Wafangdian Bearing Company Limited
The Third Quarter Report of 2011
(Report period Jul 1, 2011 Sep 30, 2011)
Chairman Signature ：Wang Lushun
Oct 21, 2011
Wafangdian Bearing Company Limited
The Q3 Report for 2011
§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 Position of absent director Reason for absence Proxy
Chen Jiajun Director Work Shao Yang
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
+/-（％）compared between
2011.9.30 2010.12.31 the end of current period
and last year
Total assets 3,511,977,731.36 3,119,127,425.10 12.59%
Owners’ equity (Yuan) 1,492,804,288.56 1,445,337,309.72 3.28%
Capital stock( per share) 402,600,000.00 402,600,000.00 0.00%
shareholders’ net captical per
3.71 3.59 3.34%
share(Yuan)
2011.07-.09 +/-(%) to period 2011.01-.09 +/-(%) to period
Operating gross income(Yuan) 761,985,289.86 4.82% 2,519,850,953.14 9.52%
Net profits attributed
10,123,919.47 -70.85% 63,570,978.84 -34.60%
Shareholders(Yuan)
Net cash flow from operating activities - - 123,496,111.38 375.23%
Net cash flow from operating activities
- - 0.31 375.23%
per share
Basic gains per share 0.03 -66.67% 0.16 -33.33%
Diluted gains per share 0.03 -66.67% 0.16 -33.33%
Net assets yield (%) 0.69% -1.75% 4.33% -2.65%
Net assets yield deducting abnormal
0.51% -1.15% 3.84% -2.43%
profit and loss (%)
Abnormal profit and loss items
√Applicable □Not applicable
1
Unit: Yuan
Abnormal profit and loss items 2011.01-2011.09 annotations
Profits and losses relating to disposal of fixed assets 7,026,537.63
Profits and losses relating to the debt restructure 342,225.97
The profit and loss which caused by the items that unconcerned
-147,699.09
with normal business.
Total 7,221,064.51
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
8,927
report period
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
GAOLINGFUND,LP 7,325,355 B
Huang Junyue 3,668,000 B
KGI ASIA LIMITED 753,710 B
Ma Yuancheng 742,325 B
MAN,KWAI WING 713,101 B
Commercial Securities HongKong Branch 596,753 B
Chen Zhongwu 532,800 B
Hei Youxin 512,559 B
YangYufei 466,030 B
§3 Important Items
3.1 The great changes in company’s key financial statement, financial indicators, and the reasons
√Applicable □Not applicable
1. Monetary funds has increased by 74% compared with the beginning of this year, mainly because of strengthening the
management of sales settlement mode for big customs and selling company. In principle, the company receives currency
only, for who receives according to bank acceptance will be charged of 6% discount. For key and strategic customers
increased the total ratio. Meanwhile, external payment is strictly carried out as per accounting period.
2. Notes receivable has increased by 183%compared with the beginning of this year, mainly because of enhancing the
efficiency of sales payment. Meanwhile, external payment is carried out as per accounting period.
3.Other receivables reduced by 30% compared with the beginning of this year, mainly because of the cost of domestic sales
activities etc. lined with amount of 2.05 million Yuan, avoid freight and income tax not touch buckle reduced with amount of
2.68 million Yuan.
4.The long-term equity investment has increased by 39% compared with the beginning of this year , the reason is increasing
the investment of Da Lian precision motor cars bearing company this period .
2
5 .Construction in progress has increased by 148% compared with the beginning of this year, increased investment with amount
of 105.06 million Yuan on the five projects on form a complete set for the truck bearings. Increased the investment with
amount of 17.81 million Yuan on large reconstruction project, and 20.75 million Yuan on heat treatment production line
project..
6. Notes payable increased by 66% compared with the beginning of this year, mainly because of pay to the supplier by the way
of accepted draft.
7 .Accounts payable has increased by 30% compared with the beginning of this year, mostly control the payment to the supplier
strictly according to the settlement period and take material public bidding mode.
8. Non-operating income has reduced by 40.20% compared with previous period, mainly due to receiving the welfare costs
1,111 thousand Yuan turned back by ZWZ in the same period last year , while in this year WBC not received any government
subsidies and funding, just received the benefit from dealing with fix assets.
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.
