无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
Weifu High-Technology Group Co., Ltd.
Semi-Annual Financial Report 2017
August 2017
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无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited
II. Financial statement
Unit in note of financial statement refers to CNY: RMB (Yuan)
1. Consolidated balance sheet
Prepared by Weifu High-Technology Group Co., Ltd.
2017-06-30
In RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 1,846,838,076.57 3,969,674,068.56
Settlement provisions
Capital lent
Financial assets measured by fair value and with variation reckoned into
current gains/losses
Derivative financial assets
Notes receivable 1,217,598,956.03 1,279,844,777.10
Accounts receivable 2,028,796,617.26 1,324,703,543.17
Account paid in advance 100,690,123.80 74,030,486.38
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Interest receivable 1,900,454.93 2,487,527.65
Dividends receivable 541,265,728.20
Other receivables 8,377,418.93 5,907,873.92
Purchase restituted finance asset
Inventories 1,134,167,227.47 1,349,444,535.25
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无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
Divided into assets held for sale
Non-current assets due within one year
Other current assets 4,674,236,184.08 1,914,225,879.67
Total current assets 11,553,870,787.27 9,920,318,691.70
Non-current assets:
Loans and payments on behalf
Available-for-sale financial assets 629,032,469.00 695,235,461.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments 3,381,642,657.07 3,421,030,760.78
Investment property 24,344,196.10 25,113,472.54
Fixed assets 2,443,323,924.72 2,447,840,035.34
Construction in progress 137,789,424.89 90,621,102.20
Project materials
Disposal of fixed assets
Productive biological assets
Oil and natural gas assets
Intangible assets 339,561,892.54 347,206,518.76
Research and development costs
Goodwill 1,784,086.79 1,784,086.79
Long-term deferred expenses 6,431,302.70 1,753,413.10
Deferred income tax assets 199,683,064.44 210,196,714.45
Other non-current assets 148,158,953.25 102,671,641.12
Total non-current assets 7,311,751,971.50 7,343,453,206.08
Total assets 18,865,622,758.77 17,263,771,897.78
Current liabilities:
Short-term borrowings 185,000,000.00 150,000,000.00
Loan from central bank
Absorbing deposit and interbank deposit
Capital borrowed
Financial liability measured by fair value and with variation reckoned
into current gains/losses
Derivative financial liability
Notes payable 659,009,237.47 837,045,962.78
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无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
Accounts payable 2,264,365,529.46 1,729,250,355.93
Accounts received in advance 47,118,373.32 42,983,352.84
Selling financial asset of repurchase
Commission charge and commission payable
Wage payable 144,061,569.60 230,672,269.58
Taxes payable 78,596,242.59 62,634,922.88
Interest payable 313,792.16 437,938.27
Dividend payable 605,370,342.00
Other accounts payable 51,678,206.75 96,514,485.59
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Divided into liability held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 4,035,513,293.35 3,149,539,287.87
Non-current liabilities:
Long-term loans 57,500,000.00 60,000,000.00
Bonds payable
Including: preferred stock
Perpetual capital securities
Long-term account payable 17,835,454.00 17,835,454.00
Long-term wages payable 137,198,200.42 112,815,704.51
Special accounts payable 18,265,082.11 18,265,082.11
Accrual liabilities
Deferred income 469,575,838.60 479,211,845.88
Deferred income tax liabilities 20,595,578.89 27,674,132.89
Other non-current liabilities
Total non-current liabilities 720,970,154.02 715,802,219.39
Total liabilities 4,756,483,447.37 3,865,341,507.26
Owners’ equity:
Share capital 1,008,950,570.00 1,008,950,570.00
Other equity instrument
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无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
Including: preferred stock
Perpetual capital securities
Capital reserve 3,417,841,402.89 3,417,841,402.89
Less: Inventory shares
Other comprehensive income 104,925,615.01 144,722,827.51
Reasonable reserve 615,338.30 89,005.19
Surplus reserve 510,100,496.00 510,100,496.00
Provision of general risk
Retained profit 8,566,191,678.44 7,845,639,990.88
Total owners’ equity attributable to parent company 13,608,625,100.64 12,927,344,292.47
Minority interests 500,514,210.76 471,086,098.05
Total owners’ equity 14,109,139,311.40 13,398,430,390.52
Total liabilities and owner’s equity 18,865,622,758.77 17,263,771,897.78
Legal Representative: Chen Xuejun Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin
2. Balance Sheet of Parent Company
In RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 1,226,392,556.23 2,143,816,269.01
Financial assets measured by fair value and with variation reckoned into
current gains/losses
Derivative financial assets
Notes receivable 388,160,459.87 216,516,806.40
Accounts receivable 875,605,550.39 611,594,846.92
Account paid in advance 59,998,299.18 34,805,212.41
Interest receivable
Dividends receivable 526,564,394.61
Other receivables 87,552,518.74 46,349,571.47
Inventories 225,387,663.55 202,839,001.66
Divided into assets held for sale
Non-current assets due within one year
Other current assets 4,577,381,587.58 1,945,446,935.23
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无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
Total current assets 7,967,043,030.15 5,201,368,643.10
Non-current assets:
Available-for-sale financial assets 553,092,469.00 619,295,461.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments 4,504,635,093.52 4,591,005,651.65
Investment property
Fixed assets 1,386,526,889.03 1,438,192,853.38
Construction in progress 72,035,061.68 36,142,328.79
Project materials
Disposal of fixed assets
Productive biological assets
Oil and natural gas assets
Intangible assets 187,844,597.17 192,448,576.72
Research and development costs
Goodwill
Long-term deferred expenses
Deferred income tax assets 90,158,850.98 96,943,564.13
Other non-current assets 49,082,459.12 31,747,194.01
Total non-current assets 6,843,375,420.50 7,005,775,629.68
Total assets 14,810,418,450.65 12,207,144,272.78
Current liabilities:
Short-term borrowings 80,000,000.00 80,000,000.00
Financial liability measured by fair value and with variation reckoned
into current gains/losses
Derivative financial liability
Notes payable 228,579,008.37 171,760,000.00
Accounts payable 746,193,720.36 595,558,830.63
Accounts received in advance 5,756,895.86 732,252.09
Wage payable 63,640,989.73 119,456,739.08
Taxes payable 35,050,434.52 28,055,629.04
Interest payable 84,400.00 88,933.33
Dividend payable 605,370,342.00
Other accounts payable 549,233,174.62 14,190,407.16
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无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
Divided into liability held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 2,313,908,965.46 1,009,842,791.33
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital securities
Long-term account payable
Long-term wages payable 125,622,495.91 101,240,000.00
Special accounts payable
Accrual liabilities
Deferred income 419,080,069.39 432,695,399.27
Deferred income tax liabilities 18,516,284.99 25,539,322.49
Other non-current liabilities
Total non-current liabilities 563,218,850.29 559,474,721.76
Total liabilities 2,877,127,815.75 1,569,317,513.09
Owners’ equity:
Share capital 1,008,950,570.00 1,008,950,570.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital reserve 3,448,408,786.39 3,448,408,786.39
Less: Inventory shares
Other comprehensive income 104,925,615.01 144,722,827.51
Reasonable reserve
Surplus reserve 510,100,496.00 510,100,496.00
Retained profit 6,860,905,167.50 5,525,644,079.79
Total owners’ equity 11,933,290,634.90 10,637,826,759.69
Total liabilities and owner’s equity 14,810,418,450.65 12,207,144,272.78
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无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
3. Consolidated Profit Statement
In RMB
Item This period Last period
I. Total operating income 4,728,125,599.02 3,366,476,452.49
Including: Operating income 4,728,125,599.02 3,366,476,452.49
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 4,235,672,796.49 3,051,777,186.87
Including: Operating cost 3,736,290,938.86 2,633,281,983.25
Interest expense
Commission charge and commission expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Operating tax and extras 37,862,282.48 16,235,346.56
Sales expenses 71,559,262.66 92,799,369.25
Administration expenses 399,568,734.73 314,596,534.92
Financial expenses 1,688,051.32 -2,909,491.43
Losses of devaluation of asset -11,296,473.56 -2,226,555.68
Add: Changing income of fair value(Loss is listed with “-”)
Investment income (Loss is listed with “-”) 955,437,915.36 711,952,563.17
Including: Investment income on affiliated company and joint venture 833,565,520.64 593,102,462.02
Exchange income (Loss is listed with “-”)
Other income 15,608,007.28
III. Operating profit (Loss is listed with “-”) 1,463,498,725.17 1,026,651,828.79
Add: Non-operating income 3,019,773.33 18,747,382.73
Including: Disposal gains of non-current asset 235,193.85 724,772.79
Less: Non-operating expense 4,125,199.11 2,335,822.02
Including: Disposal loss of non-current asset 1,536,014.17 1,461,331.21
IV. Total Profit (Loss is listed with “-”) 1,462,393,299.39 1,043,063,389.50
Less: Income tax expense 94,025,933.36 68,314,427.18
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无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
V. Net profit (Net loss is listed with “-”) 1,368,367,366.03 974,748,962.32
Net profit attributable to owner’s of parent company 1,325,922,029.56 943,568,535.72
Minority shareholders’ gains and losses 42,445,336.47 31,180,426.60
VI. Net after-tax of other comprehensive income -39,797,212.50 -56,207,588.74
Net after-tax of other comprehensive income attributable to owners of parent
-39,797,212.50 -56,207,588.74
company
(I) Other comprehensive income items which will not be reclassified
subsequently to profit of loss
1. Changes as a result of re-measurement of net defined benefit plan liability
or asset
2. Share of the other comprehensive income of the investee accounted for
using equity method which will not be reclassified subsequently to profit and loss
(II) Other comprehensive income items which will be reclassified subsequently
-39,797,212.50 -56,207,588.74
to profit or loss
1. Share of the other comprehensive income of the investee accounted for
using equity method which will be reclassified subsequently to profit or loss
2. Gains or losses arising from changes in fair value of available-for-sale
-39,797,212.50 -56,207,588.74
financial assets
3. Gains or losses arising from reclassification of held-to-maturity investment
as available-for-sale financial assets
4. The effect hedging portion of gains or losses arising from cash flow
hedging instruments
5. Translation differences arising on translation of foreign currency financial
statements
6.Other
Net after-tax of other comprehensive income attributable to minority
shareholders
VII. Total comprehensive income 1,328,570,153.53 918,541,373.58
Total comprehensive income attributable to owners of parent Company 1,286,124,817.06 887,360,946.98
Total comprehensive income attributable to minority shareholders 42,445,336.47 31,180,426.60
VIII. Earnings per share:
(i) Basic earnings per share 1.31 0.94
(ii) Diluted earnings per share 1.31 0.94
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and
realized 0 Yuan at last period for combined party.
Legal Representative: Chen Xuejun Person in charge of accounting works: Ou Jianbin
Person in charge of accounting institute: Ou Jianbin
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无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
4. Profit Statement of Parent Company
In RMB
Item This period Last period
I. Operating income 1,626,480,415.71 984,069,968.80
Less: Operating cost 1,268,622,661.58 808,344,072.54
Operating tax and extras 14,826,758.76 3,888,794.42
Sales expenses 13,791,093.39 20,239,016.93
Administration expenses 184,157,736.45 126,327,383.34
Financial expenses -346,977.87 -6,167,195.97
Losses of devaluation of asset 48,394.70 70,937.80
Add: Changing income of fair value(Loss is listed with “-”)
Investment income (Loss is listed with “-”) 1,830,767,022.75 654,795,209.22
Including: Investment income on affiliated company and joint venture 767,309,765.64 537,117,080.67
Other income 13,915,329.88
II. Operating profit (Loss is listed with “-”) 1,990,063,101.33 686,162,168.96
Add: Non-operating income 289,904.06 14,621,604.78
Including: Disposal gains of non-current asset 45,644.41 461,816.10
Less: Non-operating expense 2,277,466.80 808,445.02
Including: Disposal loss of non-current asset 1,248,544.33 591,980.61
III. Total Profit (Loss is listed with “-”) 1,988,075,538.59 699,975,328.72
Less: Income tax expense 47,444,108.88 20,758,281.95
IV. Net profit (Net loss is listed with “-”) 1,940,631,429.71 679,217,046.77
V. Net after-tax of other comprehensive income -39,797,212.50 -56,207,588.74
(I) Other comprehensive income items which will not be reclassified
subsequently to profit of loss
1. Changes as a result of re-measurement of net defined benefit plan
liability or asset
2. Share of the other comprehensive income of the investee accounted for
using equity method which will not be reclassified subsequently to profit and loss
(II) Other comprehensive income items which will be reclassified
-39,797,212.50 -56,207,588.74
subsequently to profit or loss
1. Share of the other comprehensive income of the investee accounted for
using equity method which will be reclassified subsequently to profit or loss
2. Gains or losses arising from changes in fair value of available-for-sale
-39,797,212.50 -56,207,588.74
financial assets
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无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
3. Gains or losses arising from reclassification of held-to-maturity
investment as available-for-sale financial assets
4. The effect hedging portion of gains or losses arising from cash flow
hedging instruments
5. Translation differences arising on translation of foreign currency
financial statements
6.Other
VI. Total comprehensive income 1,900,834,217.21 623,009,458.03
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item This period Last period
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 3,437,449,626.28 2,605,746,532.90
Net increase of customer deposit and interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from other financial institution
Cash received from original insurance contract fee
Net cash received from reinsurance business
Net increase of insured savings and investment
Net increase of amount from disposal financial assets that measured by fair
value and with variation reckoned into current gains/losses
Cash received from interest, commission charge and commission
Net increase of capital borrowed
Net increase of returned business capital
Write-back of tax received 22,168,009.92 15,501,767.26
Other cash received concerning operating activities 19,713,087.22 17,733,683.49
Subtotal of cash inflow arising from operating activities 3,479,330,723.42 2,638,981,983.65
Cash paid for purchasing commodities and receiving labor service 2,032,254,137.91 1,589,143,730.33
Net increase of customer loans and advances
Net increase of deposits in central bank and interbank
Cash paid for original insurance contract compensation
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无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
Cash paid for interest, commission charge and commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 614,817,453.84 492,300,006.76
Taxes paid 325,770,301.21 223,331,049.84
Other cash paid concerning operating activities 154,087,588.94 140,666,181.77
Subtotal of cash outflow arising from operating activities 3,126,929,481.90 2,445,440,968.70
Net cash flows arising from operating activities 352,401,241.52 193,541,014.95
II. Cash flows arising from investing activities:
Cash received from recovering investment 3,091,512,477.03 3,452,670,890.00
Cash received from investment income 430,252,079.05 727,664,592.58
Net cash received from disposal of fixed, intangible and other long-term assets 53,235,402.65 49,158,379.90
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 30,296,467.00
Subtotal of cash inflow from investing activities 3,574,999,958.73 4,259,790,329.48
Cash paid for purchasing fixed, intangible and other long-term assets 212,687,557.71 226,897,693.98
Cash paid for investment 5,925,993,243.66 6,110,900,000.00
Net increase of mortgaged loans
Net cash received from subsidiaries and other units
Other cash paid concerning investing activities 57,116.41
Subtotal of cash outflow from investing activities 6,138,680,801.37 6,337,854,810.39
Net cash flows arising from investing activities -2,563,680,842.64 -2,078,064,480.91
III. Cash flows arising from financing activities
Cash received from absorbing investment
Including: Cash received from absorbing minority shareholders’ investment by
subsidiaries
Cash received from loans 185,000,000.00 250,000,000.00
Cash received from issuing bonds
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 185,000,000.00 250,000,000.00
Cash paid for settling debts 152,500,000.00 347,000,000.00
Cash paid for dividend and profit distributing or interest paying 17,164,736.59 5,277,671.94
Including: Dividend and profit of minority shareholder paid by subsidiaries 11,958,920.00
Other cash paid concerning financing activities 1,049,711.28
Subtotal of cash outflow from financing activities 170,714,447.87 352,277,671.94
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无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
Net cash flows arising from financing activities 14,285,552.13 -102,277,671.94
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate -3,018,810.88
V. Net increase of cash and cash equivalents -2,200,012,859.87 -1,986,801,137.90
Add: Balance of cash and cash equivalents at the period -begin 3,795,223,678.11 3,040,315,198.85
VI. Balance of cash and cash equivalents at the period -end 1,595,210,818.24 1,053,514,060.95
6. Cash Flow Statement of Parent Company
In RMB
Item This period Last period
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 1,138,848,252.21 793,334,844.25
Write-back of tax received
Other cash received concerning operating activities 505,652,991.97 1,103,292,123.70
Subtotal of cash inflow arising from operating activities 1,644,501,244.18 1,896,626,967.95
Cash paid for purchasing commodities and receiving labor service 707,951,478.67 439,155,764.29
Cash paid to/for staff and workers 277,978,923.53 196,948,347.05
Taxes paid 133,461,523.26 53,074,955.83
Other cash paid concerning operating activities 168,294,750.99 33,496,708.65
Subtotal of cash outflow arising from operating activities 1,287,686,676.45 722,675,775.82
Net cash flows arising from operating activities 356,814,567.73 1,173,951,192.13
II. Cash flows arising from investing activities:
Cash received from recovering investment 2,974,601,492.00 3,325,000,000.00
Cash received from investment income 1,365,386,425.45 698,900,348.97
Net cash received from disposal of fixed, intangible and other long-term assets 52,252,940.94 48,066,222.19
Net cash received from disposal of subsidiaries and other units 2,410,502.57
Other cash received concerning investing activities 25,301,600.00
Subtotal of cash inflow from investing activities 4,394,651,360.96 4,097,268,171.16
Cash paid for purchasing fixed, intangible and other long-term assets 61,095,071.88 134,171,768.94
Cash paid for investment 5,617,929,258.63 6,155,900,000.00
Net cash received from subsidiaries and other units
Other cash paid concerning investing activities 57,116.41
Subtotal of cash outflow from investing activities 5,679,024,330.51 6,290,128,885.35
Net cash flows arising from investing activities -1,284,372,969.55 -2,192,860,714.19
III. Cash flows arising from financing activities
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无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
Cash received from absorbing investment
Cash received from loans 80,000,000.00 180,000,000.00
Cash received from issuing bonds
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 80,000,000.00 180,000,000.00
Cash paid for settling debts 80,000,000.00 230,000,000.00
Cash paid for dividend and profit distributing or interest paying 1,637,133.32 3,489,380.28
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 81,637,133.32 233,489,380.28
Net cash flows arising from financing activities -1,637,133.32 -53,489,380.28
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate -3,018,810.88
V. Net increase of cash and cash equivalents -932,214,346.02 -1,072,398,902.34
Add: Balance of cash and cash equivalents at the period -begin 2,143,377,059.99 1,734,531,427.66
VI. Balance of cash and cash equivalents at the period -end 1,211,162,713.97 662,132,525.32
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无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
7. Statement of Changes in Owners’ Equity (Consolidated)
This period
In RMB
This period
Owners’ equity attributable to parent company
Other
equity
instrument
Pe Less
rp Prov
Item : Minority
etu ision
Pr Inve Other Total owners’ equity
al Reasonable of interests
Share capital efe Capital reserve ntor comprehensive Surplus reserve Retained profit
ca Ot reserve gene
rre y income
pit he ral
d shar
al r risk
sto es
se
ck
cu
riti
es
I. Balance at the end
1,008,950,570.00 3,417,841,402.89 144,722,827.51 89,005.19 510,100,496.00 7,845,639,990.88 471,086,098.05 13,398,430,390.52
of the last year
Add: Changes of
accounting policy
Error correction of the
last period
Enterprise combine
under the same control
Other
II. Balance at the
1,008,950,570.00 3,417,841,402.89 144,722,827.51 89,005.19 510,100,496.00 7,845,639,990.88 471,086,098.05 13,398,430,390.52
beginning of this year
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无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
III. Increase/ Decrease
in this year (Decrease -39,797,212.50 526,333.11 720,551,687.56 29,428,112.71 710,708,920.88
is listed with “-”)
(i) Total
comprehensive -39,797,212.50 1,325,922,029.56 42,445,336.47 1,328,570,153.53
income
(ii) Owners’ devoted
-1,039,238.28 -1,039,238.28
and decreased capital
1.Common shares
invested by
shareholders
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned
into owners equity
with share-based
payment
4. Other -1,039,238.28 -1,039,238.28
(III) Profit distribution -605,370,342.00 -11,958,920.00 -617,329,262.00
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk provisions
3. Distribution for
owners (or -605,370,342.00 -11,958,920.00 -617,329,262.00
shareholders)
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无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
4. Other
(IV) Carrying forward
internal owners’
equity
1. Capital reserves
conversed to capital
(share capital)
2. Surplus reserves
conversed to capital
(share capital)
3. Remedying loss
with surplus reserve
4. Other
(V) Reasonable
526,333.11 -19,065.48 507,267.63
reserve
1. Withdrawal in the
8,969,586.03 1,184,584.27 10,154,170.30
report period
2. Usage in the report
8,443,252.92 1,203,649.75 9,646,902.67
period
(VI)Others
IV. Balance at the end
1,008,950,570.00 3,417,841,402.89 104,925,615.01 615,338.30 510,100,496.00 8,566,191,678.44 500,514,210.76 14,109,139,311.40
of the report period
17
无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
Last period
In RMB
Last period
Owners’ equity attributable to parent company
Other
equity
instrument
Pe
Les
rpe Prov
Item s: Minority
tua ision
Inv Other Total owners’ equity
Pre l Reasonable of interests
Share capital Capital reserve ent comprehensive Surplus reserve Retained profit
fer ca Ot reserve gene
ory income
red pit he ral
shar
sto al r risk
es
ck sec
uri
tie
s
I. Balance at the end
1,008,950,570.00 3,396,935,227.97 188,436,372.50 914,648.09 510,100,496.00 6,677,890,958.83 430,048,887.07 12,213,277,160.46
of the last year
Add: Changes of
accounting policy
Error correction of the
last period
Enterprise combine
under the same
control
Other
II. Balance at the
1,008,950,570.00 3,396,935,227.97 188,436,372.50 914,648.09 510,100,496.00 6,677,890,958.83 430,048,887.07 12,213,277,160.46
beginning of this year
III. Increase/ Decrease
20,906,174.92 -43,713,544.99 -825,642.90 1,167,749,032.05 41,037,210.98 1,185,153,230.06
in this year (Decrease
18
无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
is listed with “-”)
(i) Total
comprehensive -43,713,544.99 1,672,224,317.05 53,780,463.47 1,682,291,235.53
income
(ii) Owners’ devoted
20,906,174.92 -12,418.48 12,375,177.63 33,268,934.07
and decreased capital
1.Common shares
invested by 12,800,000.00 12,800,000.00
shareholders
2. Capital invested by
holders of other
equity instruments
3. Amount reckoned
into owners equity
with share-based
payment
4. Other 20,906,174.92 -12,418.48 -424,822.37 20,468,934.07
(III) Profit
-504,475,285.00 -24,803,800.00 -529,279,085.00
distribution
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
provisions
3. Distribution for
owners (or -504,475,285.00 -24,803,800.00 -529,279,085.00
shareholders)
19
无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
4. Other
(IV) Carrying forward
internal owners’
equity
1. Capital reserves
conversed to capital
(share capital)
2. Surplus reserves
conversed to capital
(share capital)
3. Remedying loss
with surplus reserve
4. Other
(V) Reasonable
-813,224.42 -314,630.12 -1,127,854.54
reserve
1. Withdrawal in the
16,421,979.63 2,104,124.88 18,526,104.51
report period
2. Usage in the report
17,235,204.05 2,418,755.00 19,653,959.05
period
(VI)Others
IV. Balance at the end
1,008,950,570.00 3,417,841,402.89 144,722,827.51 89,005.19 510,100,496.00 7,845,639,990.88 471,086,098.05 13,398,430,390.52
of the report period
20
无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
8. Statement of Changes in Owners’ Equity (Parent Company)
This period
In RMB
This period
Other equity
Less
instrument
:
Perp Inve Other
Item Pref Reasonable
etual
Share capital erre Capital reserve ntor comprehensive Surplus reserve Retained profit Total owners’ equity
capit Othe reserve
d
al r y income
stoc
secu
k shar
rities
es
I. Balance at the end of the last year 1,008,950,570.00 3,448,408,786.39 144,722,827.51 510,100,496.00 5,525,644,079.79 10,637,826,759.69
Add: Changes of accounting policy
Error correction of the last period
Other
II. Balance at the beginning of this
1,008,950,570.00 3,448,408,786.39 144,722,827.51 510,100,496.00 5,525,644,079.79 10,637,826,759.69
year
III. Increase/ Decrease in this year
-39,797,212.50 1,335,261,087.71 1,295,463,875.21
(Decrease is listed with “-”)
(i) Total comprehensive income -39,797,212.50 1,940,631,429.71 1,900,834,217.21
(ii) Owners’ devoted and decreased
capital
1.Common shares invested by
shareholders
2. Capital invested by holders of other
21
无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
equity instruments
3. Amount reckoned into owners
equity with share-based payment
4. Other
(III) Profit distribution -605,370,342.00 -605,370,342.00
1. Withdrawal of surplus reserves
2. Distribution for owners (or
-605,370,342.00 -605,370,342.00
shareholders)
3. Other
(IV) Carrying forward internal
owners’ equity
1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed to
capital (share capital)
3. Remedying loss with surplus
reserve
4. Other
(V) Reasonable reserve
1. Withdrawal in the report period 1,968,399.95 1,968,399.95
2. Usage in the report period 1,968,399.95 1,968,399.95
(VI)Others
IV. Balance at the end of the report
1,008,950,570.00 3,448,408,786.39 104,925,615.01 510,100,496.00 6,860,905,167.50 11,933,290,634.90
period
22
无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
Last period
In RMB
Last period
Other equity
Less
instrument
:
Perp Inve Other
Item Pref Reasonable
etual
Share capital erre Capital reserve ntor comprehensive Surplus reserve Retained profit Total owners’ equity
capit Othe reserve
d
al r y income
stoc
secu
k shar
rities
es
I. Balance at the end of the last year 1,008,950,570.00 3,427,939,852.32 188,436,372.50 510,100,496.00 4,707,458,645.89 9,842,885,936.71
Add: Changes of accounting policy
Error correction of the last period
Other
II. Balance at the beginning of this
1,008,950,570.00 3,427,939,852.32 188,436,372.50 510,100,496.00 4,707,458,645.89 9,842,885,936.71
year
III. Increase/ Decrease in this year
20,468,934.07 -43,713,544.99 818,185,433.90 794,940,822.98
(Decrease is listed with “-”)
(i) Total comprehensive income -43,713,544.99 1,322,660,718.90 1,278,947,173.91
(ii) Owners’ devoted and decreased
20,468,934.07 20,468,934.07
capital
1.Common shares invested by
shareholders
2. Capital invested by holders of other
equity instruments
3. Amount reckoned into owners
23
无锡威孚高科技集团股份有限公司 2017 年半年度财务报告
equity with share-based payment
4. Other 20,468,934.07 20,468,934.07
(III) Profit distribution -504,475,285.00 -504,475,285.00
1. Withdrawal of surplus reserves
2. Distribution for owners (or
-504,475,285.00 -504,475,285.00
shareholders)
3. Other
(IV) Carrying forward internal
owners’ equity
1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed to
capital (share capital)
3. Remedying loss with surplus
reserve
4. Other
(V) Reasonable reserve
1. Withdrawal in the report period 3,396,256.71 3,396,256.71
2. Usage in the report period 3,396,256.71 3,396,256.71
(VI)Others
IV. Balance at the end of the report
1,008,950,570.00 3,448,408,786.39 144,722,827.51 510,100,496.00 5,525,644,079.79 10,637,826,759.69
period
24
I I I . Basic information of the Company
1. Historical origin of the Company
By the approval of STGS (1992) No. 130 issued by Jiangsu Economic Restructuring Committee, Weifu
High-Technology Group Co., Ltd. (hereinafter referred to “the Company” or “Company”) was established as a
company of limited liability with funds raised from targeted sources, and registered at Wuxi Administration for
Industry & Commerce in October 1992. The original share capital of the Company totaled RMB 115.4355 million,
including state-owned share capital amounting to RMB 92.4355 million, public corporate share capital amounting
to RMB 8 million and inner employee share capital amounting to RMB 15 million.
