Wafangdian Bearing Company Limited
The Third Quarter Report of 2010
(Report period：Jul 1, 2010－Sep 30, 2010)
Chairman（Signature）：Wang Lushun
Oct 22, 2010§1 Important notes
1.1 The board of directors, board of supervisors, directors, supervisors and the top management guarantee there is no false record, misleading statement or major omission in the report, and take responsibilities for the truth, accuracy and completeness of the contents.
1.2 The following directors were absent from the board meeting.
Name of absent director
Reason for absence
Proxy
Su Shaoli
health
Sun Najuan
Rakesh Makhija
Work
Fang Bo
1.3 The report is not audited.
1.4 The charger of company Mr. Wang Lushun, financial controller Ms. Sun Najuan and the charger of accounting department Ms. Yao Chunjuan made the statement: guarantee the truth, completeness of the financial report of the third quarter report.
§2 Basic Information of the Company
2.1 Main accounting data and financial indicators
Unit: Yuan
2010.9.30
2009.12.31
+/-（％）compared between the end of current period and last year
Total assets
2,951,742,829.99
2,933,190,560.03
0.63%
Owners’ equity (Yuan)
1,433,382,784.86
1,352,285,215.46
6.00%
Capital stock( per share)
402,600,000.00
402,600,000.00
0.00%
shareholders’ net captical per share(Yuan)
3.56
3.36
5.95%
2010.07-2010.09
+/-(%) to period
2010.01-2010.09
+/-(%) to period
Operating gross income(Yuan)
726,970,598.30
21.05%
2,300,765,807.88
34.33%
Net profits attributedShareholders(Yuan)
34,729,410.78
64.24%
97,201,569.40
27.13%
Net cash flow from operating activities
-
-
25,986,351.36
938.23%
Net cash flow from operating activities per share
-
-
0.06
938.23%
Basic gains per share
0.09
80.00%
0.24
26.32%
Diluted gains per share
0.09
80.00%
0.24
26.32%
Net assets yield (%)
2.44%
0.88%
6.98%
1.24%
Net assets yield deducting abnormal profit and loss (%)
1.66%
0.48%
6.27%
1.19%
Abnormal profit and loss items
Unit: Yuan
Abnormal profit and loss items
2010.01-2010.09
Profits and losses relating to the debt restructure
-59,205.04
1Profits and losses relating to disposal of fixed assets
90,845.28
Other operating incomes and expenses besides before-mentioned items
10,904,505.05
Total
10,936,145.29
2.2. The statement of total number of shareholders and the first 10 shareholders of current shares in the end of the report period
Unit: Share
Total number of shareholders at the end of report period
9,472
The situation of the first 10 shareholders of current shares
Name of shareholder
Shares up to the end of the period
Nature of share (A、B、H or other)
AKTIEBOLAGET SKF
79,300,000
B
Huang Junyue
3,386,300
B
Qu Chen
732,600
B
MAN,KWAI WING
713,101
B
CREDIT SUISSE (HONG KONG) LIMITED
670,338
B
Chen Zhongwu
532,700
B
Zhang Aixin
512,360
B
Yang Yufei
431,700
B
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED
333,733
B
Yang Shuitian
312,500
B
§3 Important Items
3.1 The great changes in company’s key financial statement, financial indicators, and the reasons
√Applicable □Not applicable
1. The gross operating revenue and net profit available for shareholders increased rapidly comparing with previous period, because the operating performance is good.
2. The net cash flow from operating activities and net cash flow from operating activities per share increased rapidly comparing with previous period, because the capital recollection raised comparing with previous period.
3.2 The situation of major items in progress and the analysis explanation on its effect and resolved proposal.
3.2.1 Non-standard opinions information
□ Applicable √Not applicable
3.2.2 Information on the company provides capital or external grantee that obeys the procedure to shareholders or its related parties.
