Wafangdian Bearing Company Limited 2021 Annual Report
Wafangdian Bearing Company Limited
2021 Annual Report
2022-07
April 22, 2022
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Wafangdian Bearing Company Limited 2021 Annual Report
Chapter I. Important Prompts, Table of Contents, and Definitions
The board of directors, board of supervisors, directors, supervisors and senior managers of the
company shall guarantee that the contents of the annual report are true, accurate and complete
without false records, misleading statements or major omissions, and shall bear individual and joint
legal liabilities.
Statement: Guarantee the truth, accuracy and completeness of the financial report in this
annual report.
All directors have attended the board meeting at which this report was considered.
The company describes in detail the possible risks and countermeasures in the operation of the
company in section III "Management Discussion and Analysis" and "Xi, The Company's Future
Development Outlook". Please pay attention to the relevant contents.
The company plans not to distribute cash dividend, not to send bonus shares, not to increase
capital by provident fund
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Wafangdian Bearing Company Limited 2021 Annual Report
Table of contents
I.Important notes, table of contents and definitions ..................................4
II.company profiles and key financial indicators ....................... 错误！未定义书签。
III.management discon and Analysis.............................................. 错误！未定义书签。
IV. corporate governance ..................................................................................... 21
V.environmental and Social Responsibility..................................................... 37
VI.important issue................................................................................................... 42
VII.changes in shares and shareholders.......................................................... 46
VIII.preferred stock-related information............................................................50
VIX. bonds-related information........................................................................... 51
X. financial reporting.............................................................................................. 51
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Wafangdian Bearing Company Limited 2021 Annual Report
File directory for reference
1. Financial statements (with the seals of the person in charge of the company, the person in charge of
accounting and the person in charge of accounting institutions)
2. Original audit report (with seal of accounting firm and signature of certified public accountant)
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Wafangdian Bearing Company Limited 2021 Annual Report
Glossary
Terms Defined as Description
Company,the Company Defined as Wafangdian Bearing Company Limited
Wazhou Group Defined as Wafangdian Bearing Group Company
the report period, the current period, the
Defined as January 1,2021–December 31,2021
current year
Liaozhou Co.,Ltd Defined as Wazhou Liaoyang Bearing Manufacture Co.,Ltd
Dalian motor Defined as Dalian motor Bearing Co.,Ltd
The Board of Directors Defined as Wafangdian Bearing Company Limited The Board of Directors
Wafangdian Bearing Company Limited The Supervisory
The Supervisory Committee Defined as
Committee
Wafangdian Bearing Company Limited The Shareholders’
Wafangdian Bearing Company Limited Defined as
Meeting
Shen Jiao Suo Defined as Shen Zhen Stock Exchange
SRC Defined as China Securities Regulatory Commission
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Wafangdian Bearing Company Limited 2021 Annual Report
Chapter II. Company Profile and Financial Highlights
I. Company Information
Abbreviated name ofthe stock Wazhou B Stockcode: 200706
Listing locationofthe Company”s
Shenzhen StockExchange
stock:
Chinese name of the Company 瓦房店轴承股份有限公司
Abbreviation of Chinese name 瓦轴股份公司
English name of the Company Wafangdian Bearing Company Limited
Abbreviation of English name WBC
Legal representative of the
Liu Jun
Company
Registered address No. 1 Beigongji Street, Wafangdian City, Liaoning Province, China.
P.C 116300
Historical change of registered
Did not change
address of the company
office address No. 1 Beigongji Street, Wafangdian City, Liaoning Province, China.
office P.C 116300
Website http//www.zwz-200706.com
E-mail zwz2308@126.com
II.Contacts
Secretary of the Board Representative of Stock Affairs
Name Sun Najuan Ke Xin
No. 1 Beigongji Street, Wafangdian City, No. 1 Beigongji Street, Wafangdian City,
Correspondence address
Liaoning Province, China. Liaoning Province, China.
Consulting telephone 0411-62198008 0411-62198236
Fax 0411-62198333 0411-62198333
E-mail zwz2308＠126.com zwz2308＠126.com
III.Place for information disclosure
Information disclosure newspapers Securities Times and Hong Kong Commercial Newspaper
Web address for the annual report as assigned by
http://www.cninfo.com.cn
CSRC.
Place for inquiry of the annual report Investmentand Securities Department oftheCompany
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Wafangdian Bearing Company Limited 2021 Annual Report
IV.Change of Business Registration
No. of Taxation Registration 912102002423997128
Change of main business since listed None
Change of controlling shareholder all
None
previous(if any)
V. Other relevant information
The accounting firm employed by the company
Name of accounting firm Shine wing Certified Public Accountants
Floor 9 of A section of Fu Hua mantion, No. 8, North Street of ChaoYang door, Dong Cheng
Address of the CPA
area, Bei Jing.
The name of accountants Lin Li, Zhang Shizhuo
Sponsoring institution hired by the Company, which is responsible to overseeing the Company’s operation on a continuous basis:
□ Applicable Inapplicable
Financial consultancy institution hired by the Company, which is responsible to overseeing the Company’ operation on a continuous
basis:
□ Applicable Inapplicable
VI.Main accounting data and financial indicators
Whether the company needs to retroactively adjust or restate the accounting data of previous years
□ Yes No
Compare with last
2021 2020 2019
year(+/-)
Operating income (yuan) 2,318,704,350.35 1,859,176,415.58 24.72% 1,855,489,141.65
Net profit attributable to shareholders of
-205,737,685.42 -380,228,430.56 45.89% -123,201,977.73
the listed company (yuan)
Net profit attributable to shareholders of
the listed company after deducting -218,739,881.32 -390,440,462.25 43.98% -135,336,054.17
non-recurring profit and loss (yuan)
Net cash flow from operating activities
77,678,162.48 61,224,927.73 26.87% 157,914,340.86
(yuan)
Basic earnings per share (yuan/share) -0.511 -0.94 45.64% -0.31
Diluted earnings per share (yuan/share) -0.511 -0.94 45.64% -0.31
Weighted average return on equity -28.93% -36.69% 7.76% -9.34%
More or less at the
end of this year At the end
At the end of 2021 At the end of 2020
than at the end of of2019
the previous year
Total assets (yuan) 3,220,126,105.01 3,133,942,842.94 2.75% 2,961,477,469.55
Net assets attributable to shareholders of
608,267,282.47 814,004,967.89 -25.27% 1,226,441,398.45
the listed company (yuan)
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Wafangdian Bearing Company Limited 2021 Annual Report
The company's net profit before and after deducting non-recurring gains and losses in the last three fiscal years is negative, and the
audit report of the last year shows that the company's ability to continue operating is uncertain
□ Yes No
After the net profit before deducting the non-recurrent gains and losses and the net profit after deducting the non-recurrent gains and
losses are compared, who is low who is negative
Yes No
item 2021 2020 note
Operating Income (Yuan) 2,318,704,350.35 1,859,176,415.58 252,619,851.66
Amount of Deduction from
252,619,851.66 265,479,347.01 0
Operating Income (Yuan)
Amount of Business Income
2,066,084,498.69 1,593,697,068.57 0
after Deduction (Yuan)
VII. Differences in accounting information under IAS and domestic accounting standard
1. Differences in net profit and net asset under domestic and international accounting standards
□ Applicable Inapplicable
2. Differences in net profit and net asset under domestic and overseas accounting standards
□ Applicable Inapplicable
VIII. Financial Data Summary based on Quarters
In RMB Yuan
In the first quarter In the second quarter In the third quarter In the forth quarter
Operating revenue 413,507,921.87 667,556,931.79 641,570,596.17 596,068,900.52
Net profit attributable to the
2,486,349.89 1,705,793.35 -8,428,274.25 -201,501,554.41
Company’s shareholders
Net profit attributable to the
Company’s shareholders less 1,463,602.32 -215,132.65 -12,361,343.82 -207,627,007.17
the non-recurring profit and loss
Net cash flows arising from
-27,699,435.57 59,101,779.06 -36,921,948.24 83,197,767.23
operating activities
Does there exist significant difference in the foregoing financial data or their total sum from the relevant financial data as disclosed in
the quarterly reports and/or semi-annual report.
□ Yes No
IX. Non-recurring gain/loss items and amounts
Applicable Inapplicable
In RMB Yuan
item Amount of 2021 Amount of 2020 Amount of 2019 instructions
Gains and losses on disposal of
non-current assets (including charge-off
2,349,507.64 -1,221,382.96 1,662,685.28
portion of impairment provisions for
assets already provided)
Government subsidies included in current
profits and losses (except government 8,117,365.44 9,520,190.48 9,474,928.76
subsidies that are closely related to the
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Wafangdian Bearing Company Limited 2021 Annual Report
business of the enterprise and enjoy in
accordance with the unified national
standard quota or quantitative amount)
Debt restructuring gains and losses 1,808,922.83 1,226,811.33 -2,753,960.82
In addition to the normal business of the
company effective hedging related
business, tradable financial assets,
derivative financial assets, tradable
financial liabilities, changes in the fair
value of the derivative financial liabilities
612,813.05 -57,011.50 -13,867.66
to generate profits and losses, as well as
the disposal of tradable financial assets,
derivative financial assets, tradable
financial liabilities, derivative financial
liabilities and other creditor's rights
investment returns
The receivables and contract assets for
which the impairment test is conducted 2,341,773.02
separately will be turned back
Other non-operating income and expenses
2,694,297.36 3,056,476.10 3,733,384.42
other than those mentioned above
Minus: income tax impact 2,580,710.42 2,313,051.76 2,310,866.56
A combined 13,002,195.90 10,212,031.69 12,134,076.44 --
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
□ Applicable Inapplicable
The Company does not have any other profit and loss items that meet the definition of non-recurring profit and loss.
Define the non-recurring profit and loss items listed in the Explanatory Notice of Information Disclosure of Companies publicly
issuing Securities No. 1 -- Non-recurring Profit and loss items as the statement of the current profit and loss items
□ Applicable Inapplicable
The Company does not define the non-recurring profit and loss items listed in the Explanatory Notice of Information Disclosure for
Publicly Issued Securities No. 1 -- Non-recurring Profit and loss items as recurring profit and loss items.
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Wafangdian Bearing Company Limited 2021 Annual Report
Chapter III. Management discussion and analysis
I. The industry situation of the company during the reporting period
As a leading bearing manufacturer in China, the company has participated in the formulation of a number of industry standards. The
company faces multiple challenges and new development opportunities in 2021. Under the impact of the epidemic in the 21st century,
the century-old changes are accelerating, and the external environment is becoming more complex, severe and uncertain. From the
industry level, the high-end bearing market is still occupied by foreign enterprises, and the domestic investment of multinational
companies is further grabbing the domestic market share. Structural adjustment and industry reshuffle are opportunities for the
industry. Under the epidemic situation, the extension of the import cycle of foreign bearings for China's bearing industry? } has come
a rare domestic alternative market. Uncertainties brought by various non-economic laws are increasing at the same time. Bearing
products focus on "high-end" and "professional", which also brings great development space to the company.
II. Main business of the Company during the reporting period
The business scope of the company is licensed items: inspection and testing services, import and export of goods, import and export
of technology (items subject to approval according to law, business activities can be carried out only after approval by relevant
departments, specific business items subject to approval results) general items: Bearing manufacturing, bearings, gears and
transmission components manufacturing, high speed precision heavy-duty bearing sales, sales bearings, gears and transmission parts,
bearing sales, general equipment manufacturing (excluding special equipment manufacturing), high-speed rail equipment, parts
manufacturing, machinery and equipment sales, rail transportation equipment, key system and parts sales, sales of lubricating oil,
high-speed rail equipment and accessories sales, Wind generators and spare parts sales, machinery parts, spare parts sales, railway
locomotive vehicle accessories manufacturing, railway locomotive vehicle accessories sales, auto parts and accessories
manufacturing, auto parts wholesale and retail auto parts, metal products repair, sales metal materials, metal products sales, metal
surface treatment and heat treatment processing, quenching process, Mechanical parts and spare parts processing, land use right
leasing, housing leasing, non-residential real estate leasing, mechanical equipment leasing, computer and communication equipment
leasing, transportation equipment leasing service, office equipment leasing service, storage equipment leasing service, special
equipment leasing, labor service (excluding labor dispatch), Technical services, technology development, technology consultation,
technology exchange, technology transfer and technology popularization (except for projects subject to approval according to law,
independently carry out business activities according to law with business license)
The company has strong manufacturing capacity and quality assurance ability, widely serve railway, metallurgy, mining and other
industries and fields.
III.Analysis of core competitiveness
As the largest bearing technology and product r&d and manufacturing base in China, the company has accumulated years of practical
experience in bearing and related fields, established a perfect bearing technology innovation system, and maintained close
cooperation with domestic scientific research institutes and universities. As the main drafter of several standards in the bearing
industry, it grasps the latest technical trend of the development of the industry. In technology research and development, product
manufacturing, marketing and user services have established a significant advantage.
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Wafangdian Bearing Company Limited 2021 Annual Report
The company's personalized design and manufacturing process for customers can take into account cost, delivery time and customer
demand, improve the response ability to market and customer personalized demand.
The company has a complete product service system, with all-weather dynamic service ability for product operation site. And "ten
value-added services" by the good image of the majority of customers praise. The company has a strong manufacturing capacity and
quality assurance ability, widely serve railway, metallurgy, mining and other industries and fields.
At present, the company has established strategic cooperative relations with key customers in the field of domestic equipment
application. By engaging in customer value engineering to carry out in-depth marketing, the company has firmly established its brand
and influence in the domestic bearing market. In the international market, the company has obtained the certification qualification of
important target markets, and the international popularity has been preliminarily established.
IV. Analysis of main business
1.overview
See "Overview" in "Management Discussion and Analysis".
2. Revenue and cost
(1) Composition of operating revenue
Unit：yuan
2021 2020
Total operating Year-on-year
Proportion in the Proportion in the
revenue Amount Amount increase/decrease
operating revenue operating revenue
Classified based
2,318,704,350.35 100% 1,859,176,415.58 100% 24.72%
on sectors
exit
Traffic bearing 93,491,561.62 4.03% 149,255,608.09 8.03% -37.36%
Special bearings 170,285,070.15 7.34% 226,218,965.88 12.17% -24.73%
General bearing 998,964,768.13 43.08% 543,592,815.95 29.24% 83.77%
Industrial work 751,560,167.01 32.41% 608,812,963.18 32.75% 23.45%
Other business
51,782,931.78 2.23% 65,816,715.47 3.54% -21.32%
income
Classified based
252,619,851.66 10.89% 265,479,347.01 14.28% -4.84%
on product
bearing
Industrial work 2,014,301,566.91 86.87% 1,527,880,353.10 82.18% 31.84%
Other business
51,782,931.78 2.23% 65,816,715.47 3.54% -21.32%
income
Classified based
252,619,851.66 10.89% 265,479,347.01 14.28% -4.84%
on regions
exit
domestic 2,225,212,788.73 95.97% 1,709,920,807.49 91.97% 30.14%
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Wafangdian Bearing Company Limited 2021 Annual Report
Total operating
93,491,561.62 4.03% 149,255,608.09 8.03% -37.36%
revenue
Classified based on sectors
exit 2,318,704,350.35 100.00% 1,859,176,415.58 100.00% 24.72%
(2) The industry, product, region and sales mode accounting for more than 10% of the company's operating revenue or
operating profit
Applicable Inapplicable
Unit:yuan
Operating Operating costs
Gross Gross margin
Operating income was up increased or
Operating cost profit was up or down
income or down from a decreased from
margin from a year ago
year earlier a year earlier
divisions
Traffic bearing 170,285,070.15 124,973,171.93 26.61% -24.73% -30.58% 6.19%
Special
998,964,768.13 821,633,854.27 17.75% 83.77% 128.15% -16.00%
bearings
General
751,560,167.01 567,195,432.48 24.53% 23.45% 53.80% -14.89%
bearing
Other Business
252,619,851.66 205,983,916.30 18.46% -4.84% -11.22% 5.85%
income
Points products
bearing 2,014,301,566.91 1,595,963,175.85 20.77% 31.84% 51.78% -10.41%
Other Business
252,619,851.66 205,983,916.30 18.46% -4.84% -11.22% 5.85%
income
Divided by region
Domestic 1,972,592,937.07 1,566,369,733.65 20.59% 36.56% 57.72% -10.65%
Distribution model
If the statistical caliber of the company's main business data is adjusted during the reporting period, the company's main business data
in the recent year shall be adjusted according to the caliber at the end of the report
Applicable Inapplicable
(3) Whether the company's income from physical sales is greater than the income from labor service
yes no
Industry Compared with
item unit 2021 2020
classification last year(+/-)
sales Set of 37,926,445 14,160,710 167.83%
bearing production Set of 28,150,179 14,856,446 89.48%
inventory Set of 19,208,935 9,432,669 103.64%
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Wafangdian Bearing Company Limited 2021 Annual Report
Causes of the change in the year-on-year data by over 30%
Applicable Inapplicable
The scale of production has expanded.
(4) Implementation of Important Sale Contracts Concluded at the End of the Reporting Period
□ Applicable Inapplicable
(5) Composition of Operating Costs
Classified based on sectors and products
Unit :yuan
2021 2020
Classified Proportion
Proportion in Year-on-year
based on item in
Amount operating Amount (+/-)
sectors operating
costs
costs
Bearing 1,595,963,175.85 86.06% 1,051,507,223.37 76.88% 50.52%
Include:raw
1,137,994,367.05 61.36% 692,709,763.72 50.65% 64.28%
material
Artificial cost 169,264,570.92 9.13% 158,066,596.06 11.56% 7.08%
depreciation 53,741,418.23 2.90% 57,415,894.73 4.20% -6.40%
Energy and
52,798,181.32 2.85% 45,162,110.81 3.30% 16.91%
power
other 182,164,638.33 9.82% 98,152,858.05 7.18% 72.09%
Industrial
52,567,274.97 2.83% 84,165,434.46 6.15% -21.80%
income
Other business 205,983,916.30 11.11% 232,010,647.05 16.96% -11.22%
total 1,854,514,367.12 100.00% 1,367,683,304.88 100.00% 35.60%
Instructions
none
(6) Is there any change in the consolidation scope in the reporting period
□ Yes No
(7) Is there any significant change or adjustment related situation take place in the Company’s business, products or services
in the reporting period
□ Applicable Inapplicable
(8) Major trade debtors and major suppliers
The company mainly sells customer information
Total Sales Amount of Top 5 Customers (RMB) 515,405,494.20
The total sales sum of the top five customers accounts for the proportion of the total annual sales 22.23%
Sales of related parties in the top five customers accounted for the proportion of total annual sales 17.71%
Company's top 5 major customer information
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Wafangdian Bearing Company Limited 2021 Annual Report
No. The customer name Sales (Yuan) Percentage of total annual sales
Customer controlled by the same actual
1 410,720,329.04 17.71%
controller 1
2 Customer 2 52,160,045.86 2.25%
3 Customer 3 19,061,595.05 0.82%
4 Customer 4 16,846,460.87 0.73%
5 Customer 5 16,617,063.38 0.72%
Total -- 515,405,494.20 22.23%
Other information of major customers
□ Applicable Inapplicable
Company's major suppliers
Total Purchase Amount of Top 5 Suppliers (RMB) 1,124,431,584.06
The total purchase amount of the top five suppliers accounts for the proportion of the total annual purchase 62.08%
The proportion of the purchase amount of related parties in the total annual purchase amount of the top
52.77%
five suppliers
Profiles of top 5 suppliers
No. Name of suppliers Amount of purchase(RMB) Percentage in total purchase of year(%)
1 Supplier1 955,748,429.05 52.77%
2 Supplier 2 69,314,648.11 3.83%
3 Supplier 3 51,176,870.13 2.83%
4 Supplier 4 25,034,036.51 1.38%
5 Supplier 5 23,157,600.26 1.28%
Total -- 1,124,431,584.06 62.08%
Other information of major suppliers
□ Applicable Inapplicable
3. Expenses
In RMB Yuan
Year-on-year Note to significant
2021 2020
increase/decrease changes
Sales expenses 172,118,808.99 210,217,418.49 -18.12%
Administrative expenses 109,978,729.45 93,959,959.13 17.05%
Financial expenses 39,397,717.95 43,427,505.67 -9.28%
R&D expenses 215,803,912.39 227,548,185.54 -5.16%
4. Investment in R & D
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Wafangdian Bearing Company Limited 2021 Annual Report
Applicable Inapplicable
The expected
Name of main impact on the
Project purpose Project progress Goals to be achieved
R&D project company's future
development
Through technical transformation, a
professional production line of medium
and large wind power reducer bearings is Optimize the
Wind power formed, and the curing process parameters product design, The output value will Increase market
driver bearing and equipment parameters can reduce the process upgrade double by 2021 share
rejection rate and rework rate, and stage
improve the qualified rate of product
production.
Optimize product processing technology,
improve product nesting rate, improve Optimize the
Mining In 2021, the output
product processing accuracy through product design, Increase market
machinery value will increase 1.5
equipment transformation, solve the process upgrade share
bearing times
quality problems such as heat and noise of stage
construction machinery products.
The structure and material of retainer are
changed to reduce the finished products of
New rolling
bearing, improve the service life of Optimize the
mill roller
bearing, solve the quality problems of product design, The output value will Increase market
bearing with
roller dropping and retainer fracture in the process upgrade double by 2021 share
long life and
early stage of this type of bearing, and stage
high reliability
increase the service life of bearing by
20%.
Research and At present,
development of customer To meet customer
main reducer installation has accuracy and life Increase market
Realize localization substitution
bearing of been completed requirements, to meet share
extrusion and use tracking customer requirements
granulator is pending
Bearing life and
High end large Technical reliability
Market prospect is broad, expand market Increase market
cylindrical communication, requirements
share. share
roller bearings process review increased, market
share increased
Greatly improve the
High end large It provides guarantee for the independent
design and Increase market
tapered roller development of high-power fan bearings Sample delivery
manufacturing level of share
bearings and wind power industry
fan spindle bearings in
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Wafangdian Bearing Company Limited 2021 Annual Report
China, and promote
the localization of
high-power fan spindle
bearings
High precision
and long life Solve the problem of long life and Assimilation Substitute imported Increase market
cold roll reliability of domestic bearings process parameter bearing share
bearing
The machining
High reliability
accuracy of the
and long life
parts is studied Improve product
four-row Improve product performance and occupy Increase market
and the process performance and
conical mill the market share
verification of occupy the market
work roll
heat treatment is
bearing
carried out
Mining card Electric wheel
We will fully open the
electric wheel We will fully open the import substitution bearing sample Increase market
import substitution
bearing market development share
market
development stage
Large megawatt
offshore wind will
gradually replace low
megawatt onshore
wind. Subsequently, in
Research and
the planetary frame,
development of Low mw onshore wind power, wind
Bearing strength tapered roller bearings Increase market
a planetary power market mainstream configuration
calculation stage that can withstand share
frame tapered products
large axial force will
roller bearing
become the
mainstream
configuration products
in the wind power
market.
Optimization
Optimize the
of ultra-large Stable product quality,
product design, Increase market
high pressure Improve bearing life and reliability improve bearing life
process upgrade share
roller grinding and reliability
stage
bearings
Company r & D personnel
Number of R&D personnel (persons) 2021 2020 Changes in the proportion
Ratio of r&d personnel 325 355 -8.45%
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Wafangdian Bearing Company Limited 2021 Annual Report
Educational structure of r&d personnel 14.00% 16.00% -2.00%
Undergraduate course —— —— ——
A master's degree 33 37 -10.81%
Age composition of r&d personnel 4 2 100.00%
Under the age of 30, —— —— ——
30 ~ 40 years old 26 33 -21.21%
Number of R&D personnel (persons) 50 68 -26.47%
R&d investment of the company
R&d Investment (YUAN) 2021 2020 Changes in the proportion
R&d as a percentage of revenue 215,803,912.39 227,548,185.54 -5.16%
Amount of capitalization of R&D
9.31% 12.24% -2.93%
Investment (YUAN)
Capitalized R&D as a percentage of
0.00 0.00 0.00%
R&D spending
R&d Investment (YUAN) 0.00% 0.00% 0.00%
Causes and impacts of major changes in the composition of r&d personnel
□ Applicable Inapplicable
The reason for the significant change in the proportion of total R&D investment to revenue over the previous year
□ Applicable Inapplicable
The reason of the large change of capitalization rate of R&D investment and its rationality explanation
□ Applicable Inapplicable
5.Cash flow
Unit:yuan
project 2021 2020 Year-on-year (+/_)
Subtotal of cash flows from operating activities 1,280,954,319.22 1,165,069,098.28 9.95%
Subtotal of cash outflow from operating activities 1,203,276,156.74 1,103,844,170.55 9.01%
Net cash flow from operating activities 77,678,162.48 61,224,927.73 26.87%
Subtotal of cash inflow from investment activities 2,097,844.44 2,397,893.92 -12.51%
Subtotal of cash outflow from investment activities 4,753,911.10 3,579,393.58 32.81%
Net cash flow from investment activities -2,656,066.66 -1,181,499.66 124.80%
Subtotal of cash inflow from financing activities 931,600,000.00 999,000,000.00 -6.75%
Subtotal of cash outflow from financing activities 957,694,735.35 1,029,848,259.00 -7.01%
Net cash flow arising from financing activities -26,094,735.35 -30,848,259.00 -15.41%
Net increase in cash and cash equivalents 46,119,096.45 26,404,311.44 74.67%
The main influencing factors of the major changes in relevant data compared with the same period
Applicable Inapplicable
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Wafangdian Bearing Company Limited 2021 Annual Report
The reason for the significant difference between the net cash flow generated by the company's operating activities during the
reporting period and the current year's net profit
Applicable Inapplicable
The net cash flow generated by operating activities is based on the cash basis and reflects the net income and expenditure of
monetary funds in operating activities.
This year's net profit is prepared on an accrual basis, reflecting the net profit and loss of revenue, profit, cost and expense and various
impairment provisions.
V. Analysis of non-main business
Applicable Inapplicable
Unit:yuan
Proportion of Whether it is
Amount Causes of formation
total profits sustainable
Return on
2,327,743.95 -1.13% Mainly debt restructuring no
investment
Change in fair
93,991.93 -0.05% Changes in stock prices of traded financial assets no
value gain or loss
Asset impairment -74,369,791.08 36.14% Provision for inventory depreciation no
Non-operating Write-off and fine income of payment that cannot
3,335,370.92 -1.62% no
income be paid
Loss of destruction and abandonment of
Non-operating
1,857,448.96 -0.90% non-current assets and expenditure on public no
expense
welfare donations
Credit
-59,114,404.38 28.73% Prepare expected credit impairment of receivables no
impairment
VI. Situation of assets and liabilities
1. Major change in asset items
Unit：yuan
Monetary fund At the end of the year 2021 At the beginning of the year 2021 The Notes on
Accounts Percentage of Percentage of total proportion Major
Amount Amount
receivable total assets assets (+/_) Changes
Contract assets 286,476,701.69 8.90% 194,152,280.08 6.20% 2.70%
inventory 999,454,308.40 31.04% 975,628,091.12 31.13% -0.09%
Investment real
3,763,781.55 0.12% 0.00% 0.12%
estate
Long-term
equity 710,611,964.20 22.07% 615,656,946.30 19.64% 2.43%
investment
Fixed assets 68,862,311.38 2.14% 117,516,482.39 3.75% -1.61%
18
Wafangdian Bearing Company Limited 2021 Annual Report
Projects under
0.00% 0.00% 0.00%
construction
Right assets 438,220,714.18 13.61% 474,109,923.22 15.13% -1.52%
Short-term
25,929,699.29 0.81% 24,254,985.16 0.77% 0.04%
borrowing
Contract
0.00% 0.00% 0.00%
liability
Long-term
677,000,000.00 21.02% 670,000,000.00 21.38% -0.36%
borrowing
Lease liability 38,426,632.29 1.19% 39,456,304.55 1.26% -0.07%
Monetary fund 0.00% 0.00% 0.00%
Accounts
0.00% 0.00% 0.00%
receivable
Foreign assets account for a relatively high proportion
Applicable Inapplicable
2.Assets and liabilities measured at fair value
Applicable Inapplicable
Unit：yuan
Accumulated
Current fair Impairment Current Current
Ending changes in fair Other The final
item value change of the current Purchase Sale
balance value of changes number
profit and loss period Amount Amount
equity
Financial
assets
1. Trading
financial
assets
322,037.9
(excluding 228,046.00 93,991.93 -244,995.37
3
derivative
financial
assets)
The above 322,037.9
228,046.00 93,991.93 -244,995.37
total 3
Financial
0.00 0.00 0.00 0.00
liabilities
Other changes
Whether the measurement attribute of the company's main assets has changed significantly during the reporting period
19
Wafangdian Bearing Company Limited 2021 Annual Report
□ Yes No
3.Limitation of asset rights by the end of the report
By the end of the reporting period there is no limitation on the rights of major assets of the company.
V. Investment
1. General situation
□ Applicable Inapplicable
2.Significant equity investments obtained during the reporting period3. Major ongoing non-equity investments during the reporting period
□ Applicable Inapplicable
3.Significant non-equity investment in process in the reporting period
□ Applicable Inapplicable
4. Financial asset investment
(1) securities investment
Applicable Inapplicable
Unit :yuan
Curre Profit and
The Current Curre
nt loss Endin
Varietie abbrevia Initial cost Accounting Initial fair value Accumulated nt Account
Varieties of Purch during g Sources of
s of tion of of measuremen book change changes in fair Sale ing
securities ase the book funding
code securitie investment t model value profit and value of equity Amou subject
Amou reporting value
s loss nt
nt period
Chongqi Fair value 228,046 322,0 Trading
Domestic and
601005 ng iron 567,033.30 measuremen 93,991.93 -244,995.37 0.00 0.00 93,991.93 financial debt-for-equity
foreign stocks .00 37.93
and steel t assets
228,046 322,0
total 567,033.30 -- 93,991.93 -244,995.37 0.00 0.00 93,991.93 -- --
.00 37.93
Disclosure date of the announcement
of the board of directors for the
approval of securities investment
20
Wafangdian Bearing Company Limited 2021 Annual Report
(2)derivatives investment
□ Applicable Inapplicable
There is no derivative investment during the reporting period.
5.Use of the raised funds
□ Applicable Inapplicable
No use of the raised funds during the company's reporting period.
VIII. Sales of Significant Assets and Equity
1. Sales of Significant Assets
□ Applicable Inapplicable
2. Sales of Significant Equity
□ Applicable Inapplicable
IX. Analysis on Principal Subsidiaries and Mutual Shareholding Companies
□ Applicable Inapplicable
Particulars about the principal subsidiaries and mutual shareholding companies which may affect the Company’s net profit by over
10%.
In RMB Yuan
Company Company Principal registered Operating operating
total assets net asset net profit
name type business capital income profit
Product and
Sale Bearing
Liaoyang
and 19,350,000 217,592,19 -68,355,99 158,709,77 -3,210,533. -3,238,247.
Bearing Subsidiary
machine-elect .00 8.04 3.51 0.92 01 18
company
rical
equipment
Product and
Sale Bearing
Dalian
and 10,000,000 188,798,23 -22,279,89 206,550,61 -16,172,05 -15,546,04
Electrical Subsidiary
machine-elect .00 3.65 8.57 2.85 1.52 1.43
Equipment
rical
equipment
Wzhou
Product and
precision
Sale Bearing
spherical
and 194,000,00 360,277,94 187,431,11 336,491,37 -13,491,05 -13,103,19
roller Subsidiary
machine-elect 0.00 2.52 5.82 1.56 9.46 2.65
bearing(W
rical
afangdian)
equipment
Co.,Ltd.
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable Inapplicable
Description of the main holding and shareholding companies
21
Wafangdian Bearing Company Limited 2021 Annual Report
X.A structured entity controlled by a company
□ Applicable Inapplicable
XI.The prospect of the company's future development
Companies face both opportunities and challenges. China's economy is resilient, and its long-term sound fundamentals remain
unchanged. China's strategy of strengthening the foundation of the real economy and strengthening itself through scientific and
technological innovation remains unchanged. Bearing industry is a national strategic industry and a key policy support industry in
China. With the rise of China's manufacturing industry, the continuous breakthrough of bearing core technology and the continuous
improvement of industry concentration, domestic replacement opportunities to accelerate the emergence. The future development
strategy of the company is as follows: the marketing end drives the company, starting with product application, realizing the
differentiation of design, application and price, realizing product differentiation, creating a series of high-end brands, and finally
realizing the development of the company.
XII. Statement of Such Activities as Reception of Survey, Communications, Interview, etc.
Applicable Inapplicable
The main
contents of the
Reception Reception Reception Reception discussion and Index of the basic
way
time site object type object the facts of the survey
information
provided
Shenzhen
The nature of Shenzhen Exchange
Exchange Individual
2021.08.24 other personal the company's Interactive easy
Interactive investor
shares platform
easy platform
Shenzhen
The nature of Shenzhen Exchange
Exchange Individual
2021.08.27 other personal the company's Interactive easy
Interactive investor
shares platform
easy platform
Production
Telephone Individual and operation
2021.09.14 The office personal There is no
communication investor of the
company
22
Wafangdian Bearing Company Limited 2021 Annual Report
Chapter IV Corporate Governance
I. Basic situation of corporate governance
Company in accordance with the "company law", "securities law" and other related regulations established by the general meeting of
shareholders, board of directors, board of supervisors, and senior management personnel of the company governance structure,
formed the authority and decision-making body, watchdog and senior management responsibilities clear, standardized operation
mechanism of mutual coordination and mutual checks and balances. It has established internal systems related to the operation of the
"three associations", independent directors, information disclosure, investor protection, related party transactions, and internal control.
Through the formulation of the Articles of Association and the implementation of various internal systems, the company has clarified
the responsibilities, powers, procedures and obligations of institutions at all levels in decision-making, implementation and
supervision.
Whether the actual situation of corporate governance is materially different from laws, administrative regulations and regulations on
listed company governance issued by CSRC
yes no
The actual situation of corporate governance is not significantly different from laws, administrative regulations and regulations on
listed company governance issued by the CSRC.
II. The company's independence from the controlling shareholders and actual controllers in
ensuring the company's assets, personnel, finance, institutions and business
In terms of business, personnel, assets, institutions and finance, the Company and the controlling shareholder are independently
accounting, undertaking responsibilities and risks independently. There is no situation in which the company and the controlling
shareholder cannot guarantee their independence and independent operation ability in terms of business, personnel, assets,
institutions and finance.
III. The situation of industry competition
Applicable Inapplicable
IV. Information about the annual and extraordinary general meetings of shareholders held
during the reporting period
1. General meeting of shareholders during the reporting period
Investor The meeting
The meeting time The meeting type At the date Date of disclosure
participation ratio resolution
2020 Annual
2020 Annual Annual general
80.31% 2021.05.19 2021.05.20 General Meeting
General meeting meeting
resolution
2. The reinstated preferred shareholders request an extraordinary general meeting of shareholders
Applicable Inapplicable
V.The situation of directors, supervisors and senior managers
1. Basic information
23
Wafangdian Bearing Company Limited 2021 Annual Report
Expiry Initial Number of Number of shares
Other Ending
Status of Starting Date Date of number of shares increased to be sold at
Name position changes shares
employment Gender Age of Tenure Tenure shares in current current period
(share) (shares)
(shares) period (shares) (shares)
Chairman of the board of
Liu Jun Incumbent male 52 2019/9/6 0 0 0 0
directors
Sun director,General
Incumbent female 54 2013/6/26 0 0 0 0
Nanjuan accountant,secretory of board
Wang
director,G.M. Incumbent male 56 2021/5/19 0 0 0 0
Jiyuyan
Zhang
director Incumbent male 54 2015/9/16 0 0 0 0
Xinghai
Chen
director Incumbent male 55 2013/6/26 0 0 0 0
Jiajun
Tan
Jiangua director Incumbent male 58 2019/9/6 0 0 0 0
ng
Tang
director Incumbent male 60 2015/9/16 0 0 0 0
Yurong
Fang Bo director Incumbent female 50 2013/6/26 1,500 0 0 1,500
Liu
Independent Director Incumbent male 66 2016/5/18 0 0 0 0
Yuping
Sun Kun Independent Director Incumbent female 64 2018/5/18 0 0 0 0
Wang
Independent Director Incumbent female 59 2021/5/19 0
Yan
Liang Independent Director Incumbent female 57 2017/5/18 0 0 0 0
24
Wafangdian Bearing Company Limited 2021 Annual Report
Shuang
Sun President of Supervisory
Shichen Incumbent male 58 2015/9/16 0 0 0 0
Committee
g
Li
Supervisory Incumbent female 60 2013/6/26 0 0 0 0
Xiumin
Wang
Supervisory Incumbent male 50 2016/5/18 0 0 0
Fuxing
Zhang
Supervisory Incumbent male 57 2020/2/28 0
Fuxiang
Zhang
Supervisory Incumbent male 50 2021/1/8 0 0 0 0
Yihui
Li
Vice-G.M Incumbent male 48 2019/12/18 0 0 0 0
huawei
Gao 2021/1/
Supervisory Resignation male 58 2019/8/15 0 0 0 0
Ping 7
2021/5/
Wen Bo Independent Director Resignation male 59 2015/6/18 0 0 0 0
18
Zhao 2021/1/
director,G.M. Resignation male 57 2017/3/16 0 0 0
Yang 8
Total -- -- -- -- -- -- 1,500 0 0 1,500
During the reporting period, whether any directors or supervisors leave office or senior managers are dismissed
yes no
Changes of directors, supervisors and senior managers of the company
Applicable Inapplicable
25
Wafangdian Bearing Company Limited 2021 Annual Report
Names Office Taken Type Date Cause
Independent Leave office at He has served as an independent director of the
Wen Bo 2021/5/18
Director the end of term Company for six consecutive years
Zhao Yang Director,G.M resignation 2021/1/8 changes
2. Position
The professional background, main work experience and main responsibilities of the current directors, supervisors and senior
managers of the company
1. Resumes of non-independent directors
Mr. Liu Jun, born in January 1970, graduated from university with a master's degree. He started to work in August 1992 and joined
the COMMUNIST Party of China in December 2000. Deputy General Manager of Crane Group Co.,Ltd., Vice President of Dalian
Huarui Heavy Industry Group Co.,Ltd., Chairman and Party Secretary of Dalian Rubber & Plastic Machinery Co.,Ltd., currently
secretary of the Party Committee and Chairman of Wafangdian Bearing Group Co.,Ltd.
Mr. Zhang Xinghai, born in October 1968, graduated from university. He is a senior accountant at the research level. He started to
work in July 1991. He has served as deputy chief Accountant and secretary of the Board of Directors of Wafangdian Bearing Co.,
LTD., director, chief accountant and secretary of the board of directors of Wafangdian Bearing Co., LTD., and is now deputy
Secretary of the Party Committee and general manager of Wafangdian Bearing Group Co., LTD.
Mr. Chen Jiajun, born in December 1967, graduated from college, is an economist and statistician. He started to work in August
1990. He used to be the chief, assistant minister, Deputy Minister and minister of economic Operation Department of Wafangdian
Bearing Group Co., LTD., assistant general Manager of Wafangdian Bearing Group Co., LTD., and the Head of Economic Operation
Department. Deputy General Manager of Wafangdian Bearing Group Co., LTD.
Mr. Wang Jiyuan was born in December 1966. Graduated from Liaoning University, majored in industrial economics, university
degree. Successively served as vice minister of operation and management Department, Minister of Planning and Finance
Department, deputy general manager, assistant general manager of Tile Shaft Group. He is now the director and general manager of
the company.
Ms. Sun Najuan, born in October 1968, graduated from university with a master's degree. She is a senior accountant at the research
level. She started to work in August 1990. Former wafangdian bearing group limited liability company finance department
accounting, auditing section chief, Wazhou company supplies company general manager assistant, Wazhou company sales
corporation assistant general manager, deputy chief accountant of Wafangdian bearing group co., LTD., the current Wazhou company
chief accountant, director, board secretary.
Mr. Tan Jianguang, born in December 1964, assistant engineer, began to work in August 1986. Worked as workshop director,
salesman, director, Deputy general manager and General manager of the Marketing Department of the Retaining Frame Branch of
Tile Shaft Joint-stock Company, assistant general manager of tile Shaft Joint-stock Company and general manager of railway
Business Division and Railway Bearing Sales Company; Director and deputy general manager of Tile Shaft Co., LTD.
Mr. Tang Yurong, born in 1962, college education, electrical engineer. He joined SKF in 1989 as distribution Network Development
Manager and served as managing Director of SKF China Co., Ltd. from 1996 to 2004. From 2004 to 2007 He was the global
marketing director of SKF's Industrial division. From 2007 to 2008 He served as president of SKF's China Automotive Division. He
has been the global president of a bearing brand of SKF group since 2008. He has served as senior Vice President of SKF Group and
President of SKF Special Business Division since January 2015. In addition to serving as senior Vice President of SKF Group and
President of SKF Special Business Division, he has served as President of SKF China and President of SKF Industrial Market China
since May 2015. President of SKF Industrial Markets Asia in February 2016.
Ms. Fang Bo, born in June 1972, has a bachelor's degree. He joined PWC as an auditor in 1994. In 1997, he joined SKF (China) Co.,
LTD., and worked as the financial manager of the subsidiary of the investment company and the financial director of the investment
26
Wafangdian Bearing Company Limited 2021 Annual Report
company. Now, he is the chief Financial Officer of SKF (China) Co., LTD., and the regional fund manager of SKF China. Since
January 2020, he has been the head of SKF Northeast Asia Financial Operations Center.
2. Resumes of independent directors
Ms. Sun Kun, born in 1958, is a Chinese national. She holds a PhD degree and is a professor of accounting. Since 1982, he has been
working in Dongbei University of Finance and Economics as teaching assistant, lecturer, associate professor and professor of
accounting School of Dongbei University of Finance and Economics. He has served as deputy of the 9th Liaoning Provincial
People's Congress, deputy secretary general of Liaoning Provincial Internal Audit Association, director of Liaoning Provincial Audit
Association, moderator of Administrative Penalty Hearing Committee of Certified Public Accountants industry of Liaoning
Provincial Finance Department, director of China Internal Audit Association and member of academic Committee. From May 2002
to March 2008 He served as an independent director of Dalian Dayang Trands Co., LTD.
Mr liu Yuping , born in August 1956, professor, after graduation to date in northeast university of finance and economics school of
law, the northeast university of finance and economics, director of the school of law education in part-time arbitrators of the
arbitration commission in dalian, liaoning is law firm lawyers, northeast university of finance and economic and technological
development corporation legal adviser, constitution and administrative law, liaoning province, vice President, Have rich legal
knowledge.