Between year of 1994 and 1995, the Company was restructured and became a holding subsidiary of Wuxi Weifu
Group Co., Ltd (hereinafter referred to as “Weifu Group”).
By the approval of Jiangsu ERC and Shenzhen Securities Administration Office in August 1995, the Company
issued 68 million special ordinary shares (B-share) with value of RMB 1.00 for each, and the total value of those
shares amounted to RMB 68 million. After the issuance, the Company’s total share capital increased to RMB
183.4355 million.
By the approval of CSRC in June 1998, the Company issued 120 million RMB ordinary shares (A-share) at
Shenzhen Stock Exchange through on-line pricing and issuing. After the issuance, the total share capital of the
Company amounted to RMB 303.4355 million.
In the middle of 1999, deliberated and approved by the Board and Shareholders’ General Meeting, the Company
implemented the plan of granting 3 bonus shares for each 10 shares. After that, the total share capital of the
Company amounted to RMB 394.46615 million, of which state-owned shares amounted to RMB 120.16615
million, public corporate shares RMB 10.4 million, foreign-funded shares (B-share) RMB 88.40 million, RMB
ordinary shares (A-share) RMB 156 million and inner employee shares RMB 19.5 million.
In the year 2000, by the approval of the CSRC and based upon the total share capital of 303.4355 million shares
after the issuance of A-share in June 1998, the Company allotted 3 shares for each 10 shares, with a price of RMB
10 for each allotted share. Actually 41.9 million shares was allotted, and the total share capital after the allotment
increased to RMB 436.36615 million, of which state-owned corporate shares amounted to RMB 121.56615
million, public corporate shares RMB 10.4 million, foreign-funded shares (B-share) RMB 88.4 million and RMB
ordinary shares (A-share) RMB 216 million.
In April 2005, Board of Directors of the Company has examined and approved 2004 Profit Pre-distribution Plan,
and examined and approved by 2004 Shareholders’ General Meeting , the Company distributed 3 shares for each
无锡威孚高科技集团股份有限公司 2017 年半年度报告
10 shares to the whole shareholders totaling to 130,909,845 shares in 2005.
According to the Share Merger Reform Scheme of the Company that passed by related shareholders’ meeting of
Share Merger Reform and SGZF [2006] No.61 Reply on Questions about State-owned Equity Management in
Share Merger Reform of Weifu High-Technology Co., Ltd. issued by State-owned Assets Supervision &
Administration Commission of Jiangsu Province, the Weifu Group etc. 8 non-circulating shareholders arranged
pricing with granting 1.7 shares for each 10 shares to circulating A-share shareholders (totally granted 47,736,000
shares), so as to realize the originally non-circulating shares can be traded on market when satisfied certain
conditions, the scheme has been implemented on April 5, 2006.
On 27 May 2009, Weifu Group satisfied the consideration arrangement by dispatching 0.5 shares for each 10
shares based on the number of circulating A shares as prior to Share Merger Reform, according to the aforesaid
Share Merger Reform, with an aggregate of 14,039,979 shares dispatched. Subsequent to implementation of
dispatch of consideration shares, Weifu Group then held 100,021,999 shares of the Company, representing
17.63% of the total share capital of the Company.
Pursuant to the document (XGZQ(2009)No.46) about “Approval for Merger of Wuxi Weifu Group Co., Ltd. by
Wuxi Industry Development Group Co., Ltd.” issued by the State-owned Assets Supervision and Administration
Commission of Wuxi City Government, Wuxi Industry Development Group Co., Ltd. (hereinafter referred to as
Wuxi Industry Group) acquired Weifu Group. After the merger, Weifu Group was then revoked, and its assets and
credits & debts were transferred to be under the name of Wuxi Industry Group. Accordingly, Wuxi Industry
Group became the first largest shareholder of the Company since then.
In accordance with the resolutions of shareholders' meeting and provisions of amended constitution, and approved
by [2012] No. 109 document of China Securities Regulatory Commission, in Feb., the Company issued RMB
ordinary shares (A-share) of 112,858,000 shares to Wuxi Industry Groups and overseas strategic investor,
ROBERT BOSCH GMBH (hereinafter referred to as Germany BOSCH), face value was RMB 1 Yuan per share,
added registered capital of RMB112,858,000 Yuan , and the registered capital after change was RMB
680,133,995 Yuan. Wuxi Industry Group is the first majority shareholder of the Company, and Germany BOSCH
is the second majority shareholder of the Company.
In March 2013, the profit distribution re-plan for year of 2012 was deliberated and approved by the Board, and
also passed in Annual General Meeting 2012 of the Company in May 2013. On basis of total share capital
680,133,995 shares, distribute 5-share for every 10 shares held by whole shareholders, 340,066,997 shares in total
are distributed. Total share capital of the Company amounting RMB 1,020,200,992 up to 31 December 2013.
Deliberated and approved by the company’s first extraordinary general meeting in 2015, the company has
26
无锡威孚高科技集团股份有限公司 2017 年半年度报告
repurchased 11,250,422 shares of A shares from August 26, 2015 to September 8, 2015, and has 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 (capital) becomes RMB 1,008,950,570 Yuan after the change.
2. Registered place, organization structure and head office of the Company
Registered place and head office of the Company: No.5, Huashan Road, New District, Wuxi City
Registered number: 91320200250456967N
The Company sets up Shareholders’ General Meeting, the Board of Directors and the Supervisory Committee.
The Company sets up Administration Department, Engineering Technology Research Institution, Human
Resources Department, Office of the Board, Risk Management Department, Information Systems Department,
Market & Strategy Plan Department, Party-masses Security Department, Finance Control Department, Project
Purchase Department, Manufacturing Quality Department, MS Business Segment, AC Business Segment, and
subsidiaries such as Wuxi Weifu Leader Catalytic Converter Co., Ltd., Nanjing Weifu Jinning Co., Ltd., and Wuxi
Weifu Automotive Diesel System Co., Ltd.
3. Business nature and major operation activities of the Company
Operation scope of parent company: technological development and consultancy service of machinery industry，
manufacture of engine fuel oil system products, fuel oil system testers and equipment; manufacture of automotive
electronics components and automotive electrical appliance components; manufacture of non-standard equipment
and non-standard cutter; manufacture of after treatment system; sales of energy-oriented machinery, hardware &
electric materials, chemical products and raw materials (other than chemical dangerous). Auto spare parts, autos
(other than autos under-9 seats); repair of engine; lease of company-owned house; import and export business in
respect of diversified commodities and technologies (other than those commodities and technologies limited or
forbidden by the State for import and export) by self-operation and works as agent for such business.
Major subsidiaries respectively activate in production and sales of engine accessories, auto spare parts, mufflers,
and purifiers.
4. Relevant party offering approval reporting of financial statements and date thereof
Financial statements of the Company were approved by the Board of Directors for reporting dated 23 August
2017.
5. Scope of consolidate financial statement
Shareholding ratio (%) Proportion Registered Statement
Shortname of capital (in 10
Name of subsidiary of votes Business scope consolidate
subsidiary Directly Indirectly thousand
(%) (Y/N)
Yuan)
Internal-combust
Nanjing Weifu Jinning Co., Ltd. Weifu Jinning 80.00 -- 80.00 34,628.70 ion engine and Y
accessories
27
无锡威孚高科技集团股份有限公司 2017 年半年度报告
Wuxi Weifu Leader Catalytic Purifier and
Weifu Leader 94.81 -- 94.81 50,259.63 Y
Converter Co., Ltd. muffler
Internal-combust
Weifu Mashan Pump Glib Co.,
Weifu Mashan 100.00 -- 100.00 16,500 ion engine and Y
Ltd.
accessories
Internal-combust
Wuxi Weifu Chang’an Co., Ltd. Weifu Chang’an 100.00 -- 100.00 21,000.00 ion engine and Y
accessories
Internal-combust
Wuxi Weifu Automotive Diesel Weifu Diesel
100.00 -- 100.00 30,000 ion engine and Y
System Co., Ltd. System
accessories
Weifu
Wuxi Weifu International Trade International
International 100.00 -- 100.00 3,000 Y
Co. Ltd. trade
Trade
Internal-combust
Wuxi Weifu ITM Supercharging
Weifu ITM 100.00 -- 100.00 16,000 ion engine and Y
Technique Co., Ltd.
accessories
Internal-combust
Wuxi Weifu Schmidt Power
Weifu Schmidt 66.00 -- 66.00 4,800 ion engine and Y
System Spare Parts Co., Ltd.
accessories
Internal-combust
Ningbo Weifu Tianli
Weifu Tianli 47.9436 -- 47.9436 11,136 ion engine and Y
Supercharging Technique Co., Ltd.
accessories
Internal-combust
Anhui Weifu Tianshi Machinery
Weifu Tianshi 52.00 -- 52.00 1,000 ion engine and Y
Co., Ltd.
accessories
Internal-combust
Kunming Xitong Machinery Co.,
Kunming Xitong 70.00 -- 70.00 400 ion engine and Y
Ltd.
accessories
Wuxi Weifu-Autocam Fine
Weifu Autocam 51.00 -- 51.00 USD1,510 Auto parts Y
Machinery Co. Ltd.
Wuxi Weifu Leader Catalytic Weifu Leader Purifier and
-- 60.00 60.00 1,000.00 Y
Converter (Wuhan) Co., Ltd. (Wuhan) muffler
(1) The voting rights of Weifu Tianli hold by the Company is not over 50%, however, Weifu Tianli still included
in the consolidation scope, mainly due to the Company substantially control Weifu Tianli, found more in the “1.
Equity in subsidiary” in Note IX.
(2) Subsidiary Kunming Xitong and Weifu Tianshi cancelled respectively dated 16 Feb. 2017 and 14 March 2017;
IV. Basis of preparation of financial statements
1. Preparation base
The financial statement were stated in compliance with Accounting Standard for Business Enterprises –Basic
Norms issued by Ministry of Finance, the specific 41 accounting rules revised and issued dated 15 February 2006
and later, 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 (Amended in 2014) issued by CSRC in respect of the actual transactions and
proceedings, on a basis of ongoing operation.
28
无锡威孚高科技集团股份有限公司 2017 年半年度报告
In line with relevant regulations of Accounting Standards of Business Enterprise, accounting of the Company is
on accrual basis. Except for certain financial instruments, the financial statement measured on historical cost.
Assets have impairment been found, corresponding depreciation reserves shall accrual according to relevant rules.
2. Going concern
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 reporting period.
V. Major Accounting Policies and Estimation
Specific accounting policies and estimation attention:
The Company and its subsidiaries are mainly engaged in the manufacture and sales of engine fuel oil system
products, Auto spare parts, mufflers and purifiers etc., in line with the real operational characteristics and relevant
accounting standards, many specific accounting policies and estimation have been formulated for the transactions
and events with revenue recognized concerned. As for the explanation on major accounting judgment and
estimation, found more in “28 Other major accounting policies and estimation”.
1. Statement on observation of Accounting Standard for Business Enterprises
Financial statements prepared by the Company were in accordance with requirements of Accounting Standard for
Business Enterprises, which truly and completely reflected the financial information of the Company, such as
financial position, operation achievements and cash flow.
2. Accounting period
Accounting period of the Company consist of annual and mid-term, mid-term refers to the reporting period shorter
than one annual accounting year. The company adopts Gregorian calendar as accounting period, namely form each
1 January to 31 December.
3. Business cycles
Normal business cycle is the period from purchasing assets used for process by the Company to the cash and cash
equivalent achieved. The Company’s normal business cycle was one-year (12 months).
4. Recording currency
The Company’s reporting currency is the RMB Yuan.
5. Accounting Treatment Method for Business Combinations
Business combination is the transaction or events that two or two above independent enterprises combined as a
29
无锡威孚高科技集团股份有限公司 2017 年半年度报告
reporting entity. Business combination including enterprise combined under the same control and business
combined under different control.
(1) The business combination under the same control
Enterprise combination under the same control is the enterprise who take part in the combination are have the
same ultimate controller or under the same controller, the control is not temporary. The assets and liability
acquired by combining party are measured by book value of the combined party on combination date. Balance of
net asset’s book value acquired by combining party and combine consideration paid (or total book value of the
shares issued), shall adjusted capital reserve (share premium); if the capital reserves (share premium) is not
enough for deducted, adjusted for retained earnings. Vary directly expenses occurred for enterprise combination,
the combining party shall reckoned into current gains/losses while occurring. Combination day is the date when
combining party obtained controlling rights from the combined party.
(2) Combine not under the same control
A business combination not involving entities under common control is a business combination in which all of the
combining entities are not ultimately controlled by the same party or parties both before and after the combination.
As a purchaser, fair value of the assets (equity of acquiree held before the date of purchasing included) for
purchasing controlling right from the actuiree, the liability occurred or undertake on purchasing date less the fair
value of identifiable net assets of the acuquiree obtained in combination, recognized as goodwill if the results is
positive; if the number is negative, the acquirer shall firstly review the measurement of the fair value of the
identifiable assets obtained, liabilities incurred and contingent liabilities incurred, as well as the combination costs.
After that, if the combination costs are still lower than the fair value of the identifiable net assets obtained, the
acquirer shall recognize the difference as the profit or loss in the current period. Other directly expenses cost for
combination shall be reckoned into current gains/losses. Difference of the fair value of assets paid and its book
values, reckoned into current gains/losses. On purchasing date, the identifiable assets, liability or contingency of
the acquiree obtained by the Company recognized by fair value, that required identification conditions;
Acquisition date refers to the date on which the acquirer effectively obtains control of the acquiree.
6. Preparation method for consolidated financial statement
(1) Recognition principle of consolidated scope
On basis of the financial statement of the parent company and owned subsidiaries, prepared consolidated
statement in line with relevant information. The scope of consolidation of consolidated financial statements is
ascertained on the basis of effective control. Once certain elements involved in the above definition of control
change due to changes of relevant facts or circumstances, the Company will make separate assessment.
(2) Basis of control
Control is the right to govern an investee so as to obtain variable return through participating in the investee’s
30
无锡威孚高科技集团股份有限公司 2017 年半年度报告
relevant activities and the ability to affect such return by use of the aforesaid right over the investee. Relevant
activities refers to the activities have major influence on return of the investee’s.
(3) Consolidation process
Subsidiaries are consolidated from the date on which the company obtains their actual control, and are
deconsolidated from the date that such control ceases. All significant inter-group balances, investment,
transactions and unrealized profits are eliminated in the consolidated financial statements. For subsidiaries being
disposed, the operating results and cash flows prior to the date of disposal are included in the consolidated income
statement and consolidated cash flow statement; for subsidiaries disposed during the period, the opening balances
of the consolidated balance sheet would not be restated. For subsidiaries acquired from a business combination
not under common control, their operating results and cash flows subsequent to the acquisition date are included
in the consolidated income statement and consolidated cash flow statement, and the opening balances and
comparative figures of the consolidated balance sheet would not be restated. For subsidiaries acquired from a
business combination under common control, their operating results and cash flows from the date of
commencement of the accounting period in which the combination occurred to the date of combination are
included in the consolidated income statement and consolidated cash flow statement, and the comparative figures
of the consolidated balance sheet would be restated.
In preparing the consolidated financial statements, where the accounting policies or the accounting periods are
inconsistent between the company and subsidiaries, the financial statements of subsidiaries are adjusted in
accordance with the accounting policies and accounting period of the company.
Concerning the subsidiary obtained under combination with different control, adjusted several financial statement
of the subsidiary based on the fair value of recognizable net assets on purchased day while financial statement
consolidation; concerning the subsidiary obtained under combination with same control, considered current status
of being control by ultimate controller for consolidation while financial statement consolidation.
The unrealized gains and losses from the internal transactions occurred in the assets the Company sold to the
subsidiaries fully offset "the net profit attributable to the owners of the parent company". The unrealized gains and
losses from the internal transactions occurred in the assets the subsidiaries sold to the Company are distributed and
offset between "the net profit attributable to the owners of the parent company" and "minority interest" according
to the distribution ratio of the Company to the subsidiary. The unrealized gains and losses from the internal
transactions occurred in the assets sold among the subsidiaries are distributed and offset between "the net profit
attributable to the owners of the parent company" and "minority interest" according to the distribution ratio of the
Company to the subsidiary of the seller.
The share of the subsidiary’s ownership interest not attributable to the Company is listed as “minority interest”
item under the ownership interest in the consolidated balance sheet. The share of the subsidiary’s current profit or
loss attributable to the minority interests is listed as "minority interest" item under the net profit item in the
consolidated income statement. The share of the subsidiary’s current consolidated income attributable to the
minority interests is listed as the “total consolidated income attributable to the minority shareholders” item under
the total consolidated income item in the consolidated income statement. If there are minority shareholders, add
31
无锡威孚高科技集团股份有限公司 2017 年半年度报告
the "minority interests" item in the consolidated statement of change in equity to reflect the changes of the
minority interests. If the losses of the current period shared by a subsidiary’s minority shareholders exceed the
share that the minority shareholders hold in the subsidiary ownership interest in the beginning of the period, the
balance still charges against the minority interests.
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 interest is re-measured on the date when the control ceased. The difference between
the sum of the consideration received from disposal of equity interest and the fair value of the remaining equity
interest, 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
acquiree 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 equity interests 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”.
The company shall determine whether loss of control arising from disposal in a series of transactions should be
regarded as a bundle of transactions. When the economic effects and terms and conditions of the disposal
transactions met one or more of the following situations, the transactions shall normally be accounted for as a
bundle of transactions: ①The transactions are entered into after considering the mutual consequences of each
individual transaction; ② The transactions need to be considered as a whole in order to achieve a deal in
commercial sense; ③The occurrence of an individual transaction depends on the occurrence of one or more
individual transactions 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
a bundle of transactions, 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
lead to loss of control”. When the transactions are regarded as a bundle of transactions, 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.
7. Joint arrangement classification and accounting treatment for joint operations
In accordance with the Company’s rights and obligation under a joint arrangement, the Company classifies joint
arrangements into: joint ventures and joint operations.
The company confirms the following items related to the share of interests in its joint operations, and in
accordance with the provisions of the relevant accounting standards for accounting treatment:
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(1) Recognize the assets held solely by the Company, and recognize assets held jointly by the Company in
appropriation to the share of the Company;
(2) Recognize the obligations assumed solely by the Company, and recognize obligations assumed jointly by the
Company in appropriation to the share of the Company;
(3) Recognize revenue from disposal of the share of joint operations of the Company;
(4) Recognize fees solely occurred by Company;
(5) Recognize fees from joint operations in appropriation to the share of the Company.
8. Determining standards for cash and cash equivalent
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.
9. Foreign currency business and conversion
The occurred foreign currency transactions are converted into the recording currency in accordance with the
middle rate of the market exchange rate published by the People's Bank of China on the transaction date. Thereinto,
the occurred foreign currency exchange or transactions involved in the foreign currency exchange are converted in
accordance with the actual exchange rate in the transactions.
At the balance sheet date, the account balance of the foreign currency monetary assets and liabilities is converted
into the recording currency amount in accordance with the middle rate of the market exchange rate published by
the People's Bank of China on the transaction date. The balance between the recording currency amount converted
according to exchange rate at the balance sheet date and the original recording currency amount is disposed as the
exchange gains or losses. Thereinto, the exchange gains or losses occurred in the foreign currency loans related to
the purchase and construction of fixed assets are disposed according to the principle of capitalization of borrowing
costs; the exchange gains and losses occurred during the start-up are included in the start-up costs; the rest is
included in the current financial expenses.
At the balance sheet date, the foreign currency non-monetary items measured with the historical costs are converted
in accordance with the middle rate of the market exchange rate published by the People's Bank of China on the
transaction date without changing its original recording currency amount; the foreign currency non-monetary items
measured with the fair value are converted in accordance with the middle rate of the market exchange rate
published by the People's Bank of China on the fair value date, and the generated exchange gains and losses are
included in the current profits and losses as the gains and losses from changes in fair value.
The following displays the methods for translating financial statements involving foreign operations into the
statements in RMB: The asset and liability items in the balance sheets for overseas operations are translated at the
spot exchange rates on the balance sheet date. Among the owners’ equity items, the items other than
“undistributed profits” are translated at the spot exchange rates of the transaction dates. The income and expense
items in the income statements of overseas operations are translated at the average exchange rates of the
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transaction dates. The exchange difference arising from the above mentioned translation are recognized in other
comprehensive income and is shown separately under owner’ equity in the balance sheet; such exchange
difference will be reclassified to profit or loss in current year when the foreign operation is disposed according to
the proportion of disposal.
The cash flows of overseas operations are translated at the average exchange rates on the dates of the cash flows.
The effect of exchange rate changes on cash is presented separately in the cash flow statement.
10. Financial instrument
Financial instrument is the contract that taken shape of the financial asses for an enterprise and of the financial
liability or equity instrument for other units.
(1) Classification and measurement on financial assets and financial liability
In terms of investment purposes and economic natures, the Company divides its financial assets into financial
assets (with its variation of fair value reckoned into current gains/losses), financial assets available for sale,
account receivables and held-to-maturity investments, among which, transactional financial asset is measured at
fair value and movement of its fair value is recorded in current gains and losses; financial asset available for sale
is measured at fair value and movement of its fair value is recorded in owners’ equity; account receivables and
held-to-maturity investments are measured at amortized cost.
In terms of economic nature, the Company divides its financial liabilities into two groups, namely financial
liabilities at fair value through gains and losses and other financial liabilities at amortized cost.
(2) Determination of fair values for financial assets and financial liabilities
The fair value refers to the price that will be received when selling an asset or the price to be paid to transfer a
liability in an orderly transaction between market participants on the date of measurement. Financial instruments
exist in an active market. Fair value is determined based on the quoted price in such market. An active market
refers to where pricing is easily and regularly obtained from exchanges, brokers, industrial organizations and price
fixing service organizations, representing the actual price of a market transaction that takes place in a fair deal.