□ 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
The promising items of list company’s directors, supervisors, the top management , the shareholders with
more than 5% shares and the actual controller etc. during the report period, or before it. .
□ 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
3.6.1 Information of derivative products share-holding investment in period.
□ Applicable √Not applicable
§4 Appendix
4.1 Balance sheet
Prepared by Wafangdian Bearing Company Limited Sep. 30st, 2011 Unit: RMB
Balance at period-end Balance at year-begin
Items
Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 78,936,599.82 76,869,817.05 52,507,009.69 44,206,831.34
Settlement provisions
Capital lent
Transaction finance asset
Notes receivable 140,015,721.15 133,525,061.15 48,119,537.52 47,226,537.52
Accounts receivable 946,636,894.87 956,362,005.41 856,207,264.50 846,898,630.11
Accounts paid in advance 34,368,107.61 29,927,654.77 47,849,548.92 35,148,332.06
Insurance receivable
Reinsurance receivable
Contract reserve of
reinsurance receivable
Interest receivable
Dividend receivable
Other receivables 16,178,741.06 10,525,647.10 17,572,715.37 15,023,534.07
Purchase restituted finance
asset
Inventories 1,233,901,557.37 1,155,485,486.39 1,160,554,511.93 1,123,540,714.88
Non-current asset due within
one year
Other current assets 298,109.97 298,109.97 238,439.89 238,439.89
Total current assets 2,450,335,731.85 2,362,993,781.84 2,183,049,027.82 2,112,283,019.87
Non-current assets:
Granted loans and advances
Finance asset available for
sales
Held-to-maturity investment
Long-term account receivable
Long-term equity investment 98,404,794.09 153,262,111.40 90,196,224.04 110,053,541.35
Investment real estate
Fixed assets 565,511,325.36 477,295,400.67 591,960,635.98 572,245,505.81
Construction in progress 247,738,020.48 229,210,717.50 100,665,047.38 92,344,979.56
Engineering material
4
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 133,051,882.72 133,051,882.72 136,135,471.67 136,135,471.67
Expense on Research and
Development
Goodwill
Long-term expenses to be
925,269.57 925,269.57 1,110,310.92 1,110,310.92
apportioned
Deferred income tax asset 16,010,707.29 16,010,707.29 16,010,707.29 16,010,707.29
Other non-current asset
Total non-current asset 1,061,641,999.51 1,009,756,089.15 936,078,397.28 927,900,516.60
Total assets 3,511,977,731.36 3,372,749,870.99 3,119,127,425.10 3,040,183,536.47
Current liabilities:
Short-term loans 523,590,235.14 510,000,000.00 503,780,235.14 490,000,000.00
Loan from central bank
Absorbing deposit and
interbank deposit
Capital borrowed
Transaction financial liabilities
Notes payable 232,983,992.15 232,983,992.15 140,290,000.00 140,290,000.00
Accounts payable 955,824,477.38 860,794,276.02 698,418,246.19 660,043,446.89
Accounts received in advance 32,354,432.55 31,348,263.41 45,759,336.61 43,296,551.60
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 29,416,132.00 20,242,102.64 27,467,879.22 18,225,087.48
Taxes payable 9,241,208.63 3,298,422.92 5,413,791.70 2,568,380.40
Interest payable
Dividend payable
Other accounts payable 84,932,265.97 53,419,284.45 89,179,927.54 62,254,424.75
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Non-current liabilities due
20,000,000.00 20,000,000.00
within one year
Other current liabilities
Total current liabilities 1,868,342,743.82 1,712,086,341.59 1,530,309,416.40 1,436,677,891.12
Non-current liabilities:
Long-term loans 138,000,000.00 138,000,000.00 138,000,000.00 138,000,000.00
Bonds payable
Long-term account payable 100,000.00 100,000.00