2□ Applicable √Not applicable
3.2.3 Information on the daily-business important contact signing and fulfillment.
□ Applicable √Not applicable
3.2.4 Others
□ Applicable √Not applicable
3.3 The fulfillment of the items that the company, shareholder and the actual controller promise
□ Applicable √Not applicable
3.4 The warning that predicted accumulative net profits may be loss from the year-beginning to the next report period-end or change a lot compared with previous year, and the reasons
□ Applicable √Not applicable
3.5 Other major items in need of explanation
3.5.1 Security investment information
□ Applicable √Not applicable
3.5.2 The investigation, communication and interview, etc. in the current period
There are no investigation, communication and interview, etc. in the current period
3.6 Derivative products investment information
□ Applicable √Not applicable
3.6.1 Information of derivative products share-holding investment in period.
□ Applicable √Not applicable
§4. Appendix
4.1 Balance Sheet
Wa Fangdian Bearing Co.,Ltd 2010.09.30 Unit: Yuan
Sep 30, 2010
Dec 31, 2009
Item
Consolidated
Parent
Consolidated
Consolidated
Current assets：
Monetary capital
59,697,977.43
56,795,395.42
77,261,663.91
76,715,002.71
Notes receivables
49,795,637.55
49,595,637.55
117,701,535.41
117,431,535.41
Account receivables
839,871,417.29
828,118,903.25
771,097,770.88
759,943,634.29
Prepayment
23,567,337.56
20,977,108.71
9,127,147.95
7,866,246.82
Other receivables
17,663,402.13
14,635,546.92
12,723,050.76
10,124,344.55
Inventories
1,071,949,911.86
1,029,138,352.01
1,027,440,008.01
983,273,301.10
Non current assets due within 1 year
Other current assets
157,282.06
157,282.06
221,222.75
221,222.75
Subtotal current assets
2,062,702,965.88
1,999,418,225.92
2,015,572,399.67
1,955,575,287.63
Non-current assets：
Long-term receivables
Long-term equity investment
83,718,357.02
121,845,948.21
80,559,428.39
118,687,019.58
Investment on real estate
Fixed assets
587,487,378.28
576,136,089.20
639,604,148.49
626,552,835.18
Construction in progress
63,647,938.89
62,314,244.54
39,734,642.61
39,691,247.96
Projects materials
Disposal of fixed assets
3Productive biologic assets
Petrol and gas assets
Intangible assets
137,197,866.98
137,197,866.98
140,433,015.99
140,433,015.99
Exploitation expense
Reputation
Long-term prepaid expenses
1,174,949.67
1,174,949.67
1,473,551.61
1,473,551.61
Deferred income tax assets
15,813,373.27
14,765,098.64
15,813,373.27
14,765,098.64
Other non-current assets
Subtotal non-current assets
889,039,864.11
913,434,197.24
917,618,160.36
941,602,768.96
Total assets
2,951,742,829.99
2,912,852,423.16
2,933,190,560.03
2,897,178,056.59
Current liabilities：
Short-term loans
511,110,235.14
490,000,000.00
550,160,235.14
529,000,000.00
Trading financial liabilities
Notes payables
64,840,000.00
64,840,000.00
96,650,000.00
96,650,000.00
Account payables
601,384,443.17
574,778,529.18
614,127,370.45
587,102,072.55
Pre-withdrawal money
57,338,446.31
54,837,825.64
49,516,448.29
46,031,381.45
Fees and commission payables
Payroll payables
30,097,498.21
20,683,171.60
28,419,726.48
18,424,966.23
Tax payables
14,787,219.49
8,683,810.25
20,739,046.67
14,665,350.31
Interests payables
Other payables
63,689,304.33
57,695,170.78
94,836,512.24
90,832,531.19
Provision for the insurance contract