While financial instruments do not exist in an active market, the fair value is determined using valuation
techniques. Valuation technologies include reference to be familiar with situation and prices reached in recent
market transactions entered into by both willing parties, reference to present fair values of similar other financial
instruments, cash flow discounting method and option pricing models.
As for the equity investment of the investee held by the Company, which has no controlling rights, common
control or significant influence (that is under the major influence), has no quota in an active market and the fair
value cannot be measure reasonably, than divided into financial assets available for sale and measured by cost.
(3) Recognition basis and measurement for transfer of financial assets
That the Company grants or delivers financial assets to party other than the issuer of such financial assets equals
transfer of financial assets. Financial assets transferred could be the entire or part of such financial assets. Two
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forms are listed as follows:
① Transfer of right for collecting cash flow of financial assets to another party;
② Transfer financial assets to another party, while the aforementioned right is retained, with obligation of paying
such cash flow to final collector
When that the Company has transferred almost all risks and remunerations arising from ownership of all or part
financial assets to another party, accordingly, recognition for such entire or part financial assets shall be ceased.
Gains and losses are determined by the received consideration less the carrying value of the transferred financial
assets. Meanwhile, the original accumulated gains or losses of financial assets recognized in the owners’ equity
shall transferred to gains and losses; when all risks and remunerations attached to ownership are retained,
recognition for such entire or part financial assets shall continue, and the consideration received shall be viewed as
financial liabilities.
As for the financial assets which the Company has neither transferred nor retained all risks and remunerations
attached to ownership of such financial assets, while control upon such financial assets still exists, recognition
shall be conducted in light of the degree of its continuous involvement in the transferred financial assets.
Accordingly, relevant liabilities shall be recognized.
(4) Recognition for termination of financial assets and liability
Upon satisfaction of one of the following condition, financial assets will immediately experience discontinued
recognition:
① Right entitled by contract in respect of collection of cash flow from such financial asset terminates.
② Such financial assets have been transferred and meet discontinued recognition condition for financial assets as
regulated by Accounting Standard for Enterprise No.23-Transfer of Financial Assets.
Only when present obligations under financial liability have been released entirely or partly, could cease
recognition of such financial liability or part thereof.
(5) Impairment of financial assets
The Company conducts inspection on carrying values of financial assets, except for transactional financial assets,
as at balance sheet date. If there is objective evidence indicating that impairment has happened to financial assets,
impairment reserve then shall be provided. Financial asset with great amount in single item is subject to separate
impairment test. In case of any objective evidence indicating that impairment has happened to such financial asset,
impairment loss shall be recognized and recorded in current gains and losses. As for the financial assets with no
great amount in single item and those which prove to be not impaired after separate test, the Company will
conduct impairment test on basis of credit portfolio which is determined in light of customers’ credit records and
historical bad debts, so as to recognize impairment loss.
Objective evidence indicating impairment happens to financial assets means the proceedings meeting the three
characteristics: actually occurred subsequent to initial recognition of such financial assets, bring influence over the
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estimated future cash flow of such financial assets, and such influence could be reliably measured by the
Company.
The followings are included in objective evidences indicating impairment happens to financial assets:
① Serious financial difficulty happens to issuer or debtor;
② Breach of terms of contract by debtor, such as breach or overdue in repaying interest or principal;
③ Creditor makes concession for debtors who experience financial trouble in light of consideration for economy
or laws;
④ Debtor is very likely to experience bankrupt or financial reorganization;
⑤ Financial assets are not able to be traded in active market since material financial difficulty happens to issuer;
⑥ It is unable to judge whether cash flow from certain asset in a group of financial assets has decreased, while it
is finally found that the estimated future cash flow of such financial asset has actually decreased since its initial
recognition and the decrease can be reliably measured by reference to the general valuation based on open data.
For example, payment capacity of debtor of such financial assets portfolio gradually worsens, or unemployment in
country or region where the debtor locates risen, price of guaranty falls greatly in the place where it locate, and the
industry in which it belongs to is unpromising;
⑦ Material negative changes happen to technologies, markets, economy or law environment in which debtor
operates, which leads to that equity instrument investor is not likely to be able to recover investment cost;
⑧ Fair value of equity instrument investment experiences severe or non-temporary falling;
⑨ Other objective evidence indicating impairment happens to financial assets.
In the event of impairment in financial asset at amortized cost, impairment loss is calculated based on the
difference between carrying value and present value of estimated future cash flow discounted at effective interest
rate.
After impairment loss is recognized for financial asset at amortized cost, if there is objective evidence indicating
value of such financial asset has recovered, which is objectively related to proceedings occurred after recognition
of such loss, the original impairment loss shall be reversed and recorded in current gains and losses. However, the
carrying value subsequent to such reversal shall not exceed the amortized cost of such financial asset as at the
reversal date on assumption that such impairment loss had not been provided.
Impairment of available-for-sale financial assets: in the event that decline in fair value of the available-for-sale
equity instrument is regarded as “severe decline” or “non-temporary decline” on the basis of comprehensive
related factors, it indicates that there is impairment loss of the available-for-sale equity instrument. In particular,
“severe decline” refers to fair value is lower than 50% of the cost price and last for over one year.
“Non-temporary decline” refers to fair value fell for over 6-month sessions.
When the available-for-sale financial assets impair, the accumulated loss originally included in the other
comprehensive income arising from the decrease in fair value was transferred out from the capital reserve and
included in the profit or loss for the period. The accumulated loss that transferred out from the capital reserve is
the balance of the acquired initial cost of asset, after deduction of the principal recovered, amortized amounts,
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current fair value and the impairment loss originally included in the profit or loss.
After recognition of the impairment loss, if there is objective evidence showing recovery in value of such financial
assets impaired and which is related to any event occurring after such recognition in subsequent periods, the
impairment loss originally recognized shall be reversed. The impairment loss reversal of the available-for-sale
equity instrument will be recognized as other comprehensive income, and the impairment loss reversal of the
available-for-sale debt instrument will be included in the profit or loss for the period.
When an equity investment that is not quoted in an active market and the fair value of which cannot be measured
reliably, or the impairment loss of a derivative financial asset linked to the equity instrument that shall be settled
by delivery of that equity instrument, then it will not be reversed.
11. Account Receivable
(1) Account Receivable withdrawal on single significant amount and with bad debt provision accrued for
single item
Determine basis or amount standards for single The Company’s account receivables with above RMB 1 million in single item
significant amount is defined as account receivables with significant amount in single item.
Withdrawal method for account with single In line with the difference of present value of future cash flow lower its book
significant amount and withdrawal single item bad value, carried out impairment test independently and withdrawal the bad debt
debt provision reserves
(2) Receivables with bad debt provision accrual by credit portfolio:
Bad debt
Combination
provision accrual
Classify to many combination based on credit portfolio for those receivables with minor account singly and
those with major amount but has no impairment been found after testing independently; base on the actual loss Age analysis
ratio of the receivables of previous years, with same or similar credit portfolio, and combining actual condition method
accrual bad debt reserves
In combination, accounts whose bad debts provision was accrued by age analysis:
√ Applicable □ Not applicable
Account age Rate for receivables Rate for other receivables
Within 1 year (one year included) 10.00% 10.00%
Within 6 months
6 months to 1 year 10.00% 10.00%
1－2 years 20.00% 20.00%
2－3 years 40.00% 40.00%
Over 3 years 100.00% 100.00%
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3－4 years 100.00% 100.00%
4－5 years 100.00% 100.00%
Over 5 years 100.00% 100.00%
In combination, withdrawal proportion of bad debt provision based on balance proportion
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods:
□ Applicable √ Not applicable
(3) Account receivable with minor single amount but with withdrawal bad debt provision for single item
Reasons for withdrawal single item The present value of future cash flow has major difference with the receivable group’s
bad debt provision present value of future cash flow
Withdrawal method for bad debt Carried out impairment test independently, accrual bad debt reserves according to the
provision difference of present value of future cash flow lower its book value
12. Inventories
Does the Company need to comply with the disclosure requirement of the special industry
No
(1) Classification of inventories
The Company’s inventories are categorized into stock materials, product in process and stock goods etc.
(2) Pricing for delivered inventories
A. Generally, stock materials are calculated at planned cost. Material cost difference is individually set according
to classification of grant types. Pursuant to the difference between the planned cost of the received or delivered
raw materials and the material cost the aforesaid cost should share after carrying forward at period-end, the
Company adjusts the planned cost to effective cost; finished products are priced at effective costs, and carried
forward to operating cost by weighted average method when being delivered;
B. Products in process are priced at effective costs, and carried forward to finished products at actually occurred
cost;
C. Finished self-produced products are priced at effective costs, and carried forward to operating cost by weighted
average method; external purchase goods (from import and export trades) are carried forward to sales cost by
individual pricing method.
(3) Recognition evidence for net realizable value of inventories and withdrawal method for inventory impairment
provision
Inventories as at period-end are priced at the lower of costs and net realizable values; at period end, on the basis of
overall clearance about inventories, inventory impairment provision is withdrew for uncollectible part of costs of
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inventories which result from destroy of inventories, out-of-time of all and part inventories, or sales price
lowering than cost. Inventory impairment provision for stock goods and quantity of raw materials is subject to the
difference between costs of single inventory item over its net realizable value. As for other raw materials with
large quantity and comparatively low unit prices, inventory impairment provision is withdrawn pursuant to
categories.
As for finished goods, commodities and materials available for direct sales, their net realizable values are
determined by their estimated selling prices less estimated sales expenses and relevant taxes. For material
inventories held for purpose of production, their net realizable values are determined by the estimated selling
prices of finished products less estimated costs, estimated sales expenses and relevant taxes accumulated till
completion of production. As for inventories held for implementation of sales contracts or service contracts, their
net realizable values are calculated on the basis of contract prices. In the event that inventories held by a company
exceed order amount as agreed in sales contracts, net realizable values of the surplus part are calculated on the
basis of normal sale price.
(4) Inventory system
Perpetual Inventory System is adopted by the Company and takes a physical inventory.
(5) Amortization of low-value consumables and wrappage
① Low-value consumables
The Company adopts one-off amortization method to amortize the low-value consumables.
② Wrappage
The Company adopts one-off amortization method to amortize the wrappage at the time of receipt.
13. Classified as assets held for sale
The Company’s component (or non-current asset) will recognize as held-for-sale while satisfied the followed
conditions simultaneously: the component can be promptly sold at its existing status only according to the practice
terms in connection with disposal of this kind of assets; the Company has already made resolution on disposal of
such component, such as approved by shareholders in line with regulations, have already approved by general
meeting or relevant authority; the Company entered into irrevocable transfer agreement with the transferee; and
this transfer will be completed within one year.
Book value of the assets held-for-sale shall be adjusted on recoverable amounts (no more than the original book
value while qualify held-for-sale conditions), the exceed parts from original book value and recoverable amounts
after adjusted shall considered as assets impairment loss reckoned into current gains/losses. Held-for-sale fixed
assets and intangible assets would be not applicable to depreciation or amortization, and would be measured at the
lower of its carrying value less disposal cost and fair value less disposal cost.
If classified as held for sale no longer meets the recognition condition as non-current asset held for sale or
disposal group, the Company will cease such recognition and measure the asset at the lower of the following two
items:
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(1) The carrying value of the asset or disposal group prior to being classified as held for sale, based on the amount
adjusted with the depreciation, amortization or impairment which should have been recognized assuming it had
not been classified as held for sale;
(2) The recoverable amount on the date when the Company decides to cease disposal.
14. Long-term equity investment
Long-term equity investments refer to long-term equity investments in which the Company has control, joint
control or significant influence over the investee. Long-term equity investment without control or joint control or
significant influence of the Group is accounted for as available-for-sale financial assets or financial assets
measured at fair value with any change in fair value charged to profit or loss.
(1) Determination of initial investment cost
Investment costs of the long-term equity investment are recognized by the follow according to different way of
acquirement:
① 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 resulted 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 treat as “transactions in a basket”. If they belong to “transactions in a basket”, these transactions will
be accounted for a transaction in obtaining control. If they are not belong to “transactions in a basket”, 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).
② For a long-term equity investment acquired through a business combination involving enterprises not under
common control, the initial investment cost of the long-term equity investment shall be the cost of combination on
the date of acquisition. Cost of combination includes the aggregate fair value of assets paid by the acquirer,
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
liabilities incurred or borne and equity securities issued. (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 “transactions in a basket”. If
they belong to “transactions in a basket”, these transactions will be accounted for a transaction in obtaining
control. If they are not belong to “transactions in a basket”, 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 investment cost. For previously held equity accounted for using
equity method, relevant other comprehensive income will not be accounted for. For previously held equity
investment classified as available-for-sale financial asset, the difference between its fair value and carrying
amount, as well as the accumulated movement in fair value previously included in the other comprehensive
income shall be transferred to profit or loss for the current period.) plus the combination cost measured by costs
which have directly connection with acquisition are considered as initial investment cost of such long-term equity
investment. Realizable assets and liabilities undertaken by such assets (including contingent liabilities) of the
party being combined as at the combination date are all measured at fair values, without consideration to amount
of minority interests. The surplus of combination cost less fair value net realizable assets of the party being
combined is recorded as goodwill, and the deficit is directly recognized in the consolidated statement of gains and
losses.
③ Long-term investments obtained through other ways:
A. Initial investment cost of long-term equity investment obtained through cash payment is determined according
to actual payment for purchase;
B. Initial investment cost of long-term equity investment obtained through issuance of equity securities is
determined at fair value of such securities;
C. Initial investment cost of long-term equity investment (exchanged-in) obtained through exchange with
non-monetary assets, which is of commercial nature, is determined at fair value of the assets exchanged-out;
otherwise determined at carrying value of the assets exchanged-out if it is not of commercial nature;
D. Initial investment cost of long-term equity investment obtained through debt reorganization is determined at
fair value of such investment.
(2) Subsequent measurement on long-term equity investment
① Presented controlling ability on investee, the investment shall use cost method for measurement.
② Long-term equity investments with joint control (excluding those constitute joint ventures) or significant
influence on the investee are accounted for using equity method.
Under the equity method, where the initial investment cost of a long-term equity investment exceeds the
investor’s interest in the fair value of the investee’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 investee’s identifiable net assets at the acquisition date, the difference shall be charged to
profit or loss for the current period, and the cost of the long term equity investment shall be adjusted accordingly.
Under the equity method, investment gain and other comprehensive income shall be recognized based on the
Group’s share of the net profits or losses and other comprehensive income made by the investee, respectively.
Meanwhile, the carrying amount of long-term equity investment shall be adjusted. The carrying amount of
long-term equity investment shall be reduced based on the Group’s share of profit or cash dividend distributed by
the investee. In respect of the other movement of net profit or loss, other comprehensive income and profit
distribution of investee, the carrying value of long-term equity investment shall be adjusted and included in the
capital reserves. The Group shall recognize its share of the investee’s net profits or losses based on the fair values
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of the investee’s individual separately identifiable assets at the time of acquisition, after making appropriate
adjustments thereto. In the event of inconformity between the accounting policies and accounting periods of the
investee and the Company, the financial statements of the investee shall be adjusted in conformity with the
accounting policies and accounting periods of the Company. Investment gain 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 gain or loss
arising from inter-group transactions shall be eliminated 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 investee is not eliminated to the extent that the loss is impairment loss of the transferred assets.
In the event that the Group disposed of an asset classified as operation to its joint ventures or associates, 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 included in
profit or loss for the current period. 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 included in profit or loss for the current period. 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 with “Accounting Standards for Business Enterprises No. 20 “Business combination”. All profit or
loss related to the transaction shall be accounted for.
The Group’s share of net losses of the investee shall be recognized to the extent that the carrying amount of the
long-term equity investment together with any long-term interests that in substance form part of the investor’s net
investment in the investee are reduced to zero. If the Group has to assume additional obligations, the estimated
obligation assumed shall be provided for and charged to the profit or loss as investment loss for the period. Where
the investee is making profits in subsequent periods, the Group shall resume recognizing its share of profits after
setting off against the share of unrecognized losses.
③ Acquisition of minority interest
Upon the preparation of the consolidated financial statements, since acquisition of minority interest increased of
long-term equity investment which was compared to fair value of identifiable net assets recognized which are
measured based on the continuous measurement since the acquisition date (or combination date) of subsidiaries
attributable to the Group calculated according to the proportion of newly acquired shares, the difference of which
recognized as adjusted capital surplus, capital surplus insufficient to set off impairment and adjusted retained
earnings.
④ Disposal of long-term equity investments
In these consolidated financial statements, for disposal of a portion of the long-term equity investments in a
subsidiary without loss of control, the difference between disposal cost and disposal of long-term equity
investments relative to the net assets of the subsidiary is charged to the owners’ equity. If disposal of a portion of
the long-term equity investments in a subsidiary by the parent company results in a change in control, it shall be
accounted for in accordance with the relevant accounting policies as described in Note V- 6 “Preparation Method
of the Consolidated Financial Statements”.
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 profit or loss in the current period.
In respect of long-term equity investment accounted for using equity method with the remaining equity interest
after disposal also accounted for using equity method, other comprehensive income previously under owners’
equity shall be accounted for in accordance with the same accounting treatment for direct disposal of relevant
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asset or liability by investee on pro rata basis at the time of disposal. The owners’ equity recognized for the
movement of other owners’ equity (excluding net profit or loss, other comprehensive income and profit
distribution of investee) shall be transferred to profit or loss for the current period on pro rata basis.
In respect of long-term equity investment accounted for using cost method with the remaining equity interest after
disposal also accounted for cost equity method, other comprehensive income measured and reckoned under equity
method or financial instrument before control of the investee unit acquired shall be accounted for in accordance
with the same accounting treatment for direct disposal of relevant asset or liability by investee on pro rata basis at
the time of disposal and shall be transferred to profit or loss for the current period on pro rata basis; among the net
assets of investee unit recognized by equity method (excluding net profit or loss, other comprehensive income and
profit distribution of investee) shall be transferred to profit or loss for the current period on pro rata basis.
In the event of loss of control over investee due to partial disposal of equity investment by the Group, in preparing
separate financial statements, the remaining equity interest which can apply common control or impose significant
influence over the investee after disposal shall be accounted for using equity method. Such remaining equity
interest shall be treated as accounting for using equity method since it is obtained and adjustment was made
accordingly. For remaining equity interest which cannot apply common control or impose significant influence
over the investee after disposal, it 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 control
shall be included in profit or loss for the current period. In respect of other comprehensive income recognized
using equity method or the recognition and measurement standard of financial instruments before the Group
obtained control over the investee, it shall be accounted for in accordance with the same accounting treatment for
direct disposal of relevant asset or liability by investee at the time when the control over investee is lost.
Movement of other owners’ equity (excluding net profit or loss, other comprehensive income and profit
distribution under net asset of investee accounted for and recognized using equity method) shall be transferred to
profit or loss for the current period at the time when the control over investee is lost. Of which, for the remaining
equity interest after disposal accounted for using equity method, other comprehensive income and other owners’
equity shall be transferred on pro rata basis. For the remaining equity interest after disposal accounted for using
the recognition and measurement standard 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 investee due to partial disposal of equity
investment by the Group, the remaining equity interest 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 profit or loss for the current
period. 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 investee at the time when equity method was ceased to be used. Movement of other owners’
equity (excluding net profit or loss, other comprehensive income and profit distribution under net asset of investee
accounted for and recognized using equity method) shall be transferred to profit or loss for the current period 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 “transactions in a basket”, 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 interest 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
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period upon loss of control.
(3) Impairment test method and withdrawal method for impairment provision
Found more in 20-”impairment of long-term investment”.
(4) Criteria of Joint control and significant influence
Joint control is the Company’s contractually agreed sharing of control over an arrangement, which relevant
activities of such arrangement must be decided by unanimously agreement from parties who share control. All the
participants or participant group whether have controlling over such arrangement as a group or not shall be judge
firstly, than judge that whether the decision-making for such arrangement are agreed unanimity by the participants
or not.
Significant influence is the power of the Company to participate in the financial and operating policy decisions of
an investee, but to fail to control or joint control the formulation of such policies together with other parties.
While recognizing whether have significant influence by investee, the potential factors of voting power as current
convertible bonds and current executable warrant of the investee held by investors and other parties shall be thank
over.
15. Investment real estate
Measurement mode
Measured by cost method
Depreciation or amortization method
Investment real estate is stated at cost. During which, the cost of externally purchased properties
held-for-investment includes purchasing price, relevant taxes and surcharges and other expenses which are
directly attributable to the asset. Cost of self construction of properties held for investment is composed of
necessary expenses occurred for constructing those assets to a state expected to be available for use. Properties
held for investment by investors are stated at the value agreed in an investment contract or agreement, but those
under contract or agreement without fair value are stated at fair value.
The Company adopts cost methodology amid subsequent measurement of properties held for investment, while
depreciation and amortization is calculated using the straight-line method according to their estimated useful lives.
The basis of provision for impairment of properties held for investment is referred to 20.-“Impairment of
long-term assets”
16. Fixed assets
(1) Confirmation conditions
Fixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, with a service life excess
one year and has more unit value.
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(2) Depreciation methods
Categories Method Years of depreciation Scrap value rate Yearly depreciation rate
House and Building Straight-line depreciation 20~35 5 2.71~4.75
Machinery equipment Straight-line depreciation 10 5 9.50
Transportation equipment Straight-line depreciation 4~5 5 19.00~23.75
Electronic and other equipment Straight-line depreciation 3～10 5 9.50～31.67
(3) Reorganization basis, valuation and depreciation method for financial lease assets
The Company affirms those that conform to below one or several criteria as the finance lease fixed assets: ①
Agreed in the lease contract (or made a reasonable judgment according to the correlated conditions on the lease
commencement date), the ownership of lease fixed assets can be transferred to the Company after the expiry of
the lease period; ②The Company has the option to purchase or lease the fixed assets, and the purchase price is
estimated to be much less than the fair value of the lease of fixed assets when exercises the options, so whether the
Company will exercise the option can be reasonably determined on the lease commencement date; ③Even
though the fixed asset ownership is not transferred, the lease term accounts for 75% of the service life of the lease
fixed assets; ④The present value of the Company of minimum lease payment on the lease commencement date is
equivalent to 90% or more of the fair value of the lease fixed assets on the lease commencement date; the present
value of the leaser’s of minimum lease payment on the lease commencement date is equivalent to 90% or more of
the fair value of the lease fixed assets on the lease commencement date; ⑤The leased assets with special
properties can only be used by the Company without major modifications. The fixed assets rented by finance
leases is calculated as the book value according to the lower one between the fair value of leased assets on the
lease commencement date and the present value of the minimum lease payments. (4) The impairment test method
of fixed assets and the method of provision for impairment see 20-“Long term asset impairment”.
17. Construction in process
From the date on which the fixed assets built by the Company come into an expected usable state, the projects
under construction are converted into fixed assets on the basis of the estimated value of project estimates or
pricing or project actual costs, etc. Depreciation is calculated from the next month. Further adjustments are made
to the difference of the original value of fixed assets after final accounting is completed upon completion of
projects.
The basis of provision for impairment of properties held for construction in process is referred to 20-“Impairment
of long-term assets”.
18. Borrowing costs
(1) Recognition of capitalization of borrowing costs
Borrowing costs comprise interest occurred, amortization of discounts or premiums, ancillary costs and exchange
differences in connection with foreign currency borrowings. The borrowing costs of the Company, which incur
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from the special borrowings occupied by the fixed assets that need more than one year (including one year) for
construction, development of investment properties or inventories or from general borrowings, are capitalized and
recorded in relevant assets costs; other borrowing costs are recognized as expenses and recorded in the profit or
loss in the period when they are occurred. Relevant borrowing costs start to be capitalized when all of the
following three conditions are met:
① Capital expenditure has been occurred;
② Borrowing costs have been occurred;
③ Acquisition or construction necessary for the assets to come into an expected usable state has been carried out.
(2) Period of capitalization of borrowing costs
Borrowing costs arising from purchasing fixed asset, investment real estate and inventory, and occurred after such
assets reached to its intended use of status or sales, than reckoned into assets costs while satisfy the above
mentioned capitalization condition; capitalization of borrowing costs shall be suspended and recognized as current
expenditure during periods in which construction of fixed assets, investment real estate and inventory are
interrupted abnormally, when the interruption is for a continuous period of more than 3 months, until the
acquisition, construction or production of the qualifying asset is resumed; capitalization shall discontinue when
the qualifying asset is ready for its intended use or sale, the borrowing costs occurred subsequently shall reckoned
into financial expenses while occurring for the current period.
(3) Measure of capitalization for borrowing cost
In respect of the special borrowings borrowed for acquisition, construction or production and development of the
assets qualified for capitalization, the amount of interests expenses of the special borrowings actually occurred in
the period less interest income derived from unused borrowings deposited in banks or less investment income
derived from provisional investment, are recognized.
With respect to the general borrowings occupied for acquisition, construction or production and development of
the assets qualified for capitalization, the capitalized interest amount for general borrowings is calculated and
recognized by multiplying a weighted average of the accumulated expenditure on the assets in excess of the
expenditure on the some assets of the special borrowings, by a capitalization rate for general borrowings. The
capitalization rate is determined by calculation of the weighted average interest rate of the general borrowings.
