Wafangdian Bearing Compnay Limited The Q1 Report for 2019 Stock code: 200706 stock short form: Wazhou B Report code: 2019-09 Wafangdian Bearing Company Limited The Q1 Report for 2019 §1 Important Notes The Board of Directors, Board of Supervisors, directors, supervisors, and top management of the Company hereby guaranteed that there are no false records, misleading statements, and major omits in this report, and assumed the individual and associated responsibilities for the truth, accuracy and completeness of the contents. Besides the following directors, all the other directors attended the Board meeting and discussed the report. Name Post Reasons Assignee name Liu Yuping Independent Diretor Busy work Wen Bo Liang Shuang Independent Diretor Busy work Sun Kun Chairman of the Board Mr. Meng Wei, Financial manager Ms.Sun Najuan, Accounting charger Ms.Sun Najuan hereby confirms that the Financial Report of the quarterly report is true and complete. §2 Major accounting data and shareholder change 1 .Major accounting data and financial indexes Whether the company needs to retroactively adjust or restate previous accounting data √Applicable Inapplicable Retroactively adjust or restate the reason Accounting policy change Unit: RMB Jan-Mar 2018 +/- to previous Jan-Mar 2019 Before the After the After the adjustment adjustment adjustment Operating income(Yuan) 475,596,504.32 486,916,871.06 486,916,871.06 -2.32% Net profits attributed Shareholders(Yuan) 3,072,545.00 1,020,973.46 1,020,973.46 200.94% Net profit (yuan) deducting non-recurring gains and losses attributable to shareholders 53,267.40 -1,874,291.16 -1,874,291.16 -102.84% of the listed company Net cash flows from operation activities -40,453,537.22 60,684,129.17 60,684,129.17 -166.66% Basic gains on per share 0.0080 0.003 0.0030 166.67% Diluted gains on per share 0.0080 0.003 0.0030 166.67% Weighted average return on equity(yuan) 0.22% 0.07% 0.07% 0.15% 2018.12.31 +/- to previous 2019.3.31 Before the After the After the adjustment adjustment adjustment Total assets(yuan) 3,249,655,930.90 3,219,926,745.82 3,219,926,745.82 0.92% Owners’ equity (shareholders’ equity)(yuan) 1,383,100,225.64 1,386,515,848.17 1,386,515,848.17 -0.25% 2017 promulgated by the Ministry of Finance to “the Accounting Standards for Enterprises No. 22 - Recognition and Measurement of Financial Instruments”(Finance and Accounting [2017]No. 7), “the Accounting Standards for Enterprises No. 23 - Transfer of Financial Assets (Finance and Accounting [2017]No. 8), “the Accounting Standards for Enterprises No. 24 - Hedging Accounting”( Finance and accounting [2017]No. 9), “the Accounting Standards for Enterprises No. 37 - Presentation of Financial Instruments” (Finance and Accounting [2017] No. 14), requirement of domestic listed companies shall enter into force as of January 1, 2019 new financial instruments accounting standards. 1 Wafangdian Bearing Compnay Limited The Q1 Report for 2019 On June 15, 2018 promulgated by the Ministry of Finance “on the Revised Printed and Distributed to 2018 annual General Corporate Financial Statements Format Notice”(Finance and Accounting [2018] no. 15 )(hereinafter referred to as the "Finance and Accounting [2018] 15"), calling for the accounting standards for enterprises to non-financial companies according to the revised general enterprise financial report format (applicable to not implement new financial rules and new income criterion of enterprises) to prepare its financial statements. In accordance with the above notice and the provisions and requirements of the above accounting standards for enterprises, the company shall make corresponding changes to the original accounting policies. Items of non-recurring gains and losses Applicable □ Inapplicable Unit: RMB Items of non-recurring gains and losses Amount Note(if applicable) Gain or loss form disposal of non-current assets -1,339.32 Gains and losses included in the current period of government subsidies, excluding those government grants which are closely related to normal business and in line with national 1,842,138.97 policy, or in accordance with fixed standards or