Financial Overview

(million yuan)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	Rate of Change (%)	Factors
Sales	5,589.31	5,015.28	11.45%	-The Company's fuel injection systems sales increased; -Due to the advancement of state IV emission regulations, the Company's post-processing system - mufflers sales increased.
Operating profit	1,232.37	1,025.38	20.19%	-The profits increased as the Company's sales increased.
Ordinary profit	1,257.31	1,038.02	21.13%
Net profit	1,154.29	934.24	23.55%

-The company produced 1.63 million units of diesel multi-cylinder pumps and 6.32 million sets of fuel injector assemblies in 2013. The company has a leading production line of the exhaust aftertreatment systems in China and produced 1.59 million sets of converters in 2013. The Company produced 0.28 million sets of superchargers.

Contract

-Wuxi Weifu Environmental Catalysts Co., Ltd., a subsidiary of the Company, said it will supply catalysts for General Motors' Chevrolet Sail. The company will become the first Chinese manufacturer that provides catalysts to a foreign automaker. (From a press release on January 21, 2014)

-Ningbo Weifu Tianli Supercharger Technology Co., Ltd., a subsidiary of the Company, has started supplying its electronic variable-geometry turbochargers it had developed in-house to OED Engine Co., Ltd. The turbochargers will be used on engines meeting the China IV standards. The company has supplied over 400 units of these turbochargers as of June 30, 2013. (From a press release on August 30, 2013)

Acquisition

-The Company announced in June 2013 that it would acquire 9,300,000 unlisted stocks of Miracle Automation Engineering Co., Ltd., logistic automation system engineering company in Wuxi, China. The price per stock is RMB 7.455, and the total amount will be RMB 69.3315 million. After the acquisition, Weifu’s shareholding ratio will be 2.90%.  Miracle Automation Engineering was listed at the Shenzhen Stock Exchange in 2004.  It is a large high-tech enterprise whose business varies from designs and production of automobile assembly logistics automation systems, environmental engineering, and production of machineries. It is reported that Weifu decided to invest in the company as its potential growth is highly expected.(From a press release on June 4, 2013)

-In 2013, the Company acquired 1% share of Wuxi Autocam Precision Machine Co., Ltd. held by American company, Autocam, thus, the Company held 51% share of Wuxi Autocam and Autocam held 49% share of Wuxi Autocam. (From the Company's 2013 annual report)

Pass the Review

-Wuxi Weifu Leader Catalytic Converter Co., Ltd., which is a subsidiary of the Company, announced that its new automotive emissions laboratory in Jiangsu Province has passed testing by the Jiangsu Provincial Science & Technology Commission. The 3,150-square-meter testing facility was established jointly with Nanjing University. It consists of a fuel-quality control section, a development support section, and an exhaust gas research section. (From a press release on January 9, 2014)

Acquire Export Certification

-Nanjing Weifu Jinning Co., Ltd., the Company’s subsidiary producing VE pumps, has acquired an RoHS certification, which is an EU directive for environmental protection. Through this achievement, the company is allowed to export its products to all 27 EU countries. The subsidiary produces over 600,000 Q-type single cylinder pumps a year. (From a press release, January 21, 2013)

R&D Facility

-The Company has a  Post-Doctor Working Station for fuel injection pump R&D and state Technical Center.

-The Company has provincial engineering center - engineering institute of technology center, exhaust aftertreatment R&D center and supercharger R&D center.

New Products

-The Company developed new products which meet  state IV emission requirements of diesel vehicles such as SCR, POC, DOC. Nanjing Weifu Jinning Co., Ltd., a subsidiary of the Company, developed electronically controlled VE pumps, which meet state IV emission standard. (From the Company's 2013 annual report)

Capital Investment Projects for FY 2013

(in million yuan)

Projects	Amount invested in 2013	Progress (%)
R&D of WAPS(Common Rail Accumulator Distribution System), industrialization and the capacity expansion on spare parts of diesel common-rail system	9.85	44.20%
Construction project in industrial zone	130.42	26.40%
Industrialization of tail treatment system	63.62	41.30%
Project of engineering research institution	0.48	100.00%
New plant construction at Ningbo Weifu Tianli Supercharger Technology Co., Ltd.	22.10	25.50%
Equipments technical renovation at parent company	24.18	-
Equipments at Wuxi Autocam Precision Machine Co., Ltd.	33.53	-

 

Investment in China
-The Company said that it will upwardly revise its investment in the commercialization project for exhaust gas after treatment system components at Wuxi Weifu Leader Catalytic Converter Co., Ltd., one of its subsidiaries. In addition to using capital raised by issuing new shares, the subsidiary will invest additional 80 million yuan from its own resources. The funds will be spent for purchasing 30,000-square-meter land to construct a new plant. Construction work will begin this year and expected to be completed in June 2015. The company plans to commence new operations in June 2015, instead of October 2012, which was originally planned. (From an announcement by the company, March 28, 2013)

-The Company announced an additional investment plan for Wuxi Weifu Schmitter Power System Parts and Components Co., Ltd., a joint-venture company it had formed with Germany-based Schmitter and Shanghai Weishi Auto Science & Technology Development Co., Ltd. Of the total of 30 million yuan to be invested, 20.88 million yuan will be provided by Weifu High-Technology and the remaining 9.12 million yuan by Schmitter. Weifu High-Technology has already acquired the joint venture’s shares originally held by Shanghai Weishi Auto Science & Technology Development. When the capital infusion is completed, Weifu High-Technology will own 66 percent and Schmitter 34 percent. Wuxi Weifu Schmitter Power System Parts and Components, which produces common rail injection parts, has been suffering from shortages in production capacity and fund. The expansion is intended to raise five-year sales at the injection parts supplier to 430 million yuan. Net profit is expected to reach 55 million yuan. (From an announcement by the company, March 18, 2013)