19. Intangible assets
(1) Measurement, use of life and impairment testing
① Measurement of intangible assets
The intangible assets of the Company including land use rights, patented technology and non-patents technology
etc.
The cost of a purchased intangible asset shall be determined by the expenditure actually occurred and other related
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costs.
The cost of an intangible asset contributed by an investor shall be determined in accordance with the value
stipulated in the investment contract or agreement, except where the value stipulated in the contract or agreement
is not fair.
The intangible assets acquired through exchange of non-monetary assets, which is commercial in substance, is
carried at the fair value of the assets exchanged out; for those not commercial in substance, they are carried at the
carrying amount of the assets exchanged out.
The intangible assets acquired through debt reorganization, are recognized at the fair value.
② Amortization methods and time limit for intangible assets:
Land use right of the company had average amortization by the transfer years from the beginning date of transfer
(date of getting land use light); Patented technology, non-patented technology and other intangible assets of the
Company are amortized evenly with the shortest terms among expected useful life, benefit years regulated in the
contract and effective age regulated by the laws. The amortization amount shall count in relevant assets costs and
current gains/losses according to the benefit object.
As for the intangible assets as trademark, with uncertain benefit terms, amortization shall not be carried.
Impairment testing methods and accrual for depreciation reserves for the intangible assets found more in
20-“Long-term assets impairment”.
(2) Internal accounting policies relating to research and development expenditures
Expenses incurred during the research phase are recognized as profit or loss in the current period; expenses
incurred during the development phase that satisfy the following conditions are recognized as intangible assets
(patented technology and non-patents technology):
① it is technically feasible that the intangible asset can be used or sold upon completion;
② there is intention to complete the intangible asset for use or sale;
③ the products produced using the intangible asset has a market or the intangible asset itself has a market;
④ there is sufficient support in terms of technology, financial resources and other resources in order to complete
the development of the intangible asset, and there is capability to use or sell the intangible asset;
⑤ the expenses attributable to the development phase of the intangible asset can be measured reliably.
If the expenses incurred during the development phase did not qualify the above mentioned conditions, such
expenses incurred are accounted for in the profit or loss for the current period. The development expenditure
reckoned in gains/losses previously shall not be recognized as assets in later period. The capitalized expenses in
development stage listed as development expenditure in balance sheet, and shall be transfer as intangible assets
since such item reached its expected conditions for service.
20. Impairment of long-term asset
The Company will judge if there is any indication of impairment as at the balance sheet date in respect of
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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 according to 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 based on the bid price. If there is neither sale agreement nor active market for an asset, fair value shall
be based on 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 using 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 individual asset, the Group shall determine the
recoverable amount of the asset group to which the asset belongs. The asset group is the smallest group of assets
capable of generating cash flows independently.
For the purpose of impairment testing, the carrying amount of goodwill presented separately in the financial
statements shall be allocated to the asset groups or group of assets benefiting from synergy of business
combination. If the recoverable amount is less than the carrying amount, the Group shall recognize an impairment
loss. The amount of impairment loss shall first reduce the carrying amount of any goodwill allocated to the asset
group or set of asset groups, and then reduce the carrying amount of other assets (other than goodwill) within the
asset group or set of asset groups, pro rata 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 restorable value.
21. Long-term deferred expenses
Long-term expenses to be amortized of the Company the expenses that are already charged and with the beneficial
term of more than one year are evenly amortized over the beneficial term. For the long-term deferred expense
items cannot benefit the subsequent accounting periods, the amortized value of such items is all recorded in the
profit or loss during recognition.
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22. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when the staff providing service to the Company, the short-term remuneration actual
occurred shall recognized as liability and reckoned into current gains/losses. During the accounting period when
staff providing service to the Company, the actual short-term compensation occurred shall recognized as liabilities
and reckoned into current gains/losses, except for those in line with accounting standards or allow to reckoned
into capital costs; the welfares occurred shall reckoned into current gains/losses or relevant asses costs while
actually occurred. The employee compensation shall recognize as liabilities and reckoned into current gains/losses
or relevant assets costs while actually occurred. The employee benefits that belong to non-monetary benefits are
measured in accordance with the 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 rule 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 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 included 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.
Thereinto, 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 to the independent fund; the defined benefit
plans refers to post-employment benefits plans except the defined contribution plan.
(3) Accounting for retirement benefits
When 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 profit or loss for the current period, 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
profit or loss by the Group if the recognition principles for provisions are satisfied.
(4) Accounting for other long-term employee benefits
Except for the compulsory insurance, the Company provides the supplementary retirement benefits to the
employees satisfying some conditions, the supplementary retirement benefits belong to the defined benefit plans,
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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 in
accordance with the expected accumulated welfare unit method by the independent actuary by adopting the
treasury bond rate with similar obligation term and currency. The service charges related to the 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.
23. Accrued liability
(1) Recognition principle
An obligation related to a contingency, such as guarantees provided to outsiders, pending litigations or arbitrations,
product warranties, redundancy plans, onerous contracts, reconstructing, expected disposal of fixed assets, etc.
shall be recognized as an estimated liability when all of the following conditions are satisfied:
① the obligation is a present obligation of the Company;
② it is Contingent that an outflow of economic benefits will be required to settle the obligation;
③ the amount of the obligation can be measured reliably.
(2) Measurement method: measure on the basis of the best estimates of the expenses necessary for paying off the
contingencies.
24. Revenue
Does the Company need to comply with the disclosure requirement of the special industry
No
(1) Concrete judging criteria for time of recognized
The major risks and remuneration entitled to the ownership of goods are transferred to buyer; neither retains the
continued management right generally related to ownership, nor exercise effective control over the sold products;
the relevant economic benefits are probable to flow into the Company; the relevant income and costs can be
measured reliably.
Concrete judging criteria for time of recognized the income from goods sales:
The Company's domestic sales revenue recognition time: The company delivers goods as agreed, checks the goods
that the buyers have received and inspected during the period of the last reconciliation date and this reconciliation
date with the buyers on the reconciliation date as agreed, and transfers the risks and remunerations to the buyers
after checking, the Company issues the invoices to the buyers in accordance with the recognized varieties,
quantities and amounts and affirms the sales revenue realization on the reconciliation date.
The Company's overseas sales revenue recognition time: After checking by the customs, the Company affirms the
sales revenue realization according to the date of departure on the customs declaration.
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
(2) Recognition of revenue of assets using right alienation
Revenue from use by others of enterprise assets shall be recognized only when the associated economic benefit
can flow into the Company, and the amount of revenue can be measured reliably, revenue measured by the follow:
① Interest income amount: Calculated and determined in accordance with the time that others use the enterprises
cash and the actual interest rate.
② Royalty revenue amount: Calculated and determined in accordance with the charging time and method of the
relevant contract or agreement as agreed.
The basis that the Company confirms the revenue from transferring the right to use assets
Rental income: the revenue realization is confirmed after collecting the rent on the date as agreed in the rental
contract (or agreement). For the rent not received on the date as agreed in the contract or agreement but can be
received, and of which the amount of revenue can be measured reliably can also be recognized as revenue.
(3) When confirming the incomes of labor services and construction contracts according to the percentage of
completion method, determine the basis and method of the contract completion plan.
For the service transaction results can be estimated reliably on the balance sheet date, the service revenue is
determined and recognized by adopting the percentage of completion method. The completion progress of service
transaction is determined by the proportion of incurred costs in the estimated total cost.
The total service revenue is determined by the received or receivable contract or agreement costs, except that the
received or receivable contract or agreement costs are not fair. On the balance sheet date, the service revenue of the
current period is determined by multiplying the total service revenue by the completion progress and deducting
the amount accumulated in the previous accounting period and confirmed to render the service revenue.
Meanwhile, the labor costs of the current period are carried forward by multiplying the total estimated costs of
labor services by the completion progress and deducting the amount accumulated in the previous accounting
period with confirmed service costs.
For the service transaction results cannot be estimated reliably on the balance sheet date, respectively dispose as
following circumstances:
①The incurred labor costs estimated to be compensated are confirmed to render the service revenue according to
the incurred labor costs, and are carried forward by the equivalent amount.
②The incurred labor costs estimated not to be compensated are reckoned in the current profits or losses, and are
not confirmed to render the service revenue.
25. Government grants
(1) Determination basis and accounting for government grants related to assets
(1) Types
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
Government grants are transfer of monetary assets or non-monetary assets from the government to the Group at
no consideration. Government grants are classified into government grants related to assets and government grants
related to income.
As for the assistance object not well-defined in government’s documents, the classification criteria for
assets-related or income-related grants are as: whether the grants turn to long-term assets due to purchasing for
construction or other means.
(2) Recognition
The government grants shall be recognized while meet the additional conditions of the grants and amount is
actually can be obtained.
If a government grant is in the form of a transfer of monetary asset, the item shall be measured at the amount
received or receivable. If a government grant is in the form of a transfer of non-monetary asset, the item shall be
measured at fair value.
(3) Accounting treatment
A government grant related to an asset shall be recognized as deferred income, and evenly amortized to profit or
loss over the useful life of the asset.
The government subsidy related to the daily activities of the enterprise shall be included in other income or offset
other relevant costs and expenses in accordance with the essence of the economic business, and the government
subsidy unrelated to the daily activities of the enterprise shall be included in the non-operating income and
expenditure.
(2) Determination basis and accounting for government grants related to income
(1) Types
Government grants are transfer of monetary assets or non-monetary assets from the government to the Group at
no consideration. Government grants are classified into government grants related to assets and government grants
related to income.
As for the assistance object not well-defined in government’s documents, the classification criteria for
assets-related or income-related grants are as: whether the grants turn to long-term assets due to purchasing for
construction or other means.
(2) Recognition
The government grants shall be recognized while meet the attache conditions of the grants and amount is actually
can be obtained.
If a government grant is in the form of a transfer of monetary asset, the item shall be measured at the amount
received or receivable. If a government grant is in the form of a transfer of non-monetary asset, the item shall be
measured at fair value.
(3) Accounting treatment
For a government grant related to income, if the grant is a compensation for related expenses or losses to be
incurred in subsequent periods, the grant shall be recognized as deferred income, and recognized in profit or loss
over the periods in which the related costs are recognized; if the grant is a compensation for related expenses or
losses already incurred, the grant shall be recognized immediately in profit or loss for the current period.
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
The government subsidy related to the daily activities of the enterprise shall be included in other income or offset
other relevant costs and expenses in accordance with the essence of the economic business, and the government
subsidy unrelated to the daily activities of the enterprise shall be included in the non-operating income and
expenditure.
26. Deferred tax assets / deferred income tax liabilities
(1) Deferred income tax assets or deferred income tax liabilities are realized based on the difference between the
carrying values of assets and liabilities and their taxation bases (as for the ones did not recognized as assets and
liability and with taxation basis recognized in line with tax regulations, different between tax base and its book
value) at the tax rates applicable in the periods when the Company recovers such assets or settles such liabilities.
(2) Deferred income tax assets are realized to the extent that it is probable to obtain such taxable income which is
used to set off the deductible temporary difference. As at the balance sheet date, if there is obvious evidence
showing that it is probable to obtain sufficient taxable income to set off the deductible temporary difference in
future periods, deferred income tax assets not realized in previous accounting periods shall be realized.
(3) On balance sheet date, re-review shall be made in respect of the carrying value of deferred income tax assets.
If it is impossible to obtain sufficient taxable income to set off the benefits of deferred income tax assets in future
periods, then the carrying value of deferred income tax assets shall be reduced accordingly. If it is probable to
obtain sufficient taxable income, then the amount reduced shall be switched back.
(4) Current income tax and deferred income tax considered as income tax expenses or incomes reckoned into
current gains/losses, excluding the follow income tax:
①Enterprise combination;
②Transactions or events recognized in owner’s equity directly.
27. Lease
(1) Accounting for operating lease
The rental fee paid for renting the properties by the company are amortized by the straight-line method and
reckoned in the current expenses throughout the lease term without deducting rent-free period. The initial direct
costs related to the lease transactions paid by the company are reckoned in the current expenses.
When the lessor undertakes the expenses related to the lease that should be undertaken by the company, the
company shall deduct the expenses from the total rental costs, share by the deducted rental costs during the lease
term, and reckon in the current expenses.
Rental obtained from assets leasing, during the whole leasing period without rent-free period excluded, shall be
amortized by straight-line method and recognized as leasing revenue. The initial direct costs paid with leasing
transaction concerned are reckoned into current expenditure; the amount is larger is capitalized when incurred,
and accounted for as profit or loss for the current period on the same basis as recognition of rental income over the
entire lease period.
When the company undertakes the expenses related to the lease that should be undertaken by the lessor, the
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
company shall deduct the expenses from the total rental income, and distribute by the deducted rental costs during
the lease term.
(2) Accounting for financing lease
Assets lease-in by financing: On the beginning date of the lease, the entry value of leased asset shall be at the
lower of the fair value of the leased asset and the present value of minimum lease payment at the beginning date
of the lease. Minimum lease payment shall be the entry value of long-term accounts payable, with difference
recognized as unrecognized financing expenses. Unrecognized financing expenses shall be reckoned in financial
expenses and amortized and using effective interest method during the leasing period. The initial direct costs
incurred by the Company shall be reckoned into value of assets lease-in.
Finance leased assets: on the lease commencement date, the company affirms the balance among the finance lease
receivables, the sum of unguaranteed residual value and its present value as the unrealized financing income, and
recognizes it as the rental income during the period of receiving the rent. For the initial direct costs related to the
rental transaction, the company reckons in the initial measurement of the finance lease receivables, and reduces
the amount of income confirmed in the lease term.
28. Other major accounting policy and accounting estimates
Significant accounting judgments and estimates
In the process of applying the Company's accounting policies, due to the inherent uncertainty of business activities,
the Company needs to judge, estimate and assume the book value of the report items cannot be accurately
measured. These judgments, estimates and assumptions are made on the basis of the historical experience of the
Company’s management and by considering other relevant factors, which shall impact the reported amounts of
income, expenses, assets and liabilities and the disclosure of contingent liabilities on the balance sheet date.
However, the actual results caused by the estimated uncertainties may differ from the management's current
estimates of the Company so as to carry out the significant adjustments to the book value of the assets or liabilities
to be affected.
The Company regularly reviews the aforementioned judgments, estimates and assumptions on the basis of
continuing operations, the changes in accounting estimates only affect the current period, of which the impacts are
recognized in the current period; the changes in accounting estimates not only affect the current period but also the
future periods, of which the impacts are recognized in the current and future periods.
On the balance sheet date, the important areas of the financial statements that the Company needs to judge, estimate
and assume are as follows:
(1) Provision for bad debts
According to the accounting policies of the accounts receivable, the Company adopts the allowance method to
calculate the bad debt losses. The impairment of receivables is based on the assessment to the collectability of the
accounts receivable. The impairment of accounts receivable requires the management’s judgments and estimates.
The actual results and the differences between the previously estimated results shall affect the book value of
accounts receivable and the provision or return of the receivables’ bad debt reserves during the period estimated to
be changed.
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
(2) Inventory impairment
According to the inventory accounting policies, the Company measures by the comparison between the cost and
the net realizable value, if the cost is higher than the net realizable value and the old and unsalable inventories, the
Company calculates and withdraws the inventory impairment. The inventory devalues to the net realizable value
by evaluating the inventory’s vendibility and net realizable value. To identify the inventory impairment, the
management needs to obtain the unambiguous evidences, and consider the purpose to hold the inventory, and
judge and estimate the impacts of events after the balance sheet date. The actual results and the differences
between the previously estimated results shall affect the book value of inventory and the provision or return of the
inventory impairment during the period estimated to be changed.
(3) Held-to-maturity investments
The Company classifies the non-derivative financial assets that meet the requirements, have the fixed or
ascertainable repayment amount and fixed due date, and that the Company has the positive intention and ability to
hold to maturity as the held-to-maturity investment. This classification involves a lot of judgments. In the process
of making the judgments, the Company will evaluate its willingness and ability to this held-to-maturity investment.
Except in certain cases (such as the investments with insignificant sales amount when the maturity date comes), if
the Company fails to hold these investments till the maturity date, then all the investments shall be reclassified to
the available-for-sale financial assets which cannot be classified as the held-to-maturity investments in this fiscal
year and the next two fiscal years. This kind of case may have a significant impact on the relevant financial assets
value listed on the financial statements, and may affect the Company's financial instruments risk management
strategy.
(4) Impairment of held-to-maturity investments
The Company determines that the impairment of held-to-maturity investments largely relies on management's
judgments. The objective evidences of impairment include that the issuer has serious financial difficulties so that
the financial assets cannot continue to be traded in an active market, or cannot be able to fulfill the contract terms
(for example, breach the contract of paying the interests or principal), etc. In the process of making the judgments,
the Company needs to evaluate the impact of the objective evidence of impairment to the expected future cash
flows of the investment.
(5) Impairment of financial assets available for sale
The Company determines that the impairment of held-to-maturity investments largely relies on management's
judgments and assumptions so as to determine whether it is needed to affirm its impairment loss in the profit
statement. In the process of making the judgments and assumptions, the Company needs to evaluate the extent and
duration when the fair value of the investment is less than the cost, as well as the financial situation and short-term
business prospects of the investees, including the industry conditions, technological change, credit rating, default
rates, and risks of the counterparty.
(6) Preparation for the impairment of non-financial & non-current assets
The Company checks whether the non-current assets except for the financial assets may decrease in value at the
balance sheet date. For the intangible assets with indefinite service life, in addition to the annual impairment test,
the impairment test is also needed when there is a sign of impairment. For the other non-current assets except for
the financial assets, the impairment test is needed when it indicates that the book amounts may not be recoverable.
55
无锡威孚高科技集团股份有限公司 2017 年半年度报告
When the book value of the asset or group of assets exceeds its recoverable amount, i.e. the higher between the net
amount by subtracting the disposal costs from the fair value and the present value of expected future cash flows, it
indicates the impairment.
As for the net amount by subtracting the disposal costs from the fair value, refer to the sales agreement price
similar to the assets in the fair trade or the observable market price, and subtract the incremental costs
determination directly attributable to the disposal of the asset.
When estimating the present value of the future cash flow, the Company needs to make significant judgments to
the output, price, and related operating expenses of the asset (or asset group) and the discount rate used for
calculating the present value. When estimating the recoverable amount, the Company shall adopt all the relevant
information can be obtained, including the prediction related to the output, price, and related operating expenses
based on the reasonable and supportable assumptions.
The Company tests whether its business reputation decreases in value every year, which requires to estimating the
present value of the asset group allocated with goodwill or the future cash flow combined by the asset group.
When estimating the present value of the future cash flow, the Company needs to estimate the future cash flows
generated by the asset group or the combination of asset group, and select the proper discount rate to determine the
present value of the future cash flows.
(7) Depreciation and amortization
The Company depreciates and amortizes the investment property, fixed assets and intangible assets according to
the straight-line method in the service life after considering the residual value. The Company regularly reviews the
service life to determine the depreciation and amortization expense amount to be reckoned in each reporting period.
The service life is determined by the Company based on the past experience of similar assets and the expected
technological updating. If the previous estimates have significant changes, the depreciation and amortization
expense shall be adjusted in future periods.
(8) Income tax
In the Company’s normal business activities, the final tax treatment and calculation of some transactions have some
uncertainties. Whether some projects can be disbursed from the cost and expenses before taxes requires needs to
get approval from the tax authorities. If the final affirmation of these tax matters differs from the initially estimated
amount, the difference shall have an impact on its current and deferred income taxes during the final identification
period.
(9) Early retirement benefits and supplementary retirement benefits
The expenses of the Company's early retirement benefits and supplementary retirement benefits and the amount of
liabilities are determined in accordance with various assumptions. These assumptions include the discount rate,
the average growth rate of health care costs, the subsidy growth rate of the early retired personnel and retirees and
the other factors. The differences between the actual results and assumptions will be immediately identified and
included in the costs of the current year. Although the management thought the reasonable assumptions have been
adopted, the changes in the actual experience and assumed conditions will impact the costs and liability balances
of the Company's internal early retirement benefits and supplementary retirement benefits.
56
无锡威孚高科技集团股份有限公司 2017 年半年度报告
29. Changes of important accounting policy and estimation
(1) Changes of major accounting policies
□ Applicable √ Not applicable
(2) Changes of important accounting estimate
□ Applicable √ Not applicable
VI. Taxation
1. Major taxes and tax rates
Tax Basis Tax rate
17%, 11%,6% and 5% charge rate; exportation goods are declare
VAT Taxable revenue export tax rebates on the tax refund rate regulated by the Country or
“exemption, counteraction, drawback”
City maintaining & construction tax Turnover tax payable 7%
Operation tax Taxable income 25%, 15%
Educational surtax Turnover tax payable 5%
Disclose reasons for different taxpaying body
Taxpaying body Income tax rate
Parent company of Weifu Hi-Technology 15%
Weifu Jinning 15%
Weifu Diesel System 15%
Weifu Leader 15%
Weifu Tianli 15%
Weifu Autocam 15%
Weifu Mashan 25%
Weifu Chang’an 25%
Weifu International Trade 25%
Weifu ITM 25%
Weifu Schmidt 25%
Kunming Xitong 25%
Weifu Tianshi 25%
Weifu Leader (Wuhan) 25%
57
无锡威孚高科技集团股份有限公司 2017 年半年度报告
2. Tax preference
On 2 September 2014, the Company got a “High-Tech Enterprise Certificate” issued jointly by Science &
Technology Department of Jiangsu Province, Department of Finance of Jiangsu Province, Jiangsu Provincial
Office, SAT and Jiangsu Local Taxation Bureau, certificate No.: GR201432001331. Corporate income tax of the
Company shall be taxed by 15% in three years since 1 January 2014 in accordance with State regulations.
On 2 September 2014, Weifu Jinning got a “High-Tech Enterprise Certificate” issued jointly by Science &
Technology Department of Jiangsu Province, Department of Finance of Jiangsu Province, Jiangsu Provincial
Office, SAT and Jiangsu Local Taxation Bureau, certificate No.: GR201432001794. Corporate income tax of the
Weifu Jinning shall be taxed by 15% in three years since 1 January 2014 in accordance with State regulations.
On 31 October 2014, Weifu Diesel System got a “High-Tech Enterprise Certificate” issued jointly by Science &
Technology Department of Jiangsu Province, Department of Finance of Jiangsu Province, Jiangsu Provincial
Office, SAT and Jiangsu Local Taxation Bureau, certificate No.: GR201432002594. Corporate income tax of the
Weifu Diesel System shall be taxed by 15% in three years since 1 January 2014 in accordance with State
regulations.
On 2 September 2014, Weifu Leader got a “High-Tech Enterprise Certificate” issued jointly by Science &
Technology Department of Jiangsu Province, Department of Finance of Jiangsu Province, Jiangsu Provincial
Office, SAT and Jiangsu Local Taxation Bureau, certificate No.: GR201432001480. Corporate income tax of the
Weifu Leader shall be taxed by 15% in three years since 1 January 2014 in accordance with State regulations.
On 25 September 2014, Weifu Tianli got a “High-Tech Enterprise Certificate” issued jointly by Science &
Technology Bureau of Ningbo, Department of Finance of Ningbo, Ningbo Office, SAT and Ningbo, Zhejiang
Provincial Local Taxation Bureau, certificate No.: GR201433100224. Corporate income tax of the Weifu Tianli
shall be taxed by 15% in three years since 1 January 2014 in accordance with State regulations.
On 31 October 2014, Weifu Autocam got a “High-Tech Enterprise Certificate” issued jointly by Science &
Technology Department of Jiangsu Province, Department of Finance of Jiangsu Province, Jiangsu Provincial
Office, SAT and Jiangsu Local Taxation Bureau, certificate No.: GF201432001254. Corporate income tax of the
Weifu Autocam shall be taxed by 15% in three years since 1 January 2014 in accordance with State regulations.