quantities Profit of loss from debts restructuring 610,883.60 Other non-business income and expenditures other than the above 921,795.28 Influenced amount of income tax 354,200.93 Total 3,019,277.60 - For the company according to the "Company Information Disclosure of Securities for Public Issuance Explanatory Announcement No. 1 - Non-Recurring Profit and Loss "define non-recurring gains and losses as defined in the project, and put the "company information disclosure of securities for public issuance explanatory announcement No. 1 - non-recurring profit and loss of non-recurring profit and loss items "defined as listed in the current profits and losses of the project, should be explained the reasons. Applicable Inapplicable During the reporting period of the company, there is no circumstance that the non-recurring profit and loss items listed in the explanatory notice no. 1 -- non-recurring profit and loss of the company information disclosure of publicly issued securities are defined as recurring profit and loss items. 2 .Total number of shareholders at the end of the report period and shares held by the top ten shareholders Unit:: Share Total number of shareholder at the end of Total number of shareholder at the end of report period with 6,552 0 report period preferred stock Shareholders with 5% or above Shares Impawned or Frozen Shares Total shares Non-current Name Nature Ratio held shares held Status Amount Wafangdian Bearing State-owned shareholder 60.61% 244,000,000 244,000,000 Group Corporation AKTIEBOLAGET SKF Foreign shareholder 19.70% 79,300,000 China Merchants Securities Hong Kong State-owned shareholder 1.74% 7,020,138 Limitied Huang Junyue Domestic shareholder 1.59% 6,390,668 Hu Xiaofeng Domestic shareholder 0.47% 1,879,277 GUOTAI JUNAN SECURITIES(HONGKO Foreign shareholder 0.35% 1,412,406 NG) LIMITED Jin Yunhua Domestic shareholder 0.33% 1,311,256 Chen Haitao Domestic shareholder 0.19% 750,896 MAN,KWAI WING Foreign shareholder 0.18% 713,101 Meng Qingliang Domestic shareholder 0.17% 694,948 Top Ten Tradable Shareholders Category of Shares Name Current shares held at end of year Categories Amount 2 Wafangdian Bearing Compnay Limited The Q1 Report for 2019 AKTIEBOLAGET SKF 79,300,000 B 79,300,000 China Merchants Securities Hong Kong B 7,020,138 7,020,138 Limitied Huang Junyue 6,176,158 B 6,176,158 Hu Xiaofeng 1,879,277 B 1,879,277 GUOTAI JUNAN B 1,441,206 1,441,206 SECURITIES(HONGKONG) LIMITED Jin Yunhua 1,311,256 B 1,311,256 Chen Haitao 750,896 B 750,896 MAN,KWAI WING 713,101 B 713,101 Meng Qinglliang 587,584 B 587,584 Zhou Lin 575,100 B 575,100 Explanation for the Affiliated Relations or United Action of the Top Ten There was no relationship and consistent activities between the first big shareholder and other shareholders or the top ten common stock holders; The relationship among other shareholders, top ten circulation Shareholders and the Top Ten Tradable shareholders, top ten circulation shareholders and other shareholders was not clear. Shareholders §3 Significant items 1 Particulars dates changes over 30% in items of main accounting statement and financial index , and explanations of reasons √Applicable□Inapplicable Unite: 0000RMB Yuan Closing Opening (+/_) (+/_) No. Item Reasons for Change Amount Amoount Amoumount Ratio Liaoyang bearing received 59.63 million yuan from 1 Other Receivables 3,564 9,226 -5,661 -61.4% Liaoyang Land Acquisition and Storage Center It is the short-term loan interest that does not have Other payables-Interest 2 17 75 -58 -77.4% maturity to pay at the beginning of the plan basically is payable 750,000 yuan Research and This is mainly due to the increase in the cost of product 3 154 94 59 62.7% development expense research and development abroad During the same period, wuxi branches recovered 13,000 Loss of impairment of 4 - -1 1 -100.0% yuan of receivables of Wuxi Simles Petroleum Special assets Pipe Manufacturing Co., LTD In this period, 798 thousand yuan is allocated for the 5 Other Income 184 108 76 69.9% project of fully automatic testing line before the railway truck bearing ring is installed Proceeds from disposal of It is