55
Cash paid for settling debts 222,700,000.00 199,800,000.00
Cash paid for dividend and profit distributing or interest
paying
Other cash paid concerning financing activities 167,646,393.36 598,859,506.76
Subtotal of cash outflow from financing activities 396,278,985.42 1,681,198,209.32
Net cash flows arising from financing activities 491,230,715.94 -651,231,153.77
IV. Influence on cash and cash equivalents due to fluctuation in
-7,391,283.55 5,418,447.73
exchange rate
V. Net increase of cash and cash equivalents 660,730,404.31 115,921,173.19
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Add: Beginning balance of cash and cash equivalents 581,160,445.96 466,194,368.01
VI. Ending balance of cash and cash equivalents 1,241,890,850.27 582,115,541.20
Current period
In RMB
Owners’ equity attributable to the parent Company
Prov
Other
isio
equity instrument n of
Item gene Total
Perp Less: Other Reaso Minority
ral Ot owners’
Share etua Capital Invento compre nable Surplus Retained interests
Pref risk he Subtotal equity
l reserve ry hensive reserv reserve profit
capital erre Ot r
capi shares income e
d he
tal
stoc r
secu
k
ritie
s
I. Balance 966,78 2,686,5 122,39 510,10 15,623,1 19,917,5
at the end 8,619, 941,313,4 20,858,86
of the last 5,693.0 04,136. 8,098.6 0,496.0 44,555.1 52,613.1
year 0 26 2 0 1 6
Add:
Changes of
accounting
policy
Error
correction
of the last
period
Other
II. Balance 966,78 2,686,5 122,39 510,10 15,623,1 19,917,5
at the 8,619, 941,313,4 20,858,86
beginning 5,693.0 04,136. 8,098.6 0,496.0 44,555.1 52,613.1
of this year 0 26 2 0 1 6
III.
Increase/
Decrease in - -
report 1,259,1 159,665, 103,787, 10,528,46 114,315,73
period 56,057, 1,080,
(Decrease 604.17 181.41
is listed
with “-”)
(i) Total -
comprehens 56,057,
ive income 872.45 268.28 05 79.33
(ii)
Owners’
devoted and
decreased 0.00 0.00
capital
shares 10,279,00 10,279,00
invested by
shareholder 0.00 0.00
s
invested by
holders of
other equity
instruments
reckoned
into owners
equity with
share-based
payment
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
- - - -
(III) Profit
distribution 676,749, 676,749, 9,768,483. 686,518,4
Withdrawal
of surplus
reserves
Withdrawal
of general
risk
provisions
Distribution - - - -
for owners
(or 676,749, 676,749, 9,768,483. 686,518,4
shareholder 985.10 985.10 58 68.68
s)
(IV)
Carrying
forward
internal
owners’
equity
reserves
converted
to capital
(share
capital)
reserves
converted
to capital
(share
capital)
Remedying
loss with
surplus
reserve
over
retained
earnings
from the
defined
benefit
plans
over
retained
earnings
from other
comprehens
ive income
(V) - - -
Reasonable 1,080, 1,080,18 840,048.0
reserve 0
Withdrawal 16,118,8 2,562,995. 18,681,83
in report ,837.6
period 9
report ,019.1
period 19.10 47 1.57
(VI)Others
IV. Balance
at the end
of the 5,693.0 63,305. 494.45 452.76 0,496.0 10,442.4 39,884.6 49.59 1,834.20
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
report 0 94 0 6 1
period
Last period
In RMB
Owners’ equity attributable to the parent Company
Other
equity instrument Pro
Other
Item Per visi Total
Less: compr Reaso Minority
Share petu Surplu on Ot owners
Pref Capital Invent ehensi nable Retained interests
al s of he Subtotal ’ equity
capital erre Ot reserve ory ve reserv profit
capi reserve gen r
d he shares incom e
tal eral
stoc r e
secu risk
k
ritie
s
I. Balance at the 996,986 6,257, 672,063,0
end of the last year 49,101. 2,092. ,405.3 0,496. 24,882.7 28,176.6 591,22
,293.00 090.28 47.24
Add: Changes of
accounting policy
Error correction of
the last period
Other
II. Balance at the 3,263,6 469,72 10,132 510,10 15,523,1 19,840,5 20,512,
beginning of this 49,101. 2,092. ,405.3 0,496. 24,882.7 28,176.6 591,22
year ,293.00 090.28 47.24
III. Increase/ - - 137,03 - - -
Decrease in report 369,71 2,031, 102,329,8
period (Decrease is 25,000, 443,253 2,360. 170,603, 130,075, 27,745,
listed with “-”) 000.00 ,590.09 03 184.95 661.01 850.94
(i) Total 137,03 850,17
comprehensive 2,360. 8,788.4
income 308.75 668.78 9.66
(ii) Owners’ - - - -
devoted and 25,000, 444,726 100,009, 9,495,0
decreased capital 6,764. 8.08
invested by
shareholders 8.08 148.08
by holders of other
equity instruments
reckoned into
owners equity with
share-based
payment
- -
- - -
- -
(III) Profit 872,47
distribution 872,473, 872,473,
surplus reserves
general risk
provisions
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
owners (or 872,473, 872,473, 872,47
shareholders)
(IV) Carrying
forward internal
owners’ equity
converted to capital
(share capital)
converted to capital
(share capital)
with surplus reserve
retained earnings
from the defined
benefit plans
retained earnings
from other
comprehensive
income
(V) Reasonable 2,031, 2,031,98 225,919.7 2,257,9
reserve 989.76 9.76 5 09.51
report period ,886.4
period ,896.6
(VI)Others
IV. Balance at the 2,820,3 100,00 147,16 510,10 15,352,5 19,710,4 20,484,
end of the report 95,511. 5,328. 4,765. 0,496. 21,697.8 52,515.6 845,37
period ,293.00 080.04 57.31
Current period
In RMB
Other
Other
Item equity instrument Less: Reason
Share Capital comprehe Surplus Retained Ot Total owners’
Prefer Perpetual Inventory able
capital Oth reserve nsive reserve profit her equity
red capital shares reserve
er income
stock securities
I. Balance at
the end of the
last year 93.00 ,424.65 96.00 961.02 4.67
Add: Changes
of accounting
policy
Error
correction of
the last period
Other
II. Balance at
the beginning
of this year 93.00 ,424.65 96.00 961.02 4.67
III. Increase/
Decrease in - -
report period 74,650.39 163,503,180 163,428,530.2
(Decrease is
.67 8
listed with “-”)
(i) Total 513,246,804 513,246,804.4
comprehensive
income .43 3
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
(ii) Owners’
devoted and
decreased
capital
shares invested
by
shareholders
invested by
holders of
other equity
instruments
reckoned into
owners equity
with share-
based payment
- -
(III) Profit
distribution 676,749,985 676,749,985.1
.10 0
of surplus
reserves
for owners (or 676,749,985 676,749,985.1
shareholders)
.10 0
(IV) Carrying
forward
internal
owners’ equity
reserves
converted to
capital (share
capital)
reserves
converted to
capital (share
capital)
loss with
surplus reserve
retained
earnings from
the defined
benefit plans
retained
earnings from
other
comprehensive
income
(V)
Reasonable
reserve
in report 3,098,156.73
period
report period 56.73
(VI)Others 74,650.39 74,650.39
IV. Balance at
the end of the
report period 93.00 ,075.04 96.00 780.35 4.39
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Last period
In RMB
Other
Other
Item equity instrument Less: Reasona
Share Capital comprehe Surplus Retained Oth Total owners’
Prefe Perpetual Inventory ble
capital Oth reserve nsive reserve profit er equity
rred capital shares reserve
er income
stock securities
I. Balance at
the end of the
last year 93.00 686.54 92.24 96.00 128.71 2.01
Add: Changes
of accounting
policy
Error
correction of
the last period
Other
II. Balance at
the beginning
of this year 93.00 686.54 92.24 96.00 128.71 2.01
III. Increase/
Decrease in - - -
report period 25,000,00 444,537,5 369,716,7 14,336,043.17
(Decrease is .07
listed with “-”)
(i) Total 986,630,32 986,630,326.7
comprehensive
income 6.77 7
(ii) Owners’ - - - -
devoted and
decreased 25,000,00 444,726,0 369,716,7 100,009,237.0
capital 0.00 01.26 64.24 2
shares
invested by
shareholders
invested by
holders of
other equity
instruments
reckoned into
owners equity
with share-
based payment
- - - -
- -
(III) Profit
distribution
of surplus
reserves
for owners (or 872,473,49 872,473,493.7
shareholders) 3.70 0
(IV) Carrying
forward
internal
owners’ equity
reserves
converted to
capital (share
capital)
reserves
converted to
capital (share
capital)
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
loss with
surplus reserve
retained
earnings from
the defined
benefit plans
retained
earnings from
other
comprehensive
income
(V)
Reasonable
reserve
in report 3,003,687.87
period 87.87
report period 3,003,687.87
(VI)Others 188,447.12
IV. Balance at
the end of the
report period 93.00 132.40 28.00 96.00 961.78 5.18
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
III. Basic information of the Company
By the approval of STGS (1992) No. 130 issued by Jiangsu Economic Restructuring Committee, Weifu High-Technology Group Co.,
Ltd. (hereinafter referred to “the Company” or “Company”) was established as a company of limited liability with funds raised from
targeted sources, and registered at Wuxi Administration for Industry & Commerce in October 1992. The original share capital of the
Company totaled 115.4355 million yuan, including state-owned share capital amounting to 92.4355 million yuan, public corporate
share capital amounting to 8.00 million yuan and inner employee share capital amounting to 15.00 million yuan.
Between year of 1994 and 1995, the Company was restructured and became a holding subsidiary of Wuxi Weifu Group Co., Ltd
(hereinafter referred to as “Weifu Group”).
By the approval of Jiangsu ERC and Shenzhen Securities Administration Office in August 1995, the Company issued 68 million
special ordinary shares (B-share) with value of 1.00 yuan for each, and the total value of those shares amounted to 68 million yuan.
After the issuance, the Company’s total share capital increased to 183.4355 million yuan.
By the approval of CSRC in June 1998, the Company issued 120 million RMB ordinary shares (A-share) at Shenzhen Stock
Exchange through on-line pricing and issuing. After the issuance, the total share capital of the Company amounted to 303.4355
million yuan.
In the middle of 1999, deliberated and approved by the Board and Shareholders’ General Meeting, the Company implemented the
plan of granting 3 bonus shares for each 10 shares. After that, the total share capital of the Company amounted to 394.46615 million
yuan, of which state-owned shares amounted to 120.16615 million yuan, public corporate shares 10.4 million yuan, foreign-funded
shares (B-share) 88.40 million yuan, RMB ordinary shares (A-share) 156 million yuan and inner employee shares 19.5 million yuan.
In the year 2000, by the approval of the CSRC and based upon the total share capital of 303.4355 million shares after the issuance of
A-share in June 1998, the Company allotted 3 shares for each 10 shares, with a price of 10 yuan for each allotted share. Actually 41.9
million shares was allotted, and the total share capital after the allotment increased to 436.36615 million yuan, of which state-owned
corporate shares amounted to 121.56615 million yuan, public corporate shares 10.4 million yuan, foreign-funded shares (B-share)
In April 2005, the Board of Directors of the Company examined and approved 2004 Profit Pre-distribution Plan, and examined and
approved by 2004 Shareholders’ General Meeting, the Company distributed 3 shares for each 10 shares to the whole shareholders
totaling to 130,909,845 shares in 2005.
According to the Share Merger Reform Scheme of the Company deliberated and approved by related shareholders’ meeting of Share
Merger Reform and SGZF [2006] No.61 Reply on Questions about State-owned Equity Management in Share Merger Reform of
Weifu High-Technology Co., Ltd. issued by the State-owned Assets Supervision & Administration Commission of Jiangsu Province,
share shareholders (totally granted 47,736,000 shares), so as to realize the originally non-circulating shares can be traded on market
when certain conditions were satisfying, the scheme was implemented on April 5, 2006.
On May 27, 2009, Weifu Group satisfied the consideration arrangement by dispatching 0.5 shares for each 10 shares based on the
number of circulating A share as prior to Share Merger Reform, according to the aforesaid Share Merger Reform, with an aggregate
of 14,039,979 shares dispatched. Subsequent to implementation of dispatch of consideration shares, Weifu Group then held
Pursuant to the document (XGZQ (2009) No.46) about Approval for Merger of Wuxi Weifu Group Co., Ltd. by Wuxi Industry
Development Group Co., Ltd. issued by the State-owned Assets Supervision and Administration Commission of Wuxi City
Government, Wuxi Industry Development Group Co., Ltd. (hereinafter referred to as Wuxi Industry Group) acquired Weifu Group.
After the merger, Weifu Group was then revoked, and its assets and credits & debts were transferred to be under the name of Wuxi
Industry Group. Accordingly, Wuxi Industry Group has became the first largest shareholder of the Company since then.
In accordance with the resolutions of shareholders' meeting and provisions of amended constitution, and approved by [2012] No. 109
document of China Securities Regulatory Commission, in February 2012, the Company issued RMB ordinary shares (A-share) of
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
BOSCHGMBH) (hereinafter referred to as Robert Bosch Company), face value was 1.00 yuan per share, added registered capital of
shareholder of the Company, and Robert Bosch Company is the second majority shareholder of the Company.
In March 2013, the profit distribution pre-plan for year of 2012 was deliberated and approved by the Board, and also was approved
by the Annual General Meeting 2012 of the Company in May 2013. On basis of total share capital 680,133,995 shares, distributed 5-
share for every 10 shares held by whole shareholders, 340,066,997 shares in total are distributed. Total share capital of the Company
amounted to 1,020,200,992 yuan up to December 31, 2013.
Deliberated and approved by the company’s first extraordinary general meeting in 2015, the company has repurchased 11,250,422
shares of A shares from August 26, 2015 to September 8, 2015, and finished the cancellation procedures for above repurchase shares
in China Securities Depository and Clearing Corporation Limited Shenzhen Branch on September 16, 2015; after the cancellation of
repurchase shares, the company’s paid-up capital (share capital) becomes 1,008,950,570 yuan after the change.
Deliberated and approved by the 5th meeting of 10th session of the BOD for year of 2021, the 291,000 restricted shares were buy-back
and canceled by the Company initially granted under the 2020 Restricted Share Incentive Plan. The cancellation of the above-
mentioned buy-back shares are completed at the Shenzhen Branch of CSDC on December 20, 2021; the paid-in capital (equity) of
the Company was 1,008,659,570.00 yuan after the change.
After deliberation and approved by the 8th meeting of 10th session of the BOD for year of 2022, the 56,277 restricted shares were
bought back and canceled by the Company initially granted under the 2020 Restricted Share Incentive Plan. The cancellation of the
above-mentioned buy-back shares were completed at the Shenzhen Branch of CSDC on July 8, 2022; the paid-in capital (equity) of
the Company was 1,008,603,293.00 yuan after the change.
After deliberation and approval by the the 14th, 16th and 20th meetings of the 10th session of the BOD of the Company for the year of
under the 2020 Restricted Share Incentive Plan. The cancellation of the above-mentioned buy-back shares were completed at the
Shenzhen Branch of CSDC on February 16, 2023, June 16, 2023 and December 18, 2023; the paid-in capital (equity) of the
Company was 1,002,162,793 yuan after changed.
On 16 April 2025 and 9 May 2025, the company held the 6th meeting of the 11th board of directors and the 2024 general
shareholders’ meeting respectively, reviewed and approved Proposal on Changing the Use of Repurchased Shares and Cancellation,
agreed to change the use of 25,000,000 A-shares in the special securities account for repurchasing, and changed from “used for
implementing employee shareholding plan or equity incentive plan” to “used for cancellation and reduction of registered capital”. As
of 26 June 2025, the company had completed the repurchased share cancellation procedures for the aforesaid 25,000,000 shares at the
Shenzhen branch of China Securities Depository and Clearing Co., Ltd. The company changed its total share capital from
and approved at the meeting, agreeing the company to repurchase some of A-shares used for reducing registered capital, using its
own funds and the special loan for repurchasing, through centralized bidding transactions. On 3 July 2025, the company disclosed the
Announcement on the Completion of Some A-share Repurchasing & Share Changes. The company repurchased a total of 5,200,600
A-shares by the special securities account for repurchasing, through centralized bidding transactions. As of 8 July 2025, the company
had completed the repurchase and cancellation procedures for the above shares at the Shenzhen branch of China Securities
Depository and Clearing Co., Ltd. After this change, as of 31 December 2025, company registered capital (total share capital)
changed to RMB 966,785,693.
Registered place and head office of the Company: No.5 Huashan Road, Xinwu District, Wuxi
Unified social credit code: 91320200250456967N
The Company sets up Shareholders’ Meeting and the Board of Directors (BOD).
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
The Company sets up Strategic Investment Department, Market Development Department, Organization and Human Resources
Department, Compliance and Securities Affairs Department, Administration Department, Finance Department, Disciplinary
Inspection Department, Manufacturing and Safety Department, Procurement Center, Technology Center, MS (Mechanical Systems)
Business Unit, AC (Automotive Components) Business Unit, DS (Automotive Diesel Systems) Business Unit, as well as subsidiaries
including WFLD, WFJN, IRD, Borit, VHIO.
Operation scope of parent company: Technical development and consulting services in the machinery industry; manufacturing of
internal combustion engine fuel system products, fuel system testing instruments and equipment, automotive electronic components,
automotive electrical components, non-standard equipment, non-standard cutting tools, and exhaust gas post-treatment systems; sales
of general machinery, hardware, electrical appliances, chemical products and raw materials (excluding hazardous chemicals),
automotive parts, and motor vehicles (excluding passenger vehicles with less than nine seats); maintenance of internal combustion
engines; leasing of self-owned properties; import and export of various goods and technologies on a self-operated and agency basis
(excluding goods and technologies restricted or prohibited from import and export by the state). Engineering and technical research
and experimental development; research and development of energy recovery systems; manufacturing of automotive parts and
accessories; manufacturing of general equipment (excluding special equipment manufacturing) (projects that require approval in
accordance with laws can only be carried out after being approved by relevant departments). Licensed projects: Manufacturing of
special equipment; installation, renovation and repair of special equipment (projects that require approval in accordance wit h laws
can only be carried out after being approved by relevant departments, and the specific business projects shall be subject to the
approval results); General projects: Investment activities with self-owned funds; software development; software sales; software
outsourcing services; mold manufacturing; mold sales; manufacturing of machine tool functional components and accessories; sales
of machine tool functional components and accessories; manufacturing of drawing, computing and measuring instruments; sales of
drawing, computing and measuring instruments; sales of industrial robots; installation and maintenance of industrial robots;
manufacturing of intelligent basic manufacturing equipment; sales of intelligent basic manufacturing equipment; manufacturing of
industrial automatic control system devices; sales of industrial automatic control system devices; manufacturing of material handling
equipment; sales of material handling equipment; manufacturing of gas and liquid separation and purification equipment; sales of gas
and liquid separation and purification equipment; technical services, technical development, technical consultation, technical
exchanges, technology transfer, technology promotion; research and development of new energy technologies; import and export of
goods; import and export of technologies; manufacturing of ordinary valves and cocks (excluding special equipment manufacturing);
research and development of valves and cocks; sales of valves and cocks (except for projects that require approval in accordance with
laws, independent business activities shall be carried out in accordance with laws with a business license).
The main subsidiaries are respectively engaged in the production and sales of internal combustion engine parts, automotive parts,
mufflers, purifiers, fuel cell parts, etc.
Financial report of the Company was approved by the Board of Directors for reporting dated August 24, 2026.
abbreviated as follows:
Name of subsidiary Short name of subsidiary
Nanjing WFJN Co., Ltd. WFJN
Wuxi Weifu Lida Catalytic Converter Co., Ltd. WFLD
Wuxi Weifu Nanshan Fuel Injection Equipment Co., Ltd. WFMA
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Name of subsidiary Short name of subsidiary
Wuxi Weifu Chang’an Co., Ltd. WFCA
Wuxi Weifu International Trade Co., Ltd. WFTR
Wuxi Weifu Schmitter Powertrain Components Co., Ltd. WFSC
Ningbo WFTT Turbocharging Technology Co., Ltd. WFTT
Wuxi WFAM Precision Machinery Co., Ltd. WFAM
WFLD
Wuxi Weifu LIDA Catalytic Converter (Wuhan) Co., Ltd.
(Wuhan)
WFLD
Weifu Lida (Chongqing) Automotive Components Co., Ltd.
(Chongqing)
WFLD
Nanchang Weifu LIDA Automotive Components Co., Ltd.
(Nanchang)
WFLD
WEIFU LIDA(MALAYSIA)SDN.BHD
(Malaysia)
Wuxi Weifu Autosmart Seating System Co., Ltd. WFAS
Weifu Lianhua Automotive Components (Fuzhou) Co., Ltd. WFLH
Wuxi Weifu Qinglong Power Technology Co., Ltd. WFQL
VHIT Automotive Systems (Wuxi) Co. Ltd VHCN
WEIFU Smart Sensing (Wuxi) Technology Co., Ltd. WFSS
Weifu ET Hydrogen Energy Technology (Wuxi) Co., Ltd. WFET
Weifu Baolong (Nanjing) Technology Co., Ltd WFBL
Weifu Holding ApS SPV
IRD Fuel Cells A/S IRD
IRD FUEL CELLS LLC IRD America
Borit NV Borit
VHIT S.p.A. Società Unipersonale VHIO
IV. Basis of preparation of financial statements
The financial statements are stated in compliance with Accounting Standard for Business Enterprises –Basic Norms issued by the
Ministry of Finance, the specific accounting rules, the Application Instruments of Accounting Standards and interpretation on
Accounting standards and other relevant regulations (together as “Accounting Standards for Business Enterprise”), as well as the
Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No.15 – General Provision of
Financial Report (Revised in 2023) issued by CSRC in respect of the actual transactions and proceedings, on a basis of ongoing
operation.
In line with relevant regulations of Accounting Standards of Business Enterprise, accounting of the Company is on Accrued basis.
Except for certain financial instruments, the financial statement measured on historical cost. Assets have impairment been found;
corresponding depreciation reserves shall Accrued according to relevant rules.
The Company comprehensively assessed the available information, and there are no obvious factors that impact sustainable operation
ability of the Company within 12 months since end of the report period.
V. Major accounting policies and estimation
Specific accounting policies and estimation attention:
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Based on the actual production and operation characteristics, the company and each of its subsidiaries have formulated a number of
specific accounting policies and accounting estimates for various transactions and events in accordance with the provisions of
relevant accounting standards for enterprises. The detailed descriptions are as follows.
The financial statements prepared by the company comply with the requirements of accounting standards for enterprises, truthfully
and completely reflecting the company's financial position, operating results, cash flows and other relevant information of in report
period.
The accounting periods of the Company are divided into annual periods and interim periods. An interim accounting period refers to a
report period that is shorter than a full accounting year. The Company's accounting year adopts the calendar year, that is, from
January 1st to December 31st of each year.
The Company takes 12 months as an operating cycle and uses it as the criterion for classifying the liquidity of assets and liabilities.
The currency used by the Company in preparing these financial statements is the Renminbi. The overseas subsidiaries of the
Company determine their functional currencies based on the currencies in the main economic environment where they operate, such
as the Euro, Danish Krone, US Dollar, etc.
?Applicable □ Not applicable
Item Importance criteria
Important prepayments with an aging Prepayment with aging over 1 year accounting for more than 10% of the total prepaid amount
of over 1 year and with an amount greater than 15 million yuan
Important construction in progress The budget for a single project is greater than 80 million yuan
Important accounts payable with an Accounts payable with aging over 1 year accounting for more than 10% of the total accounts
aging of over 1 year payable and with an amount greater than 80 million yuan
Other important payables with aging Other payables with aging over 1 year accounting for more than 10% of the total other
of over 1 year payables and an amount greater than 15 million yuan
Important contract liabilities with Contract liabilities with aging over 1 year account for more than 10% of the total contract
aging of over 1 year liabilities and the amount greater than 15 million yuan
The net assets of subsidiaries account for more than 5% of the net assets in the consolidated
Important non-wholly-owned
financial statements, or the net profit of subsidiaries accounts for more than 10% of the net
subsidiaries
profit in the consolidated financial statements
The book value of long-term equity investments in an invested entity accounts for more than
Important joint ventures or associates yuan, or the investment gains/losses under the equity method account for more than 10% of the
net profits in the consolidated financial statements of the company and the amount exceeds 100
million yuan
control
Business combination refers to a transaction or event that combines two or more separate enterprises to form a single reporting entity.
Business combinations are classified into business combinations under the same control and business combinations under non-same
control.
(1) Business combinations under the same control
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
A business combination under the same control occurs when the enterprises involved in the combination are ultimately controlled by
the same party or the same group of parties both before and after the combination, and such control is not temporary. In a business
combination under the same control, the party that obtains control over the other enterprise involved in the combination on the
combination date is the combining party, and the other enterprise involved in the combination are the combined parties. The
combination date refers to the date on which the combining party actually obtains control over the combined party.
The assets and liabilities obtained by the company in a business combination are measured at their carrying amounts in the
consolidated financial statements of the ultimate controlling party on the combination date, including the goodwill formed when the
ultimate controlling party acquired the combined party. If there is a difference between the carrying amount of the net assets obtained
and the carrying amount of the combination consideration paid (or the total par value of the issued shares), it shall be adjusted against
the share premium in capital reserve. If the share premium in capital reserve is insufficient to cover the difference, the retained
earnings shall be adjusted.
All direct expenses incurred by the combining party for the business combination shall be recognized as current profits and l osses
when incurred.
(2) Business combinations under not the same control
A business combination under non-same control occurs when the enterprises involved in the combination are not ultimately
controlled by the same party or the same group of parties both before and after the combination. In a business combination under
non-same control, the party that obtains control over the other enterprises involved in the combination on the acquisition date is the
acquirer, and the other enterprise involved in the combination are the acquirees. The acquisition date refers to the date on which the
acquirer actually obtains control over the acquiree.
For a business combination under non-same control, the combination cost includes the fair values of the assets transferred, the
liabilities incurred or assumed, and the equity securities issued by the acquirer on the acquisition date in order to obtain control over
the acquiree. The intermediary expenses such as audit, legal services, and valuation consultation, as well as other administrative
expenses incurred for the business combination shall be recognized as current profits and losses when incurred. The transaction costs
related to the equity securities or debt securities issued by the acquirer as consideration for the combination shall be included in the
initial recognition amount of the equity securities or debt securities. The contingent consideration involved shall be included in the
combination cost at its fair value on the acquisition date. If new or further evidence of the circumstances existing on the acquisition
date emerges within 12 months after the acquisition date, which requires adjustment of the contingent consideration, the goodwill of
the combination shall be adjusted accordingly. The combination cost incurred by the acquirer and the identifiable net assets obtained
in the combination shall be measured at their fair values on the acquisition date. If the combination cost is greater than the acquirer's
share of the fair value of the identifiable net assets of the acquiree on the acquisition date, the difference shall be recognized as
goodwill. If the combination cost is less than the acquirer's share of the fair value of the identifiable net assets of the acquiree, the fair
values of the identifiable assets, liabilities, and contingent liabilities of the acquiree obtained, as well as the measurement of the
combination cost, shall first be rechecked. If, after the recheck, the combination cost is still less than the acquirer's share of the fair
value of the identifiable net assets of the acquiree, the difference shall be recognized as current profits and losses.
If the acquirer obtains the deductible temporary differences of the acquiree but does not recognize them as deferred income t ax assets
on the acquisition date because the recognition conditions for deferred income tax assets are not met, and within 12 months after the
acquisition date, new or further information indicates that the relevant circumstances on the acquisition date already existe d and it is
expected that the economic benefits brought by the deductible temporary differences of the acquiree on the acquisition date can be
realized, the relevant deferred income tax assets shall be recognized, and at the same time, the goodwill shall be reduced. If the
goodwill is insufficient to cover the reduction, the remaining difference shall be recognized as current profits and losses. Except for
the above circumstances, the recognition of deferred income tax assets related to the business combination shall be included in
current profits and losses.
For a business combination under non-same control achieved in multiple transactions in stages, if it is part of a “package of
transactions”, the accounting treatment shall be carried out with reference to the descriptions in the preceding paragraphs of this
section and Note III.14 Long-Term Equity Investments these financial statements. If it is not part of a “package of transactions”,
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
relevant accounting treatments shall be carried out separately for the individual financial statements and the consolidated financial
statements:
In the individual financial statements, the initial investment cost of the investment shall be the sum of the carrying amount of the
equity investment in the acquiree held before the acquisition date and the additional investment cost on the acquisition date. If the
equity of the acquiree held before the acquisition date involves other comprehensive income, when disposing of the investment, the
relevant other comprehensive income shall be accounted for on the same basis as that used by the acquiree when directly disposing of
the relevant assets or liabilities (i.e., except for the corresponding share of the changes in the net liabilities or net assets of the defined
benefit plan remeasured by the acquiree accounted for under the equity method, the rest shall be transferred to the current investment
income).