Ms. Liang Shuang , born in 1965, Chinese nationality, doctor of Accounting, professor. Since 1990, HE has been working in
Dongbei University of Finance and Economics, successively serving as teaching assistant of Material And Economic Management
Department, lecturer, associate professor and professor of Accounting School of Dongbei University of Finance and Economics, and
concurrently serving as head of finance Department of Training Center of Accounting School of Dongbei University of Finance and
Economics. He was a member of the 10th CPPCC of Dalian from 2003 to 2007, a member of the 11th CPPCC of Dalian from 2008
to 2012, and a member of the 12th CPPCC/Proposals Committee of Dalian from 2013 to 2017. Independent director of the sixth
Board of Directors of Dalian Shengya (resigned).
Ms. Wang Yan, born in 1963, is a professor and master supervisor of the Law School of Dongbei University of Finance and
Economics. In 1981, he graduated from China University of Political Science and Law with a bachelor's degree in Law. In 1988, he
graduated from China University of Political Science and Law with a Master's degree in Economic Law. Since 1988, professor of
Law School of Dongbei University of Finance and Economics. Ms. Wang Yan served as an independent director of Dalian
International Cooperation Group Co., Ltd. (resigned), CGN Nuclear Technology Development Co., Ltd. (resigned), Dalian
Liancheng CNC Machine Co., Ltd. (served), and Iceberg Cold and Thermal Technology Co., Ltd. (resigned). Part-time jobs: Director
of China Economic Law Society, president of Economic Law Society of Liaoning Province Law Society, academic member of
Liaoning Province Law Society; Standing director of the first council of Dalian People's Mediation Association, member of expert
Advisory Committee of Dalian Intermediate People's Court, legal adviser of Dalian Consumers Association, Pulandian Municipal
Government, Dalian Municipal Government Office of Governing city by Law; Member and arbitrator of expert Advisory Committee
of Dalian Arbitration Commission, arbitrator of Anshan, Benxi and Yingkou Arbitration Commission, part-time lawyer; He
successively served as the director of economic Law Teaching Department and vice Dean of Law School of Dongbei University of
Finance and Economics.
3.the supervisors
Mr. Sun Shicheng, born in December 1964, bachelor's degree, began to work in August 1987, senior political engineer. He used to
be the chief of the Organization Department, the Organizer of the Party Committee, the secretary of the Party Branch of northwest
Sales Company, the Secretary and deputy general manager of North China Sales Company, the head of the Organization Department
concurrently the Secretary of the Party Committee and chairman of the labor Union of Wazhou Group company, and the deputy
secretary of the Party Committee and chairman of the labor Union of Wazhou Group Company.
Ms. Li Xiumin, born in May 1962, graduated from junior college and is a senior accountant. She began to work in November 1980.
He used to be accountant, financial inspector, chief of financial Section, Assistant minister and Deputy minister of financial
27
Wafangdian Bearing Company Limited 2021 Annual Report
Inspection Department of Wafangdian Bearing Group Co., LTD. Now he is the supervisor of Wafangdian Bearing Group Co., LTD.
Mr. Wang Fuxing, born in June 1972, graduated from university, is a senior accountant. He started to work in August 1993. , a
former wazhou group bearing equipment manufacturing co., LTD. Comprehensive management department, financial department
secretary wazhou group precision turntable bearing co., LTD., deputy secretary of the trade union chairman of the financial manager,
minister of human resources, wazhou group co., LTD., director of the office of part-time secretary, wazhou group company financial
management department, secretary of the secretary, Director of strategic Purchasing Department of wazhou Group company
concurrently held the post of secretary. At present, he is the minister of propaganda Department of The Party Committee of wazhou
Group and concurrently the minister and secretary of culture Department of the enterprise.
Mr. Zhang Fuxiang was born in August 1965. Deputy Senior Engineer. He joined the company in August 1988 and served as deputy
factory director and general manager of Precision Cage Branch of Wafangdian Bearing Co., LTD., and deputy chief engineer of
Engineering Center of Wafangdian Group. Now he is the head of quality assurance Department of the company.
Mr. Zhang Yihui, born in August 1972, started to work in August 1991, graduated from Liaoning University in June 2000, majoring
in business management. He used to be the deputy general manager of bearing parts Branch of the company and general manager of
Wafangdian Branch of high-end automobile bearing Company of wazhou Group. Now he is the general manager of medium and
large bearing branch of the company.
Executives
Mr. Li Huawei was born in June 1974. University degree, master degree, senior engineer. He started to work in August 1996 and
successively served as deputy director, executive deputy director and director of engineering Research Center of Tile Shaft Group
and deputy chief engineer of the group. Now he is the deputy general manager of the company.
Holding positions in shareholder units
Applicable Inapplicable
Holding positions in shareholder units
Applicable Inapplicable
Whether to receive
Term Term
Name of remuneration
Name of shareholder A position held by a shareholder start end
Employee allowance in the
Date Date
shareholder unit
Tang Yurong AKTIEBOLAGET SKF Senior Vice President Yes
Fang Bo SKF (China) LTD The finance director Yes
Wafangdian Bearing Secretary of the Party Committee and
Liu jun Yes
Group Co. LTD Chairman of the Board
Wafangdian Bearing
Sun Najuan director No
Group Co. LTD
Zhang Wafangdian Bearing Deputy Secretary of the Party
Yes
Xinghai Group Co. LTD Committee and General Manager
Wafangdian Bearing
Chen Jiajun Deputy general manager Yes
Group Co. LTD
Deputy Secretary of the Party
Wafangdian Bearing
Sun Shicheng Committee, chairman of the trade Yes
Group Co. LTD
union, director
28
Wafangdian Bearing Company Limited 2021 Annual Report
Wafangdian Bearing
Li Xiumin The supervisors Yes
Group Co. LTD
Position in other units
Applicable Inapplicable
Whether you
receive
Name of A position held in Term Term end
Name of other units remuneration
Employee another unit start Date Date
allowance in
other units
Dalian Guangyang wazhou automobile Chairman of the
Liu jun No
Bearing Co., LTD board of directors
Dalian Diyejikai Wazhou Industry Co., Chairman of the
Liu jun No
LTD board of directors
Liu jun China Bearing Industry Association Vice director of No
Zhang
Wafangdian Bearing Hospital director No
Xinghai
Zhang Wazhou Group (Europe) bearing Co.,
Managing director, No
Xinghai LTD
Dalian Zhongcheng Asset Management
Chen Jiajun director No
Co. LTD
Dalian Guangyang wazhou automobile
Chen Jiajun director No
Bearing Co., LTD
Dalian Diyejikai Wazhou Industry Co.,
Chen Jiajun director No
LTD
Dalian Wazhou Fengyuan Machinery Chairman of the
Wang Jiyuan No
Co. LTD board of directors
Shanghai Aaimuyi Electromechanical
Sun Najuan director No
Equipment chain Co., LTD
Beijing Nankou SKF Railway Bearing
Tang Yurong director No
Co., LTD
Tang Yurong SKF (China) LTD director Yes
Fang Bo SKF (China) LTD Financial officer Yes
Department of Law, Dongbei University
Liu Yuping The director of the Yes
of Finance and Economics
The independent
Liu Yuping Dalian Thermoelectric Co. LTD Yes
director
Dongbei University of Finance and
Liang shuang professor Yes
Economics
29
Wafangdian Bearing Company Limited 2021 Annual Report
Dongbei University of Finance and
Sun Kun professor Yes
Economics
Dongbei University of Finance and
Wang Yan professor Yes
Economics
The independent
Wang Yan Dalian Liancheng CNC Machine Co. LTD Yes
director
Wen bo Liaoning Huaicheng Law Firm The director of the Yes
Dalian Zhongcheng Asset Management
Sun Shicheng director No
Co. LTD
Chairman of the
Sun Shicheng Wafangdian Bearing Hospital No
board of directors
Li Xiumin Wafangdian Bearing Hospital The supervisors No
Dalian Zhongcheng Asset Management Chairman of
Li Xiumin No
Co. LTD supervisory Board
Li Xiumin Wafangdian Bearing Hospital The supervisors No
Wafangdian Tongda Bearing
Wang Fuxing director No
Manufacturing Co. LTD
Liaoning North Metal Supply Chain Co.
Wang Fuxing The supervisors No
LTD
Punishment of current and outgoing directors, supervisors and senior managers by securities regulatory authorities in the past three
years during the reporting period
Applicable Inapplicable
3. Remuneration of directors, supervisors and senior managers
Decision-making procedures, basis for determination and actual payment of remuneration for directors,
supervisors and senior managers
The remuneration of independent directors of the company shall be calculated and paid according to the standards
determined by the board of directors and the general meeting of shareholders. Other directors and supervisors
shall not pay remuneration for their positions as directors and supervisors. The salary of senior executives shall be
determined according to the salary level of the heads of dalian state-owned enterprises and the completion of the
business objectives determined by the board of directors at the beginning of the year, strictly following the
company's salary assessment system.
Remuneration of directors, supervisors and senior managers during the reporting period
Unit:10000yuan
Total pre-tax
Whether to obtain
compensation
The name Position Gender Age As state remuneration from related
received from the
parties of the company
company
Chairman of
Liu jun male 52 The current
the board of
30
Wafangdian Bearing Company Limited 2021 Annual Report
directors
Director,
Sun Najuan secretary of the female 54 The current 75.33
board
Zhang Xinghai director male 54 The current
Chen Jiajun director male 55 The current
Director and
Wang Jiyuan General male 56 The current 88.39
Manager
Tan Jianguang director male 58 The current 91.04
Chairman of
Sun Shicheng supervisory male 58 The current
Board
Li Xiumin The supervisors female 60 The current
Wang Fuxing The supervisors male 50 The current
Zhang Fuxiang The supervisors male 57 The current 32.36
Zhang Yihui The supervisors male 50 The current 48.6
Deputy general
Li Huawei male 48 The current 41.83
manager
Total -- -- -- -- 377.54 --
VI. Performance of directors' duties during the reporting period
1. The situation of the Board of Directors during this reporting period
The meeting time At the date Date of disclosure The meeting resolution
Seven boards of directors in
2021/1/13 2021/1/14 Seven board resolutions in eight sessions
eight years
Eight boards of directors 2021/3/9 2021/3/10 Eight board resolutions in eight sessions
Nine board meetings in eight
2021/4/23 2021/4/27 Nine board resolutions in eight sessions
years
Eight and ten boards of
2021/8/20 2021/8/24 Ten board resolutions in eight sessions
directors
Eight and eleven board
2021/10/22 2021/10/26 The eleventh session of the eighth board of Directors
meetings
2. The attendance of directors at the board of Directors and shareholders' meetings
Attendance of directors at the board of directors and general meetings of shareholders
The number Number of Number of Number of Board of Whether two Attendance
Director's
of board board board times Directors consecutive of
name
meetings to meetings meetings entrusted to absence board shareholders'
31
Wafangdian Bearing Company Limited 2021 Annual Report
be attended attended on attended by attend board meetings meetings
during the site communicati meetings were not
reporting on attended in
period person
Liu jun 5 5 0 0 0 No 1
Sun Najuan 5 5 0 0 0 No 1
Wang Jiyuan 3 3 0 0 0 No 0
Zhang Xinghai 5 5 0 0 0 No 1
Chen Jiajun 5 5 0 0 0 No 1
Tan Jianguang 5 5 0 0 0 No 0
Tang Yurong 5 0 5 0 0 No 0
Fang Bo 5 0 5 0 0 No 0
Liu Yuping 5 0 5 0 0 No 1
Sun Kun 5 0 5 0 0 No 0
Wang Yan 2 0 2 0 0 No 0
Liang Shuang 5 0 5 0 0 No 0
Wen bo 3 0 3 0 0 No 1
Two consecutive statements of failure to attend board meetings in person
3. Objections raised by directors to matters related to the company
Whether directors raise objections to matters related to the company
yes no
During the reporting period, the directors raised no objection to the company's related matters.
4. Other explanations of directors' performance of duties
Whether the directors' suggestions about the company have been adopted
yes no
A director's statement to the Company that a proposal has been or has not been adopted
32
Wafangdian Bearing Company Limited 2021 Annual Report
Company director according to the company law, the company's articles of association and the provisions of the relevant laws and regulations and requirements, earnestly implement the laws,
regulations, the duties given by the company's articles of association and the independent director system, actively attended a meeting of the board and general meeting of shareholders, company
check and guide the company production and operation, independent advice about important matters, I put forward a lot of valuable professional suggestions on the improvement of the
company's internal control system and daily operation decisions. I was diligent, loyal and responsible in performing my duties. I gave full play to the role of independent directors and effectively
safeguarded the interests of listed companies and shareholders.
The company attaches great importance to the opinions of the directors, and the management actively studies and implements them. The opinions of the directors play a positive role in
improving the company's management and preventing risks.
VII. The situation of the special committees under the Board of Directors during the reporting period
Members Important Other Details of
Name of Number of
of the At the date The meeting content comments and performance objection
committee Meetings
situation suggestions of duties (if any)
1. Key issues concerning the audit work in 2020; 2. Analysis of losses in 2020; 3. Major
2021.03.22
problems found in the audit.
1. Summary of internal audit and financial report audit in 2020; 2. The proposal on the
renewal of the appointment of the accounting firm in 2021; 3. Report of the Board of
Sun Kun, 2021.04.12 Auditors on its performance in 2020; 4. Summary report of the Audit Committee on the
Liang audit work of the accounting firm in 2020; 5. Annual Financial And Final Accounts report
Audit
Shuang, 5 2020 (audited), Financial and Final Accounts Report 2021 (unaudited)
committee
Sun 1.2021 semi-annual financial and final accounts Report (unaudited); 2.2021 Semi-annual
Najuan 2021.08.16 internal audit work Report; 3. Proposals on asset purchase and related party transactions;
4. Proposals on asset leasing and related party transactions.
1. Financial final accounts for the third quarter of 2021 (unaudited); 2. Work summary of
2021.10.18
the third quarter of 2021
2021.11.05 Communication matters in the early stage of 2021 annual audit
Nominatin Wen Bo, 2021.01.12 Recommend Wang Jiyuan as general manager and director candidate
g Liu Jun, 2 Ms. Wang Yan was nominated as an independent director candidate of Wafangdian
2021.04.12
committee Liu Yuping Bearing Co., LTD
33
Wafangdian Bearing Company Limited 2021 Annual Report
VIII. Work of the Board of Supervisors
The board of Supervisors shall find out whether the company has risks in its supervision activities during the reporting period
yes no
The board of Supervisors has no objection to the matters supervised during the reporting period.
IX. Employee status
1. Number of employees, professional composition and education level
Number of working employees of parent company at the end of reporting period (persons) 2,471
Number of employees in major subsidiaries at the end of reporting period (persons) 706
Total number of in-service employees at the end of reporting Period (persons) 3,177
Total number of salaried employees (persons) 3,177
Number of retired employees (persons) to be borne by the parent company and its major
111
subsidiaries
Professional composition
Specialty composition category Number of Majors (Persons)
Production personnel 2,124
The sales staff 234
Technical personnel 139
Financial personnel 79
Administrative personnel 381
Not on-the-job 107
delegate 113
A combined 3,177
The degree of education
Education Category Quantity (person)
A graduate student 33
University degree 502
college 688
Technical secondary school and below 1,954
A combined 3,177
2. Salary policy
In accordance with the relevant national laws and regulations and a series of relevant policies of the government labor department,
the company has formulated the company's salary assessment system based on the actual situation of the company. Adhering to the
principle of "fairness, efficiency, work quality, performance first", we constantly improve the compensation system, enhance the
incentive mechanism of employees, and fully mobilize the enthusiasm of employees.
3. Training plan
The company accelerates talent training, strengthens training and implements "talent Promotion Project". In 2021, the company has
34
Wafangdian Bearing Company Limited 2021 Annual Report
formulated "talent promotion Project" with "four talent promotion projects" as the core, namely: talent independent promotion project,
talent structure optimization project, talent team reserve project and talent knowledge update project. In the whole year, 45 training
items were completed, with a completion rate of 107.1%, totaling 662 class hours and more than 5,200 person-times.
4. Labor outsourcing
Applicable Inapplicable
X.The company's profit distribution and the conversion of capital reserve fund into capital
stock
Formulation, implementation or adjustment of profit distribution policies, especially cash dividend policies during the reporting
period
Applicable Inapplicable
1. When formulating the profit distribution plan, the company pays full attention to the reasonable return of investors and takes into
account the long-term interests of the company, the overall interests of all shareholders and the sustainable development of the
company.
2. Adhere to the continuity and stability of profit distribution. On the premise that the company is profitable and the cash can meet
the company's sustainable operation and long-term development, the accumulated profit distributed by cash in the recent three years
shall not be less than 30% of the average annual distributable profit realized in the recent three years.
Special explanation of cash dividend policy
Whether it conforms to the provisions of the articles of association or the requirements of
YES
the resolution of the general meeting of shareholders:
Are dividend standards and ratios clear and clear: YES
The adequacy of relevant decision-making procedures and mechanisms: YES
Whether the independent directors have performed their duties and played their due roles: YES
Whether minority shareholders have sufficient opportunities to express their opinions and
YES
appeals, and whether their legitimate rights and interests are fully protected:
If the cash dividend policy is adjusted or changed, the conditions and procedures are
YES
compliant and transparent:
The company's profit during the reporting period and the parent company's profit available for distribution to shareholders are
positive, but no cash dividend distribution plan has been put forward
Applicable Inapplicable
Profit distribution and conversion of capital reserve fund into capital stock during the reporting period
Applicable Inapplicable
The company plans not to distribute cash dividend, bonus shares or increase capital stock by provident fund.
XI. The implementation of the company's equity incentive plan, employee stock ownership
plan or other employee incentive measures
Applicable Inapplicable
The company has no equity incentive plan, employee stock ownership plan or other employee incentive measures and their
implementation during the reporting period.
XII. Internal control system construction and implementation during the reporting period
35
Wafangdian Bearing Company Limited 2021 Annual Report
1. Internal control construction and implementation
In 2021, the company according to the requirements of the company's articles of association and other system adjustment and the
actual business needs, 45 a new internal control system, the revision of internal control system of 22, further clarify the responsibility
and authority of the institutions, avoid cross function, missing or the over-concentration of power and responsibility form
cooperatively, individual and mutual restriction and mutual coordination working mechanism.
The company will compile all internal control systems into books, issue and publicize the new Manual of Internal control System to
provide guidance and basis for the establishment, operation, supervision, evaluation and maintenance of the internal control system,
and ensure the unity of consciousness and behavior of the internal control system of joint-stock companies.
2. Details of major internal control defects found during the reporting period
Applicable Inapplicable
XIII. Management and control of subsidiaries during the reporting period
Problems
The name of Consolidation Integration of Solution To solve the Follow-up
encountered in
the company plan the progress measures taken progress Solution Plan
integration
None None None None None None None
XIV.Internal control self-evaluation report or internal control audit report
1. Internal control self-evaluation report
Disclosure date of full internal control
2022.04.26
evaluation report
Index of full-text disclosure of internal
http//www.cninfo.com.cn
control evaluation reports
The proportion of total assets of units
included in the evaluation scope to total
100.00%
assets of the company in consolidated
financial statements
The proportion of the operating income of
units included in the evaluation scope to the
100.00%
operating income of the company's
consolidated financial statements
Defect identification standard
category Financial report Non-financial report
The following situations shall be The following situations are identified
identified as major defects of internal as non-major defects of internal
control of financial reporting, and control of financial reporting, and
other situations shall be identified as other situations are identified as major
major defects or general defects defects or general defects according to
The qualitative standard according to the degree of impact. the degree of impact.
(1) Senior management fraud, (1) The enterprise lacks democratic
including financial reporting fraud; decision-making procedure;
Improper use of assets; False revenues, (2) unscientific decision-making
expenses and liabilities; Improper procedures;
acquisition of assets; Tax evasion and (3) Violation of national laws and
36
Wafangdian Bearing Company Limited 2021 Annual Report
high-level fraud; regulations, such as environmental
(2) Restatement of the issued financial pollution;
report for material misstatement to (4) Frequent occurrence of negative
reflect the correction of the wrong media news;
statement, and was punished by the (5) The results of internal control
regulatory authorities for this matter; evaluation, especially major or
(3) Certified public accountants find important defects, have not been
that there is a material misstatement in corrected;
the financial report of the current (6) Lack of institutional control or
period, while internal control fails to systematic failure of important
find the misstatement in the operation business.
process;
(4) The audit committee of the
Company's internal control
supervision of the company's financial
reports is invalid, including the audit
committee is unable to effectively
supervise the internal control of the
company's financial reports or is not
qualified and capable of monitoring
the accuracy of financial reports;
(5) The defect that the total amount of
related transactions exceeds the
amount of related transactions
approved by the general meeting of
shareholders due to the failure of
internal decision-making procedures in
accordance with relevant provisions.
Major defect: direct property loss of Major defects: direct property losses of
more than 10 million yuan; more than 500,000 yuan;
Major defects: direct property loss of 5 Major defect: direct property loss less
Quantitative standard million yuan (inclusive)-10 million than or equal to 500,000 yuan;
yuan; Defects other than major defects and
General defects: less than 5 million major defects shall be identified as
yuan. general defects.
Number of material defects in financial
0
reports (pieces)
Number of non-financial report material
0
defects (PCS)
Number of significant defects in financial
0
reports (pieces)
Number of non-financial report significant
0
defects (PCS)
2. Internal control audit report
Applicable Inapplicable
Review section of internal control audit report
In our opinion, Waxshaft Corporation maintained effective internal control over financial reporting in all material respects as of
December 31, 2021 in accordance with the Basic Practice for Internal Control of Enterprises and relevant provisions.
Disclosure of internal control audit report Disclosure of the
37
Wafangdian Bearing Company Limited 2021 Annual Report
Disclosure date of full internal control audit report April 26, 2022
Index of full-text disclosure of internal control audit reports http//www.zwz-200706.com
Opinion type of internal control audit report Standard without reservation
Whether there are material deficiencies in the non-financial reports no
Whether the accounting firm issues the internal control audit report of non-standard opinion
yes no
Whether the internal control audit report issued by accounting firm is consistent with the self-evaluation report of the board of
directors
yes no
XV. Self-inspection and rectification of problems in the special action of governance of listed
companies
For the problems identified by the company, the company will implement and rectify one by one, and actively rectify the issues that
do not meet the governance requirements of listed companies to avoid future occurrence. For example, the replacement of the
seventh board of directors is postponed. The ninth board of Directors of the company is scheduled to be held in 2022. Since
self-investigation, measures have been taken to rectify the situation where some independent directors are not authorized to attend
meetings in person. By planning the date of regular board meetings in advance, the interim board of directors provides various
channels for independent directors to attend meetings in person by means of on-site communication and other means. The problem
that independent directors cannot work on site due to the epidemic situation will be rectified if the epidemic situation permits. For
controlling shareholders and the listed company common system, common problems such as trademark, because the company is the
first major shareholder, as the state-owned holding company, part of the production workshop and big shareholder in a park, there are
some can't solve problems left over by history, the company strictly in accordance with the charge fee, pay the strict management
rules in the fair principle, maintenance company interests, avoid the indemnification, And do a good job of information disclosure.
38
Wafangdian Bearing Company Limited 2021 Annual Report
Chapter V Environmental and social responsibility
I. Major environmental issues
Whether the listed company and its subsidiaries belong to the key pollutant discharging units announced by the environmental
protection authorities
yes no
Administrative punishment for environmental problems during the reporting period
The impact on the
Corrective
Name of company production and
Penalty reason non-compliance The penalty measures of the
or subsidiary operation of listed
company
companies
None None None None None None
Refer to other environmental information disclosed by key pollutant discharging units
The company conscientiously implemented the ISO14001 environmental management system standards, through the environmental
system internal audit, supervision and audit and external audit, so that the environmental management system effectively run.
Conscientiously carry out the implementation of environmental protection rules and regulations, actively cooperate with superior
departments to carry out environmental protection supervision and management, strengthen the production site environmental
protection self-inspection and self-inspection, strengthen sewage discharge online monitoring, sewage discharge sampling
comparison test and effectiveness audit, effectively control the discharge of pollutants. Strengthening waste recycling and utilization,
standardized disposal of hazardous waste, promoting the construction of enterprise resource recycling. According to the
environmental emergency plan prepared by the company, the fire emergency drill on the fire site was organized, and the operability
of the emergency plan was tested to ensure that the emergency team could work quickly, orderly and efficiently in accordance with
the emergency plan procedures.
Measures and effects taken to reduce carbon emissions during the reporting period
Applicable Inapplicable
Carbon peak and carbon neutrality is a major strategic decision made by the CPC Central Committee based on the overall situation at
home and abroad, and based on its responsibility to promote the building of a community with a shared future for mankind and the
inherent requirements for sustainable development. Tile shaft stock company, also shoulder the "double carbon" task.
1. Strengthening energy infrastructure management
Improve the energy management system. Deepen management and control + service management mode.
Second, vigorously implement energy conservation measures
Green lighting Project (new equipment)
Company in accordance with the catalog of national key energy saving low carbon technology popularization request to industrial
and mining lamp of the existing 7500 plant, the new type LED energy-saving industrial and mining lamp replacement, so far 2115
finished lights LED energy-saving lamps and lanterns, replacement, plan to complete all 2030 years ago a new type of energy-saving
LED light industrial and mining lamp replacement, To reduce carbon emissions.
Recycling of waste oil and liquid (new technology)
Cooperate with enterprises with environmental protection qualification, reuse waste oil and waste liquid with new technology, reduce
carbon emission and reduce oil purchase and waste oil and liquid environmental treatment cost.
The new technology uses molecular specific gravity separation, neutral polymer material adsorption and other means to recycle and
39
Wafangdian Bearing Company Limited 2021 Annual Report
purify waste oil and liquid, realizing oil recycling and reducing carbon emissions by 998 tons per year.
Optimization and deployment of power transformation and distribution facilities
Transformer scientific deployment. To achieve the purpose of reducing transformer capacity, improving transformer efficiency and
reducing carbon emissions, reduce carbon emissions by 200 tons.
Fourth, adjust the energy structure and improve the utilization rate of clean energy
In 2021, according to the requirements of the electricity market trading countries issued by relevant, choose to have qualification,
have certain ability to resist risk of the cooperation unit, the "thermal power + clean energy + cross-regional" new organization
involved in electricity market mode power trading, trading 10 million KWH wind power, a breakthrough in the company to clean
energy "0", At the same time to ensure the company's electricity safety and stability.
Reasons for failure to disclose other environmental information
None
II. Social responsibility
In 2021, the company earnestly fulfills due social responsibilities. While pursuing economic benefits of the company, it actively
undertakes the responsibilities for the overall development of the country and society, natural environment and resources, as well as
stakeholders such as shareholders, employees, customers, consumers, suppliers and communities, and realizes the social value of the
company. It better realizes the win-win cooperation between the state, society and stakeholders, strengthens environmental protection,
improves resource efficiency, influences and drives the development of local economy through project construction and effectively
promotes the coordinated development between the company and society, nature and other stakeholders.
In strict accordance with relevant national and local laws and regulations and document requirements, the company has handled
endowment insurance, unemployment insurance, medical insurance, work-related injury insurance, maternity insurance, housing
accumulation fund and large medical mutual aid insurance for employees. Provide timely assistance to employees in need. We have
established and improved the employment system, including the salary system and incentive mechanism, to ensure that employees
enjoy their labor rights and fulfill their labor obligations in accordance with the law. Establish and improve the labor safety and
health system, strictly implements national labor safety and health regulations and standards, undertake to the worker labor safety and
hygiene education, occupational protection and health checks for the worker to provide healthy and safe working environment and
living environment, maximum limit to prevent accidents during work and reduce occupational hazards.
In business activities, the company adheres to the principle of voluntariness, fairness, equal compensation, honesty and credit, strictly
controls the quality target, and guarantees to provide qualified products. The technical department of the company actively develops
new products and new materials. The company guarantees that all products or services provided by the company meet the relevant
national quality standards or have been certified by the relevant national quality inspection department, and actively applies for all
kinds of third-party certification at home and abroad. The company focuses on customer service and properly handles complaints and
suggestions from customers and consumers. Strictly review the third-party qualifications of suppliers and conduct on-site inspections,
select qualified suppliers, carefully understand the needs of suppliers, and actively build a good cooperation atmosphere.
III. Consolidating and expanding poverty alleviation efforts and rural revitalization
As a large state-owned enterprise, Wazhou Group, the largest shareholder of the company, accepts the unified leadership of poverty
alleviation work from the governments of Liaoning Province, Dalian City and Wafangdian City, and the company accepts the
leadership of poverty alleviation work from Waaxuan Group. Considering the characteristics of the enterprise and the actual situation
of "state-owned" enterprises, the poverty alleviation work of the company is carried out in accordance with the unified deployment of
the provincial Party Committee and the Municipal Committee of the CPC, in cooperation with the major shareholder Wazhou Group,
so as to jointly establish a unified social responsibility image of "Wazhou people".
In recent years, it has sent village cadres to the surrounding areas of Dalian, with three grassroots cadres serving as the first secretary
to support rural construction and assume social responsibilities. In 2021, it invested 30,000 yuan to visit 60 families in Longhe
40
Wafangdian Bearing Company Limited 2021 Annual Report
Village, including five guarantee families, basic living allowance families, special and difficult families due to illness and difficult
Party members. Coordinate with the superior government to strive for 600,000 yuan of poverty alleviation funds for Longhe Village,
develop the sea cucumber industrial breeding project, and increase the village collective income 50,000 yuan per year; Cooperated
with Dalian Rural Commercial Bank to solve the problem of farmers' loan credit, longhe Village entered the first batch of "whole
village credit" demonstration villages; Organizing the two village committees to raise funds of 100,000 yuan to repair "Lashan Road"
and "Field operation Road" for 12 kilometers; Organized longhe Village "Beibei Pumpkin", "Starry Sky Orange", "Tuo Shan apple"
and other self-owned brands, participated in the 12th Dalian Agricultural Fair, Wafangdian Agricultural Fair and the second China
Youth Festival of Goods in Liaoning special live broadcast activities.
Under the leadership of the first secretary of Datian Village, to carry out the renovation of the village appearance, do a good job of
publicity and supervision, and according to the stock of garbage points, timely organization to clean up the garbage points. In view of
the frequent heavy rainfall, in order to protect the safety of villagers' lives and property, according to the warning from the superior,
the hidden dangers of power supply lines should be checked in advance, members of the two committees should be organized on duty
to pay close attention to the rain situation, inspect key areas, close dangerous road sections, move people in time, and do a good job
in the investigation, filing and reporting of the disaster situation. Coordinate insurance company to plant grain big household
disaster-hit situation undertakes spot investigation, utmost reduce loss.
Work in combating COVID - 19 outbreak, residency, first secretary of the organization will two committees set up defense spreading
into working groups, to mobilize epidemic prevention, and according to the demand of the parent work by hanging banners, Posting
notices, WeChat mass forms such as increasing the epidemic prevention and control publicity, improve the prevention and control
measures, through the WeChat working group and written form, standardize management of the personnel register put on record,
Effectively control the epidemic and play a better role.
41
Wafangdian Bearing Company Limited 2021 Annual Report
Chapter VI Important items
I. Performance of commitments
1. Commitments made by the company's actual controller, shareholders, related parties, acquirer and related parties committed by the
Company have been fulfilled during the reporting period or have not been fulfilled by the end of the reporting period
Applicable Inapplicable
During the reporting period, the company does not have commitments that have been fulfilled by the actual controller, shareholders,
related parties, acquirers, the company and other committed parties within the reporting period or have not been fulfilled by the end
of the reporting period.
2. If there is a profit forecast for the assets or projects of the company and the reporting period is still in the profit
forecast period, the company shall explain why the assets or projects meet the original profit forecast
Applicable Inapplicable
II.Non-operational appropriation of funds by controlling shareholders and other related
parties to the listed company
Applicable Inapplicable
During the reporting period, there is no non-operational appropriation of funds by controlling shareholders and other related parties
to the listed company.
III. Violation of external guarantee
Applicable Inapplicable
The company has no violation of external guarantee during the reporting period.
IV. Explanation of the Board of Directors on the latest "Non-standard audit Report"
Applicable Inapplicable
V. Comments of the board of directors, board of supervisors and independent directors (if
any) on the "non-standard audit report" of the accounting firm during this reporting period
Ming
Applicable Inapplicable
Vi. Explanation of changes in accounting policies and estimates or corrections of major
accounting errors as compared with the financial report of the previous year
Applicable Inapplicable
Changes in accounting policies: On December 13, 2018, the Ministry of Finance issued the revised Accounting Standards for
Business Enterprises No. 21 -- Leasing (Accounting and Accounting [2018] No. 35), requiring enterprises that are listed both at home
and abroad and enterprises that are listed overseas and adopt INTERNATIONAL Financial Reporting Standards or Accounting
standards for Business Enterprises to prepare financial statements. Effective from January 1, 2019; The accounting standards for
other enterprises shall come into force as of January 1, 2021. In accordance with the above notice and the provisions and
requirements of accounting standards for Business Enterprises, the company will make corresponding changes to the original
42
Wafangdian Bearing Company Limited 2021 Annual Report
accounting policy starting from January 1, 2021.
Accounting estimate change: in accordance with the accounting Standards for Enterprises No. 28 - Accounting policy, Accounting
estimate change and Error Correction, in order to more accurately measure the financial instruments in the follow-up receivables, in
line with the principle of prudent operation, effectively prevent operational risks, and strive for accurate financial accounting. By
comparing with similar listed companies, our company has a low proportion of old age combination of bad debt provision for
receivables. In addition, the "aging migration rate" and "expected credit loss rate" are calculated according to the historical data of
"overdue days", and the ratio of bad debt provision based on the combination of aging accounts receivable of our company needs to
be improved. Therefore, in accordance with the Accounting Standards for Business Enterprises and in combination with the actual
situation of the company, the company changes the accounting estimate of receivables. The accounting estimate will be implemented
from October 2021. According to the relevant provisions of the accounting standards for enterprises, the change of accounting
estimates will adopt the future applicable method for corresponding accounting treatment, without retroactive adjustment of the
previous year, and will not affect the financial statements disclosed by the company.
Vii. Explanation of changes in the scope of consolidated statements as compared with the
financial statements of the previous year
Applicable Inapplicable
There is no change in the scope of consolidated statements during the reporting period.
Viii.Employment and dismissal of accounting firms
Now employed accounting firm
Shine Wing Certified Public Accountants (Special
Name of domestic accounting firm
General Partnership)
Remuneration of domestic accounting firm (ten thousand yuan) 53
The number of consecutive years of audit services provided by
17
domestic accounting firms
Name of certified public accountant of domestic accounting firm Lin li Zhang Shizhuo
The number of consecutive years of audit services provided by
1、3
certified public accountants of domestic accounting firms
Whether to hire an accounting firm for the current period
yes no
Internal control of audit and accounting firms, financial consultants or sponsors
Applicable Inapplicable
Ix. Delisting after the disclosure of the annual report
Applicable Inapplicable
X. Matters related to bankruptcy reorganization
Applicable Inapplicable
No bankruptcy reorganization related matters occurred during the reporting period.
Xi. Major litigation and arbitration matters
Applicable Inapplicable
Litigation Amount Whether an Progress Litigation Execution of Date of Disclosure
(arbitration) basic involved estimated of (arbitration) litigation disclosure index
43
Wafangdian Bearing Company Limited 2021 Annual Report
information (Ten liability is litigation adjudication (arbitration)
thousand formed (arbitratio result and judgments
yuan) n) influence
Summary of other
litigation matters
that fail to meet progressi
217 none Inapplicable Inapplicable
the disclosure ng
standards for
major litigation
Xii.Punishment and rectification
Applicable Inapplicable
There is no punishment or rectification during the reporting period.
Xiii.The good faith of the company and its controlling shareholders and actual controllers
Applicable Inapplicable
Xiv. Major related Party Transactions Applicable Inapplicable
1. Related party transactions related to daily operations
Applicable Inapplicable
No related transactions related to daily operations occurred during the reporting period.
2. Related transactions arising from asset or equity acquisition or sale
Applicable Inapplicable
No related transaction of asset or equity acquisition or sale occurred during the reporting period.
3. Related party transactions of joint overseas investment
Applicable Inapplicable
During the reporting period, there was no related transaction of joint overseas investment.
4. Transactions of related claims and debts
Applicable Inapplicable
There is no related creditor's rights and debts in the reporting period.
5. Contacts with related financial companies
Applicable Inapplicable
There is no deposit, loan, credit granting or other financial business between the company and the related financial company and the
related party.
6. Contacts between the financial company controlled by the company and its related parties
Applicable Inapplicable
There is no deposit, loan, credit granting or other financial business between the financial company controlled by the company and its
related parties.
7. Other major related party transactions
Applicable Inapplicable
For the daily related party transactions, please refer to "Wafangdian Bearing Co., LTD. 's Expected Daily Related Party Transactions
in 2022" disclosed by the company on Juchao Information network on April 26, 2022 and "Related Party and Related Party
Transactions" (5) "Related Party Transactions" in Section 10, Part 12 of this report.
44
Wafangdian Bearing Company Limited 2021 Annual Report
Relevant enquiries on the disclosure website of interim report of major related transactions
Provisional announcement date Temporary notice to disclose the name of
Name of Provisional Notice
of disclosure the website
Notice on the sale of automobile bearing
March 11, 2021 http//www.cninfo.com.cn
plant and related transactions
Notice on Asset Purchase and Related Party
April 27, 2021 http//www.cninfo.com.cn
Transactions (Real Estate)
Announcement on Asset Purchase and
August 24, 2021 http//www.cninfo.com.cn
Related Party Transactions (Equipment)
XV.Major contracts and their performance
1. Trusteeship, contracting and leasing
(1) Custody
Applicable Inapplicable
There is no custody during the reporting period.
(2) Contracting situation
Applicable Inapplicable
There is no contracting during the reporting period.
(3) Lease situation
Applicable Inapplicable
Lease Information
All leases of the company are associated leases. For details, please refer to the notes.
Projects that bring profit and loss for the company to reach more than 10% of the total profit of the company during the reporting
period
Applicable Inapplicable
During the reporting period, there is no leasing project whose profit and loss of the company reaches more than 10% of the total
profit of the company during the reporting period.
2. Major Guarantee
Applicable Inapplicable
There is no material guarantee during the reporting period.
3. Cash asset management by entrusting others
(1) Entrusted financial management
Applicable Inapplicable
There is no entrusted financial management during the reporting period.
(2) Entrusted loans
Applicable Inapplicable
There is no entrusted loan during the reporting period.
4. Other major contracts
Applicable Inapplicable
There are no other major contracts during the reporting period.
45
Wafangdian Bearing Company Limited 2021 Annual Report
XVI.Explanation of other important matters
Applicable Inapplicable
There is no other major event that needs to be explained during the reporting period.
Xvii. Major events of the company's subsidiaries
Applicable Inapplicable
Chapter VII Share changes and shareholders
I. Changes in shares
1. Changes in shares
Unit：stocks
Prior to this change This change is more or less (+, -) After this change
Convers
Issuing
Send ion of
number ratio new other total number ratio
shares provide
shares
nt fund
I.Unlisted and tradable 244,000,0 244,000
60.61% 60.61%
shares 00 ,000
244,000,0 244,000
1. Shares of sponsors 60.61% 60.61%
00 ,000
Among them: the state 244,000,0 244,000
60.61% 60.61%
holds shares 00 ,000
Domestic legal persons
hold shares
Overseas legal persons
hold shares
other
2. Raise corporate
shares
3. Internal work unit
4. Preferred stock or
otherwise
II.Shares already listed 158,600,0 158,600
39.39% 39.39%
and circulating 00 ,000
1. Renminbi common
stock
2. Domestically listed 158,600,0 158,600
39.39% 39.39%
foreign capital stocks 00 ,000
46
Wafangdian Bearing Company Limited 2021 Annual Report
3. Foreign capital stocks
listed abroad
4, other
III.Total number of 402,600,0 100.00 402,600 100.00
shares 00 % ,000 %
Reasons for changes in shares
Applicable Inapplicable
Approval of changes in shares
Applicable Inapplicable
Transfer of shares
Applicable Inapplicable
The impact of share changes on basic and diluted earnings per share, net asset per share attributable to common shareholders of the
company and other financial indicators in the latest year and the latest period
Applicable Inapplicable
Other contents that the company deems necessary or required by the securities regulatory authority
Applicable Inapplicable
2. Changes in the shares limited for sale
Applicable Inapplicable
II. Securities issuance and listing
1. Securities issuance (excluding preferred stock) during the reporting period
□ Applicable Inapplicable
2. Description of the changes in the total number of shares and the structure of shareholders, and the structure of assets and
liabilities of the company
□ Applicable Inapplicable
3. Existing internal job shares
□ Applicable Inapplicable
III. Shareholders and Actual Controlling Shareholder
1. Number of Shareholders and Shares
Unit: Share
Total common 5,695 Total common 5,896 Total preference shareholders 0 Total preference shareholders with 0
shareholders in shareholders at the with the voting power the voting power not recovered at
the reporting end of the month recovered at the end of the the end of the month before the day
period before the date of reporting period (if any)(See of disclosing the annual report(if
disclosing the Note 8) any)(See Note 8)
annual report
Shares held by the shareholders holding over 5% shares or the top ten shareholders
The The number Pledge or freeze
Number of
number The number of of
holdings at Changes in
Shareholder Nature of the of shares unlisted outstanding The
the end of the reporting Shares
names shareholders in outstanding shares shares held number
reporting period in state
proportio held on the of
period
n market
47
Wafangdian Bearing Company Limited 2021 Annual Report
Wafangdian 244,000,00
State-owned
Bearing Group 60.61% 244,000,000
shareholder 0
Corporation
AKTIEBOLAGE Foreign
19.70% 79,300,000 79,300,000
T SKF shareholder
China merchants
State-owned
securities Hong 1.99% 8,010,391 8,010,391
shareholder
Kong limited
Domestic
Huang Junyue 1.74% 7,025,268 7,025,268
shareholder
Domestic
Hu Xiaofeng 0.47% 1,879,277 1,879,277
shareholder
BOCI
Foreign
SECURITIES 0.33% 1,310,000 1,310,000
shareholder
LIMITED
GUOTAI JUNAN
SECURITIES(H Foreign
0.22% 884,511 884,511
ONGKONG) shareholder
LIMITED
Domestic
Meng Qingliang 0.21% 846,748 846,748
shareholder
Domestic
Jin Yunhua 0.19% 750,000 750,000
shareholder
MAN,KWAI Domestic
0.18% 713,101 713,101
WING 文贵荣 shareholder
Where a strategic investor or general
legal person becomes a top 10
none
shareholder as a result of the placement
of new shares (if any) (see Note 3)
Among the top ten shareholders of the company, there is no correlation relationship or concerted
action between the largest shareholder and other shareholders, or between the top ten shareholders of
A description of such shareholder
tradable shares, while the correlation relationship and concerted action between other shareholders,
association or concerted action
between the top ten shareholders of tradable shares, or between the top ten shareholders of tradable
shares and other shareholders are unknown.