the same period last year to confirm the sale of real 6 - 24 -24 -100.0% assets estate prandang shop income of 240,000 yuan 7 Non-operating expense 7 2 5 267.6% Non-operating expenses of subsidiaries Mainly, Liaoyang bearing received 59.63 million yuan Other cash received from liaoyang land acquisition and storage center and 1.2 8 relating to operating 6,148 61 6,087 9950.4% million yuan from shenyang jinhongyun material recycling activities Co., LTD Cash paid for goods and 9 15,412 5,283 10,129 191.7% Increased payments to suppliers. services The main reason is that the VAT paid has decreased by 14.05 million yuan year-on-year,real estate tax and land 10 Tax payments 1,150 2,548 -1,398 -54.9% use tax will be paid quarterly instead of monthly from January 1, 2019, down by 860,000 yuan year-on-year. In this period, Liaoyang bearing paid 59.63 million yuan of Other cash paid relating to loan and interest compensation to baolin company, and 11 9,618 2,583 7,035 272.4% operating activities paid 9 million yuan of group lease fee and trademark use fee 3 Wafangdian Bearing Compnay Limited The Q1 Report for 2019 Net cash received from This period received 800,000 yuan of equipment from disposal of fixed assets, Haerbin Ruiying Metal Materials Recycling Co., LTD., and 12 80 125 -45 -36.1% intangible assets and other 1,251,000 yuan of property income from the sale of dalian long-term assets during the same period Cash paid to acquire fixed The main reason is that the payment to suppliers has 13 assets, intangible assets 108 68 40 58.5% increased in this period and other long-term assets Cash Repayments of Mainly affected by the inverted loan, so that the current 14 5,000 9,206 -4,206 -45.7% Amount Borrowed payment of debt to reduce cash on a year-on-year basis Cash paid for other Mainly is easy to reach financing and orders under the 15 4,200 12,472 -8,272 -66.3% financing activities currency financing repayment year-on-year decrease Effects of foreign Mainly is the US dollar against the RMB exchange rate 16 exchange rate changes on -97 -74 -23 31.4% continues to decline, exchange losses increased cash 2 Progress of significant events, their influence, and analysis and explanation of their solutions □Applicable √Inapplicable Implementation progress of share repurchase □Applicable √Inapplicable Implementation progress of share buyback reduction through centralized bidding □Applicable √Inapplicable 3 The company, shareholders, actual controller, the acquirer, directors, supervisors and senior management personnel or other related parties to fulfill commitments and the final report has not been fulfilled in the reporting period □Applicable √Inapplicable During the reporting period of the company, there are no commitments made by the actual controller, shareholders, related parties, acquirers and other relevant parties of the company that have not been fulfilled within the reporting period. 4 Estimation of accumulative net profit from Jan to June 2019 It is predicted that the accumulative net profit from the beginning of the year to the end of the next reporting period may be a loss or a warning and explanation of reasons for a substantial change compared with the same period of the previous year □Applicable √Inapplicable 5 Particular about security investment □Applicable √Inapplicable There is no security investment in the company during the reporting period. 6 Particular about derivatives □Applicable √Inapplicable There is no derivative investment during the reporting period. 7 Activities on receiving research, communication and interview in the report period Time Method Object Content and documents supplied 2019.02.25 Telephone communication Private investor The company's production and operation situation 2019.03.15 Telephone communication Private investor The company's production and operation situation 8 Illegal external guarantee □Applicable √Inapplicable 4 Wafangdian Bearing Compnay Limited The Q1 Report for 2019 There is no violation of external guarantee during the reporting period. 