In the consolidated financial statements, for the equity of the acquiree held before the acquisition date, it shall be re-measured at its
fair value on the acquisition date, and the difference between the fair value and its carrying amount shall be included in the current
investment income. If the equity of the acquiree held before the acquisition date involves other comprehensive income, the relevant
other comprehensive income shall be accounted for on the same basis as that used by the acquiree when directly disposing of the
relevant assets or liabilities (i.e., except for the corresponding share of the changes in the net liabilities or net assets of the defined
benefit plan remeasured by the acquiree accounted for under the equity method, the rest shall be transferred to the investment income
of the current period to which the acquisition date belongs).
(1) Criteria for judging control
The consolidation scope of the consolidated financial statements is determined on the basis of control. Control means that the
company has the power over the investee, enjoys variable returns by participating in the relevant activities of the investee, and has
the ability to use its power over the investee to influence the amount of those returns. Generally, it includes the invested entities in
which the parent company holds more than half of the voting rights, and the invested entities in which the company holds less than
half of the voting rights but, through agreements with other investors of the invested entity, holds more than half of the voting rights;
according to the articles of association or agreements, it has the right to determine the financial and operational decisions of the
invested entity; it has the right to appoint and remove the majority of the members of the board of directors of the invested entity; and
it holds the majority of the voting rights on the board of directors of the invested entity.
(2) Methods for preparing consolidated financial statements
The company begins to include a subsidiary in the consolidation scope from the date when it obtains the actual control over the
subsidiary's net assets and production and operation decisions, and stops including it in the consolidation scope from the date when it
loses the actual control. For a disposed subsidiary, the operating results and cash flows before the disposal date have been
appropriately included in the consolidated income statement and the consolidated cash flow statement; for a subsidiary disposed of in
the current period, the beginning figures of the consolidated balance sheet will not be adjusted. For a subsidiary added through a
business combination under non-same control, its operating results and cash flows after the acquisition date have been appropriately
included in the consolidated income statement and the consolidated cash flow statement, and the beginning figures and comparative
figures of the consolidated financial statements will not be adjusted. For a subsidiary added through a business combination under the
same control, its operating results and cash flows from the beginning of the current consolidation period to the combination date have
been appropriately included in the consolidated income statement and the consolidated cash flow statement, and the comparative
figures of the consolidated financial statements will be adjusted at the same time.
When preparing the consolidated financial statements, if the accounting policies or accounting periods adopted by a subsidiary are
inconsistent with those of the company, necessary adjustments will be made to the subsidiary's financial statements in accordance
with the company's accounting policies and accounting periods. For a subsidiary obtained through a business combination under non-
same control, its financial statements will be adjusted based on the fair value of the identifiable net assets at the acquisi tion date.
All significant intercompany balances, transactions, and unrealized profits within the company will be eliminated when preparing the
consolidated financial statements.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
The portion of the subsidiary's shareholders' equity and current net profit and loss that does not belong to the company will be
separately presented as the minority shareholders' equity and the minority shareholders' profit and loss under the shareholders' equity
and net profit items in the consolidated financial statements. The share of the subsidiary's current net profit and loss attributable to
the minority shareholders will be presented as the item "Minority Shareholders' Profit and Loss" under the net profit item in the
consolidated income statement. If the losses of the subsidiary borne by the minority shareholders exceed the share of the minority
shareholders in the subsidiary's beginning shareholders' equity, the minority shareholders' equity will still be reduced. When the
control over a subsidiary is ceased due to disposal of a portion of an interest in a subsidiary, the fair value of the remaining equity is
re-measured on the date when the control ceased. The difference between the sum of the consideration received from disposal of
equity and the fair value of the remaining equity, less the net assets attributable to the company since the acquisition date, is
recognized as the investment income from the loss of control. Other comprehensive income relating to original equity investment in
subsidiaries shall be treated on the same basis as if the relevant assets or liabilities were disposed of by the purchaser directly when
the control is lost, namely be transferred to current investment income other than the relevant part of the movement arising from re-
measuring net liabilities or net assets under defined benefit scheme by the original subsidiary. Subsequent measurement of the
remaining equitys shall be in accordance with relevant accounting standards such as Accounting Standards for business Enterprises 2
– Long-term Equity Investments or Accounting Standards for business Enterprises 22 – Financial Instruments Recognition and
Measurement. Refer to Note V.18 Long-term Equity investment or Note V.11 Financial Instrument
The company shall determine whether loss of control arising from disposal in a series of transactions should be regarded as package
deal. When the economic effects and terms and conditions of the disposal transactions meet one or more of the following situations,
the transactions shall normally be accounted for as package deal: ①The transactions are entered into after considering the mutual
consequences of each individual transaction; ② The transactions need to be considered as a whole in order to achieve a deal in
commercial sense;③The occurrence of an individual transaction depends on the occurrence of one or more individual transactions in
the series; ④ The result of an individual transaction is not economical, but it would be economical after taking into account of other
transactions in the series. When the transactions are not regarded as package deal, the individual transactions shall be accounted as
“disposal of a portion of an interest in a subsidiary which does not lead to loss of control” and “disposal of a portion of an interest in
a subsidiary which led to loss of control”. When the transactions are regarded as package deal, the transactions shall be accounted as
a single disposal transaction; however, the difference between the consideration received from disposal and the share of net assets
disposed in each individual transactions before loss of control shall be recognized as other comprehensive income, and reclassified as
profit or loss arising from the loss of control when control is lost.
A joint arrangement refers to an arrangement jointly controlled by two or more participating parties. Based on the rights enjoyed and
obligations assumed by the company in the joint arrangement, the joint arrangement is classified into joint operations and joint
ventures. A joint operation is a joint arrangement in which the company enjoys the relevant assets of the arrangement and assumes
the relevant liabilities of the arrangement. A joint venture is a joint arrangement in which the company has rights only to t he net
assets of the arrangement.
The company accounts for its investment in a joint venture using the equity method and deals with it in accordance with the
accounting policies described in Note V.18 (2) ② "Long-Term Equity Investments Accounted for by the Equity Method" of these
notes.
As a party to a joint operation, the company recognizes the assets held solely by the company, the liabilities borne solely b y the
company, and also recognizes, according to its share, the jointly held assets and jointly borne liabilities; recognizes the revenue
generated from the sale of the company's share of the output of the joint operation; recognizes, according to its share, the revenue
generated by the joint operation from the sale of the output; recognizes the expenses incurred solely by the company, and also
recognizes, according to its share, the expenses incurred by the joint operation.
When the company, as a party to a joint operation, contributes or sells assets (such assets do not constitute a business, the same
below) to the joint operation, or purchases assets from the joint operation, before such assets are sold to a third party, the company
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
only recognizes the portion of the profit or loss arising from the transaction that is attributable to the other participating parties of the
joint operation. If the assets incur asset impairment losses in accordance with the provisions of Accounting Standards for Enterprises
No. 8 - Asset Impairment and other relevant regulations, in the case of the company contributing or selling assets to the joint
operation, the company fully recognizes the loss; in the case of the company purchasing assets from the joint operation, the company
recognizes the loss according to its assumed share.
Cash refers to stock cash, savings available for paid at any time; cash and cash equivalent refers to the cash held by the Company
with short terms (expired within 3 months since purchased), and liquid and easy to transfer as known amount and investment with
minor variation in risks.
(1) Translation method for foreign currency transactions
When a foreign currency transaction occurs in the company, it is initially recognized and translated into the amount in the functional
currency at the spot exchange rate on the transaction date. However, for foreign currency exchange transactions or transactions
involving foreign currency exchange conducted by the company, they are translated into the amount in the functional currency at the
actual exchange rate applied.
(2) Translation methods for foreign currency monetary items and foreign currency non-monetary items
On the balance sheet date, foreign currency monetary items are translated at the spot exchange rate on the balance sheet date. The
resulting exchange differences will be booked into current profits and losses, except for the followings: ① the exchange differences
arising from foreign currency special loans related to the acquisition and construction of assets qualified for capitalizati on, which are
accounted for in accordance with the principles of capitalizing borrowing costs; ② the exchange differences of hedging instruments
for effective hedging of net investments in overseas operations (such differences are booked into other comprehensive income and
will only be recognized as current profits and losses when the net investment is disposed of); ③ for available-for-sale foreign
currency monetary items, the exchange differences arising from changes in other carrying amounts other than the amortized cos t are
included in other comprehensive income .
When preparing consolidated financial statements involving overseas operations, if there are foreign currency monetary items that
substantially constitute a net investment in overseas operations, the exchange differences arising from exchange rate fluctuations are
included in other comprehensive income; when the overseas operation is disposed of, they are transferred to the profit or loss of the
current period of disposal.
For foreign currency non-monetary items measured at historical cost, they are still measured at the amount in the functional currency
translated at the spot exchange rate on the date of the transaction. For foreign currency non-monetary items measured at fair value,
they are translated at the spot exchange rate on the date when the fair value is determined. The difference between the trans lated
amount in the functional currency and the original amount in the functional currency is treated as changes in fair value (including
exchange rate changes) and is included in current profits and losses or recognized as other comprehensive income.
(3) Translation method for foreign currency financial statements
When preparing consolidated financial statements involving overseas operations, if there are foreign currency monetary items that
substantially constitute a net investment in overseas operations, the exchange differences arising from exchange rate fluctuations are
recognized as other comprehensive income as "translation differences of foreign currency financial statements"; when the overseas
operation is disposed of, they are booked into the profit or loss of the current period of disposal.
The foreign currency financial statements of overseas operations are translated into RMB financial statements according to the
following methods: The assets and liabilities items in the balance sheet are translated at the spot exchange rate on the balance sheet
date; for items in the shareholders' equity category, except for the "undistributed profits" item, other items are translated at the spot
exchange rate at the time of occurrence. The revenue and expense items in the income statement are translated at the spot exchange
rate on the date of the transaction. The undistributed profits at the end of the previous year are the undistributed profits at the end of
the previous year after translation in the previous year; the undistributed profits at the end of the period are calculated and presented
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
according to each item of the translated profit distribution; the difference between the total of the translated asset items and the total
of the liability items and shareholders' equity items is recognized as other comprehensive income as the translation differences of
foreign currency financial statements. When disposing of an overseas operation and losing control, all or in proportion to the disposal
of the overseas operation, the translation differences of foreign currency financial statements related to the overseas operation and
shown under the shareholders' equity items in the balance sheet are transferred to the profit or loss of the current period of disposal.
The foreign currency cash flows and the cash flows of overseas subsidiaries are calculated at the spot exchange rate on the date when
the cash flows occur. The impact of exchange rate changes on cash is presented separately as a reconciliation item in the cash flow
statement.
Balance at the end of the previous year and the actual amount of the previous year are presented according to the amounts aft er
translation of the previous year's financial statements.
When disposing of all the owners' equity of the company's overseas operation or losing control of the overseas operation due to the
disposal of part of the equity investment or other reasons, all the translation differences of foreign currency financial statements
related to the overseas operation and attributable to the owners' equity of the parent company shown under the shareholders' equity
items in the balance sheet are transferred to the profit or loss of the current period of disposal.
When the proportion of equitys in an overseas operation held is reduced due to the disposal of part of the equity investment or other
reasons but control over the overseas operation is not lost, the translation differences of foreign currency financial statements related
to the disposed part of the overseas operation are attributable to the minority shareholders' equity and are not transferred to the
current profits and losses. When disposing of part of the equity of an overseas operation that is an associated enterprise or a joint
venture, the translation differences of foreign currency financial statements related to the overseas operation are transferred to the
profit or loss of the current period of disposal in proportion to the disposal of the overseas operation.
A financial asset or financial liability is recognized when the Company becomes a party to a financial instrument contract.
(1) Classification, recognition and measurement of financial assets
Based on the business model for managing the financial assets and the contractual cash flow characteristics of the financial assets, the
Company classifies financial assets into financial assets measured at amortized cost, financial assets measured at fair value through
other comprehensive income and financial assets measured at fair value through profit or loss.
Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair value through profit or loss,
the relevant transaction costs are directly recognized in current gains/losses; for other categories of financial assets, the relevant
transaction costs are included in the initial recognition amount. For accounts receivable or notes receivable arising from the sale of
products or the provision of services that do not contain or do not consider a significant financing component, the Company uses the
amount of consideration it expects to be entitled to receive as the initial recognition amount.
① Financial assets measured at amortized cost
The Company's business model for managing financial assets measured at amortized cost is to collect contractual cash flows, and the
contractual cash flow characteristics of such financial assets are consistent with basic lending arrangements, that is, the cash flows
generated on specific dates are only payments of principal and interest based on the outstanding principal amount. For such financial
assets, the Company uses the effective interest rate method and measures them subsequently at amortized cost. The gains or losses
arising from amortization or impairment are recognized in current gains/losses.
② Financial assets measured at fair value through other comprehensive income
The Company's business model for managing such financial assets is both to collect contractual cash flows and to sell, and the
contractual cash flow characteristics of such financial assets are consistent with basic lending arrangements. The Company measures
such financial assets at fair value and recognizes the changes in fair value in other comprehensive income, but impairment losses or
gains, exchange differences and interest income calculated using the effective interest rate method are recognized in current
gains/losses.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
In addition, the Company designates some non-tradable equity instrument investments as financial assets measured at fair value
through other comprehensive income. The Company recognizes the relevant dividend income from such financial assets in current
gains/losses, and recognizes the changes in fair value in other comprehensive income. When such financial assets are derecognized,
the cumulative gains or losses previously recognized in other comprehensive income will be transferred from other comprehensive
income to retained earnings and will not be recognized in current gains/losses.
③ Financial assets measured at fair value through profit or loss
The Company classifies financial assets other than those measured at amortized cost and those measured at fair value through other
comprehensive income as financial assets measured at fair value through profit or loss. In addition, upon initial recognition, in order
to eliminate or significantly reduce accounting mismatches, the Company designates some financial assets as financial assets
measured at fair value through profit or loss. For such financial assets, the Company measures them subsequently at fair value, and
the changes in fair value are recognized in current gains/losses.
(2) Classification, recognition and measurement of financial liabilities
Financial liabilities are classified upon initial recognition as financial liabilities measured at fair value through profit or loss and other
financial liabilities. For financial liabilities measured at fair value through profit or loss, the relevant transaction costs are directly
recognized in current gains/losses, and the relevant transaction costs of other financial liabilities are included in their initial
recognition amount.
① Financial liabilities measured at fair value through profit or loss
Financial liabilities measured at fair value through profit or loss include trading financial liabilities (including derivative instruments
that are financial liabilities) and financial liabilities designated upon initial recognition as measured at fair value through profit or loss.
Trading financial liabilities (including derivative instruments that are financial liabilities) are measured subsequently at fair value.
Except for those related to hedge accounting, the changes in fair value are recognized in current gains/losses.
For financial liabilities designated as measured at fair value through profit or loss, the changes in fair value caused by the changes in
the Company's own credit risk are recognized in other comprehensive income, and when the liability is derecognized, the cumulative
changes in fair value caused by the changes in its own credit risk that have been recognized in other comprehensive income are
transferred to retained earnings. The remaining changes in fair value are recognized in current gains/losses. If accounting for the
impact of the changes in the own credit risk of such financial liabilities in the above manner would result in or exacerbate accounting
mismatches in profit or loss, the Company will recognize all the gains or losses (including the impact amount of the changes in the
enterprise's own credit risk) of such financial liabilities in current gains/losses.
② Other financial liabilities
Other financial liabilities, except for financial liabilities arising from financial asset transfers that do not meet the derecognition
criteria or from continued involvement in the transferred financial assets and financial guarantee contracts, are classified as financial
liabilities measured at amortized cost, and are measured subsequently at amortized cost. The gains or losses arising from
derecognition or amortization are recognized in current gains/losses.
(3) Recognition criteria and measurement methods for financial asset transfers
A financial asset is derecognized if one of the following conditions is met: ① The contractual right to receive the cash flows of the
financial asset expires; ② The financial asset has been transferred and substantially all the risks and rewards of ownership of the
financial asset have been transferred to the transferee; ③ The financial asset has been transferred, and although the enterprise has
neither transferred nor retained substantially all the risks and rewards of ownership of the financial asset, it has relinquished control
of the financial asset.
If the enterprise has neither transferred nor retained substantially all the risks and rewards of ownership of the financial asset and has
not relinquished control of the financial asset, it shall recognize the relevant financial assets to the extent of its continuing
involvement in the transferred financial asset and recognize the relevant liabilities accordingly. The extent of continuing involvement
in the transferred financial asset refers to the level of risk to which the enterprise is exposed due to changes in the value of the
financial asset.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
When the transfer of a financial asset in its entirety meets the derecognition criteria, the difference between the carrying amount of
the transferred financial asset, the consideration received as a result of the transfer, and the cumulative amount of changes in fair
value originally recognized in other comprehensive income is recognized in current gains/losses.
When a partial transfer of a financial asset meets the derecognition criteria, the carrying amount of the transferred financi al asset is
allocated between the derecognized and non-derecognized parts based on their relative fair values, and the difference between the
consideration received as a result of the transfer, the cumulative amount of changes in fair value originally recognized in other
comprehensive income that should be allocated to the derecognized part, and the allocated carrying amount is recognized in current
gains/losses.
When the Company sells a financial asset with recourse or endorses and transfers a held financial asset, it needs to determine whether
substantially all the risks and rewards of ownership of the financial asset have been transferred. If substantially all the risks and
rewards of ownership of the financial asset have been transferred to the transferee, the financial asset is derecognized; if substantially
all the risks and rewards of ownership of the financial asset have been retained, the financial asset is not derecognized; if neither
substantially all the risks and rewards of ownership of the financial asset have been transferred nor retained, the enterprise will
continue to determine whether it retains control over the asset and conduct accounting treatment in accordance with the principles
described in the preceding paragraphs.
(4) Derecognition of financial liabilities
When the current obligation of a financial liability (or a part thereof) has been discharged, the Company derecognizes the financial
liability (or the part of the financial liability). When the Company (the borrower) enters into an agreement with the lender to replace
the original financial liability by assuming a new financial liability, and the contractual terms of the new financial liability are
substantially different from those of the original financial liability, the original financial liability is derecognized and a new financial
liability is recognized at the same time. When the Company makes a substantial modification to the contractual terms of the original
financial liability (or a part thereof), the original financial liability is derecognized and a new financial liability is re cognized in
accordance with the modified terms at the same time.
When a financial liability (or a part thereof) is derecognized, the Company recognizes the difference between its carrying amount and
the consideration paid (including the transferred non-cash assets or the assumed liabilities) in current gains/losses.
(5) Balance-out between the financial assets and liabilities
As the company has the legal right to balance out the financial liabilities by the net or liquidation of the financial assets, the balance-
out sum between the financial assets and liabilities is listed in the balance sheet. In addition, the financial assets and liabilities are
listed in the balance sheet without being balanced out.
(6) Fair value determination method for financial assets and financial liabilities
Fair value refers to the price that market participants can receive from selling an asset or pay to transfer a liability in an orderl y
transaction that occurs on the measurement date. If there is an active market for financial instruments, the company determines their
fair value using quotes from the active market. The quotation in an active market refers to the price that is easily obtained regularly
from exchanges, brokers, industry associations, pricing service agencies, etc., and represents the actual market transaction price that
occurs in fair trade. If there is no active market for financial instruments, the company uses valuation techniques to determine their
fair value. Valuation techniques include referencing prices used in recent market transactions by parties familiar with the situation
and willing to trade, referencing the current fair value of other financial instruments that are substantially the same, discounted cash
flow method, and option pricing models.At the time of valuation, the company adopts valuation techniques that are applicable in the
current situation and supported by sufficient available data and other information, selects input values that are consistent with the
asset or liability characteristics considered by market participants in transactions related to the asset or liability, and prioritizes the use
of relevant observable input values as much as possible. In situations where observable input values cannot be obtained or are not
feasible to obtain, use non input values.
Impairment of financial assets
The financial assets that the company needs to recognize impairment losses are financial assets measured at amortized cost and debt
instrument investments measured at fair value with changes in fair value recognized in other comprehensive income, mainly
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
including notes receivable, accounts receivable, contract assets, other receivables, creditors' investments, other creditors' investments,
long-term receivables, etc. In addition, for some financial guarantee contracts, impairment provision and credit impairment losses are
also recognized in accordance with the accounting policies described in this section.
(1) Recognition method for impairment provision
Based on expected credit loss, the company has made impairment provision and recognized credit impairment losses for the above-
mentioned items with the applicable expected credit loss measurement methods (general or simplified methods).
Credit loss refers to the difference between all contract cash flows receivable discounted at the original effective interest rate and all
expected cash flows received by the company, that is to say, the present value of all cash shortfall. Among them, for financial assets
that have been purchased or generated and have experienced credit impairment, the Company will discount them at the actual interest
rate adjusted for credit of the financial asset.
The general method for measuring expected credit loss refers to the assessment of whether the credit risk of financial assets has
significantly increased since initial recognition by the Company on each balance sheet date. If the credit risk has significantly
increased since initial recognition, the Company measures the impairment provision based on an amount equivalent to the expected
credit loss over the entire period of existence; If the credit risk does not significantly increase after initial recognition, the company
measures the impairment provision based on an amount equivalent to the expected credit loss within the next 12 months. When
evaluating expected credit loss, the company considers all reasonable and evidence-based information, including forward-looking
information.
For financial instruments with low credit risk on the balance sheet date, the Company assumes that their credit risk has not
significantly increased since initial recognition, and chooses to measure the impairment provision based on the expected credit loss in
the next 12 months/does not choose a simplified treatment method, and measures the impairment provision based on whether their
credit risk has significantly increased since initial recognition, using the expected credit loss amount in the next 12 months or the
entire duration as the basis.
(2) Criteria for determining whether credit risk has significantly increased since initial recognition
If the default probability of a financial asset during the expected duration determined on the balance sheet date is significantly higher
than the default probability during the expected duration determined at initial recognition, it indicates a significant increase in credit
risk of the financial asset. Except in special circumstances, the company uses the changes in default risk that will occur within the
next 12 months as a reasonable estimate of the changes in default risk that will occur throughout the entire existence period to
determine whether credit risk has significantly increased since initial recognition.
Usually, if the overdue period exceeds 30 days, the company considers that the credit risk of the financial instrument has significantly
increased, unless there is conclusive evidence to prove that the credit risk of the financial instrument has not significantly increased
since initial recognition.
When evaluating whether credit risk has significantly increased, the company will consider the following factors:
Whether there has been a significant change in the actual or expected operating results of the debtor;
Whether there have been significant adverse changes in the regulatory, economic, or technological environment in which the debtor
is located;
Whether there have been significant changes in the value of the collateral used as collateral for debt or the quality of the guarantee or
credit enhancement provided by a third party, which is expected to reduce the debtor's economic motivation to repay within the
contractually stipulated period or affect the probability of default;
Whether there have been significant changes in the debtor's expected performance and repayment behavior;
Has there been any change in the company's credit management methods for financial instruments.
On the balance sheet date, if the Company determines that a financial instrument has only low credit risk, the Company assumes that
the credit risk of the financial instrument has not significantly increased since initial recognition. If the default risk of a financial
instrument is low, the borrower has a strong ability to fulfill its contractual cash flow obligations in the short term, and even if there
are adverse changes in the economic situation and operating environment over a longer period of time, it may not necessarily reduce
the borrower's ability to fulfill its contractual cash obligations, then the financial instrument is considered to have low credit risk.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
(3) Portfolio-based approach for evaluating expected credit risk
The company evaluates the credit risk of financial assets with significantly different credit risks, such as accounts receivable from
related parties, accounts receivable that are in dispute with the other party or involve litigation or arbitration, there are clear
indications that the debtor may not be able to fulfill their repayment obligations, such as accounts receivable.
In addition to financial assets assessed for credit risk individually, the company divides financial assets into different groups based on
common risk characteristics. The common credit risk characteristics adopted by the company include financial instrument type, credit
risk rating, aging portfolio, overdue aging portfolio, contract settlement period, debtor's industry, etc. Credit risk is evaluated based
on portfolio.
(4) Accounting treatment methods for impairment of financial assets
At the end of the period, the Company calculates the estimated credit losses of various financial assets. If the estimated cr edit loss is
greater than the carrying amount of its current impairment provision, the difference is recognized as an impairment loss; If it is less
than the carrying amount of the current impairment provision, the difference is recognized as an impairment gain.
Methods for determining credit losses of financial assets
Except for separately evaluating credit risk accounts receivable, the company divides accounts receivable into different port folios
based on common risk characteristics and evaluates credit risk on the basis of the portfolio. The specific basis for determining
different portfolios and methods for measuring expected credit loss are as follows:
Item Basis for determining the portfolio Specific methods for measuring expected credit loss
For accounts receivable within six months, the company
does not provide for expected credit loss; In addition, the
company believes that the credit risk of the bank acceptance
Accounts receivable financing -
Bank acceptance bill bills it holds is relatively low and will not cause significant
bank acceptance bill portfolio
losses due to bank defaults. Therefore, the expected credit
loss shall not be measured for the corresponding receivables
financing bank acceptance portfolio.
For accounts receivable within six months, the company
does not provide for expected credit loss; In addition, the
credit risk of the commercial acceptance bills held by the
Accounts receivable - company is relatively low, as these bills are mainly issued
commercial acceptance bill Commercial acceptance bill by reputable automobile manufacturers. Based on historical
portfolio experience, there have been no significant defaults.
Therefore, the company doesn’t measure expected credit
loss for the portfolio of accounts receivable and commercial
acceptance bills
Accounts receivable other than
accounts receivable from internal
Accounts Receivable -
related parties and those for which Measure expected credit loss based on aging
Customer Portfolio
credit impairment losses have been
individually provisioned
Other receivables except for Based on historical credit loss experience, combined with
accounts receivable from internal current conditions and predictions of future economic
Other receivables - accounts
related parties and accounts for conditions, the expected credit loss is calculated by default
receivable other portfolio
which credit impairment losses risk exposure and the expected credit loss rate for the next
have been individually provisioned 12 months or the entire duration.
For accounts receivable that are measured for expected credit loss based on their aging, their aging is calculated continuously from
the initial recognition date of the debt. The corresponding provision ratio for expected credit loss at different aging stages is as
follows:
Aging Provision ratio (%)
Within 6 months --
Over three years 100.00
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Notes receivable 1: bank acceptance
Notes receivable 2: trade acceptance
The Company calculates expected credit loss by referring to historical credit loss experience, taking into account current conditions
and forecasts of the future economic situation.
Accounts receivable 1: receivable from clients
Accounts receivable 2: receivable from internal related party
The Company calculates expected credit loss by referring to historical credit loss experience, taking into account current conditions
and forecasts of the future economic situation.
The note receivable and accounts receivable which are measured at fair value and whose changes are included in other
comprehensive income are classified as receivables financing within one year(inclusive) from the date of acquisition. Refer to more
relevant accounting policies in Note V.11 Financial Instrument.
Determination method of expected credit loss and accounting treatment
Other accounts receivable 1: receivable from internal related party
Other accounts receivable 2: receivable from others
The Company calculates expected credit loss by referring to historical credit loss experience, taking into account current conditions
and forecasts of the future economic situation.
(1) Classification of inventory
Inventory mainly includes raw materials, product in process, finished products, contract performance costs, etc.
(2) The pricing method for outbound inventory
Valuation shall be based on the weighted average method for outbound inventory;
(3) The perpetual inventory system is applied.
(4) Amortization method for low value consumables and packaging materials
Low value consumables are amortized with one-time amortization method upon receipt; Packaging materials are amortized with one-
time amortization method upon receipt.
(5) Recognition criteria and provision method for impairment provision for inventory
The net realizable value of inventory refers to the estimated selling price of inventory in daily activities, minus the estimated costs to
be incurred until completion, estimated sales expenses, and related taxes. When determining the net realizable value of inventory, it is
based on conclusive evidence obtained, while considering the purpose of holding inventory and the impact of events after the balance
sheet date.
On the balance sheet date, inventory is measured at the lower of cost or net realizable value. When its net realizable value is lower
than its cost, the provision for inventory impairment is withdrawn. The provision for inventory impairment is usually withdrawn
based on the difference between the cost of a single inventory item and its net realizable value. For inventory with a large quantity
and low unit price, the provision for inventory impairment shall be withdrawn according to the inventory category; For inventory
related to product lines produced and sold in the same region, with the same or similar end use or purpose, and difficult to measure
separately from other items, the provision for inventory impairment can be made through consolidation.
After the provision for inventory impairment has been made, if the influencing factors that previously reduced the value of inventory
have disappeared, resulting in the net realizable value of inventory higher than its book value, it shall be reversed within the original
provision for inventory impairment, and the reversed amount shall be included in the current gains/losses.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
（1）Non-current assets held for sale and disposal group
If the Company mainly recovers the book value of a non-current asset through sale (including exchange of non-monetary assets with
commercial substance, the same below) rather than continuing to use it or disposing of it, it will be classified as held for sale. The
specific criteria are to meet the following conditions simultaneously: a non-current asset or disposal group can be immediately sold
under the current circumstances, in accordance with the customary practice of selling such assets or disposal groups in similar
transactions; The company has made a resolution regarding the sale plan and obtained a confirmed purchase commitment; The sale is
expected to be completed within one year. Among them, the disposal group refers to a group of assets that are disposed of as a whole
through sale or other means in a transaction, as well as the liabilities directly related to these assets transferred in the transaction. If
the asset group or the portfolio of asset groups to which the disposal group belongs has been allocated the goodwill acquired in the
business combination in accordance with the Accounting Standards for Enterprises No. 8- Impairment of Assets, the disposal group
shall include the goodwill allocated to the disposal group.
