Financial Overview

(million yuan)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	Rate of Change (%)	Factors
Sales	5,015.28	5,898.11	(14.97)	Due to the effect of domistic automotive industry, the increase rate of sales decreased.
Operating profit	1,025.38	1,360.77	(24.65)	-The sales of 3 business units did not reach expected target;
Ordinary profit	1,038.02	1,396.81	(25.69)
Net profit	934.24	1,255.51	(25.59)

-The company produced 1.35 million units of diesel multi-cylinder pumps and 5.05 million sets of fuel injector assemblies in 2012.The company has a leading production line of the exhaust aftertreatment systems in China and produced 1.24 million sets of converters in 2012.

Fund-raising

-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 2012 annual report)

Cooperation with Technical Center

-Weifu High-Technology and Chongqing Weichai Engine Plant Technical Center have jointly developed the P9 pumps, and is now conducting trial production. They have already completed testing and inspection of 20 oil pumps for 6-clinder engines. (From a press release, December 11, 2012)

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

R&D

- The expenditure on R&D  in 2012 reached 162.34 million yuan, 3.24% of the company's revenue.

- The company's diesel fuel injection system technology is in a leading position in China.The company has independently developed WAPS system and currently production preparation is in progress. The company also successfully developed high-pressure variable pumps supporting high-pressure common rail system and has been bulk supply.The company has the core technology of the post-processing system and is capable of supplying for downstream customers. The Company successfully developed new products to meet State IV emission requirements of diesel vehicles such as SCR, POC, DOC.

-Wuxi Weifu Leader Catalytic Converter co., Ltd., a subsidiary of Weifu High-Technology, held an opening ceremony for its new technical development center on November 26. The 9,450-square-meter-facility has a number of testing and research rooms, which include a muffler testing room, a vibration testing room, an engine exhaust performance testing room, an exhaust gas flow laboratory, a welding technology laboratory, and a thyristor technology laboratory. (From a press release, December 11, 2012)

Capital Investment Projects for FY 2012

(in million yuan)

	Projects	Amount invested in 2012	Progress　(%)
1.	R&D of WAPS(Common Rail Accumulator Distribution System), industrialization and the capacity expansion on spare parts of diesel common-rail system	7.02	42.2
2.	Construction project in industrial zone	4.42	3.6
3.	Industrialization of tail treatment system	31.90	26.1
4.	Project of engineering research institution	11.31	99.9

 

Investment in China
-In September 2012, Ningbo Weifu Tianli Turbocharging Technology Co., Ltd., a subsidiary of Weifu High-Technology Group Co., Ltd., and the authorities of Ningbo High-Tech Industrial Park (Jiangbei) signed a letter of intent to invest in a new plant project. The company is going to spend more than 200 million yuan to construct at the industrial park a new turbocharger factory capable of producing 1 million units a year. The expansion is based on the company’s projects to increase its yearly production capacity to 2 million units and set up a technical development center to engineer turbochargers for vehicles with 4-cylinder engines or smaller engines. (From a press release, October 10, 2012)

-The Company will acquire 14.8 million unquoted Shanghai Diesel Engine shares, paying 13.46 yuan for each share. When the transaction is completed, Shanghai Diesel will be capitalized at 543,182,831 yuan, and Weifu High-Technology will own 2.72 percent in the company. (From an announcement by the company, March 24, 2012)

-Weifu High-Technology Group Co., Ltd. issued new unquoted securities to raise funds for the following projects:1. Developing and commercializing the WAPS common rail accumulator-type distribution system. Increasing capacity to produce components for common rail diesel systems. (Planned amount of investment: 650 million yuan) 2. Commercializing the exhaust gas purification system (Planned amount of investment: 260 million yuan at Wuxi Weifu Leader Catalytic Converter co., Ltd.) 3. Conducting process research project (Planned amount of investment: 70 million yuan) 4. Establishing a new industrial zone called the Weifu Industrial Park (Planned amount of investment: 650 million yuan) 5. Conducting research and development of automotive power cells and their materials (Planned amount of investment: 100 million yuan) 6. Acquiring other businesses (Planned amount of investment: 343.815 million yuan)(From an announcement by the company, February 28, 2012)