Explanation of the aforesaid
shareholders' involvement in
none
entrustment /fiduciary voting rights and
abandonment of voting rights
Special notes for the repo account
among the top 10 shareholders (see none
Note 10)
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held Share type
Shareholder’s Name
at the end of there porting period Share type Quantity
AKTIEBOLAGET SKF 79,300,000 B-shares 79,300,000
China merchants securities Hong Kong limited 8,010,391 B-shares 8,010,391
Huang Junyue 7,025,268 B-shares 7,025,268
Hu Xiaofeng 1,879,277 B-shares 1,879,277
BOCI SECURITIES LIMITED 1,310,000 B-shares 1,310,000
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 884,511 B-shares 884,511
Meng Qingliang 846,748 B-shares 846,748
48
Wafangdian Bearing Company Limited 2021 Annual Report
Jin Yunhua 750,000 B-shares 750,000
MAN,KWAI WING 文贵荣 713,101 B-shares 713,101
Jiang Guangsen 639,300 B-shares 639,300
Explanation to the associated relationship or consistent action There was no relationship and consistent activities between the first big
among the top 10 shareholders of non-restricted negotiable shareholder and other shareholders or the top ten common stock holders;
shares and that between the top 10 The relationship among other shareholders, top ten circulation
shareholders of non-restricted negotiable shares and top 10 shareholders, top ten circulation shareholders and other shareholders was
shareholders. not clear.
Description of Top 10 Common Shareholders' Participation in
none
Margin and Short Selling Business (if any) (see Note 4)
Whether the top 10 common shareholders of the company and the top 10 common shareholders of the company with unlimited
conditions of sale shall carry out the agreed repurchase transaction during the reporting period
□ Yes No
2. Controlling Shareholder
Nature of the controlling shareholder: State-owned holding directly under the Dalian government
Type of the controlling shareholder: corporate Legal Person
Legal Date
Name of the Controlling Represen of Organization
Main Business
Shareholder tative/Le incorp code
ader oration
Bearing, bearing spare parts, bearing special tools, tooling,
equipment, mechanical equipment, abrasives, abrasives,
casting, auto parts, locomotive parts and related industrial
Wafangdian Bearing 1995.1 91210200242
Liu Jun products manufacturing and sales; Bearing design, repair,
Group Corporation 0.22 386663D
maintenance and technical services; Procurement and sales
of bearing raw materials and auxiliary materials; House
leasing and equipment leasing.
The shareholding of the
controlling shareholder of
other listed companies at none
home and abroad during
the reporting period
Change of Controlling Shareholder in the Report Period
□ Applicable Inapplicable
3. Actual Controller
Nature of the actual controller: State-owned assets regulatory agency directly under the Dalian government
Type of the actual controller: corporate
Legal Organization Register
Name of the actual controller Establishing Date
Representative Code Capital
On behalf of the people's government of Dalian, the
Dalian Municipal Government
people's government shall perform the functions and
State-owned Assets Supervising Mei Wei 2004.09.30 No
responsibilities of the state-owned assets, and supervise
and Managing committee
and administer the state-owned assets.
Equity in other domestic and Other domestic and foreign listed companies controlled by the actual controller during the reporting period
49
Wafangdian Bearing Company Limited 2021 Annual Report
foreign listed companies held by include: Dalian Heavy Industry (002204), Dalian Thermoelectric (600719)
the actual controller by means of
control and mutual shareholding
in the reporting period
Actual controller changes during the reporting period
Applicable Inapplicable
The actual controller of the company has not changed during the reporting period.
A block diagram of the property rights and control relationship between the company and the actual controller
Actual Controller controlled the Company by trust or other asset management method.
□ Applicable Inapplicable
4. The total amount of shares pledged by the controlling shareholder or the largest shareholder and the
person acting in concert accounts for 80% of the company's shares held by them
Applicable Inapplicable
5.Other shareholders with more than 10% shares
Applicable Inapplicable
Date of
Name Legal Representative Capital Main Business
establishment
Bearings, seals and relative
AKTIEBOLAGET SKF Alrik Danielson 1907.01.01 1,138,000，000(SKR)
products, and relative services
6. Shareholding Reduction Restriction on the Controlling Shareholder, the Actual Controller, the Reorganizing Party and
other Commiting Party
□ Applicable Inapplicable
Iv. Specific implementation of share repurchase during the reporting period
The implementation progress of share repurchase
Applicable Inapplicable
50
Wafangdian Bearing Company Limited 2021 Annual Report
The implementation progress of reducing repurchased shares by means of centralized bidding
Applicable Inapplicable
Chapter ⅦI. About the Preferred Shares
□ Applicable Inapplicable
Chapter IX. Related information of convertible bonds
□ Applicable Inapplicable
Chapter X Financial report
I.Financial report
Types of Audit opinions Standard unqualified opinion
Date of audit report signing 22 April 2022
Shine Wing Certified Public Accountants (Special General
Name of audit institution
Partnership)
Audit report number XYZH/2022DLAA20154
Name of CPA Lin Li Zhang Shizhuo
Auditor’s Report
To the shareholders of Wafangdian Bearing Company Limited
1. Opinion
We have audited the financial statements of Wafangdian Bearing Company Limited ( “ Wafangdian Bearing Company ” ), which
comprise the consolidated as well as the Company ’ s balance sheet as at 31 December 2021, the consolidated as well as the
Company’ income statement, cash flow statement and statement of changes in shareholders’equity for the year then ended, and the
related notes to the financial statements.
In our opinion, the accompanying financial statements of Wafangdian Bearing Company present fairly, in all material respects, the
Company ’ s and the consolidated financial position as at 31 December 2021, the Company ’ s and the consolidated results of
operations and cash flows for the year then ended in accordance with Accounting Standards for Business Enterprises.
2. Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing for Chinese Certified Public Accountants. Our
responsibilities under those standards are further described in the “ Auditor ’ s Responsibilities for the Audit of the Financial
Statements” section of our report. We are independent of Wafangdian Bearing Company in accordance with the Code of Ethics for
Chinese Certified Public Accountants, and we have fulfilled our other ethical responsibilities of the code. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit.
3. Key Audit Matters
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Wafangdian Bearing Company Limited 2021 Annual Report
Key audit matters are those matters that we consider, in our professional judgment, were of most significance in our audit of the
financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a
whole and, in forming our audit opinion thereon, and we do not express a separate opinion on these matters.
1. Inventory impairment
Key audit matter How the matter was addressed in the audit
Up to December 31st, 2021, as described in the The main audit procedures carried out for addressing the key
Note VI, 8 closing balance of inventory is audit matters are as follows:
870.31 million Yuan, provision for inventory 1. Assess the design of internal control over purchase and
payment to ensure whether it is performed effectively,
impairment is 159.70 million Yuan, provision
identify significant control deficit and test its effectiveness
for impairment increased by 144.23 million
of performance.
Yuan, which is the key factor to the gross profit
2. Together with supervision of stock taking, inspect the
and significantly affect the financial statements.
inventory’ s physical condition to understand whether the
Therefore, we identify the provision for condition is normal.
inventory impairment as the key audit matter. 3. Review the provision recognition basis and whether is
consistent with prior period.
4. In accordance with lower of NRV and cost method, evaluate
the documents, assumption and accrual method for
provision, and examine whether the NRV is based on the
conclusive evidence and ensure its reasonableness.
5. Consider the principle of NRV recognition, review whether
the calculation is correct( adequate but not excessive)
6. Examine the change of provision accrued previously during
the year, examine the impairment provision reverse
calculation and review accounting whether is reconciled to
the accounts in the income statement.
2. Revenue recognition
Key audit matter How the matter was addressed in the audit
As described in the Note VI,33, revenue of The main audit procedures carried out for addressing the key
Wafangdian Bearing Company in 2021 is audit matters are as follows:
2066.08 million Yuan. Revenue of bearing sales 1. Understand and evaluate effectiveness of design and
operation of the management ‘s internal control over revenue
and profit has significant effect on the Company.
2. Carried out analytical review and evaluate the
Revenue recognition depends on whether
reasonableness of sales income and gross profit margin of
appropriate evaluation is made to whether the
Wafangdian Bearing Company.
sales risk and rewards transfer conditions are in
3. Sampling test the sales contracts, evaluate the consistency
conformity with the terms regulated in the sales
between the contract price and actual settlement price.
contract. Due to the complexity of the
4. Sampling select product sales revenue record, reconcile to
52
Wafangdian Bearing Company Limited 2021 Annual Report
commercial contract, significant judgment needs sales invoice, contracts, dispatch note, acceptance note and
to be made, therefore, we recognized revenue evaluate the recognition of revenue whether is in line with the
accounting standards applicable to Wafangdian Bearing
recognition as key audit matters.
Company.
5. Select key clients for confirmation letter so to ensure the
accuracy and authenticity.
6. Sampling select the transactions before and after the
balance sheet date, test the dispatch note and other supporting
documents so to ensure whether the transaction is recorded into
the appropriate accounting period.
4. Other Information
The management of Wafangdian Bearing Company(hereinafter referred to as the “ Management ” ) is responsible for the other
information. The other information comprises the information included in the Wafangdian Bearing Company2021 annual report, but
does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required
to report that fact. We have nothing to report in this regard.
5. Responsibilities of the Management and Those Charged with Governance for the Financial Statements
The Management is responsible for the preparation of the financial statements in accordance with Accounting Standards for Business
Enterprises to achieve fair presentation; and designing, implementing and maintaining internal control which is necessary to enable
that the financial statements are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Management is responsible for assessing Wafangdian Bearing Company ’ s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the Management either intends to liquidate Wafangdian Bearing Company or to cease operations, or have no
realistic alternative but to do so.
Those charged with governance are responsible to overseeing Wafangdian Bearing Company’s financial reporting process.
6. Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with auditing standards will always detect a
53
Wafangdian Bearing Company Limited 2021 Annual Report
material misstatement when it exists. Misstatements can arise from fraud or error and are generally considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
During the course of audit in accordance with auditing standards, we exercise professional judgment and maintain professional
skepticism. We also carry out the following works:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our audit. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of its internal control.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the Management.
(4) Conclude on the appropriateness of the Management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
Wafangdian Bearing Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial statements in accordance with the auditing
standards or, if such disclosures are inadequate, we shall modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause Wafangdian Bearing Company to
cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and also whether the financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient and appropriate audit evidence of financial information from Wafangdian Bearing Company and express our
opinion. We are responsible for directing, monitoring and implementing the group audit and take full responsibility for audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings etc., including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with those relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on
our independence and related safeguards, where applicable.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in
the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation prohibited public disclosure about the matter or when, in rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
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Wafangdian Bearing Company Limited 2021 Annual Report
II. Financial statements
The unit of the statements in the financial notes is: yuan
1. Consolidate balance sheets
Compiled by: Wafangdian Bearing Co., LTD22 April 2022
Unit：yuan
Item December 31, 2021 31 December 2020
Current assets:
Monetary fund 286,476,701.69 194,152,280.08
Settlement of provisions
Lending money,
Trading financial assets 322,037.93 228,046.00
Derivative financial asset
Notes receivable 507,971,133.69 416,044,578.48
Accounts receivable 999,454,308.40 975,628,091.12
Receivables financing 28,115,340.20 130,600,545.59
prepayments 46,305,700.50 53,772,465.49
Premiums receivable
Reinsurance accounts receivable
Reserve for reinsurance contracts receivable
Other accounts receivable 9,531,860.12 14,204,144.25
Among them: interest receivable
Dividends receivable
Purchase and resell financial assets
inventory 710,611,964.20 615,656,946.30
Contract assets 3,763,781.55
Holding assets for sale
Non-current assets that mature within one year
Other current assets 5,627,951.08 24,610,448.93
Total current assets 2,598,180,779.36 2,424,897,546.24
Non-current assets:
Disburse loans and advances
Creditor's rights investment
Other debt investments
Long-term receivables
Long-term equity investment
55
Wafangdian Bearing Company Limited 2021 Annual Report
Other equity instrument investments 11,926,856.64 11,926,856.64
Other non-current financial assets
Investment real estate 68,862,311.38 117,516,482.39
Fixed assets 438,220,714.18 474,109,923.22
Projects under construction 25,929,699.29 24,254,985.16
Productive biological assets
Oil and gas assets
Right assets
Intangible assets 76,812,955.92 80,725,861.18
The development of spending
goodwill
Long-term deferred expenses 192,788.24 511,188.11
Deferred income tax assets
Other non-current assets
Total non-current assets 621,945,325.65 709,045,296.70
Total assets 3,220,126,105.01 3,133,942,842.94
Current liabilities:
Short-term borrowing 677,000,000.00 670,000,000.00
Borrowing from the central bank
Funds borrowed from
Transactional financial liabilities
Derivative financial liability
Notes payable 306,258,189.60 274,654,535.65
Accounts payable 1,248,850,328.84 1,044,801,896.85
Advance payment 0.00 0.00
Contract liability 38,426,632.29 39,456,304.55
Selling repo financial assets
Taking deposits and interbank deposits
Buying and selling securities
Acting as an underwriter of securities
Employee compensation payable 54,396,857.78 52,677,141.09
Payable taxes 11,585,889.46 3,688,168.68
Other payables 173,782,184.85 129,476,061.47
Including: interest payable 0.00 1,041,600.00
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Wafangdian Bearing Company Limited 2021 Annual Report
Dividends payable
Fees and commissions payable
Reinsurance accounts payable
Holding liabilities for sale
Non-current liabilities that mature within one year
Other current liabilities 4,995,462.19 5,129,319.58
Total current liabilities 2,515,295,545.01 2,219,883,427.87
Non-current liabilities:
Insurance contract reserve
Long-term borrowing
Bonds payable
Among them: preferred stock
Sustainable debt
Lease liability
Long-term payables 344,974.84 344,974.84
Long-term employee compensation payable
Estimated debts 41,401,450.14 39,032,270.91
Deferred revenue 54,133,616.10 59,942,753.08
Deferred income tax liabilities 683,236.45 734,448.35
Other non-current liabilities
Total non-current liabilities 96,563,277.53 100,054,447.18
Total liabilities 2,611,858,822.54 2,319,937,875.05
Owner's equity:
equity 402,600,000.00 402,600,000.00
Other equity instruments
Among them: preferred stock
Sustainable debt
Capital reserves 485,691,050.47 485,691,050.47
Minus: Inventory stocks
Other comprehensive income
The special reserve
Surplus reserves 136,770,391.01 136,770,391.01
General Risk preparedness
Undistributed profit -416,794,159.01 -211,056,473.59
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Wafangdian Bearing Company Limited 2021 Annual Report
Total owner's equity attributable to parent company 608,267,282.47 814,004,967.89
Minority equity
Total owner's equity 608,267,282.47 814,004,967.89
Total liabilities and equity 3,220,126,105.01 3,133,942,842.94
Chairman: Liu Jun General Accountant : Sun Najuan Accounting charger: Zhang Yajing
2. Balance Sheet Of Parent Company
Unit:yuan
Item December 31, 2021 31 December 2020
Current assets:
Monetary fund 266,391,019.57 173,606,464.84
Trading financial assets 322,037.93 228,046.00
Derivative financial asset
Notes receivable 384,127,628.21 325,928,761.07
Accounts receivable 989,131,349.43 1,051,197,353.63
Receivables financing 25,846,597.90 125,606,963.37
prepayments 45,293,827.24 52,961,548.88
Other accounts receivable 216,805,848.85 13,357,080.42
Among them: interest receivable
Dividends receivable 11,843,105.36 0.00
inventory 432,948,513.08 472,723,348.67
Contract assets 3,763,781.55
Holding assets for sale
Non-current assets that mature within one year
Other current assets 5,578,651.12 17,971,682.31
Total current assets 2,370,209,254.88 2,233,581,249.19
Non-current assets:
Creditor's rights investment
Other debt investments
Long-term receivables
Long-term equity investment 221,583,897.67 211,583,897.67
Other equity instrument investments 11,926,856.64 11,926,856.64
Other non-current financial assets
Investment real estate 62,467,475.43 103,505,103.77
Fixed assets 281,860,555.75 309,847,783.81
Projects under construction 16,015,536.23 21,933,710.72
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Wafangdian Bearing Company Limited 2021 Annual Report
Productive biological assets
Oil and gas assets
Right assets
Intangible assets 60,997,429.59 64,192,377.21
The development of spending
goodwill
Long-term deferred expenses 169,515.71 432,059.78
Deferred income tax assets
Other non-current assets
Total non-current assets 655,021,267.02 723,421,789.60
Total assets 3,025,230,521.90 2,957,003,038.79
Current liabilities:
Short-term borrowing 677,000,000.00 670,000,000.00
Transactional financial liabilities
Derivative financial liability
Notes payable 306,258,189.60 274,654,535.65
Accounts payable 998,237,900.39 845,753,616.99
Advance payment 0.00 0.00
Contract liability 38,079,613.90 40,196,130.87
Employee compensation payable 44,664,395.47 43,148,413.71
Payable taxes 6,197,641.73 3,395,991.46
Other payables 154,405,674.18 109,599,140.08
Including: interest payable 0.00 1,041,600.00
Dividends payable
Holding liabilities for sale
Non-current liabilities that mature within one year
Other current liabilities 4,950,349.81 5,225,497.00
Total current liabilities 2,229,793,765.08 1,991,973,325.76
Non-current liabilities:
Long-term borrowing
Bonds payable
Among them: preferred stock
Sustainable debt
Lease liability
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Wafangdian Bearing Company Limited 2021 Annual Report
Long-term payables 244,974.84 244,974.84
Long-term employee compensation payable
Estimated debts 41,385,028.44 39,032,270.91
Deferred revenue 24,622,470.31 29,380,833.70
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 66,252,473.59 68,658,079.45
Total liabilities 2,296,046,238.67 2,060,631,405.21
Owner's equity:
equity 402,600,000.00 402,600,000.00
Other equity instruments
Among them: preferred stock
Sustainable debt
Capital reserves 485,678,443.26 485,678,443.26
Minus: Inventory stocks
Other comprehensive income
The special reserve
Surplus reserves 136,770,391.01 136,770,391.01
Undistributed profit -295,864,551.04 -128,677,200.69
Total owner's equity 729,184,283.23 896,371,633.58
Total liabilities and equity 3,025,230,521.90 2,957,003,038.79
3. Consolidated income statement
Unit:yuan
Item The year in 2021 The year in 2020
I. Total operating revenue 2,318,704,350.35 1,859,176,415.58
Including: operating income 2,318,704,350.35 1,859,176,415.58
Interest income
The premium has been made
Fees and commissions
Second, total operating cost 2,406,579,255.41 1,957,945,739.22
Including: operating costs 1,854,514,367.12 1,367,683,304.88
The interest payments
Fees and commissions
Surrender gold
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Wafangdian Bearing Company Limited 2021 Annual Report
Net compensation expenditure
Draw net reserves for insurance liability contracts
Policy bonus payout
Reinsurance expenses
Taxes and surcharges 14,765,719.51 15,109,365.51
Cost of sales 172,118,808.99 210,217,418.49
Management fees 109,978,729.45 93,959,959.13
Research and development costs 215,803,912.39 227,548,185.54
Finance charges 39,397,717.95 43,427,505.67
Including: interest expense 36,648,536.99 36,840,257.54
Interest income 425,918.49 1,106,147.24
Plus: Other income 8,117,365.44 9,520,190.48
Investment income (loss marked with "-") 2,327,743.95 1,230,774.07
Among them: income from investment in joint ventures and joint ventures
Financial assets measured at amortized cost cease to recognize earnings
Exchange gain (loss marked with "-")
Net exposure hedging gain (loss marked with "-")
Gain from change in fair value (loss marked with "-") 93,991.93 -57,011.50
Credit impairment loss (loss marked with "-") -59,114,404.38 -22,443,182.09
Asset impairment loss (loss marked with "-") -74,369,791.08 -272,535,475.00
Income from asset disposal (loss marked with "-") 3,565,883.04 939,292.08
Iii. Operating profit (loss marked with "-") -207,254,116.16 -382,114,735.60
Plus: non-operating income 3,335,370.92 3,188,770.05
Less: non-operating expenses 1,857,448.96 1,353,676.91
Iv. Total profit (total loss is marked with "-") -205,776,194.20 -380,279,642.46
Less: income tax expense -38,508.78 -51,211.90
V. Net profit (net loss marked with "-") -205,737,685.42 -380,228,430.56
(I) Classified by business continuity
1. Net profit from continuing operations (net loss marked with "-") -205,737,685.42 -380,228,430.56
2. Net profit from discontinued operations (net loss marked with "-")
(ii) Classification according to ownership
1. Net profit attributable to shareholders of the parent company -205,737,685.42 -380,228,430.56
2. Profit and loss of minority shareholders
VI.Net after-tax income of other comprehensive income
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Wafangdian Bearing Company Limited 2021 Annual Report
Net after-tax other comprehensive income attributable to the owner of the parent
company
(1) Other comprehensive income that cannot be reclassified into profit and loss
1. Recalculate the amount of change in the defined benefit plan
2. Other comprehensive income that cannot be converted to profit or loss under the
equity method
3. Changes in fair value of other equity instrument investments
4. Changes in fair value of credit risk of the enterprise itself
5. Other
(2) Other comprehensive income reclassified into profit and loss
1. Other comprehensive income transferable to profit and loss under the equity
method
2. Changes in fair value of other creditor's rights investments
3. Amount of financial assets reclassified into other comprehensive income
4. Provisions for credit impairment of other debt investments
5. Cash flow hedging reserve
6. Differences in translation of foreign currency financial statements
7. Other
Net after tax of other comprehensive income attributable to minority shareholders
Vii. Total comprehensive income -205,737,685.42 -380,228,430.56
Total comprehensive income attributable to the owner of the parent company -205,737,685.42 -380,228,430.56
Total comprehensive income attributable to minority shareholders
Viii. Earnings per Share:
(I) Basic earnings per share -0.511 -0.94
(ii) Diluted earnings per share -0.511 -0.94
Chairman: Liu Jun General Accountant : Sun Najuan Accounting charger: Zhang Yajing
4. Income Sheet of Parent Company.
Unit: RMB Yuan
Item 2,518,951,971.92 1,900,653,498.55
I. Total operating revenue 2,086,765,801.29 1,441,850,953.92
Including: operating income 13,007,475.92 12,468,613.35
Interest income 166,604,019.22 208,157,686.30
The premium has been made 87,397,804.29 71,063,079.09
Fees and commissions 205,960,569.78 221,352,260.63
Second, total operating cost 39,448,674.77 43,762,269.30
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Wafangdian Bearing Company Limited 2021 Annual Report
Including: operating costs 36,648,536.99 36,840,257.54
The interest payments 350,772.46 754,744.96
Fees and commissions 6,433,236.93 7,415,539.36
Surrender gold 13,352,133.36 1,125,774.07
Net compensation expenditure
Draw net reserves for insurance liability contracts
Policy bonus payout
Reinsurance expenses 93,991.93 -57,011.50
Taxes and surcharges -58,882,687.88 -22,599,967.68
Cost of sales -51,706,236.80 -257,590,857.20
Management fees 3,275,529.35 237,250.11
Research and development costs -167,666,406.46 -369,470,636.88
Finance charges 2,289,494.02 1,464,353.80
Including: interest expense 1,797,734.79 1,321,460.03
Interest income -167,174,647.23 -369,327,743.11
Plus: Other income 12,703.12 0.00
Investment income (loss marked with "-") -167,187,350.35 -369,327,743.11
Among them: income from investment in joint ventures and joint ventures -167,187,350.35 -369,327,743.11
Financial assets measured at amortized cost cease to recognize earnings
Exchange gain (loss marked with "-")
Net exposure hedging gain (loss marked with "-")
Gain from change in fair value (loss marked with "-")
Credit impairment loss (loss marked with "-")
Asset impairment loss (loss marked with "-")
Income from asset disposal (loss marked with "-")
Iii. Operating profit (loss marked with "-")
Plus: non-operating income
Less: non-operating expenses
Iv. Total profit (total loss is marked with "-")
Less: income tax expense
V. Net profit (net loss marked with "-")
(I) Classified by business continuity
1. Net profit from continuing operations (net loss marked with "-")
2. Net profit from discontinued operations (net loss marked with "-")
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Wafangdian Bearing Company Limited 2021 Annual Report
(ii) Classification according to ownership -167,187,350.35 -369,327,743.11
1. Net profit attributable to shareholders of the parent company
2. Profit and loss of minority shareholders -0.415 -0.917
VI.Net after-tax income of other comprehensive income -0.415 -0.917
Net after-tax other comprehensive income attributable to the owner of the parent
2,518,951,971.92 1,900,653,498.55
company
5. Consolidated Cash Flow Statement.
Unit:yuan
Item The year in 2021 The year in 2020
I. Cash flow generated from operating activities:
Cash received from sales of goods and services 1,205,019,220.28 1,110,910,937.52
Net increase in customer deposits and interbank deposits
Net increase in borrowing from central banks
Net increase in borrowing from other financial institutions
The cash obtained by receiving the premium of the original insurance contract
Net cash received from reinsurance business
Net increase in insured savings and investment funds
Cash for interest, fees and commissions
Net increase in borrowed funds
Net increase in funds for repurchase operations
Net cash received from agents buying or selling securities
Tax refunds received 18,263,068.33 2,574.30
Receipt of other cash related to business activities 57,672,030.61 54,155,586.46
Subtotal cash inflow from operating activities 1,280,954,319.22 1,165,069,098.28
Cash used to pay for goods or services 669,749,953.46 695,692,979.95
Net increase in customer loans and advances
Net increase in deposits of central bank and interbank funds
Cash for payment of claims under the original insurance contract
The net increase in the amount of funds
Cash to pay interest, fees and commissions
Cash to pay dividends on a policy
Cash payments to and for employees 361,349,061.46 271,347,438.50
All taxes paid 55,629,392.66 56,640,317.76
Payment of other cash related to business activities 116,547,749.16 80,163,434.34
Operating activities cash outflow subtotal 1,203,276,156.74 1,103,844,170.55
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Wafangdian Bearing Company Limited 2021 Annual Report
Net cash flows from operating activities 77,678,162.48 61,224,927.73
Ii. Cash flow generated by investment activities:
Cash received to recover investments
Cash received from investment income
Net cash recovered from the disposal of fixed assets, intangible assets and other
2,097,844.44 2,397,893.92
long-term assets
Net cash received from disposal of subsidiaries and other business units
Receipt of other cash related to investment activities
Investment activities cash inflow subtotal 2,097,844.44 2,397,893.92
Cash paid for the purchase and construction of fixed assets, intangible assets and
4,753,911.10 3,579,393.58
other long-term assets
Investment payments in cash
Net increase in pledged loans
Net cash paid by subsidiaries and other business units
Payment of other cash related to investment activities
Investment activities cash outflow subtotal 4,753,911.10 3,579,393.58
Net cash flows from investing activities -2,656,066.66 -1,181,499.66
Iii. Cash flow generated by fundraising activities:
Absorb cash received from investments 0.00 0.00
Among them: the subsidiary absorbs the cash received by minority shareholders
Obtain the cash received on the loan 776,000,000.00 829,000,000.00
Receipt of other cash related to fund-raising activities 155,600,000.00 170,000,000.00
Cash inflow subtotal of financing activities 931,600,000.00 999,000,000.00
Cash to pay off debts 769,000,000.00 826,110,200.00
Cash paid to distribute dividends, profits, or interest payments 38,694,735.35 68,738,059.00
Among them: dividends and profits paid by subsidiaries to minority shareholders
Payment of other cash related to fund-raising activities 150,000,000.00 135,000,000.00
Financing activities cash outflow subtotal 957,694,735.35 1,029,848,259.00
Net cash flows from financing activities -26,094,735.35 -30,848,259.00
iv. Impact of exchange rate fluctuations on cash and cash equivalents -2,808,264.02 -2,790,857.63
v.Net increase in cash and cash equivalents 46,119,096.45 26,404,311.44
Plus: starting balance of cash and cash equivalents 163,728,799.97 137,324,488.53
vi.Balance of cash and cash equivalents at the end of the period 209,847,896.42 163,728,799.97
6. Cash Flow Statement Of Parent Company.
Unit: RMB yuan
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Wafangdian Bearing Company Limited 2021 Annual Report
Item The year in 2021 The year in 2020
I. Cash flow generated from operating activities:
Cash received from sales of goods and services 1,233,564,395.18 1,107,377,634.72
Net increase in customer deposits and interbank deposits 2,618,037.38 2,574.30
Net increase in borrowing from central banks 56,891,603.48 36,163,080.03
Net increase in borrowing from other financial institutions 1,293,074,036.04 1,143,543,289.05
The cash obtained by receiving the premium of the original insurance contract 755,210,715.68 727,194,098.55
Net cash received from reinsurance business 295,322,493.77 220,769,975.76
Net increase in insured savings and investment funds 51,852,375.21 46,026,886.71
Cash for interest, fees and commissions 104,686,844.59 74,436,186.23
Net increase in borrowed funds 1,207,072,429.25 1,068,427,147.25
Net increase in funds for repurchase operations 86,001,606.79 75,116,141.80
Net cash received from agents buying or selling securities
Tax refunds received
Receipt of other cash related to business activities
Subtotal cash inflow from operating activities 821,400.00 1,896,293.92
Cash used to pay for goods or services
Net increase in customer loans and advances
Net increase in deposits of central bank and interbank funds 821,400.00 1,896,293.92
Cash for payment of claims under the original insurance contract 1,340,777.85 1,406,967.83
The net increase in the amount of funds 10,000,000.00
Cash to pay interest, fees and commissions
Cash to pay dividends on a policy
Cash payments to and for employees 11,340,777.85 1,406,967.83
All taxes paid -10,519,377.85 489,326.09
Payment of other cash related to business activities
Operating activities cash outflow subtotal
Net cash flows from operating activities 776,000,000.00 829,000,000.00
Ii. Cash flow generated by investment activities: 155,600,000.00 170,000,000.00
Cash received to recover investments 931,600,000.00 999,000,000.00
Cash received from investment income 769,000,000.00 826,110,200.00
Net cash recovered from the disposal of fixed assets, intangible assets and other
38,694,735.35 68,738,059.00
long-term assets
Net cash received from disposal of subsidiaries and other business units 150,000,000.00 135,000,000.00
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Wafangdian Bearing Company Limited 2021 Annual Report
Receipt of other cash related to investment activities 957,694,735.35 1,029,848,259.00
Investment activities cash inflow subtotal -26,094,735.35 -30,848,259.00
Cash paid for the purchase and construction of fixed assets, intangible assets and other
-2,808,264.02 -2,790,857.63
long-term assets
Investment payments in cash 46,579,229.57 41,966,351.26
Net increase in pledged loans 143,182,984.73 101,216,633.47
Net cash paid by subsidiaries and other business units 189,762,214.30 143,182,984.73
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Wafangdian Bearing Company Limited 2021 Annual Report
7. Consolidated Sheet Of Changes In Shareholder’s Equity
This amount
Unit: RMB yuan
The year in2021
Owner’s equity attributable to parent company
Other equity instruments Less: Other Genera
Item The Minority Total owners'
Prefer Sustai Capital invento comprehe Surplus l risk Undistribute oth
Capital stock special subtotal equity equity
red nable other reserves ry nsive reserves provisi d profit er
reserve
stock debt stocks income on
I.Ending 402,600,000. 136,770,3 -211,056,47 814,004,967.
balance of last 0.00 0.00 0.00 485,691,050.47 0.00 0.00 0.00 0.00 814,004,967.89
00 91.01 3.59 89
year
Plus: changes
in accounting
policies
Advance error
correction
Merger of
enterprises
under the same
control
other
II.Balance at
the beginning 402,600,000. 136,770,3 -211,056,47 0.0 814,004,967.
0.00 0.00 0.00 485,691,050.47 0.00 0.00 0.00 0.00 814,004,967.89
of the current 00 91.01 3.59 0 89
year
III. Amount of
increase or
decrease in -205,737,68 0.0 -205,737,685
current period -205,737,685.42
5.42 0 .42
(marked with
"-" for
decrease)
(1) Total -205,737,68 -205,737,685
comprehensive -205,737,685.42
5.42 .42
income
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Wafangdian Bearing Company Limited 2021 Annual Report
(2) capital input
or reduction by
the owner
1. Common
stock invested
by the owner
2. Capital
invested by
holders of other
equity
instruments
3. Amount of
share payments
credited to
owners' equity
4. Other
(3) Profit
distribution
1. Withdraw
surplus reserve
2. Extract
general risk
provisions
3. Distribution
to owners (or
shareholders)
4. Other
(4)Internal
carryover of
owners' equity
1. Conversion
of capital
reserves to
increased
capital (or
capital stock)
2. Conversion
69
Wafangdian Bearing Company Limited 2021 Annual Report
of surplus
reserves to
increased
capital (or
equity)
3. The surplus
reserves make
up the losses
4. Set changes
in benefit plan
to carry
forward
retained
earnings
5. Carry-over
of other
comprehensive
income to
retained
earnings
6. Other
(5) Special
reserve
1. Current
extraction
2. Current use
(6) Others
4. Ending 402,600,000. 136,770,3 -416,794,15 0.0 608,267,282.
balance of 0.00 0.00 0.00 485,691,050.47 0.00 0.00 0.00 0.00 608,267,282.47
00 91.01 9.01 0 47
current period
The amount of the previous
Unit: RMB yuan
The year in2020
Item Owner’s equity attributable to parent company Minority Total owners'
Capital Other equity instruments Capital Less: Other The Surplus Gener Undistribut othe subtotal equity equity
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Wafangdian Bearing Company Limited 2021 Annual Report
stock reserves invent comprehen speci reserves al risk ed profit r
Preferr
Sustaina oth ory sive al provisi
ed
ble debt er stocks income reser on
stock
ve
I.Ending balance of 402,600,00 485,691,05 136,770,39 201,379,95 1,226,441,3
1,226,441,398.45
last year 0.00 0.47 1.01 6.97 98.45
Plus: changes in
accounting policies
Advance error
correction
Merger of enterprises
under the same
control
other
II.Balance at the 402,600,00 485,691,05 136,770,39 201,379,95 1,226,441,3
beginning of the 1,226,441,398.45
0.00 0.47 1.01 6.97 98.45
current year
III. Amount of
increase or decrease in -412,436,43 -412,436,43
current period -412,436,430.56
0.56 0.56
(marked with "-" for
decrease)
(1) Total -380,228,43 -380,228,43
comprehensive -380,228,430.56
0.56 0.56
income
(2) capital input or
reduction by the
owner
1. Common stock
invested by the owner
2. Capital invested by
holders of other equity
instruments
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Wafangdian Bearing Company Limited 2021 Annual Report
3. Amount of share
payments credited to
owners' equity
4. Other
-32,208,000 -32,208,000
(3) Profit distribution -32,208,000.00
.00 .00
1. Withdraw surplus
reserve
2. Extract general risk
provisions
3. Distribution to -32,208,000 -32,208,000
owners (or -32,208,000.00
.00 .00
shareholders)
4. Other
(4)Internal carryover
of owners' equity
1. Conversion of
capital reserves to
increased capital (or
capital stock)
2. Conversion of
surplus reserves to
increased capital (or
equity)
3. The surplus
reserves make up the
losses
4. Set changes in
benefit plan to carry
forward retained
earnings
5. Carry-over of other
comprehensive
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Wafangdian Bearing Company Limited 2021 Annual Report
income to retained
earnings
6. Other
(5) Special reserve
1. Current extraction
2. Current use
(6) Others
4. Ending balance of 402,600,00 485,691,05 136,770,39 -211,056,47 814,004,96
814,004,967.89
current period 0.00 0.47 1.01 3.59 7.89
8. Sheet Of Changes In Shareholder’s Equity Of Parent Company.
This amount
Unit: RMB yuan
2021
Other equity instruments The
Item Less: Other
Capital special Surplus Undistributed Total owners'
Capital stock Preferred Sustainabl othe inventor comprehensiv other
reserves reserv reserves profit equity
stock e debt r y stocks e income
e
402,600,000. 485,678,443.2 136,770,391.0 -128,677,200.6
I.Ending balance of last year 896,371,633.58
00 6 1 9
Plus: changes in accounting
policies
Advance error correction
other
II.Balance at the beginning of 402,600,000. 485,678,443.2 136,770,391.0 -128,677,200.6
896,371,633.58
the current year 00 6 1 9
III. Amount of increase or
-167,187,350.3
decrease in current period -167,187,350.35
5
(marked with "-" for decrease)
(1) Total comprehensive -167,187,350.3
-167,187,350.35
income 5
73
Wafangdian Bearing Company Limited 2021 Annual Report
(2) capital input or reduction by
the owner
1. Common stock invested by
the owner
2. Capital invested by holders
of other equity instruments
3. Amount of share payments
credited to owners' equity
4. Other
(3) Profit distribution
1. Withdraw surplus reserve
2. Distribution to owners (or
shareholders)
3. The other
(4)Internal carryover of owners'
equity
1. Conversion of capital
reserves to increased capital (or
capital stock)
2. Conversion of surplus
reserves to increased capital (or
equity)
3. Surplus reserves to cover
losses
4. Set changes in benefit plan to
carry forward retained earnings
5. Carry-over of other
comprehensive income to
retained earnings
6. Other
(5) Special reserve
1. Current extraction
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Wafangdian Bearing Company Limited 2021 Annual Report
2. Current use
(6) Others
IV. Ending balance of current 402,600,000. 485,678,443.2 136,770,391.0 -295,864,551.0
729,184,283.23
period 00 6 1 4
The amount of the previous
Unit:yuan
Year2020
Other equity instruments
Item Less: Other The
Preferr Capital Surplus Undistributed othe Total owners'
Capital stock Sustainabl othe inventor comprehensi special
ed reserves reserves profit r equity
e debt r y stocks ve income reserve
stock
402,600,000.0 485,678,443.2 136,770,391.0
I.Ending balance of last year 272,858,542.42 1,297,907,376.69
0 6 1
Plus: changes in accounting
policies
Advance error correction
other
II.Balance at the beginning of 402,600,000.0 485,678,443.2 136,770,391.0
272,858,542.42 1,297,907,376.69
the current year 0 6 1
III. Amount of increase or
decrease in current period -401,535,743.11 -401,535,743.11
(marked with "-" for decrease)
(1) Total comprehensive income -369,327,743.11 -369,327,743.11
(2) capital input or reduction by
the owner
1. Common stock invested by
the owner
2. Capital invested by holders
of other equity instruments
3. Amount of share payments
75
Wafangdian Bearing Company Limited 2021 Annual Report
credited to owners' equity
4. Other
(3) Profit distribution -32,208,000.00 -32,208,000.00
1. Withdraw surplus reserve
2. Distribution to owners (or
-32,208,000.00 -32,208,000.00
shareholders)
3. The other
(4)Internal carryover of owners'
equity
1. Conversion of capital
reserves to increased capital (or
capital stock)
2. Conversion of surplus
reserves to increased capital (or
equity)
3. Surplus reserves to cover
losses
4. Set changes in benefit plan to
carry forward retained earnings
5. Carry-over of other
comprehensive income to
retained earnings
6. Other
(5) Special reserve
1. Current extraction
2. Current use
(6) Others
IV. Ending balance of current 402,600,000.0 485,678,443.2 136,770,391.0
-128,677,200.69 896,371,633.58
period 0 6 1
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Wafangdian Bearing Company Limited 2021 Annual Report
III. General Information
Wafangdian Bearing Company Limited (the “Company”, the “Group” is referred to
“Company” together with its subsidiaries ) is a joint stock limited company established in
the People’ Republic of China (the“PRC” on 16 July, 1996. In the opinion of the directors,
its parent and ultimate holding company is Wafangdian Bearing Group Company Limited
(“Wazhou Group”).
The Company ’ s B shares have been listed on the Shenzhen Stock Exchange since 19
February, 1997.
The Company’s founding meeting and the first meeting of the first board of directors decided
that the effective date of the shareholding system reorganization in the accounting of the
Company (that is, the date of the establishment of the Company's accounts) was determined
as April 1, 1997 on March 19, 1997.
The Company has obtained the business license of the enterprise legal person on March 20,
1997, and the registration number is DaGongShangQiFaZi24239971-2. The business scope is
the manufacture and sale of bearings, mechanical equipment, auto parts and related products.
The Company's B shares were officially listed on the Shenzhen Stock Exchange on March 25,
1997, raising funds of 406.58 million yuan. After the issuance, the Company's registered
capital was 330 million yuan.
In accordance with the Supplementary Notice on Issues Concerning the Equity Distribution of
Listed Companies under the Rules Governing the Listing of Stocks of the Shenzhen Stock
Exchange (hereinafter referred to as the “Supplementary Notice”) issued by the Shenzhen
Stock Exchange on August 30, 2006, based on the audited financial report on September 30,
2006, the Company implemented the conversion of capital reserve into share capital, giving
2.2 shares for every 10 shares, and the total share capital increased from 330 million shares to
402.6 million shares, of which Wazhou Group owned the legal person shares increased from
200 million shares to 244 million shares, accounting for 60.6% of the total share capital; the
Swedish SKF Company increased from 65 million shares to 79.3 million shares, accounting
for 19.7% of the total share capital; public shares increased from 65 million shares to 79.3
million shares, accounting for 19.7% of the total share capital. After the implementation of
this plan, the Company's shareholding structure meets the requirements of the
"Supplementary Notice" of the Shenzhen Stock Exchange.
The parent company is Wazhou Group. General shareholders meeting is the company ’ s
authority and have the resolution power over company ’ s business policy, financing,
investment and profit appropriation etc. significant events in accordance with relevant law.
Board of directors is responsible for general meeting and has the power over the company’s
decision making. Management is in charge of implementation of resolution made by general
meeting and board meeting and is responsible for operation management. Wholly owned
77
Wafangdian Bearing Company Limited 2021 Annual Report
subsidiaries of the Company include Wazhou Liaoyang Bearing Manufacturing Co., Ltd,
Dalian Wazhou Precision Electric Motor Car Bearing, and Wazhou Precision of Spherical
Roller Bearings (Wafangdian) Co., Ltd.
The company belongs to the bearing manufacturing industry, mainly engaged in the
production and sales of various types of bearings. The addresses of the registered office and
principal place of business of the Company are No.1, Phrase 1, North Gongji Street,
Wafangdian, Liaoning Province, and the PRC Legal representative is Liu Jun. Registered
according to law, the business scope of the company is as follows: Licensed items: inspection
and testing services, import and export of goods, import and export of technologies (for items
subject to approval according to law, business activities can only be carried out after approval
by relevant departments, and the specific business items shall be subject to the approval
result)Bearing manufacturing, bearings, gears and transmission components manufacturing,
high speed precision heavy-duty bearing sales, sales bearings, gears and transmission parts,
bearing sales, general equipment manufacturing (excluding special equipment manufacturing),
high-speed rail equipment, parts manufacturing, machinery and equipment sales, rail
transportation equipment, key system and parts sales, sales of lubricating oil, high-speed rail
equipment and accessories sales, Wind generators and spare parts sales, machinery parts,
spare parts sales, railway locomotive vehicle accessories manufacturing, railway locomotive
vehicle accessories sales, auto parts and accessories manufacturing, auto parts wholesale and
retail auto parts, metal products repair, sales metal materials, metal products sales, metal
surface treatment and heat treatment processing, quenching process, machinery parts and
spare parts processing, land use right leasing, housing leasing, non-residential real estate
leasing, mechanical equipment leasing, computer and communication equipment leasing,
transportation equipment leasing service, office equipment leasing service, storage equipment
leasing service, special equipment leasing, labor services (excluding labor
dispatch),Technology service, technology development, technology consultation, technology
exchange, technology transfer, technology popularization (with the exception of the projects
subject to approval according to law, independently carry out business activities according to
law with the business license).