When the Company initially measures or re-measures non-current assets held for sale and disposal groups on the balance sheet date,
if their carrying value is higher than the net amount of fair value minus selling expenses, the carrying value shall be reduced to the
net amount of fair value minus selling expenses, and the reduced amount shall be recognized as asset impairment loss and included in
the current gains/losses. At the same time, the impairment provision for held for sale assets shall be made. For the disposal group, the
recognized impairment loss of assets is first offset against the carrying amount of goodwill in the disposal group, and then
proportionally offset against the carrying amount of various non-current assets within the disposal group that are subject to the
measurement provisions of the Accounting Standards for Enterprises No. 42- Non-current Assets Held for Sale, Disposal Groups, and
Discontinued Operations (hereinafter referred to as the “Standards of Assets Held for Sale”).If the net amount after deducting the
selling expenses from the fair value of the disposal group held for sale on the subsequent balance sheet date increases, the previously
written down amount should be restored and reversed within the asset impairment loss amount recognized for non-current assets
measured under the Standards of Assets Held for Sale after being classified as holding for sale. The reversed amount should be
included in the current gains/losses, and the book value of each non-current asset measured under the Standards of Assets Held for
Sale in the disposal group, except for goodwill, should be increased proportionally based on the proportion of its book value; The
book value of goodwill that has been offset, as well as the impairment losses recognized for non-current assets under the holding for
sale standard before being classified as held for sale, shall not be reversed.The non-current assets held for sale or disposed of in
disposal groups are not subject to depreciation or amortization, and interest and other expenses on liabilities held for sale in disposal
groups continue to be recognized.
In case non-current assets or disposal groups no longer meet the criteria for being classified as held for sale, the Company will no
longer continue to classify them as assets held for sale or remove non-current assets from the disposal group, and measure them in
terms of the lower of the following two: (1) the book value of such assets before being classified as assets held for sale, adjusted for
depreciation, amortization, impairment, etc. that would have been recognized if not classified assets held for sale; (2) Recoverable
amount.
（2）Recognition criteria and reporting methods for termination of operations
Termination of operation refers to a component that meets one of the following conditions, can be distinguished separately, and has
been disposed of or classified as held for sale: 1) the component represents an independent main business or an independent main
operating region; 2) This component is part of a related plan to dispose of an independent major business or a separate major
operating area; 3) This component is a subsidiary acquired specifically for resale.
The company reports the relevant gains/losses arising from termination of operation in the income statement and discloses the impact
of termination in the notes.
The long-term equity investment referred to in this section refers to the long-term equity investment in which the company has
control, joint control, or significant influence over the invested entity. The long-term equity investments that the Company does not
have control, joint control, or significant influence over the investee are accounted for as financial assets measured at fair value with
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
changes recognized in current gains/losses. If they are non trading, the Company may designate them as financial assets measured at
fair value with changes recognized in other comprehensive income at initial recognition. The accounting policy is detailed in Note
V.11 Financial Instruments.
Joint control refers to the shared control of a certain arrangement by the company in accordance with relevant agreements, and the
related activities of the arrangement must be unanimously agreed upon by the parties sharing control rights before making decisions.
Significant impact refers to the power of the company to participate in decision-making on the financial and operational policies of
the invested entity, but the company fails to control or jointly control the formulation of these policies with other parties.
（1）Recognition of investment cost
For a long-term equity investment acquired through a business combination involving enterprises under common control, the initial
investment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of the owner’s equity
under the consolidated financial statements of the ultimate controlling party on the date of combination. The difference between the
initial cost of the long-term equity investment and the cash paid, non-cash assets transferred as well as the book value of the debts
borne by the absorbing party shall offset against the capital reserve. If the capital reserve is insufficient to offset, the retained earnings
shall be adjusted. If the consideration of the merger is satisfied by issue of equity securities, the initial investment cost of the long-
term equity investment shall be the absorbing party’s share of the carrying amount of the owner’s equity under the consolidated
financial statements of the ultimate controlling party on the date of combination. With the total face value of the shares issued as
share capital, the difference between the initial cost of the long-term equity investment and total face value of the shares issued shall
be used to offset against the capital reserve. If the capital reserve is insufficient to offset, the retained earnings shall be adjusted. For
business combination resulting in an enterprise under common control by acquiring equity of the absorbing party under common
control through a stage-up approach with several transactions, these transactions will be judged whether they shall be treated as
“package deal”. If they belong to “package deal”, these transactions will be accounted for a transaction in obtaining control . If they
are not belonging to “package deal”, the initial investment cost of the long-term equity investment shall be the absorbing party’s
share of the carrying amount of the owner’s equity under the consolidated financial statements of the ultimate controlling party on the
date of combination. The difference between the initial cost of the long-term equity investment and the aggregate of the carrying
amount of the long-term equity investment before merging and the carrying amount the additional consideration paid for further
share acquisition on the date of combination shall offset against the capital reserve. If the capital reserve is insufficient to offset, the
retained earnings shall be adjusted. Other comprehensive income recognized as a result of the previously held equity investment
accounted for using equity method on the date of combination or recognized for available-for-sale financial assets will not be
accounted for.
For business combination resulted in an enterprise not under common control by acquiring equity of the acquire under common
control through a stage-up approach with several transactions, these transactions will be judged whether they shall be treat as
“package deal”. If they belong to “package deal”, these transactions will be accounted for a transaction in obtaining control . If they
are not belonging to “package deal”, the initial investment cost of the long-term equity investment accounted for using cost method
shall be the aggregate of the carrying amount of equity investment previously held by the acquire and the additional investme nt cost.
For previously held equity accounted for using equity method, relevant other comprehensive income will not be accounted for.
The intermediary fees such as audit, legal services, evaluation consulting, and other related management expenses incurred by the
merging or purchasing party for the enterprise merger shall be included in the current gains/losses at the time of occurrence.
Except for long-term equity investments formed by corporate mergers, other equity investments are initially measured at cost, whi ch
is determined on the basis of the actual cash purchase price paid by the company, the fair value of equity securities issued by the
company, the value agreed upon in investment contracts or agreements, the fair value or original book value of assets exchanged in
non-monetary asset exchange transactions, and the fair value of the long-term equity investment itself, depending on the method of
acquisition. The expenses, taxes, and other necessary expenditures directly related to obtaining long-term equity investments are also
booked into investment cost. For long-term equity investments that can have a significant impact on the investee or exercise joint
control but do not constitute control due to additional investments, the cost of long-term equity investments is the sum of the fair
value of the original held equity investment determined in accordance with the Accounting Standards for Enterprises No. 22-
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Recognition and Measurement of Financial Instruments and the cost of additional investments.
（2）Subsequent measurement and recognition methods of gains/losses
Long term equity investments that have joint control (excluding joint operators) or significant influence over the invested entity shall
be measured with the equity method. Besides, in the company's financial statements, long-term equity investments that can exercise
control over the investee is measured with cost method.
① Long term equity investments measured with cost method
When measured with cost method, long-term equity investments are valued at their initial investment costs, and the cost of long-term
equity investment shall be adjusted in case of additional or recovered investments. Current investment income is recognized based on
the cash dividends or profits declared but not yet distributed by the investee, except for the actual payment made at the time of
investment or the cash dividends or profits included in the consideration.
② Long term equity investments measured with equity method
When measured with equity method, where the initial investment cost of a long-term equity investment exceeds the investor’s
interest in the fair value of the invested party’s identifiable net assets at the acquisition date, no adjustment shall be made to the initial
investment cost. Where the initial investment cost is less than the investor’s interest in the fair value of the invested party’s
identifiable net assets at the acquisition date, the difference shall be charged to current gains/losses, and the cost of the long-term
equity investment shall be adjusted accordingly.
When measured with the equity method, investment income and other comprehensive income shall be recognized on the basis of the
Group’s share of the net gains/losses and other comprehensive income made by the invested party, respectively. Meanwhile, the
carrying amount of long-term equity investment shall be adjusted. The carrying amount of long-term equity investment shall be
reduced in terms of the Group’s share of profit or cash dividend distributed by the invested party. In respect of changes in
shareholders’ equity other than net gains/losses, other comprehensive income and profit distribution of invested party, the carrying
value of long-term equity investment shall be adjusted and included in the capital reserves. Share in the invested party’s net
gains/losses shall be recognized after the net profit of the investee is adjusted on the basis of the fair values of the invested party’s
individual separately identifiable assets at the time of acquisition. In the event of in-conformity between the accounting policies and
accounting periods of the invested party and the Company, the financial statements of the invested party shall be adjusted in
conformity with the accounting policies and accounting periods of the Company. Investment income and other comprehensive
income shall be recognized accordingly. In respect of the transactions between the Group and its associates and joint ventures in
which the assets disposed of or sold are not classified as operation, the share of unrealized gains/losses arising from inter-group
transactions shall be offset by the portion attributable to the Company. Investment gain shall be recognized accordingly. However,
any unrealized loss arising from inter-group transactions between the Group and an invested party will not be offset to the extent that
the loss is impairment loss of the transferred assets. In the event that the Group disposed of an asset classified as operati on to its joint
ventures or associates, which resulted in acquisition of long-term equity investment by the investor without obtaining control, the
initial investment cost of additional long-term equity investment shall be the fair value of disposed operation. The difference between
initial investment cost and the carrying value of disposed operation will be fully booked into current gains/losses. In the event that
the Group sold an asset classified as operation to its associates or joint ventures, the difference between the carrying value of
consideration received and operation shall be fully booked into current gains/losses. In the event that the Company acquired an asset
which formed an operation from its associates or joint ventures, relevant transaction shall be accounted for in accordance wi th
“Accounting Standards for Business Enterprises No. 20 “Business combination”. Gains/losses related to the transaction shall be
measured in full.
The Group’s share in the net losses of the invested party shall be recognized to the extent that the carrying amount of the long-term
equity investment together with any long-term interests that in substance form part of the investor’s net investment in the invested
party are reduced to zero. If the Group has to assume additional obligations, the expected liabilities shall be recognized in terms of
the estimated obligation assumed and be booked into the investment loss for the period. Where the invested party makes profits in
subsequent periods, the profits attributed to the company shall be firstly used to make up unrecognized losses.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
③Acquisition of minority interest
At the time of preparing consolidated financial statements, the difference between the increase in the long-term equity investment
raising from the purchase of minority interest and the net assets attributable to the subsidiary which are measured continuously since
the purchase date (or combination date) in terms of the proportion of newly acquired shares shall be used to adjust the capital surplus,
or retained earnings in case capital surplus is insufficient.
④ Disposal of long-term equity investments
In consolidated financial statements, in case the parent company disposes part of long-term equity investments in a subsidiary
without loss of control, the difference between disposal price and the net asset of the subsidiary related to the disposal of the long-
term equity investments shall be booked into the owners’ equity. If disposal of a portion of the long-term equity investments in a
subsidiary by the parent company results in the loss of its control on the subsidiary, the relevant accounting policies described in
Note 3.7(2). “Preparation method of consolidated financial statements” shall prevail.
On disposal of a long-term equity investment otherwise, the difference between the carrying amount of the investment and the actual
consideration paid is recognized through current gains/losses.
In respect of the long-term equity investment measured with equity method, in case the remaining equity after disposal is also
measured with equity method, other comprehensive income previously under owners’ equity shall be accounted for in accordance
with the same accounting treatment for direct disposal of relevant asset or liability by invested party on pro rata basis at the time of
disposal. The owners’ equity recognized due to changes in other owners’ equity (excluding net gains/losses, other comprehensive
income and profit distribution of invested party) shall be transferred to current gains/losses on pro rata basis.
In respect of long-term equity investment measured with cost method, in case the remaining equity is also measured with equity
method after disposal, other comprehensive income recognized and measured with equity method or recognition and measurement
principle before control over the invested party shall be accounted for in terms of the same accounting treatment for direct disposal
of relevant asset or liability by invested party on pro rata basis at the time of disposal and shall be transferred to current gains/losses
on pro rata basis; among the net assets of invested party unit recognized with equity method (excluding net gains/losses, other
comprehensive income and profit distribution of invested party) shall be transferred to current gains/losses on pro rata basis.
In the event of loss of control over invested party due to partial disposal of equity investment by the group, at the time of preparing
separate financial statements, the remaining equity, which can apply common control or impose significant influence over the
invested party after disposal, shall be measured with equity method. Such remaining equity shall be treated as being measured with
equity method since it is obtained and adjustment shall be made accordingly. The remaining equity, which cannot apply common
control or impose significant influence over the invested party after disposal, shall be accounted for in accordance with the
recognition and measurement principles for financial instruments. The difference between its fair value and carrying amount as at the
date of losing control shall be booked into current gains/losses. In respect of other comprehensive income recognized with equity
method or the recognition and measurement principles of financial instruments before the company obtains control over the invested
party, it shall be accounted for in accordance with the same accounting treatment for direct disposal of relevant asset or liabili ty by
invested party at the time when the control over invested party is lost. Changes in other owners’ equity than net gains/losses, other
comprehensive income and profit distribution) under net asset of invested party recognized with equity method shall be transferred to
current gains/losses at the time when the control over invested party is lost. Of which, for the remaining equity after disposal
measured with equity method, other comprehensive income and other owners’ equity shall be carried forward on pro rata basis, and
for the remaining equity after disposal measured with the recognition and measurement principles of financial instruments, other
comprehensive income and other owners’ equity shall be fully transferred.
In the event of loss of common control or significant influence over invested party due to partial disposal of equity investment by the
Group, the remaining equity after disposal shall be accounted for using the recognition and measurement standard of financial
instruments. The difference between its fair value and carrying amount as at the date of losing common control or significant
influence shall be included in current gains/losses. In respect of other comprehensive income recognized under previous equity
investment using equity method, it shall be accounted for in accordance with the same accounting treatment for direct disposal of
relevant asset or liability by invested party at the time when equity method was ceased to be used. Movement of other owners’ equity
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
(excluding net profit or loss, other comprehensive income and profit distribution under net asset of invested party accounted for and
recognized using equity method) shall be transferred to current gains/losses at the time when equity method was ceased to be used.
The Group disposes its equity investment in subsidiary by a stage-up approach with several transactions until the control over the
subsidiary is lost. If the said transactions belong to “package deal”, each transaction shall be accounted for as a single transaction of
disposing equity investment of subsidiary and loss of control. The difference between the disposal consideration for each transaction
and the carrying amount of the corresponding long-term equity investment of disposed equity before loss of control shall initially
recognized as other comprehensive income, and subsequently transferred to profit or loss arising from loss of control for the current
period upon loss of control.
Measurement model of investment properties
Measured with cost method
Depreciation or amortization method
Investment properties refer to properties held for the purpose of earning rental income or capital appreciation, or both. They include
leased land use rights, land use rights held for the purpose of appreciation and subsequent transfer, leased buildings, etc.
Investment properties are initially measured at cost. Subsequent expenditures related to investment properties are included in the cost
of investment properties if it is highly probable that the economic benefits related to the asset will flow into the enterpri se and the
cost can be measured reliably. Other subsequent expenditures are recognized in current gains/losses when they occur.
The company measures subsequent investment properties with the cost model and depreciates or amortizes them in accordance with
the same policies as those for buildings or land use rights.
For the impairment test methods and the methods for provision of impairment losses of investment properties, please refer to Note V.
When owner-occupied properties or inventories are converted into investment properties, or investment properties are converted into
owner-occupied properties, the carrying value before the conversion is used as the carrying value after the conversion.
When the purpose of an investment property changes to owner-occupation, as of the date of the change, the investment property is
converted into fixed assets or intangible assets. When the purpose of an owner-occupied property changes to earning rental income or
capital appreciation, as of the date of the change, the fixed assets or intangible assets are converted into investment properties. Upon
conversion, if the investment property is measured with the cost model after conversion, the carrying value before the conversion is
used as the carrying value after the conversion; if the investment property is measured with the fair value model after conversion, the
fair value on the conversion date is used as the carrying value after the conversion.
When an investment property is disposed of, or is permanently withdrawn from use and it is expected that no economic benefits can
be obtained from its disposal, the investment property shall be derecognized. The disposal proceeds from the sale, transfer, scrapping
or damage of an investment property, after deducting its carrying value and relevant taxes and fees, are recognized in current
gains/losses.
（1）Recognition criteria
Fixed assets refer to tangible assets held for the production of goods, provision of services, leasing, or business management, with a
useful life exceeding one accounting year. Fixed asset are recognized only when it is probable that the economic benefits associated
with it will flow to the Company and its cost can be measured reliably. Fixed assets are initially measured at cost, taking i nto account
the expected impact of decommissioning costs.
（2）Depreciation method
Category Depreciation method Years of depreciation Scrap value rate Yearly depreciation rate
Permanent ownership land Straight-line depreciation Indefinite No depreciation
House and building Straight-line depreciation 20~35 5% 2.71%~4.75%
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Machinery equipment Straight-line depreciation 10 5% 9.50%
Transportation equipment Straight-line depreciation 4~5 5% 19.00% ~23.75%
Electronic and other
Straight-line depreciation 3～10 5% 9.50%～31.67%
equipment
The expected residual value refers to the amount that the Company is currently expected to obtain from the disposal of the fixed asset
after deducting the expected disposal expenses, assuming that the fixed asset has reached the end of its expected useful life and is in
the expected state at that time.
（3）Impairment test methods and methods for provision of impairment losses of fixed assets
For the impairment test methods and methods for provision of impairment losses of fixed assets, please refer to Note V. 24
“Impairment of Long-term Assets”.
（4）Other explanations
Subsequent expenditures related to fixed assets are booked into the cost of the fixed assets if it is highly probable that the economic
benefits related to the fixed assets will flow into the Company and their costs can be measured reliably, and the carrying va lue of the
replaced part shall be derecognized. Subsequent expenditures other than the above are recognized in current gains/losses when they
occur.
A fixed asset shall be derecognized when it is in a state of disposal or when it is expected that no economic benefits can be generated
through its use or disposal. The difference between the disposal proceeds from the sale, transfer, scrapping or damage of a fixed asset
and its carrying value and relevant taxes and fees shall be recognized in current gains/losses.
The Company reviews the useful life, expected residual value and depreciation method of fixed assets at least at the end of each year.
If any changes occur, they will be accounted for as changes in accounting estimates.
The Company's construction in progress is divided into two types, built by the company or by the contracting-out method. When the
construction in progress is completed and reaches the intended usable state, it is transferred to fixed assets. The criteria for
determining the intended usable state shall meet one of the following situations: The physical construction (including installation) of
the fixed asset has been completely finished or substantially completed; It has undergone trial production or trial operation, and the
results indicate that the asset can operate normally or can stably produce qualified products, or the trial operation results show that it
can operate or conduct business normally; The expenditure on the constructed fixed asset is very small or hardly occurs any more;
The constructed fixed asset has met the design or contractual requirements, or is basically in line with the design or contractual
requirements.
When the construction in progress reaches the intended usable state, it is transferred to fixed assets at the actual project cost. For
those that have reached the intended usable state but for which the final accounts of the project have not been settled, they are first
transferred to fixed assets at the estimated value, and after the final accounts of the project are settled, the original est imated value is
adjusted according to the actual cost, but the originally accrued depreciation will not be adjusted.
For the impairment test methods and methods for provision of impairment losses of construction in progress, please refer to Note V.
Borrowing costs include borrowing interest, amortization of discounts or premiums, auxiliary expenses, and exchange differences
arising from foreign currency borrowings, etc. Borrowing costs that can be directly attributed to the acquisition, constructi on, or
production of assets that meet the capitalization criteria shall commence to be capitalized when the asset expenditures have been
made, the borrowing costs have occurred, and the necessary acquisition, construction, or production activities to bring the asset to the
intended usable or sellable state have started; the capitalization shall cease when the qualifying asset under construction or production
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
reaches the intended usable or sellable state. The remaining borrowing costs are recognized as expenses in the period in which they
occur.
For specific borrowings, the amount of interest expense actually incurred during the current period, after deducting the interest
income obtained from depositing the unutilized borrowing funds in the bank or the investment income obtained from temporary
investments, shall be capitalized; The capitalized amount of general borrowings shall be determined by multiplying the weighted
average of the asset expenditures exceeding the specific borrowings by the capitalization rate of the general borrowings used. The
capitalization rate is determined on the basis of weighted average interest rate of the general borrowings.
During the capitalization period, the exchange differences of specific foreign currency borrowings shall be capitalized in full; The
exchange differences of general foreign currency borrowings shall be booked into current gains/losses.
Assets that meet the capitalization criteria refer to fixed assets, investment properties, inventories, and other assets that require a
substantial period of acquisition, construction, or production activities to reach the intended usable or sellable state.
If an abnormal interruption occurs during the acquisition, construction, or production of an asset that meets the capitalization criteria
and the interruption period continues for more than 3 months, the capitalization of borrowing costs shall be suspended until the
acquisition, construction, or production activities of the asset resume.
Assets that meet the capitalization criteria refer to fixed assets, investment properties, inventories, and other assets that require a
substantial period of acquisition, construction, or production activities to reach the intended usable or sellable state.
（1）Useful life and its determination basis, estimation situation, amortization method or review procedure
Intangible assets refer to identifiable non-monetary assets without physical substance that are owned or controlled by the Company.
Intangible assets are initially measured at cost. Expenditures related to intangible assets are included in the cost of intangible assets if
it is highly probable that the relevant economic benefits will flow into the Company and the cost can be measured reliably.
Expenditures for items other than the above are recognized in current gains/losses when they occur.
The acquired land use rights are usually accounted for as intangible assets. When constructing factories and other buildings through
self-development, the expenditures for the relevant land use rights and the construction costs of the buildings are accounted for as
intangible assets and fixed assets respectively. In the case of externally purchased houses and buildings, the relevant purchase price is
allocated between the land use rights and the buildings. If it is difficult to make a reasonable allocation, it shall all be treated as fixed
assets.
For intangible assets with a finite useful life, the original value minus the expected residual value and the cumulative amount of the
provision for impairment losses already accrued shall be amortized on a straight-line basis and evenly over its expected useful life
starting from the time they are available for use. Intangible assets with an indefinite useful life are not amortized.
At the end of the period, the useful life and amortization method of intangible assets with a finite useful life shall be reviewed.
Changes, if any, will be accounted for as changes in accounting estimates. In addition, the useful life of intangible assets with an
indefinite useful life is also reviewed. If there is evidence indicating that the period during which the intangible asset brings
economic benefits to the enterprise is foreseeable, its useful life shall be estimated and such intangible assets shall be amortized in
accordance with the amortization policy for intangible assets with a finite useful life.
（2）Scope of accumulation of R&D expenditures and relevant accounting treatment methods
The expenditures of the Company's internal research and development projects are divided into expenditures in the research stage
and expenditures in the development stage.
Expenditures in the research stage are booked into current gains/losses when they occur.
The Company's research and development expenditures includes materials used in research and development, labor and service costs,
amortization of research and development equipment, amortization of other intangible assets and fixed assets used in the
development process, and expenses such as water and electricity fees.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
The specific criteria for the Company to divide the expenditures of internal research and development projects into those in the
research stage and those in the development stage are as follows:
The research stage refers to the stage of original and planned investigations and research activities carried out to acquire and
understand new scientific or technical knowledge; the development stage implies the stage of activities in which research results or
other knowledge are applied to a certain plan or design before commercial production or use, in order to produce new or substantially
improved materials, devices, products, etc.
Expenditures in the development stage that meet the following conditions simultaneously are recognized as intangible assets, and
expenditures in the development stage that do not meet the following conditions are recognized in current gains/losses:
① It is technically feasible to complete the intangible asset so that it can be used or sold;
② There is an intention to complete the intangible asset and use or sell it;
③ The way in which the intangible asset generates economic benefits, including being able to prove that there is a market for
products produced with such intangible asset or that there is a market for the intangible asset itself. If the intangible asset will be used
internally, it can be proved to be useful;
④ There are sufficient technical, financial and other resources to support the completion of the development of the intangible asset,
and capable of using or selling the intangible asset;
⑤ Expenditures attributable to the development stage of the intangible asset can be measured reliably.
The specific conditions for capitalizing the expenditures in the development stage of the Company:
If it is impossible to distinguish between expenditures in the research stage and expenditures in the development stage, all the
research and development expenditures incurred will be recognized in current gains/losses.
（3）Impairment test methods and methods for provision of impairment losses of intangible assets
For the impairment test methods and methods for provision of impairment losses of intangible assets, please refer to Note V. 24
Impairment of Long-term Assets.
The Company will judge if there are any sings of impairment as at the balance sheet date in respect of non-current non-financial
assets such as fixed assets, construction in progress, intangible assets with a finite useful life, investment properties measured at cost,
and long-term equity investments in subsidiaries, joint controlled entities and associates. If there is any evidence indicating that an
asset may be impaired, recoverable amount shall be estimated for impairment test. Goodwill, intangible assets with an indefinite
useful life and intangible assets beyond working conditions will be tested for impairment annually, regardless of whether there is any
indication of impairment.
If the impairment test result shows that the recoverable amount of an asset is less than its carrying amount, the impairment provision
will be made in terms of the difference and recognized as an impairment loss. The recoverable amount of an asset is the higher of its
fair value less costs of disposal and the present value of the future cash flows expected to be derived from the asset. An asset’s fair
value is the price in a sale agreement in an arm’s length transaction. If there is no sale agreement but the asset is traded in an active
market, fair value shall be determined on the basis of the bid price. If there is neither sale agreement nor active market for an asset,
fair value shall be estimated on the basis of the best available information. Costs of disposal are expenses attributable to disposal of
the asset, including legal fee, relevant tax and surcharges, transportation fee and direct expenses incurred to prepare the asset for its
intended sale. The present value of the future cash flows expected to be derived from the asset over the course of continued use and
final disposal is determined as the amount discounted at an appropriately selected discount rate. Provisions for assets impairment
shall be made and recognized for the individual asset. If it is not possible to estimate the recoverable amount of the indivi dual asset,
the recoverable amount of the asset group to which the asset belongs shall be defined. The asset group is the smallest group of assets
capable of generating cash flows independently.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
For the purpose of impairment test, the carrying amount of goodwill presented separately in the financial statements shall be
allocated to the asset groups or asset group portfolio benefiting from synergy of business combination. If the recoverable amount is
less than the carrying amount, the impairment loss shall be recognized. The amount of impairment loss shall first reduce the carrying
amount of any goodwill allocated to the asset group or asset groups portfolio, and then reduce the carrying amount of other assets
goodwill within the asset group or asset group portfolio on the basis of the carrying amount of each asset.
An impairment loss recognized on the aforesaid assets shall not be reversed in a subsequent period in respect of the part whose value
can be recovered.
long-term deferred expenses refer to various expenses that have been incurred but are to be amortized over a period of more than one
year and are borne by the current report period and subsequent periods. The long-term deferred expenses of the company mainly
include decoration and renovation costs. The long-term deferred expenses are amortized with the straight - line method over the
expected beneficial period.
Contract liabilities refer to the obligations of the company to transfer goods to customers in exchange for consideration received or
receivable from customers. If the customer has paid the contract consideration or the company has obtained the unconditional right to
receive payment before the company transfers the goods to the customer, the company will record the received or receivable amount
as contract liability at the earlier of the actual payment date by the customer and the due payment date. Contract assets and contract
liabilities under the same contract are presented on a net basis, and contract assets and contract liabilities under different contracts are
not offset.
（1）Accounting treatment for short-term compensation
During the accounting period when the staff provides service to the Company, the short-term remuneration actual occurred shall be
recognized as liability and be reckoned into current gains/losses. During the accounting period when staff provides service t o the
Company, the actual short-term compensation occurred shall be recognized as liabilities and be reckoned into current gains/losses,
except for those in line with accounting standards or being allowed to be reckoned into capital costs; the welfare occurred shall be
reckoned into current gains/losses or relevant asses costs at the time of actual occurrence. The employee compensation shall be
recognized as liabilities and be reckoned into current gains/losses or relevant assets costs at the time of actual occurrence. The
employee benefits that belong to non-monetary benefits are measured at fair value; the social insurances including the medical
insurance, work-injury insurance and maternity insurance and the housing fund that the enterprise pays for the employees as well as
the labor union expenditure and employee education funds withdrawn by relevant provisions should be calculated and determined as
the corresponding compensation amount and determined the corresponding liabilities in accordance with the specified withdrawing
basis and proportion, and be reckoned in the current profits and losses or relevant asset costs in the accounting period that the
employees provide services.