9 Controlling shareholder and its related parties to the listing Corporation's non operating funds □Applicable √Inapplicable During the reporting period of the company, there is no non-operating capital occupied by the controlling shareholder or its related parties to the listed company. §4 Appendix I、 Balance sheet Consolidated Balance Sheet. Preparation unit: Wafangdian Bearing Co., LTD March31, 2019 Unit: RMB Yuan Item March31, 2019 December31, 2018 Current assets : Monetary fund 234,840,446.02 247,229,860.99 Financial asset measured at FV and any 337,446.44 298,925.16 change recognized in income Notes receivable & Accounts receivable 1,282,270,075.91 1,235,257,555.58 Including: Notes receivable 83,637,332.35 93,624,563.82 Accounts receivable 1,198,632,743.56 1,141,632,991.76 Advances to suppliers 25,468,771.14 21,885,856.45 Other receivable 35,642,984.14 92,255,736.14 Including: Interest receivable Dividend reciivable 1,250,000.00 1,250,000.00 Inventory 739,994,060.25 747,511,054.75 Other current assets 12,172,853.51 14,184,383.36 Total current assets 2,330,726,637.41 2,358,623,372.43 Non- current assets: Financial assets available-for-sale 2,000,000.00 2,000,000.00 Other equity vehicle investments 2,503,766.95 Investment property 127,685,590.13 129,270,498.66 Fixed assets 639,314,408.36 661,598,663.85 Construction in progress 49,794,947.10 48,159,927.20 Intangible assets 84,869,964.88 85,667,085.86 Long-term prepaid expense 1,121,368.04 1,208,536.46 Deferred tax assets 11,639,248.03 11,639,248.03 Other non-current assets Total non-current assets 918,929,293.49 939,543,960.06 Total assets 3,249,655,930.90 3,298,167,332.49 Current liabilities Short-term loan 570,000,000.00 620,000,000.00 Note payable and Accounts payable 1,126,224,880.69 1,058,073,857.65 Accounts received in advance 15,767,196.95 21,286,971.52 Employee benefits 12,125,985.21 12,248,327.93 5 Wafangdian Bearing Compnay Limited The Q1 Report for 2019 Tax payable 7,879,039.11 7,242,006.46 Other payables 68,074,272.28 131,854,654.39 Including: Interest payable 168,910.71 748,135.28 Dividends payable 360,000.00 360,000.00 Other current liabilities 4,920,248.12 4,920,248.12 Total current liabilities 1,804,991,622.36 1,855,626,066.07 Non-current liabilities Long-term loan 396,698.98 396,698.98 Deferred income 60,330,511.77 61,284,650.74 Deferred tax liabilities 836,872.15 836,872.15 Other non-current liabilities Total non-current liabilities 61,564,082.90 62,518,221.87 Total liabilities 1,866,555,705.26 1,918,144,287.94 Owner’s equity (shareholders’ equity) Capital stock 402,600,000.00 402,600,000.00 Capital public reserves 485,691,050.47 485,691,050.47 Reasonable reserve 4,636.09 Surplus reserve 136,770,391.01 136,770,391.01 Undistributed profit 358,034,148.07 354,961,603.07 Equity attributable to parent company 1,383,100,225.64 1,380,023,044.55 Minority interest Total owner’s equity 1,383,100,225.64 1,380,023,044.55 Total owner’s equity and liabilities 3,249,655,930.90 3,298,167,332.49 Chairman: Meng Wei General Accountant : Sun Najuan Accounting charger: Sun Najuan 2.Balance Sheet Of Parent Company Unit: RMB Yuan Item March31, 2019 December31, 2018 Current assets : Monetary fund 229,850,181.56 146,186,890.65 Financial assets held-for-trading Financial asset measured at FV and any change 337,446.44 298,925.16 recognized in income Notes receivable & Accounts receivable 1,283,255,483.61 1,299,378,046.46 Including:Notes receivable 80,692,449.83 89,620,372.80 Accounts receivable 1,202,563,033.78 1,209,757,673.66 Advances to suppliers 22,552,458.71 19,008,909.78 Other receivable 18,255,586.75 14,963,827.46 Including: Interest receivable Dividend reciivable 1,250,000.00 1,250,000.00 Inventory 678,175,584.60 680,255,742.99 Other current assets 12,164,484.72 13,765,726.62 Total current assets 2,244,591,226.39 2,173,858,069.12 Non-current assets: Financial assets available-for-sale 2,000,000.00 2,000,000.00 long-term equity investment 211,583,897.67 211,583,897.67 Other equity vehicle investments 2,503,766.95 6 Wafangdian Bearing Compnay Limited The Q1 Report for 2019 Investment property 111,940,460.31 113,277,687.13 Fixed assets 442,868,798.60 460,415,212.74 Construction in progress 49,177,198.00 47,699,459.65 