Weifu High-Technology Group Co., Ltd. FY2011

Weifu High-Technology Group Co., Ltd. FY2011

Business Highlights

Financial Overview

(million yuan)
  FY2011 FY2010 Rate of
Change (%)
Sales 5,898.11 5,371.21 9.81 Due to the effect of domistic automotive industry, the increase rate of sales decreased.
Operating profit 1,360.77 1,486.29 (8.45) -The sales of 3 business units did not reach expected target;
-The production system was not flexible enough;
-The 3-guarantee fee of aftersales remained high;
Ordinary profit 1,396.81 1,499.85 (6.87)
Net profit 1,255.51 1,381.36 (9.11)


-In February 2012, The Company issued approximately 112 million new shares in a private placement. As a result of the capital expansion, the ratio of shareholding by Wuxi Industry Development Group Co., Ltd. and Bosch will be increased to 20 percent and 14 percent, respectively. (From the company 2011 annual report)

Start construction of Weifu Industrial Park

-On March 30, 2011 The Company held a groundbreaking ceremony at the Weifu Industrial Park. The new plant at the high-tech zone is expected to generate 10 billion yuan in sales by  2014. (From news releases issued by multiple sources on April 1, 2011)

Joint Venture

-In April 2011, the Company and Anhui Quanchai Power Co., Ltd. established a joint venture Anhui Weifu Tianshi Machinery Co., Ltd., with a registered capital amounting to 10 million yuan. The Company has invested 5.2million yuan, holding 52% of the share. The joint venture will mainly responsible for production of Fuel system, Electric control and Tailgas treatment system for diesel engine. The construction was planned to start before end of September and after completion, the joint venture will bring an annual avenue of 500million yuan.(From news releases on June 9, 2011)


-A state Technical Center
-A  Post-Doctor Working Station for fuel injection pump R&D


-2011, the Company received from Wuxi New District Financial Bureau a subsidy of 48.53million yuan for R&D of new products and a specific fund of 7.1million yuan for reforming of production line technology and R&D ability of common rail system for diesel by distributive high-voltage.

-On Dec. 15, 2011, Wuxi Weifu Leader Catalytic Converter co., Ltd., the Company's subsidiary, held a ceremony of breaking ground for its R&D Center building. The building, with an area of 3000 square, incorporates a series laboratories as anechoic chamber, vibration test room, engine pedestal chamber, exhaust system flow test chamber, welding technology laboratory, carrier and specimen packaging technology laboratory and SCR technology laboratory. The facilities will largely strengthen the testing ability of Weifu Leader.(From news realeases on December 31, 2011)

Investment Activities

Capital Investment Projects for FY 2011

(in million yuan)
  Projects Amount invested in 2011 Progress
1. R&D of WAPS(Common Rail Accumulator Distribution System), industrialization
and the capacity expansion on spare parts of diesel common-rail system
169.32 31%
2. Construction project in 
industrial zone
16.39 1%
3. Industrialization of tail 
treatment system 
20.21 8%
4. Project of engineering research institution 26.21 99%

Investment in China
-The Company signed Agreement of Equity Transformation respectly with Wuxi Industry Group and Kunming Jinlida Machinery Co., Ltd. for purchasing equity of Kunming Xitong Machinery Co., Ltd.. The Company paid 4.235million yuan for 50% equity held by Wuxi Industry Group and 1.4688 million yuan for 20% held by Kunming Jinlida Machinery Co., Ltd. After the transfer, the Company became the majority shareholder of the joint-venture. (From the company 2011 annual report)

-The Company will raise 150 million yuan in capital to install additional production equipment to manufacture superchargers for 6-cylinder engines at Wuxi Weifu ITM Supercharger Technique Co., Ltd., its wholly owned subsidiary. With this investment, the yearly production capacity at the subsidiary is expected to reach 300,000 units by 2015. Wuxi Weifu ITM Supercharger Technique currently produces superchargers for 4-cylinder diesel engines. (From an announcement by the company, March 19, 2011)