（2）Accounting treatment for post-employment benefit
The post-employment benefit includes the defined contribution plans and defined benefit plans. Post-employment benefits plan refers
to the agreement about the post-employment benefits between the enterprise and employees, or the regulations or measures the
enterprise established for providing post-employment benefits to employees. The defined contribution plan refers to the post-
employment benefits plan that the enterprise doesn’t undertake the obligation of payment after depositing the fixed charges t o the
independent fund; the defined benefit plans refer to post-employment benefits plans except the defined contribution plan.
（3）Accounting treatment for retirement benefits
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
In case the Company terminates the employment relationship with employees before the end of the employment contracts or provides
compensation as an offer to encourage employees to accept voluntary redundancy, the Company shall recognize employee
compensation liabilities arising from compensation for staff dismissal and included in current gains/losses, when the Company
cannot revoke unilaterally compensation for dismissal due to the cancellation of labor relationship plans and employee redundant
proposals; and the Company recognize cost and expenses related to payment of compensation for dismissal and restructuring,
whichever is earlier.The early retirement plan shall be accounted for in accordance with the accounting principles for compensation
for termination of employment. The salaries or wages and the social contributions to be paid for the employees who retire before
schedule from the date on which the employees stop rendering services to the scheduled retirement date, shall be recognized (as
compensation for termination of employment) in the current profits and losses by the Group if the recognition principles for
provisions are satisfied.
（4）Accounting treatment for other long-term employee benefits
Except for the compulsory insurance, the Company provides the supplementary retirement benefits to the employees satisfying
certain conditions, the supplementary retirement benefits belong to the defined benefit plans, and the defined benefit liability
confirmed on the balance sheet is the value by subtracting the fair value of plan assets from the present value of defined benefit
obligation. The defined benefit obligation is annually calculated with the expected accumulated welfare unit method by the
independent actuary on the basis of treasury bond rate with similar obligation term and currency. The service charges related to t he
supplementary retirement benefits (including the service costs of the current period, the previous service costs, and the settlement
gains or losses) and the net interest are reckoned in the current profits and losses or other asset costs, the changes generated by
recalculating the net liabilities of defined benefit plans or net assets should be reckoned in other consolidated income.
When the obligations arising from contingent events such as providing external guarantees, litigation matters, product quality
warranties, and loss contracts become the present obligations of the company, and it is highly probable that the fulfillment of these
obligations will lead to an outflow of economic benefits from the company, and the amount of these obligations can be reliably
measured, the company will recognize these obligations as anticipated liabilities.
The company initially measures the anticipated liabilities based on the best estimate of the expenditures required to fulfill the
relevant present obligations, and reviews the carrying amount of the anticipated liabilities on the balance sheet date.
If all or part of the expenditures required to settle anticipated liabilities are expected to be compensated by a third party, the
compensation amount will be recognized as asset separately when it is basically certain that the compensation can be received, and
the recognized compensation amount will not exceed the carrying amount of the anticipated liabilities.
（1）Accounting treatment methods for share-based payments
Share-based payments are transactions in which equity instruments are granted or liabilities determined on the basis of equity
instruments are assumed in order to obtain services provided by employees or other parties. Share-based payments are classified into
share-based payments settled with equity instruments and share-based payments settled in cash.
① Share-based payments settled with equity instruments
For share-based payments settled by equity instruments in exchange for services provided by employees, they are measured at the
fair value of the equity instruments granted to employees on the grant date. In the case where the fair value amount can only be
exercised after the completion of the services during the vesting period or the achievement of the specified performance conditions,
based on the best estimate of the number of exercisable equity instruments during the vesting period, it is calculated on a straight-line
basis and included in the relevant costs or expenses. When the equity instruments can be exercised immediately after the grant, they
are included in the relevant costs or expenses on the grant date, and the capital reserve is correspondingly increased. On each balance
sheet date during the vesting period, the Company makes the best estimate based on the latest subsequent information such as
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
changes in the number of employees who are expected to be eligible to exercise the rights, and revises the estimated number of
exercisable equity instruments. The impact of the above estimates is included in the relevant costs or expenses of the current period,
and the capital reserve is adjusted accordingly.
For share-based payments settled by equity instruments in exchange for services provided by other parties, if the fair value of the
services provided by other parties can be reliably measured, it is measured at the fair value of the services provided by other parties
on the date of acquisition. If the fair value of the services provided by other parties cannot be reliably measured, but the fair value of
the equity instruments can be reliably measured, it is measured at the fair value of the equity instruments on the date of acquisition of
the services, included in the relevant costs or expenses, and the shareholders' equity is correspondingly increased.
② Cash-settled share-based payment and equity instruments
Cash-settled share-based payments are measured at the fair value of the liabilities calculated and determined on the basis of shares or
other equity instruments undertaken by the Company. If it’s vested immediately after the grant, the fair value of the liabilities
assumed on the date of the grant is included in the cost or expense, and the liability is increased accordingly. If the service within the
waiting period is completed or the specified performance conditions are met, the service obtained in the current period shall be
included in the relevant costs or expenses based on the best estimate of the vesting situation within the waiting period and the fair
value of the liabilities assumed to increase the corresponding liabilities.
On each balance sheet date and settlement date before the settlement of the relevant liabilities, the fair value of the liabilities is
remeasured, and the changes are included in the current gains/losses.
（2）Relevant accounting treatment for modification and termination of share-based payment plans
When the Company modifies a share-based payment plan, if the modification increases the fair value of the equity instruments
granted, the Company recognizes the increase in the services received accordingly based on the increase in the fair value of the
equity instruments. The increase in the fair value of the equity instruments refers to the difference between the fair values of the
equity instruments before and after the modification on the modification date. If the modification reduces the total fair val ue of the
share-based payment or adopts other methods unfavorable to employees, the Company will still continue to account for the services
received as if the change had never occurred, unless the Company cancels some or all of the granted equity instruments.
During the waiting period, if the granted equity instruments are cancelled, the Company will treat the cancellation of the gr anted
equity instruments as an acceleration of vesting, immediately recognize the amount that should be recognized in the remai ning
waiting period in the current gains/losses, and at the same time recognize the capital reserve. If employees or other parties are able to
choose to meet the non - vesting conditions but fail to do so during the waiting period, the Company will treat it as the cancellation of
the granted equity instruments.
（ 3 ） Accounting treatment for share-based payment transactions involving the company and its shareholders or controlling
shareholders
For share-based payment transactions involving the Company and its shareholders or controlling shareholders, if one of the
settlement enterprises and the service-receiving enterprise is within the Company's consolidation scope and the other is outside the
Company's consolidation scope, the following accounting treatment will be carried out in the Company's consolidated financial
statements:
① If the settlement enterprise settles with its own equity instruments, the share-based payment transaction will be treated as an
equity - settled share-based payment; otherwise, it will be treated as a cash - settled share-based payment.
If the settlement enterprise is an investor of the service-receiving enterprise, it will recognize the long-term equity investment in the
service-receiving enterprise based on the fair value of the equity instruments on the grant date or the fair value of the liability to be
assumed, and at the same time recognize the capital reserve (other capital reserve) or liability.
② If the service-receiving enterprise has no settlement obligation or the equity instruments granted to its employees are its own
equity instruments, the share-based payment transaction will be treated as an equity - settled share-based payment; if the service-
receiving enterprise has a settlement obligation and the equity instruments granted to its employees are not its own equity instruments,
the share-based payment transaction will be treated as a cash - settled share-based payment.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
For share-based payment transactions among enterprises within the Company's consolidation scope, if the service-receiving
enterprise and the settlement enterprise are not the same enterprise, the recognition and measurement of the share-based payment
transaction in the individual financial statements of the service-receiving enterprise and the settlement enterprise will be handled by
referring to the above principles.
(1) Distinction between perpetual bonds and preferred stocks
Financial instruments issued by the company, such as perpetual bonds and preferred stocks, that meet the following conditions are
considered equity instruments:
① This financial instrument does not include contractual obligations to deliver cash or other financial assets to other parties, or to
exchange financial assets or financial liabilities with other parties under potential adverse conditions;
② In case the financial instrument needs to be settled or can be settled using the enterprise's own equity instruments in the future, if
the financial instrument is a non-derivative instrument, it does not include the contractual obligation to deliver a variable quantity of
its own equity instruments for settlement; If it is a derivative instrument, the company can only settle the financial instru ment by
exchanging a fixed amount of its own equity instruments for a fixed amount of cash or other financial assets.
Except for financial instruments that can be classified as equity instruments according to the above conditions, other financial
instruments issued by the Company should be classified as financial liabilities.
If the financial instruments issued by the company are composite financial instruments, they shall be recognized as a liabili ty based
on the fair value of the liability component, and the amount received after deducting the fair value of the liability component is
recognized as “other equity instruments”. The transaction costs incurred in the issuance of composite financial instruments shall be
allocated between the liability component and the equity component in proportion to their respective proportions of the total issuance
price.
(2) Accounting treatment methods for perpetual bonds and preferred stocks
Financial instruments such as perpetual bonds and preferred stocks classified as financial liabilities, including their related interest,
dividends, gains or losses, as well as gains or losses arising from redemption or refinancing, are booked into current gains/losses,
except for borrowing costs that meet capitalization criteria (see Note V.22 "Borrowing Costs").
When financial instruments such as perpetual bonds and preferred stocks classified as equity instruments are issued (including
refinancing), repurchased, sold, or cancelled, the Company treats them as changes in equity and deducts related transaction costs
from equity. The company treats the distribution of equity instrument holders as profit distribution.
The company does not recognize changes in fair value of equity instruments.
Disclose accounting policies used for revenue recognition and measurement based on business type
When the contract signed between the company and the customer meets the following conditions simultaneously, revenue is
recognized when the customer obtains control of the relevant goods: the parties to the contract have approve the contract and promise
to fulfill their respective obligations; The contract specifies the rights and obligations of all parties involved in the transfer of goods
or provision of services; The contract has clear payment terms related to the transferred goods; The contract has commercial
substance, that is, the performance of the contract will change the risk, time distribution or amount of the company's future cash
flows; The consideration that the company is entitled to receive from transferring goods to customers is likely to be recovered.
On the commencement date of the contract, the company identifies each individual performance obligation in the contract and
distributes the transaction price to each individual performance obligation based on the relative proportion of the individual selling
price of the promised goods for each individual performance obligation. When determining the transaction price, factors such as
variable consideration, significant financing components in the contract, non-cash consideration, and payable customer consideration
shall be taken into account.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
For each individual performance obligation in the contract, if one of the following conditions is met, the company will recognize the
transaction price allocated to that individual performance obligation as revenue during the relevant performance period according to
the performance progress: the customer obtains and consumes the economic benefits brought by the company's performance at the
same time as the company's performance; Customers are able to control the goods under construction during the performance process
of the company; The goods produced by the company during the performance process have irreplaceable uses, and the company has
the right to collect payments for the completed performance portion throughout the entire contract period. The performance progress
is determined using the input method based on the nature of the transferred goods. When the performance progress cannot be
reasonably determined, if the costs already incurred by the company are expected to be compensated, revenue is recognized on the
basis of the amount of costs already incurred until the performance progress can be reasonably determined.
If any of the above conditions is not met, the company will recognize the transaction price allocated to the single performance
obligation as revenue when the customer obtains control of the relevant goods. When determining whether the customer has obtained
control of the product, the company considers the following indications: the enterprise has the right to receive payment for the
product at present, that is, the customer has a current payment obligation for the product; The enterprise has transferred the legal
ownership of the product to the customer, that is, the customer already owns the legal ownership of the product; The enterprise has
transferred the physical item to the customer, meaning that the customer has already physically occupied the item; The enterprise has
transferred the main risks and rewards of ownership of the product to the customer, that is, the customer has obtained the main risks
and rewards of ownership of the product; The customer has accepted the product; Other signs indicating that the customer has gained
control of the product.
The time point for recognizing domestic sales revenue of the company is as follows: the company delivers goods according to the
sales contract or order agreement. On the reconciliation date agreed with the buyer, the goods received and inspected by the buyer
during the period from the previous reconciliation date to this reconciliation date are verified with the buyer. After verification by
both parties, the risk and reward are transferred to the buyer. The company issues an invoice to the buyer based on the confirmed
variety, quantity, and amount, and confirms the realization of sales revenue on the reconciliation date.
The recognition time point for the company's foreign sales revenue: After the customs review is completed, the company confir ms
the realization of sales revenue based on the export date stated on the customs declaration form.
The situation where similar businesses adopt different business models involving different revenue recognition and measurement
methods
Nil
Contract costs are divided into contract performance costs and contract acquisition costs.
The costs incurred by the company for the performance of a contract that simultaneously meet the following conditions are
recognized as a contract performance cost asset:
（1）The cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturing expenses
(or similar expenses), costs explicitly borne by the customer, and other costs incurred solely due to the contract;
（2）The cost increases the resources that the enterprise will use in the future to fulfill its performance obligations;
（3）The cost is expected to be recoverable.
The incremental costs incurred by the company for obtaining a contract that are expected to be recoverable are recognized as contract
acquisition cost asset; however, if the amortization period of the asset does not exceed one year, it can be recognized in current
gains/losses when it occurs.
Assets related to contract costs are amortized on the same basis as the recognition of revenue from the related goods or services.
If the carrying value of an asset related to contract costs is higher than the difference between the following two items, th e company
will make an impairment provision for the excess amount and recognize it as an asset impairment loss:
（1）The remaining consideration expected to be obtained from the transfer of the goods or services related to the asset;
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
（2）The estimated costs to be incurred for the transfer of the related goods or services.
If the above asset impairment provision is subsequently reversed, the carrying value of the asset after the reversal shall not exceed the
carrying value of the asset on the reversal date assuming no impairment provision is made.
Government grants refer to monetary and non-monetary assets obtained by the Company from the government free of charge,
excluding the capital invested by the government as an investor with corresponding ownership rights. Government grants are
classified into asset-related government grants and income-related government grants. The Company defines government grants
obtained for the construction or other formation of long-term assets as asset-related government grants; the remaining government
grants are defined as income-related government grants. If the grantee is not clearly specified in the government document, the
following methods are used to classify the grants into income-related government grants or asset-related government grants: (1) If
the specific project to which the grant relates is specified in the government document, such grant shall be divided in terms of the
relative proportion of the expenditure amount that will form assets and the expenditure amount that will be included in expenses in
the budget of the specific project. This division proportion will be reviewed on each balance sheet date and changed if necessary; (2)
If the government document only makes a general description of the use and does not specify a specific project, it will be re garded as
income-related government grant. Monetary government grants are measured at the amount received or receivable. Non-monetary
government grants are measured at fair value; if the fair value cannot be reliably obtained, the government grants shall be measured
at nominal value. Government grants measured at nominal value are directly recognized in the current gains/losses.
The Company usually recognizes and measures government grants at the actual amount received when they are actually received.
However, for those where there is conclusive evidence at the end of the period indicating that the relevant conditions specified in the
fiscal support policy are met and the fiscal support funds are expected to be received, they are measured at the receivable a mount.
Government grants measured at the receivable amount shall meet the following conditions simultaneously:(1) The amount of the
receivable grant has been confirmed by the relevant government department in writing, or can be reasonably estimated according to
the relevant provisions of the officially issued fiscal fund management measures, and there is no significant uncertainty in the
estimated amount; (2) It is based on the officially released fiscal support projects and their fiscal fund management measures by the
local fiscal department and actively disclosed in accordance with the provisions of the Regulations on the Disclosure of Gover nment
Information, and the management measures shall be universal (any qualified enterprise can apply), rather than specifically formulated
for specific enterprises; (3) The relevant grant approval document has clearly promised the disbursement period, and the
disbursement of the funds is guaranteed by the corresponding fiscal budget, so it can be reasonably ensured that the funds can be
received within the specified period; (4) According to the specific circumstances of the Company and the grant matter, other relevant
conditions (if any) shall be met.
Government grants related to assets are recognized as deferred income and amortized into the current gains/losses in a reasonable and
systematic way over the useful life of the relevant assets. Government grants related to income, if they are used to compensate for
relevant costs, expenses or losses in the future, are recognized as deferred income and included in the current gains/losses in the
period when the relevant costs, expenses or losses are recognized; if they are used to compensate for relevant costs, expenses or
losses that have already occurred, they are directly included in the current gains/losses.
Government grants that contain both parts related to assets and parts related to income are accounted for separately according to
different parts; if it is difficult to distinguish, they are classified as a whole as income-related government grants.
Government grants related to the Company's daily activities are included in other income or deducted from relevant costs and
expenses according to the essence of economic transactions; government grants not related to daily activities are included in non-
operating income and expenses.
In case it is required to return the recognized government grants if there is a balance of relevant deferred income, the book balance of
the relevant deferred income shall be written off, and the excess part is adjusted to the current gains/losses and the book value of
assets; in other cases, it is directly booked into current gains/losses.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Based on the difference between the carrying value of assets and liabilities and their tax bases (for items that are not recognized as
assets and liabilities but for which the tax base can be determined according to tax law provisions, the difference between the tax
base and the book amount), deferred income tax assets or deferred income tax liabilities are calculated and recognized in terms of the
applicable tax rate during the period when the asset is expected to be recovered or the liability is expected to be settled.
The recognition of deferred income tax assets is limited to the amount of taxable income that is likely to be available to offset the
deductible temporary differences. At the balance sheet date, if there is conclusive evidence indicating that sufficient taxable income is
likely to be obtained in future periods to offset the deductible temporary differences, the deferred income tax assets that were not
recognized in previous accounting periods are recognized.
The carrying value of deferred income tax assets will be reviewed at the balance sheet date. If it is likely that sufficient taxable
income will not be available in future periods to offset the benefits of the deferred income tax assets, the carrying value of the
deferred income tax assets shall be written down. When it is likely that sufficient taxable income will be obtained, the written-down
amount is reversed.
The current income tax and deferred income tax of the company are booked in the current gains/losses as income tax expenses or
gains, except for the income tax arising from business combinations, transactions or events directly recognized in owners' equity.
When the Company has the legal right to settle on a net basis and intends to settle on a net basis or to acquire assets and settle
liabilities simultaneously, the current income tax assets and current income tax liabilities of the Company are presented at the net
amount after offset.
(1) Accounting treatment method of leasing as a lessee
The company as the lessee
The main category of leased assets of the company is buildings.
On the commencement date of the lease term, the Company recognizes right of use assets and lease liabilities for leases other than
short-term leases and low value asset leases, and separately recognizes depreciation and interest expenses during the lease term.
The company adopts the straight-line method during each period of the lease term to record the lease payments for short-term leases
and low value asset leases as current expenses.
① Right of use assets
The right of use asset refers to the lessee’s right to use the leased asset during the lease term. On the commencement date of the lease
term. The right of use assets is initially measured at cost. The cost includes: ① the initial measurement amount of the lease liability;
② If there is lease incentive for the lease payment made on or before the start date of the lease term, the relevant amount of the lease
incentive already enjoyed shall be deducted; ③ The initial direct expenses incurred by the lessee; ④ The lessee is expected to incur
the cost of dismantling and removing the leased asset, restoring the leased asset's location, or restoring the leased asset t o the state
specified in the lease terms.
The depreciation of the company's right of use assets is classified and provisioned with the straight-line method. For those who can
reasonably determine that ownership of the leased asset will be acquired upon the expiration of the lease term, depreciation shall be
accrued over the expected remaining useful life of the leased asset; For those whose ownership of the leased asset cannot be
reasonably determined upon expiration of the lease term, depreciation shall be accrued during the shorter of the lease term or the
remaining useful life of the leased asset.
The company determines whether the right of use assets have been impaired and performs accounting treatment in accordance with
the relevant provisions of Enterprise Accounting Standard No. 8- Asset Impairment.
② Lease liabilities
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Lease liabilities are initially measured at the present value of lease payments that have not yet been paid on the lease term
commencement date. The lease payment amount includes: ① fixed payment amount (including substantial fixed payment amount),
and if there is a lease incentive, the relevant amount of the lease incentive shall be deducted; ② Variable lease payments based on
indices or ratios; ③ The estimated amount to be paid based on the residual value of the guarantee provided by the lessee; ④ The
exercise price for purchasing the option, provided that the lessee reasonably determines that the option will be exercised; ⑤ The
payment required to exercise the option to terminate the lease, provided that the lease term reflects that the lessee will exercise the
option to terminate the lease;
The company adopts the implicit interest rate of leasing as the discount rate; If the implicit interest rate of the lease cannot be
reasonably determined, the incremental borrowing rate of the company shall be applied as the discount rate. The company calculates
the interest expenses of lease liabilities during each period of the lease term based on a fixed periodic interest rate and i ncludes them
in financial expenses. The cyclical interest rate refers to the discount rate or revised discount rate adopted by the company.
Variable lease payments that are not included in the measurement of the lease liability are recognized in the current period's
gains/losses when they actually occur.
When there are changes in the evaluation results of the option to renew, terminate or purchase the lease, the present value of the lease
liability shall be remeasured based on the changed lease payment amount and the revised discount rate, and the book value of the
right of use asset shall be adjusted accordingly. When there are changes in the actual lease payment amount, the expected payable
amount of the guarantee residual value, or the variable lease payment amount depending on the index or ratio, the lease liabi lity shall
be remeasured based on the present value calculated by the changed lease payment amount and the original discount rate, and the
book value of the right of use asset shall be adjusted accordingly.
③ Short term leasing and low value asset leasing
For short-term leases (leases with a lease term of no more than 12 months on the lease commencement date) and leases of low value
assets (with a value less than 2000 yuan), the Company adopts a simplified approach by not recognizing right of use assets and lease
liabilities. Instead, the lease payments are recorded in the relevant asset costs or current gains/losses with straight-line method or
other systematic and reasonable methods during each period of the lease term.
(2) Accounting treatment method of leasing as a lessor
The company as the lessor
Operating lease
The company uses the straight-line method to recognize the lease receipts from operating leases as rental income for each period
during the lease term. Variable lease payments related to operating leases that are not included in lease receipts are recognized in the
current period's gains/losses when they actually occur.
Financial leasing
On the commencement date of the lease term, the Company recognizes the receivable financing lease payments and terminates the
recognition of financing lease assets. The financing lease payments receivable are initially measured based on the net lease
investment (the sum of unsecured residual value and the present value of lease receipts not yet received on the lease commencement
date discounted at the lease implicit interest rate), and interest income is recognized during the lease term based on a fixed periodic
interest rate. The variable lease payments obtained by the company that are not included in the net measurement of lease investments
are recognized in the current gains/losses when they actually occur.
In the process of applying accounting policies, due to the inherent uncertainty of operating activities, the company needs to make
judgments, estimates, and assumptions about the book value of financial statement items that cannot be accurately measured. These
judgments, estimates, and assumptions are based on the past historical experience of the company's management and have been made
taking into account other relevant factors. These judgments, estimates, and assumptions will affect the reported amounts of income,
expenses, assets, and liabilities, as well as the disclosure of contingent liabilities on the balance sheet date. However, the actual
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
results resulting from the uncertainty of these estimates may differ from the current estimates of the company's management, leading
to significant adjustments to the carrying amounts of future affected assets or liabilities.
The company conducts regular reviews of the aforementioned judgments, estimates, and assumptions on a going concern basis. If
changes in accounting estimates only affect the current period of the change, their impact is recognized in the current period of the
change; If it affects both the current and future periods of the change, its impact shall be recognized in both the current and future
periods of the change.
On the balance sheet date, the Company needs to make judgments, estimates, and assumptions about the amounts of financial
statement items in the following important areas:
(1) Accrual of bad debts reserve
The company uses the expected credit loss model to evaluate the impairment of financial instruments. Applying the expected credit
loss model requires making significant judgments and estimates, taking into account all reasonable and evidence-based information,
including forward-looking information. When making such judgments and estimates, the Company infers the expected changes in the
debtor's credit risk based on historical repayment data combined with economic policies, macroeconomic indicators, industry risks,
and other factors.
(2) Impairment provision for inventory
According to inventory accounting policy, the company measure inventory at the lower of cost and net realizable value, and ma ke
impairment provision for inventory for those with costs higher than net realizable value, as well as for obsolete and unsold inventory.
The impairment of inventory to net realizable value is based on evaluating the sellability and net realizable value of invent ory. To
identify inventory impairment, management shall make judgments and estimates based on obtaining conclusive evidence and
considering factors such as the purpose of holding inventory and the impact of events after the balance sheet date. The difference
between the actual result and the original estimate will affect the book value of inventory and the provision or reversal of impairment
provision for inventory s during the period when the estimate is changed.
(3) Impairment provision for non-financial and non-current assets
On the balance sheet date, the company assesses whether there are signs of potential impairment of non-current assets other than
financial assets. For intangible assets with uncertain useful lives, in addition to annual impairment tests, impairment tests are also
conducted when there are signs of impairment. When there are indications that the carrying amount of non-current assets other than
financial assets cannot be recovered, impairment test shall be conducted.
When the book value of an asset or asset group is higher than the recoverable amount, which is the higher of the net amount of fair
value minus disposal expenses and the present value of expected future cash flows, it indicates impairment.
The net amount after deducting disposal expenses from fair value is determined by referring to the sales agreement price or
observable market price of similar assets in fair transactions, and subtracting the incremental costs directly attributable t o the disposal
of the asset.
When estimating the present value of future cash flows, significant judgments need to be made regarding the production, sale price,
related operating costs, and discount rate used in calculating the present value of the asset (or asset group). When estimati ng the
recoverable amount, the company will use all available relevant information, including forecasts of production, selling prices, and
related operating costs based on reasonable and supportable assumptions.
The company tests at least once a year whether there is any impairment of goodwill. This requires estimating the present value of
future cash flows from asset groups or portfolio of asset groups that have been allocated goodwill. When estimating the present value
of future cash flows, the company needs to estimate the cash flows generated by future asset groups or portfolio of asset groups, and
select an appropriate discount rate to determine the present value of future cash flows.
(4) Depreciation and amortization
The company, after considering the residual values of investment real estate, fixed assets and intangible assets, calculates and accrues
depreciation and amortization using the straight-line method over their useful lives. The company regularly reviews the service life
to determine the amount of depreciation and amortization expenses to be included in each report period. The service life is
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
determined by the company based on past experience with similar assets and expected technological updates. If there are signi ficant
changes in previous estimates, adjustments will be made to depreciation and amortization expenses in future periods.
(5) Fair value of financial instruments
For financial instruments for which there is no active trading market to provide quotes, valuation techniques need to be adopted to
determine their fair values. Valuation techniques need to be used to determine fair value for financial instruments that cannot be
quoted in markets with no active trading, for example, the latest trading information in the market, discounted cash flow met hod, and
option pricing models. The company has established a set of workflow to ensure that qualified personnel are responsible for the
calculation, verification, and review of fair value. The valuation model used by the company incorporates market information as
much as possible and minimizes the use of unique information of the company. It should be pointed out that some of the information
used in the valuation model needs to be estimated by the management (such as discount rate and target exchange rate volatilit y). The
company regularly reviews the above estimates and assumptions and makes adjustments as necessary.
(6) Income tax
In the normal business operations of the company, there is a certain degree of uncertainty in the final tax treatment and cal culation of
some transactions. Whether some items can be deducted before tax requires the approval of the tax authorities in charge. If there is a
difference between the final determination result of these tax matters and the initially estimated amount, such difference wi ll have an
impact on the current income tax and deferred income tax in the period of the final determination.
(1) Changes of important accounting policies
?Applicable Not applicable
(2) Changes in important accounting estimations
□ Applicable ? Not applicable
(3) Related entries of the financial statements at the beginning of the first year of implementing the new
accounting standards since 2026
□ Applicable ? Not applicable
Nil
VI. Taxation
Tax Basis Tax rate
The output tax is calculated based on the taxable 25%(IRD，Denmark), 22%(VHIO，Italy),
income, and VAT is calculated based on the
VAT 21%(Borit，Belgium), 13%,9%,6%, Collection rate
difference after deducting the input tax available
for deduction for the current period 5%
City maintaining
Turnover tax payable 7%, 5%
& construction tax
Corporation
Taxable income 15%, 20%, 21%, 22%, 25%, 24% + regional tax 3.9%
income tax
Educational surtax Turnover tax payable 5%
Ad valorem sales amount of taxable goods at ex-
Sales tax 5%、10%
factory or import stage
Disclose reasons for different taxpaying body
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Taxpaying body Income tax rate
The company, WFJN, WFLD, WFTT, WFMA, WFAM, WFSC, WFLD(Chongqing), WFAS, WFCA 15%
WFLD(Wuhan) 20%
WFLD(Malaysia) 24%
IRD America 21%
IRD(Denmark) 22%
WFTR, WFQL, VHCN, WFLD(Nanchang), WFSS, WFLH, Borit(Belgium), WFET, WFBL 25%
VHIO(Italy)
The company, WFJN, WFLD, WFTT and WFMA passed high-tech enterprise accreditation in 2023, entitled to 15% preferential
income tax rate from 1 January 2023 to 31 December 2025. WFAS was accredited as a high-tech enterprise in 2024, and entitled to
accredited as high-tech enterprises in 2025, and entitled to 15% preferential income tax rate from 1 January 2025 to 31 December
According to Announcement on Continuation of Income Tax Policy for Western Development Enterprises 2020 No.23 of the
Ministry of Finance, State Taxation Administration and National Development and Reform Commission, from 1 January 2021 to 31
December 2030, for the enterprises located in the western region with industrial items specified in Catalogue of Encouraged
Industries in the Western Region as their main business and main business income accounting for more than 60% of the total
enterprise income, enterprise income tax shall be levied at a reduced rate of 15%. WFLD (Chongqing) is subject to a preferential
income tax rate of 15% in 2025.