Financial Statement Consolidation Scope
The Group’s financial statements consolidation includes Liaoyang Bearing, Dalian Wazhou
and Spherical Bearing three companies. There is no change for consolidation scope by
comparing to last year.
Please refer to “VII. Change of consolidation scope” and “VIII. Equity within other entity”
in the Note to the financial statements.
IV. Financial Statements Preparation Basis
（1） Basis of preparation
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Wafangdian Bearing Company Limited 2021 Annual Report
The Company’s financial statements are prepared on the basis of going concern assumption,
according to the actual occurred transactions and events and in accordance with ‘Accounting
Standards for Business Enterprises’ and relevant regulations, and also based on the note IV
“Significant Accounting Policies, Accounting Estimates”.
（2） Going concern
The group has evaluated the going-concern capability for the 12 months from the end of the
reporting period, and has found no significant doubts about the going-concern capability.
Therefore, the financial statements are prepared on the assumption of going concern.
V. Significant Accounting Policies and Accounting Estimates
Specific accounting policy and estimates reminder: the group established the accounting
policy and estimate, such as operation cycle, bad debt recognition and measurement,
dispatched inventory measurement and classification of fixed assets and FA’s depreciation,
intangible asset ’ s amortization, capitalization condition of research and development
expenses, revenue recognition and measurement based on the actual characters of business
operation.
1. Declaration for compliance with Accounting Standards for Business Enterprises
The financial statements are prepared by the Group according to the requirements of
Accounting Standards for Business Enterprises, and reflect the relative information for the
financial position, operating performance, cash flow of the Group truly and fully.
2. Accounting period
The Group adopts the Gregorian calendar year as accounting period, i.e. from Jan 1 to Dec 31.
3. Operating cycle
Normal operating cycle refers to the duration starting from purchasing the assets for
manufactuing up to cash or cash equivelant realisation. The group sets twelve months for
one operating cycle and as the liquidity criterion for assets and liability.
4. Funcitonal currency
The Group adopts RMB as functional currency.
5. Accounting for business combination under same control and not under same control
As an acquirer, the assets and liabilities that The Group obtained in a business combination
under the same control should be measured on the basis of their carrying amount in the
consolidated financial statements on the combining date. As for the balance between the
carrying amount of the net assets obtained by the combining party and the carrying amount of
the consideration paid by it, the capital surplus shall be adjusted. If the capital surplus is not
sufficient to be offset, the retained earnings shall be adjusted.
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For a business combination not under same control, the asset, liability and contingent liability
obtained from the acquirer shall be measured at the fair value on the acquisition date. The
combination cost shall be the fair value, on the acquisition date, of the assets paid, the
liabilities incurred or assumed and equity securities issued by the acquirer in exchange for the
control of the acquire, and sum of all direct expenses(if the combination is achieved in stages,
the combination cost shall be the sum of individual transaction). The difference when
combination cost exceeds proportionate share of the fair value of identifiable net assets of
acquiree should be recognized as goodwill. If the combination cost is less than proportionate
share of the fair value of identifiable net assets of acquiree, firstly, fair value of identifiable
asset, liability or contingent liability shall be reviewed, and so the fair value of non-monetary
assets or equity instruments issued in the combination consideration , after review, still the
combination cost is less than proportionate share of the fair value of identifiable net assets of
acquire, the difference should be recognized as non-operating income.
6. Method of preparation of consolidated financial statements
All subsidiaries controlled by the Group and structured entities are within the consolidation
scope.
If subsidiaries adopt different accounting policy or have different accounting period from the
parent company, appropriated adjustments shall be made in accordance with the Group policy
in preparation of the consolidated financial statements.
All significant intragroup transactions, outstanding balances and unrealized profit shall be
eliminated in full when preparing the consolidated financial statements. Portion of the
subsidiary’s equity not belonging to the parent, profit, loss for the current period, portion of
other comprehensive income and total comprehensive belonging to minority interest, shall be
presented separately in the consolidated financial statements under “ minority interest of
equity”, ”minority interest of profit and loss”, “other comprehensive income attributed to
minority interest” and “total comprehensive income attributed to minority interest” title.
If a subsidiary is acquired under common control, its operation results and cash flow shall be
consolidated since the beginning of the consolidation period. When preparing the comparative
consolidated financial statements, adjustments shall be made to relevant items of comparative
figures as regarded that reporting entity established through consolidation has been always
there since the point when the ultimate controlling party starts to have the control.
If a business consolidation under common control is finally achieved in stages, consolidation
accounting method shall be disclosed additionally for the period in which the control is
obtained. For example, if a business consolidation under common control is finally achieved
in stages, when preparing the consolidated financial statements, adjustments shall be made for
the current consolidation status as if consolidation has always been there since the point when
the ultimate controlling party starts to control. In preparation of comparative figures, asset and
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liability of the acquiree shall be consolidated into the Group ’ s comparative financial
statements, but to the extent no earlier than the point when the Group and acquiree are both
under ultimate control and relevant items under equity in comparative financial statements
shall be adjusted for net asset increased in combination. To avoid the duplicated computation
of net asset of acquiree, for long-term equity investment held by the Group before the
consolidation, relevant profit and loss, other comprehensive income and movement in other
net asset, recognized for the period between the combination date and later date when original
shareholding is obtained and when the Group and the acquiree are under common control of
same ultimate controlling party, shall be respectively used for writing down the opening
balance of retained earnings of comparative financial statements and profit and loss for the
current period.
If a subsidiary is acquired not under common control, its operation results and cash flow shall
be consolidated since the beginning of the consolidation period. In preparation of the
consolidated financial statements, adjustments shall be made to subsidiary ’ s financial
statements based on the fair value of its all identifiable assets, liability or contingent liability
on the acquisition date.
If a business consolidation under non-common control is finally achieved in stages,
consolidation accounting method shall be disclosed additionally for the period in which the
control is obtained. For example, if a business consolidation not under common control is
finally achieved in stages, when preparing the consolidated financial statements, the acquirer
shall remeasure its previously held equity interest in the acquiree at its acquisition-date fair
value and recognize the resulting gain or loss as investment income for the current period.
Other comprehensive income, under equity method accounting rising from the interest held in
acquiree in relation to the period before the acquisition, and changes in the value of its other
equity other than net profit or loss, other comprehensive income and profit appropriation shall
be transferred to investment gain or loss for the period in which the acquisition incurs,
excluding the other comprehensive income from the movement on the remeasurement of net
asset or liability of defined benefit plan.
When the Group partially disposes of the long – term equity investment in subsidiary
without losing the control over it, in the consolidated financial statements, the difference,
between disposals price and respective disposed value of share of net assets in the subsidiary
since the acquisition date or combination date, shall be adjusted for capital surplus or share
premium, no enough capital surplus, then adjusted for retained earnings.
When the Group partially disposes of the long – term equity investment in subsidiary and
lose the control over it, in preparation of consolidated financial statements, remaining share of
interest in the subsidiary shall be remeasured on the date of losing control. Sum of the share
disposal consideration and fair value of remaining portion of shareholding minus the share of
the net assets in the subsidiary held based on the previous shareholding percentage since the
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acquisition date or combination date, the balance of above is recognized as investment
gain/loss for the period and goodwill shall be written off accordingly. Other comprehensive
income relevant to share investment in subsidiary shall be transferred to investment gain /loss
for the period on the date of losing control.
When the Group partially disposes of the long – term equity investment in subsidiary and
lose the control over it by stages, if all disposing transactions are bundled, each individual
transaction shall be seen as a transaction of disposal of a subsidiary by losing control. The
difference between the disposal price and the share of the net assets in the subsidiary held
before the date of losing control, shall be recognize as other comprehensive income until the
date of losing control where it is transferred into investment gain/ loss for the current period.
7. Cash and cash equivalent
The cash listed on the cash flow statements of the Group refers to cash on hand and bank
deposit. The cash equivalents refer to short-term (normally with original maturities of three
months or less) and liquid investments which are readily convertible to known amounts of
cash and subject to an insignificant risk of changes in value.
8. Translation of foreign currency
(1) Foreign currency transaction
Foreign currency transactions are translated at the spot exchange rate issued by People’ Bank
of China (“PBOC”) when the transaction incurs. Monetary assets and liabilities in foreign
currencies are translated into RMB at the exchange rate prevailing at the balance sheet day.
Exchange differences arising from the settlement of monetary items are charged as in profit or
loss for the period. Exchange differences of specific borrowings related to the acquisition or
construction of a fixed asset should be capitalized as occurred, before the relevant fixed asset
being acquired or constructed is ready for its intended uses.
(2) Translation of foreign currency financial statements
The asset and liability items in the foreign currency balance sheet should be translated at a
spot exchange rate at the balance sheet date. Among the ower ’ s equity items except
“undistributed profit”, others should be translated at the spot exchange rate when they are
incurred. The income and expense should be translated at spot exchange rate when the
transaction incurs. Translation difference of foreign currency financial statements should be
presented separately under the other comprehensive income title. Foreign currency cash flows
are translated at the spot exchange rate on the day when the cash flows incur. The amounts
resulted from change of exchange rate are presented separately in the cash flow statement.
9. Financial assets and financial liabilities
The Group shall recognize a financial asset or a financial liability when the Group becomes
party to the contractual provisions of the instrument.
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(1) Financial assets
1) Classification, recognition and measurement
The Group shall classify financial assets as measured at amortized cost, fair value through
other comprehensive income or fair value through profit or loss on the basis of both the
Group ’ s business model for managing the financial assets and the contractual cash flow
characteristics of the financial asset.
A financial asset shall be measured at amortized cost if both of the following conditions are
met: ①the financial asset is held within a business model whose objective is to hold financial
assets in order to collect contractual cash flows;②the contractual terms of the financial asset
give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding. At initial recognition, the Group shall measure the financial
asset at its fair value and take any transaction costs that are directly attributable to the
financial asset into account. After initial recognition, the Group shall measure the financial
asset at amortized cost. A gain or loss on a financial asset that is measured at amortized cost
and is not a hedged item shall be recognized in profit or loss when the financial asset is
derecognized, impaired, involved in foreign exchange or amortized for any difference arising
between the initial recognized amount and due amount by applying effective interest method.
A financial asset shall be measured at fair value through other comprehensive income if both
of the following conditions are met: ① the financial asset is held within a business model
whose objective is achieved by both collecting contractual cash flows and selling financial
assets and ②the contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding.
At initial recognition, the Group shall measure this financial asset at its fair value and take any
transaction costs that are directly attributable to the financial asset into account. A gain or loss
on a financial asset that is measured at fair value through other comprehensive income and is
not a hedged item shall be recognized in other comprehensive income apart from a gain or
loss on credit loss, foreign exchange and interest of the financial asset calculated by effective
interest method. Accumulated gain or loss previously in the other comprehensive income shall
be out of it and accounted in the profit or loss account when the financial asset is
derecognized.
The Group recognized interest revenue based on effective interest method. Interest revenue
shall be calculated by applying the effective interest rate to the gross carrying amount of a
financial asset, except for: ① purchased or originated credit-impaired financial assets. For
those financial assets, the Group shall apply the credit-adjusted effective interest rate to the
amortized cost of the financial asset from initial recognition. ②financial assets that are not
purchased or originated credit-impaired financial assets but subsequently have become
credit-impaired financial assets. For those financial assets, the Group shall apply the effective
interest rate to the amortized cost of the financial asset in subsequent reporting periods.
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The Group designates an investment as fair value measured through other comprehensive
income if an equity instrument held is not for trading. Once the decision is made, it is an
irrevocable election. At initial recognition, the Group shall measure the equity instrument
investment not for trading at its fair value and take any transaction costs that are directly
attributable to the financial asset into account. Any other gain or loss (including foreign
exchange gain or loss) shall be accounted in other comprehensive income and shall not be
subsequently transferred to profit or loss, unless the dividend received is accounted in profit
or loss( excluding the recovered investment cost). Accumulated gain or loss previously in the
other comprehensive income shall be out of it and into retained earnings when the financial
asset is derecognized.
Apart from classified as the amortized cost financial assets and as fair value through other
comprehensive income financial assets, a financial asset is classified as fair value through
profit or loss. At initial recognition, the Group shall measure this financial asset at its fair
value and take any transaction costs that are directly attributable to the financial asset into
account.
A financial asset shall be classified as fair value through profit or loss if it is recognized
contingent consideration through business combination, which is not under same control
situation.
2) Recognition and measurement of transfer of financial assets
A financial asset is derecognized when any one of the following conditions is satisfied: ①the
rights to receive cash flows from the asset is terminated, ② the financial asset has been
transferred and the Group transfers substantially all risks and rewards relating to the financial
assets to the transferee, ③ the financial asset has been transferred to the transferee, the
Group has given up its control of the financial asset although the Group neither transfers nor
retains all risks and rewards of the financial asset.
In the case where the financial asset as a whole qualifies for the derecognition conditions, the
difference between the carrying value of transferred financial asset and the sum of the
consideration received for transfer and the accumulated amount of changes in fair value in
respect of the amount of partial derecognition (the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding) , that was previously recorded under other comprehensive
income is transferred into profit or loss for the period.
In the case where only part of the financial asset qualifies for derecognition, the carrying
amount of financial asset being transferred is allocated between the portions that to be
derecognised and the portion that continued to be recognised according to their relative fair
value. The difference between the amount of consideration received for the transfer and the
accumulated amount of changes in fair value that was previously recorded in other
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comprehensive income for the asset partially qualified for derecognition (the contractual terms
of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding) and the above-mentioned allocated
carrying amount is charged to profit or loss for the period.
(2) Financial liabilities
1) Classification, basis for recognition and measurement
Financial liabilities of the Group are classified at initial recognition as “financial liabilities at
fair value through profit or loss” and “other financial liabilities” on initial recognition.
Financial liabilities at fair value through profit or loss include financial liabilities held for
trading and those designated as fair value through profit or loss on initial recognition. They
are subsequently measured at fair value. The net gain or loss arising from changes in fair
value, dividends and interest paid related to such financial liabilities are recorded in profit or
loss for the period in which they are incurred.
Other financial liabilities shall be subsequently measured at amortized cost by applying
effective interest method. The Group shall classify a financial liability as a liability measured
at amortized cost except the followings: ①financial liability measured at fair value through
profit or loss including tradable financial liability (derivative instrument of financial liability
included) and designated as financial liability measured at fair value through profit or loss ②
financial assets transfers that do not qualify for derecognition or financial liability is formed
from continuing involvement in transferred assets ③ financial guarantee contract not in the
above category of ① or ② and loan commitment which is not in the category ① at the
below the market loan rate.
The Group shall account the financial liability as it measured at fair value through profit or
loss if the financial liability is formed by contingent consideration recognized by the buyer
through business combination that is not under common control.
2) Financial liability derecognition
A financial liability is derecognized when the underlying present obligations or part of it are
discharged. Existing financial liability shall be derecognized and new financial liability shall
be recognized when the Group signs the agreement with creditor to undertake the new
financial liability in replacement of existing financial liability, and the terms of agreement are
different in substance. Any significant amendment to the agreement as a whole or part o it is
made, then the existing liabilities or part of it shall be derecognized and financial liability after
terms amendment shall be recognized as a new financial liability. The difference between the
carrying amount of the financial liability derecognized and the consideration paid is
recognized in profit or loss for the period.
(3) Fair value measurement of financial asset and financial liability
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The Group uses the price in the primary market for financial assets and liability fair value
measurement, if no primary market exists, the price in the most advantageous market shall be
used for fair value measurement and applicable valuation techniques which enough data is
available for and supported by other information shall be adopted. Input for fair value
measurement has 3 levels: level 1 input is the unadjusted quoted price for identical asset or
liability available at the active market on the measurement date; level 2 input is the directly or
indirectly observable input for relevant asset or liability apart from level 1 input; level 3 input
is the unobservable input for relevant asset or liability. The Group preferentially uses level 1
input and level 3 input at last. The level where the result of FV measurement is decided by the
primary level of input which has significant effect on the FV as a whole.
The Group ’ s equity instrument investment is measured at FV. But within the restricted
circumstances, there is lack of information for FV measurement recently or probable estimate
of FV spreads widely, the cost represents the best estimate of FV and the appropriate estimate
within the scope.
(4) Financial asset and financial liability offset
Financial asset and financial liability shall be presented in the balance sheet separately and
cannot be offset, unless the following conditions are all met: ①the Group has the legal right
to recognized offset amount and the right is enforceable. ②the Group plans to receive or a
legal obligation to pay cash at net amount.
(5) Distinguishment between financial liability and equity instrument and accounting
Financial liability and equity instrument shall be distinguished in accordance with the
following standards: ① if the Group cannot unconditionally avoid paying cash or financial
asset to fulfil a contractual obligation, the contractual obligation is qualified or financial
liability. For certain financial instrument, although there are no clear terms and conditions to
include obligation of paying cash or other financial liability, contractual obligation may
indirectly be formed through other terms and conditions. ② the Group ’ s own equity
instrument shall also be considered whether it is the substitute of cash, financial asset or it is
the remaining equity, after the issuer deducts liability, enjoyed by the equity holder , if it must
or can be used to settle a financial asset. If the former, the instrument is a financial liability of
the issuer, otherwise it is an equity instrument of the issuer. In certain circumstances, financial
instrument contract is classified as financial liability, if financial instrument contract specifies
the Group must or can use its own equity to settle the financial instrument, the contractual
amount of right or obligation equals to that of the numbers of own equity instrument available
or to be paid multiplied by fair value when settling, nevertheless the amount is fixed, or
varied partially or fully based on the its own equity ’ s market price(such as interest rate,
certain commodity’s or financial instrument’s price variance).
When classifying a financial instrument (or its component) in the consolidated statements, the
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Group takes all terms and conditions agreed by the group member and instrument holder into
consideration. If the group due to the instrument, as a whole, bears settlement obligation by
paying cash, other financial asset or other means resulted in financial liability, the instrument
shall be classified as financial liability.
If a financial instrument or its component is financial liability, any gain or loss, interest,
dividend, and any gain or loss from buy back or refinancing shall be accounted in profit or
loss.
If a financial instrument or its component is an equity instrument, when it was
issued(including refinancing), bought back, sold or withdrawn, any change shall be regarded
as equity change and no fair value change shall be recognized.
(6) Financial asset impairment
Based on expected credit loss, a financial asset measured at amortized cost, a debt instrument
investment measured at FVTOCI and a contractual asset shall all be subject to impairment
accounting and be recognized for impairment loss allowance if any impairment.
A credit loss herein is referred to as the present value, at original effective rate, of the
difference between the contractual cash flows that are due to the Group under the contract;
and the cash flows that the Group expects to receive, that's the present value of the total cash
shortage. A financial asset shall be the present value, at credit adjusted effective rate, if it is a
purchased or originated credit -impaired asset.
The Group adopts simplified approach for trade receivables, contract assets that do not
contain a significant financing component, and shall always measure the loss allowance at an
amount equal to lifetime expected credit losses.
Impairment requirements is to assess whether credit risk has been significantly increased since
initial recognition at each reporting date, if there have been significant increases in credit risk,
the Group shall measure the loss allowance for a financial instrument at an amount equal to
the lifetime expected credit losses, at the reporting date, if the credit risk on a financial
instrument has not increased significantly since initial recognition, the Group shall measure
the loss allowance for that financial instrument at an amount equal to 12 month expected
credit losses.
When assessing expected credit losses, the Group considers all reasonable and supportable
information, including that which is forward-looking.
The Group directly lowers the book value of the financial asset when contractual cash flow
cannot be fully or partially recollected within rational expectation any longer.
The Group also assesses the expected credit loss of financial asset measured at amortized cost
based on aging portfolio, other than pastdue credit loss assessment based on individual item.
Based on the credit risk characteristics, notes receivable, receivable and othe receivable is
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divided into different portfolio and determined for expected credit loss according to the
portfolio s as follows:
Note receivable 1 Bank acceptance note
Note receivable 2 Trade acceptance note form related party
Note receivable 3 Trade acceptance note form non-related party
Receivable 1 Related party portfolio
Receivable 2 Aging protfolio
For receivable as a portfolio, the Group prepares the comparison table between receivables
aging and expected credit loss rate within lifetime and work out the expected credit loss by
reference to historical credit loss experience in combination with current situation and future
forecast of economy condition.
Based on the credit risk characteristics, other notes receivable is divided into different
portfolio and determined for expected credit loss according to the portfolio s as follows:
Other receivable 1 Related party portfolio
Other receivable 2 Aging protfolio
Risk free protfolio (according to couterparty ’ s credit,
Other receivable 3
nature of the payment and transactions secure facility)
For other receivable as a portfolio, the Group work out the expected credit loss through
default risk exposure and expected credit loss rate within lifetime by reference to historical
credit loss experience in combination with current situation and future forecast of economy
condition.
10. Notes receivable
Please refer to Note IV.9(6) for impairment.
11. Receivable
Please refer to Note IV.9(6) for impairment.
12. Financing receivable
The management model of notes receivabel is not only for receiving the contractual cashfolw
for purpose but also for selling the financial asset, therefore it is classified into financial assets
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menasure at fair value through profit and loss and shall be presented under financing
receivable.
13. Other receivable
Please refer to Note IV.9(6) for impairment.
14. Inventories
Classification of inventory: Inventories are classified as raw material, wrappage, low-valuable
consumable, working-in-progress, and finished goods etc.
The inventories are processed on perpetual inventory system, and are measured at their
budgeted cost on acquistion. The raw materials are accounted daily on their bedgeted costs.
The differences between the budget and actual costs is recorded into the costs of materials
purchased and cost of materials dispatched according to proportion of raw materials in stock
and dispatched, and adjust the budgeted costs of raw material into actual costs. The
working-in-progress and finished goods are accounted on their budgeted costs; the differences
between the budgeted costs and actual costs are recorded into the costs of working-in-progress
and finished goods according to proportion of inventory in stock and dispatched, and finaly
adjust the budgetedcosts into actual costs.Inventory usage and dispatch is measured at average
cost as actual cost.Low value consumables and packaging materials is recognized in the
income statement by one-off method.
At the balance sheet date inventory should be measured at the lower of the cost and net
realizable value. For the inventories which are damaged, fully or partly obsoleted and selling
price below cost, the Group should calculate the provision for impairment of inventories
according to the estimated nonrecoverable part of cost. Finished goods and a large amount
raw materials should be calculated provision for impairment based on the difference of the
cost exceed the realizable value of single item. For raw and accessorial materials with a large
quantities and lower unit price should be calculated provison for impairment according to
classification of inventory.
For the finished goods, working in progress and raw material held for sale etc which shall be
sold directly, the net realizable value should be confirmed at the estimated selling price less
estimated selling expenses and related tax and expenses. The raw material held for production,
its realizable value should be confirmed at the estimated selling price of finished goods less
estimated cost of completion, estimated selling expenses and related tax.
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15. Contract asset
(1)Recognition and criterion
Contract asset is an entity’s right to consideration in exchange for goods or services that the
entity has transferred to a customer when that right is conditioned on something other than the
passage of time. Contract asset and contract liability originated from same contact shall be
listed at net amount.
(2)Expected credit loss recognition and accounting of contract asset
Expected credit loss recognition of contract asset is referred to the Note IV.10 (6) . Provision
for Impairment of Financial Insturment.
On the balance sheet date, expected credit loss of contract asset shall be calculated and the
difference shall be recognized as the impairment loss if the loss figure worked out is bigger
than the carrying amount of the provision for impairment of contract asset, and debit “asset
impairment loss”, credit “provision for impairment of contract asset”. On the contrary, the
Company shall recognize the difference as impairment profit and keep the opposite
accounting record.
If the actual credit loss incurred and the contract asset is unable to be collected with
confirmation, after the approval is given, the loss shall be written off based on the approved
amount and debit “provision for impairment of contract asset”, credit “contract asset”. If
the amount to be written is greater than the provision, the difference shall be debited to “asset
impairment loss”.
16. Contract cost
(1) Assets recognition methods in relation to contract cost
Assets relevant to contract cost in the company include cost to fulfill the contract and cost to
obtain a contract.
If the costs incurred in fulfilling a contract with a customer are not within the scope of
another Standard, an entity shall recognize an asset from the costs incurred to fulfill a contract
only if those costs meet all of the following criteria: the costs relate directly to a contract or to
an anticipated contract, including direct labor, direct materials and overheads which is clearly
stated to be borne by the client and any other cost in line with the contract; the costs enhance
resources of the entity that will be used in performance obligations in the future; and the costs
are expected to be recovered.
An entity shall recognize an asset as the incremental costs of obtaining a contract with a
customer if the entity expects to recover those costs. an entity may recognize the incremental
costs of obtaining a contract as an expense when incurred if the amortization period of the
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asset t is one year or less. The incremental costs of obtaining a contract are those costs that an
entity incurs to obtain a contract with a customer that it would not have incurred if the
contract had not been obtained (for example, a sales commission). Costs to obtain a contract
that would have been incurred rather than the incremental cost expected to be recovered shall
be recognized as an expense when incurred, unless those costs are explicitly chargeable to the
customer regardless of whether the contract is obtained
(2) Amortization of asset relevant to contract cost
An asset recognized in accordance with contract cost shall be amortized on a systematic basis
that is consistent with the transfer to the customer of the goods or services to which the asset
relates.
(3) Impairment of asset relevant to contract cost
When determining the impairment loss of the assets related to the contract cost, the Company
shall firstly determine the impairment loss of the assets related to the contract that are
recognized in accordance with the other accounting standards. If the book value of the asset is
higher than the remaining consideration expected to be obtained by the Company for the
transfer of the goods related to the asset and the estimated cost to be incurred for the transfer
of the goods related to the asset, the excess part shall be withdrawn as an impairment
provision and recognized as an impairment loss of the asset.
An entity shall recognize in profit or loss a reversal of some or all of an impairment loss
previously recognized when the impairment conditions no longer exist or have improved. The
increased carrying amount of the asset shall not exceed the amount that would have been
determined (net of amortization) if no impairment loss had been recognized previously.
17. Long-term equity investment
Long term equity investments are the investment in subsidiary, in associated company and in
joint venture.
Joint control is the contractual agreement sharing of control over an economic activity by all
participants or participants’ combination and decisions or policies relating to the operating
activity of the entity require the unanimous consent of the parties sharing the control.
Significant influence exists when the entity directly or indirectly owned 20% or more but less
than 50% shares with voting rights in the investee company.If holding less than 20% voting
rights, the entity shall also take other facts or circumstances into accounts when judging any
significant influences. Factors and circumstances include: representation on the board of
directors or equivalent governing body ofthe investee, participation in financial or operating
activities policy-making processes,material transactions between the investor and the investee,
interchange of managerial personnel or provision of essential technical information.
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When control exists over an investee, the investee is a subsidiary of an entity. The initial
investment cost for long-term equity investment acquired through business combination under
common control, is the carrying amount presented in the consolidated financial statements of
the share of net assets at the combination date in the acquired company. If the carrying amount
of net assets at the combination date in the acquired company is negative, investment shall be
recognized at zero.
If the equity of investee under common control is acquired by stages and business
combination incursin the end, an entity shall disclose the accounting method for long-term
equity investment in the parent financial statement as a supplemental. For example, if the
equity of investee under common control is acquired by stages and business combination
incursin the end, and it’ a bundled transaction, the entity shall regard all transactions as a one
for accounting. If it ’ s not a bundled transaction, the carrying amount presented in the
consolidated financial statements of the share of net assets at the combination date in the
acquired company since acquisition is determined as for the initial cost of long-term equity
investment. The difference between the cost initially recognized and carrying amount of
long-term equity investment prior to the business combination plus the newly paid
consideration for further share acquired, and capital reserve shall be adjusted accordingly. If
no enough capital reserve is available for adjustment, retain earnings shall be adjusted.
If long-term equity investment is acquired through business combination not under common
control, initial investment cost shall be the combination cost.
If the equity of investee not under common control is acquired by stages and business
combination incursin the end, an entity shall disclose the accounting method for long-term
equity investment in the parent financial statement as a supplemental. If the equity investment
of investee not under common control is acquired by stages and business combination
incursin the end, and it’ a bundled transaction, the entity shall regard all transactions as a one
for accounting. If it’s not a bundled transaction, the carrying amount of the equity investment
held previously plus newly increased investment cost are taken as the initial investment cost
under cost model. If equity investment is held under equity method before the acquisition date,
other comprehensive income under equity method previously shall not be adjusted
accordingly. When disposing of the investment, the entity shall adopt the same basis as the
investee directly disposing of related assets or liability for accounting treatment. Equity held
prior to acquisition date as available for sale financial assets under fair value model,
accumulated change on fair value previously recorded in other comprehensive shall be
transferred into investment gain/loss for the period.
Apart from the long-term equity investments acquired through business combination
mentioned above, the cost of investment for the long-term equity investments acquired by
cash payment is the amount of cash paid. For long-term equity investment acquired by issuing
equity instruments, the cost of investment is the fair value of the equity instrument issued. For
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long-term equity investment injected to the entity by the investor, the investment cost is the
consideration as specified in the relevant contract or agreement.
The Group adopts cost method to account for investment in subsidiary and equity method for
investment in joint venture and affiliate.
Long-term equity investment subsequently measured under cost model shall increase the
carrying amount of investment by adjusting the fair value of additional investment and
relevant transaction expenses. Cash dividend or profit declared by investee shall be
recognized as investment gain/loss for the period based on the proportion share in the
investee.
Long-term equity investment subsequently measured under equity method shall be adjusted
for its carrying amount according to the share of equity increase or decrease in the investee.
The entity shall recognize its share of the investee’s net profits or losses based on the fair
value of the investee ’ s individual identifiable assets at the acquisition date, after making
appropriate adjustments thereto in conformity with the accounting policies and accounting
period, and offsetting the unrealized profit or loss from internal transactions entered into
between the entity and its associates and joint ventures according to the shareholding
attributable to the entity and accounted for as investment income and loss based on such basis.
On disposal of a long-term equity investment, the difference between the carrying value and
the consideration actually received is recognised as investment income for the period. For
long-term investments accounted for under equity method, the movements of shareholder’s
equity, other than the net profit or loss, of the investee company, previously recorded in the
shareholder’ s equity of the Company are recycled to investment income for the period on
disposal.
Where the entity has no longer joint control or significant influence in the investee company
as a result of partially disposal of the investment, the remaining investment will be changed to
be accounted for as available for sale financial assets, and the difference between the fair
value of remaining investment at the date of losing joint control or significant influence and
its carrying amount shall be recognized in the profit or loss for the year. Other comprehensive
income recognized from previous equity investment under equity model shall be accounted
for on the same basis as the investee directly disposing of related assets or liability when
stopping using under equity model.
Where the entity has no longer control over the investee company as a result of partially
disposal of the investment, the remaining investment will be changed to be accounted for
using equity method providing remaining joint control or significant influence over the
investee company. The difference between carrying amount of disposed investment and
consideration received actually shall be recognised in the profit and loss for the period as
investment gain or loss, and investment shall be adjusted accordingly as if it was accounted
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for under equity model since acquisition. Where the entity has on longer joint control or
significant influence in the investee as a result of disposal, the investment shall be changed to
be accounted for as available for sale financial assets, and difference between the carrying
amount and disposal consideration shall be recognized in profit and loss for the period, and
the difference between the fair value of remaining investment at the date of losing control and
its carrying amount shall be recognized in the profit or loss for the year as investment gain or
loss.
If the entity loses its control through partially disposal of investment by stages and it’s not a
bundled transaction, the entity shall account for all transactions separately. If it’s a bundled
transaction, the entity shall regard all transactions as one disposal of subsidiary by losing
control, but the difference between disposal consideration and carrying amount of the equity
investment disposed prior to losing control, which arises from each individual transaction
shall be recognized as other comprehensive income until being transferred into profit and loss
for the period by the time of losing control.
18. Investment property
Investment property of the Company includes land and property. Cost model is adpoted.
Investment property is depreciated or amortized under straight line method. Estimated net
residual value rate, useful life, depreciation rate as follows:
Estimated net Annual
Useful life
Category residual value depreciation
(years)
rate (%) rate
Use right of land 40 8.33%
Property and buildings
Including: Buildings 15 3 6.47%
Housing for 30 3 3.23%
production
Housing for 35 3 2.77%
non-production
19. Fixed assets
Recognition criteria of fixed assets: Fixed assets are defined as the tangible assets which are
held for the purpose of producing goods, rendering services, leasing or for operation &
management, and have more than one year of useful life, and whose unit price is over
RMB2,000.
Fixed assets shall be recognized when the economic benefit probably flows into the Group
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and its cost can be measured reliably. Fixed assets include: building, machinery, transportation
equipment, electronic equipment and others.
All fixed assets shall be depreciated unless the fixed assets had been fully depreciated and are
still being used and land is separately measuered. Straight-line depreciation method is adopted
by the Group. Estimated net residual value rate, useful life, depreciation rate as follows:
Estimated
Annual
Useful life net residual
No Category depreciation
(years) value rate
rate
(%)
1 Housing and Buildings
Including: Buildings 15 3 6.47%
Housing for 30 3 3.23%
production
Housing for 35 3 2.77%
non-production
2 Machinery equipment 10-15 3 6.47%～9.70%
3 Transportation equipment 6 3 16.17%
4 Electronic equipment
Including: Computer 4 3 24.25%
General testing instruments 7 3 13.86%
Specialized electronic equipment 8 3 12.13%
Automated controlling equipment 8 3 12.13%
Automated controlling meters 8 3 12.13%
5 Others equipment
Including: Industrial kiln 7 3 13.86%
Tools & other production 9 3 10.78%
tools
Transmission equipment 15 3 6.47%
Non-operational equipment 18 3 5.39%
and tools
The company should review the estimated useful life, estimated net residual value and
depreciation method at the end of each year. If any change has occurred, it shall be regarded
as a change in the accounting estimates.
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20. Construction in progress
The criteria and time spot of constructions in progress ’ s being transferred to fixed assets:
Constructions in progress are carried down to fixed assets on their actual costs when
completing and achieving estimated usable status. The fixed assets that have been completed
and reached estimated usable status but have not yet been through completion and settlement
procedures are charged to an account according to their estimate values; adjustment will be
conducted upon confirmation of their actual values. The Group should withdraw depreciation
in the next month after completion.
21. Borrowing costs
The borrowing cost includes the interest expenses of the borrowing, amortization of
underflow or overflow from borrowings, additional expenses and the foreign exchange profit
and loss because of foreign currency borrowings. The borrowing costs incurred which can be
directly attribute to the fixed assets, investments properties, inventories requesting over 1 year
purchasing or manufacturing so to come into the expected condition of use or available for
sale shall start to be capitalized when expenditure for the assets is being occurred, borrowing
cost has occurred, necessary construction for bringing the assets into expected condition for
use is in progress. The borrowing costs shall stop to be capitalized when the assets come into
the expected condition of use or available for sale. The borrowing costs subsequently incurred
should be recorded into profit and loss when occurred. The borrowing costs should
temporarily stop being capitalized when there is an unusual stoppage of over consecutive 3
months during the purchase or produce of the capitalized assets, until the purchase or produce
of the asset restart.
The borrowing costs of special borrowings, deducting the interest revenue of unused
borrowings kept in the bank or the investment income from transient investment should be
capitalized. The capitalized amount of common borrowings should be calculated as follows:
average assets expenditure of the accumulated assets expenditure excess the special borrowing,
multiplied by the capital rate. The capital rate is the weighted average rate of the common
borrowings.
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22. Right-of-use assets
An asset that represents a lessee’s right to use an underlying asset for the lease term.
(1) Initial recognition
At the commencement date, a lessee shall measure the right-of-use asset at cost.
The cost of the right-of-use asset shall comprise:
① the amount of the initial measurement of the lease liability,
② any lease payments made at or before the commencement date, less any lease incentives
received, which is the incremental cost for the lease
③ any initial direct costs incurred by the lessee; and
④ an estimate of costs to be incurred by the lessee in dismantling and removing the
underlying asset, restoring the site on which it is located or restoring the underlying asset to
the condition required by the terms and conditions of the lease, unless those costs are incurred
to produce inventories.
(2) Subsequent measurement
After the commencement date, a lessee shall measure the right-of-use asset applying a cost
model. To apply a cost model, a lessee shall measure the right of use asset at cost less any
accumulated depreciation and any accumulated impairment losses; and adjusted for any
remeasurement of the lease liability specified in the lease standard
Depreciation of right-of -use asset
Since the commencement date, the Company shall depreciate the right-of-use asset.
Depreciation shall be made in the month of lease commencement and shall be accounted in
the cost of related asset or profit and loss.
When determining the depreciation method, straight line method is used for depreciation
based on the expected way of consuming of economic benefit related to the right-of-use asset.
The company shall follow the following principles when determining the depreciation life of
the use-right asset: If the ownership of the leased asset can be reasonably determined at the
end of the lease term, depreciation shall be calculated and deducted during the remaining
service life of the leased asset; Where it is not certain that the ownership of the leased asset
can be acquired at the end of the lease term, depreciation shall be calculated during the period
of the shorter of the lease term and the remaining service life of the leased asset.
Impairment
The Company shall depreciate the right-of-use asset subsequently based on the book value
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after impairment loss deduction if impairment is applicable.
23. Intangible assets
The intangible assets of the Group refer to land use right, ERP system software. The cost of
outsourcing intangible assets shall include the purchase price, relevant taxes and other
necessary expenditures directly attributable to intangible assets. The cost invested into
intangible assets by investors shall be determined according to the stated value in the
investment contract or agreement, except for those of unfair value in the contract or
agreement.
Land use right shall be amortized evenly within the amortization period since the remised
date.ERP system softwareand other intangible assets are amortized over the shortest of their
estimated useful life, contractual beneficial period and useful life specified in the law.
Amortization charge is included in the cost of assets or expenses, as appropriate, for the
period according to the usage of the assets. At the end of the year, for definite life of
intangible assets, their estimated useful life and amortization method shall be assessed. Any
change shall be treated as change on accounting estimate.
24. Impairment of long term assets
The Group checks the long-term equity investment, fixed asset, construction-in-progress,
intangible asset with definite life and others on each balance sheet date. When impairment
indicators occur, the Group shall perform impairments test. For goodwill and indefinite life of
intangible assets, impairment test shall be performed irrelevant to any impairment indicators,
if any at the end of every year.
Estimate of recoverable amount is the higher of its fair value less costs to sell and the present
value of the future cash flows expected to be derived from the asset. The group estimates the
recoverable amount based on single asset and estimates the recoverable amount based on the
asset group if the single asset estimation is impossible. Asset group is recognized if the cash
inflow from the group is independent from other asset or asset group.
After impairment test, if the book value exceeds the recoverable amount of the asset or asset
group, the book value shall be adjusted to recoverable amount and the difference should be
recognized as impairment loss. Once any loss of impairment is recognized, it shall not be
reversed in the future accounting periods.
25. Long-term unamortized expenses
Long-term unamortized expenses of the Group refer to expenses which are paid and should be
deferred over the future period. The amortization period shall be more than one year
(excluding 1 year). The expenses should be amortized evenly over the beneficial period. If the
unamortized expense cannot take benefit for the future accounting period, the unamortized
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balance of the unamortized expenses should be transferred into the current profit or loss.
26. Contract liability
An entity’s obligation to transfer goods or services to a customer for which the entity has
received consideration (or the amount is due) from the customer. Contract asset and contract
liability originate from same contact shall be listed at net amount.
27. Employee benefits
Employee compensation comprises short-term benefit, post-employment benefit, termination
benefit and other long-term employee’s benefit.
Employee’s short-term benefits include salary, bonus, allowance, welfare, social insurance,
housing funds, labour union expense, staff training expense, during the period in which the
service rendered by the employees, the actually incurred short term employee benefits shall be
recognized as liability and shall be recognized in P&L or related cost of assets based on
benefit objective allocated from the service rendered by employees.
Post-employment benefits include the basic pension scheme and unemployment insurance etc.
Based on the risk and obligation borne by the Group, post-employment benefits are classified
into defined contribution plan and defined benefit plan. For defined contribution plan, liability
shall be recognized based on the contributed amount made by the Group to separate entity at
the balance sheet date in exchange of employee service for the period and it shall be recorded
into current profit and loss account or relevant cost of assets in accordance with beneficial
objective.
28. Lease obligation
(1) Initial measurement of the lease liability
At the commencement date, a lessee shall measure the lease liability at the present value of
the lease payments that are not paid at that date.
1) The lease payments
The lease payments included in the measurement of the lease liability comprise the following
payments for the right to use the underlying asset during the lease term that are not paid at the
commencement date: ① fixed payments (including in-substance fixed payments) less any
lease incentives receivable; ② variable lease payments that depend on an index or a rate,
initially measured using the index or rate as at the commencement date;③ the exercise price
of a purchase option if the lessee is reasonably certain to exercise that option ④ payments of
penalties for terminating the lease, if the lease term reflects the lessee exercising an option to
terminate the lease. ⑤ amounts expected to be payable by the lessee under residual value
guarantees;
2) Discount rate
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When calculating the present value of the lease payments, interest rate implicit in the lease
shall be used. The rate of interest that causes the present value of the lease payments and the
unguaranteed residual value to equal the sum of the fair value of the underlying asset and any
initial direct costs of the lessor. If the rate cannot be readily determined, the Company shall
use the lessee’s incremental borrowing rate, which is the rate of interest that a lessee would
have to pay to borrow over a similar term, and with a similar security, the funds necessary to
obtain an asset of a similar value to the right-of-use asset in a similar economic environment.
The implicit interest rate is relevant to the followings: ① the company ’ s own situation:
solvency and creditability ② “borrow term” lease term ③ “borrowed fund” amount:
lease liability amount ④ “pledge condition”: nature and quality of underlying assets ⑤
economic environment includes the jurisdiction in which the lessee is located, the currency of
denomination, and when the contract was signed. The Incremental borrowing rate is derived
by the Company based on the bank lending rate and adjusted for the above factors.
(2) Subsequent measurement
After the commencement date, the Company shall measure the lease liability by: ①
increasing the carrying amount to reflect interest on the lease liability; ② reducing the
carrying amount to reflect the lease payments made; ③ remeasuring the carrying amount to
reflect any reassessment or lease modifications.
Interest on the lease liability in each period during the lease term shall be the amount that
produces a constant periodic rate of interest on the remaining balance of the lease liability and
be recognized as in profit or loss unless its capitalization. A constant periodic rate of interest is
the discounting rate used for initial measurement of lease liability, or revised discounting rate
for lease liability remeasurement because of the lease payment or lease change.