Intangible assets 67,063,680.90 67,683,392.22 Long-term prepaid expense 944,491.06 1,017,695.53 Deferred tax assets 10,350,000.00 10,350,000.00 Other non-current assets Total non-current assets 898,432,293.49 914,027,344.94 Total assets 3,143,023,519.88 3,087,885,414.06 Current liabilities Short-term loan 570,000,000.00 620,000,000.00 Note payable and Accounts payable 1,036,730,809.87 929,608,079.68 Accounts received in advance 16,136,920.63 21,976,484.62 Employee benefits 5,481,785.76 5,520,469.68 Tax payable 4,481,301.17 4,783,202.06 Other payables 45,893,747.71 50,471,992.39 Including: Interest payable 168,910.71 748,135.28 Dividends payable 360,000.00 360,000.00 Other current liabilities 3,869,474.53 3,869,474.53 Total current liabilities 1,682,594,039.67 1,636,229,702.96 Non-current liabilities long-term account payable 296,698.98 296,698.98 prospective liabilities 28,717,818.80 29,671,957.77 Deferred income Deferred tax liabilities Other non-current liabilities Total non-current liabilities 29,014,517.78 29,968,656.75 Total liabilities 1,711,608,557.45 1,666,198,359.71 Owner’s equity (shareholders’ equity) Capital stock 402,600,000.00 402,600,000.00 Capital public reserves 485,678,443.26 485,678,443.26 Surplus reserve 136,770,391.01 136,770,391.01 Undistributed profit 406,366,128.16 396,638,220.08 Total owner’s equity 1,431,414,962.43 1,421,687,054.35 Total owner’s equity and liabilities 3,143,023,519.88 3,087,885,414.06 3. Consolidated Income Sheet. Unit: RMB Yuan Item Account for the current period Account for the prior period 1.Total operating income 475,596,504.32 486,916,871.06 Including: Operating revenue 475,596,504.32 486,916,871.06 2.Total operating cost 475,935,959.13 489,118,101.07 Including: Operating cost 412,133,312.96 427,512,808.83 Interest expenses Tax & surcharges for main operations 4,382,352.34 4,462,341.83 Selling expenses 35,862,031.41 30,728,507.29 Administrative expense 13,963,367.61 15,486,196.42 7 Wafangdian Bearing Compnay Limited The Q1 Report for 2019 Research and development expense 1,536,579.45 944,391.60 Financial expense 8,058,315.36 9,996,641.95 Including: interest expenses 6,536,531.45 7,099,339.02 interest revenue 269,689.67 123,089.85 Loss of impairment of assets -12,786.85 Credit impairment losses Add:Other income 1,842,138.97 1,083,952.09 Investment income(loss with "-") Gains of change of fair value of assets(loss with"-") 38,521.28 3.Operating profit (loss with"-") 1,541,205.44 -873,782.10 Add: Non-operating revenue 1,599,173.75 1,913,208.28 Less: Non-operating cost 67,834.19 18,452.72 4.Total profit(loss with"-") 3,072,545.00 1,020,973.46 Less: Income tax expenses 5. Net profit(Loss with"-") 3,072,545.00 1,020,973.46 (I) classification by business continuity 1.Net income from continuing operations (net loss 3,072,545.00 1,020,973.46 marked with "-") 2.Termination of net operating profit (net loss marked with "-") (II) classification by ownership 1.Net profit attributable to shareholders of parent 3,072,545.00 1,020,973.46 company 2.Minority interests 6. Total comprehensive returns Total comprehensive returns available for parent company 7.Total comprehensive income 3,072,545.00 1,020,973.46 The aggregate amount of earnings attributable to a 3,072,545.00 1,020,973.46 minority shareholder 8.Earnings per share (1) Basic earnings per share 0.0080 0.0030 (2) Diluted earnings per share 0.0080 0.0030 If the enterprise is merged under the same control in the current period, the net profit realized by the merged party before the merger shall be: yuan, and the net profit realized by the merged party in the previous period shall be: yuan. Chairman: Meng Wei General Accountant : Sun Najuan Accounting charger: Sun Najuan 4.Income Sheet of Parent Company. Unit: RMB Yuan Item Account for the current period Account for the prior period 1.Total operating income 493,298,802.90 477,530,087.59 less: Operating cost 429,012,779.16 422,790,747.17 Tax & surcharges for main operations 3,703,799.12 3,751,536.66 Selling expenses 35,452,990.08 30,087,325.87 Administrative expense 8,848,725.26 9,655,185.72 Research and development expense 1,383,611.53 