According to Announcement on Relevant Tax Policy to Further Support the Development of Small-sized Micro-profit Enterprises
and Individual Industrial and Commercial Households (Ministry of Finance and State Taxation Administration Announcement 2023
No.12), the taxable income shall be calculated at a reduced rate of 25% for small-sized micro-profit enterprises, with company
income tax policy subject to a tax rate of 20%, which shall continue implementation until 31 December 2027. WFLD (Wuhan) met
the criteria for small-sized micro-profit enterprise in 2025, and was entitled to the above tax preference.
Nil
VII. Notes to major items in consolidated financial statements
In RMB
Item Ending balance Opening balance
Cash on hand 3,021.82 8,403.89
Cash in bank 2,375,331,705.36 2,269,214,635.09
Other monetary funds 39,555,759.91 89,627,273.49
Total 2,414,890,487.09 2,358,850,312.47
Including: total amount of funds deposited overseas 171,045,437.67 101,759,199.50
Other explanation
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
The ending balance of other monetary funds includes bank acceptance deposits of 728,665.13 yuan, Mastercard deposits of 144.17
yuan, performance deposits of 7,820,760.93 yuan, guarantee deposits of 317,328.83 yuan, loan deposits of 30,308,794.51 yuan, and
wealth management deposits of 380,066.34 yuan.
In RMB
Item Ending balance Opening balance
Financial assets measured at fair value and whose changes are
included in current profits and losses 2,668,446,370.48 2,334,658,155.36
Including:
Listed company stocks 648,491.67 888,391.56
Bank wealth management products 2,544,942,815.34 2,017,206,116.57
Other wealth management products 122,855,063.47 316,563,647.23
Total 2,668,446,370.48 2,334,658,155.36
(1) Classification of notes receivable
In RMB
Item Ending balance Opening balance
Trade acceptance bill 219,852,886.48 93,133,355.40
Total 219,852,886.48 93,133,355.40
(2) Accrued bad debts reserve
In RMB
Ending balance Opening balance
Book balance Bad debts reserve Book value Bad debts reserve
Category Book
Accrue Book value Amoun Accrue
Amount Ratio Amount Amount Ratio value
d ratio t d ratio
Notes
receivable
with bad 219,852,88 93,133,3
debts reserve 100.00% 219,852,886.48 93,133,355.40 100.00%
accrued on
portfolio
Including:
Portfolio 1:
bank
acceptance
bill
Portfolio 2:
commerce 219,852,88 93,133,3
acceptance 100.00% 219,852,886.48 93,133,355.40 100.00%
bill
Total 100.00% 219,852,886.48 93,133,355.40 100.00%
The bad debts reserve of note receivable is made in accordance with the general model of expected credit loss:
□Applicable ?Not applicable
(3) Bad debts reserve accrued, recovered or reversed
Major amount of bad debts reserve recovered or reversed:
□ Applicable ? Not applicable
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
(4) Notes receivable already pledged by the Company at the end of the period
□ Applicable ? Not applicable
(5) Notes endorsement or discount and undue on balance sheet date
Nil
(6) Notes receivable charged off in the period
Nil
(1) By aging
In RMB
Aging Ending book balance Opening book balance
Within one year (One year included) 4,104,178,857.36 4,334,268,607.72
Including: within 6 months 4,032,038,605.82 4,253,883,964.14
Over 3 years 27,531,926.72 26,951,657.03
> 5 years 14,411,017.95 1,186,365.66
Total 4,171,036,573.70 4,387,042,743.32
(2) Disclosure by classification based on the accrual method of bad debts reserve
In RMB
Ending balance Opening balance
Category Book balance Bad debts reserve Book balance Bad debts reserve
Book
Book value
Accrue value Accrued
Amount Ratio Amount Amount Ratio Amount
d ratio ratio
Accounts
receivable with
bad debts reserve 0.49% 20,258,150.41 0.52% 97.76% 510,506.23
accrued on single 41 % 36 13
basis
Including:
Accounts
receivable with 4,122,3
bad debts reserve 99.51% 28,442,879.73 0.69% 35,543. 99.48% 0.54%
accrued on 23.29 30.96 72 72.24
portfolio
Including:
Total 48,701,030.14 1.17% 35,543. 1.05%
Bad debts reserve accrued on single basis: 20,258,150.41 yuan
In RMB
Opening balance Ending balance
Name Bad debts Bad debts Accrued Accrued
Book balance Book balance
reserve reserve ratio causes
Linyi Zotye Automobile
Have difficulty
Components Manufacturing 6,193,466.77 6,193,466.77 6,193,466.77 6,193,466.77 100.00%
Co., Ltd. in collection
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Brilliance Automotive Have difficulty
Group Holdings Co., Ltd. 3,337,118.71 3,337,118.71 3,002,745.56 3,002,745.56 100.00%
in collection
SAIC HONGYAN Have difficulty
Automotive Co., Ltd 1,883,372.36 1,863,738.32 1,563,100.51 1,563,100.51 100.00%
in collection
Shaanxi Wanfang Have difficulty
Automotive Parts Co., Ltd in collection
Dongfeng Chaoyang Diesel Have difficulty
Co., Ltd. 1,823,262.64 1,823,262.64 1,823,262.64 1,823,262.64 100.00%
in collection
Nedstack Fuel Cell Have difficulty
Technology BV in collection
Tianjin Levol Engine Co., Have difficulty
Ltd. 1,018,054.89 1,018,054.89 100.00%
in collection
Have difficulty
Others 4,827,407.24 4,336,535.05 5,476,601.75 5,476,601.75 100.00%
in collection
Total 22,742,112.36 22,231,606.13 20,258,150.41 20,258,150.41
Bad debts reserve accrued on portfolio: 28,442,879.73 yuan
In RMB
Ending balance
Name
Book balance Bad debts reserve Accrued ratio
Within 6 months 4,032,038,605.82
Over 3 years 13,936,926.49 13,936,926.49 100.00%
Total 4,150,778,423.29 28,442,879.73
Explanation on determining the basis of portfolio
Nil
Bad debts reserve accrued on general model of expected credit loss:
□ Applicable ? Not applicable
(3) Bad debts reserve accrued, recovered or reversed
Bad debts reserve accrued in the period:
In RMB
Amount changed in the period
Opening
Category Recovered or Ending balance
balance Accrued Charged off Other
reversed
Accrued on
portfolio 22,231,606.13 3,022.13 762,876.44 947,783.38 -265,818.03 20,258,150.41
Accrued on
single basis 23,747,958.72 5,813,785.05 1,083,299.99 -35,564.05 28,442,879.73
Total 45,979,564.85 5,816,807.18 1,846,176.43 947,783.38 -301,382.08 48,701,030.14
Major amount of bad debts reserve recovered or reversed: Nil
(4) Accounts receivable charged off in the Period
In RMB
Item Amount charged off
Accounts receivable charged off 947,783.38
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
(5) Top five accounts receivable and contract assets at ending balance by debtors
In RMB
Ending Ending balance of Ratio in total ending
Ending balance of bad debts
Ending balance of balance of accounts balance of accounts
Name reserve and impairment
accounts receivable contract receivable and receivable and
provision for contract assets
assets contract assets contract assets
RBCD 885,142,161.62 885,142,161.62 21.22% 5,507,839.36
Robert Bosch
Company
Client 1 221,429,722.64 221,429,722.64 5.31% 20,233.60
Client 2 97,027,498.01 97,027,498.01 2.33% 299,680.83
Client 3 84,519,874.84 84,519,874.84 2.03%
Total 1,950,926,629.10 1,950,926,629.10 46.78% 8,391,612.35
(1) By category
In RMB
Item Ending balance Opening balance
Bill receivable- bank acceptance bill 1,931,633,857.67 1,861,919,025.73
Total 1,931,633,857.67 1,861,919,025.73
(2) Disclosure by classification based on the accrual method of bad debts reserve
Basis for division of each stage and accrual ratio of bad deb reserve
Nil
Explanation of significant changes in the financing book balance of accounts receivable with changes in impairment provision in
the current period:
Nil
(3) Bad debt provision accrued, recovered or reversed
Other explanation: Nil
(4) Receivable financing pledged by the Company at period-end
In RMB
Item Amount pledge at period-end
Bank acceptance bill 370,229,131.46
Total 370,229,131.46
(5) Receivable financing endorsed or discounted but undue on balance sheet date
In RMB
Item Amount derecognized at period-end Amount not derecognized at period-end
Bank acceptance bill 721,965,697.56
Commercial acceptance bill
Total 721,965,697.56
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
(6) Receivable financing charged off in current period
Nil
(7) Increase/decrease of receivable financing and changes in fair value of receivable financing in current
period
Nil
(8) Other explanation
Nil
In RMB
Item Ending balance Opening balance
Dividends receivable 2,055,706,449.33 5,357,758.49
Other accounts receivable 78,532,316.87 77,623,089.75
Total 2,134,238,766.20 82,980,848.24
(1) Interest receivable
Nil
Nil
□Applicable ?Not applicable
Nil
Nil
(2) Dividends receivable
In RMB
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Item (or invested enterprise) Ending balance Opening balance
WFEC 39,200,000.00
RBCD 1,671,148,690.84
Zhonglian Electronics 340,000,000.00
WFPM 5,357,758.49 5,357,758.49
Total 2,055,706,449.33 5,357,758.49
Nil
□Applicable ?Not applicable
Nil
Nil
(3) Other accounts receivable
In RMB
Nature Ending book balance Opening book balance
Intercourse funds from units 1,149,204.57 645,071.02
Cash deposit 11,468,523.98 11,950,266.49
Staff loans and petty cash 1,265,418.63 240,006.80
Social security and provident fund paid 13,316,035.12 13,442,906.73
WFTR “platform trade” business portfolio 2,033,692,153.68 2,038,255,787.68
Other 4,488,812.15 877.68
Total 2,065,380,148.13 2,064,534,916.40
In RMB
Aging Ending book balance Opening book balance
Within one year (One year included) 21,470,484.07 16,389,752.66
Including: Within 6 months 20,371,562.98 14,219,410.49
Over 3 years 2,040,383,218.06 2,045,106,282.98
Over 5 years 2,840,790.43 1,584,473.01
Total 2,065,380,148.13 2,064,534,916.40
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
?Applicable □Not applicable
Bad debts reserve accrued on the general model of expected credit loss:
In RMB
Phase I Phase II Phase III
Expected credit loss for Expected credit loss for
Bad debts reserve Expected credit loss the entire duration the entire duration (with Total
over next 12 months (without credit credit impairment
impairment occurred) occurred)
Balance on Jan. 1,
Balance on Jan. 1,
Current accrued 197,759.73 197,759.73
Current reversal 80,500.00 31,726.80 112,226.80
Other changes -149,528.32 -149,528.32
Balance on June. 30,
Changes in book balance of bad debts reserve whose amount has major changes in the period
□ Applicable ? Not applicable
Bad debts reserve accrued in the period:
In RMB
Change in current period
Category Opening balance Ending balance
Accrued Recovered or reversed Charged-off Other
Bad debts
reserve
Total 1,986,911,826.65 197,759.73 112,226.80 -149,528.32 1,986,847,831.26
Nil
In RMB
Ratio in total ending balance Ending balance of
Enterprise Nature Ending balance Aging
of other accounts receivable bad debts reserve
WFTR “platform
See “Other
trade” business 2,033,692,153.68 Over 3 years 98.47% 1,979,160,379.70
explanations”
portfolio
Wuxi China
Resources Gas Co., Deposit margin 1,353,500.00 Over 3 years 0.07% 1,353,500.00
Ltd.
Wuxi Xingzhou
Industrial Park Within 1 year,
Deposit margin 1,146,676.84 0.06% 718,066.05
Development Co., over 3 years
Ltd.
Wuxi Xingzhou
Energy 1-2 years,
Deposit margin 1,045,373.12 0.05% 918,856.80
Development Co., over 3 years
Ltd.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Wuxi Chenyang
Construction
Deposit margin 1,000,000.00 1- 2 years 0.05% 200,000.00
Equipment Leasing
Co., Ltd.
Total 2,038,237,703.64 98.70% 1,982,350,802.55
Nil.
(1) By aging
In RMB
Ending balance Opening balance
Aging
Amount Ratio Amount Ratio
Within one year 119,364,878.75 93.78% 98,012,846.59 98.51%
Over 3 years 1,781,621.10 1.40% 1,635.12 0.00%
Total 127,281,493.52 100% 99,492,959.55 100%
Explanation on reasons why prepayments with an aging of over 1 year and significant amounts were not settled in a timely manner
Nil
(2) Top 5 accounts paid in advance at ending balance by prepayment object
In RMB
Proportion in total ending balance of accounts paid in
Name Ending balance
advance (%)
Daye Special Steel Co., Ltd. 8,795,198.48 6.91
Shenzhen Jinminjiang Intelligent Equipment Co., Ltd. 8,400,000.00 6.60
CITIC Taifu Steel Trading Co., Ltd 8,265,632.84 6.49
Robert Bosch Company 7,106,094.82 5.58
State Grid Jiangsu Electric Power Co., Ltd, Wuxi Branch 6,427,331.39 5.05
Total 38,994,257.53 30.63
Does the Company need to comply with disclosure requirements in the real estate industry?
No
(1) Category of inventory
In RMB
Ending balance Opening balance
Impairment
Impairment provision provision for
Item for inventory or inventory or
Book balance impairment provision Book value Book balance impairment Book value
for contract provision for
performance costs contract performance
costs
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Raw material 590,691,574.70 101,646,009.80 489,045,564.90 583,093,953.74 100,756,472.59 482,337,481.15
Goods in
process
Finished goods 1,698,989,315.86 130,054,595.92 1,568,934,719.94 1,579,852,880.89 131,709,756.97 1,448,143,123.92
Total 2,894,441,636.68 264,529,397.07 2,629,912,239.61 2,721,399,573.12 263,264,584.22 2,458,134,988.90
(2) Data resource recognized as inventory
Nil
(3) Impairment provision for inventory and impairment provision for contract performance costs
In RMB
Current increase Current decrease
Item Opening balance Ending balance
Accrued Other Reversed or written off Other
Raw material 100,756,472.59 20,062,907.93 -1,061,647.11 18,111,723.61 101,646,009.80
Goods in process 30,798,354.66 6,761,691.90 -798,583.93 3,932,671.28 32,828,791.35
Finished goods 131,709,756.97 47,828,310.12 -322,262.17 49,161,209.00 130,054,595.92
Total 263,264,584.22 74,652,909.95 -2,182,493.21 71,205,603.89 264,529,397.07
①The net realizable value of inventory refers to the amount obtained by deducting the estimated costs to be incurred until
completion, estimated selling expenses, and relevant taxes and fees from the estimated selling price of the inventory in the ordinary
course of business.
②Accrual basis of impairment provision for inventory:
Accrual basis of impairment provision Specific basis for determining net realizable value
Item
for inventory
It is determined on the basis of the amount obtained by deducting the
For materials used in producing finished
estimated costs to be incurred until completion, estimated selling
Stock materials goods for sale, their net realizable value
expenses, and relevant taxes and fees from the estimated selling price
is lower than their carrying value.
of the finished goods produced.
It is determined on the basis of the amount obtained by deducting the
For goods in process used in producing
Goods in estimated costs to be incurred until completion, estimated selling
process finished goods for sale, its net realizable
expenses, and relevant taxes and fees from the estimated selling price
value is lower than its carrying value.
of the finished goods produced.
It is determined on the basis of the amount obtained by deducting
Its net realizable value is lower than its
Finished goods various taxes and fees to be borne in the sales process from the
carrying value.
estimated selling price.
③Reason for carrying forward impairment provision for inventory:
Item Reason for reversing impairment provision for inventory
Stock materials Used in production in the current period, and the finished goods produced have been sold.
Goods in After the goods in process was completed in the current period, the corresponding finished goods were sold in the
process current period.
Finished goods Have been sold in report period
(4) Explanation on capitalization of borrowing costs in ending balance of inventory
Nil
(5) Explanation on the current amortization amount of contract performance cost
Nil
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
In RMB
Item Ending balance Opening balance
Other non-current assets due within one year 790,255,397.26 689,033,205.47
Total 790,255,397.26 689,033,205.47
Note: Principal of large-denomination certificates of deposit and accrued interest thereof that are due for redemption within one year.
(1) Credit investment maturing within one year
□Applicable ?Not applicable
(2) Other credit investment maturing within one year
□Applicable ?Not applicable
In RMB
Item Ending balance Opening balance
Receivable export tax rebates 6,691,938.55 7,369,802.15
VAT refund receivable 664,690.82 2,489,909.34
Prepaid taxes and VAT retained 203,311,514.98 171,745,232.56
Input tax to be deducted and certification 2,528,483.82 14,674,947.65
Deferred and prepaid expenses 12,692,688.30 15,244,244.74
Small appliances and other physical goods 20,994,032.54 42,786,744.82
Other 2,876,781.00 6,425,755.18
Less: Impairment provision for other current assets 122,887,023.61 122,887,023.61
Total 126,873,106.40 137,849,612.83
In RMB
Reasons for
Accumulated Accumulated
designating fair
Gains Losses gains losses Dividends
value
recognized in recognized in recognized in recognized in income
measurement
Beginning other other other other recognized
Item Ending balance with changes
balance comprehensive comprehensive comprehensive comprehensive in this
recognized in
income for the income for the income at the income at the period
other
current period current period end of this end of this
comprehensive
period period
income
Wuxi
Non-tradable
Xichan
Microchip
investment
Co., Ltd.
Non-tradable
Autolink 371,348,000.00 371,348,000.00 equity instrument
investment
Non-tradable
Other 85,048,000.00 85,048,000.00 equity instrument
investment
Total 1,049,138,690.00 1,049,138,690.00
Whether there is other equity instrument investment derecognized in current period or not: Nil
Sub-item disclosure of non-tradable equity instrument investments in the current period
In RMB
Amount of other
Reasons for designating fair Reasons for other
Dividends comprehensive
Accumulated Accumulated value measurement with comprehensive income
Item income income carried
income loss changes recognized in other carried forward to
recognized forward to retained
comprehensive income retained earnings
earnings
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Wuxi Xichan Non-tradable equity
NA
Microchip Co., Ltd. instrument investment
Non-tradable equity
Autolink NA
instrument investment
Non-tradable equity
Other NA
instrument investment
In RMB
Current changes (+/ -)
Other
Opening Cash Impair Ending
Opening Invest Investment comprehe Foreign Ending
Investe balance of Invest Other dividends or ment balance of
balance (book ment gains/losses nsive currency balance (book
d entity impairment ment equity profit provisi impairment
value) decreas recognized income statement value)
provision increas change announced to on provision
e under equity adjustmen translation
e issued accrued
t
I. Joint venture
II. Associated enterprise
WFEC
RBCD
Zhongli
an 2,085,881,28 268,119,590 340,000,000. 2,014,000,88
Electro
nics
WFPM 74,650.39
Changc
hun 8,482,208.91 26,634.56 8,508,843.47
Xuyang
Precors 8,998,648. 8,486,812.5
GmbH 511,836.
Lezhuo 98,874,762.7 83,403,858.0
Bowei 15,470,904.
WuXi -
Zhuow 3,359,507.1
ei 2 8 3
HySTe 138,865,0 130,975,2
ch 7,889,77
Subtota 7,299,370,0 147,863,7 645,746,9 1,259,16 2,123,848,6 5,822,527,4 139,462,0
l 8,401,60
Total 8,401,60
The recoverable amount is determined on the basis of the net amount after deducting disposal expenses from fair value
□Applicable ?Not applicable
The recoverable amount is determined on the basis of the present value of expected future cash flows
□Applicable ?Not applicable
Reasons for significant discrepancies between the aforementioned information and the information or external information used in
previous years' impairment test
Nil
Reasons for significant discrepancies between the information used in the company's previous annual impairment tests and the
actual situation of the current year
Nil
Other explanation:
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Nil
In RMB
Item Ending balance Opening balance
Financial assets classified as those measured at fair value
with changes recognized in current profits and losses
Include: Investments in other debt instruments and
equity instruments held for more than one year
Total 750,257,936.26 751,258,396.69
(1) Investment real estate measured at cost
? Applicable □ Not applicable
In RMB
House and Construction in
Item Land use right Total
Building progress
I. Original book value
(1) Outsourcing
(2) Inventory\fixed
assets\construction in process
transfer-in
(3) Increased by combination
(1) Disposal
(2) Other transfer-out
II. Accumulated depreciation and
accumulated amortization
(1) Accrued or amortization 2,067,627.04 2,067,627.04
(1) Disposal
(2) Other transfer-out
III. Impairment provision
(1) Accrued
(1) Disposal
(2) Other transfer-out
IV. Book value
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
The recoverable amount is determined on the basis of the net amount after deducting disposal expenses from fair value
□Applicable ?Not applicable
The recoverable amount is determined on the basis of the present value of expected future cash flows
□Applicable ?Not applicable
Reasons for significant discrepancies between the aforementioned information and the information or external information used in
previous years' impairment test
Nil
Reasons for significant discrepancies between the information used in the company's previous annual impairment tests and the
actual situation of the current year
Nil
Other explanation:
Nil
(2) Investment real estate measured at fair value
□ Applicable ? Not applicable
(3) Converted into investment real estate measured at fair value
Nil
(4) Investment real estate without property certification held
In RMB
Item Book value Reason for not obtaining the property rights certificate
WFJN’s property 52,182.36 Still in process of relevant property procedures
In RMB
Item Ending balance Opening balance
Fixed assets 4,464,761,205.57 4,582,924,701.55
Total 4,464,761,205.57 4,582,924,701.55
(1) Fixed assets
In RMB
House and Machinery Transportation Electronic and
Item Land Total
Building equipment equipment other equipment
I. Original book
value:
balance 59,872,087.82 1,544,968,861.56 33,820,602.68
increased
(1) Purchase 245,298.05 2,748,036.23 2,993,334.28
(2)
Construction in
progress 7,486,389.36 137,641,376.34 810,156.63 93,345,634.44 239,283,556.77
transfer-in
(3) Increased
by combination
(4) Other 6,768,886.68 6,768,886.68
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
decreased
(1) Disposal or
scrapping
foreign currency
-8,248,883.91 -36,705,897.60 -13,331.29 -26,103,890.00 -1,923,689.22 -72,995,692.02
financial
statement
II. Accumulated
depreciation
balance 752,117,179.30 27,222,884.40 1,100,796,900.64
increased
(1) Accrued 39,378,376.14 151,670,668.50 2,208,030.49 130,795,073.58 324,052,148.71
(2) Other 6,768,886.68 6,768,886.68
decreased
(1) Disposal or
scrapping 1,091,349.05 6,530,627.18 63,768.18 17,660,365.34 25,346,109.75
foreign currency
-4,031,090.65 -21,694,326.62 -7,540.48 -20,421,311.72 -46,154,269.47
financial
statement
III. Impairment
provision
balance
increased
(1) Accrued
decreased
(1) Disposal or
scrapping
foreign currency
-925,655.32 -4,461,893.53 -2,358.19 -753,508.72 -956,382.18 -7,099,797.94
financial
statement
IV. Book value
value 30,940,301.10 367,573,151.04 16,039,029.95
value 32,499,817.24 422,647,653.46 17,006,336.99
(2) Temporarily idle fixed assets
Nil
(3) Fixed assets acquired by operating lease
In RMB
Item Ending book value
Housing and building 14,465,956.72
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
(4) Fixed assets without property certification held
In RMB
Item Book value Reasons for without the property certification
WFCA - Factory and office buildings 23,881,384.34 Still in process of relevant property procedures
WFJN - Factory and office buildings 140,629.85 Still in process of relevant property procedures
(5) Impairment test of fixed assets
□Applicable ?Not applicable
(6) Disposal of fixed assets
Other explanation: Nil
In RMB
Item Ending balance Opening balance
Construction in progress 425,065,311.64 280,431,452.37
Total 425,065,311.64 280,431,452.37
(1) Construction in progress
In RMB
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Hydrogen Energy
Industrial Park 1,969,973.12 1,969,973.12 1,044,510.86 1,044,510.86
Construction Project
Weifu (Huishan)
Intelligent Manufacturing 29,919,390.82 29,919,390.82 7,573,068.22 7,573,068.22
Industrial Park Phase II
Production line and
equipment under 352,546,124.03
installation and debugging 0 57 59 0 29
Software and system
under installation and 8,389,483.76 8,389,483.76 8,335,003.57 8,335,003.57
debugging
Sporadic construction and
installation projects 32,240,339.91 32,240,339.91 11,696,411.43 11,696,411.43
Total 425,065,311.64
(2) Changes of major construction in progress
In RMB
Accum
Fixed Proport
Other ulated Including:
assets ion of Interest
decrea amount interest Source
Opening Current transfer Ending project capitalizati
Item Budget sed in Progress of capitalized of
balance increased -in in balance invest on rate of
the interest amount of funds
the ment in the year
Period capitali the year
Period budget
zation
Hydrogen
Energy 550,00 Complete
Industrial Park 0,000.0 0.36% the
Construction 0 design
Project
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Weifu
(Huishan)
Intelligent 7,573,06 22,346,3 29,919,390. Owned
Manufacturing 8.22 22.60 82 funds
Industrial Park
Phase II
During the
installation and
commissioning 288,205, 336,576, 233,734 4,658, 386,388,30 Owned
of production 125.59 718.24 ,548.38 986.85 8.60 funds
lines and
equipment
During the
installation and
commissioning
of the software
and the system
Total 0,000.0
(3) Impairment provision of construction in progress
In RMB
Opening Current Conversion of foreign Current Ending
Item Reason for withdrawal
balance increase currency financial statement decrease balance
Equipment
Equipment installation 36,422,667.30 -1,107,453.01 1,473,029.72 33,842,184.57 commissioning failed to
pass acceptance
Total 36,422,667.30 -1,107,453.01 1,473,029.72 33,842,184.57 --
(4) Impairment test of construction in progress
□Applicable ?Not applicable
(5) Engineering material
Other explanation: Nil
(1) Right-of-use assets
In RMB
Item Building Mechanical equipment Total
I. Original book value:
(1) Increased lease 8,031,829.00 2,901,327.15 10,933,156.15
(1) Disposal 261,689.68 7,615,131.61 7,876,821.29
currency financial statement -3,223,641.41 -1,217,229.09 -4,440,870.50
II. Accumulated depreciation
(1) Accrued 13,726,894.23 2,481,302.75 16,208,196.98
(1) Disposal
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
(2) Other 7,303,834.84 7,303,834.84
currency financial statement -1,093,231.73 -870,809.64 -1,964,041.37
III. Impairment provision
(1) Accrued
(1) Disposal
-208,509.91 -208,509.91
currency financial statement
IV. Book value
(2) Impairment test of right-of-use assets
□Applicable ?Not applicable
(1) Intangible assets
In RMB
Trademark Patent and non-
Non-patent Computer
Item Land use right Patent and trademark patent Total
technology software
license technology
I. Original book value
(1) Purchase 495,075.72 409,345.27 904,420.99
(2) Internal R&D
(3) Increased by
combination
(4) Transfer from
construction in progress 870,000.00 5,777,197.27 6,647,197.27
(1) Disposal or scrapping
currency financial statement -1,254,770.79 -13,692,089.00 -14,946,859.79
II. Accumulated amortization
(1) Accrued 4,623,058.79 13,717,866.48 11,765,270.33 30,106,195.60
(1) Disposal
currency financial statement -1,019,838.77 -8,515,733.61 -9,535,572.38
III. Impairment provision
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
(1) Accrued 409,345.20 409,345.20
(1) Disposal
-27,903.55 -4,443.90 -32,347.45
currency financial statement
IV. Book value
The proportion of intangible assets formed through internal R&D of the company to the balance of intangible assets at the end of
this period: Nil
(2) Data resource recognized as intangible assets
Nil
(3) Land use right without property certification held
Nil
(4) Impairment test of intangible assets
□Applicable ?Not applicable
(1) Original book value of goodwill
In RMB
Name of invested Current increased Current decreased
Opening
entities or matters Formed by business Translation of foreign Ending balance
balance Disposal
forming goodwill combination currency statements
Merged with WFTT 1,784,086.79 1,784,086.79
Merged with Borit 260,355,338.82 -14,792,379.93 245,562,958.89
Total 262,139,425.61 -14,792,379.93 247,347,045.68
(2) Impairment provision for goodwill
In RMB
Current
Current increased
Name of invested entities or Opening decreased
Ending balance
matters forming goodwill balance Translation of foreign
Accrued Disposal
currency statements
Merged with WFTT
Merged with Borit 260,355,338.82 -14,792,379.93 245,562,958.89
Total 260,355,338.82 -14,792,379.93 245,562,958.89
(3) Related information of asset group or asset group portfolio of goodwill
Is consistent
Name Component and basis for asset group or asset group portfolio Operation branch and basis with previous
year (Y/N)?