Non-current liabilities due within 1 year
20,000,000.00
20,000,000.00
20,000,000.00
20,000,000.00
Other current liabilities
42,700.00
42,700.00
Subtotal current liabilities
1,363,289,846.65
1,291,561,207.45
1,474,449,339.27
1,402,706,301.73
Non-current liabilities：
Long-term loans
138,000,000.00
138,000,000.00
98,000,000.00
98,000,000.00
Bond payables
Long-term account payables
100,000.00
100,000.00
Special account payables
201,698.98
201,698.98
201,698.98
201,698.98
Predicted liabilities
Deferred income tax liabilities
Other non-current liabilities
14,599,200.00
14,599,200.00
5,896,000.00
5,896,000.00
Subtotal non-current liabilities
152,900,898.98
152,800,898.98
104,197,698.98
104,097,698.98
Total liabilities
1,516,190,745.63
1,444,362,106.43
1,578,647,038.25
1,506,804,000.71
Owner’s equity（shareholders’ equity）：：
Paicl-up capital（capital stock ）
402,600,000.00
402,600,000.00
402,600,000.00
402,600,000.00
Capital public reserves
485,431,518.07
482,563,945.37
485,431,518.07
482,563,945.37
less：stock shares
Surplus public reserves
108,140,566.51
108,140,566.51
108,140,566.51
108,140,566.51
General provision for risk
Unallocated profits
437,210,700.28
475,185,804.85
356,113,130.88
397,069,544.00
Total owner’s equity available for parent company
1,433,382,784.86
1,468,490,316.73
1,352,285,215.46
1,390,374,055.88
Minority owner’s equity
2,169,299.50
2,258,306.32
Total owner’s equity
1,435,552,084.36
1,468,490,316.73
1,354,543,521.78
1,390,374,055.88
Total liabilities and owner’s equity
2,951,742,829.99
2,912,852,423.16
2,933,190,560.03
2,897,178,056.59
4.2 Income Statement
Wa Fangdian Bearing Co.,Ltd 2010.07.01---2010.09.30 unit: Yuan
Item
2010.09.30
2009.09.30
4Consolidated
Parent
Consolidated
Parent
1.Total operating revenue
726,970,598.30
719,039,569.89
600,551,012.23
593,511,218.08
Including: operating revenue
726,970,598.30
719,039,569.89
600,551,012.23
593,511,218.08
Interest revenue
2.Total operating cost
694,602,150.71
687,640,194.21
583,183,609.84
574,849,290.55
Including: operating cost
625,684,075.76
622,383,182.71
524,923,180.42
520,061,439.17
Interest payment
Expense of fees and commission
Operating tax and adds
1,807,683.53
1,691,784.70
2,794,760.94
2,667,263.22
Sales expense
43,098,392.05
42,571,669.21
27,103,898.99
26,769,247.34
Administrative expense
16,701,061.15
13,902,647.30
22,374,011.70
19,622,803.44
Financial expense
6,187,098.78
5,967,070.85
5,982,590.29
5,723,369.88
Loss on depreciation of assets
1,123,839.44
1,123,839.44
5,167.50
5,167.50
plus：gains on the changes of fair value （loss as “-”）
Gains on investment（loss as “-”）
3,137,468.79
3,137,468.79
3,167,409.10
3,167,409.10
Including: the gains on investment to affiliated and joint stock companies
3,137,468.79
3,137,468.79
3,167,409.10
3,167,409.10
Gains on currency exchange（loss as “-”）
3.Operating profits（loss as “-”）
35,505,916.38
34,536,844.47
20,534,811.49
21,829,336.63
plus：non-operating revenue
11,265,342.09
11,230,215.29
7,032,040.25
6,690,321.61
less：non-operating expenses
227,051.27
93,574.70
1,877,887.82
1,764,505.03
including：losses on disposal of non-current assets
72,519.09
31,207.09
7,931.38
1,264.71
4.Total assets（loss as “-”）
46,544,207.20
45,673,485.06
25,688,963.92
26,755,153.21
Less: income tax
11,862,748.33
11,862,748.33
4,592,154.91
4,592,154.91
5.Net profits（net loss as “-”）
34,681,458.87