790,541.60 Financial expense 8,064,278.48 9,995,972.04 Including: interest expenses 6,536,531.45 7,099,339.02 8 Wafangdian Bearing Compnay Limited The Q1 Report for 2019 interest revenue 258,298.35 119,642.32 Investment income(loss with "-") -12,786.85 Credit impairment losses Add:Other income 1,842,138.97 972,738.97 Investment income(loss with "-") Gains of change of fair value of 38,521.28 assets(loss with"-") Proceeds from disposal of assets (loss 243,495.82 marked with "-") 2.Operating profit (loss with"-") 8,713,279.52 1,687,800.17 Add: Non-operating revenue 1,019,173.75 1,603,392.64 Less: Non-operating cost 4,545.19 7,042.25 3.Total profit(loss with"-") 9,727,908.08 3,284,150.56 Less: Income tax expenses 4 Net profit(Loss with"-") 9,727,908.08 3,284,150.56 (I) net profit from continuing operations 9,727,908.08 3,284,150.56 (marked with "-" for net loss) (II) termination of net profit (net loss is marked with "-") 5.The net after-tax amount of other comprehensive income 6. Total comprehensive returns 9,727,908.08 3,284,150.56 7.Earnings per share (1) Basic earnings per share 0.020 0.070 (2) Diluted earnings per share 0.020 0.070 5.Consolidated Cash Flow Statement. Unit: RMB yuan Item Account for the current period Account for the prior period 1.Cash from operating activities Cash received from sale of goods or 225,033,197.82 226,336,733.99 rendering of services Other cash received relating to operating 61,483,446.38 611,751.60 activities Sub-total of cash inflows 286,516,644.20 226,948,485.59 Cash paid for goods and services 154,120,728.93 52,828,756.15 Cash paid to or on behalf of the 65,170,626.74 62,128,678.39 employees Tax payments 11,499,830.03 25,479,762.27 Other cash paid relating to operating 96,178,995.72 25,827,159.61 activities Sub-total of cash outflows from 326,970,181.42 166,264,356.42 operating activities Net cash flows from operating -40,453,537.22 60,684,129.17 activities 2.Cash flows from investing activities Cash received from return of investment 9 Wafangdian Bearing Compnay Limited The Q1 Report for 2019 Net cash received from disposal of fixed assets, intangible assets and other 800,000.00 1,251,120.00 long-term assets Sub-total of cash inflows to investing 800,000.00 1,251,120.00 activities Cash paid to acquire fixed assets, intangible assets and other long-term 1,083,584.14 683,673.19 assets Cash paid to acquire investment Sub-total of cash outflows to 1,083,584.14 683,673.19 investing activities Net cash flows from investment -283,584.14 567,446.81 activities 3.Cash flows from financing activities: Cash received from absorbing investment Repayment of borrowings 90,000,000.00 Receiving other cash in connection with 92,190,000.00 89,906,186.11 financing activities Sub-total of cash inflows from 92,190,000.00 179,906,186.11 financing activities Cash Repayments of Amount Borrowed 50,000,000.00 92,064,872.18 Distribution of dividends or profits & 6,527,633.56 7,501,070.67 interest expenses Including: dividends or profit paid to minority interest Cash paid for other financing activities 42,000,000.00 124,724,590.83 Sub-total of cash outflows from 98,527,633.56 224,290,533.68 financing activities Net cash flows from financing -6,337,633.56 -44,384,347.57 activities 4. Effects of foreign exchange rate -966,541.68 -735,429.55 changes on cash 5.Net increases in cash and cash -48,041,296.60 16,131,798.86 equivalents Add: cash and cash equivalent, at the 188,431,805.23 58,043,497.54 beginning of year 6.Cash and cash equivalent at the end 140,390,508.63 74,175,296.40 of the year 6.Cash Flow Statement Of Parent Company. Unit: RMB yuan Item Account for the current period Account for the prior period 1.Cash from operating activities Cash received from sale of goods or 223,596,147.47 222,170,455.44 rendering of services Refund of taxes and fares Other cash received relating to operating 1,836,506.49 601,928.03 activities Sub-total of cash inflows from 225,432,653.96 222,772,383.47 operating activities Cash paid for goods and services 108,334,301.75 66,352,243.97 Cash paid to or on behalf of the 54,378,350.55 49,375,461.40 10 Wafangdian Bearing Compnay Limited The