Long term assets related to the merger of WFTT’s goodwill; Automotive intake system
The management made it clear that this asset group will be product division; Category
WFTT Y
used and operated independently of other assets, and will of asset group output
generate cash inflows independently products
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Long term assets related to the merger of Borit’s goodwill; The
Other automotive parts
management made it clear that this asset group will be used and
Borit divisions; Category of asset Y
operated independently of other assets, and will generate cash
group output products
inflows independently
Changes in asset group or asset group portfolio: Nil
Other explanation: Nil
(4) Specific method of determining recoverable amount
For asset groups with indicators of impairment, the Company estimates the recoverable amount of such asset groups as the higher of
the net amount of their fair value less disposal costs and the present value of the estimated future net cash flows; for asset groups
without indicators of impairment, the Company determines the recoverable amount of such asset groups based on the present value
of the estimated future net cash flows of the asset groups.
The recoverable amount is determined on the basis of the net amount after deducting disposal expenses from the fair value.
□Applicable ?Not applicable
The recoverable amount is determined on the basis of the present value of expected future cash flows
□Applicable ?Not applicable
Reasons for significant discrepancies between the aforementioned information and the information or external information used in
previous years’ impairment test
Nil
Reasons for significant discrepancies between the information used in the company's previous annual impairment tests and the actual
situation of the current year
Nil
(5) Completion of performance commitments and corresponding impairment of goodwill
When goodwill is formed, there is a performance commitment and the report period or the previous period is within the
performance commitment period
□Applicable ?Not applicable
In RMB
Item Opening balance Current increase Amortized in the Period Other decrease Ending balance
Decoration expense, etc. 57,396,940.60 7,938,283.26 4,664,118.47 2,973,708.27 57,697,397.12
Total 57,396,940.60 7,938,283.26 4,664,118.47 2,973,708.27 57,697,397.12
(1) Deferred income tax assets not offset
In RMB
Ending balance Opening balance
Item Deductible temporary Deferred income Deductible temporary Deferred income
difference tax assets difference tax assets
Unrealized profit from insider
transactions
Deductible loss 1,144,458,268.67 175,837,020.82 1,231,507,412.99 188,106,484.27
Bad debts reserve 47,395,067.54 7,250,044.62 44,152,193.79 6,905,968.05
Impairment provision for
inventory
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Impairment provision of fixed
assets 94,293,409.16 16,161,693.36 95,191,249.93 16,607,584.61
Impairment provision of
construction in progress 184,615.38 27,692.31 184,615.38 27,692.31
Impairment provision of
intangible assets
Deferred income 107,679,517.47 16,151,927.62 116,439,925.84 17,563,299.19
Payable salary, accrued expenses
etc. 838,326,785.44 151,399,664.16 954,373,383.21 149,574,911.28
Depreciation assets, amortization
difference 22,494,554.11 3,377,731.69 24,717,114.06 3,711,115.68
Impairment provision of other
non-current assets 146,615,749.63 21,992,362.44 146,615,749.63 21,992,362.44
Lease liabilities 64,375,465.15 13,783,681.24 77,754,490.02 16,628,519.52
Changes in fair value 10,651,202.41 1,597,680.36 40,671,644.15 6,100,746.63
Total 2,781,853,192.09 456,656,559.01 3,033,405,120.07 476,449,063.21
(2) Deferred income tax liabilities not offset
In RMB
Ending balance Opening balance
Item Taxable temporary Deferred income Taxable temporary Deferred income
differences tax liabilities differences tax liabilities
The difference between the fair value
and taxation basis of WFTT assets in a 8,555,091.55 1,283,263.71 8,788,973.20 1,318,345.98
merger not under the same control
The difference between the fair value
and taxation basis of IRD assets in a 28,468,548.65 6,263,080.70 35,509,947.59 7,812,188.47
merger not under the same control
The difference between the fair value
and taxation basis of Borit assets in a 11,652,242.25 2,913,060.51 13,838,768.77 3,459,692.13
merger not under the same control
The difference between the fair value
and taxation basis of VH business in a 39,475,310.05 9,474,074.40 44,901,017.14 10,776,244.06
merger not under the same control
Change in fair value of transaction
financial asset
Accelerated depreciation of fixed assets 919,227,177.68 143,243,793.81 870,317,608.44 135,932,828.36
Right-of-use assets 61,652,545.61 13,334,224.74 76,082,085.49 16,266,866.76
Others 52,592,465.76 7,888,869.87 64,198,291.94 10,983,558.81
Total 1,167,031,237.11 191,349,486.83 1,158,368,480.38 193,568,711.14
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
Ending balance of Trade-off between the Opening balance of
Trade-off between the
deferred income tax deferred income tax deferred income tax
Item deferred income tax
assets or liabilities after assets and liabilities at assets or liabilities after
assets and liabilities
off-set period-begin off-set
Deferred income tax
assets
Deferred income tax
liabilities 168,588,956.71 22,760,530.12 166,550,052.70 27,018,658.45
(4) Details of unrecognized deferred income tax assets
In RMB
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Item Ending balance Opening balance
Bad debts reserve 1,988,153,793.86 1,988,739,197.71
Impairment provision for inventory 44,646,733.72 49,661,555.47
Loss from subsidiary 1,368,517,645.33 1,350,265,857.24
Impairment provision of long-term equity investment 139,462,093.71 147,863,703.22
Impairment provision of fixed assets 118,473,486.30 126,452,464.28
Impairment provision of construction in progress 33,657,569.19 36,238,051.92
Impairment provision of intangible assets 867,573.49 490,575.74
Other equity instrument investment 12,600,000.00 12,600,000.00
Impairment provision of other current assets 122,887,023.61 122,887,023.61
Wages payable, withholding expense, etc. 16,914,618.10 42,545,482.35
Total 3,846,180,537.31 3,877,743,911.54
(5) The deductible losses of unrecognized deferred income tax assets will expire in following years
In RMB
Maturity year Ending amount Opening amount Note
No expiration date 691,380,963.27 739,261,678.38 The overseas subsidiary incurred operating losses.
Total 1,368,517,645.33 1,350,265,857.24
In RMB
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Contract acquisition
cost 3,305,297.98 3,305,297.98 3,625,624.88 3,625,624.88
Contract fulfillment
costs
Engineering
equipment paid in 196,037,318.39 8,194,161.97 187,843,156.42 192,938,074.50 8,456,323.15 184,481,751.35
advance
Large deposit
certificates with a
maturity of more 21,027,178.08 21,027,178.08 20,769,315.07 20,769,315.07
than one year
Financial products 146,615,749.63 146,615,749.63 146,615,749.63 146,615,749.63
Total 409,214,769.55 154,809,911.60 254,404,857.95 404,311,386.83 155,072,072.78 249,239,314.05
In RMB
Ending Opening
Item
Restriction Restriction Restriction
Book balance Book value Restriction reason Book balance Book value
type type reason
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Monetary Cash Notes paid for Cash Notes paid for
funds deposit bank acceptance deposit bank acceptance
Monetary Cash IRD performance Cash IRD performance
funds deposit bond deposit bond
Monetary Cash Letter of Cash Letter of
funds deposit guarantee deposit deposit guarantee deposit
Monetary Cash
funds deposit
Monetary Cash Cash deposit for Cash Cash deposit for
funds deposit Mastercard deposit Mastercard
Secured
Secured financing
financing using
using margin
Monetary Cash Cash margin deposits
funds deposit deposit and interest from
interest from bank
bank loans as
loans as collateral
collateral
Receivables Notes pledge for Notes pledge for
financing bank acceptance bank acceptance
Accounts Accounts
Accounts
Pledged Receivable Pledge 10,000,000.00 10,000,000.00 Pledged Receivable
receivable
Financing Pledge Financing
Funds frozen by
Funds frozen by
the court due to
the court due to
litigation in a
litigation in a
corporate
corporate
structured
structured deposit
deposit account
account opened by
opened by the
Trading the company at a
company at a
financial 10,150,000.00 10,150,000.00 Frozen bank, with a 10,150,000.00 10,150,000.00 Frozen
bank, with a
assets principal balance
principal balance
of RMB 100
of RMB 100
million, of which
million, of which
RMB 10.15
RMB 10.15
million is
million is
restricted due to
restricted due to
the freeze.
the freeze.
Total 419,934,891.37 419,934,891.37 517,965,162.02 517,965,162.02
(1) Category of short-term borrowings
In RMB
Item Ending balance Opening balance
Mortgage loan 29,530,159.13 59,426,508.10
Credit loan 595,716,915.32 504,667,506.68
Accrued interest 860,351.74 669,795.45
Total 626,107,426.19 564,763,810.23
Explanation on short-term borrowings: Nil
(2) Overdue and unpaid short-term loans
Other explanation: Nil
In RMB
Category Ending balance Opening balance
Bank acceptance bill 2,629,903,122.45 1,913,336,503.36
Total 2,629,903,122.45 1,913,336,503.36
At the end of the current period, the total amount of matured but unpaid notes payable is 0.00 yuan.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
(1) Accounts payable
In RMB
Item Ending balance Opening balance
Operating funds payable for labor or goods 4,053,957,202.25 4,195,992,940.45
Accounts payable for engineering equipment 183,876,273.44 179,884,154.40
Total 4,237,833,475.69 4,375,877,094.85
(2) Important accounts payable with aging over 1 year or overdue
Other explanation: Nil
In RMB
Item Ending balance Opening balance
Dividends payable 676,749,985.10 2,937,600.00
Other accounts payable 64,568,590.33 62,369,120.22
Total 741,318,575.43 65,306,720.22
(1) Interest payable
Nil
(2) Dividends payable
Item Ending balance Opening balance
Common stock dividends 676,749,985.10
Dividends payable by subsidiary 2,937,600.00
Total 676,749,985.10 2,937,600.00
(3) Other accounts payable
In RMB
Item Ending balance Opening balance
Deposit and margin 33,600,307.40 31,307,210.21
Social insurance and reserves funds withholding 2,096,773.26 2,707,549.19
Intercourse funds of entities 25,512,145.98 23,526,000.00
Other 3,359,363.69 4,828,360.82
Total 64,568,590.33 62,369,120.22
In RMB
Item Ending balance Reasons for not repaying or carry-over
Ningbo Jiangbei High-tech Industrial Park
Development and Construction Co., Ltd
Total 19,026,000.00
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
(1) Accounts received in advance
In RMB
Item Ending balance Opening balance
Rent received in advance 4,013,931.36
Total 4,013,931.36
(2) Significant accounts receivable in advance with aging over 1 year or overdue
Other explanation: Nil
In RMB
Item Ending balance Opening balance
Advance payment for goods 86,839,084.88 63,010,303.58
Total 86,839,084.88 63,010,303.58
(1) Wage payable
In RMB
Item Opening balance Current increased Current decreased Ending balance
I. Short-term compensation 301,650,706.85 736,986,040.13 845,840,053.34 192,796,693.64
II. Post-employment welfare-
defined contribution plans
III. Dismissed welfare 9,779,785.27 1,873,600.46 9,374,135.07 2,279,250.66
IV. Other welfare within one year 20,000,000.00 9,182,178.34 10,817,821.66
V. Other short-term welfare-
Housing subsidies, employee 18,174,318.76 1,821,735.00 16,352,583.76
benefits and welfare funds
Total 364,256,169.69 858,040,311.35 991,561,580.91 230,734,900.13
(2) Short-term compensation
In RMB
Item Opening balance Current increased Current decreased Ending balance
subsidies
Including: Medical insurance 258,035.24 31,432,317.90 31,415,521.99 274,831.15
Work injury insurance 70,001.92 4,053,929.97 4,078,052.28 45,879.61
Maternity insurance 10,202.60 3,399,475.81 3,397,630.74 12,047.67
personnel education expense 9,929,301.27 9,196,555.76 8,818,611.23 10,307,245.80
social security 4,506,638.03 6,216,561.45 9,492,691.73 1,230,507.75
Total 301,650,706.85 736,986,040.13 845,840,053.34 192,796,693.64
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
(3) Define contribution plans
In RMB
Item Opening balance Current increased Current decreased Ending balance
Total 14,651,358.81 119,180,670.76 125,343,479.16 8,488,550.41
Other explanation:
Post-employment welfare - defined contribution plans:
The Company participates in the pension insurance and unemployment insurance plans established by government authorities by
laws, a certain percentage of the social security fee regulated by the government will pay by the Company monthly for the plans.
Other than the aforesaid monthly contribution, the Company takes no further payment obligation. The corresponding expenditures
shall be recognized in the current period's profit or loss or the cost of relevant assets when incurred. For details of the enterprise
annuity plan, please refer to Note XVIII.4 "Annuity Plan".
In RMB
Item Ending balance Opening balance
Value-added tax 18,587,561.42 23,728,130.97
Corporation income tax 29,472,124.42 26,338,033.58
Individual income tax 693,939.34 6,766,820.73
City maintaining & construction tax 1,276,691.71 1,556,316.59
Educational surtax 917,751.91 1,146,327.89
Property tax 6,604,729.20 7,056,699.71
Land use tax 1,446,844.05 1,408,216.46
Stamp tax 3,044,452.36 2,887,888.46
Others 150,308.48 366,601.08
Total 62,194,402.89 71,255,035.47
In RMB
Item Ending balance Opening balance
Long-term borrowings due within one year 42,300.00 100,104,542.78
Lease payments due within one year 28,916,378.66 30,052,680.37
Total 28,958,678.66 130,157,223.15
In RMB
Item Ending balance Opening balance
Rebate payable 229,002,878.46 231,984,909.31
Pending sales tax 7,084,005.99 7,722,417.64
Endorsed but unexpired commercial acceptance bills 6,228,142.15
Total 236,086,884.45 245,935,469.10
Changes in short-term bonds payable: Nil
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
(1) By category
In RMB
Item Ending balance Opening balance
Credit loan 105,885,651.11 187,404,542.78
Less: long-term borrowings maturing within one year 42,300.00 100,104,542.78
Total 105,843,351.11 87,300,000.00
(1) Bonds payable
Item Ending balance Opening balance
Bonds payable 505,335,616.44 500,624,657.53
Total 505,335,616.44 500,624,657.53
(2) Changed in the bonds payable (excluding other financial instruments such as preferred shares and
perpetual debt classified as financial liabilities)
In RMB
Wheth
Repay
Openin Issue Premium er a
Bond Issue Accrued ment in
Bond Face Coupo Issue g in discount Ending breach
maturit amoun interest at the
name value n rate date balanc current amortizat balance of
y t face value current
e period ion contrac
period
t
Weifu 0,000. 1.90% 3 years 0,000. 4,657. N
K1 00 00 53
Total 0,000. 4,657.
(3) Convertible Corporate Bond Description
Nil
(4) Description of other financial instruments classified as financial liabilities
Nil
In RMB
Item Ending balance Opening balance
Lease payments 108,093,017.78 110,509,867.86
Financing expense not recognized -10,897,580.16 -7,083,414.26
Minus: lease liabilities maturing within one year 28,916,378.66 30,052,680.37
Total 68,279,058.96 73,373,773.23
In RMB
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Item Ending balance Opening balance
Long-term accounts payable 7,780,000.00 7,780,000.00
Total 7,780,000.00 7,780,000.00
(1) By nature
In RMB
Item Ending balance Opening balance
Hi-tech Branch of Nanjing Finance Bureau (note ①) Financial support funds (2011) 5,040,000.00 5,040,000.00
Hi-tech Branch of Nanjing Finance Bureau (note ②) Financial support funds (2013) 2,740,000.00 2,740,000.00
Total 7,780,000.00 7,780,000.00
Other explanation:
Note ①: To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone, financial supporting capital is
allotted by High-tech branch of Finance Bureau of Nanjing for supporting use, the term is from December 28, 2011 to December 28,
Note ②: To encourage WFJN to enter Nanjing High-tech Technology Industry Development Zone, financial supporting capital is
allotted by High-tech branch of Finance Bureau of Nanjing for supporting use, the term is from December 18, 2013 to December 18,
(2) Special accounts payable
Nil
(1) Long-term wages payable
In RMB
Item Ending balance Opening balance
I.Post-employment benefits - Defined benefit plan net liabilities 16,906,129.35 18,028,501.68
II. Dismiss welfare 6,680,226.47 7,606,269.58
III. Other long-term welfare - incentive fund balance 54,819,699.51 54,819,699.51
Total 78,406,055.33 80,454,470.77
(2) Changes in defined benefit plan
Present value of defined benefit plan
In RMB
Item Current period Last period
I. Opening balance 18,028,501.68 19,879,635.58
II. Cost of defined benefit plan booked into current profit and loss 292,592.21 620,384.67
III. Cost of defined benefit plan booked into other comprehensive income
IV. Other changes -1,414,964.54 403,391.12
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
V. Ending balance 16,906,129.35 20,903,411.37
In RMB
Item Ending balance Opening balance Formation cause
Pending dispute and litigation 500,554.28 530,742.49
Product quality assurance 112,862,608.67 104,609,340.95
Environmental protection commitment 297,479.34 315,420.20
Total 113,660,642.29 105,455,503.64
Other explanations, including important assumptions and estimation explanations related to significant provisions:
In accordance with the relevant provisions of "Interpretation No. 18 on Enterprise Accounting Standards" regarding "quality
assurance warranties that do not constitute a separate performance obligation," the company uniformly accounts for and discloses
estimated product warranty costs under the "Provisions" item.
In RMB
Opening Current Current Translation of foreign forming
Item Ending balance
balance increased decreased currency statements reason
Government grant 128,942,021.14 12,993,948.09 13,373,411.61 -911,081.11 127,651,476.51
Total 128,942,021.14 12,993,948.09 13,373,411.61 -911,081.11 127,651,476.51
In RMB
Change during the year (+/-)
Opening balance New Shares Ending balance
Bonus
shares transferred from Other Subtotal
share
issued capital reserve
Total
shares
In RMB
Item Opening balance Current increase Current decrease Ending balance
Capital premium (Share capital premium) 2,619,353,129.48 2,619,353,129.48
Other capital reserve 67,151,006.78 1,259,169.68 68,410,176.46
Total 2,686,504,136.26 1,259,169.68 2,687,763,305.94
Other explanation, including changes in the period and reasons for changes;
The increase of 1,259,169.68 yuan in other capital reserves for this period represents the amount attributable to the company based
on its equity interest in changes in other comprehensive income of the associate enterprise.
In RMB
Current period
Opening Account Less: written in Less: written in Less: Attributable to Attribut Ending
Item before other other inco parent able to
balance balance
income tax comprehensive comprehensive me company after minority
in the year income in income in tax tax sharehol
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
previous period previous period expe ders
and carried and carried nse after tax
forward to forward to
current retained earnings
gains/losses in current period
I. Other comprehensive
income that cannot be -
-1,024,077.45
reclassified to 1,024,077.45
gains/losses
Including: Remeasure
changes in defined -1,040,086.25
benefit plans
Other comprehensive
income that cannot be
transferred to 16,008.80 16,008.80
gains/losses under
equity method
II. Other comprehensive
income items which will - -
be reclassified 56,057,604. 56,057,604.1
subsequently to
gains/losses
Conversion difference - -
of foreign currency 56,057,604. 56,057,604.1
financial statement
Total other - -
comprehensive income 122,398,098. 66,340,494.4
In RMB
Item Opening balance Current increase Current decrease Ending balance
Work safety expense 8,619,634.17 16,118,837.69 17,199,019.10 7,539,452.76
Total 8,619,634.17 16,118,837.69 17,199,019.10 7,539,452.76
Other explanation, including changes and reasons for changes:
(1) Explanation on the withdrawing of special reserves (work safety expense): According to the Administrative Measures on the
Withdrawing and Use of Enterprise Safety Production Expenses (CZ [2022] No.136) jointly issued by the Ministry of Finance and
the State Administration of Work Safety, in the current period, the Company adopted excess retreat method for quarterly withdrawal
by taking the actual operating income of the previous period as the withdrawing basis.
(2) Among the above work safety expense, including the work safety expense accrued by the Company in line with regulations and
the parts attributed to shareholders of the Company in work safety expense accrued by subsidiary in line with regulations.
In RMB
Item Opening balance Current increased Current decreased Ending balance
Statutory surplus reserves 510,100,496.00 510,100,496.00
Total 510,100,496.00 510,100,496.00
Other explanation, including changes and reasons for changes: Nil
In RMB
Item Current period Last period
Retained profits at the end of last year before adjustment 15,623,144,555.11 15,523,124,882.77
Retained profits at the beginning of the year after adjustment 15,623,144,555.11 15,523,124,882.77
Add: net profits attributable to owners of patent company of this period 836,415,872.45 1,068,167,498.05
Other 1,004,237.29
Less: Common stock dividends payable 676,749,985.10 969,152,063.00
Retained profit at period-end 15,782,810,442.46 15,623,144,555.11
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Details about adjusting the retained profits at the beginning of the period:
retained profits at the beginning of the period amounting to 0 yuan.
In RMB
Current period Last period
Item
Income Cost Income Cost
Main operating 6,441,837,362.16 5,348,126,771.42 5,664,265,047.26 4,727,893,633.72
Other business 135,223,051.76 59,804,712.88 96,153,585.85 37,329,159.55
Total 6,577,060,413.92 5,407,931,484.30 5,760,418,633.11 4,765,222,793.27
Breakdown information of operating income and operating cost:
In RMB
Energy and Power Automotive Intelligence Industrial Sysyem + AI Total
Type of contract Operating Operating Operating Operating Operating Operating Operating Operating
income cost income cost income cost income cost
Business type
Including:
Primary business
Including: recognize at a certain point in 5,607,181,494. 4,620,095 757,860,7 642,203,2 76,795,07 85,828,17 6,441,837 5,348,126
time 67 ,327.27 95.16 65.49 2.33 8.66 ,362.16 ,771.42
Recognized within a certain period of
time
Other business
Including: recognize at a certain point in 120,299,268.6 50,799,95 238,583.8 2,709,791 120,537,8 53,509,74
time 7 8.33 7 .29 52.54 9.62
Recognized within a certain period of
time
Lease income 14,685,199.22
.26 9.22 .26
Total
In RMB
Item Current period Last Period
City maintaining & construction tax 9,347,012.28 7,020,427.71
Educational surtax 6,714,620.05 5,025,514.39
Property tax 12,500,165.74 12,450,878.16
Land use tax 3,260,371.37 2,664,542.78
Vehicle use tax 11,396.77 9,789.10
Stamp duty 5,302,294.96 4,264,416.03
Other taxes 570,732.31 390,464.52
Total 37,706,593.48 31,826,032.69
In RMB
Item Current period Last period
Salary and wage related expense 206,477,937.38 204,152,165.94
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Depreciation charger and long-term
assets amortization 71,018,393.50 71,505,562.18
Consumption of office materials and
business travel charge 12,442,118.51 13,749,617.83
Other 84,215,269.06 91,866,536.05
Total 374,153,718.45 381,273,882.00
In RMB
Item Current period Last Period
Salary and wage related expense 37,039,872.41 44,704,795.75
Consumption of office materials and business travel charge 5,408,267.50 5,640,944.50
Warehouse charge 13,512,957.75 2,221,697.97
Business entertainment fee 6,317,746.54 3,830,951.97
Other 9,030,448.47 27,600,272.59
Total 71,309,292.67 83,998,662.78
In RMB
Item Current period Last period
Technology development expenditure 338,140,590.10 350,722,149.70
Total 338,140,590.10 350,722,149.70
In RMB
Item Current period Last period
Interest expenses 15,471,988.00 9,045,918.64
Discounting interest expense
Less: Interest income from deposits 21,956,678.73 26,681,031.13
Gains/losses from exchange 13,350,417.42 -19,703,453.00
Handling charges 1,990,185.82 2,265,521.40
Total 8,855,912.51 -35,073,044.09
In RMB
Sources of income generated Current period Last period
Government grants with routine operation activity concerned 22,496,762.21 33,077,846.97
VAT instant refund 15,574,306.09 42,098,842.88
Tax credit for overseas subsidiaries 719,979.40 277,977.10
Refund of individual income tax handling fee 872,261.35 678,611.32
Bebt restructuring 102,361.14
Total 39,765,670.19 76,133,278.27
In RMB
Sources Current period Last period
Fair value changes of tradable financial assets -65,717,427.94 27,874,369.01
Total -65,717,427.94 27,874,369.01
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
In RMB
Item Current period Last period
Income of long-term equity investment measured with equity method 650,544,226.48 537,786,063.13
Investment income from holding of tradable financial assets 20,378,914.57 8,904,917.47
Investment income from disposal of tradable financial assets 957,401.23
Income from debt restructuring -611,756.52 -90,729.00
Gains/losses recognized when financing of accounts receivable is terminated for discounting -2,059,856.41 -1,612,166.00
Total 668,251,528.12 545,945,486.83
In RMB
Item Current period Last period
Bad debt loss of accounts receivable -3,970,630.75 -491,957.86
Bad debt loss of other accounts receivable -85,532.93 -1,461,928.21
Total -4,056,163.68 -1,953,886.07
In RMB
Item Current period Last period
Total -75,062,255.15 -72,319,585.77
In RMB
Sources Current period Last period
Income from disposal of non-current assets 5,408,425.62 636,603.52
Losses from disposal of non-current assets -623,357.58 -2,678,147.48
Total 4,785,068.04 -2,041,543.96
In RMB
Amount reckoned into current
Item Current period Last period
non-recurring gains/losses
Payables that do not need to be paid 1,027,425.48 988,957.32 1,027,425.48
Liquidated damages and compensation income 100,700.50 1,590,079.15 100,700.50
Other 168,125.22 15,432.64 168,125.22
Total 1,296,251.20 2,594,469.11 1,296,251.20
In RMB
Amount reckoned into current
Item Current period Last period
non-recurring gains/losses
Donation 200,000.00
Non-current assets disposal losses 1,987,884.98 3,120,421.81 1,987,884.98
Including: loss on scrapping of fixed assets 1,987,884.98 3,120,421.81 1,987,884.98
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Penalty and breach of contract compensation
expenses 28,445.02 23,172.01 28,445.02
Other 59,660.74 1,115.02 59,660.74
Total 2,075,990.74 3,344,708.84 2,075,990.74
(1) Income tax expense
In RMB
Item Current period Last period
Payable tax in current period 53,334,122.20 33,995,641.69
Deferred tax in current period 6,621,696.75 8,193,965.24
Total 59,955,818.95 42,189,606.93
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item Current period
Total profit 906,149,502.45
Income tax measured at statutory/applicable tax rate 135,922,425.37
Impact by different tax rate applied by subsidies -3,188,668.23
Impact from adjusting the previous income tax -852,457.66
Impact by non-taxable revenue -95,258,998.71
Impact by the deductible losses of the un-recognized previous deferred income tax -7,907,005.07
The deductible temporary differences or deductible losses of the un-recognized
deferred income tax assets in the Period
Impact on additional deduction -8,103,654.45
Other 80,887.55
Income tax expense 59,955,818.95
See NotesVII, 43 “Other comprehensive income”.