3. Other
VII. Notes to major items in consolidated financial statements
1. Monetary capital
In RMB
Item Closing balance Opening balance
Cash on hand 555,497.42 776,872.53
Cash in bank 1,740,566,305.85 3,893,357,790.61
58
无锡威孚高科技集团股份有限公司 2017 年半年度报告
Other monetary fund 105,716,273.30 75,539,405.42
Total 1,846,838,076.57 3,969,674,068.56
Other explanation
Item 2017-06-30 2016-12-31
Bank acceptance bill, L/C and other collateral 105,716,273.30 75,539,405.42
2. Note receivables
(1) Classification of notes receivable
In RMB
Item Closing balance Opening balance
Bank acceptance bill 1,065,807,104.55 1,150,084,383.06
Commercial acceptance bill 151,791,851.48 129,760,394.04
Total 1,217,598,956.03 1,279,844,777.10
(2) Notes receivable already pledged by the Company at the end of the period
In RMB
Item Amount pledge at period-end
Bank acceptance bill 47,896,098.81
Total 47,896,098.81
(3) Notes endorsement or discount and undue on balance sheet date
In RMB
Item Amount derecognition at period-end Amount not derecognition at period-end
Bank acceptance bill 641,309,775.02
Total 641,309,775.02
(4) Notes transfer to account receivable due for failure implementation by drawer at period-end: Nil
3. Accounts receivable
(1) Accounts receivable by category:
In RMB
Closing balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Types Book
Accru value Accru Book value
Amount Ratio Amount Amount Ratio Amount
al ratio al ratio
Account 1,112,231 0.08% 1,112,231.00 100.00
59
无锡威孚高科技集团股份有限公司 2017 年半年度报告
receivable with .00 %
single significant
amount and
withdrawal bad
debt provision
separately
Receivables with
bad debt provision 2,039,798,642 99.88 11,002,024. 2,028,796 1,332,696 99.75 1,324,703,54
0.54% 7,992,570.78 1.23%
accrual by credit .09 % 83 ,617.26 ,113.95 % 3.17
portfolio
Accounts with
single minor
amount but with 2,504,849.3 100.00 2,237,015 100.00
2,504,849.32 0.12% 0.17% 2,237,015.22
bad debts 2 % .22 %
provision accrued
individually
2,042,303,491 100.00 13,506,874. 2,028,796 1,336,045 100.00 11,341,817.0 1,324,703,54
Total 0.66% 1.78%
.41 % 15 ,617.26 ,360.17 % 0 3.17
Account receivable with single significant amount and withdrawal bad debt provision separately at period-end:
□ Applicable √ Not applicable
Account receivable provided for bad debt reserve under aging analysis method in the groups:
√ Applicable □ Not applicable
In RMB
Closing balance
Age
Account receivable Bad debt reserve Accrual ratio
Sub item of within one year
Within 6 months 1,986,842,361.70
6 months to 1 year 36,056,517.41 3,605,651.74 10.00%
Subtotal of within 1 year 2,022,898,879.11 3,605,651.74
1-2 years 9,932,102.59 1,986,420.53 20.00%
2-3 years 2,596,179.72 1,038,471.89 40.00%
Over 3 years 4,371,480.67 4,371,480.67 100.00%
Total 2,039,798,642.09 11,002,024.83 0.54%
Explanation on combination determines:
Excluding the account receivable accrual impairment provision separately; based on actual loss ratio of the
receivable groups that owes same or similar risk features, which has classify by age in previous years, determine
accrual ratio for bad debt provision combine with real condition.
In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable:
Nil
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 3,059,424.79 Yuan; the amount collected or switches back amounting to 457,384.50 Yuan.
60
无锡威孚高科技集团股份有限公司 2017 年半年度报告
Important bad debt provision collected or switch back:
Nil
(3) Account receivable actual charge off in the Period
In RMB
Item Amount written off
Changzhou Mengfa Fuel Injector Co., Ltd. 353,111.39
Cixi Sanhuan Diesel Co., Ltd. 33,901.01
Nanchang Yuqing Shengyuan Industrial Co., Ltd. 30,156.00
Dongying Branch of GAC Gonow Auto Co., Ltd 9,000.00
Chongqing Jikun Commerce Co., Ltd. 3,514.97
Urnmchi Kangweisen Commerce Co., Ltd. 7,299.77
Total 436,983.14
Written-off for the major receivable:
Nil
(4) Top 5 receivables at ending balance by arrears party
Total period-end balance of top five receivables by arrears party amounting to 927,684,181.13Yuan, takes 45.42 percent of the total
account receivable at period-end, bad debt provision accrual correspondingly at period-end amounting as 29,346.35 Yuan
(5) Account receivable derecognition due to financial assets transfer
Nil
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Nil
4. Advance payment
(1) Advance payment by age
In RMB
Closing balance Opening balance
Age
Amount Ratio Amount Ratio
Within one year 96,448,493.05 95.79% 70,920,782.92 95.80%
1-2 years 2,545,782.70 2.53% 2,014,547.03 2.72%
2-3 years 1,633,759.17 1.62% 1,095,156.43 1.48%
61
无锡威孚高科技集团股份有限公司 2017 年半年度报告
Over 3 years 62,088.88 0.06%
Total 100,690,123.80 -- 74,030,486.38 --
Explanation on reasons of failure to settle on important advance payment with age over one year:
Nil
(2) Top 5 advance payment at ending balance by prepayment object
Total period-end balance of top five advance payment by prepayment object amounting to 39,242,309.06 Yuan, takes 38.97 percent
of the total advance payment at period-end
5. Interest receivable
(1) Category
In RMB
Item Closing balance Opening balance
Time deposit 1,900,454.93 2,487,527.65
Total 1,900,454.93 2,487,527.65
(2) Major overdue interest
Nil
6. Dividend receivables
(1) Dividend receivables
In RMB
Item (or the invested entity) Closing balance Opening balance
Bosch Automobile Diesel System Co., Ltd 333,230,228.20
Zhonglian Automobile Electronic Co., Ltd. 207,800,000.00
Miracle Automation Engineering Co., Ltd. 235,500.00
Total 541,265,728.20
(2) Major dividend receivable over 1 year
Nil
62
无锡威孚高科技集团股份有限公司 2017 年半年度报告
7. Other accounts receivable
(1) Other accounts receivable by category
In RMB
Closing balance Opening balance
Category Book balance Bad debt provision Book balance Bad debt provision
Book value Book value
Accrual Accrual
Amount Ratio Amount Amount Ratio Amount
ratio ratio
Other account
receivable with
single significant 2,605,552.6 18.95 2,605,552.6 100.00 3,358,098. 27.84 100.00
amount and 3,358,098.66
withdrawal bad 3 % 3 % 66 % %
debt provision
separately
Other receivables
with bad debt 11,142,800. 81.05 2,765,381.9 8,377,418. 8,705,106. 72.16 5,907,873.9
24.82% 2,797,232.62 32.13%
provision accrual 86 % 3 93 54 % 2
by credit portfolio
13,748,353. 100.00 5,370,934.5 8,377,418. 12,063,205 100.0 5,907,873.9
Total 39.07% 6,155,331.28 51.03%
49 % 6 93 .20 0% 2
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period:
√ Applicable □ Not applicable
In RMB
Closing balance
Other account receivable(units)
Account receivable Bad debt reserve Accrual ratio Reasons
American HESS 1,514,671.20 1,514,671.20 100.00% The account was too old to collect
Nanjing Jinning Machinery Factory 1,090,881.43 1,090,881.43 100.00% The account was too old to collect
Total 2,605,552.63 2,605,552.63 -- --
In combination, other accounts receivable whose bad debts provision was accrued by age analysis
√ Applicable □ Not applicable
In RMB
Closing balance
Age
Other accounts receivable Bad debt provision Accrual ratio
Sub item of within one year
Within 6 months 6,994,433.96
6 months to one year 574,365.45 57,436.55 10.00%
Subtotal within one year 7,568,799.41 57,436.55
1-2 years 986,434.50 197,286.90 20.00%
2-3 years 128,180.79 51,272.32 40.00%
Over 3 years 2,459,386.16 2,459,386.16 100.00%
Total 11,142,800.86 2,765,381.93 24.82%
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
Explanations on combination determine:
Excluding the other account receivable accrual impairment provision separately; based on actual loss ratio of the
receivable groups that owes same or similar risk features, which has classify by age in previous years, determine
accrual ratio for bad debt provision combine with real condition.
In combination, withdrawal proportion of bad debt provision based on balance proportion for other account receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable:
□ Applicable √ Not applicable
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 67,343.99 Yuan; the amount collected or switches back amounting to 751,140.71 Yuan.
The major switch back or collected of the bad debt provision in the Period:
In RMB
Name Amount switch-back or collected Way of collection
Nanjing Jinning Machinery Factory 750,640.71 Accepted the goods
Total 750,640.71 --
(3) Other receivables actually written-off during the reporting period
In RMB
Item Amount of write off
Sporadic households 100,600.00
Note of important other receivables of written-off: Nil
(4) Other receivables by nature
In RMB
Nature Ending book balance Opening book balance
Intercourse funds receivable from units 6,870,378.58 5,124,447.95
Staff loans and petty cash 4,753,882.12 1,958,084.34
Other 2,124,092.79 4,980,672.91
Total 13,748,353.49 12,063,205.20
(5) Top 5 other receivables at ending balance by arrears party
In RMB
Ratio in total Ending balance
Ending
Company Nature Age ending balance of of bad bet
balance
other receivables provision
Ningbo Jiangbei High-Tech Industry Park Performance
1,767,000.00 Over 3 years 12.85% 1,767,000.00
Development Construction Co., Ltd. bond
64
无锡威孚高科技集团股份有限公司 2017 年半年度报告
Advance
Specific
American HESS payment 1,514,671.20 11.02% 1,514,671.20
identification
transfer-in
Wuxi Aimingsi Automotive Electronic Intercourse
1,093,143.44 Within 2 years 7.95% 186,256.41
System Co., Ltd. funds of unit
Intercourse Specific
Nanjing Jinning Machinery Factory 1,090,881.43 7.93% 1,090,881.43
funds of unit identification
Nanjiang Yinkun Tongchan Operation Intercourse
866,342.63 Within 6 months 6.30%
Management Co., Ltd. funds of unit
Total -- 6,332,038.70 -- 46.05% 4,558,809.04
(6) Account receivables related to government subsidies
Nil
(7) Other receivable for termination of confirmation due to the transfer of financial assets
Nil
(8) The amount of assets and liabilities that are transferred other receivable and continued to be involved
Nil
8. Inventory
(1) Inventory classification:
In RMB
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserve reserve
Raw materials 384,066,575.88 78,606,491.38 305,460,084.50 344,263,200.85 95,153,127.76 249,110,073.09
Goods in process 157,645,734.54 15,979,821.61 141,665,912.93 158,783,541.69 16,100,730.42 142,682,811.27
Finished goods 830,194,810.49 143,153,580.45 687,041,230.04 1,102,621,081.29 144,969,430.40 957,651,650.89
Total 1,371,907,120.91 237,739,893.44 1,134,167,227.47 1,605,667,823.83 256,223,288.58 1,349,444,535.25
(2) Inventory depreciation reserve
In RMB
Increase in the current period Decrease in the current period
Item Opening balance Closing balance
Accrual Other Switch back or write-off Other
Raw materials 95,153,127.76 99,454.68 16,646,091.06 78,606,491.38
Goods in process 16,100,730.42 120,908.81 15,979,821.61
Finished goods 144,969,430.40 92,208.10 1,908,058.05 143,153,580.45
65
无锡威孚高科技集团股份有限公司 2017 年半年度报告
Total 256,223,288.58 191,662.78 18,675,057.92 237,739,893.44
①Net realizable value of the inventory refers to: During the day-to-day activities, results of the estimated sale
price less costs which are going to happen by estimation till works completed sales price estimated and relevant
taxes.
②Accrual basis for inventory depreciation reserve:
Item Accrual basis for inventory impairment provision Specific basis for recognization
Materials on The materials sold due to finished goods Results from the estimated sale price of such inventory less the
hand manufactured, its net realizable value is lower than cost what will happen, estimated sales expenses and relevant
the book value taxes till the goods completed
Goods in The goods in process sold due to finished goods Results from the estimated sale price of such inventory less the
process manufactured, its net realizable value is lower than cost what will happen, estimated sales expenses and relevant
the book value taxes till the goods completed
Finished its net realizable value is lower than the book value Results from the estimated sale price less the vary taxes which
goods shall be taken in process of sales
③Reasons of write-off for inventory falling price reserves:
Item Reasons of write-off
Materials on hand Used for production and the finished goods are realized sales
Goods in process Goods in process completed in the Period and corresponding finished goods are realized sales in the Period
Finished goods Sales in the Period
④Reasons of switch-back for inventory falling price reserves:
Item Reasons of write-off
Raw materials The market price for the materials for selling soaring in the Period, thus switch-back in the inventory falling
price reserves which was accrual
(3) Explanation on capitalization of borrowing costs at ending balance of inventory
Nil
(4) Assets completed without unsettlement from construction contract at period-end
Nil
9. Other current assets
In RMB
Item Closing balance Opening balance
Entrust financing products 4,648,100,000.00 1,870,000,000.00
Receivable export tax rebates 9,952,301.30 8,633,684.76
Prepaid taxes and VAT retained 14,502,827.55 31,578,246.17
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
Input tax to be deducted and certification 1,291,820.45 937,665.59
Other 389,234.78 3,076,283.15
Total 4,674,236,184.08 1,914,225,879.67
10. Financial assets available for sale
(1) Particular about financial assets available for sale
In RMB
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Instrument equity
490,385,575.95 59,433,106.95 430,952,469.00 624,668,567.95 59,433,106.95 565,235,461.00
available for sale:
Measured by fair value 287,266,200.00 287,266,200.00 361,847,700.00 361,847,700.00
Measured by cost 203,119,375.95 59,433,106.95 143,686,269.00 262,820,867.95 59,433,106.95 203,387,761.00
Other -- financial
198,080,000.00 198,080,000.00 130,000,000.00 130,000,000.00
products
Total 688,465,575.95 59,433,106.95 629,032,469.00 754,668,567.95 59,433,106.95 695,235,461.00
(2) Financial assets available for sale measured by fair value at period-end
In RMB
Instrument equity Instrument liability
Type Total
available for sale available for sale
Cost /liability of equity instrument/ amortization cost of debt
163,824,300.00 163,824,300.00
instrument
Fair value 287,266,200.00 287,266,200.00
Amount of fair value changes that accumulatively reckoned in other
123,441,900.00 123,441,900.00
comprehensive gains
(3) Financial assets available for sale measured by cost at period-end
In RMB
Book balance Depreciation reserves Ratio of
share-hold Cash
The invested Decr
Period-beginnin Incre Period-beginni Incre ing in divid
entity Decreased Period-end ease Period-end
g ased ng ased invested end
d entity
Guolian
12,000,000.00 12,000,000.00 0.95%
Securities
Guangxi 1,600,000.00 1,600,000.00 1,600,000.00 1,600,000.00 1.22%
67
无锡威孚高科技集团股份有限公司 2017 年半年度报告
Liufa Co.,
Ltd.
Financial
Company of
Changchai 800,000.00 800,000.00 800,000.00 800,000.00
Group Co.,
Ltd.
H&J
Vanguard
33,000,000.00 33,000,000.00 33,000,000.00 33,000,000.00 11.72%
Investment
Co., Ltd.
Nanjing
Hengtai
Insurance 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1.85%
and Broker
Co., Ltd.
Henan
Gushi
Weining Oil
2,033,106.95 2,033,106.95 2,033,106.95 2,033,106.95
Pump &
Nozzle Co.,
Ltd.
Beijing
Foton
Environmen 86,940,000.00 86,940,000.00 11,000,000.00 11,000,000.00 12.66%
tal Engine
Co., Ltd.
Wuxi
Xidong
Technologic
5,000,000.00 5,000,000.00 1.43%
al Industry
Park Co.,
Ltd.
Shanghai
IMS
Automotive
10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 12.27%
Electronic
System Co.,
Ltd.
Shanghai
CD
Dengtong
110,447,761.00 59,701,492.00 50,746,269.00 14.93%
Equity
Investment
Fund
Total 262,820,867.95 59,701,492.00 203,119,375.95 59,433,106.95 59,433,106.95 --
(4) Changes of impairment in Period
In RMB
Type Instrument equity available for sale Instrument liability available for sale Total
Balance of impairment accrual at
59,433,106.95 59,433,106.95
period-begin
Balance of impairment accrual at
59,433,106.95 59,433,106.95
period-end
68
无锡威孚高科技集团股份有限公司 2017 年半年度报告
(5) where the fair value of equity instruments available for sale drops significantly or not contemporarily at
period-end, without impairment provision is made
Nil
11. Long-term equity investment
In RMB
+,-
Endin
Ad Other
g
diti compr
Cap Other Imp balan
ona ehensi
The invested ital Investment gains equit Cash dividend or airm Ot ce of
Opening balance l ve Closing balance
entity red recognized under y profit announced ent he impai
inv incom
ucti equity chan to issued accr r rment
est e
on ge ual provi
me adjust
sion
nt ment
I. Joint venture
Wuxi Weifu
Environment
447,259,593.58 42,182,917.41 489,442,510.99
Catalyst Co.,
Ltd.
Subtotal 447,259,593.58 42,182,917.41 489,442,510.99
II. Associated enterprise
Bosch
Automobile
2,115,920,812.13 593,031,744.26 666,460,456.42 2,042,492,099.97
Diesel System
Co., Ltd
Zhonglian
Automobile
811,404,971.22 196,177,222.39 207,800,000.00 799,782,193.61
Electronic
Co., Ltd.
Wuxi Weifu
Fine
Machinery 46,445,383.85 3,480,468.65 49,925,852.50
Manufacturin
g Co., Ltd.
Subtotal 2,973,771,167.20 792,689,435.30 874,260,456.42 2,892,200,146.08
Total 3,421,030,760.78 834,872,352.71 874,260,456.42 3,381,642,657.07
69
无锡威孚高科技集团股份有限公司 2017 年半年度报告
12. Investment real estate
(1) Investment real estate measured at cost
In RMB
Item House and building Land use right Construction in process Total
I. original book value
1.Opening balance 63,545,325.48 63,545,325.48
2. increased in the Period
(1) outsourcing
(2) Inventory\fixed assets\construction in
process transfer-in
(3) increased by combination
3. decreased in the Period
(1) disposal
(2) other transfer-out
4.Closing balance 63,545,325.48 63,545,325.48
II. Accumulated depreciation and accumulated
amortization
1.Opening balance 38,431,852.94 38,431,852.94
2. increased in the Period 769,276.44 769,276.44
(1) accrual or amortization 769,276.44 769,276.44
3. decreased in the Period
(1) disposal
(2) other transfer-out
4.Closing balance 39,201,129.38 39,201,129.38
III. Depreciation reserves
1.Opening balance
2. increased in the Period
(1) accrual
3. decreased in the Period
(1) disposal
(2) other transfer-out
4.Closing balance
IV. Book value
70
无锡威孚高科技集团股份有限公司 2017 年半年度报告
1. Ending Book value 24,344,196.10 24,344,196.10
2. Opening Book value 25,113,472.54 25,113,472.54
(2) Investment real estate measured by fair value
□ Applicable√ Not applicable
(3) Investment real estate without property certification held
Nil
13. Fixed assets
(1) Fixed assets
In RMB
Housing Machinery Transportation Electronic and
Item Total
buildings equipment equipment other equipment
I. original book value
1.Opening balance 1,325,757,440.87 2,039,144,555.18 42,046,936.44 427,745,109.70 3,834,694,042.19
2. increased in the Period 52,192,277.14 44,078,845.38 1,044,756.17 34,434,928.18 131,750,806.87
(1) Purchase 9,473,617.53 93,634.15 2,222,830.61 11,790,082.29
(2) construction in process
52,192,277.14 34,605,227.85 951,122.02 32,212,097.57 119,960,724.58
transfer-in
(3) increased by combination
3. decreased in the Period 0.00 6,931,464.73 954,793.88 4,496,493.43 12,382,752.04
(1) disposal or scrapping 0.00 6,931,464.73 954,793.88 4,496,493.43 12,382,752.04
4.Closing balance 1,377,949,718.01 2,076,291,935.83 42,136,898.73 457,683,544.45 3,954,062,097.02
II. Accumulated depreciation
1.Opening balance 237,002,543.29 910,479,996.85 29,379,831.90 174,403,406.82 1,351,265,778.86
2. increased in the Period 22,196,297.63 84,664,403.45 1,965,950.42 24,928,001.31 133,754,652.81
(1) accrual 22,196,297.63 84,664,403.45 1,965,950.42 24,928,001.31 133,754,652.81
3. decreased in the Period 0.00 5,090,565.45 797,789.47 3,982,131.58 9,870,486.50
(1) disposal or scrapping 0.00 5,090,565.45 797,789.47 3,982,131.58 9,870,486.50
4.Closing balance 259,198,840.92 990,053,834.85 30,547,992.85 195,349,276.55 1,475,149,945.17
III. Depreciation reserves
1.Opening balance 29,086,874.78 73,320.38 6,428,032.83 35,588,227.99
2. increased in the Period
(1) accrual
71
无锡威孚高科技集团股份有限公司 2017 年半年度报告
3. decreased in the Period 0.86 0.86
(1) disposal or scrapping 0.86 0.86
4.Closing balance 29,086,873.92 73,320.38 6,428,032.83 35,588,227.13
IV. Book value
1. Ending Book value 1,118,750,877.09 1,057,151,227.06 11,515,585.50 255,906,235.07 2,443,323,924.72
2. Opening Book value 1,088,754,897.58 1,099,577,683.55 12,593,784.16 246,913,670.05 2,447,840,035.34
(2) Temporarily idle fixed assets
Nil
(3) Fixed assets acquired by financing lease
Nil
(4) Fixed assets acquired by operating lease
Nil
(5) Certificate of title un-completed
In RMB
Item Book value Reasons
Boiler room and guard house of Weifu Jinning 3,061,061.92 Still in process of relevant property procedures
Plant and office building of Weifu Chang’an 41,190,079.98 Still in process of relevant property procedures
Warehouse and power center etc of Weifu ITM 41,963,111.01 Still in process of relevant property procedures
14. Construction in progress
(1) Construction in progress
In RMB
Closing balance Opening balance
Item
Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
2nd Phase construction project
61,132,269.51 61,132,269.51 29,844,630.44 29,844,630.44
in industrial park
Technical equipment of
103,500.00 103,500.00 103,500.00 103,500.00
Ningbo Tianli
Sporadic engineering project 83,470,031.00 6,916,375.62 76,553,655.38 67,589,347.38 6,916,375.62 60,672,971.76
72
无锡威孚高科技集团股份有限公司 2017 年半年度报告
Total 144,705,800.51 6,916,375.62 137,789,424.89 97,537,477.82 6,916,375.62 90,621,102.20
(2) Changes of major projects under construction
In RMB
Accumul including
Proporti
Fixed Other ated : interest Interest
on of
increased assets decrea amount capitaliz capitaliz
Budg Opening Closing project Sourceof
Item in the transfer-in sed in Progress of ed ation rate
et balance balance investme funds
Period in the the interest amount of the
nt in
Period Period capitaliz of the year
budget
ation year
Placeme
2nd Phase
nt
construction
29,844,6 31,287,6 61,132,2 amount
project in
30.44 39.07 69.51 and
industrial
owned
park
funds
Placeme
Technical nt
equipment 103,500. 103,500. amount
of Ningbo 00 00 and
Tianli owned
funds
Parent
company
technical
9,282,76 20,634,8 16,609,224 13,308,4
transformati Other
1.21 97.39 .98 33.62
on
equipment
engineering
Weifu
Autocam 6,368,84 4,716,88 1,050,647. 10,035,0
Other
equipment 3.92 4.85 44 81.33
engineering
ITM 102 29,241,8 24,862,3 54,104,182
Other
warehouse 59.96 22.29 .25
74,841,5 81,501,7 71,764,054 84,579,2
Total -- -- --
95.53 43.60 .67 84.46
(3) The provision for impairment of construction projects Nil
15. Intangible assets
(1) Particular about intangible assets
In RMB
Non-patent Trademark and Computer
Item Land use right Patent Total
technology trademark license software
I. original book value
1.Opening balance 376,128,220.00 3,539,793.05 41,597,126.47 45,121,813.31 466,386,952.83
2. increased in the Period 1,830,437.35 1,830,437.35
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
(1) purchase 1,830,437.35 1,830,437.35
(2) internal R&D
(3) increased by combination
3. decreased in the Period
(1) disposal
4.Closing balance 376,128,220.00 3,539,793.05 41,597,126.47 46,952,250.66 468,217,390.18
II. accumulated amortization
1.Opening balance 62,562,716.74 1,917,389.04 9,709,000.00 28,344,428.29 102,533,534.07
2. increased in the Period 4,131,131.67 176,989.86 5,166,942.04 9,475,063.57
(1) Accrual 4,131,131.67 176,989.86 5,166,942.04 9,475,063.57
3. decreased in the Period
(1) disposal
4.Closing balance 66,693,848.41 2,094,378.90 9,709,000.00 33,511,370.33 112,008,597.64
III. impairment provision
1.Opening balance 16,646,900.00 16,646,900.00
2. increased in the Period
(1) Accrual
3. decreased in the Period
(1) disposal
4.Closing balance 16,646,900.00 16,646,900.00
IV. Book value
1. Ending Book value 309,434,371.59 1,445,414.15 15,241,226.47 13,440,880.33 339,561,892.54
2. Opening Book value 313,565,503.26 1,622,404.01 15,241,226.47 16,777,385.02 347,206,518.76
Ratio of the intangible assets from internal R&D in balance of intangible assets at period-end was 0.