Q1 Report for 2019 employees Tax payments 9,413,771.31 22,630,109.61 Other cash paid relating to operating 34,693,242.89 23,702,418.65 activities Sub-total of cash outflows 206,819,666.50 162,060,233.63 Net cash flows from operating activities 18,612,987.46 60,712,149.84 2.Cash flows from investing activities Net cash received from disposal of fixed assets, intangible assets and other 800,000.00 1,251,120.00 long-term assets Sub-total of cash inflows 800,000.00 1,251,120.00 Cash paid to acquire fixed assets, intangible assets and other long-term 1,079,094.14 670,583.19 assets Sub-total of cash outflows 1,079,094.14 670,583.19 Net cash flows from investment -279,094.14 580,536.81 activities 3.Cash flows from financing activities: Proceeds from borrowings 90,000,000.00 Other proceeds relating to financing 92,190,000.00 89,906,186.11 activities Sub-total of cash inflows 92,190,000.00 179,906,186.11 Repayment of borrowings 50,000,000.00 92,064,872.18 Distribution of dividends or profits & 6,525,942.36 7,500,683.26 interest expenses Cash paid for other financing activities 42,000,000.00 124,724,590.83 Sub-total of cash outflows 98,525,942.36 224,290,146.27 Net cash flows from financing activities -6,335,942.36 -44,383,960.16 4. Effects of foreign exchange rate -966,541.68 -735,429.55 changes on cash 5.Net increases in cash and cash 11,031,409.28 16,173,296.94 equivalents Add: cash and cash equivalent, at the 87,388,834.89 54,083,755.28 beginning of year 6.Cash and cash equivalent at the end 98,420,244.17 70,257,052.22 of the year II. Adjustment statement of financial statements 1.First implementation of new financial instrument standards, new income standards, new lease standards adjustment first implementation of financial statements at the beginning of the year. Applicable Inapplicable 1.Consolidated Balance Sheet Unit: RMB Yuan Item December31, 2018 January1, 2019 Adjusted Amount Current assets : Monetary fund 247,229,860.99 247,229,860.99 Trading financial assets Inapplicable Financial asset measured at FV and any change 298,925.16 Inapplicable recognized in income 11 Wafangdian Bearing Compnay Limited The Q1 Report for 2019 Notes receivable & Accounts receivable 1,235,257,555.58 1,235,257,555.58 Including: Notes receivable 93,624,563.82 93,624,563.82 Accounts receivable 1,141,632,991.76 1,141,632,991.76 Advances to suppliers 21,885,856.45 21,885,856.45 Other receivable 92,255,736.14 92,255,736.14 Including: Interest receivable Dividend reciivable 1,250,000.00 1,250,000.00 Inventory 747,511,054.75 747,511,054.75 Contract assets Inapplicable Other current assets 14,184,383.36 14,184,383.36 Total current assets 2,358,623,372.43 2,358,623,372.43 Non- current assets: Creditors' investment Inapplicable Financial assets available-for-sale 2,000,000.00 Inapplicable Other creditors' investment Inapplicable Held-to-maturity investment Inapplicable Other equity vehicle investments Inapplicable Other non-current financial assets Inapplicable Investment property 129,270,498.66 129,270,498.66 Fixed assets 661,598,663.85 661,598,663.85 Construction in progress 48,159,927.20 48,159,927.20 Right-of-use asset Inapplicable Intangible assets 85,667,085.86 85,667,085.86 Long-term prepaid expense 1,208,536.46 1,208,536.46 Deferred tax assets 11,639,248.03 11,639,248.03 Other non-current assets Total non-current assets 939,543,960.06 939,543,960.06 Total assets 3,298,167,332.49 3,298,167,332.49 Current liabilities Short-term loan 620,000,000.00 620,000,000.00 Trading financial liabilities Inapplicable Financial liabilities measured at fair value and Inapplicable recorded in current profits and losses Note payable and Accounts payable 1,058,073,857.65 1,058,073,857.65 Accounts received in advance 21,286,971.52 21,286,971.52 Employee benefits 12,248,327.93 12,248,327.93 Tax payable 7,242,006.46 7,242,006.46 Other payables 131,854,654.39 131,854,654.39 Including: Interest payable 748,135.28 748,135.28 Dividends payable 360,000.00 360,000.00 Contract liability Inapplicable Other current liabilities 4,920,248.12 4,920,248.12 Total current liabilities 1,855,626,066.07 1,855,626,066.07 Non-current