(1) Cash received in relation to operation activities
Other cash received in related to operation activities
In RMB
Item Current period Last period
Interest income 7,681,346.44 8,107,660.40
Government grants 18,927,298.71 12,054,487.84
WFTR "platform trade" business cash inflow 4,563,634.00
Other 2,930,440.65 4,970,706.43
Total 34,102,719.80 25,132,854.67
Explanation on other cash received in relation to operation activities: Nil
Other cash paid in relation to operation activities
In RMB
Item Current period Last period
Cash cost 271,976,817.24 309,302,243.69
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Other 9,247,812.64 4,841,083.61
Total 281,224,629.88 314,143,327.30
Explanation on other cash paid in relation to operation activities: Nil
(2) Cash in related to investment activities
Nil
(3) Cash in related to financing activities
Other cash received in related to financing activities
Item Current period Last period
Recovery of bank loan security deposit 30,000,000.00
Total 30,000,000.00
Explanation on other cash received in relation to financing activities: Nil
Other cash paid in related to financing activities
In RMB
Item Current period Last period
Lease payments 16,363,660.31 23,042,522.75
Repurchase of A shares 100,005,328.00
Payment of minority shareholders' investment to subsidiary 9,768,483.58
Other 9,439.42
Total 26,132,143.89 123,057,290.17
Explanation on other cash paid in relation to financing activities: Nil
Changes in liabilities arising from financing activities
?Applicable Not applicable
(4) Explanation on cash flow listed at net amount
Nil
(5) Significant activities and financial impacts that do not involve current cash inflows and outflows but
affect the financial condition of the company or may affect the cash flow of the company in the future
Nil
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information Current period Last Period
Net profit 846,193,683.50 713,146,428.41
Add: Assets impairment provision 79,118,418.83 74,273,471.84
Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets 326,119,775.75 318,198,397.15
Depreciation of right-of-use assets 16,208,196.98 17,921,960.23
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Amortization of intangible assets 30,106,195.60 32,244,387.75
Amortization of long-term deferred expenses 4,664,118.47 3,595,375.61
Losses from disposal of fixed assets, intangible assets and other long-term assets (gains shall be filled in
with the sign of “-”) -4,785,068.04 2,041,543.96
Losses on scrapping of fixed assets (gains shall be filled in with the sign of “-”) 1,987,884.98 3,120,421.81
Gains/losses from changes in fair value(gains shall be filled in with the sign of “-”) 65,717,427.94 -27,874,369.01
Financial expenses (gains shall be filled in with the sign of “-”) 14,807,763.79 -25,308,408.52
Investment losses (gains shall be filled in with the sign of “-”) -670,923,141.05 -544,242,591.83
Decrease of deferred income tax asset (increase shall be filled in with the sign of “-”) 19,792,504.20 10,158,100.24
Increase of deferred income tax liability (decrease shall be filled in with the sign of “-”) -2,219,224.31 1,365,216.74
Decrease of inventory (increase shall be filled in with the sign of “-”) -179,373,413.52 226,450,506.94
Decrease of operating receivable accounts (increase shall be filled in with the sign of “-”) 129,034,219.44 -422,168,504.08
Increase of operating payable accounts (decrease shall be filled in with the sign of “-”) 259,596,956.81 107,694,431.99
Other -840,048.01 2,257,909.51
Net cash flows arising from operating activities 935,206,251.36 492,874,278.74
Debt-to-capital
Convertible bonds maturing within one year
Financing to lease fixed assets
Balance of cash at period end 2,018,655,500.41 2,205,802,925.80
Less: Balance of cash equivalent at year-begin 2,020,913,308.04 1,756,944,672.22
Add: Balance at year-end of cash equivalents
Less: Balance at year-begin of cash equivalents
Net increase of cash and cash equivalents -2,257,807.63 448,858,253.58
(2) Net cash payment for the acquisition of subsidiaries in the period
Nil
(3) Net cash received from the disposal of subsidiaries
Nil
(4) Components of cash and cash equivalent
In RMB
Item Ending balance Opening balance
I. Cash 2,018,655,500.41 2,020,913,308.04
Including: Cash on hand 3,021.82 8,403.89
Bank deposit available for payment at any time 2,018,652,478.59 2,020,443,988.43
Other monetary funds available for payment at any time 460,915.72
II. Balance of cash and cash equivalents at the period-end 2,018,655,500.41 2,020,913,308.04
(5) Items whose application scope is restricted but are still listed as cash and cash equivalents
Nil
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
(6) Monetary items not belonging to cash and cash equivalents
In RMB
Reasons for not belonging to
Item Current period Last period
cash and cash equivalents
Bank deposit - principal of time deposits with a Do not meet the definition of cash
maturity of more than three months 356,679,226.77 110,920,650.69 and cash equivalents.
Other Monetary Funds - Margin deposits and interest Do not meet the definition of cash
paid for obtaining bank loans
Other Monetary funds - Margin paid for bank Do not meet the definition of cash
acceptance bill 728,665.13 142,735,966.40 and cash equivalents.
Do not meet the definition of cash
Other Monetary funds - IRD performance bond 7,820,760.93 8,470,394.37
and cash equivalents.
Do not meet the definition of cash
Other Monetary funds - Mastercard margin 144.17 225,875.75
and cash equivalents.
Do not meet the definition of cash
Other Monetary funds - Guarantee letter margin 317,328.83 278,566.46
and cash equivalents.
Do not meet the definition of cash
Other Monetary Funds - Wealth Management Margin 380,066.34
and cash equivalents.
Total 396,234,986.68 262,631,453.67
(7) Notes to other significant activities
Nil
Explain the items and amount at period-end adjusted for “Other” at end of the last year: Nil
(1) Item of foreign currency
In RMB
Ending balance of foreign Ending RMB balance
Item Rate of conversion
currency converted
Monetary funds
Including: USD 40,810,892.21 6.8109 277,958,911.69
EUR 33,356,757.40 7.7671 259,084,961.82
HKD 2,220,184.52 0.86855 1,928,341.26
JPY 16,498,018.00 0.042045 693,659.17
DKK 11,327,460.12 1.0392 11,771,496.55
Accounts receivable
Including: USD 2,360,789.67 6.8109 16,079,102.36
EUR 29,839,198.72 7.7671 231,764,040.38
HKD
JPY
DKK 13,027,124.58 1.0392 13,537,787.86
Long-term borrowings
Including: USD
EUR
HKD
Other accounts receivable
Including: USD
EUR 259,450.58 7.7671 2,015,178.60
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
DKK 1,995,128.00 1.0392 2,073,337.02
Short-term borrowings
Including: USD
EUR 176,299.20 7.7671 1,369,333.52
Accounts payable
Including: USD 547,155.01 6.8109 3,726,618.06
EUR 23,157,337.07 7.7671 179,865,352.76
JPY 8,969,300.00 0.042045 377,114.22
DKK 15,185,975.72 1.0392 15,781,265.97
CHF 27,330.49 8.4228 230,199.25
GBP
Other accounts payable
Including: USD 1,087.90 6.8109 7,409.58
EUR 411.30 7.7671 3,194.61
DKK 895,612.34 1.0392 930,720.34
Non-current liabilities due
within one year
Including: USD
EUR 650,379.84 7.7671 5,051,565.26
DKK 2,865,267.62 1.0392 2,977,586.11
Leasing liabilities
Including: USD
EUR 2,302,065.12 7.7671 17,880,369.99
DKK 14,600,293.41 1.0392 15,172,624.91
Other explanation:
(2) The nature of non-convertibility of currency and its financial implications, the spot exchange rate
adopted and its estimation process, and the risks faced by enterprises due to currency non-
convertibility
□Applicable ?Not applicable
(3) Explanation on overseas operating entities. For important overseas operating entities, it is necessary
to disclose their main overseas business locations, the functional currency used for accounting and the
basis for the selection. In the event that there are changes in the functional currency used for
accounting, the reasons for such changes should also be disclosed.
□Applicable ?Not applicable
(4) Situation where the functional currency of an overseas operation lacks convertibility with the
reporting currency of the enterprise
□Applicable ?Not applicable
(1) The company as the lessee
?Applicable □Not applicable
Variable lease payments not included in the measurement of lease liabilities
□Applicable ?Not applicable
Leasing costs of simplified handling of short-term leasing or leasing costs for low value assets
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
?Applicable □Not applicable
The lease expense for short-term leases or low-value assets accounted for under simplified treatment was 6,726,409.12 yuan; the total
cash outflows related to leases amounted to 16,363,660.31 yuan.
Situation involving sale and leaseback transactions
Nil
(2) The company as the lessor
Operating lease with the company as the lessor
?Applicable □Not applicable
In RMB
Including: income related to variable lease payments not included in
Item Rental income
rental income
Rental of houses and equipment 17,467,215.84
Total 17,467,215.84
Financing lease with the company as the lessor
□Applicable ?Not applicable
Annual un-discounted rental income for the next five years
□Applicable ?Not applicable
Adjustment table for un-discounted rental income and net lease investments: Nil
(3) Recognize gains/losses arising from financing lease sale with the company as producer or dealer
□Applicable ?Not applicable
Nil
Nil
VIII. R&D expenditure
In RMB
Item Current period Last period
Employee compensation 170,535,003.96 153,794,341.30
Direct investment 77,899,830.88 105,732,400.86
Depreciation and amortization 74,876,640.33 50,983,948.92
Other 14,829,114.93 40,211,458.62
Total 338,140,590.10 350,722,149.70
Including: expensed R&D expenditure 338,140,590.10 350,722,149.70
Nil
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Nil
IX. Changes in consolidation scope
(1) Enterprise combines not under the same control occurred in the period
Nil
(2) Consolidation cost and goodwill
Nil
(3) Book value of identifiable assets and liabilities of the merged party on the merger date
Nil
(4) Gains or losses arising from the remeasurement of equity held before the acquisition date at fair value
Whether it is a business combination realized by two or more transactions of exchange and a transaction of obtained control rights in
the Period or not?
□Yes ?No
(5) Explanation on the inability to reasonably determine the merger consideration or the fair value of
identifiable assets and liabilities of the acquired party on the purchase date or at the end of the merger
period
Nil
(6) Other explanation
Nil
(1) Enterprise combination under the same control that occurred in the current period
Nil
(2) Consolidation cost
Nil
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
(3) Book value of assets and liabilities of the merged party on merger date
Nil
Nil
Whether there are transactions or events involving the loss of control over subsidiaries in the current period or not?
□Yes ?No
Whether there is a a situation where the investment in a subsidiary is disposed of step by step through multiple transactions and
control is lost in the current period or not?
□Yes ?No
Explanation of changes in the scope of consolidation caused by other reasons (such as the establishment of new subsidiaries,
liquidation of subsidiaries, etc.) and their related situations:
Investment and establishment: WEIFU LIDA(MALAYSIA)SDN.BHD
Liquidation and Cancellation: Wuxi Weifu Electric Drive Technology Co., Ltd., Borit Inc.
Nil
X. Equity in other entities
(1) Constitute of enterprise group
In ten thousand
Registered Main operation Registered Shareholding ratio
Subsidiary Business nature Acquired way
capital place place Directly Indirectly
Spare parts of internal- Enterprise combines under
WFJN 34,628.68 Nanjing Nanjing 80.00%
combustion engine the same control
Automobile exhaust Enterprise combines under
WFLD 50,259.63 Wuxi Wuxi 100.00%
purifier, muffler the same control
Spare parts of internal-
WFMA 16,500 Wuxi Wuxi 100.00% Investment
combustion engine
Spare parts of internal-
WFCA 21,000 Wuxi Wuxi 100.00% Investment
combustion engine
Enterprise combines under
WFTR 3,000 Wuxi Wuxi Trading 100.00%
the same control
Spare parts of internal-
WFSC 7,600 Wuxi Wuxi 66.00% Investment
combustion engine
Spare parts of internal- Enterprise combines not
WFTT 11,136 Ningbo Ningbo 98.83% 1.17%
combustion engine under the same control
Spare parts of internal- Enterprise combines not
WFAM USD3,310 Wuxi Wuxi 51.00%
combustion engine under the same control
WFLD Automobile exhaust
(Wuhan) purifier, muffler
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
WFLD Automobile exhaust
(Chongqing) purifier, muffler
WFLD Automobile exhaust
(Nanchang) purifier, muffler
WFLD Automobile exhaust
(Malaysia) purifier, muffler
WFAS 16,500 Wuxi Wuxi Smart car equipment 66.00% Investment
WFLH 2,000 Fuzhou Fuzhou Smart car equipment 40.00% Investment
WFQL 50,000 Wuxi Wuxi Fuel cell components 45.00% 30.00% Investment
Vacuum and hydraulic Enterprise combines not
VHCN 13,400 Wuxi Wuxi 100.00%
pump under the same control
WFSS 35,000 Wuxi Wuxi Smart car equipment 61.43% Investment
Hydrogen storage
WFET EUR1213.60 Wuxi Wuxi 51.00% Investment
equipment
Spare parts of internal-
WFBL 40,000 Nanjing Nanjing 55.00% Investment
combustion engine
SPV DKK13,867.5 Denmark Denmark Investment 100.00% Investment
Enterprise combines not
IRD DKK12,732 Denmark Denmark Fuel cell components 100.00%
under the same control
Enterprise combines not
IRD America USD1,543 America America Fuel cell components 100.00%
under the same control
Enterprise combines not
Borit EUR2,183 Belgium Belgium Fuel cell components 100.00%
under the same control
Vacuum and hydraulic Enterprise combines not
VHIO EUR500 Italy Italy 100.00%
pump under the same control
Explanation on shareholding ratio in subsidiary different from ratio of voting right: Nil
Basis for holding half or less of the voting rights but still controlling the investee, and holding more than half of the voting rights but
not controlling the investee: Nil
Basis for inclusion in the scope of consolidation of significant structured entities, control: Nil
Basis for determining whether a company is an agent or a principal: Nil
Other explanation: Nil
(2) Important non-wholly-owned subsidiary
In RMB
Shareholding ratio of Gains/losses attributable to Dividend announced to distribute Ending equity of
Subsidiary
minority minority in the Period for minority in the Period minority
WFJN 20.00% 4,723,622.67 419,417,716.52
Explanation on holding ratio different from the voting right ratio for minority shareholders: Nil
Other explanation: Nil
(3) Main financial information of the important non-wholly-owned subsidiary
In RMB
Ending balance Opening balance
Subsi Non- Non-
Non- Current Total Non- Current Total
diary Current Total current Current Total current
current liabilitie liabilitie current liabilitie liabilitie
assets assets liabilitie assets assets liabilitie
assets s s assets s s
s s
WFJ 1,430,39 405,466 1,835,85 352,360 44,679, 397,040 1,338,91 441,611 1,780,52 354,865 23,106, 377,972
N 0,114.93 ,973.56 7,088.49 ,930.63 535.21 ,465.84 2,784.54 ,115.66 3,900.20 ,886.53 628.07 ,514.60
In RMB
Current period Last period
Subsidiar Cash flow
Total Total Cash flow
y Operation from Operation
Net profit comprehensiv Net profit comprehensiv from operation
Income operation Income
e income e income activity
activity
WFJN 3,018,547.4
(4) Significant restrictions on the use of enterprise group assets and pay off debts of enterprise group
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Nil
(5) Financial support or other support provided to structured entities included in the scope of
consolidated financial statements
Nil
maintains control over the subsidiary
(1) Description of situation where the share of owners’ equity in subsidiaries changes
Nil
(2) Impact of the transaction on the minority shareholders' equity and the owners' equity attributable to
the parent company
Other explanation: Nil
(1) Important joint venture and associated enterprises
Joint venture or Main operation Registered Shareholding ratio Accounting treatment on investment for
Business nature
associated enterprise place place Directly Indirect joint venture and associated enterprises
WFEC Wuxi Wuxi Catalyst 49.00% Equity method
Internal-combustion
RBCD Wuxi Wuxi 32.50% 1.50% Equity method
engine accessories
Internal-combustion
Zhonglian Electronics Shanghai Shanghai 20.00% Equity method
engine accessories
Internal-combustion
WFWJ Wuxi Wuxi 20.00% Equity method
engine accessories
Chuangchun Xuyang Changchun Changchun Automotive components 34.00% Equity method
Precors GmbH Germany Germany Fuel cell components 43.39% Equity method
Lezhuo Bowei Shanghai Shanghai Automotive components 50.00% Equity method
Professional technique
WuXi Zhuowei Wuxi Wuxi 39.00% Equity method
service
Hydrogen Storage System
Voith HySTech GmbH Germany Germany Technology Research and 40.00% Equity method
Development
Shareholding ratio different from the voting right ratio: Nil
Basis for holding less than 20% of the voting rights but having significant influence, or holding 20% or more of the voting rights but
not having significant influence: Nil
(2) Main financial information of important joint ventures
Other explanation: Nil
(3) Main financial information of important associated enterprises
In RMB
Ending balance/Current period Opening balance/Last Period
Zhonglian Zhonglian
WFEC RBCD WFEC RBCD
Electronics Electronics
Current assets 3,533,492,270.18 14,718,559,091.71 1,964,886,878.93 3,492,136,152.91 13,357,799,513.32 1,442,357,420.24
Non -current assets 460,376,142.02 3,441,271,618.60 9,806,368,043.18 472,000,993.97 3,641,992,480.33 8,992,710,110.46
Total assets 3,993,868,412.20 18,159,830,710.31 11,771,254,922.11 3,964,137,146.88 16,999,791,993.65 10,435,067,530.70
Current liabilities 1,562,185,376.44 11,235,664,511.50 1,699,065,451.34 1,531,666,962.93 6,019,430,062.79 3,444,430.21
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Non-current
liabilities
Total liabilities 1,758,480,930.66 11,439,126,394.45 1,708,286,851.02 1,715,990,801.65 6,222,513,709.97 12,697,414.53
Minority interests
Equity attributable to
shareholders of the 2,235,387,481.54 6,720,704,315.86 10,062,968,071.09 2,248,146,345.23 10,777,278,283.68 10,422,370,116.17
parent company
Share of net assets
calculated based on
the shareholding
ratio
Adjustment matters
--Goodwill 267,788,761.35 1,407,265.96 267,788,761.35 1,407,265.96
--Unrealized profit
-10,047,670.86 -7,431,401.01
of internal trading
--Other -0.28 -0.28
Book value of equity
investment in 1,095,339,865.94 2,542,780,557.60 2,014,000,880.18 1,101,591,709.17 3,924,631,976.51 2,085,881,289.20
associated enterprise
Fair value of equity
investment for
associated enterprise
with consideration
publicly
Operation income 2,571,382,791.90 5,068,471,572.52 14,214,738.71 1,601,080,995.29 4,370,812,361.63 13,252,075.68
Net profit 215,067,736.50 858,569,240.53 1,340,597,954.92 172,976,401.62 760,784,253.17 1,333,377,744.95
Net profit from
discontinued
operations
Other
comprehensive
income
Total comprehensive
income
Dividends received
from associated 340,000,000.00 1,597,421,542.71 117,600,000.00
enterprise in the year
Other explanation
Adjustment item for other “-0.28”: the differential tail;
(4) Summary of financial information of insignificant joint ventures and associated enterprises
In RMB
Ending balance/Current period Opening balance/Last period
Joint venture:
Amount based on shareholding ratio
Associated enterprise:
Total book value of investment 170,406,122.64 187,265,056.88
Amount based on shareholding ratio
--Net profit -17,053,138.01 -74,974,261.24
--Total comprehensive income -17,053,138.01 -74,974,261.24
(5) Major limitation on capital transfer ability to the Company from joint venture or associated
enterprise
Nil
(6) Excess loss occurred in joint venture or associated enterprise
Nil
(7) Unconfirmed commitment with joint venture investment concerned
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Nil
(8) Contingent liability with joint venture or associated enterprise investment concerned
Nil
Nil
Relevant explanations for structured entities not included in the scope of the consolidated financial statements: Nil
Nil
XI. Government grant
□Applicable ?Not applicable
Reasons for not receiving the expected amount of government grants at the expected time point
□Applicable ?Not applicable
?Applicable □Not applicable
In RMB
Amount booked
Current increase Amount carried Other changes
Opening into non- Asset/income
Entities in government forward to other in current Ending balance
balance business income related
grant income period
in current period
Deferred
income
Deferred Asset/income
income 1,084,154.51 25,000.00 1,059,154.51 related
Deferred
income
Total 128,942,021.14 12,993,948.09 13,373,411.61 -911,081.11 127,651,476.51
?Applicable □Not applicable
In RMB
Accounting title Current period Last period
Other revenue 22,496,762.21 33,077,846.97
XII. Risk related to financial instruments
Main financial instrument of the Company including monetary funds, structured deposits, accounts receivable, equity instrument
investment, financial products, loans, and account payable etc., more details of the financial instrument can be found in rel evant
items of Note V. Risks concerned with the above-mentioned financial instrument, and the risk management policy takes for lower the
risks are as follow:
Aims of engaging in the risk management is to achieve equilibrium between the risk and benefit, lower the adverse impact on
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
performance of the Company to minimum standards, and maximized the benefit for shareholders and other investors. Base on the
risk management targets, the basic tactics of the risk management is to recognized and analyzed the vary risks that the Company
counted, established an appropriate risk exposure baseline and caring risk management, supervise the vary risks timely and reliably
in order to control the risk in a limited range.
In business process, the risks with financial instrument concerned happen in front of the Company mainly including credit exposure,
market risk and liquidity risk. BOD of the Company takes full charge of the risk management target and policy-making, and takes
ultimate responsibility for the target of risk management and policy. Compliance department and financial control department
manager and monitor those risk exposures to ensuring the risks are control in a limited range.
Credit Risk
Credit risk refers to the risk that one party of a financial instrument fails to perform its obligations, and resulting in the financial loss
of other party. The company's credit risk mainly comes from monetary funds, structured deposits, note receivable, accounts
receivable, other accounts receivable. The management has established an appropriate credit policy and continuously monitors the
exposure to these credit risks.
The monetary funds and structured deposits held by the Company are mainly deposited in financial institutions such as commercial
banks, the management believes that these commercial banks have higher credit and asset status, and have lower credit risks. The
Company adopts quota policies to avoid credit risks to any financial institutions.
For accounts receivable, other receivables and bills receivable, the Company sets relevant policies to control the credit risk exposure.
To prevent the risks, the company has formulated a new customer credit evaluation system and an existing customer credit sales
balance analysis system. The new customer credit evaluation system aims at new customers, the company will investigate a
customer’s background according to the established process to determine whether to give the customer a credit line and the credit line
size and credit period. Accordingly, the company has set a credit limit and a credit period for each customer, which is the maximum
amount that does not require additional approval. The analysis system for credit sales balance of existing customers means that after
receiving a purchase order from an existing customer, the company will check the order amount and the balance of the accounts
owed by the customer so far, if the total of the two exceeds the credit limit of the customer, the company can only sell to the customer
on the premise of additional approval, otherwise the customer must be required to pay the corresponding amount in advance. In
addition, for the credit sales that have occurred, the company analyzes and audits the monthly statements for risk warning of accounts
receivable to ensure that the company’s overall credit risk is within a controllable range.
The maximum credit risk exposure of the Company is the carrying amount of each financial asset on the balance sheet.
Market risk
Market risk of the financial instrument refers to the fair value of financial instrument or future cash flow due to fluctuations in the
market price changes and produce, mainly includes the IRR, FX risk and other price risk.
IRR refers to the fluctuate risks on Company’s financial status and cash flow arising from rates changes in market. IRR of the
Company mainly related with the bank loans. In order to lower the fluctuate of IRR, the Company, in line with the anticipative
change orientation, choose floating rate or fixed rate, that is the rate in future period will goes up prospectively, then choose fixed
rate; if the rate in future period will decline prospectively, then choose the floating rate. In order to minor the bad impact from
difference between the expectation and real condition, loans for liquid funds of the Company are choose the short-term period, and
agreed the terms of prepayment in particular.
FX risks refer to the losses arising from exchange rate movement. The FX risk sustain by the Company mainly related with the USD,
EUR, SF, JPY, HKD, DKK except for the USD, EUR, SF, JPY, HKD and DKK carried out for the equipment purchasing of parent
company and WFAS, material purchasing of parent company, technical service and trademark usage costs of parent company, the
import and export of WFTR, operation of IRD, operation of Borit, and operation of VHIO and other main business of the Company
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
are pricing and settle with RMB (yuan). As the foreign financial assets and liabilities takes minor ratio in total assets, the Company
has small FX risk of the financial instrument, considered by management of the Company.
As of June 30, 2026, except for the follow assets or liabilities listed with foreign currency, assets and liabilities of the Company are
carried with RMB.
①Foreign currency assets of the Company till end of June 30, 2026:
Ending foreign Ending RMB balance
Item Convert rate Ratio in assets (%)
currency balance converted
Monetary funds
Including: USD 40,810,892.21 6.8109 277,958,911.69 0.90
EUR 33,356,757.40 7.7671 259,084,961.82 0.84
HKD 2,220,184.52 0.86855 1,928,341.26 0.01
JPY 16,498,018.00 0.042045 693,659.17 -
DKK 11,327,460.12 1.0392 11,771,496.55 0.04
Accounts receivable
Including: USD 2,360,789.67 6.8109 16,079,102.36 0.05
EUR 29,839,198.72 7.7671 231,764,040.38 0.75
DKK 13,027,124.58 1.0392 13,537,787.86 0.04
Other accounts receivable
Including: EUR 259,450.58 7.7671 2,015,178.60 0.01
DKK 1,995,128.00 1.0392 2,073,337.02 0.01
Total ratio in assets 2.65
②Foreign currency liability of the Company till end of June 30, 2026:
Ending foreign Ending RMB balance
Item Convert rate Ratio in assets(%)
currency balance converted
Accounts payable
Including: USD 547,155.01 6.8109 3,726,618.06 0.04
EUR 23,157,337.07 7.7671 179,865,352.76 1.82
JPY 8,969,300.00 0.0420 377,114.22
CHF 27,330.49 8.4228 230,199.25
DKK 15,185,975.72 1.0392 15,781,265.97 0.16
GBP
Other accounts payable
Including: USD 1,087.90 6.8109 7,409.58
EUR
DKK
Non-current liabilities due within one year
Including: USD
EUR 650,379.84 7.7671 5,051,565.26 0.05
DKK 2,865,267.62 1.0392 2,977,586.11 0.03
Leasing liabilities
Including USD
EUR 2,302,065.12 7.7671 17,880,369.99 0.18
DKK 14,600,293.41 1.0392 15,172,624.91 0.15
Total ratio in liabilities 2.43
③Other pricing risk
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
The equity instrument investment held by the Company with classification astradable financial assets and other non-current financial
assets are measured on fair value of the balance sheet date. The fluctuation of expected price for these investments will affect the
gains/losses from changes in fair valuefor the Company.
Furthermore, on the premise of deliberated and approved in 8th meeting of 10th session of the BOD, the Company exercise entrust
financing with the self-owned idle capital; therefore, the Company has the risks of collecting no principal due to entrust financial
products default. Aims at such risk, the Company formulated the Management Mechanism of Capital Financing, and well-defined
the authority to entrust financial management, audit process, reporting system, Choice of trustee, daily monitoring and verification
and investigation of responsibility, etc. In order to lower the adverse impact from unpredictable factors, the Company choose short-
term and medium period for investment and investment product’s term is up to 5 years in principle; The variety of investment
includes bank financial products, trust plans of trust companies, asset management plans of asset management companies, various
products issued by securities companies, fund companies and insurance companies, etc.
Liquidity risk
Liquidity risk refers to the capital shortage risk occurred during the clearing obligation implemented by the enterprise in way of cash
paid or other financial assets. The Company aims at guarantee the Company has rich capital to pay the due debts, therefore, a
financial control department is established for collectively controlling such risks. On the one hand, the financial control department
monitoring the cash balance, the marketable securities which can be converted into cash at any time and the rolling forecast on cash
flow in future 12 months, ensuring the Company, on condition of reasonable prediction, owes rich capital to paid the debts; on the
other hand, building a favorable relationship with the banks, rationally design the line of credit, credit products and credit terms,
guarantee a sufficient limit for bank credits in order to satisfy vary short-term financing requirements.
(1) Risk management for hedge business
□Applicable ?Not applicable
(2) The company conducts eligible hedging business and applies hedging accounting
Other explanation: Nil
(3) The company conducts hedging business for risk management purposes and expects to achieve the
risk management objectives, but has not applied hedging accounting.
□Applicable ?Not applicable
(1) By transfer manner
?Applicable □Not applicable
In RMB
Amount of transferred Derecognized Judgment basis for
Transfer method Nature of transferred financial assets
financial asset or not derecognition
Bank acceptance bills in accounts
Bill Almost all of its risks and
receivable financing that have not yet 278,370,524.13 Derecognized
endorsement rewards have been transferred
matured
Bank acceptance bills in accounts
Almost all of its risks and
Bill discounting receivable financing that have not yet 443,595,173.43 Derecognized
rewards have been transferred
matured
Total 721,965,697.56
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
(2) Financial assets derecognized due to assignment
?Applicable □Not applicable
In RMB
Methods of transferring Amount of derecognized Gains/losses related to de-
Item
financial assets financial assets recognition
Accounts receivable financing Bill endorsement 278,370,524.13
Accounts receivable financing Bill discounting 443,595,173.43 2,059,856.41
Total 721,965,697.56 2,059,856.41
(3) Financial assets which are assigned and involved continuously
?Applicable □Not applicable
Other explanation: Nil
XIII. Disclosure of fair value
In RMB
Ending fair value
Item
First level Second level Third level Total
I. Sustaining measured at fair value -- -- -- --
(I) Tradable financial assets 648,491.67 2,667,797,878.81 2,668,446,370.48
whose changes are included in current profits 648,491.67 2,667,797,878.81 2,668,446,370.48
and losses
(1) Investment in equity instrument 648,491.67 648,491.67
(2) Investment in other liability
instruments and equity instrument
(II) Other non-current financial assets 750,257,936.26 750,257,936.26
at fair value and whose changes are included 750,257,936.26 750,257,936.26
in current profits and losses
(1) Investment in equity instrument 750,257,936.26 750,257,936.26
(III)Receivable financing 1,931,633,857.67 1,931,633,857.67
whose changes are included in other 1,931,633,857.67 1,931,633,857.67
comprehensive income
(IV) Other equity instrument investment 1,049,138,690.00 1,049,138,690.00
whose changes are included in current 1,049,138,690.00 1,049,138,690.00
gains/losses
Total assets sustaining measured at fair value 648,491.67 6,398,828,362.74 6,399,476,854.41
II. non-persistent measure of fair value -- -- -- --
level
On June 30, 2026, the tradable financial assets, equity instrument investments held by the Company, Hanma Technology (Stock
code: 600375). The fair value at the end of the period is determined at the closing price as of June 30, 2026.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
sustaining and non-persistent measured at fair value on second level
Nil
sustaining and non-persistent measured at fair value on third level
(1) Financing of receivable
For this portion of financial assets, the company uses the discounted cash flow valuation technique to determine their fair value.