(2) Land use rights without certificate of ownership
Nil
16. Goodwill
(1) Original book value of goodwill
In RMB
The invested entity or items Opening balance Increase during the period Decreased during the period Closing balance
Weifu Tianli 1,784,086.79 1,784,086.79
74
无锡威孚高科技集团股份有限公司 2017 年半年度报告
Total 1,784,086.79 1,784,086.79
Goodwill of the Weifu Tianli: the Company controlling and combine Weifu Tianli by increasing the capital, the
goodwill is the number that combination cost greater than the fair value of identiable net assets of Weifu Tianli
(2) Goodwill depreciation reserves
Nil
17. Long-term unamortized expenses
In RMB
Item Opening balance Increased in the Period Amortized in the Period Other decrease Closing balance
Remodeling costs ect. 1,753,413.10 5,959,292.75 1,281,403.15 6,431,302.70
Total 1,753,413.10 5,959,292.75 1,281,403.15 6,431,302.70
18. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets un-offset
In RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Bad debt reserves 18,536,594.93 2,905,601.17 17,188,291.28 2,742,375.77
Inventory falling price reserves 210,757,525.28 33,048,983.18 229,240,920.42 36,065,833.01
Fixed assets depreciation reserves 20,616,045.58 3,283,362.83 20,616,046.44 3,283,362.97
Construction in process depreciation
6,916,375.62 1,037,456.34 6,916,375.62 1,037,456.34
reserves
Intangible assets depreciation
16,646,900.00 2,497,035.00 16,646,900.00 2,497,035.00
reserves
Financial assets available for sale
10,000,000.00 1,500,000.00 10,000,000.00 1,500,000.00
depreciation reserves
Deferred income 465,249,836.84 69,846,522.75 474,885,844.12 71,232,876.62
Internal un-realized profit 39,293,238.95 6,321,073.81 40,535,949.54 6,461,650.41
Payable salary, accrued expenses
496,317,162.06 77,220,067.52 526,809,750.78 81,793,955.82
ect.
Depreciation assets, amortization
13,486,412.32 2,022,961.84 13,486,412.32 2,022,961.84
difference
Deductible loss of subsidiary 10,394,711.11 1,559,206.67
75
无锡威孚高科技集团股份有限公司 2017 年半年度报告
Total 1,297,820,091.58 199,683,064.44 1,366,721,201.63 210,196,714.45
(2) Deferred income tax liabilities un-offset
In RMB
Closing balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Asset evaluation increment for
13,861,959.42 2,079,293.90 14,232,069.40 2,134,810.40
combination not under the same control
Change of fair value for the financial
123,441,900.00 18,516,284.99 170,262,150.00 25,539,322.49
assets available for sale
Total 137,303,859.42 20,595,578.89 184,494,219.40 27,674,132.89
(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
199,683,064.44 210,196,714.45
assets
Deferred income tax
20,595,578.89 27,674,132.89
liabilities
(4) Details of unrecognized deferred income tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary differences - Bad debt reserves 341,213.78 308,857.00
Deductible temporary differences- Inventory falling price reserves 26,982,368.16 26,982,368.16
Deductible losses –subsidiary of Weifu ITM ect. 177,060,023.76 188,242,036.00
Deductible temporary differences- Fixed assets depreciation reserves 14,972,181.55 14,972,181.55
Deductible temporary differences- Provision for impairment of financial assets
49,433,106.95 49,433,106.95
available for sale
Total 268,788,894.20 279,938,549.66
76
无锡威孚高科技集团股份有限公司 2017 年半年度报告
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB
Year Ending amount Opening amount Note
2017 10,343,994.19 12,490,509.17 Weifu ITM and other subsidiaries have operating losses
2018 24,828,326.76 24,828,326.76 Weifu ITM and other subsidiaries have operating losses
2019 34,337,080.11 35,159,237.40 Weifu ITM and other subsidiaries have operating losses
2020 61,469,666.22 69,683,006.19 Weifu ITM and other subsidiaries have operating losses
2021 46,080,956.48 46,080,956.48 Weifu ITM and other subsidiaries have operating losses
Total 177,060,023.76 188,242,036.00 --
19. Other non-current assets
In RMB
Item Closing balance Opening balance
Engineering equipment paid in advance 148,158,953.25 102,671,641.12
Total 148,158,953.25 102,671,641.12
20. Short-term loans
(1) Types of short-term loans
In RMB
Item Closing balance Opening balance
Credit loan 185,000,000.00 150,000,000.00
Total 185,000,000.00 150,000,000.00
(2) Overdue short-term loans without payment
Nil
21. Notes payable
In RMB
Type Closing balance Opening balance
Bank acceptance bill 659,009,237.47 837,045,962.78
Total 659,009,237.47 837,045,962.78
Notes expired at year-end without paid was 0.00 Yuan.
77
无锡威孚高科技集团股份有限公司 2017 年半年度报告
22. Account payable
(1) Account payable
In RMB
Item Closing balance Opening balance
Within 1 year 2,171,930,046.25 1,636,965,593.87
1-2 years 17,194,133.93 16,364,736.14
2-3 years 7,431,995.91 14,228,347.57
Over 3 years 67,809,353.37 61,691,678.35
Total 2,264,365,529.46 1,729,250,355.93
(2) Important account payable with account age over one year
Nil
23. Account received in advance
(1) Account received in advance
In RMB
Item Closing balance Opening balance
Within 1 year 44,762,909.31 38,892,005.51
1-2 years 1,162,835.03 1,416,022.00
2-3 years 387,887.86 1,136,183.04
Over 3 years 804,741.12 1,539,142.29
Total 47,118,373.32 42,983,352.84
(2) Important account received in advance with account age over one year
Nil
(3) Projects settlement without unfinished at period-end from construction contract
Nil
24. Wages payable
(1) Wages payable
In RMB
78
无锡威孚高科技集团股份有限公司 2017 年半年度报告
Item Opening balance Increase during the period Decreased during the period Closing balance
I. Short-term compensation 136,636,786.19 444,131,204.15 493,586,862.47 87,181,127.87
II. Post-employment welfare- defined
36,740,154.48 63,709,826.25 75,227,488.66 25,222,492.07
contribution plans
III. Dismissed welfare 3,020,952.05 0.00 3,020,952.05
IV. Other welfare due within one year 40,630,779.35 17,422,504.09 43,961,596.24 14,091,687.20
V. Other short-term welfare-Housing
subsidies, employee benefits and 13,643,597.51 2,943,219.37 2,041,506.47 14,545,310.41
welfare funds
Total 230,672,269.58 528,206,753.86 614,817,453.84 144,061,569.60
(2) Short-term compensation
In RMB
Increase during the Decreased during the
Item Opening balance Closing balance
period period
1. Wages , bonuses, allowances and
117,735,616.49 356,188,086.28 404,476,776.47 69,446,926.30
subsidies
2. Welfare for workers and staff 30,946,091.58 30,946,091.58 0.00
3. Social insurance 8,302,424.95 28,170,469.85 30,308,370.37 6,164,524.43
Including: Medical insurance 6,437,720.69 22,989,629.96 24,674,760.69 4,752,589.96
Work injury insurance 1,238,371.21 3,662,767.99 3,998,471.29 902,667.91
Maternity insurance 626,333.05 1,518,071.90 1,635,138.39 509,266.56
4. Housing accumulation fund 1,059,081.00 23,687,371.62 23,511,756.00 1,234,696.62
5. Labor union expenditure and
9,539,663.75 5,139,184.82 4,343,868.05 10,334,980.52
personnel education expense
Total 136,636,786.19 444,131,204.15 493,586,862.47 87,181,127.87
(3) Defined contribution plans
In RMB
Item Opening balance Increase during the period Decreased during the period Closing balance
1. Basic endowment insurance 20,102,944.48 52,791,846.88 57,814,999.26 15,079,792.10
2. Unemployment insurance 2,044,905.57 2,572,356.58 2,901,080.26 1,716,181.89
3. Enterprise annuity 14,592,304.43 8,345,622.79 14,511,409.14 8,426,518.08
Total 36,740,154.48 63,709,826.25 75,227,488.66 25,222,492.07
Other explanation:
1. Welfare-defined contribution plans:
79
无锡威孚高科技集团股份有限公司 2017 年半年度报告
The Company participates in the pension insurance and unemployment insurance plans established by government
authorities by laws. Under these plans, the Company makes monthly contribution to these plans based on 14% and
2% of the social insurance contribution base for 2015 respectively. Other than the aforesaid monthly contribution,
the Company takes no further payment obligation. The relevant expenditure is included in current profit or loss or
cost of relevant assets when occurs. Found more of enterprise annuity in Note XV –other important event-4.”
Annuity plan”.
2. Dismiss welfare
The wages payable resulted from the implementation of inner retirement plan, the amount will pay one year later
RMB 11,575,704.51 will re-classified into the long-term wage payable.
25. Tax payable
In RMB
Item Closing balance Opening balance
Value-added tax 30,853,863.92 8,586,317.81
Enterprise income tax 38,153,325.93 43,081,662.09
Individual income tax 1,069,895.33 2,510,107.17
Urban maintenance and construction tax 2,119,773.26 619,918.29
Educational surtax 1,514,123.75 442,680.76
Other (including stamp tax and local funds) 4,885,260.40 7,394,236.76
Total 78,596,242.59 62,634,922.88
26. Interest payable
In RMB
Item Closing balance Opening balance
Long-term borrowing interest for installment 75,868.00 87,083.33
Interest payable for short-term loans 237,924.16 350,854.94
Total 313,792.16 437,938.27
27. Dividend payable
In RMB
Item Closing balance Opening balance
Common stock dividends 605,370,342.00
Total 605,370,342.00
80
无锡威孚高科技集团股份有限公司 2017 年半年度报告
28. Other payable
(1) Classification of other payable according to nature of account
In RMB
Item Closing balance Opening balance
Deposit and margin 13,503,736.76 53,757,126.76
Social insurance and reserves funds that withholding 5,903,214.56 6,213,209.51
Intercourse funds of units 26,347,970.04 25,512,145.98
Other 5,923,285.39 11,032,003.34
Total 51,678,206.75 96,514,485.59
(2) Significant other payable with over one year age
In RMB
Item Closing balance Reasons of un-paid or carry-over
Nanjing Jidian Industrial Group Co., Ltd. 4,500,000.00 Intercourse funds
Total 4,500,000.00 --
29. Long-term loans
(1) Classification of long-term loans
In RMB
Item Closing balance Opening balance
Guaranteed loan 57,500,000.00 60,000,000.00
Total 57,500,000.00 60,000,000.00
30. Long-term account payable
(1) Listed by nature
In RMB
Item Closing balance Opening balance
Hi-tech Branch of Nanjing Finance Bureau [note 1] 1,140,000.00 1,140,000.00
Hi-tech Branch of Nanjing Finance Bureau[note 2] 1,250,000.00 1,250,000.00
Hi-tech Branch of Nanjing Finance Bureau[note 3] 1,230,000.00 1,230,000.00
Loan transferred from treasury bond [note 4] 1,695,454.00 1,695,454.00
81
无锡威孚高科技集团股份有限公司 2017 年半年度报告
Hi-tech Branch of Nanjing Finance Bureau[note 5] 2,750,000.00 2,750,000.00
Hi-tech Branch of Nanjing Finance Bureau[note 6] 1,030,000.00 1,030,000.00
Hi-tech Branch of Nanjing Finance Bureau[note 7] 960,000.00 960,000.00
Hi-tech Branch of Nanjing Finance Bureau[note 8] 5,040,000.00 5,040,000.00
Hi-tech Branch of Nanjing Finance Bureau[note 9] 2,740,000.00 2,740,000.00
Total 17,835,454.00 17,835,454.00
Other explanation:
[Note 1] To encourage Weifu Jinning 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 20 October 2005 to 20 October 2020. Provided that the operation period in the zone is less than
15 years, financial supporting capital will be reimbursed.
[Note 2] To encourage Weifu Jinning 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 20 July 2006 to 20 July 2021. Provided that the operation period in the zone is less than 15
years, financial supporting capital will be reimbursed.
[Note 3] To encourage Weifu Jinning 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 17 September 2007 to 17 September 2022. Provided that the operation period in the zone is
less than 15 years, financial supporting capital will be reimbursed.
[Note 4] Loan transferred from treasury bond: Weifu Jinning received RMB1.87 million Yuan of special funds
from budget of the central government, and RMB1.73 million Yuan of special funds from budget of the local
government. The non-operating income transferred in was 1.87 million Yuan in 2011 which was confirmed not
to return, if the Company pays back special funds of 3.73 million Yuan to the local government in 11 years
since 2012, then the Company needs to repay the principal of 339,091.00 Yuan each year.
[Note 5] To encourage Weifu Jinning 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 10 November 2008 to 10 November 2023. Provided that the operation period in the zone is
less than 15 years, financial supporting capital will be reimbursed.
[Note 6] To encourage Weifu Jinning 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 27 October 2009 to 27 October 2024. Provided that the operation period in the zone is less than
15 years, financial supporting capital will be reimbursed.
[Note 7] To encourage Weifu Jinning 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 27 December 2010 to 27 December 2025. Provided that the operation period in the zone is less
than 15 years, financial supporting capital will be reimbursed.
[Note 8] To encourage Weifu Jinning 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 28 December 2011 to 28 December 2026. Provided that the operation period in the zone is less
than 15 years, financial supporting capital will be reimbursed.
[Note 9] To encourage Weifu Jinning to enter Nanjing High-tech Technology Industry Development Zone,
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
financial supporting capital is allotted by High-tech branch of Finance Bureau of Nanjing for supporting use,
the term is from 18 December 2013 to 18 December 2028. Provided that the operation period in the zone is less
than 15 years, financial supporting capital will be reimbursed.
31. Long-term employee payable
(1) Long-term employee payable
In RMB
Item Closing balance Opening balance
I. Post-employment welfare-defined contribution plans net indebtedness 0.00 0.00
II. Dismiss welfare 11,575,704.51 11,575,704.51
III. Other long-term welfare 125,622,495.91 101,240,000.00
Total 137,198,200.42 112,815,704.51
(2) Change of defined benefit plans
Nil
32. Special payable
In RMB
Increase during the Decreased
Item Opening balance Closing balance Causes
period during the period
Removal compensation of
18,265,082.11 18,265,082.11
subsidiary Weifu Jinning [note 1]
Total 18,265,082.11 18,265,082.11 --
Othe note:
Explanation of removal compensation of the company:
[Note 1]Removal compensation of subsidiary Weifu Jinning: in line with regulation of the house acquisition
decision of People’s government of Xuanwu District, Nanjing City, Ning Xuan Fu Zheng Zi (2012) No.001, part
of the lands and property of Weifu Jingning needs expropriation in order to carry out the comprehensively
improvement of Ming Great Wall. According to the house expropriation and compensation agreement in
state-owned lands signed between Weifu Jinning and House Expropriation Management Office of Xuanwu
District, Nanjing City, RMB 19.7067 million in total are compensate, including operation losses from lessee RMB
1.4416 million in total. The above compensation was received in last period and is making up for the losses from
lessee, and the above lands and property have not been collected up to 30 June 2017.
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
33. Deferred income
In RMB
Item Opening balance Increase during the period Decreased during the period Closing balance Causes
Government grand 479,211,845.88 4,662,000.00 14,298,007.28 469,575,838.60
Total 479,211,845.88 4,662,000.00 14,298,007.28 469,575,838.60 --
Item with government grants involved:
In RMB
Amount
Assets
Opening New grants in reckoned in
Liabilities Other changes Closing balance related/Income
balance the Period non-operatio
related
n revenue
Appropriation on
industrialization project of Assets
electrical control and high 4,326,001.76 4,326,001.76 related/Income
voltage jet VE system of low related
emissions diesel
Appropriation on reforming of
production line technology and
R&D ability of common rail 7,100,000.00 7,100,000.00 Assets related
system for diesel by distributive
high-voltage
Fund of industry upgrade (2012) 60,400,000.00 60,400,000.00 Income related
Fund of industry upgrade (2013) 60,520,000.00 60,520,000.00 Income related
Appropriation on central basic
3,571,428.58 3,571,428.58 Assets related
construction investment
R&D and industrialization of the
high pressure variable pump of
11,500,000.00 11,500,000.00 Assets related
the common rail system of diesel
engine for automobile
Research institute of motor
vehicle exhaust aftertreatment 4,000,000.00 4,000,000.00 Assets related
technology
Fund of industry upgrade (2014) 36,831,000.00 36,831,000.00 Income related
New-built assets compensation
after the removal of parent 196,590,113.55 13,615,329.88 182,974,783.67 Assets related
company
Fund of industry upgrade (2016) 40,000,000.00 40,000,000.00 Income related
Guiding capital for the technical 9,740,000.00 9,740,000.00 Assets related
84
无锡威孚高科技集团股份有限公司 2017 年半年度报告
reform from State Hi-Tech
Technical Commission
Implementation of the variable
cross-section turbocharger for 16,970,000.00 16,970,000.00 Assets related
diesel engine
Income related
Other 27,663,301.99 4,662,000.00 682,677.40 31,642,624.59
/Assets related
Total 479,211,845.88 4,662,000.00 14,298,007.28 469,575,838.60 --
Other explanation:
(1) Appropriation on industrialization project of electrical control and high voltage jet VE system of low
emissions diesel: in September 2009, Weifu Jinning signed “Project Contract of Technology Outcome
Transferring Special Capital in Jiangsu Province” with Nanjing Technical Bureau, according to which Weifu
Jinning received appropriation RMB 6.35 million in 2009, RMB 4.775 million received in 2010 and RMB 0.875
million received in 2011. According to the contract, the attendance date of this project was: from October of 2009
to March of 2012. This contract agreed 62% of newly increased investment in project would be spent in fixed
assets investment which are belongs to the government grand with assets/income concerned. In 2013, accepted by
the science & technology agency of Jiangsu Province, and RMB 4,789,997.04 with income related was reckoned
into current operation revenue directly; the RMB 7,210,002.96 with assets related was amortized during the
predicted service period of the assets.
(2) The appropriation for research and development ability of distributive high-pressure common rail system for
diesel engine use and production line technological transformation project: according to XCJ No. [2010] 59, the
Company has received special funds of 7.1 million Yuan appropriated by Finance Bureau of Wuxi New District in
2011 and used for the Company’s research and development ability of distributive high-pressure common rail
system for diesel engine use and production line technological transformation project; this appropriation belongs
to government subsidies related to assets, and will be amortized according to the useful life of the underlying
assets when the project is completed.
(3) Industry upgrading funds (2012): In accordance with the document Xi Xin Guanjing Fa [2012] No.216 and
Document Xi Xin Guancai Fa [2012] No. 85, the Company received funds of 60.4 million Yuan appropriated for
industry upgrading this year.
(4) Industry upgrading funds (2013): In accordance with the document Xi Xin Guan Jing Fa [2013] No.379, Xi
Xin Guan Jing Fa [2013] No.455, Xi Xin Guan Cai Fa [2013] No.128 and Xi Xin Guan Cai Fa [2013] No.153, the
Company received funds of 60.52 million Yuan appropriated for industry upgrading in 2013.
(5) Appropriation for investment of capital construction from the central government: In accordance with the
document Xi Caijian [2012] No.43, the Company received appropriation of 5 million Yuan for investment of
capital construction from the central government in 2012. The project has passed the acceptance check in current
period, this appropriation should be amortized within the surplus service life of current assets.
(6) R&D and industrialization of the high pressure variable pump of the common rail system of diesel engine for
automobile: the Company received appropriated for the project in 2013 with 8.05 million Yuan in line with
documents of Xi Ke Ji [2013] No.186, Xi Ke Ji [2013] No.208, Xi Cai Gong Mao [2013] No.104 and Xi Cai
85
无锡威孚高科技集团股份有限公司 2017 年半年度报告
Gong Mao [2013] No.138. In2014, RMB 3 million received. In the period, RMB 0.45 million received. And
belongs to government grands with assets concerned, and shall be amortized in the use of period for assets after
project completed. Project terms from September 2013 to August 2016.
(7) Vehicle exhaust after-treatment technology research institute project: in 2012, the subsidiary Weifu Leader has
applied for equipment purchase assisting funds to Wuxi Huishan Science and Technology Bureau and Wuxi
Science and Technology Bureau for the vehicle exhaust after-treatment technology research institute project. This
declaration has been approved by Wuxi Huishan Science and Technology Bureau and Wuxi Science and
Technology Bureau in 2012, and the company has received appropriation of 2.4 million Yuan in 2012, and
received appropriation of 1.6 million Yuan in 2013. This appropriation belongs to government subsidies related to
assets and will be amortized within the useful life of relevant assets when the project is completed.
(8) Industry upgrading funds (2014): In accordance with the document Xi Xin Guan Jing Fa [2014] No.427 and
Xi Xin Guan Cai Fa [2014] No.143, the Company received funds of 36.831 million Yuan appropriated for
industry upgrading in 2014.
(9) New-built assets compensation after the removal of parent company: According to the “State-owned land use
right of Wuxi City purchase contract” signed between parent company and Wuxi Land Reserve Center,this
amount is amortized according to the depreciation and amortization schedule of new-built assets, and the write-off
amount in current period is 13,615,329.88 Yuan.
(10) Industry upgrading funds (2016): In accordance with the document Xi Xin Guan Jing Fa [2016] No.585 and
Xi Xin Fa [2016] No.70, the Company received funds of 40 million Yuan appropriated for industry upgrading in
2016.
(11) Guilding capital for the technical reform from State Hi-Tech Technical Commission: In accordance with the
document Xi Jing Xin ZH [2016] No.9 and Xi Cai GM [2016] No.56, the Company received a 9.74 million Yuan
for the guiding capital of technical reform (1st batch) from Wuxi for year of 2016, which included in the
government subsidy with assets-concerned.
(12) Implementation of the variable cross-section turbocharger for diesel engine: In accordance with the document
YCZ Fa[2016] NO.623 and “Strong Industrial Base Project Contract for year of 2016”, controlling subsidiary
Ningbo Tianli received a specific subsidy of 16.97 million Yuan, the fund supporting strong industrial base
project (made-in-China 2025) of central industrial transformation and upgrading 2016 from Ministry of Industry
and Information Technology.
(13) Other change of 14,298,007.28 Yuan transferred to other income in the period
34. Share capital
In RMB
Change during the period(+,-)
Opening balance New shares Shares transferred from Closing balance
Bonus share Other Subtotal
issued capital reserve
Total shares 1,008,950,570.00 1,008,950,570.00
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
35. Capital reserve
In RMB
Item Opening balance Increase during the period Decreased during the period Closing balance
Capital premium (Share
3,372,647,413.97 3,372,647,413.97
capital premium)
Other Capital reserves 45,193,988.92 45,193,988.92
Total 3,417,841,402.89 3,417,841,402.89
36. Other consolidated income
In RMB
Current Period
Less: written in
other
Belong
Opening comprehensive
Account before to
Item income in Closing balance
balance Less : income Belong to parent minority
income tax in previous period
tax expense company after taxsharehol
and carried
the period ders
forward to gains
after tax
and losses in
current period
II. Other comprehensive
income items which will
be reclassified 144,722,827.51 -22,474,500.00 20,693,887.50 -3,371,175.00 -39,797,212.50 104,925,615.01
subsequently to profit or
loss
Gains or losses arising
from changes in fair
value of 144,722,827.51 -22,474,500.00 20,693,887.50 -3,371,175.00 -39,797,212.50 104,925,615.01
available-for-sale
financial assets
Total of other
144,722,827.51 -22,474,500.00 20,693,887.50 -3,371,175.00 -39,797,212.50 104,925,615.01
consolidated income
Other explanation, including the effective portion of the cash flow hedging gains to be adjusted for the initial confirmation amount of
the hedged item: Nil
37. Reasonable reserve
In RMB
Item Opening balance Increase during the period Decrease during this period Closing balance
Safety production costs 89,005.19 8,969,586.03 8,443,252.92 615,338.30
Total 89,005.19 8,969,586.03 8,443,252.92 615,338.30
Other explanation, including changes and reasons for changes:
87
无锡威孚高科技集团股份有限公司 2017 年半年度报告
According to the “management method of extraction and use the safety production costs for enterprise” Cai Qi
[2012] No.16 jointly issued by Ministry of Finance and Administration of Production Safety Supervision, the
provision is based on the actual operation revenue of last period, extract on average month-by-month basis
through excess regressive method
Among the above safety production costs, including the safety production costs accrual by the Company in line
with regulations and the parts enjoy by shareholders of the Company in safety production costs accrual by
subsidiary in line with regulations.
38. Surplus reserves
In RMB
Item Opening balance Increase during the period Decrease during this period Closing 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:
Pursuit to the Company Law and Article of Association, the Company extracted statutory surplus reserve on 10
percent of the net profit. No more amounts shall be withdrawal if the accumulated statutory surplus reserve takes
over 50 percent of the registered capital.
39. Retained profit
In RMB
Item This period Last period
Retained profits at the end of last year before adjustment 7,845,639,990.88 6,677,890,958.83
Retained profits at the beginning of the year after adjustment 7,845,639,990.88 6,677,890,958.83
Add: The net profits belong to owners of patent company of this period 1,325,922,029.56 1,672,224,317.05
Common dividend payable 605,370,342.00 504,475,285.00
Retained profit at period-end 8,566,191,678.44 7,845,639,990.88
Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations
affect the retained profits at the beginning of the period amounting to 0 Yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0
Yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0
Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period
amounting to 0 Yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan.