liabilities Long-term loan 396,698.98 396,698.98 Lease liability Inapplicable Deferred income 61,284,650.74 61,284,650.74 12 Wafangdian Bearing Compnay Limited The Q1 Report for 2019 Deferred tax liabilities 836,872.15 836,872.15 Other non-current liabilities Total non-current liabilities 62,518,221.87 62,518,221.87 Total liabilities 1,918,144,287.94 1,918,144,287.94 Owner’s equity (shareholders’ equity) Capital stock 402,600,000.00 402,600,000.00 Capital public reserves 485,691,050.47 485,691,050.47 Surplus reserve 136,770,391.01 136,770,391.01 Undistributed profit 354,961,603.07 354,961,603.07 Equity attributable to parent company 1,380,023,044.55 1,380,023,044.55 Minority interest Total owner’s equity 1,380,023,044.55 1,380,023,044.55 Total owner’s equity and liabilities 3,298,167,332.49 3,298,167,332.49 Adjustment statement Inapplicable 2.Parent balance sheet Unit: RMB Yuan Item December31, 2018 January1, 2019 Adjusted Amount Current assets : Monetary fund 146,186,890.65 146,186,890.65 Trading financial assets Inapplicable Financial asset measured at FV and any change recognized in 298,925.16 Inapplicable income Notes receivable & Accounts receivable 1,299,378,046.46 1,299,378,046.46 Including: Notes receivable 89,620,372.80 89,620,372.80 Accounts receivable 1,209,757,673.66 1,209,757,673.66 Advances to suppliers 19,008,909.78 19,008,909.78 Other receivable 14,963,827.46 14,963,827.46 Including: Interest receivable Dividend reciivable 1,250,000.00 1,250,000.00 Inventory 680,255,742.99 680,255,742.99 Contract assets Inapplicable Other current assets 13,765,726.62 13,765,726.62 Total current assets 2,173,858,069.12 2,173,858,069.12 Non- current assets: Creditors' investment Inapplicable Financial assets available-for-sale 2,000,000.00 Inapplicable Other creditors' investment Inapplicable Held-to-maturity investment Inapplicable long-term equity investment 211,583,897.67 211,583,897.67 Other equity vehicle investments Inapplicable Other non-current financial assets Inapplicable Investment property 113,277,687.13 113,277,687.13 Fixed assets 460,415,212.74 460,415,212.74 Construction in progress 47,699,459.65 47,699,459.65 Right-of-use asset Inapplicable 13 Wafangdian Bearing Compnay Limited The Q1 Report for 2019 Intangible assets 67,683,392.22 67,683,392.22 Long-term prepaid expense 1,017,695.53 1,017,695.53 Deferred tax assets 10,350,000.00 10,350,000.00 Other non-current assets Total non-current assets 914,027,344.94 914,027,344.94 Total assets 3,087,885,414.06 3,087,885,414.06 Current liabilities Short-term loan 620,000,000.00 620,000,000.00 Trading financial liabilities Inapplicable Financial liabilities measured at fair value and recorded Inapplicable in current profits and losses Note payable and Accounts payable 929,608,079.68 929,608,079.68 Accounts received in advance 21,976,484.62 21,976,484.62 Contract liability Inapplicable Employee benefits 5,520,469.68 5,520,469.68 Tax payable 4,783,202.06 4,783,202.06 Other payables 50,471,992.39 50,471,992.39 Including: Interest payable 748,135.28 748,135.28 Dividends payable 360,000.00 360,000.00 Other current liabilities 3,869,474.53 3,869,474.53 Total current liabilities 1,636,229,702.96 1,636,229,702.96 Non-current liabilities Lease liability Inapplicable Long-term loan 296,698.98 296,698.98 Anticipation liabilities 29,671,957.77 29,671,957.77 Deferred income Deferred tax liabilities Other non-current liabilities Total non-current liabilities 29,968,656.75 29,968,656.75 Total liabilities 1,666,198,359.71 1,666,198,359.71 Owner’s equity (shareholders’ equity) Capital stock 402,600,000.00 402,600,000.00 Capital public reserves 485,678,443.26 485,678,443.26 Surplus reserve 136,770,391.01 136,770,391.01 Undistributed profit 396,638,220.08 396,638,220.08 Total owner’s equity 1,421,687,054.35 1,421,687,054.35 Total owner’s equity and liabilities 3,087,885,414.06 3,087,885,414.06 Adjustment statement Inapplicable 2.The first implementation of the new financial instruments standards, the new lease standards retroactively adjust the previous comparative data Applicable Inapplicable III.Audited Report The Q1 Report is not audited. 14