Special account payable 7,571,698.98 7,571,698.98 221,698.98 221,698.98
Projected liabilities
5
Deferred income tax liabilities
Other non-current liabilities 5,159,000.00 5,159,000.00 5,159,000.00 5,159,000.00
Total non-current liabilities 150,830,698.98 150,730,698.98 143,480,698.98 143,380,698.98
Total liabilities 2,019,173,442.80 1,862,817,040.57 1,673,790,115.38 1,580,058,590.10
Owner’s equity (or shareholders’
equity):
Paid-in capital (or share
402,600,000.00 402,600,000.00 402,600,000.00 402,600,000.00
capital)
Capital public reserve 485,691,050.47 482,563,945.37 485,691,050.47 482,563,945.37
Less: Inventory shares
Reasonable reserve
Surplus public reserve 116,726,055.56 116,726,055.56 116,726,055.56 116,726,055.56
Provision of general risk
Retained profit 487,787,182.53 508,042,829.49 440,320,203.69 458,234,945.44
Balance difference of foreign
currency translation
Total owner’s equity attributable
1,492,804,288.56 1,509,932,830.42 1,445,337,309.72 1,460,124,946.37
to parent company
Minority interests
Total owner’s equity 1,492,804,288.56 1,509,932,830.42 1,445,337,309.72 1,460,124,946.37
Total liabilities and owner’s
3,511,977,731.36 3,372,749,870.99 3,119,127,425.10 3,040,183,536.47
equity
4.2 Profit statement of report period
Prepared by Wafangdian Bearing Company Limited Jul-Sep, 2011 Uint: RMB
Amount in this period Amount in last period
Items
Consolidation Parent Company Consolidation Parent Company
Ⅰ. Total operating income 761,985,289.86 760,578,175.46 726,970,598.30 719,039,569.89
Including: operating income 761,985,289.86 760,578,175.46 726,970,598.30 719,039,569.89
Interest income
Insurance gained
Commission charge and
commission income
Ⅱ. Total operating cost 756,401,473.03 752,284,905.30 694,602,150.71 687,640,194.21
Including: operating cost 686,066,185.46 685,730,910.88 625,684,075.76 622,383,182.71
Interest expense
Commission charge and
commissioin expense
Cash surrender value
Net amount of expense of
compensation
Net amount of withdrawal of
insurance contract reserve
Bonus expense of guarantee
slip
Reinsurance expenses
Operating tax and extras 2,039,667.11 1,978,024.45 1,807,683.53 1,691,784.70
Sales expenses 44,507,146.70 44,100,633.24 43,098,392.05 42,571,669.21
6
Administration expenses 17,349,865.87 14,096,375.53 16,701,061.15 13,902,647.30
Financial expenses 6,118,649.12 6,059,002.43 6,187,098.78 5,967,070.85
Losses of devaluation of asset 319,958.77 319,958.77 1,123,839.44 1,123,839.44
Add: Changing income of fair
value (Loss is listed with “-”)
Investment income (Loss is
1,906,035.55 1,906,035.55 3,137,468.79 3,137,468.79
listed with “-”)
Including: Investment income on
affiliated company and joint 1,906,035.55 1,906,035.55 3,137,468.79 3,137,468.79
venture
Exchange income (Loss is listed
with “-”)
Ⅲ . Operating profit (Loss is
7,489,852.38 10,199,305.71 35,505,916.38 34,536,844.47
listed with “-”)
Add: Non-operating income 3,459,084.76 3,444,908.41 11,265,342.09 11,230,215.29
Less: Non-operating expense 825,017.67 681,489.33 227,051.27 93,574.70
Including: Disposal loss of
150,927.83 84,046.49 72,519.09 31,207.09
non-current asset
Ⅳ . Total profit (Loss is listed
10,123,919.47 12,962,724.79 46,544,207.20 45,673,485.06
with “-”)
Less: Income tax expense 132,437.04 11,862,748.33 11,862,748.33
Ⅴ . Net profit (Net loss is listed
10,123,919.47 12,830,287.75 34,681,458.87 33,810,736.73
with “-”)
Net profit attributable to owners
10,123,919.47 12,830,287.75 34,729,410.78 33,810,736.73
of parent company
Minority shareholders’ gains and
-47,951.91
losses