88
无锡威孚高科技集团股份有限公司 2017 年半年度报告
40. Operating income and cost
In RMB
Current Period Last Period
Item
Income Cost Income Cost
Main operating 4,480,811,897.39 3,526,184,596.99 3,177,043,549.95 2,481,834,855.65
Other operating 247,313,701.63 210,106,341.87 189,432,902.54 151,447,127.60
Total 4,728,125,599.02 3,736,290,938.86 3,366,476,452.49 2,633,281,983.25
41. Business tax and surcharges
In RMB
Item Current Period Last Period
City maintenance and construction tax 15,554,573.84 9,408,912.57
Educational surtax 11,107,313.56 6,720,242.66
Property tax 6,488,252.36
Land use tax 3,131,115.90
Vehicle use tax 18,915.00
Stamp duty 1,556,803.30
Other tax 5,308.52 106,191.33
Total 37,862,282.48 16,235,346.56
Other note:
In accordance with the document Cai Kuai [2016] No.22, the “business tax and surcharge” listed in profit
statement adjusted into the item of “taxes and surcharge”; at the same time, the property tax, land-use tax, vehicle
and vessel usage tax and stamp tax, which listed in “Administration expenses” arising from operation activity
since 1 May 2016, re-classified into the item of “taxes and surcharge”
42. Sales expenses
In RMB
Item Current Period Last Period
Salary and fringe benefit 16,800,347.95 15,018,158.08
Consumption of office materials and business travel charge 5,184,310.23 4,076,419.39
Transportation charge 17,050,992.80 16,189,625.90
Warehouse charge 1,546,815.48 8,754,937.47
Three-guarantee fee 20,963,280.32 41,790,075.02
Business entertainment fee 6,230,440.89 4,354,155.93
Other 3,783,074.99 2,615,997.46
Total 71,559,262.66 92,799,369.25
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
43. Administration expenses
In RMB
Item Current Period Last Period
Salary and fringe benefit 116,204,076.96 117,414,017.83
Depreciation charger and long-term assets amortization 23,516,873.88 22,851,390.36
Consumption of office materials and business travel charge 10,088,373.09 8,977,407.83
Tax 9,072,563.99
Incentive fund 41,805,000.00
Other 207,954,410.80 156,281,154.91
Total 399,568,734.73 314,596,534.92
44. Financial expenses
In RMB
Item Current Period Last Period
Interest expenses 4,482,686.51 7,012,656.62
Note discount interest expenses 402,851.58 499,399.16
Saving interest income -9,918,625.28 -11,331,400.72
Gains/losses from exchange 6,084,256.36 362,741.04
Handling charges 636,882.15 547,112.47
Total 1,688,051.32 -2,909,491.43
45. Asset impairment loss
In RMB
Item Current Period Last Period
I. Bad debt loss 1,918,243.57 -2,438,608.07
II. Inventory falling price loss -13,214,717.13 212,052.39
Total -11,296,473.56 -2,226,555.68
46. Investment income
In RMB
Item Current Period Last Period
Income of long-term equity investment calculated based on equity 833,565,520.64 593,102,462.02
Investment income from disposal of long-term equity investments -10,472.99
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
Investment income from holding financial assets available for sales 235,500.00
Investment income obtained from disposal of financial assets
24,625,516.88 20,210,318.13
available for sales
Entrust financial income 97,021,850.83 98,639,783.02
Total 955,437,915.36 711,952,563.17
47. Other income
In RMB
Resources Current Period Last Period
Depreciation amortization of the assets compensation, transfer-in from deferred
13,615,329.88
income after parent company relocation
Deferred income transfer-in to other government grants 682,677.40
Industrial development fund for capacity enlargement and technology
530,000.00
improvement from Binhu District in the period
Technology improvement fund received from Xinwu Finance Bureau 300,000.00
Specific supporting fund received from Huishan District 480,000.00
Total 15,608,007.28
48. Non-operating income
In RMB
Amount reckoned into current
Item Current Period Last Period
non-recurring gains/losses
Non-current assets disposal gains 235,193.85 724,772.79 235,193.85
Including: fixed assets disposal gains 235,193.85 724,772.79 235,193.85
Government subsidy 1,498,749.45 15,821,482.47 1,498,749.45
Other 1,285,830.03 2,201,127.47 1,285,830.03
Total 3,019,773.33 18,747,382.73 3,019,773.33
Government subsidy reckoned into current gains/losses:
In RMB
Whether the
impact of Whether
Issuin Issuin Assets
Proper subsidies on special Amount of this Amount of last
Item g g related/Incom
ty type the current subsidie period period
subject cause e related
profit and s
loss
Income
Steady post subsidy of Wuxi City No No 1,402,281.45 1,747,144.00
related
Social insurance subsidy for the No No 27,468.00 Income
91
无锡威孚高科技集团股份有限公司 2017 年半年度报告
college graduates employment by related
medium small & micro-sized
enterprises in Ningbo City
Subsidy of economy and Income
information for Hubin District No No 210,000.00 related/Asset
Wuxi s related
Budget subsidy of the 1st
Income
technology project of Ningbo for No No 240,000.00
related
year of 2016
Industrialization project for
injection VE pump system with
electronically controlled high No No 721,000.30 Assets related
pressure for less-emission diesel
used
Income
Compensation of relocation losses
No No 57,116.41 related/Asset
of parent company
s related
Depreciation / amortization
Income
compensation of new assets after
No No 12,645,145.76 related/Asset
the relocation of the parent
s related
company
Income
Other No No 69,000.00 201,076.00 related/Asset
s related
Total -- -- -- -- -- 1,498,749.45 15,821,482.47 --
49. Non-operating expenditure
In RMB
Amount reckoned into current
Item Current Period Last Period
non-recurring gains/losses
Non-current assets disposal losses 1,536,014.17 1,461,331.21 1,536,014.17
Including: fixed assets disposal losses 1,536,014.17 1,461,331.21 1,536,014.17
Donations 13,500.00 13,500.00 13,500.00
Relocation expenditures of parent company 0.00 57,116.41
Local fund etc. 1,957,389.72 415,449.09
Other 618,295.22 388,425.31 618,295.22
Total 4,125,199.11 2,335,822.02 2,167,809.39
50. Income tax expense
(1) Statement of income tax expense
In RMB
Item Current Period Last Period
Current income tax expense 84,212,598.76 70,384,886.62
Adjusted the previous income tax -644,798.91 -855,649.30
92
无锡威孚高科技集团股份有限公司 2017 年半年度报告
Increase/decrease of deferred income tax assets 10,513,650.01 -1,159,293.64
Increase/decrease of deferred income tax liability -55,516.50 -55,516.50
Total 94,025,933.36 68,314,427.18
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item Current Period
Total profit 1,462,393,299.39
Income tax measured by statutory/applicable tax rate 219,358,994.91
Impact by different tax rate applied by subsidies 1,845,959.56
Adjusted the previous income tax -644,798.91
Impact by non-taxable revenue -125,968,931.82
Impact by the deductible losses of the un-recognized previous deferred income tax -2,795,503.06
The deductible temporary differences or deductible losses of the un-recognized differed income
55,052.30
tax assets in the Period
Other 2,175,160.38
Income tax expense 94,025,933.36
51. Other comprehensive income
See Note VII. 36 “Other comprehensive income”
52. Items of statement of cash flow
(1) Other cash received in relation to operation activities
In RMB
Item Current Period Last Period
Income from bank deposit interest 10,505,698.00 12,545,169.83
Operational government subsidy 8,156,049.45 3,742,518.00
Other 1,051,339.77 1,445,995.66
Total 19,713,087.22 17,733,683.49
(2) Other cash paid in relation to operation activities
In RMB
93
无锡威孚高科技集团股份有限公司 2017 年半年度报告
Item Current Period Last Period
Expenses of sales cash paid 45,844,220.52 65,790,445.89
Expenses of management cash paid 104,847,303.37 72,594,294.94
Other 3,396,065.05 2,281,440.94
Total 154,087,588.94 140,666,181.77
(3) Cash received from other investment activities
In RMB
Item Current Period Last Period
Government subsidy received relevant to assets 4,994,867.00
Relocation compensation received 25,301,600.00
Total 30,296,467.00
(4) Cash paid related with investment activities
In RMB
Item Current Period Last Period
Relocation expenses paid 57,116.41
Total 57,116.41
(5) Other cash received in relation to financing activities
Nil
(6) Cash paid related with financing activities
In RMB
Item This period Last period
Amount paid to minority for subsidiary liquidation 1,049,711.28
Total 1,049,711.28
53. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information This Period Last Period
1. Net profit adjusted to cash flow of operation activities: -- --
94
无锡威孚高科技集团股份有限公司 2017 年半年度报告
Net profit 1,368,367,366.03 974,748,962.32
Add: Assets impairment provision -11,296,473.56 -2,226,555.68
Depreciation of fixed assets, consumption of oil assets and depreciation
134,523,929.25 110,533,165.50
of productive biology assets
Amortization of intangible assets 9,475,063.57 9,213,054.51
Amortization of long-term deferred expenses 1,281,403.15 4,364,011.79
Loss from disposal of fixed assets, intangible assets and other long-term
1,300,820.32 736,558.42
assets(gain is listed with “-”)
Financial expenses (gain is listed with “-”) 5,167,986.51 7,012,656.62
Investment loss (gain is listed with “-”) -953,391,921.75 -708,009,958.62
Decrease of deferred income tax asset( (increase is listed with “-”) 10,513,650.01 -1,159,293.64
Increase of deferred income tax liability (decrease is listed with “-”) -55,516.50 -55,516.50
Decrease of inventory (increase is listed with “-”) 228,492,024.91 -40,577,084.43
Decrease of operating receivable accounts (increase is listed with “-”) -684,474,762.93 -489,337,981.64
Increase of operating payable accounts (decrease is listed with “-”) 255,605,734.75 340,555,506.97
Other -13,108,062.24 -12,256,510.67
Net cash flow arising from operating activities 352,401,241.52 193,541,014.95
2. Material investment and financing not involved in cash flow -- --
3. Net change of cash and cash equivalents: -- --
Balance of cash at period end 1,595,210,818.24 1,053,514,060.95
Less: Balance of cash equivalent at year-begin 3,795,223,678.11 3,040,315,198.85
Net increasing of cash and cash equivalents -2,200,012,859.87 -1,986,801,137.90
(2) Net cash payment for the acquisition of a subsidiary of the current period
Nil
(3) Net cash received from the disposal of subsidiaries
Nil
(4) Constitution of cash and cash equivalent
Item Closing balance Opening balance
Ⅰ. Cash 1,595,210,818.24 3,795,223,678.11
Including: stock cash 555,497.42 776,872.53
Bank deposit available for payment at any time 1,594,655,320.82 3,794,446,805.58
95
无锡威孚高科技集团股份有限公司 2017 年半年度报告
Ⅲ. Balance of cash and cash equivalent at period-end 1,595,210,818.24 3,795,223,678.11
54. Notes for the statement of owners equity changes
Explain the items and adjusted amounted which have adjusted in “Other” of last year’s ending balance: nil
55. Assets with ownership or use right restricted
In RMB
Item Book value at Period-end Reason
Monetary fund 359,224.68 Margins paid for opening the LC
Notes receivable 47,896,098.81 Notes pledge for opening bank acceptance bill
Monetary fund 105,357,048.62 Fixed deposit receipt of margins and pledge paid for opening the LC
Financial assets available for sale 232,926,896.52 Frozen
Total 386,539,268.63 --
Other note:
In accordance with the civil ruling No.(2016)Y03MC2490 and No.(2016) Y03MC2492 of Shenzhen Intermediate People's Court of
Guangdong Province (Hereinafter referred to as “Shenzhen Intermediate People's Court”), the property with the value of RMB 217
million under the name of the Company and other seven respondents and the third party Shenzhen Hejun Chuangye Holdings Co.,
Ltd. was frozen. As of the end of the reporting period, 4.71 million shares of Miracle Logistics and 11,739,102 shares of SDEC held
by the Company were frozen.
56. Item of foreign currency
(1) Item of foreign currency
In RMB
Item Closing balance of foreign currency Rate of conversion Ending RMB balance converted
Monetary fund
Including: USD 25,011,368.31 6.7744 169,437,013.48
EUR 729,587.64 7.7496 5,654,012.26
HKD 94,831.80 0.8679 82,304.52
JPY 4,856,723.00 0.060485 293,758.89
Accounts receivable
Including: USD 2,557,708.39 6.7744 17,326,939.79
EUR 974,071.78 7.7496 7,548,666.65
JPY 9,327,135.40 0.060485 564,151.78
Accounts payable
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
Including: USD 705,203.98 6.7744 4,777,333.82
EUR 6,016,585.33 7.7496 46,626,129.67
CHF 81,959.15 7.0888 580,992.02
JPY 327,467,610.00 0.060485 19,806,878.39
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,
disclosed main operation place, book-keeping currency and basis for selection; if the book-keeping
currency changed, explain reasons
□ Applicable √ Not applicable
VIII. Changes of consolidation range
1. Enterprise merger not under the same control
Nil
2. Enterprise merger under the same control
Nil
3. Reverse purchase
Nil
4. The disposal of subsidiaries
Nil
5. Other reasons for consolidation range changed
Change of consolidation (i.e. New subsidiary or subsidiary liquidation etc.) and relevant information:
(1) In Feburary, Kunming Xitong nulified; the profit statement and cash flow statement of Kunming Xitong from period-begin to
cancellation date included in the consoliation range.
(2) In March, Weifu Tianshi nulified; the profit statement and cash flow statement of Weifu Tianshi from period-begin to
cancellation date included in the consoliation range.
97
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Main operation Share-holding ratio
Subsidiary Registered place Business nature Acquired way
place Directly Indirectly
Weifu Jinning Nanjing Nanjing Spare parts of internal-combustion engine 80.00% Enterprise merger under the same control
Weifu Leader Wuxi Wuxi Automobile exhaust purifier, muffler 94.81% Enterprise merger under the same control
Weifu Mashan Wuxi Wuxi Spare parts of internal-combustion engine 100.00% Investment
Weifu Chang’an Wuxi Wuxi Spare parts of internal-combustion engine 100.00% Investment
Weifu Diesel System Wuxi Wuxi Spare parts of internal-combustion engine 100.00% Investment
Weifu International Trade Wuxi Wuxi International trade 100.00% Enterprise merger under the same control
Weifu ITM Wuxi Wuxi Spare parts of internal-combustion engine 100.00% Enterprise merger not under the same control
Weifu Schmidt Wuxi Wuxi Spare parts of internal-combustion engine 66.00% Investment
Weifu Tianli Ningbo Ningbo Spare parts of internal-combustion engine 47.94% Enterprise merger not under the same control
Weifu Autocam Wuxi Wuxi Spare parts of internal-combustion engine 51.00% Enterprise merger not under the same control
Weifu Leader (Wuhan) Wuhan Wuhan Automobile exhaust purifier, muffler 60.00% Investment
Weifu Tianshi Quanjiao Quanjiao Spare parts of internal-combustion engine 52.00% Investment
Kunming Xitong Kunming Kunming Spare parts of internal-combustion engine 70.00% Enterprise merger not under the same control
Explanation on share-holding ratio in subsidiary different from ratio of voting right: Nil
Basis of the invested unit control by the Company though holds half or below voting rights; and the invested unit without controls by the Company but with over half voting rights hold:
In July 2016, subsidiary Weifu Tianli increasing register capital of 6.67 million Yuan, the capital was contributed by Ningbo Xintu Investment Enteprrise (Limited Partnership), after register
capital changed, owner’s equity in Weifu Tianli turns from 51.00% to 4747.9436.
The Company controls Weifu Tianli though holds less than 50.00% equity in Weifu Tianli:
(1) the Company is the largest shareholder of Weifu Tianli with 47.9436% equity holding, though holds less than 50.00% equity;
(2) BOD of Weifu Tianli has seven people, including four menbers from the Company; according to the Article of Association of Weifu Tianli, the resolution made by the Board whould pass by
half of the members in the Board;
(3) Chairman and GM of the Weifu are from the Company.
Other note:
Subsidiary Kunming Xitong and Weifu Tianshi cancelled respectively dated 16 Feb. 2017 and 14 March 2017;
无锡威孚高科技集团股份有限公司 2017 年半年度报告
(2) Important non-wholly-owned subsidiary
In RMB
Gains/losses attributable to minority Dividend announced to distribute for
Subsidiary Share-holding ratio of minority Ending equity of minority
in the Period minority in the Period
Weifu Jinning 20.00% 15,097,733.72 11,958,920.00 158,567,434.55
Weifu Schmidt 34.00% -180,691.33 -225,112.22
Weifu Leader 5.19% 4,478,551.50 80,212,116.13
Weifu Tianli 52.06% 317,873.16 105,804,293.58
Weifu Autocam 49.00% 22,797,932.17 156,155,478.71
Weifu Tianshi 48.00% 0.00 0.00
Kunming Xitong 30.00% -66,062.76 0.00
Total 42,445,336.47 11,958,920.00 500,514,210.76
Explanation on holding ratio different from the voting right ratio for minority shareholders:
Nil
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
Closing balance Opening balance
Subsidia
Non-current Current Non-current Non-current Current Non-current
ry Current assets Total assets Total liability Current assets Total assets Total liability
assets liability liability assets liability liability
Weifu 768,781,014.2 322,331,406.8 1,091,112,421. 244,687,050.1 296,689,292.4 704,567,574.8 334,497,494.2 1,039,065,069. 208,605,344.4
52,002,242.38 52,002,242.38 260,607,586.86
Jinning 3 6 09 0 8 0 1 01 8
Weifu
63,130,298.35 31,834,734.75 94,965,033.10 95,224,527.45 95,224,527.45 43,023,122.51 29,182,497.84 72,205,620.35 71,942,032.80 71,942,032.80
Schmidt
Weifu 1,917,603,844. 924,667,560.1 2,842,271,404. 1,277,874,985. 1,303,080,431. 1,958,025,236. 845,267,016.5 2,803,292,252. 1,330,812,656.
25,205,446.54 20,882,446.54 1,351,695,102.97
Leader 05 3 18 41 95 22 1 73 43
Weifu 268,021,465.7 226,797,834.6 494,819,300.4 224,766,222.1 303,230,543.0 241,373,421.7 233,429,329.6 474,802,751.4 188,362,850.7
78,464,320.91 83,442,808.71 271,805,659.45
Tianli 7 9 6 7 8 7 3 0 4
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
Weifu
262,885,305.5 174,645,995.2 437,531,300.7 121,683,194.4 121,683,194.4 214,880,467.8 161,333,232.9 376,213,700.8 106,756,967.3
Autoca 106,756,967.31
1 8 9 1 1 9 5 4 1
m
Weifu
19,979.13 19,979.13
Tianshi
Kunmin
3,660,443.91 3,660,443.91
g Xitong
3,280,421,927. 1,680,277,531. 4,960,699,459. 1,964,235,979. 155,672,009.8 2,119,907,989. 3,165,550,246. 1,603,709,571. 4,769,259,817. 1,906,479,851.
Total 156,327,497.63 2,062,807,349.39
91 71 62 54 3 37 23 14 37 76
In RMB
Current Period Last Period
Subsidiary Total comprehensive Cash flow from Total comprehensive Cash flow from
Operation Income Net profit Operation Income Net profit
income operation activity income operation activity
Weifu Jinning 320,793,577.32 75,554,314.01 75,554,314.01 51,524,867.08 251,871,381.48 33,326,813.22 33,326,813.22 -15,144,839.00
Weifu Schmidt 63,231,942.41 -523,081.90 -523,081.90 -3,177,601.27 18,095,244.63 -7,031,822.34 -7,031,822.34 2,058,637.80
Weifu Leader 1,397,383,244.81 87,593,822.47 87,593,822.47 83,180,660.24 1,218,577,303.58 130,828,227.30 130,828,227.30 31,688,157.98
Weifu Tianli 160,306,384.47 804,668.07 804,668.07 7,731,426.95 118,889,212.91 -414,592.85 -414,592.85 15,712,439.69
Weifu Autocam 258,060,091.53 46,391,372.85 46,391,372.85 18,287,063.55 229,131,152.17 41,800,776.02 41,800,776.02 69,446,207.30
Weifu Tianshi 117,324.79 -119,307.07 -119,307.07 189,561.81
Kunming Xitong -220,209.19 -220,209.19 900,116.46 119,032.65 -155,584.77 -155,584.77 1,839,997.79
Total 2,199,775,240.54 209,600,886.31 209,600,886.31 158,446,533.01 1,836,800,652.21 198,234,509.51 198,234,509.51 105,790,163.37
100
无锡威孚高科技集团股份有限公司 2017 年半年度报告
(4) Significant restrictions on the use of enterprise group assets and pay off debts of the enterprise group
Nil
(5) Financial or other supporting offers to the structured entity included in consolidated financial statement
range
Nil
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
(1) Explanation on equity ratio changed in subsidiary
Nil
(2) Impact on minority’s equity and owners equity attributable to parent company
Nil
3. Equity in joint venture and cooperative enterprise
(1) Important joint venture and cooperative enterprise
Share-holding Accounting
ratio treatment on
Main investment
Register
Name operation Business nature for joint
ed place Indirectl
place Directly venture and
y
cooperative
enterprise
I. Joint venture
Wuxi Weifu Environment Catalyst Co., Equity
Wuxi Wuxi Catalyst 49.00%
Ltd.(referred to as "Weifu Environment ) method
II. Cooperative enterprise
Bosch Automobile Diesel System Co., Ltd(referred Internal combustion Equity
Wuxi Wuxi 32.50% 1.50%
to as "Bosch Diesel System") engine and attachment method
Zhonglian Automobile Electronic Co., Ltd.(referred Shangha Internal combustion Equity
Shanghai 20.00%
to as "Zhonglian Automobile ") i engine and attachment method
Wuxi Weifu Fine Machinery Manufacturing Co., Internal combustion Equity
Wuxi Wuxi 20.00%
Ltd. (referred to as "Weifu Fine Machinery ") engine and attachment method
Holding shares ratio different from the voting right ratio:
Nil
Has major influence with less 20% voting rights hold, or has minor influence with over 20% (20% included) voting rights hold:
Nil
101
无锡威孚高科技集团股份有限公司 2017 年半年度报告
(2) Main financial information of the important joint venture
In RMB
Closing balance /Current Period Opening balance /Last Period
Weifu Environment Weifu Environment
Current assets 2,486,970,908.53 1,530,401,216.10
Including: cash and cash equivalents 102,805,211.67 11,576,044.86
Non -current assets 262,659,452.33 258,367,134.06
Total assets 2,749,630,360.86 1,788,768,350.16
Current liabilities 1,741,128,785.55 866,593,669.41
Non –current liabilities 9,639,308.00 9,400,000.00
Total liabilities 1,750,768,093.55 875,993,669.41
Minority shareholders’ equity 998,862,267.31 912,774,680.75
Attributable to parent company shareholders’ equity 489,442,510.99 447,259,593.58
Book value of equity investment in joint ventures 489,442,510.99 447,259,593.58
Operation income 1,571,581,523.69 1,197,521,245.04
Financial expense 30,728,151.56 17,722,869.23
Income tax expense 17,908,910.36 13,843,582.93
Net profit 90,618,512.17 72,422,856.93
Total comprehensive income 90,618,512.17 72,422,856.93
(3) Main financial information of the important cooperative enterprise
In RMB
Closing balance /Current Period Opening balance /Last Period
Zhonglian Weifu Fine Zhonglian Weifu Fine
Bosch Diesel Bosch Diesel
Automobile Machinery Automobile Machinery
Current assets 6,759,422,501.09 1,163,306,064.76 221,990,301.01 5,471,459,217.00 122,411,917.46 204,443,742.38
Non -current
2,724,213,925.76 3,884,460,656.08 127,364,869.75 2,909,694,161.00 3,951,068,747.60 132,442,239.42
assets
Total assets 9,483,636,426.85 5,047,766,720.84 349,355,170.76 8,381,153,378.00 4,073,480,665.06 336,885,981.80
Current liabilities 4,214,086,115.81 1,053,634,432.57 96,948,450.96 2,901,611,413.00 21,234,488.74 101,953,828.01
Non –current
2,257,650.00 2,257,650.00
liabilities
Total liabilities 4,214,086,115.81 1,055,892,082.57 96,948,450.96 2,901,611,413.00 23,492,138.74 101,953,828.01
Attributable to
parent company
5,269,550,311.04 3,991,874,638.27 252,406,719.80 5,479,541,965.00 4,049,988,526.32 234,932,153.79
shareholders’
equity
102
无锡威孚高科技集团股份有限公司 2017 年半年度报告
Share of net
assets calculated
1,791,647,105.75 798,374,927.65 50,481,343.96 1,863,044,268.10 809,997,705.26 46,986,430.76
by shareholding
ratio
--Goodwill 267,788,761.35 1,407,265.96 267,788,761.35 1,407,265.96
--Unrealized
profit of internal -16,943,766.10 -26,457.43 -14,912,217.04 -12,012.88
trading
--Other -1.03 -529,034.03 -0.28 -529,034.03
Book value of
equity investment 2,042,492,099.97 799,782,193.61 49,925,852.50 2,115,920,812.13 811,404,971.22 46,445,383.85
in joint ventures
Operation income 7,780,712,323.52 8,953,773.36 120,872,329.06 4,980,318,551.05 6,785,544.55 82,788,909.34
Net profit 1,750,186,156.84 980,886,111.95 17,474,566.01 1,125,855,393.67 862,587,593.21 13,701,757.56
Total
comprehensive 1,750,186,156.84 980,886,111.95 17,474,566.01 1,125,855,393.67 862,587,593.21 13,701,757.56
income
Dividends
received from
318,528,894.62 625,424,809.56 3,600,000.00
joint venture in
the year
(4) Financial summary for non-important Joint venture and affiliate enterprise
Nil
(5) Major limitation on capital transfer ability to the Company from joint venture or affiliates
Nil
(6) Excess loss occurred in joint venture or affiliates
Nil
(7) Unconfirmed commitment with joint venture investment concerned
Nil
(8) Intangible liability with joint venture or affiliates investment concerned
Nil
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
4. Major conduct joint operation
Nil
5. Structured body excluding in consolidate financial statement
Nil
X. Risk related with financial instrument
Main financial instrument of the Company including equity investment, loans, account receivable, account
payable etc., more details of the financial instrument can be found in relevant items of Note VII. 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 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 carrying 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. Risk management department and financial control department manager and monitor those risk exposure
to ensuring the risks are control in a limited range.