33,810,736.73
21,096,809.01
22,162,998.30
Net profits available for parent company
34,729,410.78
33,810,736.73
21,146,122.31
22,162,998.30
Minority owner’s equity
-47,951.91
-49,313.30
6.Gains on per share
(1)basic gains on per share
0.09
0.08
0.05
0.06
(2) diluted gains on per share
0.09
0.08
0.05
0.06
7.Other comprehensive revenue
8.Comprehensive revenue amount
34,681,458.87
33,810,736.73
21,096,809.01
22,162,998.30
Comprehensive revenue amount available for owners’ of Parent company
34,729,410.78
33,810,736.73
21,146,122.31
22,162,998.30
Comprehensive revenue amount available for minority shareholders’
-47,951.91
-49,313.30
4.3 Income statement
Wa Fangdian Bearing Co.,Ltd 2010.01.01---2010.09.30 Unit: Yuan
From Jan 1 to Sep 30, 2010
From Jan 1 to Sep 30, 2009
Item
Consolidated
Parent
Consolidated
Parent
1.Total operating revenue
2,300,765,807.88
2,278,781,804.06
1,712,791,299.43
1,690,170,943.17
Including: operating revenue
2,300,765,807.88
2,278,781,804.06
1,712,791,299.43
1,690,170,943.17
Interest revenue
2.Total operating cost
2,200,162,554.49
2,182,153,763.51
1,640,630,220.55
1,612,882,075.71
Including: operating cost
2,000,655,282.85
1,993,465,118.60
1,468,398,506.78
1,450,119,303.53
Interest payment
Operating tax and adds
7,152,526.61
6,679,377.55
8,733,646.74
8,288,861.55
5Sales expense
119,893,394.90
118,507,160.62
87,903,379.31
86,813,345.48
Administrative expense
52,958,221.34
44,732,161.86
56,647,080.58
49,674,699.24
Financial expense
18,379,289.35
17,646,105.44
18,962,439.64
18,000,698.41
Loss on depreciation of assets
1,123,839.44
1,123,839.44
-14,832.50
-14,832.50
plus：gains on the changes of fair value （loss as “-”）
Gains on investment（loss as “-”）
9,950,554.30
9,950,554.30
5,710,718.83
5,710,718.83
Including: the gains on investment to affiliated and joint stock companies
9,950,554.30
9,950,554.30
5,710,718.83
5,710,718.83
Gains on currency exchange（loss as “-”）
3.Operating profits（loss as “-”）
110,553,807.69
106,578,594.85
77,871,797.71
82,999,586.29
plus：non-operating revenue
12,385,986.31
12,294,424.51
12,226,801.96
11,111,583.29
less：non-operating expenses
2,497,356.22
1,322,883.31
3,370,903.40
3,039,038.15
including：losses on disposal of non-current assets
512,742.73
471,430.73
7,931.38
1,264.71
4.Total assets（loss as “-”）
120,442,437.78
117,550,136.05
86,727,696.27
91,072,131.43
Less: income tax
23,329,875.20
23,329,875.20
10,672,754.94
10,672,754.94
5.Net profits（net loss as “-”）
97,112,562.58
94,220,260.85
76,054,941.33
80,399,376.49
Net profits available for parent company
97,201,569.40
94,220,260.85
76,459,299.16
80,399,376.49
Minority owner’s equity
-89,006.82
-404,357.83
6.Gains on per share
(1) basic gains on per share
0.24
0.23
0.19
0.20
(2) diluted gains on per share
0.24
0.23
0.19
0.20
7.Other comprehensive revenue
8.Comprehensive revenue amount
97,112,562.58
94,220,260.85
76,054,941.33
80,399,376.49
Comprehensive revenue amount available for owners’ of parent company
97,201,569.40
94,220,260.85
76,459,299.16
80,399,376.49
Comprehensive revenue amount available for minority shareholders’
-89,006.82
-404,357.83
4.4 Cash flow statement
Wa Fangdian Bearing Co.,Ltd 2010.01.01---2010.09.30 Unit: Yuan
2010.01.01-2010.09.30
2009.01.01-2009.09.30
Item
Consolidated
Parent
Consolidated
Parent
1. Cash flow from operating activities