(3) Remeasurement
After the lease commencement date, lease payment shall be remeasured if the following
circumstances incurred, and the lease liability shall be remeasured at the present value which
is based on the revised lease payment and revised discounting rate. The Company shall
remeasure the lease liability to reflect changes to the lease payments. A lessee shall recognize
the amount of the remeasurement of the lease liability as an adjustment to the right-of-use
asset. However, if the carrying amount of the right-of-use asset is reduced to zero and there is
a further reduction in the measurement of the lease liability, a lessee shall recognize any
remaining amount of the remeasurement in profit or loss. ① change of in-substance fixed
payments (subject to original discounting rate) ② change of amounts expected to be payable
under residual value guarantees(subject to original discounting rate) ③ change of an index or
a rate used for future lease payments(subject to revised discounting rate) ④ change in
assessment of a buy option(subject to revised discounting rate) ⑤ change in assessment of a
renew option or termination option or actual situation(subject to revised discounting rate).
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29. Provision
When the company has transactions such as commitment to externals, discounting the trade
acceptance, unsettled litigation or arbitration which meets the following criterion, provision
should be recognized: It is the Company's present obligation; carrying out the obligation will
probably cause the Company's economic benefit outflow; the obligation can be reliably
measured.
Provision is originally measured on the best estimate of outflow for paying off the present
obligations, and to consider the risk, uncertainty, time value of monetary relevant to
contingent items. If the time value of monetary is significant, the best estimate will be
determined by discounted cash outflow in the future. At each balance sheet date, the book
value of provision is reviewed and adjustment will be made on the book value if there is any
change, in order to reflect the current best estimate.
30. Share-based payment
An equity-settled share-based payment in exchange for the employee’s services is measured
at the fair value at the date when the equity instruments are granted to the employee. Such fair
value during the vesting period of service or before the prescribed exercisable conditions are
achieved is recognised as relevant cost or expense on a straight-line during the vesting period
based on the best estimated quantity of exercisable equity instruments, accordingly increase
capital reserve.
A cash-settled share-based payment is measured at the fair value at the date at which the
Group incurred liabilities that are determined based on the price of the shares or other equity
instruments. If it is immediately vested, the fair value of the liabilities at the date of grant is
recognised as relevant cost or expense, and corresponding liabilities. If it is exercisable only
when the vesting period of service is expired or the prescribed conditions are achieve, the fair
value of liabilities undertaken by the Group are re-measured at each balance sheet date based
on the best estimate of exercisable situation.
The fair value of the liabilities is re-measured at each balance sheet date. Any changes are
recognised in the profit or loss for the year.
31. Principle of recognition of revenue
The company shall recognize revenue when (or as) the company satisfies a performance
obligation by transferring a promised good or service to a customer. Goods are transferred
when (or as) the customer obtains control of that asset, revenue shall be recognized.
If the contract includes two or more performance obligations, at the inception date of contract,
the company shall allocate the transaction price to each performance obligation identified in
the contract on a relative standalone selling price ratio basis and measure the revenue at the
allocated transaction price to each performance.
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The transaction price is the amount of consideration to which the company expects to be
entitled in exchange for transferring promised goods or services to a customer, excluding
amounts collected on behalf of third parties. The determined transaction price shall be limited
to the extent where the maximum reversal amount of revenue recognized with the least
possibility once the uncertainty related to the variable consideration is removed. The company
shall recognize a refund liability if the entity receives consideration from a customer and
expects to refund some or all of that consideration to the customer. Where a significant
financing component exists in the contract, the transaction price shall be measured at the
assumed price that the payment is made by cash as the client receive the control right of goods
or services. The difference between the promised consideration and the cash selling price shall
be amortized within the contract period at effective interest rate. The company need not take
the financing component into the consideration if the entity expects, at contract inception, that
the period between when the entity transfers a promised good or service to a customer and
when the customer pays for that good or service will be one year or less.
When the company transfers control of a good or service over time, it satisfies a performance
obligation and recognizes revenue over time only if one of the following criteria is met,
otherwise it shall be the performance obligation at a point in time.
(1) the customer simultaneously receives and consumes the benefits provided by the entity’
performance as the entity performs
(2) the company’ performance creates or enhances an asset (for example, work in progress)
that the customer controls as the asset is created or enhanced
(3) the entity’s performance does not create an asset with an alternative use to the entity and
the entity has an enforceable right to payment for performance completed to date
If it is performance obligation over time, the company shall recognize the revenue in
accordance with the progress of performance obligation and measure the progress based on
input method. In the circumstances, the company may not be able to reasonably measure the
progress of a performance obligation, but the company expects to recover the costs incurred
in satisfying the performance obligation. In those circumstances, the entity shall recognize
revenue only to the extent of the costs incurred until such time that it can reasonably measure
the progress of the performance obligation.
It satisfies a performance obligation at a point in time when the control right of goods or
services are received by the client, and revenue shall be recognized. Judging whether the
client has received the control right, the following indicators shall be taken into account:
(1) The entity has a present right to payment for the asset
(2) The legal title to the asset has been transferred to the customer
(3) The company has transferred physical possession of the asset to the client
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(4) The company has transferred the significant risks and rewards of ownership of an asset
to the customer
(5) The customer has accepted the goods or service
The right of receiving the consideration the company entitled to, as the goods or service have
been transferred, shall be listed as contract asset and impairment provision shall be based on
the expected credit loss. Unconditioned right of receiving the consideration shall be listed as
receivable. The obligation shall be listed as contract liability where the company has received
consideration, but services or goods not transferred to the customer.
32. Government grants
A government grant is a monetary asset or non-monetary asset granted by government
without consideration. It shall be recognized when the company complies with the conditions
attaching to the grant and when the company is able to receive the grant. Assets-related
government grant is the government fund obtained by the company for the purpose of
long-term assets purchase and construction or establishment in the other forms.
Income-related grants are the grant given by the government apart from the assets-related
grants. If no grant objective indicated clearly in the government documents, the company
shall judge it according to the principle mentioned above.
Where a government grant is in the form of a transfer of monetary asset, it is measured at the
amount received. Where a government grant is made on the basis of fixed amount or
conclusive evidence indicates relevant conditions for financial support are met and expect to
probably receive the fund, it is measured at the amount receivable. Where a government
grant is in the form of a transfer of non-monetary asset, it is measured at fair value. If fair
value cannot be determined reliably, it is measured at a nominal amount of RMB1 Yuan.
Government grant are classified as assets-related government grants and income-related
grants.
Assets-related government grants are recognized as deferred income and assets are evenly
amortized to profit or loss over the useful life of the related asset.
Any assets are sold, transferred, disposed off or impaired earlier than their useful life expired
date, the remaining balance of deferred income which hasn’t been allocated shall be carried
forward to the income statement when the assets are disposed off.
Income-related government grants that is a compensation for related expenses or losses to be
incurred in subsequent periods are recognized as deferred income and credited to the relevant
period when the related expense are incurred. Government grants relating to compensation
for related expenses or losses already incurred are charged directly to the profit or loss for the
period. Government grants related to daily business, shall be recognized as other income in
accordance with business nature, otherwise, shall be recognized as non-operating expenses.
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If the group obtains the discount interest of policy preferential loans, it shall follow the
accounting standards according to the following principles, in the case of either the financial
allocation of discount interest funds to the lending bank or the financial allocation of
discount interest funds directly to the group.
(1) If interest discount funds is given to the lending bank, and bank provides loans at a
preferential interest rate to the group, the group's borrowing cost is measured at the
actual amount received, according to the loan principal and the preferential interest rate,
work out borrowing expense (or the fair value of the loan is taken as borrowing costs
and work out he borrowing expense at effective interest rate. Any difference between
the amount received and FV is recognized as deferred income. Deferred income is
amortised by using effective interest rate method within the loan term period and offset
borrowing expense).
(2) If interest discount funds are given to the group directly, the preferential interest shall be
offset the borrowing expense.
If any government grant already recognized needs to be returned to the government, the
accounting shall be differed according to the following circumstances:
1) originally recognized as offsetting of related assets' book value, assets book value shall
be adjusted,
2) if any deferred income, book value of deferred income shall be offset, excessive portion
shall be accounted into income statement,
3) Other situation, it shall be accounted into income statement directly.
33. Deferred tax assets and deferred tax liabilities
The deferred income tax assets or the deferred income tax liabilities should be recognized
according to the differences (temporary difference) between the carrying amount of the assets
or liabilities and its tax base. Deferred tax assets shall be respectively recognised for
deductible tax losses that can be carried forward in accordance with tax law requirements for
deduction of taxable income in subsequent years. No deferred tax liabilities shall be
recognized for any temporary difference arising from goodwill initially recognition. No
deferred tax assets or liabilities shall be recognized for any difference arising from assets or
liabilities initial recognition on non-business combination with no effect on either accounting
profit or taxable profit (or deductible tax loss). At the balance sheet date, deferred tax assets
and deferred tax liabilities are measured at the tax rates that are expected to apply to the
period when the asset is realised or liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future taxable profit
will be available to offset the deductible temporary difference, deductible loss and tax
reduction.
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34. Lease
(1) Lease identification
Lease: A contract, or part of a contract, that conveys the right to use an asset (the underlying
asset) for a period of time in exchange for consideration. At inception of a contract, the entity
shall assess whether the contract is, or contains, a lease. A contract is, or contains, a lease if
the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration. In order to confirm whether the right to control the use of an
identified asset for a period of time has been conveyed, the Company assess whether the client
in the contract has the right to obtain substantially all of the economic benefits from use of the
asset throughout the period of use and has the right to direct the use of the identified asset
during the period of using the identified asset.
For a contract that is, or contains several leases, the Company shall separate the contract and
account each lease separately. The Company shall account for each lease component within
the contract as a lease separately from non-lease components of the contract if the contract
contains lease and non-lease components.
(2) As a lessee
1) Recognition
At the commencement date, the Company as a lessee shall recognize a right-of-use asset and a
lease obligation. Recognition and measurement of right-of-use asset and a lease obligation is
referred to 23. Right-of -use asset and 29. Lease obligation
2) Lease modification
Lease modification is a change in the scope of a lease, or the consideration for a lease, that
was not part of the original terms and conditions of the lease (for example, adding or
terminating the right to use one or more underlying assets, or extending or shortening the
contractual lease term). Lease modification effective date is the date when both parties agree
to a lease modification.
The company shall account for a lease modification as a separate lease if both condition are
satisfied: ① the modification increases the scope of the lease by adding the right to use one
or more underlying assets or extending the contractual lease term. ② the consideration for
the lease increases by an amount commensurate with the stand-alone price for the increase in
scope or the contractual lease term extension and any appropriate adjustments to that
stand-alone price to reflect the circumstances of the particular contract.
For a lease modification that is not accounted for as a separate lease, at the effective date of
the lease modification the Company shall: allocate the consideration in the modified contract;
determine the lease term of the modified lease and remeasure the lease liability by
discounting the revised lease payments using a revised discount rate. The Company used the
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interest rate implicit in the lease for the remainder of the lease term as discounting rate. The
lessee’s incremental borrowing rate at the effective date of the modification will be used if
the interest rate implicit in the lease cannot be readily determined. The effect on above
adjustments of lease liability shall be accounted respectively in accordance with the
followings: ①decreasing the carrying amount of the right-of-use asset to reflect the partial or
full termination of the lease for lease modifications that decrease the scope of the lease. The
lessee shall recognize in profit or loss any gain or loss relating to the partial or full
termination of the lease. ② making a corresponding adjustment to the right-of-use asset for
all other lease modifications.
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3) Short-term lease and low value asset lease
The Company has chosen not to recognize the short-term lease (lease term less than 12
months) and low value asset when it is single leased new asset (no more than 40k in amount).
In this case, right-of-use asset and lease liability shall not be recognized and lease payment
will be accounted directly in profit or loss or on the straight-line basis in profit or loss.
(3) As a lessor
Based on the assessment of (1) lease contract or lease contract contained, as a lessor, at the
inception date, lease is classified as finance lease and operating lease.
A lease is classified as a finance lease if it transfers substantially all the risks and rewards
incidental to ownership of an underlying asset. Other lease is classified as an operating lease
unless a finance lease.
Examples of situations that individually or in combination would normally lead to a lease
being classified as a finance lease are: ①the lease transfers ownership of the underlying asset
to the lessee by the end of the lease term; ② the lessee has the option to purchase the
underlying asset at a price that is expected to be sufficiently lower than the fair value at the
date the option becomes exercisable for it to be reasonably certain, at the inception date, that
the option will be exercised; ③the lease term is for the major part of the economic life of the
underlying asset even if title is not transferred(not shorter than 75% of leased asset life); ④
at the inception date, the present value of the lease payments amounts to at least substantially
all of the fair value of the underlying asset( not lower than 90% of leased asset FV); ⑤ the
underlying asset is of such a specialized nature that only the lessee can use it without major
modifications. Indicators of situations that individually or in combination could also lead to a
lease being classified as a finance lease are: ①if the lessee can cancel the lease, the lessor’s
losses associated with the cancellation are borne by the lessee; ② gains or losses from the
fluctuation in the fair value of the residual accrue to the lessee; ③the lessee has the ability to
continue the lease for a secondary period at a rent that is substantially lower than market rent.
1) Financing lease
Initial measurement
At the commencement date, the Company shall recognize the lease payment receivable and
derecognize of finance lease asset. When initially measuring the lease payment receivable, net
lease investment value shall be used for the lease payment receivable.
Net lease investment value equals to the any residual value guarantees plus the PV of undue
lease receivable discounted at the interest rate implicit in the lease. Lease receivable is that
lessor conveys the right to use an asset (the underlying asset) for a period of time in exchange
for consideration including ① fixed payments (including in-substance fixed payments) less
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Wafangdian Bearing Company Limited 2021 Annual Report
any lease incentives receivable;② variable lease payments that depend on an index or a rate,
initially measured using the index or rate as at the commencement date;③ the exercise price
of a purchase option if the lessee is reasonably certain to exercise that option ④ payments of
penalties for terminating the lease, if the lease term reflects the lessee exercising an option to
terminate the lease.⑤ amounts expected to be payable by the lessee, independent 3rd party
relevant to the lessee with the economic ability to guarantee under residual value guarantees;
Subsequent measurement
The Company shall recognize interest income over the lease term based on a constant
periodic rate, which is the implicit discounting rate of return on the lessor’s net investment in
the lease.( if sublease applicable, implicit rate of sublease can not be determined, original
discounting rate of lease shall be adopted after adjustment for initial direct expense relevant to
sublease) or when finance lease modification is not accounted as an separate lease, adjusted
discounting rate will be adopted for the lease since it is classified as finance lease assuming
modification took effect at the commencement date of lease.
Interest on the lease liability in each period during the lease term shall be the amount that
produces a constant periodic rate of interest on the remaining balance of the lease liability and
be recognized as in profit or loss unless its capitalization. A constant periodic rate of interest
is the discounting rate used for initial measurement of lease liability, or revised discounting
rate for lease liability remeasurement because of the lease payment or lease modification.
Lease modification
The company shall account for a finance lease modification as a separate lease if both
condition are satisfied: ① the modification increases the scope of the lease by adding the
right to use one or more underlying assets or extending the contractual lease term. ② the
consideration for the lease increases by an amount commensurate with the stand-alone price
for the increase in scope or the contractual lease term extension and any appropriate
adjustments to that stand-alone price to reflect the circumstances of the particular contract.
For a finance lease modification that is not accounted for as a separate lease, if the lease
would have been classified as an operating lease had the modification been in effect at the
inception date, the lessor shall: account for the lease modification as a new lease from the
effective date of the modification; and measure the carrying amount of the underlying asset as
the net investment in the lease immediately before the effective date of the lease modification.
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Wafangdian Bearing Company Limited 2021 Annual Report
2) Operating lease
Lease income
Lease payment received shall be recognized as lease income on a straight-line basis within the
period.
Incentive measures
If the lease-free period is provided, the company will allocate the total lease income in the
whole lease period on the straight-line basis regardless of lease-free period, and the lease
income shall be recognized during the rent-free period. If the company bears some expenses
of the lessee, such expenses shall be deducted from the total lease income and the remaining
balance of lease income after deducting expenses shall be allocated within the lease period.
Initial direct expense
The Company shall add initial direct costs incurred in obtaining an operating lease to the
carrying amount of the underlying asset and recognize those costs as an expense over the
lease term on the same basis as the lease income.
Depreciation
The depreciation policy for depreciable underlying fixed assets subject to operating leases
shall be consistent with the lessor ’ s normal depreciation policy for similar assets.
Amortization for other underlying assets subject to operating lease shall be on reasonable
systematic basis.
Variable lease payment
The variable lease payments obtained by the company related to operating leases, which are
not included in the lease payment received, shall be included in the current profit and loss
when actually incurred
Operating lease modification
A lessor shall account for a modification to an operating lease as a new lease from the
effective date of the modification, considering any prepaid or accrued lease payments relating
to the original lease as part of the lease payments for the new lease.
(4) special lease
sales and lease back
1) as a seller and a lessee
In accordance with Revenue Standard-No.14 of Accounting Standards for Business
Enterprises, the Company assesses whether the transfer of the asset is a sale. If the transfer of
assets is not a sale, the Company shall continue to recognize the transferred assets and at the
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Wafangdian Bearing Company Limited 2021 Annual Report
same time recognize a financial liability equal to the transfer income, and recognize, measure
the financial liability in accordance with the Recognition and Measurement of Financial
Instruments Standard- No. 22 - Accounting Standards for Business Enterprises. If the transfer
of assets is a sale, the Company shall measure the right-of-use asset arising from the
leaseback at the proportion of the previous carrying amount of the asset that relates to the
right of use retained by the Company. Accordingly, the Company shall recognize only the
amount of any gain or loss that relates to the rights transferred to the buyer-lessor.
2) as a buyer and a lessor
If the transfer of assets is not a sale, the Company shall not recognize the transferred asset and
shall recognize a financial asset equal to the transfer proceeds. It shall account for the
financial asset applying Recognition and Measurement of Financial Instruments Standard- No.
22 - Accounting Standards for Business Enterprises. If the transfer of assets is a sale, the
Company shall account for the purchase of the asset applying applicable Standards.
35. Change of Significant Accounting Policy& Accounting Estimate
(1) Change in significant accounting policies
In December 2018, the Ministry of Finance revised and issued the Accounting Standards for
Business Enterprises No. 21 - Leases (Cai Kuai [2018] No. 35) (hereinafter referred to as the
“ New Lease Standards ” ). The relevant accounting standards have been adopted, and the
processing has been carried out in accordance with the relevant connection regulations.
The Group adjusts the amount of retained earnings and other related items in the financial
statements at the beginning of the year of initial implementation based on the cumulative
impact of the initial implementation of the new lease standards, and does not adjust the
comparable period information. For operating leases prior to the date of initial application, the
Group measures the lease liability based on the present value of the remaining lease payments
discounted at the incremental borrowing rate on the date of initial application, and for all
leases at an amount equal to the lease liability and based on prepaid rent make necessary
adjustments to measure the right-of-use asset.
The Group's implementation of the new lease standards has no impact on the balance sheet as
of January 1, 2021.
(2) Change in significant accounting estimates
Since January 1, 2019, the Group has implemented the Accounting Standards for Business
Enterprises No. 22 - Recognition and Measurement of Financial Instruments, Accounting
Standards for Business Enterprises No. 23 - Transfer of Financial Assets, and Accounting
Standards for Business Enterprises newly revised by the Ministry of Finance. No. 24 -
Hedging" and "Accounting Standards for Business Enterprises No. 37 - Presentation of
Financial Instruments" ("New Financial Instrument Standards"), in order to more reasonably
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Wafangdian Bearing Company Limited 2021 Annual Report
reflect the credit risk of current and future receivables influenced by the company's financial
status and operating results, the Group calculates the “age migration rate” and “expected
credit loss rate” based on historical data, and re-calculates the “expected credit loss rate”
based on the impact of the industry environment, economic environment and forward-looking
information. Evaluate. According to the “Accounting Standards for Business Enterprises No.
28 - Accounting Policies, Changes in Accounting Estimates, and Correction of Errors”, this
change in accounting estimates adopts the prospective application method and will not have
any impact on the financial position and operating results of the Group in previous years.
Major changes:
Expected credit loss rate of receivables:
Aging Proportion before change Proportion after change
Within 1 year 1.00% 5.00%
1-2 years 5.00% 10.00%
2-3 years 20.00% 20.00%
3-4years 40.00% 50.00%
4-5years 60.00% 80.00%
Over 5 years 100.00% 100.00%
Expected credit loss rate of other receivables:
Aging Proportion before change Proportion after change
Within 1 year 2.00% 5.00%
1-2 years 10.00% 10.00%
2-3 years 20.00% 20.00%
3-4years 40.00% 50.00%
4-5years 50.00% 80.00%
Over 5 years 100.00% 100.00%
Impact of changes in accounting estimates
Contents of changes in accounting estimates on total profit for the year
Change expected credit loss rate 40,238,707.02
Total 40,238,707.02
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Wafangdian Bearing Company Limited 2021 Annual Report
VI. Taxation
1. The main applicable tax and rate to the Group as follows:
Tax Tax base Tax rate
Value-added tax (VAT) Sales revenue or Purchase 13%,9%,6%,5%
City construction tax Value-added tax payables 7%
Education surcharge Value-added tax payables 3%
Local education surcharge Value-added tax payables 2%
Enterprise income tax(EIT) Current period taxable profit 15% or 25%
70% of cost of own property or revenue
Real estate tax 1.2% or 12%
from leasing property
RMB 6 per square
Land use tax Land using right area
meter
Notes: EIT rate for different tax payer
Tax principles EIT rate
Wafangdian Bearing Co., Ltd 15%
Wazhou Liaoyang Bearing construction Co., Ltd 15%
Dalian Wazhou Precision Motor Car Bearing Company Limited 25%
Wazhou Precision of Spherical Roller Bearings (Wafangdian) Co., Ltd 25%
2. Tax preference
The company obtained the qualification of high and new technology enterprises at 3
December, 2020.The Certificate No is GR202021200656, and the validity duration is three
years. The subsidiary of the Company, Wazhou Liaoyang Bearing construction Co.,Ltd
obtained the qualification of high and new technology enterprises at 15 September, 2020. The
Certificate No is GR202021000550 and the validity duration is three years. According to the
tax law, the company can be granted for the preferential tax policy of enterprise income tax rate
of 15% in three years.
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Wafangdian Bearing Company Limited 2021 Annual Report
VII. Notes to Consolidated Financial Statements
The following disclosure date on this financial statement without special indication,“opening”
refers to January 1, 2021; “closing” refers to December 31, 2021; “current period” refers
to the period from January 1, 2021 to December 31, 2021; and “last period” refers to the
period from January 1, 2020 to December 31, 2020; with the currency unit RMB.
1. Cash and cash in bank
Item Closing Balance Opening Balance
Cash on hand 8,510.17 33,102.75
Cash in bank 209,839,386.25 163,695,697.22
Other cash and cash equivalents 76,628,805.27 30,423,480.11
Total 286,476,701.69 194,152,280.08
Notes: At year end, other cash and cash equivalents are all security deposits for bank
acceptance notes.
2. Tradable financial asset
Item Closing Balance Opening Balance
Financial asset measured at fair value through P&L 322,037.93 228,046.00
Debt instrument investment - -
Equity instrument investment 322,037.93 228,046.00
Others - -
Total 322,037.93 228,046.00
3. Notes receivable
(1) Category of notes receivable
Items Closing Balance Opening Balance
Bank acceptance notes 445,227,090.19 284,965,612.20
Trade acceptance notes 62,744,043.50 131,078,966.28
Total 507,971,133.69 416,044,578.48
(2) Pledged notes receivable up to the end of year.
Items Closing pledged amount
Bank acceptance notes -
Trade acceptance notes 19,291,502.14
Total 19,291,502.14
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Wafangdian Bearing Company Limited 2021 Annual Report
(3) Notes receivable endorsed or discounted but not mature at the end of year
Closing amount no more Closing amount still
Item
recognized recognized
Bank acceptance notes - 410,523,547.54
Trade acceptance notes - 39,124,045.76
Total - 449,647,593.30
(4) Transfer to receivable as the drawer’s default of performance of obligation
At the year end, notes receivable transferred to receivable is 1,930,000.00 Yuan in total.
(5) Bad debt provision of notes receivable accrued, collected and reversed
Opening Change during the year Closing
Category
balance Accrued Collected/reversed Written-off Balance
Portfolio of trade
acceptance notes
6,351,580.59 81,894.01 3,454,940.73 - -
from non-related
party
Total 6,351,580.59 81,894.01 3,454,940.73 - -
4. Accounts receivable
(1) Category of accounts receivable
Closing Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Accounts receivable
with individual bad 87,004,581.38 7.56 87,004,581.38 100.00 -
debt provision
Accounts receivable
with bad debt
provision based on 1,064,444,421.51 92.44 64,990,113.11 — 999,454,308.40
the characters of
credit risk portfolio
-Aging portfolio 889,978,615.10 77.29 64,990,113.11 7.30 824,988,501.99
-Related party 174,465,806.41 15.15 - - 174,465,806.41
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Wafangdian Bearing Company Limited 2021 Annual Report
Closing Balance
Items Booking balance Provision
Booking value
Amount % Amount %
portfolio
Total 1,151,449,002.89 100.00 151,994,694.49 — 999,454,308.40
(Continued)
Opening Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Accounts receivable
with individual bad 73,132,754.28 6.79 73,132,754.28 100.00 -
debt provision
Accounts receivable
with bad debt
provision based on 1,004,373,533.99 93.21 28,745,442.87 — 975,628,091.12
the characters of
credit risk portfolio
-Aging portfolio 723,934,304.67 67.19 28,745,442.87 3.97 695,188,861.80
-Related party
280,439,229.32 26.03 - - 280,439,229.32
portfolio
Total 1,077,506,288.27 100.00 101,878,197.15 — 975,628,091.12
1) Bad debt provision for accounts receivable at the end of year based on individual
Closing Balance
Proportion Reasons for
Debtors name Accounts Provision for
(%) provision
receivable bad debts
Wazhou Group Special Steel Co., Ltd 5,092,669.00 5,092,669.00 100.00 bankrupt
Anhui Conch Kawasaki Equipment
4,093,012.86 4,093,012.86 100.00 uncollectable
Manufacturing Co., Ltd
Liaoning Yinheng Galvanized Colored
3,213,308.67 3,213,308.67 100.00 uncollectable
Coated Steel Sheet Co. Ltd
Shandong Hengji New Materials Co., Ltd 2,284,666.96 2,284,666.96 100.00 uncollectable
Shandong Yuanda Board Technology Co.,
1,804,722.77 1,804,722.77 100.00 uncollectable
Ltd
HBIS Company Limited Handan Branch 1,608,611.42 1,608,611.42 100.00 uncollectable
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Wafangdian Bearing Company Limited 2021 Annual Report
Closing Balance
Proportion Reasons for
Debtors name Accounts Provision for
(%) provision
receivable bad debts
An Gang steel Co.,Ltd 1,595,050.69 1,595,050.69 100.00 uncollectable
Bazhou Tianli Tube Co., Ltd 1,325,600.76 1,325,600.76 100.00 uncollectable
Zhejiang Yesheng New Material Co. Ltd 1,301,760.00 1,301,760.00 100.00 uncollectable
Yingkou Iron & Steel Co. Ltd 1,256,973.91 1,256,973.91 100.00 uncollectable
Heilongjiang Longmei Logistics Co., Ltd 1,192,070.49 1,192,070.49 100.00 uncollectable
Sinosteel Xi'an Heavy Machinery Co., Ltd 1,065,321.47 1,065,321.47 100.00 uncollectable
Shantui Construction Machinery Co., Ltd 1,047,576.65 1,047,576.65 100.00 uncollectable
HenanTaihang Vibration Machinery Co.,
989,207.41 989,207.41 100.00 uncollectable
Ltd
Donghai New Material Co. Ltd 942,558.20 942,558.20 100.00 uncollectable
Heilongjiang Longmei Logistics Co., Ltd 942,070.49 942,070.49 100.00 uncollectable
Shanghai Jieru Heavy Industry Mechanical
923,603.80 923,603.80 100.00 uncollectable
Equipment Co., Ltd
Tangshan Guofeng Iron and Steel Co. LTD 883,297.41 883,297.41 100.00 uncollectable
Jilin Chengzhong Auto Parts Co., Ltd 872,874.22 872,874.22 100.00 uncollectable
Shandong Changhua Machinery
846,943.06 846,943.06 100.00 uncollectable
Technology Co., Ltd
Heilongjiang Longmei Hongtai
835,000.00 835,000.00 100.00 uncollectable
International Trade Co., Ltd
China Second Heavy Machinery Group
(Deyang) Wanxin Engineering Equipment 795,887.92 795,887.92 100.00 uncollectable
Co. Ltd
Benxi Beiying Steel (Group) Co. Ltd 775,804.98 775,804.98 100.00 uncollectable
Bengang Steel Plates Co., Ltd 770,000.00 770,000.00 100.00 uncollectable
Materials Branch of NHI 739,585.80 739,585.80 100.00 uncollectable
Shandong Yuntong New Material
711,438.94 711,438.94 100.00 uncollectable
Technology Co. Ltd
Dongfeng Transmission Co.,Ltd 704,098.23 704,098.23 100.00 uncollectable
Shanghai Weiqiang Heavy Industry
673,595.42 673,595.42 100.00 uncollectable
Mechanic Co.,Ltd
Dalian Tianyuan Motor Co.,Ltd 666,383.31 666,383.31 100.00 uncollectable
Shaanxi Hande Axle Co., Ltd. Xi'an
644,075.33 644,075.33 100.00 uncollectable
Branch
Dandong Shuguang Heavy Axle Co., Ltd 642,833.42 642,833.42 100.00 uncollectable
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Wafangdian Bearing Company Limited 2021 Annual Report
Closing Balance
Proportion Reasons for
Debtors name Accounts Provision for
(%) provision
receivable bad debts
Hangzhou Advance Gearbox Group Co.,
634,135.81 634,135.81 100.00 uncollectable
Ltd
Wolong Electric Huai 'an Qingjiang Motor
598,873.78 598,873.78 100.00 uncollectable
Co. Ltd
Xingtai Iron and Steel Co., Ltd 590,148.98 590,148.98 100.00 uncollectable
Qinghai Lufeng New Material Co., Ltd 525,743.44 525,743.44 100.00 uncollectable
Shandong Guanzhou Co., Ltd 523,387.16 523,387.16 100.00 uncollectable
Xi 'an Zhuoshibo Hydraulic Engineering
514,938.87 514,938.87 100.00 uncollectable
Co., Ltd
Dongfeng Commercial Vehicle Co., Ltd 486,019.87 486,019.87 100.00 uncollectable
Gaotang Lvyin Environmental Protection
477,691.81 477,691.81 100.00 uncollectable
Technology Co. Ltd
Mudanjiang Reduction Gears Factory 467,905.65 467,905.65 100.00 uncollectable
Hejin Hongda Special Steel Co., Ltd 466,523.00 466,523.00 100.00 uncollectable
Factory 07-256 460,854.77 460,854.77 100.00 uncollectable
Beijing Jingcheng Star Technology
450,000.00 450,000.00 100.00 uncollectable
Development Co., Ltd
Hunan Chaoyang Mechanic & Electric
446,627.60 446,627.60 100.00 uncollectable
Co.,Ltd
Liaoyang Sudong Trade Co.,Ltd 444,946.96 444,946.96 100.00 uncollectable
Shandong Huali Motor Group Suzhou
442,919.83 442,919.83 100.00 uncollectable
Manufacturing Co., Ltd
XEMC 416,549.65 416,549.65 100.00 uncollectable
Shenji Group Kunming Machine Tool Co.,
406,076.68 406,076.68 100.00 uncollectable
Ltd
Xuzhou Xugong Material Supply Co., Ltd 374,629.55 374,629.55 100.00 uncollectable
Baoji Zhongyi Industry and Trade Co. Ltd 374,594.68 374,594.68 100.00 uncollectable
Boshan Motor Group Co.,Ltd 373,700.65 373,700.65 100.00 uncollectable
Qingdao Shuangxing Tire Industry Co. Ltd 371,251.58 371,251.58 100.00 uncollectable
Shandong Quanlin Group Co. Ltd 370,734.92 370,734.92 100.00 uncollectable
Liaohe Mechanic Co.,Ltd 362,280.30 362,280.30 100.00 uncollectable
Yangzhou Hengrun Marine Heavy Industry
362,006.00 362,006.00 100.00 uncollectable
Co., Ltd
Nanjing Astronomical Light of the
National Astronomical Observatory of the 352,660.01 352,660.01 100.00 uncollectable
Chinese Academy of Sciences
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Wafangdian Bearing Company Limited 2021 Annual Report
Closing Balance
Proportion Reasons for
Debtors name Accounts Provision for
(%) provision
receivable bad debts
Tai'an Tianhua Economic and Trade Co.,
346,554.01 346,554.01 100.00 uncollectable
Ltd
Guanxian Hongshun Composite Materials
343,820.00 343,820.00 100.00 uncollectable
Co., Ltd
Yichang Guocheng Coating Plate Co., Ltd 339,600.00 339,600.00 100.00 uncollectable
Pingdingshan Tianan Coal Industry Co.,
334,919.73 334,919.73 100.00 uncollectable
Ltd
Langfang Shenhua Industry and Trade Co.,
322,645.16 322,645.16 100.00 uncollectable
Ltd
Hengfengtai Precision Machinery Co., Ltd 318,948.38 318,948.38 100.00 uncollectable
Shandong Tancheng Xinya Light Industry
318,488.87 318,488.87 100.00 uncollectable
Machinery Co. Ltd
Northeast Special Steel Group Beiman
315,004.72 315,004.72 100.00 uncollectable
Special Steel Co. Ltd
Taicang Hu Tai Chang’e Paper Equipment
310,361.32 310,361.32 100.00 uncollectable
Co. Ltd
Shaanxi Hande Axle Co., Ltd 309,157.59 309,157.59 100.00 uncollectable
Shandong Quanlin Straw Utilization Co.
307,409.46 307,409.46 100.00 uncollectable
Ltd
Harbin Hakuo Electric Power Technology
303,005.32 303,005.32 100.00 uncollectable
Co. Ltd
Hebei Jinxi Iron & Steel Group Co. Ltd 298,307.04 298,307.04 100.00 uncollectable
Minmetals Yingkou Medium Plate Co., Ltd 294,407.32 294,407.32 100.00 uncollectable
Zhongcai Zibo Heavy Machinery Co. Ltd 293,817.58 293,817.58 100.00 uncollectable
Sichuan Ningjiang Shanchuan Machinery
288,157.60 288,157.60 100.00 uncollectable
Co., Ltd
Ningbo Fan Co., Ltd 287,783.07 287,783.07 100.00 uncollectable
Jiangsu Xinrui Gear System Co. Ltd 286,949.88 286,949.88 100.00 uncollectable
Erzhong Group (Deyang) Jingheng
286,935.03 286,935.03 100.00 uncollectable
Transmission Equipment Co., Ltd
Siemens Electric Motor (China) Co., Ltd 284,110.82 284,110.82 100.00 uncollectable
Taiyuan Heavy Industry Co., Ltd 275,596.93 275,596.93 100.00 uncollectable
Shandong Guanpeng Latten Co.,Ltd 273,748.84 273,748.84 100.00 uncollectable
Baotou Tianlihuanfa Mechanic & Electric
273,597.67 273,597.67 100.00 uncollectable
Co.,Ltd
Anhui Jianghuai Automobile Group Co.,
264,521.67 264,521.67 100.00 uncollectable
Ltd. Light Commercial Vehicle Branch
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Wafangdian Bearing Company Limited 2021 Annual Report
Closing Balance
Proportion Reasons for
Debtors name Accounts Provision for
(%) provision
receivable bad debts
Hejin Huaxinyuan Iron and Steel Co., Ltd 255,598.00 255,598.00 100.00 uncollectable
Tangshan Huahang Electromechanical
247,147.40 247,147.40 100.00 uncollectable
Innovation Equipment Co., Ltd
Jinzhai Pengfei Steel Structure Steel Frame
246,400.00 246,400.00 100.00 uncollectable
Engineering Co., Ltd
Harbin Railway Bureau Industrial Office
245,268.09 245,268.09 100.00 uncollectable
Harbin Locomotive
Zhibo Boshanqianjin Reduction Gears
244,579.32 244,579.32 100.00 uncollectable
Co.,Ltd o. Ltd
Yanggu Dangyu Sheet Co., Ltd 243,280.00 243,280.00 100.00 uncollectable
Tonghua Iron & Steel Co. Ltd 240,568.39 240,568.39 100.00 uncollectable
Shijiazhuang Qiangda Slurry Pump
238,749.98 238,749.98 100.00 uncollectable
Co.,Ltd
Inner Mongolia Hongji Technology New
231,610.81 231,610.81 100.00 uncollectable
Energy Co., Ltd
Yichang jiandao trade co., Ltd 226,995.16 226,995.16 100.00 uncollectable
Taizhong Coal Machine Co.,Ltd 215,142.12 215,142.12 100.00 uncollectable
Qinhuangdao Shouqin Metal Material Co.