Ⅵ. Earnings per share
ⅰ. Basic earnings per share 0.03 0.03 0.09 0.08
ⅱ. Diluted earnings per share 0.03 0.03 0.09 0.08
Ⅶ. Other consolidated income
Ⅷ. Total consolidated income 10,123,919.47 12,830,287.75 34,681,458.87 33,810,736.73
Total consolidated income
attributable to owners of parent 10,123,919.47 12,830,287.75 34,729,410.78 33,810,736.73
company
Total consolidated income
attributable to minority -47,951.91
shareholders
The net profit of the business combinations under the same administration in this period before combination is RMB 0.00
4.3 Profit statement from year-begin to the end of report period
Prepared by Wafangdian Bearing Company Limited Jan-Sep, 2011 Uint: RMB
Amount in this period Amount in last period
Items
Consolidation Parent Company Consolidation Parent Company
Ⅰ. Total operating income 2,519,850,953.14 2,510,168,808.35 2,300,765,807.88 2,278,781,804.06
Including: operating income 2,519,850,953.14 2,510,168,808.35 2,300,765,807.88 2,278,781,804.06
Interest income
Insurance gained
Commission charge and
commission income
Ⅱ. Total operating cost 2,461,195,469.99 2,448,161,688.23 2,200,162,554.49 2,182,153,763.51
Including: operating cost 2,235,845,354.64 2,234,233,949.00 2,000,655,282.85 1,993,465,118.60
Interest expense
7
Commission charge and
commission expense
Cash surrender value
Net amount of expense of
compensation
Net amount of withdrawal of
insurance contract reserve
Bonus expense of guarantee
slip
Reinsurance expenses
Operating tax and extras 8,657,906.19 8,339,317.66 7,152,526.61 6,679,377.55
Sales expenses 148,546,000.76 147,044,759.20 119,893,394.90 118,507,160.62
Administration expenses 49,163,008.17 39,875,492.29 52,958,221.34 44,732,161.86
Financial expenses 18,456,591.52 18,141,561.37 18,379,289.35 17,646,105.44
Losses of devaluation of asset 526,608.71 526,608.71 1,123,839.44 1,123,839.44
Add: Changing income of fair
value (Loss is listed with “-”)
Investment income (Loss is
8,208,570.05 8,208,570.05 9,950,554.30 9,950,554.30
listed with “-”)
Including: Investment income on
affiliated company and joint 8,208,570.05 8,208,570.05 9,950,554.30 9,950,554.30
venture
Exchange income (Loss is listed
with “-”)
Ⅲ . Operating profit (Loss is
66,864,053.20 70,215,690.17 110,553,807.69 106,578,594.85
listed with “-”)
Add: Non-operating income 9,061,210.88 7,347,646.81 12,385,986.31 12,294,424.51
Less: Non-operating expense 1,840,146.37 1,137,314.06 2,497,356.22 1,322,883.31
Including: Disposal loss of
184,341.75 117,460.41 512,742.73 471,430.73
non-current asset
Ⅳ . Total profit (Loss is listed
74,085,117.71 76,426,022.92 120,442,437.78 117,550,136.05
with “-”)
Less: Income tax expense 10,514,138.87 10,514,138.87 23,329,875.20 23,329,875.20
Ⅴ . Net profit (Net loss is listed
63,570,978.84 65,911,884.05 97,112,562.58 94,220,260.85
with “-”)
Net profit attributable to owners
63,570,978.84 65,911,884.05 97,201,569.40 94,220,260.85
of parent company
Minority shareholders’ gains and
-89,006.82
losses
Ⅵ. Earnings per share
ⅰ. Basic earnings per share 0.16 0.16 0.24 0.23
ⅱ. Diluted earnings per share 0.16 0.16 0.24 0.23
Ⅶ. Other consolidated income
Ⅷ. Total consolidated income 63,570,978.84 65,911,884.05 97,112,562.58 94,220,260.85
Total consolidated income
attributable to owners of parent 63,570,978.84 65,911,884.05 97,201,569.40 94,220,260.85
company
Total consolidated income
attributable to minority -89,006.82
shareholders
The net profit of the business combinations under the same administration from year-begin to the end of report period before combination is RMB
0.00.