Among them, the important unobservable input values mainly include the discount rate, the maturity period of the contractual cash
flows, etc. For the cash flows with a contractual maturity period within 12 months (inclusive), no discounting is carried out, and
the cost is taken as their fair value.
(2) Investments in other equity instruments
For this portion of financial assets, due to the lack of market liquidity, the company uses the replacement cost method to determine
their fair value. Among them, the important unobservable input values mainly include the financial data of the invested company,
etc.
(3) Investments in other debt instruments and equity instruments
For this portion of financial assets, the company uses the valuation technique of discounted cash flows to determine them. Among
them, the important unobservable input values mainly include the expected annualized rate of return, the risk coefficient, etc.
and closing book value and sensitivity analysis of unobservable parameters
Nil
current period, the reasons for the conversion and the policy for determining the timing of the
conversion
Nil
Nil
Nil
Nil
XIV. Related party and related party transactions
Parent Registered capital shareholding ratio on the Voting right ratio on
Registration place Business nature
company （RMB） enterprise for parent company the enterprise
Wuxi Industry Operation of state-
Wuxi 6,008,531,000.00 22.05% 22.05%
Group owned assets
Explanation on parent company of the company
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
As of June 30, 2026, Wuxi Industry Group holds 22.05% equity of the company.
Wuxi Industry Group is an enterprise controlled by the State-owned Assets Management Committee of Wuxi Municipal People’s
Government. Its business scope includes foreign investment by using its own assets, house leasing services, self-operating and acting
as an agent for the import and export business of various commodities and technologies (Except for goods and technologies that are
restricted by the state or prohibited for import and export), domestic trade (excluding national restricted and prohibited items).
(Projects that are subject to approval in accordance with laws can be operated only after being approved by relevant departments).
Ultimate controller of the Company is the State-owned Assets Supervision & Administration Commission of Wuxi Municipality of
Jiangsu Province.
Other explanation: Nil
For more details of the Company’s subsidiaries, please refer to Note X.1(1) “Component of enterprise group”.
For more details, please refer to Note X.3. Equity in Joint Venture and Associated Enterprises.
Other joint venture or associated enterprises which have related transaction with the Company in the current period or previous
periods: Nil
Other related party Relationship with the Company
Robert Bosch Company Second largest shareholder of the Company
Jiangsu Taiji Industrial New Materials Co., Ltd. (hereinafter
Enterprise controlled by the parent company
referred to as “Jiangsu Taiji”)
Wuxi Feierkang New Materials Technology Co., Ltd.
Enterprise controlled by the parent company
(hereinafter referred to as "FALCON")
Jiangsu Wuxi National Grain Reserve Depot Co., Ltd.
Enterprise controlled by the parent company
(hereinafter referred to as “Wuxi Grain Depot”)
Wuxi Grain Group Co., Ltd. (hereinafter referred to as “Wuxi
Enterprise controlled by the parent company
Grain Group”)
Wuxi Zhongcui Food Co., Ltd. (hereinafter referred to as
“Zhongcui Food”) Enterprise controlled by the parent company
Eleventh Design and Research Institute of Information
Enterprise indirectly controlled by parent company of the
Industry Electronic Science and Technology Engineering Co.,
Ltd. (hereinafter referred to as the “Eleventh Technology”) Company, the Company’s related natural person serves as director
Wuxi Junhai Xichan Investment Management Co., Ltd.
Enterprise controlled by the parent company
(hereinafter referred to as "Junhai Xichan")
Shenzhen Dexi Consulting Co., Ltd. (hereinafter referred to as
Enterprises controlled by the Company’s related nature person
"Shenzhen Dexi")
Key management Directors, supervisors, and senior executives of the company
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Content of related Approved transaction Whether more than the
Related party Current period Last Period
transaction limit transaction limit (Y/N)
WFPM Goods and labor 10,422,343.59 26,000,000.00 N 8,667,024.62
RBCD Goods and labor 176,251,232.89 360,000,000.00 N 121,775,133.27
WFEC Goods and labor 506,463,467.88 1,200,000,000.00 N 98,795,531.83
Robert Bosch Goods and labor 121,801,229.35 380,000,000.00 N 116,055,402.96
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Company
FALCON Goods and labor 11,946.90 89,960.17
Lezhuo Bowei Goods 19,670.00
Changchun
Goods and labor 78,218.38
Xuyang
Zhongcui Food Goods and labor 219,254.40
Goods sold/labor service providing
In RMB
Related party Content of related transaction Current period Last Period
WFPM Goods and labor 725,808.01 697,100.72
RBCD Goods and labor 847,956,455.12 613,584,470.39
WFEC Goods and labor 1,200,077.91 358,670.32
Robert Bosch Company Goods and labor 1,046,154,637.53 1,049,548,207.99
Changchun Xuyang Goods and labor 23,190,224.73 9,557,770.46
Lezhuo Bowei Goods and labor 5,099,901.83 4,994,665.10
Wuxi Grain Depot Goods and labor 3,967.02
Wuxi Industry Group Goods and labor 225,848.64
Description of related transactions in the purchase and sale of goods, provision and acceptance of labor services
Nil
(2) Related trusteeship management/contract & entrust management/ outsourcing
Nil
(3) Related lease
The company as lessor:
In RMB
Lease income recognized in Lease income recognized at
Lessee Assets type
the Period last Period
WFEC Workshop 1,004,452.20 1,004,452.20
RBCD Parking lot 265,200.00 265,200.00
Lezhuo Bowei Building and equipment 1,585,409.95 1,600,014.00
Junhai Xichan Workshop 9,174.32 9,174.32
Explanation on related lease
WFLD entered into a house leasing contract with WFEC. The plant locating at No.9 Linjiang Road, Wuxi Xinwu District, owed by
WFLD, was rented out to WFEC. WFLD recognized that the rental income in the period from Jan. 1, 2026 to June 30, 2026 was
WFJN signed a house leasing contract with Lezhuo Bowei. Lezhuo Bowei leased a portion of WFJN’s plant located at No. 12
Liuzhou North Road, Pukou District, Nanjing City. The lease term is from January 1, 2026 to December 31, 2026. WFJN has
confirmed the rental income of 1,463,214.00 yuan for the period from January 1, 2026 to June 30, 2026; Lezhuo Bowei also rented
some equipment from WFJN, and WFJN confirmed equipment rental income of 122,195.95 yuan in the period from January 1, 2026
to June 30, 2026.
WFHT and Junhai Xichan signed a house lease contract, reaching the following agreement on Junhai Xichan's rental of the office and
meeting room on the first floor of the annex building of the R&D building located at No. 17, Changjiang Road, Wuxi: The rental
income for the period from January 1, 2026 to June 30, 2026 is 9,174.32 yuan.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
(4) Connected guarantee
Nil
(5) Related party’s borrowed/lending funds
Nil
(6) Related party’s assets transfer and debt restructuring
Nil
(7) Remuneration of key management
In RMB
Item Current period Last period
Remuneration of key manager 1,690,000.00 1,980,000.00
(8) Other related transactions
In RMB
Related party Contents of item Current period Last period
WFPM Purchase of fixed assets 192,000.00 4,075.81
RBCD Technology royalties paid etc. 1,457,761.11
Robert Bosch Company Technology royalties paid etc. 4,421,239.51
Robert Bosch Company Purchase of fixed assets 748,849.56 396,460.18
Robert Bosch Company Providing of technical services, etc. 3,539.82
WFEC Utilities payable 233,909.68 260,287.40
WFEC Providing of technical services, etc. 769,622.64
WFEC Sale of fixed assets 1,483,185.84
Lezhuo Bowei Utilities receivable 910,419.27 995,901.03
Jiangsu Taiji Providing of technical services, etc. 23,584.91
Wuxi Industry Group Providing of technology service, etc. 682,075.47
Eleventh Technology Purchase of fixed assets 150,943.40 100,471.70
Zhongcui Food Purchase cafeteria ingredients 929,861.75 2,017,973.30
Shenzhen Dexi Accepting consulting services 71,287.13
(1) Receivable item
In RMB
Ending balance Opening balance
Item Related party Bad debts Bad debts
Book balance Book balance
reserve reserve
Accounts receivable WFPM 807,138.76 131,537.33 778,983.46 131,537.33
Accounts receivable RBCD 885,142,161.62 5,507,839.36 837,818,105.83 5,540,525.12
Robert Bosch
Accounts receivable 662,807,371.99 2,563,858.56 719,908,284.79 1,160,786.70
Company
Accounts receivable Lezhuo Bowei 6,415,255.15 2,764.25 3,333,359.57 1,382.13
Accounts receivable WFEC 5,025,650.66 34,059.99 3,484,406.91 17,030.00
Accounts receivable Changchun Xuyang 49,011,400.86 28,140,261.21
Accounts receivable Wuxi Grain Depot 15,900.62 1,590.06 290,447.45 740.95
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Accounts receivable Wuxi Industry Group 117,750.00
Dividends receivable WFPM 5,357,758.49 5,357,758.49
Robert Bosch
Prepayments 7,106,094.82 13,992,553.66
Company
Robert Bosch
Other non-current assets 7,728,051.60 7,713,000.00
Company
Other non-current assets Wuxi Industry Group 5,452,800.00 5,452,800.00
Total 1,634,987,334.57 8,241,649.55 1,626,269,961.37 6,852,002.23
(2) Payable item
In RMB
Item Related party Ending book balance Opening book balance
Accounts payable WFPM 7,162,102.34 11,557,314.95
Accounts payable WFEC 356,595,314.43 821,788,108.10
Accounts payable RBCD 83,744,390.38 106,344,798.47
Accounts payable Robert Bosch Company 7,917,527.49 49,807,318.10
Accounts payable Urban Public Distribution 159,977.13
Accounts payable Wuxi Grain Group 70,557.01
Accounts payable Lezhuo Bowei 4,192.30 7,751.80
Accounts payable Voith HySTech GmbH 1,607,709.29
Accounts payable Chuangchun Xuyang 162,773.76
Accounts payable Zhongcui Food 15,584.00
Accounts payable FALCON 13,500.00
Other payable Junhai Xichan 1,666.67 1,666.67
Contract liabilities WFPM 730.10 195,643.85
Contract liabilities RBCD 0.36 0.36
Contract liabilities Robert Bosch Company 46,630.98 999,124.21
Other current liabilities RBCD 0.05 0.05
Other current liabilities WFPM 94.91 25,433.70
Other current liabilities Robert Bosch Company 2,535.00
Total 455,501,734.01 992,730,712.45
Nil
Nil
XV. Share-based payment
?Applicable Not applicable
?Applicable Not applicable
□ Applicable ? Not applicable
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
?Applicable Not applicable
Nil
Nil
XVI. Undertakings or contingency
Important commitments existing as of the balance sheet date
Nil
(1) Major contingency on balance sheet date
Nil
(2) Explain reasons for the important contingency unnecessary to disclosed by the Company
The Company has no important contingency that need to disclosed
Nil
XVII. Events after the balance sheet date
Nil
Cash dividends for every 10 shares proposed to be distributed (yuan) 3
Share bonus for every 10 shares proposed to be distributed (shares) 0
Transfer of capital reserve into share capital (per10 shares) proposed 0
Cash dividends for every 10 shares declared to be distributed(yuan) 3
Share bonus for every 10 shares declared to be distributed (shares) 0
Transfer of capital reserve into share capital (per 10 shares) approved 0
Based on the latest total share capital of the company (966,785,693 shares), a cash dividend of RMB3.00 (including tax)
will be distributed for every 10 shares, without bonus shares or capital reserve conversion into share capital. The total
Profit planned cash dividend for this round is 290,035,707.90 yuan (including tax). If there is a change in the total share capital
distribution of the company before the implementation of the distribution plan, the company will distribute according to the principle
plan of unchanged distribution ratio and adjusted total distribution amount. The above-mentioned distribution plan complies
with the provisions of the company's articles of association and the review procedures, and fully protects the legitimate
rights and interests of small and medium-sized investors.
Nil
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
On July 9, 2026, the 18th meeting of the 11th Board of Directors of the Company approved the "Proposal on External Investment
and Related Party Transactions." The Company plans to subscribe for an additional registered capital of RMB 230,635,892 in
Shanghai Xien Technology Co., Ltd. (hereinafter referred to as "Shanghai Xien") using its own or self-raised funds amounting to
RMB 450 million. Upon completion of this capital increase, the company will hold 33.83% equity in Shanghai Xien, and Shanghai
Xien will be included in the company's consolidated financial statements. As of the date of this report disclosure, the company has
completed the payment and settlement of the investment amount.
XVIII. Other important events
(1) Retrospective restatement
Nil
(2) Prospective application
Nil
Nil
(1) Non-monetary asset replacement
Nil
(2) Other asset replacement
Nil
The Enterprise Annuity Plan under the name of WFHT has deliberated and approved by 8th meeting of 7th session of the BOD: in
order to mobilize the initiative and creativity of the employees, established a talent long-term incentive mechanism, enhance the
cohesive force and competitiveness in enterprise, the Company carried out the above mentioned annuity plan since the date of reply
of plans reporting received from labor security administration department. Annuity plans are: the annuity fund are paid by the
enterprise and employees together; the enterprise’s contribution shall not exceed 8% of the gross salary of the employees of the
enterprise per year, the combined contribution of the enterprise and the individual employee shall not exceed 12% of the tota l salary
of the employees of the enterprise. In accordance with the State’s annuity policy, the Company will adjust the economic benefits in
due time, in principle of responding to the economic strength of the enterprise, the amount paid by the enterprise at current period
control in the 8% of the total salary of last year, the maximum annual allocation to employees shall not exceed five times the average
allocation to employees and the excess shall not be counted towards the allocation. The individual contribution is limited to 1% of
one’s total salary for the previous year. Specific paying ratio later shall be adjusted correspondingly in line with the operation
condition of the Company.
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
In December 2012, the Company received the Reply on annuity plans reporting under the name of WFHT from the labor security
administration department, and later, the Company entered into the Entrusted Management Contract of the Annuity Plan of WFHT
with PICC.
Not applicable
(1) Recognition basis and accounting policy for reportable segment
Determine the operating segments in line with the internal organization structure, management requirement and internal report ing
system. Operating segment of the Company shall satisfy the following conditions at the same time:
① The component is able to generate revenues and expenses in routine activities;
② Management of the Company is able to assess the operation results regularly, and determine resources allocation and performance
evaluation for the component;
③ The Company can obtain relevant accounting information such as the financial position, operating results and cash flows of this
component through analysis.
If two or more operating segments have similar economic characteristics and meet certain conditions, they can be merged into one
operating segment.
In consideration of the principle of importance, the company determines the reporting segments on the basis of operating segments.
The reporting segment of the company is a business unit that provides different products or services or operates in different regions.
Due to the need for different technologies and market strategies in various businesses or regions, the company independently
manages the production and operation activities of each reporting segment, evaluates their operating results individually, and decides
to allocate resources to them and evaluate their performance. The company mainly produces products of automotive internal
combustion engine fuel systems, fuel cell components, automotive parts, mufflers, purifiers, vacuum and hydraulic pumps, etc. And
it determines the reporting segments on the basis of products or service contents. However, due to the mixed operation of related
businesses, the total assets, total liabilities, and period expenses have not been allocated.
(2) Financial information for reportable segment
In RMB
Item Energy and Power Automotive Intelligence Industrial AI + Offsetting between segments Total
Revenue 5,742,165,962.56 758,099,379.03 76,795,072.33 6,577,060,413.92
Cost 4,677,190,248.86 644,913,056.78 85,828,178.66 5,407,931,484.30
(3) The company shall state the reasons if it has no reportable segments or is unable to disclose the total
assets and liabilities of each reportable segment.
The company mainly produces products of automotive internal combustion engine fuel systems, fuel cell components, automotive
parts, mufflers, purifiers, vacuum and hydraulic pumps, etc. And it determines the reporting segments on the basis of products or
service contents. However, due to the mixed operation of related businesses, the total assets, total liabilities, and period expenses
have not been allocated.
(4) Other explanations
Nil
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Nil
Nil
XIX. Principal notes of financial statements of parent company
(1) By account age
In RMB
Aging Ending book balance Beginning book balance
Within one year(inclusive) 1,696,388,396.70 1,671,151,997.55
Including: within 6 months 1,669,746,556.47 1,645,841,412.82
Over 3 years 5,370,343.42 5,657,755.38
Over 5 years 104,369.73 420,258.39
Total 1,728,206,594.94 1,686,108,268.37
(2) Disclosure by classification based on the accrual method of bad debts reserve
In RMB
Ending balance Opening balance
Category Book balance Bad debts reserve Book balance Bad debts reserve
Book Book
Accrual Accrual
Amount Ratio Amount value Amount Ratio Amount value
ratio ratio
Accounts receivable
with bad debts reserve 0.04% 100.00% 0.08% 98.53% 19,634.04
accrued on single basis 5 5 .03 .99
Including:
Accounts receivable
with bad debts reserve 99.96% 0.79% 99.92% 0.57%
accrued on portfolio ,753.19 8.82 ,244.37 ,847.34 .27 ,499.07
Including:
Receivables from 1,539,068 13,667,50 1,525,400 1,467,954 9,621,348 1,458,333
customers 89.06% 0.89% 87.06% 0.66%
,111.29 8.82 ,602.47 ,762.11 .27 ,413.84
Receivables from 188,480,6 188,480,6 216,822,0 216,822,0
internal related parties 10.92% 12.86%
Total 100.00% 0.83% 100.00% 0.65%
,594.94 0.57 ,244.37 ,268.37 5.26 ,133.11
Bad debts reserve accrued on single basis: 657,841.75 yuan
In RMB
Beginning balance Ending balance
Name Book Bad debts Book Bad debts Accrual
Accrued causes
balance reserve balance reserve ratio
SAIC HONGYAN Have difficulty in
Automotive Co., Ltd collection
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Tianjin Leiwo Engine Co., Have difficulty in
Ltd. 503,945.24 503,945.24 0.00 0.00 100.00% collection
Total 1,331,421.03 1,311,786.99 657,841.75 657,841.75
Bad debts reserve accrued on portfolio: 13,667,508.82 yuan
In RMB
Ending balance
Name
Book balance Bad debts reserve Accrual ratio
Within 6 months 1,481,265,914.57
Over 3 years 5,370,343.42 5,370,343.42 100.00%
Total 1,539,068,111.29 13,667,508.82
Explanation on determining the basis of this portfolio:
In the portfolio, accounts receivable from internal related parties:
Name of related party Amount Ratio of bad debts reserve (%)
WFTR 86,335,553.72
WFSC 43,623,751.78
VHWX 21,768,813.95
WFSS 24,226,252.22
WFLD 6,321,278.33
WFAM 1,847,931.46
WFQL 134,642.08
WFET 2,863,885.13
WFAS 645,731.03
WFBL 712,802.20
Total 188,480,641.90
Bad debts reserves accrued on general model of expected credit loss:
□Applicable ?Not applicable
(3) Bad debts reserve accrued, recovered or reversed
Bad debts reserve accrued in the period:
In RMB
Amount changed in the period
Opening
Category Recovered or Ending balance
balance Accrued Written-off Other
reversed
Accrued on single basis 1,311,786.99 154,461.16 499,484.08 657,841.75
Accrued on portfolio 9,621,348.27 4,046,160.55 13,667,508.82
Total 10,933,135.26 4,046,160.55 154,461.16 499,484.08 0.00 14,325,350.57
Important bad debts reserve recovered or reversed in the period：Nil
(4) Accounts receivable written off in the Period
In RMB
Item Write-off amount
Actual written-off accounts receivable 499,484.08
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
(5) Top 5 receivables and contract assets at ending balance by debtor
In RMB
Ending Ratio in total ending Ending balance of bad
Ending balance of
Ending balance of balance of balance of accounts debts reserve and
Name accounts receivable and
accounts receivable contract receivable and impairment provision of
contract assets
assets contract assets contract assets
RBCD 885,142,161.62 885,142,161.62 51.22% 5,507,839.36
Client1 163,777,463.51 163,777,463.51 9.48% 20,233.60
Robert
Bosch 155,084,985.72 155,084,985.72 8.97% 2,282,279.68
Company
WFTR 86,335,553.72 86,335,553.72 5.00%
Client 5 78,929,632.18 78,929,632.18 4.57%
Total 1,369,269,796.75 1,369,269,796.75 79.24% 7,810,352.64
In RMB
Item Ending balance Opening balance
Interest receivable 385,076.40 117,347.22
Dividends receivable 1,942,779,301.20 5,357,758.49
Other accounts receivable 411,344,706.41 483,559,405.62
Total 2,354,509,084.01 489,034,511.33
(1) Interest receivable
In RMB
Item Ending balance Opening balance
Interest receivable of subsidiaries 385,076.40 117,347.22
Total 385,076.40 117,347.22
Other explanation: Nil
□Applicable ?Not applicable
Nil
Nil
(2) Dividends receivable
In RMB
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Investee Ending balance Opening balance
Zhonglian Electronics 340,000,000.00
RBCD 1,597,421,542.71
WFPM 5,357,758.49 5,357,758.49
Total 1,942,779,301.20 5,357,758.49
Nil
□Applicable ?Not applicable
Nil
Nil
(3) Other accounts receivable
In RMB
Nature Ending book balance Opening book balance
Staff loans and petty cash 254,111.01 140,080.00
Balance of related party in the consolidation scope 2,379,260,000.00 2,456,258,778.73
Margin 3,186,966.99 3,046,966.99
Social security and provident fund paid 6,322,284.56 6,268,831.03
Other 4,453,619.43 32,500.00
Total 2,393,476,981.99 2,465,747,156.75
In RMB
Aging Ending book balance Beginning book balance
Within one year (One year included) 137,177,935.00 189,367,609.76
Including: within 6 months 137,097,935.00 189,287,609.76
Over 3 years 2,256,173,827.54 2,276,254,327.54
Over 5 years 1,492,646.21 1,543,146.21
Total 2,393,476,981.99 2,465,747,156.75
Provision for bad debts reserve based on the general model of expected credit loss:
In RMB
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Phase I Phase II Phase III
Expected credit loss for Expected credit loss for
Bad debts reserve Expected credit Total
the entire duration the entire duration (with
loss over next 12
(without credit credit impairment
months
impairment occurred) occurred)
Balance of Jan. 1, 2026 3,027,371.43 1,979,160,379.70 1,982,187,751.13
Balance of Jan. 1, 2026 in the
period
Current accrual 25,024.45 25,024.45
Current reversal 80,500.00 80,500.00
Balance on June 30, 2026 2,971,895.88 1,979,160,379.70 1,982,132,275.58
Change of book balance of loss provision with amount has major changes in the period
□Applicable ?Not applicable
Bad debts reserve accrued in the period:
In RMB
Amount changed in the period
Category Opening balance Ending balance
Accrued Recovered or reversed Written-off Other
Bad debts
reserve
Total 1,982,187,751.13 25,024.45 80,500.00 1,982,132,275.58
Including the important bad debts reserve recovered or reversed in the period: Nil
Nil
In RMB
Ratio in total
Ending balance of
Name Nature Ending balance Aging ending balance of
bad debts reserve
other receivables
Balance of related party in
WFTR 2,253,260,000.00 Over 3 years 94.14% 1,979,160,379.70
the consolidation scope
Balance of related party in
WFCA 101,000,000.00 Within 1 year 4.22%
the consolidation scope
Balance of related party in
WFAS 25,000,000.00 Within 1 year 1.04%
the consolidation scope
Total 2,379,260,000.00 99.40% 1,979,160,379.70
Other explanation: Nil
In RMB
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment in
subsidiary
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Investment in
associated
enterprises and
joint venture
Total 8,802,817,491.78 8,802,817,491.78 10,263,381,015.17 10,263,381,015.17
(1) Investment in subsidiaries
In RMB
Opening Changes in current period Ending
Opening balance balance of Impairment Ending balance balance of
Investee Additional Negative
(book value) impairment provision Other (book value) impairment
provision Investment Investment provision
accrued
WFJN 185,704,551.82 185,704,551.82
WFLD 658,974,651.80 658,974,651.80
WFMA 170,986,195.35 170,986,195.35
WFCA 352,664,737.01 352,664,737.01
WFTR 33,726,511.51 33,726,511.51
WFSC 51,116,685.47 51,116,685.47
WFTT 238,063,380.00 238,063,380.00
WFAM 82,454,467.99 82,454,467.99
WFDT 54,012,820.23 54,012,820.23
SPV 1,838,103,170.66 1,838,103,170.66
WFLD(Chongqing) 191,160.00 191,160.00
WFAS 631,890.00 631,890.00
WFQL 225,000,000.00 225,000,000.00
VHWX 143,559,879.99 143,559,879.99
WFSS 215,005,302.80 215,005,302.80
WFET 24,061,698.00 24,061,698.00
Total 4,274,257,102.63 54,012,820.23 4,220,244,282.40
(2) Investment in associated enterprises and joint venture
In RMB
Current changes (+/ -)
Opening Opening Ending Ending
balance balance of Investment Cash balance balance of
Investee Other
(book impairment gain/loss Other dividend Impairment (book provision
value) provision Additional Capital comprehensive value) impairment
recognized equity or profit provision Other
investment reduction income
under change announced accrued
adjustment
equity to issued
I. Joint venture
II. Associated enterprise
RBCD 64,140. 28,349.
Zhonglian 268,119,59 340,000,0
Electronics 0.98 00.00
WFPM
Lezhuo 98,874, 83,403,
Bowei 762.71 858.07
Subtotal 23,912. 0.00 0.00 0.00 73,209.
Total 23,912. 0.00 73,209.
The recoverable amount is determined on the basis of the net amount after deducting disposal expenses from fair value
□Applicable ?Not applicable
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
The recoverable amount is determined on the basis of the present value of expected future cash flows
□Applicable ?Not applicable
Reasons for significant inconsistencies between the aforementioned information and the information used in impairment tests of
prior years or external information
Nil
Reasons for significant inconsistencies between the information used in the company’s impairment tests of prior years and the
actual situation of the current year
Nil
(3) Other explanations
Nil
In RMB
Current period Last period
Item
Income Cost Income Cost
Main business 2,021,778,821.10 1,690,923,766.96 1,671,101,977.89 1,426,898,652.14
Other business 209,480,468.71 172,066,386.31 149,675,813.72 127,350,888.53
Total 2,231,259,289.81 1,862,990,153.27 1,820,777,791.61 1,554,249,540.67
In RMB
Item Current period Last period
Investment income generated from the disposal of long-term equity investments -12,114,393.24
Investment income of tradable financial assets during holding period 12,946,606.27 4,729,903.52
Investment income from disposing of tradable financial assets 957,401.23
Investment income in subsidiaries 475,645,907.12
Investment income in joint ventures and associated enterprises 530,796,189.16 488,623,036.82
Revenue from debt restructuring -11,250.00 -81,788.63
Gain on derecognition of financial assets measured at amortized cost -18,266.67
Total 531,598,885.52 969,874,460.06
Nil
XX. Supplementary Information
?Applicable □Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current assets 2,797,183.06
Governmental grants reckoned into current gains/losses (except for those with normal operation business
concerned, and conform to the national policies & regulations and are continuously enjoyed at a fixed or 9,123,350.61
quantitative basis according to certain standards)
Except for the effective hedging operations related to normal business operation of the Company, the
gains/losses from changes in fair valuefrom holding the tradable financial assets and trading financial
-45,338,513.37
liabilities, and the investment earnings obtained from disposing the tradable financial asset, trading
financial liability and financial assets available for sale
WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. SEMI-ANNUAL REPORT 2026
Reversal of impairment provision for receivables separately tested for impairment transfer back 762,876.44
Gains/losses of debt restructuring -509,395.38
Other non-operating income and expenditure except for the aforementioned items 1,928,124.84
Less: Impact on income tax -6,806,842.56
Impact on minority shareholders’ equity (After tax) 1,893,517.15
Total -26,323,048.39 --
Specific information on other items of gains/losses that qualified the definition of non-recurring gains/losses
□Applicable ?Not applicable
The Company does not have other gains/losses that qualified the definition of non-recurring gains/losses
Information on the definition of non-recurring gains/losses that are listed in the Q&A Announcement No.1 on Information
Disclosure for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Gain)/Loss as the recurring
gains/losses
□Applicable ?Not applicable
Earnings per share
Weighted
Profits during report period
average ROE Basic earnings per Diluted earnings per
share (RMB/Share) share (RMB/Share)
Net profits attributable to common stock stockholders of the Company 4.20% 0.87 0.87
Net profits attributable to common stock stockholders of the Company after
deducting non-recurring gains/losses 4.33% 0.89 0.89
(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
(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
(3) Explanation on data differences under the accounting standards in and out of China; as for the
differences adjustment audited by foreign auditing institute, listed name of the institute
Nil
Nil
BOD of Weifu High-Technology Group Co., Ltd.
August 26, 2026
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