213,911.48 213,911.48 100.00 uncollectable
Ltd
Liaoning Renda Equipment Technology
211,464.69 211,464.69 100.00 uncollectable
Co., Ltd
Chongqing Iron Horse Industry Group Co.,
211,196.98 211,196.98 100.00 uncollectable
Ltd
SAIC IVECO Hongyan Commercial
210,860.60 210,860.60 100.00 uncollectable
Vehicle Co., Ltd
Fujian Wuhang Stainless Steel Products
202,936.71 202,936.71 100.00 uncollectable
Co., Ltd
Taizhou Luqiaomei Motor Car Co.,Ltd 200,562.00 200,562.00 100.00 uncollectable
Tianjin Rongtai Advanced Composite
200,000.00 200,000.00 100.00 uncollectable
Material Co.,Ltd
Hebei Wenfeng Iron & Steel Co. Ltd 197,979.65 197,979.65 100.00 uncollectable
Suzhou Zhanwang Mechanic & Electric
192,173.26 192,173.26 100.00 uncollectable
Co.,Ltd
Zhucheng Shuguang Axle Co., Ltd 191,824.38 191,824.38 100.00 uncollectable
Hejin Hongda Special Steel Co., Ltd 190,850.01 190,850.01 100.00 uncollectable
Guangzhou Motor Co.,Ltd 189,128.68 189,128.68 100.00 uncollectable
Jiangsu Xuzhou Forging Machine Tool
188,906.34 188,906.34 100.00 uncollectable
Factory Group Co., Ltd
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Wafangdian Bearing Company Limited 2021 Annual Report
Closing Balance
Proportion Reasons for
Debtors name Accounts Provision for
(%) provision
receivable bad debts
Hubei Wazhou Xinsheng Technology Co.,
188,136.00 188,136.00 100.00 uncollectable
Ltd
Hanbang (Jiangyin) Petrochemical Co.,
187,499.99 187,499.99 100.00 uncollectable
Ltd
Handan Sida Electric Co., Ltd 186,191.80 186,191.80 100.00 uncollectable
Inner Mongolia Jitong Railway (Group)
185,172.55 185,172.55 100.00 uncollectable
Co., Ltd
Nanjing Light Industry Machinery Factory 185,079.54 185,079.54 100.00 uncollectable
Jiangsu Suye Heavy Machinery
184,530.46 184,530.46 100.00 uncollectable
Manufacturing Co. LTD
Shanghai Sule Textile Machinery Co., LTD 176,984.10 176,984.10 100.00 uncollectable
Shijiazhuang Electric Machinery Co., Ltd 172,543.31 172,543.31 100.00 uncollectable
Xuzhou Zhongcai Equipment Heavy
170,930.05 170,930.05 100.00 uncollectable
Machinery Co. Ltd
Taiyuan Tongze Heavy Industry Co., Ltd 170,178.79 170,178.79 100.00 uncollectable
Shenyang Sanming Heavy Industry
164,107.39 164,107.39 100.00 uncollectable
Machinery Co., Ltd
Xuzhou Meichi Vehicle and Bridge Co.,
163,037.45 163,037.45 100.00 uncollectable
Ltd
Shanghai Zhongli Machinery
161,388.95 161,388.95 100.00 uncollectable
Manufacturing Co., Ltd
Siping Blower Co., Ltd 160,053.21 160,053.21 100.00 uncollectable
Anyang Coal Mine Electrical Machinery
159,537.60 159,537.60 100.00 uncollectable
Factory
Xiangdian Heavy Equipment Co., Ltd 158,854.17 158,854.17 100.00 uncollectable
Zhongshan Weite Motor Co., Ltd 158,593.79 158,593.79 100.00 uncollectable
Shanxi Electric Machinery Factory 158,021.97 158,021.97 100.00 uncollectable
Nanjing Iron and Steel Co., Ltd 156,451.09 156,451.09 100.00 uncollectable
Hubei Quanli Machinery Group Co. Ltd 152,489.82 152,489.82 100.00 uncollectable
Anshan Iron and Steel Machinery
Development Metallurgical Electric 150,734.55 150,734.55 100.00 uncollectable
Appliance Repair Factory
Wuxi Yutong Bearing Co., Ltd 149,427.42 149,427.42 100.00 uncollectable
Wafangdian Hongda Constant Velocity
148,466.32 148,466.32 100.00 uncollectable
Joint Manufacturing Co., Ltd
Xinxiang Risheng CNC Bearing
141,953.78 141,953.78 100.00 uncollectable
Equipment Co., Ltd
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Closing Balance
Proportion Reasons for
Debtors name Accounts Provision for
(%) provision
receivable bad debts
Yixing Chaoqun Machinery Equipment
138,484.00 138,484.00 100.00 uncollectable
Co., Ltd
Shandong Maiteli Heavy Machinery Co.,
137,806.10 137,806.10 100.00 uncollectable
Ltd
Dalian Hongyun Transmission Technology
135,433.03 135,433.03 100.00 uncollectable
Development Co., Ltd
Anhui Anfeng Fan Co., Ltd 131,355.36 131,355.36 100.00 uncollectable
Shanghai Sule Textile Machinery Co., Ltd 126,752.70 126,752.70 100.00 uncollectable
Shenyang Qunding Machinery Equipment
126,286.35 126,286.35 100.00 uncollectable
Co., Ltd
Tangshan Dunshi Machinery
124,474.60 124,474.60 100.00 uncollectable
Manufacturing Co. Ltd
Nantong Hengrong Machine Pump Factory
123,407.18 123,407.18 100.00 uncollectable
Co. Ltd
Guangxi Tianyang Huamei Paper Co. Ltd 122,629.00 122,629.00 100.00 uncollectable
Hubei Tongfang High-tech Pump Co., Ltd 121,727.00 121,727.00 100.00 uncollectable
Shaoyang Textile Machinery Co., Ltd 121,665.02 121,665.02 100.00 uncollectable
Harbin First Machinery Manufacturing
121,033.33 121,033.33 100.00 uncollectable
Group Co., Ltd
Yangmei Xinzhou General Machinery Co.,
120,447.88 120,447.88 100.00 uncollectable
Ltd
Anhui Fuma Auto Parts Group Co., Ltd 119,386.14 119,386.14 100.00 uncollectable
Zibo Geer Gear Co., Ltd 115,538.40 115,538.40 100.00 uncollectable
Wuxi Shangji Numerical Control Co., Ltd 114,412.20 114,412.20 100.00 uncollectable
China Nonferrous Metals (Shenyang)
114,132.29 114,132.29 100.00 uncollectable
Metallurgical Machinery Co., Ltd
Nantong Electric Machinery Factory 113,634.74 113,634.74 100.00 uncollectable
Shanghai Yaotai Engineering Technology
113,054.61 113,054.61 100.00 uncollectable
Co., Ltd
Qinhuangdao Huaye Motor Co., Ltd 111,564.44 111,564.44 100.00 uncollectable
Beijing Institute of Machinery Industry
111,484.00 111,484.00 100.00 uncollectable
Automation
Shandong Baoding Coal Coking Co. Ltd 110,528.29 110,528.29 100.00 uncollectable
Shenyang SAIC Jinbei Automobile
109,908.15 109,908.15 100.00 uncollectable
Transmission Co. Ltd
Dalian Dalma Motor Co., Ltd 109,553.86 109,553.86 100.00 uncollectable
Huinan Steel Rolling Co., Ltd 108,910.23 108,910.23 100.00 uncollectable
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Closing Balance
Proportion Reasons for
Debtors name Accounts Provision for
(%) provision
receivable bad debts
Tongchuan Explosion-Proof Electric
105,476.07 105,476.07 100.00 uncollectable
Machine Factory
Chongqing Jiangbei Machinery Co., Ltd 104,775.61 104,775.61 100.00 uncollectable
Fujian Nandian Electric Co., Ltd 101,940.70 101,940.70 100.00 uncollectable
Bankrupt or
Others 14,647,628.80 14,647,628.80 100.00
uncollectable
Total 87,004,581.38 87,004,581.38 — —
2) Accounts receivable with the bad debt provisions under accounting aging analysis method
Closing Balance
Aging
Accounts receivable Provision for bad debts Proportion (%)
Within 1 year 721,909,610.98 36,095,517.80 5.00
1-2 years 132,196,372.73 13,219,637.27 10.00
2-3 years 17,808,640.63 3,561,728.11 20.00
3-4years 8,614,632.05 4,307,316.02 50.00
4-5years 8,217,223.98 6,573,779.19 80.00
Over 5 years 1,232,134.73 1,232,134.73 100.00
Total 889,978,615.10 64,990,113.11 —
(2) Category of accounts receivable listed by age
Aging Closing Balance
Within1 year 862,920,154.04
1-2 years 213,779,196.18
2-3 years 21,417,496.30
3-4years 14,967,320.03
4-5years 12,583,629.66
Over 5 years 25,781,206.68
Total 1,151,449,002.89
(3) Bad debt provision of current period
Category Opening balance Change during the year
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Accrued Other increase
Provision for bad debt 101,878,197.15 61,660,610.09 -
Total 101,878,197.15 61,660,610.09 -
(Continued)
Change during the year
Category Closing Balance
Collect/carry over Written-off
Provision for bad debt 1,233,607.41 10,310,505.34 151,994,694.49
Total 1,233,607.41 10,310,505.34 151,994,694.49
(4) Accounts receivable written off in current period
Item Written-off Amount
Accounts receivable written off 11,949,253.84
Significant amount written off
Caused by
Nature of Procedure to be
Company name Amount Reason related
receivable performed
party
Shenyang Zhongjie Boring
and Milling Machine Co., Trade payment 1,742,825.06 Unable to recover Internal approval N
Ltd
Sichuan Southwest Stainless
Trade payment 1,241,333.17 Unable to recover Internal approval N
Steel Co., Ltd
Qiqihar Second Machine
Trade payment 551,450.03 Unable to recover Internal approval N
Tool (Group) Co., Ltd
Guangzhou Material Supply
Section of China Railway
Trade payment 336,005.35 Unable to recover Internal approval N
Guangzhou Bureau Group
Co., Ltd
Jiamusi Electric Co., Ltd Trade payment 334,739.22 Unable to recover Internal approval N
Shenyang Machine Tool
(Group) Co., Ltd. Precision Trade payment 313,009.17 Unable to recover Internal approval N
CNC Machine Tool Branch
Baoji Loyalty Machine Tool
Trade payment 262,901.24 Unable to recover Internal approval N
Co., Ltd
Jiangsu Dazhong Electric
Trade payment 258,003.88 Unable to recover Internal approval N
Co., Ltd
Korla Railway Material
Trade payment 256,044.10 Unable to recover Internal approval N
Supply Section
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Caused by
Nature of Procedure to be
Company name Amount Reason related
receivable performed
party
Indonesia CV.SIDO
Trade payment 243,676.52 Unable to recover Internal approval N
Company
Zhuzhou Gear Co., Ltd Trade payment 243,504.36 Unable to recover Internal approval N
Shenyang Jingxin
Trade payment 236,705.64 Unable to recover Internal approval N
Remanufacturing Co., Ltd
CRRC Shenyang Rolling
Trade payment 205,205.81 Unable to recover Internal approval N
Stock Co., Ltd
(5) The top five significant accounts receivable categorized by debtors
Proportion of
Closing Provision closing
Debtors name Age receivable
Balance balance
(%)
Wazhou Group Precision
88,974,982.32 Within 1 year 7.73 -
Roller Co., Ltd
CRRC Logistics Co., Ltd 52,160,045.86 Within 1 year 4.53 2,608,002.29
ZWZ Group (USA)
34,065,432.06 Within 1 year 2.96 -
Bearing Co., Ltd
Wafangdian Bearing
Group Precision
28,599,541.22 Within 1 year 2.48 -
Transmission Bearing
Co., Ltd
Guangzhou Railway
19,061,595.05 Within 1 year 1.66 953,079.75
Materials Co., Ltd
Total 222,861,596.51 — 19.36 3,561,082.04
(6) Derecognized receivable due to financial asset transfer: No.
(7) Transferred receivable but continuously involved financial asset, liability: No.
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5. Financing receivable
Items Closing Balance Opening Balance
Bank acceptance notes 28,115,340.20 72,593,534.75
Trade acceptance notes - 58,007,010.84
Total 28,115,340.20 130,600,545.59
(1) Notes receivable endorsed or discounted but not mature at the end of year
Closing amount no more Closing amount still
Items
recognized recognized
Bank acceptance notes 187,398,008.66 -
Trade acceptance notes - -
Total 187,398,008.66 -
6. Prepayment
(1) Aging of advances to suppliers
Closing Balance Opening Balance
Items
Amount Percentage (%) Amount Percentage (%)
Within 1 year 45,584,745.37 98.44 52,189,932.41 97.06
1 to 2 years 661,075.82 1.43 1,297,764.53 2.41
2 to 3 years 59,879.31 0.13 284,768.55 0.53
Total 46,305,700.50 100.00 53,772,465.49 100.00
(2) The top five significant advances to suppliers categorized by debtors
Proportion of
Closing
Items Age receivable
Balance
(%)
Jianlong Beiman Special Steel Co., Ltd. 5,477,675.48 Within 1 year 11.83
Xining Special Steel Co.,Ltd 5,474,091.70 Within 1 year 11.82
Liaoning North Metal Supply Chain Co.,Ltd 5,000,000.00 Within 1 year 10.80
Daye Special Steel co.,Ltd 2,907,503.17 Within 1 year 6.28
Fushun Special Steel Co., Ltd 2,764,300.45 Within 1 year 5.97
Total 21,623,570.80 — 46.70
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7. Other receivables
Items Closing Balance Opening Balance
Interest receivable - -
Dividend receivable - -
Other receivable 9,531,860.12 14,204,144.25
Total 9,531,860.12 14,204,144.25
(1) Other receivable
1) The categories of other receivable by nature
Nature Closing Balance Opening Balance
Security deposit 4,603,536.29 7,068,534.40
Deposit 157,560.00 394,780.42
Personal petty cash 95,518.64 130,312.99
Others 13,782,960.20 13,780,212.00
Total 18,639,575.13 21,373,839.81
2) Categories of other receivable
Closing Balance
Items Booking balance Provision Booking
Amount % Amount % balance
Other receivables with
individual bad debt 6,212,666.84 33.33 6,212,666.84 100.00 -
provision
Other receivables identified
bad debt provision based on
12,426,908.29 66.67 2,895,048.17 — 9,531,860.12
the characters of credit risk
portfolio
Account receivable aging
7,721,348.32 41.42 2,895,048.17 37.00 4,826,300.15
portfolio
Risk-free portfolio 4,655,780.58 24.98 - - 4,655,780.58
Related party portfolio 49,779.39 0.27 - - 49,779.39
Total 18,639,575.13 100.00 9,107,715.01 — 9,531,860.12
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(Continued)
Opening Balance
Items Booking balance Provision Booking
Amount % Amount % balance
Other receivables with
individual bad debt 4,793,248.47 22.43 4,793,248.47 100.00 -
provision
Other receivables
identified bad debt
provision based on the 16,580,591.34 77.57 2,376,447.09 — 14,204,144.25
characters of credit risk
portfolio
Account receivable aging
10,901,011.62 51.00 2,376,447.09 21.80 8,524,564.53
portfolio
Risk-free portfolio 5,659,325.27 26.48 - - 5,659,325.27
Related party portfolio 20,254.45 0.09 - - 20,254.45
Total 21,373,839.81 100.00 7,169,695.56 — 14,204,144.25
(3) Categories of other receivable
1st stage 2nd stage 3rd stage
Expected Expected Expected
credit loss credit loss credit loss
Provision for bad debt Total
within within life within life
following time time
12 months (unimpaired) (impaired)
Balance on January 1, 2021 - - 7,169,695.56 7,169,695.56
On January 1, 2021
Other receivable carrying — — — —
amount on the book
--transfer to 2nd stage - - - -
-- transfer to 3rd stage - - - -
--reverse to 2nd stage - - - -
--reverse to 1st stage - - - -
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Wafangdian Bearing Company Limited 2021 Annual Report
1st stage 2nd stage 3rd stage
Expected Expected Expected
credit loss credit loss credit loss
Provision for bad debt Total
within within life within life
following time time
12 months (unimpaired) (impaired)
Accrued - - 2,288,502.10 2,288,502.10
Reversed - - 232,287.89 232,287.89
Recollected - - - -
Written off - - 118,194.76 118,194.76
Others - - - -
Balance on December 31, 2021 - - 9,107,715.01 9,107,715.01
(4) Other receivables listed by aging
Aging Closing Balance
Within 1 year (including 1year) 8,533,992.78
1-2 years 1,384,966.15
2-3 years 282,226.99
3-4years 1,926,289.81
4-5years 165,000.00
Over 5 years 6,347,099.40
Total 18,639,575.13
(5) Bad debt provision accrued or reversed
Change during the year
Opening Closing
Category Collected/
balance Accrued Written-off Balance
reversed
Provision for
7,169,695.56 2,288,502.10 232,287.89 118,194.76 9,107,715.01
bad debt
Total 7,169,695.56 2,288,502.10 232,287.89 118,194.76 9,107,715.01
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Wafangdian Bearing Company Limited 2021 Annual Report
(6) Other receivables from the top 5 debtors
% of
Closing
Closing the
Name Category Aging Balance of
Balance total
Provision
OR
Liaoning Electric
Power Supply Prepay bill 3,919,218.98 Within 1 year 21.03 -
Co.,Ltd
Benxi Steel Plate Prepayments
1,280,000.00 Over 5 years 6.87 1,280,000.00
Co., Ltd of Materials
Luoyang Zhongzhu Prepayments
723,598.86 Over 5 years 3.88 723,598.86
Casting Plant of Materials
Beijing
Guangzhengxing 3-4 years
Prepayments
Energy Technology 320,940.17 1.72 320,940.17
of Materials Over 5 years
Development Co.,
Ltd
Ansteel Supply and Prepayments
319,694.17 Over 5 years 1.72 319,694.17
Marketing Company of Materials
Total — 6,563,452.18 — 35.22 2,644,233.20
(7) Other receivable written off in current period: 118,194.76 Yuan.
(8) Government grant involved receivable: No.
(9) Other receivable derecognized due to financial asset: No.
(10) Transferred other receivable but continuously involved financial asset or liability: No.
8. Inventories
(1) Categories of inventories
Closing Balance
Items
Book value Provision for decline Net book value
Raw materials 57,373,892.68 6,066,317.93 51,307,574.75
WIP - - -
Finished goods 635,794,071.69 139,762,806.19 496,031,265.50
Goods on transit 13,657,527.28 - 13,657,527.28
Semi-finished goods 161,638,949.72 13,872,799.81 147,766,149.91
Low-value consumable 1,849,446.76 - 1,849,446.76
Total 870,313,888.13 159,701,923.93 710,611,964.20
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(Continue)
Opening Balance
Items
Book value Provision for decline Net book value
Raw materials 78,227,553.26 9,089,557.91 69,137,995.35
WIP 27,387,906.76 421,834.87 26,966,071.89
Finished goods 648,144,216.90 263,961,842.93 384,182,373.97
Goods on transit 73,801,865.07 - 73,801,865.07
Semi-finished goods 91,906,231.80 30,455,364.33 61,450,867.47
Low-value consumable 117,772.55 - 117,772.55
Total 919,585,546.34 303,928,600.04 615,656,946.30
(2) Provision for decline in the value of inventories
Increase
Items Opening Balance
Accrual Other
Raw materials 9,089,557.91 4,782,941.41 -
WIP 421,834.87 - -
Semi-finished goods 30,455,364.33 13,032,091.95 -
Finished goods 263,961,842.93 45,835,397.85 -
Total 303,928,600.04 63,650,431.21 -
(Continue)
Decrease Closing
Items
Reverse/Written-off Others transferred Balance
Raw materials 7,806,181.39 - 6,066,317.93
WIP 421,834.87 - -
Semi-finished goods 29,614,656.47 - 13,872,799.81
Finished goods 170,034,434.59 - 139,762,806.19
Total 207,877,107.32 - 159,701,923.93
9. Contract assets
(1) Contract assets detail
Closing Balance
Items
Book value Provision for decline Net book value
contract to be performed 3,961,875.32 198,093.77 3,763,781.55
Total 3,961,875.32 198,093.77 3,763,781.55
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(2) Provision for decline of contract assets of current period
Items Accrual Reverse Written-off Reason
contract to be performed 198,093.77 - - —
Total 198,093.77 - - —
10. Other current assets
Items Closing Balance Opening Balance
VAT to be deducted 5,578,651.12 24,517,849.43
VAT to be varified - 92,599.50
Advance income tax 49,299.96 -
Total 5,627,951.08 24,610,448.93
11. Other equity instrument investment
Items Closing Balance Opening Balance
Shanghai ME Mechanical & Electrical Equipment
2,000,000.00 2,000,000.00
Chain Co., Ltd
Qian’an Zhayi Iron & Steel Group Co. Ltd 2,503,766.95 2,503,766.95
Dalian Huilong Industry& Trade Company ’ s
7,423,089.69 7,423,089.69
share
Total 11,926,856.64 11,926,856.64
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Wafangdian Bearing Company Limited 2021 Annual Report
12. Investment property
(1) Investment property measured as cost method
Land use
Item Property Total
right
I. Initial Cost — — —
1. Opening Balance 171,156,035.71 49,954,300.64 221,110,336.35
2. Increase 19,064,247.69 2,906,818.17 21,971,065.86
(1) Purchase 11,222,201.84 - 11,222,201.84
(2) Transferred from FA 7,842,045.85 - 7,842,045.85
(3) Increase from business combination - 2,906,818.17 2,906,818.17
3. Decrease 117,234,234.06 - 117,234,234.06
(1) Disposal 71,508,307.24 - 71,508,307.24
(2) Transfer to others 45,725,926.82 - 45,725,926.82
4. Closing Balance 72,986,049.34 52,861,118.81 125,847,168.15
II. Accumulated Depreciation — — —
1. Opening Balance 86,016,869.91 17,576,984.05 103,593,853.96
2. Increase 7,035,017.26 2,344,308.64 9,379,325.90
(1) Accrued 2,357,427.24 2,215,395.76 4,572,823.00
(2) Transfer from others 4,677,590.02 128,912.88 4,806,502.90
3. Decrease 55,988,323.09 - 55,988,323.09
(1) Disposal 19,472,689.56 - 19,472,689.56
(2) Transfer to others 36,515,633.53 - 36,515,633.53
4. Closing Balance 37,063,564.08 19,921,292.69 56,984,856.77
III. Impairment Reserve — — —
1. Opening Balance - - -
2. Increase - - -
3. Decrease - - -
4. Closing Balance - - -
IV. Book Value — — —
1. Closing book value 35,922,485.26 32,939,826.12 68,862,311.38
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Wafangdian Bearing Company Limited 2021 Annual Report
Land use
Item Property Total
right
2. Opening book value 85,139,165.80 32,377,316.59 117,516,482.39
(2) Investment property without owner’s certificates
Items Book value Reasons
Liaoyang Bearing’s main workshop 5,574,202.55 In the process of fire protection
Liaoyang Bearing’s office building 820,633.40 In the process of fire protection
13. Fixed assets
Item Closing Balance Opening Balance
Fixed assets 438,220,714.18 474,109,923.22
Fixed assets disposal - -
Total 438,220,714.18 474,109,923.22
(1) Fixed assets
1) Fixed assets detail
Machinery Transportation Electronic Other
Item Property Device Equipment Total
Equipment Equipment
I. Initial
Cost — — — — — —
1. Opening
264,336,605.71 1,049,807,784.12 14,509,177.09 62,291,443.33 211,182,772.67 1,602,127,782.92
Balance
2. Increase 53,622,805.64 20,813,610.11 2,125,989.21 7,843,293.60 12,570,922.80 96,976,621.36
(1) Purchase 2,492,964.84 11,783,107.48 370,224.33 1,855,890.31 3,782,143.90 20,284,330.86
(2)
Transferred
from 5,403,913.98 9,030,502.63 1,755,764.88 5,987,403.29 8,788,778.90 30,966,363.68
construction-
in-progress
(3) Acquired
from business 45,725,926.82 - - - - 45,725,926.82
combination
3. Decrease 28,570,067.56 38,728,268.58 1,499,555.61 2,777,153.73 29,403,144.91 100,978,190.39
(1) Disposal 20,728,021.71 38,728,268.58 1,499,555.61 2,777,153.73 29,403,144.91 93,136,144.54
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Machinery Transportation Electronic Other
Item Property Device Equipment Total
Equipment Equipment
(2) Others 7,842,045.85 - - - - 7,842,045.85
4. Closing
289,389,343.79 1,031,893,125.65 15,135,610.69 67,357,583.20 194,350,550.56 1,598,126,213.89
Balance
II.
Accumulated — — — — — —
Depreciation
1. Opening
179,069,027.56 688,715,910.19 12,767,249.79 50,886,574.18 168,246,931.93 1,099,685,693.65
Balance
2. Increase 45,218,423.21 56,603,082.65 647,053.99 4,066,496.85 9,551,598.53 116,086,655.23
(1) Accrued 8,702,789.68 56,603,082.65 647,053.99 4,066,496.85 9,551,598.53 79,571,021.70
(2) Other
36,515,633.53 - - - - 36,515,633.53
transfer
3. Decrease 22,207,135.64 30,637,394.77 1,427,724.13 2,506,139.61 22,320,910.41 79,099,304.56
(1) Disposal 17,529,545.62 30,637,394.77 1,427,724.13 2,506,139.61 22,320,910.41 74,421,714.54
(2) Other
4,677,590.02 - - - - 4,677,590.02
transfer
4. Closing
202,080,315.13 714,681,598.07 11,986,579.65 52,446,931.42 155,477,620.05 1,136,673,044.32
Balance
III.
Impairment — — — — — —
Reserve
1. Opening
- 19,879,546.61 1,648.28 621,345.40 7,829,625.76 28,332,166.05
Balance
2. Increase 1,063,718.18 7,890,650.50 103,094.75 111,122.34 40,079.38 9,208,665.15
(1) Accrued 1,063,718.18 7,890,650.50 103,094.75 111,122.34 40,079.38 9,208,665.15
3. Decrease - 6,586,583.76 1,648.28 24,707.30 7,695,436.47 14,308,375.81
(1) Disposal - 6,586,583.76 1,648.28 24,707.30 7,695,436.47 14,308,375.81
4. Closing
1,063,718.18 21,183,613.35 103,094.75 707,760.44 174,268.67 23,232,455.39
Balance
IV. Book
— — — — — —
Value
1. Closing 86,245,310.48 296,027,914.23 3,045,936.29 14,202,891.34 38,698,661.84 438,220,714.18
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Machinery Transportation Electronic Other
Item Property Device Equipment Total
Equipment Equipment
book value
2. Opening
85,267,578.15 341,212,327.32 1,740,279.02 10,783,523.75 35,106,214.98 474,109,923.22
book value
2) Temporary idle fixed assets
Items Initial Cost Accumulated Deprecation Provision Book Value Memo
Property 512,336.68 266,657.07 244,980.36 699.25 —
Machinery equipment 21,463,150.43 8,078,581.84 11,935,091.48 1,449,477.11 —
Transportation equipment 236,324.79 132,235.04 103,094.75 995.00 —
Electronic device 2,864,656.64 2,688,592.48 175,726.77 337.39 —
Others equipment 1,276,133.77 1,231,190.99 40,079.38 4,863.40 —
Total 26,352,602.31 12,397,257.42 12,498,972.74 1,456,372.15 —
3) Fixed assets lease out under operating lease
Item Book Value
Electronic device 1,957,404.15
Machinery equipment 80,205,310.75
others 1,035,016.98
Transportation equipment 107,456.69
Total 83,305,188.57
(4) Fixed assets as pending certificate of ownership
Items Book value Reason for Pending
Dalian Wazhou Precision Electric Motor
28,137,450.63 Land certificate is in the process
Car Bearing factory
Liaoyang Bearing’s main workshop 6,162,548.28 In the process of fire protection
Liaoyang Bearing’s office building 2,526,603.83 In the process of fire protection
Liaoyang Bearing’s processing workshop 1,115,157.06 In the process of fire protection
Liaoyang Bearing’s staff canteen 776,734.82 In the process of fire protection
14. Construction-in-progress
Item Closing Balance Opening Balance
Construction in progress 25,929,699.29 24,254,985.16
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Construction materials - -
Total 25,929,699.29 24,254,985.16
(1) Construction-in-progress
1) Construction in progress details
Closing Balance Opening Balance
Item
Book Balance Provision Book Value Book Balance Provision Book Value
Improvement of 7th
3,931,152.37 3,537,505.62 393,646.75 5,294,384.87 3,468,712.79 1,825,672.08
finished products
Improvement of
2nd finished 3,681,416.00 - 3,681,416.00 - - -
products
New plant project 3,074,304.55 - 3,074,304.55 - - -
Angular Contact
Ball Bearing 2,654,867.25 - 2,654,867.25 - - -
Production Line
Improvement of
2,389,925.00 - 2,389,925.00 1,659,638.56 - 1,659,638.56
plant
Spherical Roller
Bearing Assembly 1,321,112.55 - 1,321,112.55 1,321,112.55 - 1,321,112.55
Line
Improvement of
1,257,328.31 - 1,257,328.31 376,403.13 - 376,403.13
grinding machine
Cylindrical bearing
1,030,088.50 - 1,030,088.50 - - -
production line
1250 Salt bath
martensitic heat
treatment
831,858.41 - 831,858.41 - - -
production line
press investment
renovation
1250 Salt Bath
Horse/Bainite Heat
805,309.73 - 805,309.73 - - -
Treatment
Production Line
Maintenance and
renovation of
741,000.00 - 741,000.00 741,000.00 - 741,000.00
grinding production
line
Improvement of
precision bearing 710,194.68 - 710,194.68 4,221,142.02 - 4,221,142.02
plant
Thielenhaus
637,168.14 - 637,168.14 - - -
Superfinisher
Improvement of
625,647.85 - 625,647.85 1,758,204.72 - 1,758,204.72
railway
Installation of 456,878.68 456,878.68 - 540,528.68 - 540,528.68
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Closing Balance Opening Balance
Item
Book Balance Provision Book Value Book Balance Provision Book Value
Super finishing
Machine
Controlled
Atmosphere
Multifunctional
416,725.66 - 416,725.66 - - -
Carburizing
Furnace Production
Line
Channel II
259,161.89 - 259,161.89 259,161.89 - 259,161.89
construction project
Crane Project 255,382.52 - 255,382.52 255,382.52 - 255,382.52
Overhaul factory
205,784.79 - 205,784.79 176,772.70 - 176,772.70
reconstruction
Cylindrical bearing
inner ring raceway 196,460.18 - 196,460.18 - - -
grinder
Improvement of
precision roller 166,937.61 - 166,937.61 1,189,745.29 - 1,189,745.29
branch
Grinding product
38,957.26 - 38,957.26 1,774,704.65 - 1,774,704.65
line
Computer Project 25,623.93 - 25,623.93 184,075.24 - 184,075.24
Dalian industry
5,590.46 - 5,590.46 1,822,184.00 - 1,822,184.00
park project
Improvement of
- - - 1,635,330.51 - 1,635,330.51
special large branch
Others 4,992,136.70 786,929.43 4,205,207.27 4,513,926.62 - 4,513,926.62
Total 30,711,013.02 4,781,313.73 25,929,699.29 27,723,697.95 3,468,712.79 24,254,985.16
(2) Change in the significant construction in progress
Decrease
Opening Closing
Name Increase Transfer to Other
Balance Balance
fixed assets decrease
Improvement of railway 1,093,006.93 - 1,069,930.01 23,076.92 -
Improvement of 7th
5,294,384.87 878,110.60 2,241,343.10 - 3,931,152.37
finished products
Improvement of precision
3,487,339.13 886,474.50 4,373,813.63 - -
bearing plant
Dalian industry park project 1,822,184.00 - 1,816,593.54 - 5,590.46
Grinding product line 1,774,704.65 - 900,213.27 835,534.12 38,957.26
Improvement of 2nd
- 4,699,115.10 1,017,699.10 - 3,681,416.00
finished products
Improvement of special 1,398,966.87 14,929,281.94 16,328,248.81 - -
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Wafangdian Bearing Company Limited 2021 Annual Report
Decrease
Opening Closing
Name Increase Transfer to Other
Balance Balance
fixed assets decrease
large branch
New plant project - 3,074,304.55 - - 3,074,304.55
Angular Contact Ball
- 2,654,867.25 - - 2,654,867.25
Bearing Production Line
Cylindrical bearing
- 1,030,088.50 - - 1,030,088.50
production line
Total 14,870,586.45 28,152,242.44 27,747,841.46 858,611.04 14,416,376.39
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(Continued)
Percent of Including: Interest
Accumulated
investment Accumulated capitalizat Source of
Name Budget progress capitalized
against capitalized ion rate funds
interest
budget (%) interest (%)
Improvement of Self-financ
1,093,006.93 97.89 97.89 90,837.36 - -
railway ing
Improvement of 7th Self-financ
6,404,690.27 96.37 96.37 656,478.24 - -
finished products ing
Improvement of
Self-financ
precision bearing 4,373,813.63 100.00 100.00 - - -
plant ing
Dalian industry Self-financ
1,947,734.51 93.55 93.55 35,839.06 - -
park project ing
Grinding product Self-financ
1,218,650.90 77.07 77.07 - - -
line ing
Improvement of
Self-financ
2nd finished 4,699,115.04 100.00 100.00 - - -
products ing
Improvement of Self-financ
16,328,248.81 100.00 100.00 33,034.11 - -
special large branch ing
Self-financ
New plant project 6,701,691.43 45.87 45.87 - - -
ing
Angular Contact
Self-financ
Ball Bearing 8,849,557.52 30.00 30.00 - - -
Production Line ing
Cylindrical bearing Self-financ
3,433,628.32 30.00 30.00 - - -
production line ing
Total 55,050,137.36 — — 816,188.77 - — —
(3) Provision for impairment of construction in progress: 1,312,600.94 Yuan.
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Wafangdian Bearing Company Limited 2021 Annual Report
15. Intangible assets
(1) Intangible assets list
Items Land use right ERP software Total
I. Initial cost — — —
1. Opening balance 126,235,427.10 6,553,383.89 132,788,810.99
2.Increase - 1,226,415.09 1,226,415.09
(1) Purchase - 1,226,415.09 1,226,415.09
3. Decrease 2,906,818.17 - 2,906,818.17
(1) Others 2,906,818.17 - 2,906,818.17
4. Closing balance 123,328,608.93 7,779,798.98 131,108,407.91
II. Amortization — — —
1. Opening balance 45,647,605.97 6,415,343.84 52,062,949.81
2.Increase 2,222,077.32 139,337.74 2,361,415.06
(1) Accrual 2,222,077.32 139,337.74 2,361,415.06
(2) Others - - -
3. Decrease 128,912.88 - 128,912.88
(1) Others 128,912.88 - 128,912.88
4). Closing balance 47,740,770.41 6,554,681.58 54,295,451.99
III. Provision for impairment — — —
1. Opening balance - - -
2. Increase - - -
3. Decrease - - -
4. Closing balance - - -
IV. Book value — — —
1. Closing Book value 75,587,838.52 1,225,117.40 76,812,955.92
2. Opening Book value 80,587,821.13 138,040.05 80,725,861.18
(2) At the end of reporting period, there is no intangible asset established by internal
development.
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Wafangdian Bearing Company Limited 2021 Annual Report
16. Long-term unamortized expense
Opening Other Closing
Items Increase Amortization
Balance Decrease Balance
Decoration fees for
432,059.78 - 262,544.07 - 169,515.71
estate used as office
Heating overhaul cost 79,128.33 - 55,855.80 - 23,272.53
Total 511,188.11 - 318,399.87 - 192,788.24
17. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets before offsetting: None.
(2) Deferred tax liabilities before offsetting
Closing Balance Opening Balance
Items Taxable Deferred Taxable Deferred
temporary tax temporary tax
difference liabilities difference liabilities
Asset evaluation increment in
business combination without the 4,554,909.67 683,236.45 4,896,322.33 734,448.35
same control
Total 4,554,909.67 683,236.45 4,896,322.33 734,448.35
(3) Unrecognized deferred tax assets details
Items Closing Balance Opening Balance
Deductible temporary difference 349,601,233.44 54,337,700.26
Deductible loss 787,687,057.10 567,068,741.45
Total 1,137,288,290.54 621,406,441.71
(4) Unrecognized deductible loss of deferred tax assets expired next period
Year Closing Balance Opening Balance Memo
2021 36,394,255.27 —
2022 77,265,795.85 77,265,795.85 —
2023 106,335,303.14 106,335,303.14 —
2024 100,239,007.68 100,239,007.68 —
2025 246,834,379.51 246,834,379.51 —
2026 257,012,570.92 - —
Total 787,687,057.10 567,068,741.45 —
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Wafangdian Bearing Company Limited 2021 Annual Report
18. Short-term borrowing
(1) Categories
Loan category Closing Balance Opening Balance
Credit loan 677,000,000.00 670,000,000.00
Total 677,000,000.00 670,000,000.00
(2) Overdue short-term borrowing: No.
19. Notes payable
Notes category Closing Balance Opening Balance
Bank acceptance notes 168,000,000.00 123,567,800.00
Trade acceptance notes 138,258,189.60 151,086,735.65
Total 306,258,189.60 274,654,535.65
There are no unpaid expired notes payable by the end of the accounting period.
20. Accounts payable
(1) Accounts payable
Item Closing Balance Opening Balance
Goods payments 1,216,016,330.62 982,917,948.65
Project payments 24,923,842.20 24,620,842.88
Others 7,910,156.02 37,263,105.32
Total 1,248,850,328.84 1,044,801,896.85
(2) Accounts payable with age over 1 year
Company name Closing Balance Unsettle reason
quality problems in the
Taiwan You Ji Machine IND.Co.,Ltd 1,188,227.37
purchased equipment
Zhengzhou Yongtong Special Steel Co., Ltd 471,374.06 undue
Northeast Special Steel Group Co., Ltd 142,377.05 undue
Pujiang Lanbao Trading Co., Ltd 80,283.96 undue
Beijing Ziguang Fangda High-Tech
74,122.01 undue
Ceramics Co., Ltd
Liaocheng Dezhong Bearing Parts Co., Ltd 60,973.20 undue
Dalian Delin Heavy Industry Co., Ltd 51,800.00 undue
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Wafangdian Bearing Company Limited 2021 Annual Report
Company name Closing Balance Unsettle reason
Total 2,069,157.65 —
21. Contract liability
(1) Details
Item Closing Balance Opening Balance
Contract obligation to be fulfilled 38,426,632.29 39,456,304.55
Total 38,426,632.29 39,456,304.55
(2) Significant change during the year: None.
22. Employee’s payable
(1) Category of employee’s payables
Opening Closing
Item Increase Decrease
Balance Balance
Short-term employee’
45,346,253.91 326,812,534.51 324,989,020.80 47,169,767.62
s payable
Post-employment
benefit – defined 5,973,433.18 29,619,786.45 29,968,308.47 5,624,911.16
contribution plan
Redundancy pay 1,357,454.00 5,841,257.50 5,596,532.50 1,602,179.00
Total 52,677,141.09 362,273,578.46 360,553,861.77 54,396,857.78
(2) Short-term employee’s payables
Opening Closing
Item Increase Decrease
Balance Balance
Salaries, bonus,
41,202,601.27 257,239,555.42 254,945,472.45 43,496,684.24
allowance, and subsidy
Welfare 55,153.00 19,496,296.90 19,496,714.90 54,735.00
Social insurance 42,646.65 19,061,339.00 19,086,692.29 17,293.36
Include: Medical
45,888.12 14,553,134.37 14,581,998.29 17,024.20
insurance
On-duty injury insurance -1,109.31 2,715,214.07 2,714,083.50 21.26
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Wafangdian Bearing Company Limited 2021 Annual Report
Opening Closing
Item Increase Decrease
Balance Balance
Maternity insurance -2,132.16 1,792,990.56 1,790,610.50 247.90
Housing funds 2,487,488.49 27,455,136.35 27,667,935.69 2,274,689.15
Labour union and
1,558,364.50 3,560,206.84 3,792,205.47 1,326,365.87
training expense
Total 45,346,253.91 326,812,534.51 324,989,020.80 47,169,767.62
(3) Defined contribution plan
Opening Closing
Item Increase Decrease
Balance Balance
Pension 5,892,803.76 28,730,304.59 29,068,535.53 5,554,572.82
Unemployment insurance 80,629.42 889,481.86 899,772.94 70,338.34
Total 5,973,433.18 29,619,786.45 29,968,308.47 5,624,911.16
23. Tax payable
Item Closing Balance Opening Balance
Value-added tax 8,918,814.09 1,576,813.19
Individual income tax 174,317.22 148,082.29
City maintenance and construction tax 395,031.01 208,938.78
Real estate tax 791,779.38 911,163.89
Land use tax 519,023.69 536,377.57
Stamp duty 500,170.64 160,352.41
Education surcharge 167,231.59 87,480.35
local education surcharge 111,487.72 58,320.23
Others 8,034.12 639.97
Total 11,585,889.46 3,688,168.68
24. Other payables
Items Closing Balance Opening Balance
Interest payable - 1,041,600.00
Dividend payable - -
Other payable 173,782,184.85 128,434,461.47
Total 173,782,184.85 129,476,061.47
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Wafangdian Bearing Company Limited 2021 Annual Report
(1) Interest payable
1) Category of interest payable
Item Closing Balance Opening Balance
Interest for short-term loan - 1,041,600.00
Total - 1,041,600.00
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Wafangdian Bearing Company Limited 2021 Annual Report
(2) Other accounts payable
1) Other payables categorized by payments nature
Payments nature Closing Balance Opening Balance
Bid security deposits 1,548,890.00 1,165,890.00
Trademark fees and lease premium to Group 38,467,233.37 41,606,986.87
Authorization deposit of seller 66,230,215.73 25,526,424.69
Others 67,535,845.75 60,135,159.91
Total 173,782,184.85 128,434,461.47
2) Significant other payables with age over 1 year
Closing Reason of unpaid or
Name of company
Balance not carried forward
Bid deposit 1,018,490.00 undue
Wazhou Group 35,289,972.61 undue
Total 36,308,462.61 —
25.Other current liabilities
(1) Category of other current liabilities
Item Closing Balance Opening Balance
Output VAT to be transferred 4,995,462.19 5,129,319.58
Total 4,995,462.19 5,129,319.58
26. Long-term payables
Type Closing Balance Opening Balance
Long-term payables 100,000.00 100,000.00
Special payables 244,974.84 244,974.84
Total 344,974.84 344,974.84
(1) Long-term payables
Payments nature Closing Balance Opening Balance
Equipment payments 100,000.00 100,000.00
Total 100,000.00 100,000.00
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Wafangdian Bearing Company Limited 2021 Annual Report
(2) Special payables
Items Opening Increase Decrease Closing Formation Basis
Balance Balance
Granted by Wafangdian
Bureau of Finance and
Special
Wafangdian Bureau of
pollution 169,974.84 - 169,974.84
Environment Protection with
treatment
approval with “WaCaiZhiQi
No.[2004]217”
Dalian Financial Bureau and
Municipal Office of
Economic and Information
Informatization Technology Committee with
75,000.00 - 75,000.00
construction approval with “Da CaiZhiQi
No. [2012]917” and
“DaJing XinFa No.
[2012]199”
Total 244,974.84 - 244,974.84
27. Provision
Closing Opening Reason
Item
Balance Balance
Accrual for wind
Accrued warranty 1,019,498.65 4,771,845.00 power product
quality claim
Customer claimed
Wind power product quality claim 40,381,951.49 34,260,425.91 compensation for
quality problem
Total 41,401,450.14 39,032,270.91 —
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Wafangdian Bearing Company Limited 2021 Annual Report
28. Deferred income
(1) Category of deferred income
Opening Closing
Item Increase Decrease Formation Basis
Balance Balance
Governme Grant from
33,380,301.70 - 4,855,911.39 28,524,390.31
nt subsidy government
Old factory
removal and new
Compensat factory and land
ion for compensation
26,562,451.38 - 953,225.59 25,609,225.79
land for Liaoyang
removal Bearing
Construction Co.,
Ltd
Total 59,942,753.08 - 5,809,136.98 54,133,616.10 —
(2) Government subsidy project
Recorded Related
Opening into non Other Closing with
Government subsidy
Increase Note
item Balance -operation Change Balance asset/
income equity
Compensation for
21,633,886.42 - 2,704,235.88 - 18,929,650.54 asset A
plants moving
Development of
intelligent
5,155,555.56 - 1,288,888.87 - 3,866,666.69 asset B
manufacturing
equipment subsidies
Improvement of
high-end bearing 944,640.00 - 472,320.00 - 472,320.00 asset C
production subsidies
Overhaul bearing
project discounting 1,180,000.00 - 240,000.00 - 940,000.00 asset D
interest subsidy
Technical master studio
423,349.65 - 52,918.64 - 370,431.01 asset E
development subsidy
Liuchangfu Master
43,402.07 - - - 43,402.07 asset F
subsidy
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Wafangdian Bearing Company Limited 2021 Annual Report
Liaoyang Bearing
3,999,468.00 - 97,548.00 - 3,901,920.00 asset G
Industry subsidy
Total 33,380,301.70 - 4,855,911.39 - 28,524,390.31 — —
Note A: Deferred income: the compensation for plants moving is RMB 59,820,000.00
granted from Dalian government-owned assets investment and operating Co., Ltd in
2011. And the amount of making up for the removal loss of the current period is RMB
11,143,755.05 ； The rest of RMB 48,676,244.95 are recognized as the removal
compensation related with assets, which is amortized 18 years, according to the new
fixed assets formed after the Dalian branch removal.
Note B: Deferred income: the RMB 4,000,000.00 of development of intelligent
manufacturing equipment subsidy is distributed by Dalian City Finance Bureau in
2012.The subsidies are used in the project “Grinding vehicle integration and processing
digitalization ”. Currently, the equipment has been used for production manufacturing
and grant is amortized over 10 years. This year the second stage subsidy of RMB
4,000,000.00 has been received and amortized within the remaining life.
Note C: Deferred income: the RMB 4,723,200.00 interest subsidy of “Improvement of
bearing base in high-end equipment sector ” is distributed by Wafangdian Finance
Bureau in 2013 for the year of 2011. The subsidy is specially used to improve the project
of improvement of bearing base in high-end equipment sector. The item is amortized
within 10 years.
Note D: Deferred income: the RMB 2,400,000.00 interest subsidy of “Axle box and
bearing technology improvement of grand axle load railway carriages” is granted by
Wafangdian Finance Bureau in 2014. The subsidy is now in processing the project
“Axle box and bearing technology improvement of grand axle load railway carriages”.
Now the equipment has been put into production, the government subsidy is amortized
according to the depreciation years of 10 years.
Note E: Deferred income: the 700,000.00 RMB of the construction of workshop for
technology masters subsidy is granted by Dalian Finance Bureau in 2014 according to
“Da Cai She (Zhuan) No. [2013]26” “Da Cai She (Zhuan) No. [2013]37” “Da Cai
She (Zhuan) No. [2013]45”, “Da Cai She (Zhuan) No. [2014]27”, and “Da Cai She
(Zhuan) No. [2014]32 ” . The workingshop equipment has been transferred into fixed
asset in December 2016 and being amortised for 12 years, expense related parts are
being put into non-operating income directly.
Note F: Master Liu Changfu’ subsidy is based on the Dalian Finance Bureau’ subsidy
of 100,000 yuan to Liu Changfu, which was transferred by ZWZ Group in July 2017
according to Darenshe Fa [2012] No. 207. As of December 2021, the relevant studios
have not been fixed, and each Deferred income is written off according to the cost of the
laboratory construction in the year.
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Wafangdian Bearing Company Limited 2021 Annual Report
Note G: Deferred income: the RMB 4,877,400.00 of “Industry development subsidies”
is distributed by the Liaoyang Economic and Development district Bureau of Finance in
2013. The grant is related to land and amortized over 50 years in accordance with land
amortization criteria.