1. Credit Risk
Credit risk refers to the one party fails to perform the obligation of the financial instruments, form the other party
company mainly face credit risk for financial loss caused by the customer credit risks. In order to prevent the risks,
the Company formulated an evaluation system for the new client’s credit and system to analyze the book credit for
regular customer. The evaluation system for the new client’s credit aims at the new clients, the Company will
conduct an background investigation based on the established process, with purpose of determine whether offer
credit limit to the client and the amount of the credit and credit terms or not. Whereby, the Company setting a
credit limits and credit period for every new client and such limit is the maximum amount without additional
approval. The system to analyze the book credit for regular customer refers to after purchase order received by
regular customer, the Company will examine the order amount and outstanding balance, if the total over the credit
limit, on the premise of additional approval, sales on account shall be realized, or prepayments for relevant
amount shall be required.
Furthermore, as for the sales on account occurred, the Company will guarantee the total credit risks in a
controlling range by analyzed and review the monthly report of the risk attention for account receivables.
104
无锡威孚高科技集团股份有限公司 2017 年半年度报告
The maximum credit risk exposure of the Company is the book amount of such financial assets, till end of 30 June
2017; lists of the maximum credit risk exposure of the Company are as:
Item Amount of merge Amount of parent company
Accounts receivable 2,028,796,617.26 875,605,550.39
Other receivables 8,377,418.93 87,552,518.74
2. 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 produces, mainly includes the IRR, FX risk and other price risk.
(1) Interest rate risk (IRR)
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, than choose fixed rate; if the rate in future period will decline prospectively, than 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.
(2) Foreign exchange (FX) risk
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 and JPY, except for the USD, EUR, SF and JPY carried out for the equipment
purchasing of parent company and Autocam, system material purchasing from Weifu Diesel, system technical
service and trademark usage costs from Weifu Diesel and the import and export of Weifu International Trade,
other main business of the Company are pricing and settle with RMB (Yuan). In consequence of 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.
End as 30 June 2017, except for the follow assets or liabilities listed with foreign currency, assets and liabilities of
the Company are carried with RMB
Foreign currency assets of the Company till end of 30 June 2017:
Item Ending foreign currency balance Convert rate Ending RMB balance converted Ratio in assets(%)
Monetary fund
Including: USD 25,011,368.31 6.7744 169,437,013.48 0.90
EUR 729,587.64 7.7496 5,654,012.26 0.03
JPY 4,856,723.00 0.060485 293,758.89
HKD 94,831.80 0.8679 82,304.52
Accounts receivable
Including: USD 2,557,708.39 6.7744 17,326,939.79 0.09
EUR 974,071.78 7.7496 7,548,666.65 0.04
JPY 9,327,135.40 0.060485 564,151.78
Total ratio in assets 1.06
105
无锡威孚高科技集团股份有限公司 2017 年半年度报告
Foreign currency liabilities of the Company till end of 30 June 2017:
Item Ending foreign currency balance Convert rate Ending RMB balance converted Ratio in liabilities(%)
Accounts payable
Including: USD 705,203.98 6.7744 4,777,333.82 0.10
EUR 6,016,585.33 7.7496 46,626,129.67 0.98
CHF 81,959.15 7.0888 580,992.02 0.01
JPY 327,467,610.00 0.060485 19,806,878.39 0.42
Total ratio in liabilities 1.51
③Other pricing risk
Classification of the Company held is the equity investments in financial assets available for sale, and such
investment can be measured by fair value on balance sheet date, thus, the Company owns risks of stock market
changes.
Furthermore, on the premise of deliberated and approved in 16th meeting of 7th session of the Board, 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 a
“Management Mechanism of Capital Financing”, and well-defined the authority approval, investment
decision-making, calculation management and risk controls for the entrust financing in order to guarantee a
security funds and prevent investment risk efficiently. 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
3 years in principle; in variety of investment, the Company did not invested for the stocks, derivative products,
security investment fund and the entrust financial products aims st security investment as well as other investment
with securities concerned.
3. 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.
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
Ending fair value
Item
First-order Second-order Third-order Total
I. Sustaining measured by fair value -- -- -- --
(II) Available for sale financial assets 287,266,200.00 287,266,200.00
(2) Equity instrument investment 287,266,200.00 287,266,200.00
Total assets sustaining measured by fair value 287,266,200.00 287,266,200.00
II. Non-persistent measure -- -- -- --
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on
first-order
According to relevant requirement of accounting standards, the Company continues to measure the financial
assets available for sale-equity instrument investment by fair value on balance sheet date. On 30 June 2017, the
financial assets available for sale-equity instrument investment held by the Company refers to the SDEC (stock
code: 600841) and Miracle Logistics (Stock code: 002009), determining basis of the market price at period-end
refers to the current closing price.
XII. Related party and related transactions
1. Parent company of the enterprise
Share-holding ratio
Registration Voting right ratio
Parent company Business nature Registered capital on the enterprise for
place on the enterprise
parent company
Wuxi Industry Group Wuxi Operation of state-owned assets RMB 3,688,671,000 20.22% 20.22%
Explanation on parent company of the enterprise
Wuxi Industry Development Group Co., Ltd was solely state-owned enterprise funded and established by Wuxi Municipal People’s
Government which mainly took responsibility of authorizing the state-owned assets operation within a certain areas, investment
management of significant project, investment and development of manufacturing and services and venture capital in high-tech
achievement
Ultimate controller of the Company is State-owned Assets Supervision & Administration Commission of Wuxi Municipality of
Jiangsu Province.
2. Subsidiary of the Enterprise
Found more in Note IX. 1.” Equity in subsidiary”
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
3. Cooperative enterprise and joint venture
Found more in Note IX.3. “Equity in joint venture and cooperative enterprise”
4. Other related party
Other related party Relationship with the Enterprise
Germany BOSCH The second largest shareholder of the Company
Key executive Director, supervisor and senior executive of the Company
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Approved transaction Whether more than
Related party Content Current Period Last Period
limit the transaction limit
Weifu Fine Machinery Goods 20,428,172.03 40,000,000.00 No 16,692,661.89
Bosch Diesel System Goods 101,905,922.60 170,000,000.00 No 71,879,082.59
Weifu Environment Goods 683,351,475.87 1,500,000,000.00 No 572,939,263.87
Germany BOSCH Goods 77,035,723.88 120,000,000.00 No 44,661,132.84
Goods sold/labor service providing
In RMB
Related party Content Current Period Last Period
Weifu Fine Machinery Goods 1,816,410.96 1,609,312.89
Bosch Diesel System Goods 1,684,350,434.59 916,860,426.59
Weifu Environment Goods 37,016,920.13 11,734,655.85
Germany BOSCH Goods 1,583,518.80 570,053.25
(2) Related trusteeship management/contract & entrust management/ outsourcing
Nil
(3) Related lease
As a lessor for the Company:
In RMB
Lessee Assets type Lease income in recognized in the Period Lease income in recognized last the Period
Weifu Environment Protection Workshop 1,194,313.00
Explanation on related lease
Weifu Leader entered into the house leasing contract with Weifu Environment Protection, as for the plant locates
at No.9 Linjiang Road, Wuxi new district, owed by Weifu Leader, rent-out to Weifu Environment Protection,
agreements are made as: Rental from 1 January 2017 to 31 December 2017 was RMB 2,388,626, the amount has
settlement on schedule in the period
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
(4) Related guarantee
Nil
(5) Related party’s borrowed funds
Nil
(6) Related party’s assets transfer and debt reorganization
Nil
(7) Remuneration of key manager
In RMB
Item Current Period Last Period
Remuneration of key manager 2,310,000.00 2,184,000.00
(8) Other related transactions
Item Related party Current Period Last Period
Fixed assets purchased Weifu Environment 170,940.17
Technology royalties paid etc. Germany BOSCH 2,468,484.66 4,346,866.88
Sales of fixed assets Weifu Environment 141,880.34
6. Receivable/payable items of related parties
(1) Receivable item
In RMB
Closing balance Opening balance
Item Related party
Book balance Bad debt reserves Book balance Bad debt reserves
Account receivable Weifu Fine Machinery 654,444.16 457,862.89
Account receivable Bosch Diesel System 541,879,180.80 306,666,005.52
Account receivable Germany BOSCH 1,184,640.20 18,830.66 188,306.61 18,830.66
Account receivable Weifu Environment 3,056,402.92 6,927,940.03
Account paid in advance Weifu Environment 1,034,644.92
(2) Payable item
In RMB
Item Related party Ending book balance Opening book balance
Note payable Weifu Environment 200,000,000.00 570,000,000.00
Account payables Weifu Fine Machinery 12,394,613.24 10,028,895.19
Account payables Weifu Environment 339,010,717.85 33,078,755.66
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
Account payables Bosch Diesel System 6,410,268.69 11,419,814.38
Account payables Germany BOSCH 37,296,923.44 17,804,420.30
7. Commitments of related party
Nil
XIII. Share-based payment
Nil
XIV. Commitment or contingency
1. Important commitments
Important commitments in balance sheet date
Nil
2. Contingency
(1) Contingency on balance sheet date
①Guarantees to subsidiary
Whether
Guarantee amount
Guarantee Terminated guarantee
Guarantee provided Debit bank (in 10 thousand Starting from
received dated implemented or
Yuan)
not
Weifu High-Technology Ningbo branch of China
Weifu Tianli 6,000.00 2016-11-15 2021-11-10 N
Group Co., Ltd. Everbright Bank
(2) For the important contingency not necessary to disclosed by the Company, explained reasons
The Company has no important contingency that need to disclosed
XV. Events after balance sheet date
1. Important non adjustment matters
Nil
2. Profit distribution
In RMB
Profit or dividend plans to distributed 605,370,342.00
Profit or dividend declare to distributed which have been approved 605,370,342.00
3. Sales return
Nil
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
4. Other events after balance sheet date
The first extraordinary shareholders general meeting 2017 was held on 25 July 2017 for deliberation and approved
the proposal of consolidation by merger of subsidairy Weifu Diesel
XVI. Other important events
1. Previous accounting errors collection
Nil
2. Debt restructuring
Nil
3. Assets replacement
Nil
4. Pension plan
The “Enterprise Annuity Plan under the name of WFHT” has deliberated and approved by 8th meeting of 7th
session of the Board: 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 amount paid by enterprise shall not over the 1/12 of the total salary of last years, amount paid by
individual and enterprise shall not over the 1/6 of the total salary of last year, in accordance with the State’s
annuity policy, the Company will adjusted 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 5 percent of
the total salary of last year, specific paying ratio later shall be adjust correspondingly in line with the operation
condition of the Company.
In December 2012, the Company received the “Reply on annuity plans reporting under the name of WFHT” from
labor security administration department, later, the Company entered into the “Entrusted Management Contract of
the Annuity Plan of WFHT” with PICC.
5. Segment
(1) Recognition basis and accounting policy for reportable segment
(1) Recognition basis and accounting policy for reportable segment
Determine the operating segments in line with the internal organization structure, management requirement and
internal reporting system. Operating segment of the Company refers to the followed components that have been
satisfied at the same time:
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
①the component is able to generate revenues and expenses in routine activities;
②management of the Company is able to assess the operation results regularly, and determine resources
allocation and performance evaluation for the component;
③being analyzed, financial status, operation results and cash flow of the components are able to required by the
Company
The Company mainly engaged in the manufacture of fuel system of internal combustion engine products, auto
parts, muffler and purifier etc., based on the product segment, the Company determine three reporting segment as
auto fuel injection system, air intake system and car after-treatment system. Accounting policy for the three
reporting segments are shares the same policy state in Note III.
The segment assets do not include the equity investments that are measured at fair value and its changes are
included in the current profits and losses, and derivatives, dividends receivable, interest receivable, and financial
products that are due within one year, available-for-sale financial assets, long-term equity investments, and other
unallocated assets, mainly due to these assets are not related to the operation of each product.
(2) Financial information for reportable segment
In RMB
Add: Investments or
earnings checked by
equity method, financial
products or their
Product segment Automotive holdings and disposal
Automotive air
Item of automotive fuel post-processing gains, available-for-sale Offset of segment Total
intake system
injection system system financial assets or
holding and disposal
gains and other
unallocated assets or
gains and losses
Operating
3,166,415,412.10 1,435,665,004.15 214,131,784.44 88,086,601.67 4,728,125,599.02
revenue
Operating
2,374,086,242.73 1,287,372,861.30 162,107,148.35 88,086,601.67 3,735,479,650.71
cost
Total
441,051,606.33 62,831,980.19 3,071,797.51 955,437,915.36 0.00 1,462,393,299.39
profit
Net profit 375,026,194.32 53,268,305.54 2,882,055.97 937,190,810.20 0.00 1,368,367,366.03
Total
8,370,809,158.40 2,355,730,067.77 690,330,439.22 8,639,270,162.01 1,190,517,068.63 18,865,622,758.77
assets
Total
4,200,267,277.25 1,333,603,269.05 413,065,062.03 1,190,452,160.96 4,756,483,447.37
liabilities
6. Major transaction and events makes influence on investor’s decision
Nil
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
XVII. Principle notes of financial statements of parent company
1. Accounts receivable
(1) Category
In RMB
Closing balance Opening balance
Bad debt
Book balance Bad debt reserves Book balance
Types Book reserves
Book value
Accru value Accru
Amount Ratio Amount Amount Ratio Amount
al ratio al ratio
Receivables
with bad debt
100.00 2,872,766.5 875,605,5 614,418,7 100.00 2,823,871.
provision 878,478,316.92 0.33% 0.46% 611,594,846.92
% 3 50.39 18.75 % 83
accrual by credit
portfolio
100.00 2,872,766.5 875,605,5 614,418,7 100.00 2,823,871.
Total 878,478,316.92 0.33% 0.46% 611,594,846.92
% 3 50.39 18.75 % 83
Account receivable with single significant amount and withdrawal bad debt provision separately at period end :
□ Applicable √ Not applicable
Account receivable provided for bad debt reserve under aging analysis method in the groups:
√ Applicable □ Not applicable
In RMB
Closing balance
Age
Account receivable Bad debt reserves Accrual ratio
Sub item of within one year
Within 6 months 348,560,948.08
6 months to one year 4,125,412.12 412,541.21 10.00%
Subtotal within one year 352,686,360.20 412,541.21
1-2 years 4,311,150.63 862,230.13 20.00%
2-3 years 352,117.36 140,846.95 40.00%
Over 3 years 1,457,148.24 1,457,148.24 100.00%
Total 358,806,776.43 2,872,766.53 0.80%
Explanations on combination determine:
Except for the receivables with impairment reserves accrual singly; base on the actual loss ratio of the receivables
of previous years, with same or similar credit portfolio, and combining actual condition accrual bad debt reserves
to determined the accrual ratio for bad debt reserves
In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable:
Nil
(2) Bad debt provision accrual, collected or reversed
Accrual bad debt provision 48,894.70 Yuan; collected or reversed 0.00 Yuan.
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
(3) Receivables actually written-off during the reporting period
Nil
(4) Top 5 receivables at ending balance by arrears party
Total receivables collected by arrears party for the Period amounting to RMB 672,707,340.08, takes 76.58 percent
in closing balance of the account receivables, RMB 0 are accrual correspondingly for bad debt reserves.
(5) Account receivable derecognition due to financial assets transfer
Nil
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Nil
2. Other accounts receivable
(1) Classification
In RMB
Closing balance Opening balance
Bad debt
Book balance Book balance Bad debt reserves
Type reserves
Book value Book value
Accrua Accrual
Amount Ratio Amount Amount Ratio Amount
l ratio ratio
Other receivable with
single significant
87,563,791.0 100.0 11,272.3 87,552,518. 46,361,343.7 100.00 46,349,571.
amount and 0.01% 11,772.32 0.03%
6 0% 2 74 9 % 47
withdrawal bad debt
provision separately
87,563,791.0 100.0 11,272.3 87,552,518. 46,361,343.7 100.00 46,349,571.
Total 0.01% 11,772.32 0.03%
6 0% 2 74 9 % 47
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period:
□ Applicable √ Not applicable
In combination, other accounts receivable whose bad debts provision was accrued by age analysis:
√ Applicable □ Not applicable
In RMB
Closing balance
Age
Other receivable Bad debt reserves Accrual ratio
Sub item of within one year
Within 6 months 1,824,629.77
Subtotal within one year 1,824,629.77
2-3 years 28,180.79 11,272.32 40.00%
Total 1,852,810.56 11,772.32 0.64%
Explanations on combination determine:
Except for the other receivables with impairment reserves accrual singly; base on the actual loss ratio of the
114
无锡威孚高科技集团股份有限公司 2017 年半年度报告
receivables of previous years, with same or similar credit portfolio, and combining actual condition accrual bad
debt reserves to determined the accrual ratio for bad debt reserves
In combination, withdrawal proportion of bad debt provision based on balance proportion for other account receivable
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable
□ Applicable √ Not applicable
(2) Bad debt provision accrual, collected or reversed
Accrual bad debt provision 0.00 Yuan; collected or reversed 500.00 Yuan
Including major amount of bad debt provision which switch-back or collected in the Period: nil
(3) Other receivables actually written-off during the reporting period
Nil
(4) Other receivables by nature
In RMB
Nature Ending book balance Opening book balance
Staff loans and petty cash 1,772,429.77 690,885.00
Balance of related party within the scope of the merger 85,710,980.50 45,000,000.00
Other 80,380.79 670,458.79
Total 87,563,791.06 46,361,343.79
(5) Top 5 other receivables at ending balance by arrears party
In RMB
Ratio in total ending
Ending balance of
Company Nature Closing balance Book age balance of other
bad bet provision
receivables
Current money with
Weifu Chang’an 45,000,000.00 Within 6 months 51.39%
the subsidiary
Current money with
Weifu Schmidt 33,480,000.00 Within 6 months 38.23%
the subsidiary
Current money with
Weifu Mashan 7,230,980.50 Within 6 months 8.26%
the subsidiary
Financial Bureau of new Wall special fund for
district of the People’s the 2nd phase of 421,810.00 Within 6 months 0.48%
Government of Wuxi industry park
Employee 1 Reserve fund 146,900.00 Within 6 months 0.17%
Total -- 86,279,690.50 -- 98.53%
(6) Account receivable with government grand involved
Nil
115
无锡威孚高科技集团股份有限公司 2017 年半年度报告
(7) Other account receivable derecognition due to financial assets transfer
Nil
(8) Assets and liabilities resulted by other account receivable transfer and continues involvement
Nil
3. Long-term equity investment
In RMB
Closing balance Opening balance
Item Impairme
Book balance Impairment Book value Book balance Book value
nt
Investment for subsidiary 1,692,749,189.17 1,692,749,189.17 1,701,571,723.71 1,701,571,723.71
Investment for associates
2,811,885,904.35 2,811,885,904.35 2,889,433,927.94 2,889,433,927.94
and joint venture
Total 4,504,635,093.52 4,504,635,093.52 4,591,005,651.65 4,591,005,651.65
(1) Investment for subsidiary
In RMB
Impairmen Ending balance of
The invested entity Opening balance Increased Decreased Closing balance
t accrual impairment provision
Weifu Jinning 178,639,593.52 178,639,593.52
Weifu Leader 460,113,855.00 460,113,855.00
Weifu Diesel System 260,187,500.00 260,187,500.00
Weifu Mashan 168,693,380.51 168,693,380.51
Weifu Chang’an 220,902,037.30 220,902,037.30
Weifu International Trade 30,999,996.22 1,849,258.63 32,849,254.85
Weifu ITM 167,000,000.00 167,000,000.00
Weifu Schmidt 31,680,000.00 31,680,000.00
Weifu Tianli 90,229,100.00 90,229,100.00
Weifu Autocam 82,454,467.99 82,454,467.99
Kunming Xitong 5,471,793.17 5,471,793.17
Weifu Tianshi 5,200,000.00 5,200,000.00
Total 1,701,571,723.71 1,849,258.63 10,671,793.17 1,692,749,189.17
(2) Investment for associates and joint venture
In RMB
+,- Ending
Addi Other Othe balance
tiona Capi compreh r Impair of
Company Opening balance l Investment Cash dividend or Ot Closing balance impairm
tal ensive equit ment
gains recognized profit announced he ent
inve redu income y accrua
under equity to issued r provisio
stme ction adjustme chan l
nt nt ge n
116
无锡威孚高科技集团股份有限公司 2017 年半年度报告
I. Joint venture
II. Associated enterprise
Bosch
2,031,654,137.70 567,647,961.46 -637,057,789.23 1,962,244,309.93
Diesel
Zhonglian
Automobi 811,404,971.22 196,177,222.39 -207,800,000.00 799,782,193.61
le
Weifu
Fine
46,374,819.02 3,484,581.79 49,859,400.81
Machiner
y
Subtotal 2,889,433,927.94 767,309,765.64 -844,857,789.23 2,811,885,904.35
Total 2,889,433,927.94 767,309,765.64 -844,857,789.23 2,811,885,904.35
4. Operating income and cost
In RMB
Current Period Last Period
Item
Income Cost Income Cost
Main business 1,473,896,379.07 1,129,630,086.97 900,441,396.25 732,893,304.94
Other business 152,584,036.64 138,992,574.61 83,628,572.55 75,450,767.60
Total 1,626,480,415.71 1,268,622,661.58 984,069,968.80 808,344,072.54
5. Investment gains
In RMB
Item Current Period Last Period
Income of long-term equity investment calculated based on cost 949,835,680.00
Income of long-term equity investment calculated based on equity 767,309,765.64 537,117,080.67
Investment income from disposal of long-term equity investments -8,261,290.60
Investment income from period of holding
235,500.00 1,584,389.13
the financial assets available for sale
Investment income obtained from disposal of financial assets available
24,625,516.88 20,210,318.13
for sale
Entrust financial income 97,021,850.83 95,883,421.29
Total 1,830,767,022.75 654,795,209.22
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无锡威孚高科技集团股份有限公司 2017 年半年度报告
XVIII. Supplementary Information
1. Current non-recurring gains/losses
√ Applicable □ Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset -1,300,820.32
Governmental subsidy reckoned into current gains/losses (not including the subsidy including the
compensation for the
enjoyed in quota or ration according to national standards, which are closely relevant to 17,106,756.73 new construction
enterprise’s business) assets after parent
company relocation
Profit and loss of assets delegation on others’ investment or management 97,021,850.83
Held transaction financial asset, gains/losses of changes of fair values from transaction
financial liabilities, and investment gains from disposal of transaction financial asset,
24,625,516.88
transaction financial liabilities and financial asset available for sales, exclude the
effective hedging business relevant with normal operations of the Company
Switch-back of impairment of account receivable that practice impairment test
1,208,025.21
independent
Other non-operating income and expenditure except for the aforementioned items 654,034.81
Less: Impact on income tax 20,999,064.11
Impact on minority shareholders’ equity 658,559.28
Total 117,657,740.75 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
2. REO and earnings per share
Earnings per share
Weighted
Profits during report period
average ROE
Basic EPS (RMB/Share) Diluted EPS (RMB/Share)
Net profits belong to common stock stockholders of the
9.84% 1.31 1.31
Company
Net profits belong to common stock stockholders of the
8.97% 1.20 1.20
Company after deducting nonrecurring gains and losses
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
118
无锡威孚高科技集团股份有限公司 2017 年半年度报告
(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)Explain difference of the accounting data under accounting rules in and out of China, and where there is
a adjustment on the data audited by foreign auditing organ, listed the name of such foreign organ
Nil
4. Other
Nil
119
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