Cash received from sales of goods or rendering services
904,171,309.20
846,474,393.06
770,334,044.64
737,614,431.25
Refunds of taxes
1,445,268.57
1,445,268.57
501,468.03
501,468.03
Cash received relating to other operating activities
7,819,721.58
7,819,466.99
6,066,961.65
6,066,926.10
Subtotal of cash inflows from operating activities
913,436,299.35
855,739,128.62
776,902,474.32
744,182,825.38
Cash paid for goods and receiving services
536,951,750.65
504,368,321.65
433,010,009.03
419,910,979.28
Cash paid for employee
175,441,428.46
162,508,650.83
156,742,718.81
147,473,519.40
Tax payments
93,637,893.56
88,192,947.36
80,773,495.63
76,170,639.72
Cash paid relating to other operating activities
81,418,875.32
76,990,020.04
103,873,313.70
100,407,035.24
Subtotal of cash outflows from operating activities
887,449,947.99
832,059,939.88
774,399,537.17
743,962,173.64
Net Cash Flow from Operating Activities
25,986,351.36
23,679,188.74
2,502,937.15
220,651.74
62. Cash Flow from Investing Activities
Cash received from disposal of investment
Cash received from investment income
360,000.00
360,000.00
Net cash received from disposal of fixed assets, intangible assets and other long-term assets
560,137.20
548,137.20
105,000.00
Cash received from disposal of subsidiary or other operating business units
Cash received relating to other investing activities
Subtotal of cash inflows
560,137.20
548,137.20
465,000.00
360,000.00
Cash paid to acquire fixed assets, intangible assets and other long-term assets
28,783,830.63
12,762,734.43
33,466,685.82
31,897,880.82
Cash paid to acquire investments
3,000,000.00
3,000,000.00
Net increase of the mortgage loans
Cash payments relating to other investing activities
254,700.00
254,700.00
Sub-total of cash outflows
32,038,530.63
16,017,434.43
33,466,685.82
31,897,880.82
Net Cash Flow from Investing Activities
-31,478,393.43
-15,469,297.23
-33,001,685.82
-31,537,880.82
3. Cash Flow from Financing Activities
Cash received by investors
Cash received from borrowings
1,011,045,000.00
994,300,000.00
440,000,000.00
440,000,000.00
Cash from issuing bond
Cash received relating to other financing activities
453,269.75
453,269.75
1,456,559.92
1,456,559.92
Subtotal of cash inflows
1,011,498,269.75
994,753,269.75
441,456,559.92
441,456,559.92
Repayments of borrowings
993,050,000.00
993,000,000.00
435,541,543.67
435,541,543.67
Cash payment for dividends, profits and the interests
30,224,254.38
29,587,108.77
26,992,900.62
26,595,599.82
Cash payment for the other financing activities
176,522.36
176,522.36
1,436,190.70
1,436,190.70
Sub-total of cash outflows
1,023,450,776.74
1,022,763,631.13
463,970,634.99
463,573,334.19
Net Cash Flow from Financing Activities
-11,952,506.99
-28,010,361.38
-22,514,075.07
-22,116,774.27
4.Effects of the exchange rate on cash and cash equivalents
-119,137.42
-119,137.42
5. Net Increase (Decrease) in Cash and Cash Equivalents
-17,563,686.48
-19,919,607.29
-53,012,823.74
-53,434,003.35
plus：the balance in the period-beginning
61,708,406.71
61,161,745.51
125,662,540.80
124,216,634.31
6. The balance of cash and cash equivalent in the period-end
44,144,720.23
41,242,138.22
72,649,717.06
70,782,630.96
The above financial statements have been approved by the board meeting held on October 22, 2010.
Director Director
4.5 Audited report
Audit opinions: not audited.
7