29. Share capital
OpeningBalance Changeforcurrentperiod ClosingBalance
Shareholders ’ Transferring
Issuing
name/category Distributing capital
Amounts % new Others Subtotal Amounts %
shares reservesto
shares
sharecapital
Shares under
restriction for - - - - - - - - -
sale
Domestically
legal person 244,000,000.00 60.61 - - - - - 244,000,000.00 60.61
shares
Total shares
under
244,000,000.00 60.61 - - - - - 244,000,000.00 60.61
restriction for
sale
Shares without
restriction for - - - - - - - - -
sale
Domestically
listed foreign 158,600,000.00 39.39 - - - - - 158,600,000.00 39.39
shares
Total shares
without
158,600,000.00 39.39 - - - - - 158,600,000.00 39.39
restriction for
sale
Totalshares 402,600,000.00 100.00 - - - - - 402,600,000.00 100.00
30. Capital reserves
Items Opening Balance Increase Decrease Closing Balance
Share premium 201,956,446.52 - - 201,956,446.52
Other capital reserves 283,734,603.95 - - 283,734,603.95
Total 485,691,050.47 - - 485,691,050.47
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Wafangdian Bearing Company Limited 2021 Annual Report
31. Surplus reserves
Item Opening Balance Increase Decrease Closing Balance
Statutory surplus reserve 116,179,772.10 - - 116,179,772.10
Discretionary surplus reserve 20,590,618.91 - - 20,590,618.91
Total 136,770,391.01 - - 136,770,391.01
32. Undistributed profits
Item Current year Prior year
Closing balance of prior year -211,056,473.59 201,379,956.97
Add: Adjustments to the opening balance of
- -
undistributed profits
Including: additional retrospective adjustments
- -
according to the new accounting standards
Change on accounting policy - -
Correction of prior period significant errors - -
Change on combination scope under same
- -
control
Other factors - -
Opening balance of current year -211,056,473.59 201,379,956.97
Add: net profit attributable to shareholders of
-205,737,685.42 -380,228,430.56
parent company in the year
Less: Provision for statutory surplus reserves - -
Provision for any surplus reserves - -
Provision of general risk - -
Dividends payable for common shares - 32,208,000.00
Share dividends - -
Closing balance of current year -416,794,159.01 -211,056,473.59
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Wafangdian Bearing Company Limited 2021 Annual Report
33. Operating revenue and cost
(1) Operating revenue and cost
Current year Prior year
Items
Sales revenue Cost of sales Sales revenue Cost of sales
Revenue from
2,066,084,498.69 1,648,530,450.82 1,593,697,068.57 1,135,672,657.83
principle operation
Revenue from other
252,619,851.66 205,983,916.30 265,479,347.01 232,010,647.05
operation
Total 2,318,704,350.35 1,854,514,367.12 1,859,176,415.58 1,367,683,304.88
(2) Principle operation - classified according to products or operation
Current year Prior year
Items
Sales revenue Cost of sales Sales revenue Cost of sales
Export 93,491,561.62 82,160,717.17 149,255,608.09 142,551,544.89
Domestic 1,920,810,005.29 1,513,802,458.68 1,378,624,745.01 908,955,678.48
Including:
Transportation 170,285,070.15 124,973,171.93 226,218,965.88 180,037,488.31
vehicle bearings
Special use
998,964,768.13 821,633,854.27 543,592,815.95 360,120,984.53
bearings
General use bearings 751,560,167.01 567,195,432.48 608,812,963.18 368,797,205.64
Industrial Operations 51,782,931.78 52,567,274.97 65,816,715.47 84,165,434.46
Total 2,066,084,498.69 1,648,530,450.82 1,593,697,068.57 1,135,672,657.83
34. Taxes and surcharges
Items Current year Prior year
City construction tax 3,932,344.28 4,365,003.73
Education surcharge 1,684,579.57 1,864,181.28
Local Education surcharge 1,123,053.05 1,242,787.52
Stamp duty 2,270,541.36 1,355,089.45
Property tax 3,334,736.62 3,876,652.88
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Tax on land use 2,406,496.68 2,399,179.32
Others 13,967.95 6,471.33
Total 14,765,719.51 15,109,365.51
35. Selling expenses
Items Current year Prior year
Employee benefit 81,384,283.15 81,182,393.57
Compensation for quality default 19,869,179.23 39,032,270.91
Transportation expense 8,872,599.31 35,602,492.93
Travel expense 21,892,290.73 21,396,895.72
Trademark use fee 12,206,965.16 11,322,716.81
Business activity 7,909,225.69 6,028,813.38
Leasing 5,279,884.82 5,301,335.19
International freight - 1,549,200.13
Conference expense 1,221,999.03 436,265.73
Others 13,482,381.87 8,365,034.12
Total 172,118,808.99 210,217,418.49
36. Administrative expenses
Items Current year Prior year
Employee benefit 92,231,071.61 70,461,407.37
Intangible assets amortization 4,644,641.18 4,491,507.60
Guide and fire fighting expense 1,929,699.78 2,618,935.31
Depreciation expense 3,582,791.57 1,540,891.53
Travel expense 3,011,739.51 1,414,462.66
Business entertaining expense 303,079.04 279,958.60
Other expense 4,275,706.76 13,152,796.06
Total 109,978,729.45 93,959,959.13
37. R&D
Items Current year Prior year
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Materials input 155,309,101.93 162,881,600.38
Design, new process development fee 22,600,743.49 18,807,864.25
Labor cost 13,360,931.37 12,366,142.09
Depreciation and amortization of long term
7,059,260.79 8,437,400.42
expense
Fuel power 5,373,695.61 7,118,669.77
R&D equipment repair and leasing fee 987,690.02 4,177,671.01
Processing fee 721,372.22 3,338,940.98
Testing fee 211,029.53 1,877,182.02
Others fee 10,180,087.43 8,542,714.62
Total 215,803,912.39 227,548,185.54
38. Financial expenses
Items Current year Prior year
Interest expenses 36,648,536.99 36,840,257.54
Less: Interest income 425,918.49 1,106,147.24
Add: Exchange loss 2,476,241.52 4,798,480.72
Add: Others expenditure 698,857.93 2,894,914.65
Total 39,397,717.95 43,427,505.67
39. Other income
Items Current year Prior year
Dalian sub-factory relocation subsidy 2,704,235.88 2,704,235.88
Development of intelligent manufacturing equipment
1,288,888.87 844,444.44
subsidies
Liaoyang Bearing old factory relocation compensation 953,225.59 953,225.59
Work-for-training subsidy 928,868.48 -
Job stabilization subsidy 491,618.77 3,080,208.52
Improvement of high-end bearing production subsidies 472,320.00 472,320.00
Subsidy from Dalian Bureau of Commerce 464,059.00 -
Overhaul bearing project discounting interest subsidy 240,000.00 240,000.00
2020 National Major Science and Technology Special
Project and Key R&D Plan Supporting
150,600.00 -
Funds-High-performance Motor Insulated Bearing
Technology
High-tech enterprise subsidies 100,000.00 -
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Industry Development Fund 97,548.00 97,548.00
Technical master studio development subsidy 52,918.64 21,583.92
Six to one stable skill allowance 50,000.00 -
First sets subsidy 46,000.00 -
High-skilled personnel training subsidies 36,720.00 -
Tax handling charge refund 32,811.97 46,428.74
Funding for young scientific and technological workers 5,000.00 -
State treasury withdrawal income 2,316.58 -
Beijing social security fund collection and return 233.66 -
Special fund for processing and trade entity - 500,000.00
1st subsidy for key R&D in 2020 - 343,800.00
Nafu Workshop Subsidy - 100,000.00
Zhongxiaokai Subsidy in 2018 - 60,000.00
Technology Research of “Shuangbai Plan” - 50,000.00
COVID subsidy of Hangzhou - 5,765.29
Labor Insurance subsidy - 630.1
Total 8,117,365.44 9,520,190.48
40. Investment income
Items Current year Prior year
Dividend income from other equity instrument
518,821.12 3,962.74
investments during the holding period
Debt restructuring 1,808,922.83 1,226,811.33
Total 2,327,743.95 1,230,774.07
41. Gain on FV movement
Source of Gain on FV change Current year Prior year
Tradable financial asset 93,991.93 -57,011.50
Total 93,991.93 -57,011.50
42. Loss on credit impairment (loss listed as “-”)
Item Current year Prior year
Bad debt loss of notes receivable 3,386,757.51 -3,421,799.82
Bad debt loss of receivable -60,427,002.68 -19,233,886.19
Bad debt loss of other receivable -2,074,159.21 212,503.92
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Total -59,114,404.38 -22,443,182.09
43. Loss on asset impairment (loss listed as “-”)
Item Current year Prior year
Inventory impairment loss -63,650,431.22 -240,770,713.02
Contract asset impairment loss -198,093.77 -
Fixed asset impairment loss -9,208,665.15 -28,296,049.19
Construction in progress loss -1,312,600.94 -3,468,712.79
Total -74,369,791.08 -272,535,475.00
44. Gain on assets disposal (loss listed as “-”)
Amounts recognized
into current
Item Current year Prior year
non-recurring profit or
loss
Gain on disposal group classified as held
- - -
for sale
Gain on non-current assets disposal 3,565,883.04 939,292.08 3,565,883.04
Gain on non-current assets disposal
- - -
classified as held for sale
Gain on non-current assets disposal not
3,565,883.04 939,292.08 3,565,883.04
classified as held for sale
Gain on fixed assets disposal 3,565,883.04 939,292.08 3,565,883.04
Total 3,565,883.04 939,292.08 3,565,883.04
45. Non-operating income
(1) Non-operating income list
Amounts recognized into
Current
Item Prior year current non-recurring profit
year or loss
Penalty income 2,203,593.01 1,108,836.93 2,203,593.01
Written off unsettled payable 1,031,828.90 1,346,615.67 1,031,828.90
Others 99,949.01 733,317.45 99,949.01
Total 3,335,370.92 3,188,770.05 3,335,370.92
46. Non-operating expenses
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Wafangdian Bearing Company Limited 2021 Annual Report
Amounts recognized into
Current
Item Prior year current non-recurring profit
year
or loss
Public beneficial donation - 80,000.00 -
Loss on disposal of
1,216,375.40 1,221,382.96 1,216,375.40
non-current asset scrapped
Penalty loss 89,751.59 34,391.16 89,751.59
Others 551,321.97 17,902.79 551,321.97
Total 1,857,448.96 1,353,676.91 1,857,448.96
47. Income tax expenses
(1) Income tax expenses
Items Current year Prior year
Current income tax expenses 12,703.12 -
Deferred income tax expenses -51,211.90 -51,211.90
Total -38,508.78 -51,211.90
48. Notes to cash flow statement
(1) Cash receipt/payment of other operating/investing/financing activities
1) Other cash received relating to operating activities
Items Current year Prior year
Interest income 477,650.40 1,106,147.24
Government subsidy 9,950,286.94 9,598,383.69
AR or AP 27,797,419.41 26,404,551.47
Return of reserve fund, deposit etc. 242,125.00 612,794.06
Others 19,204,548.86 16,433,710.00
Total 57,672,030.61 54,155,586.46
2) Other cash paid relating to operating activities
Items Current year Prior year
Selling expenses 48,955,122.07 58,248,998.04
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GAM expense 39,502,236.56 8,347,834.67
Financial expense 8,270,417.49 2,894,914.65
Others 19,819,973.04 10,671,686.98
Total 116,547,749.16 80,163,434.34
3) Others cash received relating to financing activities
Items Current year Prior year
Notes discount 155,600,000.00 170,000,000.00
Total 155,600,000.00 170,000,000.00
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4) Others cash paid relating to financing activities
Items Current year Prior year
Notes is due and cashed 150,000,000.00 135,000,000.00
Total 150,000,000.00 135,000,000.00
(2) Supplementary information of consolidated cash flow statement
Items Current year Prior year
1. Adjusting net profit into cash flows of operating
— —
activities:
Net profit -205,737,685.42 -380,228,430.56
Add: Provision for impairment of assets 74,369,791.08 272,535,475.00
Loss on impairment of credit 59,114,404.38 22,443,182.09
Depreciation of fixed assets, Amortization of
84,143,844.70 83,161,037.39
mineral resources, and biological assets
Amortization of intangible assets 2,232,502.18 3,259,834.28
Amortization of long-term deferred expenses 318,399.87 348,673.68
Losses on disposal of fixed assets, intangible assets, and
-3,275,529.35 939,292.08
long-term assets (income listed with”-”)
Losses on write-off of fixed assets (income listed with”
1,216,375.40 1,221,382.96
-”)
Change of fair value profit or loss - -57,011.50
Financial expense (income listed with”-”) 38,694,735.35 36,840,257.54
Investment loss (income listed with”-”) -2,327,743.95 -
Decrease of deferred tax assets(increase listed
- -
with”-”)
Increase of deferred tax liabilities(decrease
-51,211.90 -51,211.90
listed with”-”)
Decrease of inventories (increase listed with”-”) 54,657,663.68 -151,140,329.49
Decrease of operating receivables (increase listed
-53,435,552.04 -388,517,789.53
with”-”)
Increase of operating payables (decrease listed
27,758,168.50 560,470,565.69
with”-”)
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Others - -
Net cash flows arising from operating activities 77,678,162.48 61,224,927.73
2. Significant investment and financing activities
— —
unrelated to cash income and expenses
Liabilities transferred to capital - -
Convertible bonds within 1 year - -
Financing leased fixed assets - -
3. Net increase (decrease) of cash and cash equivalent — —
Closing balance of cash 209,847,896.42 163,728,799.97
Less: Opening balance of cash 163,728,799.97 137,324,488.53
Add: Closing balance of cash equivalent - -
Less: Opening balance of cash equivalent - -
Net increase of cash and cash equivalent 46,119,096.45 26,404,311.44
(3) Cash and cash equivalents
Items Closing balance Opening balance
Cash 163,728,799.97 137,324,488.53
Including: Cash on hand 33,102.75 690,839.38
Bank deposit used for paying at any moment 163,695,697.22 136,633,649.15
Other monetary fund for paying at any moment
Cash equivalent
Including: bonds investment with maturity in 3 months
Closing balance of cash and cash equivalents 163,728,799.97 137,324,488.53
Cash and cash equivalents restricted in the parent
company or subsidiary
49. Assets with restricted ownership and use right
Items current year reasons for restriction
Bank acceptance notes secured fund and locked
Monetary fund 76,628,805.27
fund due to litigation
Pledged bank acceptance notes and commercial
Notes receivable 19,291,502.14
acceptance notes
Total 95,920,307.41
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50. Monetary category of foreign currency
(1) Monetary category of foreign currency
Item Closing Balance Exchange Closing Balance
(foreign currency) Rate (RMB)
Cash — — 97,908,849.77
Including：USD 13,519,970.28 6.3757 86,199,274.51
EURO 1,621,892.22 7.2197 11,709,575.26
Accounts receivable — — 44,341,022.46
Including: USD 6,445,660.41 6.3757 41,095,597.09
EURO 449,523.58 7.2197 3,245,425.37
Other receivable — — 1,217,559.01
Including: EURO 168,643.99 7.2197 1,217,559.01
Accounts payable — — 151,937.06
Including: USD 20,567.68 6.3757 131,133.34
EURO 2,881.52 7.2197 20,803.72
Other payable — — 483,463.72
Including: USD 75,829.12 6.3757 483,463.72
51. Government grant
(1) Details
Recorded into
Item amount Presented as
income statement
Dalian sub-factory relocation Other income
48,676,244.95 2,704,235.88
subsidy Deferred income
Development of intelligent Other income
manufacturing equipment 8,000,000.00 1,288,888.87
subsidies Deferred income
Liaoyang Bearing old factory Other income
39,969,172.10 953,225.59
relocation compensation Deferred income
Work-for-training subsidy 928,868.48 Other income 928,868.48
Job stabilization subsidy 491,618.77 Other income 491,618.77
Improvement of high-end bearing Other income
4,723,200.00 472,320.00
production subsidies Deferred income
Subsidy from Dalian Bureau of
464,059.00 Other income 464,059.00
Commerce
Overhaul bearing project Other income
2,400,000.00 240,000.00
discounting interest subsidy Deferred income
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Wafangdian Bearing Company Limited 2021 Annual Report
Recorded into
Item amount Presented as
income statement
2020 National Major Science and
Technology Special Project and
Key R&D Plan Supporting 150,600.00 Other income 150,600.00
Funds-High-performance Motor
Insulated Bearing Technology
High-tech enterprise subsidies 100,000.00 Other income 100,000.00
Other income
Industry Development Fund 4,877,400.00 97,548.00
Deferred income
Technical master studio Other income
700,000.00 52,918.64
development subsidy Deferred income
Six to one stable skill allowance 50,000.00 Other income 50,000.00
First sets subsidy 46,000.00 Other income 46,000.00
High-skilled personnel training
36,720.00 Other income 36,720.00
subsidies
Tax handling charge refund 32,811.97 Other income 32,811.97
Funding for young scientific and
5,000.00 Other income 5,000.00
technological workers
State treasury withdrawal income 2,316.58 Other income 2,316.58
Beijing social security fund
233.66 Other income 233.66
collection and return
Total 111,654,245.51 — 8,117,365.44
(2) Government grant refund: No.
VII. Change of Consolidation Scope
No change.
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VIII. Interest in other entity
1. Equity of subsidiaries
(1) Organization structure of group company
Name of Nature of Share（%）
Location Registered Location Method
subsidiary operation Direct Indirect
Wazhou Liaoyang Manufacturing
Liaoyang Baita
Bearing and selling
Liaoyang District Weiguo Rd 100.00 - acquisition
construction bearing and
No.61
Co.,Ltd machines
Dalian Wazhou Manufacturing
Dalian Free Trade
Precision Motor and selling
Dalian Zone Sanshili 100.00 - investment
Car Bearing bearing and
Yongsheng Rd No.12
Company Limited machines
Wazhou Precision
Manufacturing
of Spherical
Wafangdian Beigongji and selling
Roller Bearings Wafangdian 100.00 - acquisition
St No.1 bearing and
(Wafangdian)Co.,
machines
Ltd
2. No subsidiary with shareholding percentage change still within control this year.
IX. Risk Related to Financial Instruments
The main financial instruments held by the group company include borrowing, accounts
receivable, and accounts payable, tradable financial assets, tradable financial liability etc. The
details introduction about each financial instrument is referred to this note No.VI. above. The
related risks of these financial instruments and the risk management policy conducted to
reduce these risks by the group company are introduced as below. The Group management
conducts to manage and monitor these risks exposure and control these risks under certain
risk level.
1. Objectives and policies of each risk management
The objectives of risk management conducted by the group company are to reach the balance
between risk and profit return by reducing the negative influence to operating performance to
the minimum level as well as maximising the shareholders’ and other investors’ profits.
Based on these objectives, the basic risk management policy is to recognize and analyse all
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Wafangdian Bearing Company Limited 2021 Annual Report
sorts of risk that the group company faced with, to set up the proper risk tolerance bottom
line conducting risk management, as well as to monitor these risks in a timely and effective
manner, and to ensure these risks under the limit level.
(1) Market risk
1) Currency risk
The currency risk is referred as the risk caused by the fluctuation of exchange rate. The main
currency risk that the company faced with is related to the USD since the main export
business is settled by USD. Other than the balance of foreign currency presented in Note VI.
50, all assets and liabilities of company are presented in RMB On December 31, 2021.The
balance in foreign currency of assets and liabilities may cause currency risk with influence to
operating performance.
2) Interest risk
The main potential interest risk which is caused by the fluctuation of the cash flow of
financial instruments is related to the floating rate of bank loan. The policy that adopted by
the Group is to maintain the floating rate of loan.
3) Price risk
Up to December 31, 2021, financial asset measured at FV may be affected by the market
price.
(2) Credit risk
On 31 December, 2021, the Group’s most probable credit risk exposure is from the financial
loss primarily due to the failure of fulfilling the obligation by one party of the contract. The
impairment losses of company’s financial assets are including:
Among the book value of recognized financial assets in the consolidated statement of
financial position, for the financial instruments measured at fair value, their book values
reflect the risk exposure, however, not maximum risk level; the level is changing along with
the fair value.
As the aim to reduce the credit risk, the Group sets up the credit department to ensure the
credit limit, to examine and approve the credit application, and to carry out monitor
procedures to claim expired creditor’s right. In addition, at each of balance sheet date, the
Group checks with every single process of receipt of receivable to ensure the sufficiency of
provision of bad debt. Therefore, the management of the Group believed the credit risk had
been minimized significantly.
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The working capital has low level of credit risk since the cash is deposited in the banks with
high credit reputation.
The Group adopts necessary policy to ensure all clients with good credit record. Apart from
the top 5 key debtors, there is no other significant intensive credit risk.
Total amount of top 5 debtors is 223 million Yuan.
(3) Liquidity risk
The liquidity risk is referred as the Group failed to fulfil its financial obligations by the due
date. The Group manages the liquidity risk by the maintain sufficiency of working capital to
cover the expired debt to avoid the unacceptable losses or the damage of Group’ reputation.
The Group analyses the debt structure and due time periodically to ensure the sufficiency of
available cash flow. The bank loan activities are under monitoring by management to make
sure to comply with the loan agreement. At the same, the Group has consultation with
financial organizations about the financing activities to maintain the credit level and to
reduce the credit risk.
The Group’s main financial resources come from bank loan. By the date of 31 December,
2021, the unencumbered bank loan credit is 803.8 million Yuan.
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X. Disclosure of Fair Value
1. There is no asset or liability measured by fair value at the end of report period.
FV at the year end
Items 1st Level FV 2nd Level FV 3rd Level FV
Total
Measurement Measurement Measurement
I 、 Continuously
— — — —
measured at FV
(I) .Tradable financial
322,037.93 - 322,037.93
asset
1. Financial asset
measured at - - -
FVTPL
Debt instrument
- - -
investment
Equity instrument
322,037.93 - 322,037.93
investment
Derivative
- - - -
financial asset
Others - - - -
2. Designated as
financial asset
- - - -
measured at
FVTP
3. Financing
- 28,115,340.20 - 28,115,340.20
receivable
4. Other equity
instrument - - 11,926,856.64 11,926,856.64
investment
2. Market value determination for 1st Level FV Measurement item
The group measured the part of equity instrument investment included in the tradable
financial asset at unadjusted closing price in the open market on December 31st ,2021.
3. Qualitative and quantitative information on the valuation techniques and important
parameters used for 2nd Level FV Measurement
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Wafangdian Bearing Company Limited 2021 Annual Report
No.
4. Qualitative and quantitative information on the valuation techniques and important
parameters used for 3rd Level FV Measurement
No.
5. Adjustment information and sensitivity analysis of unobservable parameters between the
fair value at the beginning of the year and the end of the year for 3rd Level continuously
measured at FV Measurement
No.
6. Continuously measured at FV, swap between any level
No.
7. Valuation techniques change and reason for change
No.
8. Asset and liability not measured at FV but disclosed as FV
No.
XI. Related Parties Relationship and Transactions
1. Related parties relationship
(1) Parent company and ultimate controller
1) Parent company and ultimate controller
Shareholdi Voting
Parent Registered Registered ng power
Business nature
company address capital percentage percentage
(%) (%)
No. 1 North Manufacture and
Wazhou Gongji Street, sales of bearing
519,869,400.00 60.61 60.61
Group Wafangdian and other
City, Dalian equipments
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Wafangdian Bearing Company Limited 2021 Annual Report
2) Registered capital and its movement of parent company
Parent Opening Balance Increase Decrease Closing Balance
company
Wazhou Group 519,869,400.00 - - 519,869,400.00
3) Share held and its movement of parent company
Amount Share holding(%)
Parent company Closing Balance Opening Balance Closing Opening
Balance Balance
Wazhou Group 244,000,000.00 244,000,000.00 60.61 60.61
(2). Subsidiaries
Referring to the content in Note III. 1. (1) Organization structure of group company.
(3) Other related parties
Name of related party Related party relationship
Dalian Wazhou Bearing Manufacturing Other entity controlled by the same parent
Equipment Co., Ltd company and ultimate controlling party
Other entity controlled by the same parent
Wazhou Precision Steel Ball Co., Ltd
company and ultimate controlling party
Other entity controlled by the same parent
Wazhou Exact Forge Co., Ltd.,
company and ultimate controlling party
Wazhou Group Precision Turnplate Bearing Co., Other entity controlled by the same parent
Ltd company and ultimate controlling party
Wazhou Group Exact Transmission Bearing Other entity controlled by the same parent
Co., Ltd company and ultimate controlling party
Wazhou Group Equipment Technology Project Other entity controlled by the same parent
Co., Ltd. company and ultimate controlling party
Wazhou Group Special Precision Bearing Co., Other entity controlled by the same parent
Ltd. company and ultimate controlling party
Liaoning North Metal Materials Supply Chain Other entity controlled by the same parent
Co., Ltd company and ultimate controlling party
Other entity controlled by the same parent
Wazhou Group (USA) Bearing Co., Ltd.
company and ultimate controlling party
Other entity controlled by the same parent
Wazhou Group High-End Auto Bearing Co.,Ltd
company and ultimate controlling party
Other entity controlled by the same parent
Wazhou Group Precision Roller Co.,Ltd
company and ultimate controlling party
Other entity controlled by the same parent
Wazhou Group Precision Retainer Co.,Ltd
company and ultimate controlling party
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Wafangdian Bearing Company Limited 2021 Annual Report
Name of related party Related party relationship
Other entity controlled by the same parent
Kugel- und Rollenlagerwerk Leipzig GmbH
company and ultimate controlling party
Other entity controlled by the same parent
Wafangdian Bearing Power Co.,Ltd
company and ultimate controlling party
Wazhou Group National Bearing Engineering Other entity controlled by the same parent
Technology Research Centre Co.,Ltd company and ultimate controlling party
Dalian Wazhou Jinzhou Machinery Co., Ltd Other related party
Wafangdian Tongda Bearing Manufacturing
Other related party
Co., Ltd
Dalian WazhouFengyuan Machinery Co., Ltd Other related party
ZWZ Bearing Europe GmbH Other related party
Note: other related party is the affiliate company with actual control right.
2. Related party transactions
(1) Purchase of goods, provide, and receive labour services
1) Purchase of goods/receive labour services
Authorized Whether
limit(Shenzhen over the
Related party Content current year prior year
Security authoriz
Exchange) ed limit?
Purchase of
1,055,000,000.0
Wazhou Group goods and 384,964,630.93 N 554,464,980.10
0
equipment
Purchase of
Wazhou Exact
goods and 279,540,479.17 456,000,000.00 N 232,565,350.89
Forge Co.,Ltd.
equipment
Wazhou Group
Purchase of
Precision Roller 36,414,273.51 60,000,000.00 N 31,236,970.36
goods
Co.,Ltd
Wazhou Group
Purchase of
High-end Auto 95,847,261.64 170,000,000.00 N 88,569,951.11
goods
Bearing Co.,Ltd
Wazhou Group
Purchase of
Precision 158,981,783.80 150,000,000.00 Y 88,542,013.87
goods
Retainer Co.,Ltd
Dalian Wazhou
Bearing
Purchase of
Manufacturing 10,411,879.53 65,000,000.00 N 28,337,581.46
goods
Equipment Co.,
Ltd
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Wafangdian Bearing Company Limited 2021 Annual Report
Wafangdian
Tongda Bearing Purchase of
- 6,000,000.00 N 3,007,076.00
Manufacturing goods
Co., Ltd.
Wafangdian
Purchase of
Bearing Power - 52,700,000.00 N 33,728,270.09
goods
Co.,Ltd
Dalian Wazhou
Jinzhou Purchase of
16,734,579.22 25,000,000.00 N 9,127,704.56
Machinery Co., goods
Ltd
Wazhou Group
Exact Purchase of
- - N 64,787.94
Transmission goods
Bearing Co., Ltd
Dalian Wazhou
Fengyuan Purchase of
5,832,583.86 20,000,000.00 N 3,285,916.69
Machinery Co., goods
Ltd
Wazhou Group
Precision Purchase of
356,894.15 20,000,000.00 N 4,832,696.42
Turnplate goods
Bearing Co., Ltd
Wazhou Group
Purchase of
Special Precision 5,000,000.00 N 984,386.00
goods
Bearing Co., Ltd.
Wafangdian
Purchase of
Bearing Power 20,628,381.43 1,000,000.00 Y -
goods
Co.,Ltd
Wazhou Group
National Bearing
Engineering Purchase of
52,345.13 2,000,000.00 N -
Technology equipment
Research Centre
Co.,Ltd
Wazhou Group
National Bearing
Engineering Service
18,789,106.13 - Y 12,474,544.99
Technology accepted
Research Centre
Co.,Ltd
Wafangdian Service
228,624.00 250,000.00 N
Bearing Hospital accepted
Wafangdian
Bearing Service
123,540.00 250,000.00 N
Education and accepted
Training Center
Dalian Wazhou
Bearing
Service
Manufacturing 4,019,157.74 - Y -
accepted
Equipment Co.,
Ltd
171
Wafangdian Bearing Company Limited 2021 Annual Report
Wafangdian
Tongda Bearing Service
4,290,342.19 2,000,000.00 Y -
Manufacturing accepted
Co., Ltd.
Wafangdian
Service
Bearing Power 3,849,143.16 24,800,000.00 N -
accepted
Co.,Ltd
Service
Wazhou Group 2,168,767.50 - Y -
accepted
Purchase of
Wazhou Exact 1,055,000,000.0
factory 11,222,201.84 N -
Forge Co.,Ltd. 0
building
Total 1,054,103,810.9 3,184,500,000.0
— — 1,091,222,230.48
3 0
2) Sales of goods/provide labour services
Related party Content current year prior year
Wazhou Exact Forge Co.,Ltd Sales of goods 99,574,164.81 72,941,185.86
Wazhou Group (USA) Bearing Co., Ltd. Sales of goods 85,998,248.43 58,684,286.70
Wazhou Group Precision Roller Co.,Ltd Sales of goods 9,900,719.63 12,162,919.43
Wazhou Group Precision Turnplate
Sales of goods 45,677,165.01 134,557,371.56
Bearing Co.,Ltd
Wazhou Group Sales of goods 62,699,726.97 94,974,978.10
Wazhou Group High-end Auto Bearing
Sales of goods 2,792,976.77 11,717,289.78
Co.,Ltd
Kugel- und Rollenlagerwerk Leipzig
Sales of goods 8,038,678.06 6,306,612.47
GmbH
Wazhou Group Exact Transmission
Sales of goods 1,307,958.30 1,770,715.97
Bearing Co., Ltd
ZWZ Bearing Europe GmbH Sales of goods - 569,344.89
Wazhou Group Special Precision
Sales of goods 1,329,682.51 683,130.35
Bearing Co., Ltd.
Wafangdian Tongda Bearing
Sales of goods 1,149,236.61 706,587.62
Manufacturing Co., Ltd.
Dalian Wazhou Manufacturing
Sales of goods 105,729.38 115,999.53
Equipment Co., Ltd
Wazhou Group Precision Retainer
Sales of goods 44,277.15 353,839.82
Co.,Ltd
Wazhou Group National Bearing
Engineering Technology Research Sales of goods 161,368.58 82,761.40
Centre Co.,Ltd
Dalian Wazhou Jinzhou Machinery Co.,
Sales of goods - 1,836.00
Ltd
provide labour
Wazhou Group Precision Roller Co.,Ltd 2,940,693.43 4,689,329.91
services
Wazhou Group High-end Auto Bearing provide labour
4,842,293.36 1,325,868.82
Co.,Ltd services
172
Wafangdian Bearing Company Limited 2021 Annual Report
Wazhou Group Exact Transmission provide labour
41,906,641.29 20,422,468.73
Bearing Co., Ltd services
Wazhou Group Special Precision provide labour
492,193.45 474,852.11
Bearing Co., Ltd. services
Dalian Wazhou Jinzhou Machinery Co., provide labour
161,303.24 493,153.65
Ltd services
provide labour
Wazhou Exact Forge Co.,Ltd 1,141,806.30 435,147.16
services
Dalian Wazhou Bearing Manufacturing provide labour
438,118.96 361,345.09
Equipment Co., Ltd services
Wafangdian Tongda Bearing provide labour
7,342,059.63 6,493,958.68
Manufacturing Co., Ltd. services
Wazhou Group Precision Retainer provide labour
88,268.71 257.88
Co.,Ltd services
provide labour
Wazhou Group 21,178,229.12 17,761,241.32
services
Wazhou Group Precision Turnplate provide labour
1,505,490.36 416,821.00
Bearing Co., Ltd services
Sales of
Wazhou Group 25,663.72 767,943.02
equipment
Sales of
Wazhou Group Precision Roller Co.,Ltd - 446,548.73
equipment
Wazhou Group Precision Retainer Sales of
181,415.92 506,194.72
Co.,Ltd equipment
Dalian Wazhou Bearing Manufacturing Sales of
132,743.36 20,884.96
Equipment Co., Ltd equipment
Wazhou Group High-end Auto Bearing Sales of
- 132,743.37
Co.,Ltd equipment
Dalian Wazhou Jinzhou Machinery Co., Sales of
68,141.59 535,188.62
Ltd equipment
Sales of factory
Wazhou Group 53,686,153.41 -
building
Total — 401,224,994.65 450,912,807.25
(2) Assets rent
1) Assets rent out
Category of current year prior year
Lessor Lessee
assets rent out profits profits
The Company Wazhou Exact Forge Ltd. Buildings 1,290,614.91 1,035,620.00
Wazhou Group High-end
The Company Buildings 2,178,415.20 6,125,769.60
Auto Bearing Co.,Ltd
Wazhou Group Precision
The Company Buildings 764,023.00 764,023.00
Retainer
The Company Dalian Wazhou Jinzhou Buildings 401,580.00 803,160.00
173
Wafangdian Bearing Company Limited 2021 Annual Report
Category of current year prior year
Lessor Lessee
assets rent out profits profits
Machinery Co., Ltd
Dalian Wazhou Fengyuan
The Company Buildings 121,192.27 107,460.00
Machinery Co., Ltd
The Company Wazhou Group Buildings 700,999.20 487,970.40
Wazhou Group High-end
The Company Equipments 8,703,744.28 10,652,629.13
Auto Bearing Co.,Ltd
Wazhou Group Precision
The Company Equipments 696,332.22 1,579,396.30
Retainer Co.,Ltd
The Company Wazhou Exact Forge Ltd. Equipments 568,672.27 -
Wazhou Group Precision
The Company Equipments 402,799.86 970,276.18
Roller Co.,Ltd
The Company Wazhou Group Equipments 8,122,924.13 8,075,302.90
Land (located in
No.1, Phrase1,
The Company Wazhou Exact Forge Ltd. North Gongji 768,312.54 -
Street, with area
of 23,499 m).
Land (located in
No.1, Phrase1,
The Company Wazhou Group North Gongji 302,255.25 -
Street, with area
of 20,150.35m)
Land (located in
No.1, Phrase1,
Wazhou Group Precision North Gongji
The Company 263,148.00 263,148.00
Retainer Co.,Ltd
Street, with area
of 17,543.33m)
Land (located in
No.1, Phrase1,
The Company Wazhou Group North Gongji 197,565.00 -
Street, with area
of 13,171 m).
Land (located in
No.1, Phrase1,
North Gongji
The Company Wazhou Group Street, with area - 435,911.55
of 30,680.77m
).
Land (located in
No.1, Phrase1,
North Gongji
The Company Wazhou Exact Forge Ltd. Street, with area - 433,987.00
of 48,220.82 m
).
The Company Wazhou Exact Forge Ltd. Land located - 206,670.00
in No.1,
174
Wafangdian Bearing Company Limited 2021 Annual Report
Category of current year prior year
Lessor Lessee
assets rent out profits profits
Phrase1, North
Gongji Street,
steel warehouse
Land (located in
No.1, Phrase1,
The Company Wazhou Exact Forge Ltd. North Gongji - 118,215.00
Street, with area
of 7,881 m).
The Company Wazhou Exact Forge Ltd. Buildings 1,290,614.91 1,035,620.00
Wazhou Group High-end
The Company Buildings 2,178,415.20 6,125,769.60
Auto Bearing Co.,Ltd
Wazhou Group Precision
The Company Buildings 764,023.00 764,023.00
Retainer
2)Assets under lease
current year prior year
Lessor Lessee Category of assets rent in lease lease
premium premium
Special large Land (located in Wazhou
Wazhou Group branch of the Group industrial park, with 291,018.60 291,019.00
Company area of 19,401.24 m).
Buildings(located in
Special large Wazhou Group industrial
Wazhou Group branch of the park, with area of 1,653,788.40 1,653,788.00
Company
13781.57m )
Special large Land ((located in Wazhou
Wazhou Group branch of the Group industrial park, with 187,834.95 184,295.00
Company area of 12522.33m)
Buildings((located in
Special large Wazhou Group industrial
Wazhou Group branch of the 1,026,129.60 1,006,810.00
park, with area of
Company
8551.08m )
Special large
Wazhou Group branch of the Equipment 300,443.98 337,390.62
Company
Wafangdian
Bearing Co.,Ltd Land (No.2 Plant West
Wazhou Group spare part Industry Park with area of 169,350.00 169,350.00
manufacturing 11290m)
branch
Bearing Part Buildings (No.2 Plant West
Manufacturing Industry Park with area of
Wazhou Group 783,720.00 783,720.00
Branch of the
6531m)
Company
175
Wafangdian Bearing Company Limited 2021 Annual Report
current year prior year
Lessor Lessee Category of assets rent in lease lease
premium premium
Wafangdian
Bearing Co.,Ltd
Wazhou Group spare part Equipment 131,422.00 132,252.97
manufacturing
branch
Wafangdian Buildings (Wazhou Group
Bearing Co., Industry Park with area of
Wazhou Group 474,527.00 649,082.00
Ltd(logistic
3,954.39m)
department)
Wafangdian Land (Wazhou Group
Bearing Co., Industry Park with area of
Wazhou Group 174,555.00 107,405.70
Ltd(logistic
11,637m)
department)
Wafangdian Buildings (Wazhou Group
Bearing Co., Industry Park Waste field
Wazhou Group 36,000.00 32,811.00
Ltd(logistic
with area of 400m)
department)
Wafangdian Land (Wazhou Group
Bearing Co., Industry Park Waste field
Wazhou Group 6,000.00 26,270.00
Ltd(logistic
with area of 400m)
department)
Wafangdian Buildings(located in
Bearing Co., Wazhou Group industrial
Wazhou Group park, with area of 3393.8m 203,628.00 -
Ltd(logistic
department) )
Wafangdian Land (located in Wazhou
Bearing Co., Group industrial park, with
Wazhou Group 38,502.00 -
Ltd(logistic
area of 5133.59 m).
department)
The railway Plant (located in No.3 west
bearing industrial park with area of
Wazhou Group 2,182,200.00 2,182,200.00
company of the
18,185.00 m).
Company
Special Large Land (located in west
Wazhou Group Branch of the industrial park, with area of 441,900.00 441,900.00
Company 29,460.00 m).
Special Large Plant (located in No.5 west
Wazhou Group Branch of the industrial park with area of 389,471.00 -
Company 3,245.59 m).
The Railway Land (located in No.5 west
Bearing industrial park with area of
Wazhou Group 84,150.00 473,621.00
company of the
5,610.00 m).
Company
The railway
bearing
Wazhou Group Equipment 968,722.12 967,891.13
company of the
Company
176
Wafangdian Bearing Company Limited 2021 Annual Report
current year prior year
Lessor Lessee Category of assets rent in lease lease
premium premium
Wafangdian
Bearing Co.,
Wazhou Group Buildings 18,000.00 35,203.00
Ltd(QCdepartm
ent)
Wafangdian
Bearing Co.,
Wazhou Group Buildings 2,000.00 8,000.00
Ltd(QCdepartm
ent)
Two finished
Wazhou Group branch of the Buildings 1,118,022.00 1,118,022.00
Company
Two finished Land (located in Wazhou
Wazhou Group branch of the Group industrial park, with 211,689.00 211,689.00
Company area of 14,112.57 m).
Two finished
Wazhou Group branch of the Equipment 208,183.05 250,862.27
Company
Two finished Buildings(Wazhou Group
Wazhou Group branch of the Park with area of 1011.66m 91,049.00 -
Company )
Two finished Land (Wazhou Group Park
Wazhou Group branch of the 17,216.00 -
with area of 1530.27m)
Company
Precision Buildings(Wazhou Group
Wazhou Group Bearing plant of Park with area of 19494.2m 2,339,304.00 2,339,304.00
the Company )
Precision Land (Wazhou Group Park
Wazhou Group Bearing plant of 455,700.00 455,700.00
with area of 30380m)
the Company
Precision
Wazhou Group bearing branch Equipment 23,213.68 24,493.68
of the Company
The Precision Land (No.2, West Industry
Rolling Park with area of 29,930m
Wazhou Group 2,708,310.00 2,708,310.00
(Wafangdian) of
)
the Company
Dalian Wazhou Land (Shishanli,Jinzhou
Wazhou Group Precision Motor 380,835.00 380,835.00
with area of 28,210m)
Bering Co.,Ltd
Wafangdian
Land (Wazhou Group
Bearing Co.,
Wazhou Group Industry Park Iron Field - 31,637.00
Ltd(logistic
with area of 836.1m)
department)
Wafangdian
Wazhou Group Bearing Co., Building - 35,198.00
Ltd(supply
177
Wafangdian Bearing Company Limited 2021 Annual Report
current year prior year
Lessor Lessee Category of assets rent in lease lease
premium premium
chain
management
department)
The Precision
Rolling
Wazhou Group Equipment 947,552.00 947,552.00
(Wafangdian) of
the Company
Wafangdian Buildings (located in
Bearing Co., Wazhou Group industrial
Wazhou Group park, with area of 39.51 m 4,741.00 -
Ltd(QCdepartm
ent) ).
Wafangdian Land (located in Wazhou
Bearing Co., Group industrial park, with
Wazhou Group 443.00 -
Ltd(QCdepartm
area of29.55 m).
ent)
Wafangdian Buildings (located in
Bearing Co., Wazhou Group industrial
Wazhou Group park, with area of 327.05 m 39,246.00 -
Ltd(QCdepartm
ent) ).
Wafangdian Land (located in Wazhou
Bearing Co., Group industrial park, with
Wazhou Group 2,389.00 -
Ltd(QCdepartm
area of 159.29 m).
ent)
Wafangdian Buildings (located in
Bearing Co., Wazhou Group industrial
Wazhou Group park, with area of 82.33 m 9,880.00 -
Ltd(QCdepartm
ent) ).
Wafangdian Land(located in Wazhou
Bearing Co., Group industrial park, with
Wazhou Group 905.00 -
Ltd(QCdepartm
area of 60.36 m).
ent)
Special large Buildings (located in
Wazhou Group branch of the Wazhou Group industrial 60,360.00 -
Company park, with area of 503 m).
(3) Related party assets transfer and debt structure reconstruction
Related party Type of transaction current year prior year
Gain on debt
Wazhou Exact Forge Co.,Ltd., - 810,000.00
restructuring
Wazhou Group Precision Retainer Gain on debt
- 548,000.00
Co.,Ltd restructuring
Dalian Wazhou Bearing
Gain on debt
Manufacturing Equipment Co., 5,500.00 58,829.93
restructuring
Ltd
National Bearing Engineering Gain on debt 23,555.17 -
178
Wafangdian Bearing Company Limited 2021 Annual Report
Related party Type of transaction current year prior year
Technology Research Centre of restructuring
Wazhou Group
Wazhou Group Equipment Gain on debt
- 223,289.45
Technology Project Co., Ltd. restructuring
(4) Management remuneration
Item current year prior year
Total 2,456,150.92 1,747,360.30
(5) Use of trademark
According to the ‘Trade Mark License contract’ signed between the Company and the
Group on January 1, 2021, within the valid period up to December 31, 2021, the Company
shall pay license fees to the Group at 1% of net sales by using the trade mark of Wazhou
Group for self-manufactured stock. In 2021, the Company shall pay license fees of
12,206,965.16 Yuan (excl VAT).