8
4.4Cash flow statement from year-begin to the end of report period
Prepared by Wafangdian Bearing Company Limited Jan-Sep, 2011 Uint: RMB
Amount in this period Amount in last period
Items
Consolidation Parent Company Consolidation Parent Company
Ⅰ . Cash flows arising from
operating activities
Cash received from selling
commodities and providing labor 1,331,366,349.25 1,356,918,705.88 904,171,309.20 846,474,393.06
services
Net increase of customer
deposit and interbank deposit
Net increase of loan from central
bank
Net increase of capital borrowed
from other financial institution
Cash received from original
insurance contract fee
Net cash received from
reinsurance business
Net increase of insured savings
and investment
Net increase of disposal of
transaction financial asset
Cash received from interest,
commission charge and
commission
Net increase of capital borrowed
Net increase of returned
business capital
Write-back of tax received 1,445,268.57 1,445,268.57
Other cash received concerning
43,730,523.35 36,328,980.68 7,819,721.58 7,819,466.99
operating activities
Subtotal of cash inflow arising
1,375,096,872.60 1,393,247,686.56 913,436,299.35 855,739,128.62
from operating activities
Cash paid for purchasing
commodities and receiving labor 837,299,220.55 905,675,280.53 536,951,750.65 504,368,321.65
service
Net increase of customer loans
and advances
Net increase of deposits in
central bank and interbank
Cash paid for original
insurance contract
compensation
Cash paid for interest,
commission charge and
commission
Cash paid for bonus of
guarantee slip
Cash paid to/for staff and
201,856,276.12 171,034,377.20 175,441,428.46 162,508,650.83
workers
Taxes paid 74,289,620.58 69,847,184.86 93,637,893.56 88,192,947.36
Other cash paid concerning
138,155,643.97 126,878,878.74 81,418,875.32 76,990,020.04
operating activities
Subtotal of cash outflow arising
1,251,600,761.22 1,273,435,721.33 887,449,947.99 832,059,939.88
from operating activities
9
Net cash flows arising from
123,496,111.38 119,811,965.23 25,986,351.36 23,679,188.74
operating activities
Ⅱ. Cash flows arising from
investing activities:
Cash received from recovering
investment
Cash received from investment
income
Net cash received from disposal
of fixed, intangible and other 644,086.53 644,086.53 560,137.20 548,137.20
long-term assets
Net cash received from disposal
of subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash flow from
644,086.53 644,086.53 560,137.20 548,137.20
investing activities
Cash paid for purchasing fixed,
intangible and other long-term 71,575,895.86 57,112,868.03 28,783,830.63 12,762,734.43
assets
Cash paid for investment 3,000,000.00 3,000,000.00
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units
Other cash paid concerning
254,700.00 254,700.00
investing activities
Subtotal of cash outflow from
71,575,895.86 57,112,868.03 32,038,530.63 16,017,434.43
investing activities
Net cash flows arising from
-70,931,809.33 -56,468,781.50 -31,478,393.43 -15,469,297.23
investing activities
Ⅲ.Cash flows arising from
financing activities
Cash received from absorbing
investment
Including: cash received from
absorbing minority shareholders’
investment by subsidiaries
Cash received from loans 619,070,000.00 614,000,000.00 1,011,045,000.00 994,300,000.00
Cash received from issuing
bonds
Other cash received concerning
453,269.75 453,269.75
financing activities
Subtotal of cash inflow from
619,070,000.00 614,000,000.00 1,011,498,269.75 994,753,269.75
financing activities
Cash paid for settling debts 614,190,000.00 614,000,000.00 993,050,000.00 993,000,000.00
Cash paid for dividend and profit
29,763,755.29 29,429,241.39 30,224,254.38 29,587,108.77
distributing or invest paying
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
176,522.36 176,522.36
financing activities
Subtotal of cash outflow from
643,953,755.29 643,429,241.39 1,023,450,776.74 1,022,763,631.13
financing activities
Net cash flows arising from
-24,883,755.29 -29,429,241.39 -11,952,506.99 -28,010,361.38
financing activities
Ⅳ. Influence on cash and cash -800,956.63 -800,956.63 -119,137.42 -119,137.42
10
equivalents due to fluctuation in
exchange rate
Ⅴ . Net increase of cash and
26,879,590.13 33,112,985.71 -17,563,686.48 -19,919,607.29
cash equivalents
Add: Balance of cash and cash
52,057,009.69 43,756,831.34 61,708,406.71 61,161,745.51
equivalents at the period-begin
Ⅵ . Balance of cash and cash
78,936,599.82 76,869,817.05 44,144,720.23 41,242,138.22
equivalents at the period-end
The above financial statements have been approved by the board meeting held on October 21, 2011.
4.5 Audited report
Audit opinions: not audited.
11