(6) Acceptance of comprehensive service
Other expenses paid to the Group and overseas subsidiary during the year
Item current year prior year
Firelight and security 2,451,100.00 2,618,935.31
Technology service - 817,869.88
Total 2,451,100.00 3,436,805.19
3. Balances with related parties
(1) Accounts receivable due from related parties
Closing Balance Opening Balance
Item Related party
Book Balance Provision Book Balance Provision
Accounts Wazhou Group High-end
- - 68,678,602.65 -
receivable Auto Bearing Co.,Ltd
Accounts Wazhou Exact Forge
- - 16,662,178.60 -
receivable Co.,Ltd.,
Accounts Wazhou Group Precision
6,879,860.08 - 57,817,522.14 -
receivable Turnplate Bearing Co.,Ltd
Accounts Wazhou Group Precision
99,379,254.15 - 58,389,070.16 -
receivable Roller Co.,Ltd
Accounts Wazhou Group (USA)
34,065,432.06 - 12,724,312.13 -
receivable Bearing CO., Ltd.
179
Wafangdian Bearing Company Limited 2021 Annual Report
Closing Balance Opening Balance
Item Related party
Book Balance Provision Book Balance Provision
Accounts Wazhou Group Precision
- - 4,695,277.43 -
receivable Retainer Co.,Ltd
Accounts
Wazhou Group 3,278,021.19 - 45,948,737.23 -
receivable
Wazhou Group Exact
Accounts
Transmission Bearing Co., 28,599,541.22 - 13,380,098.00 -
receivable
Ltd
Accounts Wazhou Group Special
1,660,069.24 - 96,675.89 -
receivable Precision Bearing Co., Ltd.
Accounts Kugel- und Rollenlagerwerk
603,628.47 - 951,712.17 -
receivable Leipzig GmbH
Wafangdian Tongda
Accounts
Bearing Manufacturing Co., - - 246,225.41 -
receivable
Ltd.
Accounts
ZWZ Bearing Europe GmbH - - 165,782.22 -
receivable
Accounts Dalian Wazhou Jinzhou
- - 534,568.97 -
receivable Machinery Co., Ltd
Liaoning North Metal
Prepayment Materials Supply Chain Co., 5,000,000.00 - - -
Ltd
Wazhou Bearing Power
Prepayment 215,284.74 - 1,071,190.57 -
Co.,Ltd
Dalian Wazhou Bearing
Prepayment Manufacturing Equipment 450,422.00 - 12,670.00 -
Co., Ltd
Wazhou Group Precision
Prepayment - - 3,157,266.38 -
Roller Co.,Ltd
Prepayment Wafangdian Bearing Co., Ltd - - 674,220.86 -
Wazhou Group High-end
Prepayment - - 8,019,600.29 -
Auto Bearing Co.,Ltd
Other Wazhou Group Lanzhou 778,950.6
- - 778,950.65
receivable sales office 5
Other
Wazhou Group 49,779.39 - 20,254.45 -
receivable
(2) Accounts payable due from related parties
Closing Opening
Item Related party
Balance Balance
Accounts payable Wazhou Exact Forge Co.,Ltd., 3,252,037.66 11,011,062.39
Accounts payable Wazhou Group Co.,Ltd 141,326,357.49 115,348,014.25
Dalian Wazhou Bearing Manufacturing
Accounts payable 3,522,241.14 2,664,211.48
Equipment Co., Ltd
Accounts payable Wazhou Group High-end Auto Bearing Co.,Ltd - 9,956,743.70
180
Wafangdian Bearing Company Limited 2021 Annual Report
Closing Opening
Item Related party
Balance Balance
Wafangdian Tongda Bearing Manufacturing
Accounts payable 1,958,543.96 846,928.89
Co., Ltd.
Wazhou Group Equipment Technology Project
Accounts payable 29,700.00 29,700.00
Co., Ltd.
Accounts payable Dalian Wazhou Jinzhou Machinery Co., Ltd 8,441,546.14 2,388,530.75
Accounts payable Dalian Wazhou Fengyuan Machinery Co., Ltd 4,198,518.84 1,247,725.38
National Bearing Engineering Technology
Accounts payable 9,289,575.00 4,453,686.53
Research Centre of Wazhou Group
Accounts payable Wazhou Precision Steel Ball Co.,Ltd - 1,125,369.23
Accounts payable Wazhou Group Precision Roller Co.,Ltd - 2,391,436.65
Accounts payable Wazhou Group Precision Retainer Co.,Ltd 15,679,326.25 6,147,681.16
Accounts payable Wazhou Bearing Power Co.,Ltd 2,447,640.94 1,012,371.15
Wazhou Group Exact Transmission Bearing
Accounts payable - 682,054.80
Co., Ltd
Wafangdian The Precision Rolling
Accounts payable - 14,372,680.58
Manufacturing Branch
The Railway Rolling Bearing Manufacturing
Accounts payable - 6,889,299.47
Branch of Wazhou Group
Accounts payable Wazhou Group High-end Auto Bearing Co.,Ltd 14,776,614.83 7,818,010.31
Wafangdian Bearing Education and Training
Accounts payable 56,400.00
Center
Accounts payable Wafangdian Bearing Hospital 103,724.00
Other payables Wazhou Group Co.,Ltd 38,265,278.19 38,476,586.58
Wazhou Group Equipment Technology Project
Other payables 952,000.00 952,000.00
Co., Ltd.
Dalian Wazhou Bearing Manufacturing
Other payables - 211,088.45
Equipment Co., Ltd
Other payables Wazhou Bearing Power Co.,Ltd 1,714,697.56 -
4. Others
No.
XII. Share based payment
No.
XIII. Contingency
No.
.XIV. Commitment
Until 31 December, 2021, the Group does not have any other significant commitments.
181
Wafangdian Bearing Company Limited 2021 Annual Report
XV. Events after the Balance Sheet Date
Until the financial report date, there is no significant post balance sheet event for disclosure.
XVI. Other Significant Events
1. Prior period errors correction and effect
No.
2. Debt restructuring
In 2021, the Company has signed the ‘Debt Restructuring Agreement’ with the creditors,
through cash or bank notes settlement below the debt carrying value, and implemented the
restructuring, which results in the gain on debt restructuring RMB 2,569,901.39 Yuan and were
recognized as investment income.
In 2021, the Company gave up some of receivables and has signed the ‘Debt Restructuring
Agreement’ with the debtors, through cash or bank notes settlement below the debt carrying
value, and implemented the restructuring, which results in the debt restructuring income RMB
760,978.56 Yuan and were recognized as investment income.
XVII. Notes to the Main Items of the Financial Statements of Parent Company
1. Account receivable
(1) Category of accounts receivable
Closing balance
Items Booking balance Provision Booking
Amount % Amount % balance
Accounts
receivable with
77,309,692.95 6.84 77,309,692.95 100.00 -
individual bad debt
provision
Accounts
receivable with
bad debt provision
1,053,553,006.73 93.16 64,421,657.30 — 989,131,349.43
based on the
characters of credit
risk portfolio
-Aging portfolio 888,678,707.98 78.58 64,421,657.30 7.25 824,257,050.68
182
Wafangdian Bearing Company Limited 2021 Annual Report
-Related party
164,874,298.75 14.58 - - 164,874,298.75
portfolio
Total 1,130,862,699.68 100.00 141,731,350.25 — 989,131,349.43
(Continued)
Opening Balance
Items Booking balance Provision
Booking balance
Amount % Amount %
Accounts
receivable with
63,437,865.85 5.55 63,437,865.85 100.00 -
individual bad
debt provision
Accounts
receivable with
bad debt
provision based 1,079,592,293.76 94.45 28,394,940.13 — 1,051,197,353.63
on the characters
of credit risk
portfolio
-Aging portfolio 722,785,069.56 63.23 28,394,940.13 3.93 694,390,129.43
-Related party
356,807,224.20 31.22 - - 356,807,224.20
portfolio
Total 1,143,030,159.61 100.00 91,832,805.98 — 1,051,197,353.63
1) Accounts receivable with individual bad debt provision
Closing Balance
Proportion Reasons for
Debtors name Accounts Provision for
(%) provision
receivable bad debts
Anhui Conch Kawasaki Equipment
4,093,012.86 4,093,012.86 100.00 uncollectable
Manufacturing Co., Ltd
Liaoning Yinheng Galvanized
3,213,308.67 3,213,308.67 100.00 uncollectable
Colored Coated Steel Sheet Co. Ltd
Shandong Hengji New Materials
2,284,666.96 2,284,666.96 100.00 uncollectable
Co., Ltd
Heilongjiang Longmei Logistics Co.,
2,134,140.98 2,134,140.98 100.00 uncollectable
Ltd
Shandong Yuanda Board Technology
1,804,722.77 1,804,722.77 100.00 uncollectable
Co., Ltd
183
Wafangdian Bearing Company Limited 2021 Annual Report
Closing Balance
Proportion Reasons for
Debtors name Accounts Provision for
(%) provision
receivable bad debts
HBIS Company Limited Handan
1,608,611.42 1,608,611.42 100.00 uncollectable
Branch
An Gang steel Co.,Ltd 1,595,050.69 1,595,050.69 100.00 uncollectable
Bazhou Tianli Tube Co., Ltd 1,325,600.76 1,325,600.76 100.00 uncollectable
Zhejiang Yesheng New Material Co.
1,301,760.00 1,301,760.00 100.00 uncollectable
Ltd
Yingkou Iron & Steel Co. Ltd 1,256,973.91 1,256,973.91 100.00 uncollectable
Sinosteel Xi'an Heavy Machinery
1,065,321.47 1,065,321.47 100.00 uncollectable
Co., Ltd
Shantui Construction Machinery
1,047,576.65 1,047,576.65 100.00 uncollectable
Co., Ltd.
HenanTaihang Vibration Machinery
989,207.41 989,207.41 100.00 uncollectable
Co., Ltd
Donghai New Material Co. Ltd 942,558.20 942,558.20 100.00 uncollectable
Shanghai Jieru Heavy Industry
923,603.80 923,603.80 100.00 uncollectable
Mechanical Equipment Co., Ltd
Tangshan Guofeng Iron and Steel
883,297.41 883,297.41 100.00 uncollectable
Co. LTD
Jilin Chengzhong Auto Parts Co.,
872,874.22 872,874.22 100.00 uncollectable
Ltd
Shandong Changhua Machinery
846,943.06 846,943.06 100.00 uncollectable
Technology Co., Ltd
Heilongjiang Longmei Hongtai
835,000.00 835,000.00 100.00 uncollectable
International Trade Co., Ltd
China Second Heavy Machinery
Group (Deyang) Wanxin 795,887.92 795,887.92 100.00 uncollectable
Engineering Equipment Co. Ltd
Benxi Beiying Steel (Group) Co. Ltd 775,804.98 775,804.98 100.00 uncollectable
Bengang Steel Plates Co., Ltd 770,000.00 770,000.00 100.00 uncollectable
Materials Branch of NHI 739,585.80 739,585.80 100.00 uncollectable
Shandong Yuntong New Material
711,438.94 711,438.94 100.00 uncollectable
Technology Co. Ltd
Dongfeng Transmission Co.,Ltd 704,098.23 704,098.23 100.00 uncollectable
Shanghai Weiqiang Heavy Industry
673,595.42 673,595.42 100.00 uncollectable
Mechanic Co.,Ltd
Dalian Tianyuan Motor Co.,Ltd 666,383.31 666,383.31 100.00 uncollectable
Hejin Hongda Special Steel Co., Ltd 657,373.01 657,373.01 100.00 uncollectable
Shaanxi Hande Axle Co., Ltd. Xi'an 644,075.33 644,075.33 100.00 uncollectable
184
Wafangdian Bearing Company Limited 2021 Annual Report
Closing Balance
Proportion Reasons for
Debtors name Accounts Provision for
(%) provision
receivable bad debts
Branch
Dandong Shuguang Heavy Axle Co.,
642,833.42 642,833.42 100.00 uncollectable
Ltd
Hangzhou Advance Gearbox Group
634,135.81 634,135.81 100.00 uncollectable
Co., Ltd
Wolong Electric Huai 'an Qingjiang
598,873.78 598,873.78 100.00 uncollectable
Motor Co. Ltd
Xingtai Iron and Steel Co., Ltd 590,148.98 590,148.98 100.00 uncollectable
Qinghai Lufeng New Material Co.,
525,743.44 525,743.44 100.00 uncollectable
Ltd
Shandong Guanzhou Co., Ltd. 523,387.16 523,387.16 100.00 uncollectable
Xi 'an Zhuoshibo Hydraulic
514,938.87 514,938.87 100.00 uncollectable
Engineering Co., Ltd
Beijing Jingcheng Star Technology
505,100.00 505,100.00 100.00 uncollectable
Development Co., Ltd
Dongfeng Commercial Vehicle Co.,
486,019.87 486,019.87 100.00 uncollectable
Ltd
Gaotang Lvyin Environmental
477,691.81 477,691.81 100.00 uncollectable
Protection Technology Co. Ltd
Mudanjiang Reduction Gears
467,905.65 467,905.65 100.00 uncollectable
Factory
Factory 07-256 460,854.77 460,854.77 100.00 uncollectable
Hunan Chaoyang Mechanic &
446,627.60 446,627.60 100.00 uncollectable
Electric Co.,Ltd
Shandong Huali Motor Group
442,919.83 442,919.83 100.00 uncollectable
Suzhou Manufacturing Co., Ltd
XEMC 416,549.65 416,549.65 100.00 uncollectable
Shenji Group Kunming Machine
406,076.68 406,076.68 100.00 uncollectable
Tool Co., Ltd
Xuzhou Xugong Material Supply
374,629.55 374,629.55 100.00 uncollectable
Co., Ltd
Baoji Zhongyi Industry and Trade
374,594.68 374,594.68 100.00 uncollectable
Co. Ltd
Qingdao Shuangxing Tire Industry
371,251.58 371,251.58 100.00 uncollectable
Co. Ltd
Shandong Quanlin Group Co. Ltd 370,734.92 370,734.92 100.00 uncollectable
Yangzhou Hengrun Marine Heavy
362,006.00 362,006.00 100.00 uncollectable
Industry Co., Ltd
Nanjing Astronomical Light of the
National Astronomical Observatory 352,660.01 352,660.01 100.00 uncollectable
of the Chinese Academy of Sciences
185
Wafangdian Bearing Company Limited 2021 Annual Report
Closing Balance
Proportion Reasons for
Debtors name Accounts Provision for
(%) provision
receivable bad debts
Tai'an Tianhua Economic and Trade
346,554.01 346,554.01 100.00 uncollectable
Co., Ltd
Guanxian Hongshun Composite
343,820.00 343,820.00 100.00 uncollectable
Materials Co., Ltd
Yichang Guocheng Coating Plate
339,600.00 339,600.00 100.00 uncollectable
Co., Ltd
Pingdingshan Tianan Coal Industry
334,919.73 334,919.73 100.00 uncollectable
Co., Ltd
Langfang Shenhua Industry and
322,645.16 322,645.16 100.00 uncollectable
Trade Co., Ltd
Hengfengtai Precision Machinery
318,948.38 318,948.38 100.00 uncollectable
Co., Ltd
Shandong Tancheng Xinya Light
318,488.87 318,488.87 100.00 uncollectable
Industry Machinery Co. Ltd
Northeast Special Steel Group
315,004.72 315,004.72 100.00 uncollectable
Beiman Special Steel Co. Ltd
Taicang Hu Tai Chang ’ e Paper
310,361.32 310,361.32 100.00 uncollectable
Equipment Co. Ltd
Shaanxi Hande Axle Co., Ltd 309,157.59 309,157.59 100.00 uncollectable
Shandong Quanlin Straw Utilization
307,409.46 307,409.46 100.00 uncollectable
Co. Ltd
Harbin Hakuo Electric Power
303,005.32 303,005.32 100.00 uncollectable
Technology Co. Ltd
Hebei Jinxi Iron & Steel Group Co.
298,307.04 298,307.04 100.00 uncollectable
Ltd
Minmetals Yingkou Medium Plate
294,407.32 294,407.32 100.00 uncollectable
Co., Ltd
Zhongcai Zibo Heavy Machinery
293,817.58 293,817.58 100.00 uncollectable
Co. Ltd
Sichuan Ningjiang Shanchuan
288,157.60 288,157.60 100.00 uncollectable
Machinery Co., Ltd
Ningbo Fan Co., Ltd 287,783.07 287,783.07 100.00 uncollectable
Jiangsu Xinrui Gear System Co. Ltd 286,949.88 286,949.88 100.00 uncollectable
Erzhong Group (Deyang) Jingheng
286,935.03 286,935.03 100.00 uncollectable
Transmission Equipment Co., Ltd
Siemens Electric Motor (China) Co.,
284,110.82 284,110.82 100.00 uncollectable
Ltd
Zhibo Boshanqianjin Reduction
283,841.52 283,841.52 100.00 uncollectable
Gears Co.,Ltd o. Ltd
Taiyuan Heavy Industry Co., Ltd 275,596.93 275,596.93 100.00 uncollectable
Shandong Guanpeng Latten Co.,Ltd 273,748.84 273,748.84 100.00 uncollectable
186
Wafangdian Bearing Company Limited 2021 Annual Report
Closing Balance
Proportion Reasons for
Debtors name Accounts Provision for
(%) provision
receivable bad debts
Baotou Tianlihuanfa Mechanic &
273,597.67 273,597.67 100.00 uncollectable
Electric Co.,Ltd
Anhui Jianghuai Automobile Group
Co., Ltd. Light Commercial Vehicle 264,521.67 264,521.67 100.00 uncollectable
Branch
Hejin Huaxinyuan Iron and Steel
255,598.00 255,598.00 100.00 uncollectable
Co., Ltd
Tangshan Huahang
Electromechanical Innovation 247,147.40 247,147.40 100.00 uncollectable
Equipment Co., Ltd
Jinzhai Pengfei Steel Structure Steel
246,400.00 246,400.00 100.00 uncollectable
Frame Engineering Co., Ltd
Harbin Railway Bureau Industrial
245,268.09 245,268.09 100.00 uncollectable
Office Harbin Locomotive
Yanggu Dangyu Sheet Co., Ltd 243,280.00 243,280.00 100.00 uncollectable
Tonghua Iron & Steel Co. Ltd 240,568.39 240,568.39 100.00 uncollectable
Shijiazhuang Qiangda Slurry Pump
238,749.98 238,749.98 100.00 uncollectable
Co.,Ltd
Inner Mongolia Hongji Technology
231,610.81 231,610.81 100.00 uncollectable
New Energy Co., Ltd
Yichang jiandao trade co., Ltd 226,995.16 226,995.16 100.00 uncollectable
Taizhong Coal Machine Co.,Ltd 215,142.12 215,142.12 100.00 uncollectable
Qinhuangdao Shouqin Metal
213,911.48 213,911.48 100.00 uncollectable
Material Co. Ltd
Liaoning Renda Equipment
211,464.69 211,464.69 100.00 uncollectable
Technology Co., Ltd
Chongqing Iron Horse Industry
211,196.98 211,196.98 100.00 uncollectable
Group Co., Ltd
SAIC IVECO Hongyan Commercial
210,860.60 210,860.60 100.00 uncollectable
Vehicle Co., Ltd
Fujian Wuhang Stainless Steel
202,936.71 202,936.71 100.00 uncollectable
Products Co., Ltd
Tianjin Rongtai Advanced
200,000.00 200,000.00 100.00 uncollectable
Composite Material Co.,Ltd
Hebei Wenfeng Iron & Steel Co. Ltd 197,979.65 197,979.65 100.00 uncollectable
Zhucheng Shuguang Axle Co., Ltd 191,824.38 191,824.38 100.00 uncollectable
Jiangsu Xuzhou Forging Machine
188,906.34 188,906.34 100.00 uncollectable
Tool Factory Group Co., Ltd
Hubei Wazhou Xinsheng Technology
188,136.00 188,136.00 100.00 uncollectable
Co., Ltd
187
Wafangdian Bearing Company Limited 2021 Annual Report
Closing Balance
Proportion Reasons for
Debtors name Accounts Provision for
(%) provision
receivable bad debts
Hanbang (Jiangyin) Petrochemical
187,499.99 187,499.99 100.00 uncollectable
Co., Ltd
Inner Mongolia Jitong Railway
185,172.55 185,172.55 100.00 uncollectable
(Group) Co., Ltd
Nanjing Light Industry Machinery
185,079.54 185,079.54 100.00 uncollectable
Factory
Jiangsu Suye Heavy Machinery
184,530.46 184,530.46 100.00 uncollectable
Manufacturing Co. LTD
Xuzhou Zhongcai Equipment Heavy
170,930.05 170,930.05 100.00 uncollectable
Machinery Co. Ltd
Taiyuan Tongze Heavy Industry Co.,
170,178.79 170,178.79 100.00 uncollectable
Ltd
Shenyang Sanming Heavy Industry
164,107.39 164,107.39 100.00 uncollectable
Machinery Co., Ltd
Xuzhou Meichi Vehicle and Bridge
163,037.45 163,037.45 100.00 uncollectable
Co., Ltd
Shanghai Zhongli Machinery
161,388.95 161,388.95 100.00 uncollectable
Manufacturing Co., Ltd
Siping Blower Co., Ltd 160,053.21 160,053.21 100.00 uncollectable
Xiangdian Heavy Equipment Co.,
158,854.17 158,854.17 100.00 uncollectable
Ltd
Zhongshan Weite Motor Co., Ltd 158,593.79 158,593.79 100.00 uncollectable
Nanjing Iron and Steel Co., Ltd 156,451.09 156,451.09 100.00 uncollectable
Hubei Quanli Machinery Group Co.
152,489.82 152,489.82 100.00 uncollectable
Ltd
Anshan Iron and Steel Machinery
Development Metallurgical Electric 150,734.55 150,734.55 100.00 uncollectable
Appliance Repair Factory
Wuxi Yutong Bearing Co., Ltd 149,427.42 149,427.42 100.00 uncollectable
Wafangdian Hongda Constant
Velocity Joint Manufacturing Co., 148,466.32 148,466.32 100.00 uncollectable
Ltd
Xinxiang Risheng CNC Bearing
141,953.78 141,953.78 100.00 uncollectable
Equipment Co., Ltd
Yixing Chaoqun Machinery
138,484.00 138,484.00 100.00 uncollectable
Equipment Co., Ltd
Shandong Maiteli Heavy Machinery
137,806.10 137,806.10 100.00 uncollectable
Co., Ltd
Dalian Hongyun Transmission
135,433.03 135,433.03 100.00 uncollectable
Technology Development Co., Ltd
Anhui Anfeng Fan Co., Ltd 131,355.36 131,355.36 100.00 uncollectable
188
Wafangdian Bearing Company Limited 2021 Annual Report
Closing Balance
Proportion Reasons for
Debtors name Accounts Provision for
(%) provision
receivable bad debts
Shenyang Qunding Machinery
126,286.35 126,286.35 100.00 uncollectable
Equipment Co., Ltd
Tangshan Dunshi Machinery
124,474.60 124,474.60 100.00 uncollectable
Manufacturing Co. Ltd
Nantong Hengrong Machine Pump
123,407.18 123,407.18 100.00 uncollectable
Factory Co. Ltd
Guangxi Tianyang Huamei Paper
122,629.00 122,629.00 100.00 uncollectable
Co. Ltd
Shandong Baoding Coal Coking Co.
122,446.50 122,446.50 100.00 uncollectable
Ltd
Hubei Tongfang High-tech Pump
121,727.00 121,727.00 100.00 uncollectable
Co., Ltd
Shaoyang Textile Machinery Co.,
121,665.02 121,665.02 100.00 uncollectable
Ltd
Harbin First Machinery
121,033.33 121,033.33 100.00 uncollectable
Manufacturing Group Co., Ltd
Yangmei Xinzhou General
120,447.88 120,447.88 100.00 uncollectable
Machinery Co., Ltd
Anhui Fuma Auto Parts Group Co.,
119,386.14 119,386.14 100.00 uncollectable
Ltd
Zibo Geer Gear Co., Ltd 115,538.40 115,538.40 100.00 uncollectable
Wuxi Shangji Numerical Control
114,412.20 114,412.20 100.00 uncollectable
Co., Ltd
China Nonferrous Metals
(Shenyang) Metallurgical Machinery 114,132.29 114,132.29 100.00 uncollectable
Co., Ltd
Shanghai Yaotai Engineering
113,054.61 113,054.61 100.00 uncollectable
Technology Co., Ltd
Beijing Institute of Machinery
111,484.00 111,484.00 100.00 uncollectable
Industry Automation
Huinan Steel Rolling Co., Ltd 108,910.23 108,910.23 100.00 uncollectable
Chongqing Jiangbei Machinery Co.,
104,775.61 104,775.61 100.00 uncollectable
Ltd
Fujian Nandian Electric Co., Ltd 101,940.70 101,940.70 100.00 uncollectable
Anhui Huoshan Chenfeng Paper Co.,
96,991.53 96,991.53 100.00 uncollectable
Ltd.
Yuci Hydraulic Co., Ltd. 96,779.25 96,779.25 100.00 uncollectable
Shanghai Electric Hydraulic
96,447.99 96,447.99 100.00 uncollectable
Pneumatic Co., Ltd.
Shandong Fengyuan Tongda Electric
Power Co., Ltd. Zhongke Ecological 96,030.20 96,030.20 100.00 uncollectable
Branch
189
Wafangdian Bearing Company Limited 2021 Annual Report
Closing Balance
Proportion Reasons for
Debtors name Accounts Provision for
(%) provision
receivable bad debts
Xinjiang Bayang Nanjiang Iron and
95,744.89 95,744.89 100.00 uncollectable
Steel Baicheng Co., Ltd.
Jiangsu Gangyi Heavy Industry Co.,
94,737.65 94,737.65 100.00 uncollectable
Ltd.
Chibi Chenli Paper Co., Ltd. 92,271.31 92,271.31 100.00 uncollectable
Qingdao Iron and Steel Co., Ltd. 91,953.20 91,953.20 100.00 uncollectable
Dongfeng Heavy Industry (Shiyan)
91,729.00 91,729.00 100.00 uncollectable
Co., Ltd.
Mingwei Machinery Manufacturing
87,538.18 87,538.18 100.00 uncollectable
Co., Ltd.
Liuzhou Huagong Baichuan Rubber
86,116.00 86,116.00 100.00 uncollectable
& Plastic Technology Co., Ltd.
Shandong Fulun Iron and Steel Co.,
85,431.69 85,431.69 100.00 uncollectable
Ltd.
Alukorqin Banner Shanshui Cement
85,166.00 85,166.00 100.00 uncollectable
Co., Ltd.
Tangshan Shengtai Mining Co., Ltd. 84,389.00 84,389.00 100.00 uncollectable
Shandong Renfeng Special Materials
78,260.15 78,260.15 100.00 uncollectable
Co., Ltd.
Jiangsu Yali Explosion-proof Motor
77,349.65 77,349.65 100.00 uncollectable
Co., Ltd.
Hunan Guzhang Southern Cement
70,431.00 70,431.00 100.00 uncollectable
Co., Ltd.
Hubei Beijing Lan Cement Group
69,539.16 69,539.16 100.00 uncollectable
Co., Ltd.
Hangzhou Huahang Fan Co., Ltd. 66,411.50 66,411.50 100.00 uncollectable
Shanxi Huarong Longgong Coal
65,097.75 65,097.75 100.00 uncollectable
Industry Co., Ltd.
Hubei Shuanghuan Technology Co.,
64,603.21 64,603.21 100.00 uncollectable
Ltd.
Guangxi Nanning Huaxin Tiancheng
63,076.00 63,076.00 100.00 uncollectable
Technology Co., Ltd.
Tangshan Guofeng First Cold Rolled
62,083.25 62,083.25 100.00 uncollectable
Galvanizing Technology Co., Ltd.
Shanxi Coking Co., Ltd. 60,951.33 60,951.33 100.00 uncollectable
Changshu Dongfeng Gear Factory 58,752.00 58,752.00 100.00 uncollectable
Tianjin Dongfang Jiangtian Section
58,180.49 58,180.49 100.00 uncollectable
Steel Sales Co., Ltd.
Yantai Yucheng Machinery Co., Ltd. 55,803.20 55,803.20 100.00 uncollectable
190
Wafangdian Bearing Company Limited 2021 Annual Report
Closing Balance
Proportion Reasons for
Debtors name Accounts Provision for
(%) provision
receivable bad debts
Xiangtan Soda Industry Co., Ltd. 55,326.00 55,326.00 100.00 uncollectable
Shanxi Xishan Coal and Electricity
54,297.69 54,297.69 100.00 uncollectable
Dehui Industrial Co., Ltd.
Shandong Jinchen Machinery Co.,
53,718.31 53,718.31 100.00 uncollectable
Ltd.
Hubei Century Xinfeng Leishan
52,392.56 52,392.56 100.00 uncollectable
Cement Co., Ltd.
Haizhu Machinery Manufacturing
52,156.20 52,156.20 100.00 uncollectable
Co., Ltd.
Tongmei Local Coal Co., Ltd. 50,339.01 50,339.01 100.00 uncollectable
Panzhihua Xingmao Power
50,000.00 50,000.00 100.00 uncollectable
Equipment Installation Co., Ltd.
Guangxi Guihang Precision Casting
50,000.00 50,000.00 100.00 uncollectable
Co., Ltd.
Others 10,681,995.20 10,681,995.20 100.00 uncollectable
Total 77,309,692.95 77,309,692.95 - -
2) Accounts receivable in the portfolio as the bad debt provisions accrued under accounting
aging analysis method
Closing Balance
Aging Provision for bad Proportion
Accounts receivable
debts (%)
Within 1 year 721,301,256.90 36,065,100.09 5.00
1-2 years 132,157,815.37 13,215,781.53 10.00
2-3 years 17,808,640.63 3,561,728.11 20.00
3-4years 8,500,005.66 4,250,002.83 50.00
4-5years 7,909,723.39 6,327,778.72 80.00
Over 5 years 1,001,266.03 1,001,266.03 100.00
Total 888,678,707.98 64,421,657.30 —
(2) Category of accounts receivable listed by age
Aging Closing Balance
Within1 year 853,140,251.42
1-2 years 213,740,388.27
2-3 years 21,417,496.30
191
Wafangdian Bearing Company Limited 2021 Annual Report
Aging Closing Balance
3-4years 14,537,788.31
4-5years 12,171,325.83
Over 5 years 15,855,449.55
Total 1,130,862,699.68
192
Wafangdian Bearing Company Limited 2021 Annual Report
(3) Bad debt provision
Change during the year
Opening Closing
Category Other Collected/re
balance Accrued Written-off Balance
increase versed
Bad debt
91,832,805.98 61,442,657.02 - 1,233,607.41 10,310,505.34 141,731,350.25
provision
Total 91,832,805.98 61,442,657.02 - 1,233,607.41 10,310,505.34 141,731,350.25
(4) Accounts receivable written off in current period
Item Written-off Amount
Accounts receivable written off 11,949,253.84
Important Account receivables accrued written down situations:
Caused by
Nature of Procedure to be
Company name amount reason related
receivable performed
party
Shenyang Zhongjie
Boring and Milling Trade payment 1,742,825.06 Unable to recover Internal approval N
Machine Co., Ltd
Sichuan Southwest
Trade payment 1,241,333.17 Unable to recover Internal approval N
Stainless Steel Co., Ltd
Qiqihar Second Machine
Trade payment 551,450.03 Unable to recover Internal approval N
Tool (Group) Co., Ltd
Guangzhou Material
Supply Section of China
Trade payment 336,005.35 Unable to recover Internal approval N
Railway Guangzhou
Bureau Group Co., Ltd
Jiamusi Electric Co., Ltd Trade payment 334,739.22 Unable to recover Internal approval N
Shenyang Machine Tool
(Group) Co., Ltd.
Trade payment 313,009.17 Unable to recover Internal approval N
Precision CNC Machine
Tool Branch
Baoji Loyalty Machine
Trade payment 262,901.24 Unable to recover Internal approval N
Tool Co., Ltd
Jiangsu Dazhong Electric
Trade payment 258,003.88 Unable to recover Internal approval N
Co., Ltd
Korla Railway Material
Trade payment 256,044.10 Unable to recover Internal approval N
Supply Section
Indonesia CV.SIDO
Trade payment 243,676.52 Unable to recover Internal approval N
Company
193
Wafangdian Bearing Company Limited 2021 Annual Report
Caused by
Nature of Procedure to be
Company name amount reason related
receivable performed
party
Zhuzhou Gear Co., Ltd Trade payment 243,504.36 Unable to recover Internal approval N
Shenyang Jingxin
Trade payment 236,705.64 Unable to recover Internal approval N
Remanufacturing Co., Ltd
CRRC Shenyang Rolling
Trade payment 205,205.81 Unable to recover Internal approval N
Stock Co., Ltd
(5) The top significant accounts receivable categorized by debtors
Proportion of
Closing Provision
Debtors name Age receivable
Balance closing balance
(%)
Wafangdian Bearing Group Precision
67,072,207.34 Within 1 year 5.93 -
Rolling Element Co., Ltd
CRRC Logistics Co., Ltd 65,562,349.27 Within 1 year 5.80 2,608,002.29
ZWZ Group (USA) Bearing Co., Ltd 52,160,045.86 Within 1 year 4.61 -
Wafangdian Bearing Group Precision
34,065,432.06 Within 1 year 3.01
Transmission Bearing Co., Ltd
Guangzhou Railway Materials Co., Ltd 19,061,595.05 Within 1 year 1.69 953,079.75
Total 237,921,629.58 — 21.04 3,561,082.04
(6) Derecognized receivable due to financial asset transfer: no
(7) Transferred receivable but continuously involved financial asset, liability: no
2. Other receivables
Items Closing Balance Opening Balance
Interest receivable - -
Dividend receivable 11,843,105.36 -
Other receivable 204,962,743.49 13,357,080.42
Total 216,805,848.85 13,357,080.42
（1）Dividend receivable
Investee Closing Balance Opening Balance
Wazhou Precision of Spherical
Roller Bearings (Wafangdian)Co., 11,843,105.36 -
Ltd
Total 11,843,105.36 -
194
Wafangdian Bearing Company Limited 2021 Annual Report
（2）Other receivables
1) The categories of other receivable by nature
Nature Closing Balance Opening Balance
Loans from related parties 196,461,461.33 -
Secured fund 4,367,792.68 6,913,207.78
Deposit 143,560.00 381,780.42
Petty cash 89,371.16 120,512.99
Electricity bill 3,860,968.78 4,895,063.88
Others 7,999,889.23 7,024,289.13
Total 212,923,043.18 19,334,854.20
(2) The categories of other receivable
Closing Balance
Items Booking balance Provision
Booking balance
Amount % Amount %
Other receivables with
individual bad debt 5,592,780.22 2.63 5,592,780.22 100.00 -
provision
Other receivables
identified bad debt
provision based on the 207,330,262.96 97.37 2,367,519.47 — 204,962,743.49
characters of credit
risk portfolio
-Aging combination 6,973,053.46 3.27 2,367,519.47 34.00 4,605,533.99
-Risk-free portfolio 3,860,968.78 1.81 - - 3,860,968.78
-Related party
196,496,240.72 92.29 - - 196,496,240.72
portfolio
Total 212,923,043.18 100.00 7,960,299.69 — 204,962,743.49
195
Wafangdian Bearing Company Limited 2021 Annual Report
(Continued)
Opening Balance
Items Booking balance Provision
Booking balance
Amount % Amount %
Other receivables
with individual bad 4,173,361.85 21.58 4,173,361.85 100.00 -
debt provision
Other receivables
identified bad debt
provision based on 15,161,492.35 78.42 1,804,411.93 — 13,357,080.42
the characters of
credit risk portfolio
-Aging combination 10,261,174.02 53.07 1,804,411.93 17.58 8,456,762.09
-Risk-free portfolio 4,895,063.88 25.32 - - 4,895,063.88
-Related party
5,254.45 0.03 - - 5,254.45
portfolio
Total 19,334,854.20 100.00 5,977,773.78 — 13,357,080.42
(3) Bad debt provision of other receivable
1st stage 2nd stage 3rd stage
Expected
Provision for bad credit loss Expected credit Expected credit
Total
debt within loss within life loss within life
following 12 time(unimpaired) time(impaired)
months
Balance on January
- - 5,977,773.78 5,977,773.78
1, 2021
On January 1, 2021
Other receivable
— — — —
carrying amount on
the book
--get into 2nd stage - - - -
--get into 3rd stage - - - -
--reverse into 2nd - - - -
196
Wafangdian Bearing Company Limited 2021 Annual Report
1st stage 2nd stage 3rd stage
Expected
Provision for bad credit loss Expected credit Expected credit
Total
debt within loss within life loss within life
following 12 time(unimpaired) time(impaired)
months
stage
-reverse into 1st stage - - - -
Accrued - - 2,277,113.80 2,277,113.80
Reversed - - 211,342.89 211,342.89
Recollected - - - -
Written off - - 65,300.00 65,300.00
Others - - - -
Balance on
- - 7,960,299.69 7,960,299.69
December 31, 2021
(4) Bad debt provision based on aging
Item Closing Balance
Within 1 year 203,975,193.72
1-2 years 1,367,366.15
2-3 years 282,226.99
3-4years 1,921,689.81
4-5years 165,000.00
Over 5 years 5,211,566.51
Total 212,923,043.18
(5) Other receivable actually written off during the year: no
197
Wafangdian Bearing Company Limited 2021 Annual Report
(6) The top significant other receivable categorized by debtors
% of
Closing
Closing the
Name Category Aging Balance of
Balance total
Provision
OR
Wazhou Liaoyang Bearing Loans from Within 1
101,443,993.73 47.64 -
Construction Co.,Ltd related parties year
Dalian Wazhou Precision
Loans from Within 1
Motor Automobile 76,721,898.13 36.03 -
related parties year
Bearing Co., Ltd.
Wazhou Precision of
Spherical Roller Within 1
Loans from 18,295,569.47 8.59 -
Bearings(Wafangdian)Co., year
Ltd related parties
Liaoning Province State Within 1
Electricity bill 3,860,968.78 1.81 -
Grid year
Prepaid Over 5
Benxi Steel Plate Co., Ltd. 1,280,000.00 0.60 1,280,000.00
materials years
Total — 201,602,430.11 — 94.67 1,280,000.00
(7) Assets or liabilities arising from receivable transferred and still get involved: No.
(8) Derecognized receivable due to financial asset transfer: No.
(9) Transferred receivable but continuously involved financial asset, liability: No.
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Wafangdian Bearing Company Limited 2021 Annual Report
3. Long-term equity investments
(1) Category of long-term equity investments
Closing Balance Opening Balance
Item
Closing Balance Provision Book Value Opening Balance Provision Book Value
Investment in subsidiaries 221,583,897.67 - 221,583,897.67 211,583,897.67 211,583,897.67
Investment in JV,
- - - - -
associates
Total 211,583,897.67 - 221,583,897.67 211,583,897.67 - 211,583,897.67
(2) Investments into subsidiaries
Opening Provision in Closing Balance
Subsidiaries names Increase Decrease Closing Balance
Balance current period of provision
Wazhou Liaoyang Bearing
17,337,259.95 10,000,000.00 - 27,337,259.95 - -
Construction Co.,Ltd
Dalian Wazhou Precision Motor Car
45,478,956.37 - - 45,478,956.37 - -
Bearing Company Limited
Wazhou Precision of Spherical Roller
148,767,681.35 - - 148,767,681.35 - -
Bearings(Wafangdian)Co., Ltd
Total 211,583,897.67 10,000,000.00 - 211,583,897.67 - -
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Wafangdian Bearing Company Limited 2021 Annual Report
4. Operating revenue and cost
current year prior year
Item
Revenue Cost Revenue Cost
Revenue from main operation 2,217,787,891.73 1,885,362,197.83 1,605,507,916.97 1,214,586,296.79
Revenue from other operation 301,164,080.19 201,403,603.46 295,145,581.58 227,264,657.13
Total 2,518,951,971.92 2,086,765,801.29 1,900,653,498.55 1,441,850,953.92
(1) Principle operation - classified according to Industries
current year prior year
Industries
Sales revenue Cost of sales Sales revenue Cost of sales
Export 93,491,561.62 82,160,717.17 149,255,608.09 142,551,544.89
Domestic 2,045,973,116.05 1,729,595,941.89 1,355,487,411.91 959,847,724.11
Including:
Transportation 176,222,402.65 130,485,291.99 317,870,001.39 272,223,654.04
vehicle bearings
Special use
1,166,036,982.00 1,004,830,241.47 539,719,702.28 361,320,661.46
bearings
General use bearings 703,713,731.40 594,280,408.43 497,897,708.24 326,303,408.61
Industrial
78,323,214.06 73,605,538.77 100,764,896.97 112,187,027.79
Operations
Total 2,217,787,891.73 1,885,362,197.83 1,605,507,916.97 1,214,586,296.79
5. Investment income
Items current year prior year
Dividend income obtained during the holding period of
11,843,105.36 -
long-term equity investment
Gain on debt restructuring 990,206.88 1,121,811.33
Gain on holding of the tradable financial assets 518,821.12 3,962.74
Total 13,352,133.36 1,125,774.07
XVIII. Supplementary Information to the Financial Statements
1. Non-operating profit or loss
Items Current year Notes
Gain or loss from disposal of non-current assets 2,349,507.64 —
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Wafangdian Bearing Company Limited 2021 Annual Report
Items Current year Notes
Government grants recorded into profit or loss during current
period(except the government subsidies which are fixed or
8,117,365.44 —
quantitatively enjoyed according to the national unified standard and
it is closely related to the business)
Profit or loss from debts restructuring 1,808,922.83 —
Reversal of impairment provision of accounts receivable separately
612,813.05 —
tested for impairment
Non-operating revenue and expense apart from the above items 2,694,297.36 —
Subtotal 15,582,906.32 —
Less: effect on income tax 2,580,710.42 —
attributable to minority shareholders’ equity (after tax) - —
Total 13,002,195.90 —
2. Return on equity and earnings per share
Weighted Earnings per share
average return (EPS)
Profit of report period on net assets (%) Basic Diluted
EPS EPS
Net profit attributable to shareholders of parent
-28.93 -0.51 -0.51
company
Net profit after deducting non-recurring gains and
losses attributable to shareholders of parent -30.76 -0.54 -0.54
company
3.Differences in accounting information under IAS and domestic accounting standard
1) Differences in net profit and net asset under domestic and international accounting standards
□ Applicable Inapplicable
2)_ Differences in net profit and net asset under domestic and overseas accounting standards
□ Applicable Inapplicable
4.Others
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