Wafangdian Bearing Company Limited
The Q3 Report for 2012
§1 Important notes
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.
The following directors were absent from the board meeting.
Name of absent director Position of absent director Reason for absence Proxy
Rakesh Makhija Director Busy work Fang Bo
Cong Hong Director Busy work Sun Najuan
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
2012.9.30 2011.12.31 the end of current period
and last year
Total assets 3,546,071,798.87 3,533,795,515.58 0.35%
Owners’ equity (Yuan) 1,514,496,504.31 1,489,759,638.87 1.66%
Capital stock( per share) 402,600,000.00 402,600,000.00 0%
shareholders’ net captical per
3.76 3.7 1.66%
share(Yuan)
2012.07-.09 +/-(%) to period 2012.01-.09 +/-(%) to period
Operating gross income(Yuan) 736,059,076.03 -3.4% 2,353,805,771.06 -6.59%
Net profits attributed
10,463,585.10 4.73% 40,840,865.44 -35.76%
Shareholders(Yuan)
Net cash flow from operating activities -- -- 137,444,156.65 11.29%
Net cash flow from operating activities
-- -- 0.34 11.29%
per share
Basic gains per share 0.03 50 0.1 -37.5%
Diluted gains per share 0.03 50 0.1 -37.5%
Net assets yield (%) 0.68% 0.01% 2.72% -37.18%
Net assets yield deducting abnormal
0.17% -0.32% 2.09% -1.75%
profit and loss (%)
Abnormal profit and loss items
√Applicable □Not applicable
Unit: Yuan
Abnormal profit and loss items 2012.01-2012.09 annotations
Profits and losses relating to disposal of fixed assets 1,472,915.77 disposal of fixed assets
The allowance of track bea
Government grants recorded into profit or loss during current
2,580,926.90 ring and Dalian subsidiary
period
move
Profits and losses relating to the debt restructure 4,891,936.02 debt restructure
The profit and loss which caused by the items that unconcerned
470,395.12
with normal business.
Total 9,416,173.81
The explanation for the item of the profit and loss which caused by the items that unconcerned with normal business.
items Amount Explanation
writing-off of watercourse writing-off of watercourse expense of 2012 in Liaoyang Bearing
expense
468,127.73 Manufacture Com,.Ltd.
The fine of transportation ,production and note
Fine 2267.39
transformation in daily operation
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
8,652
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
GAOLING FUND,L.P. 7,325,355 B
Huang Junyue 3,600,000 B
Ma Yuancheng 742,325 B
MAN,KWAI WING 文贵荣 713,101 B
Chen Zhongwu 537,500 B
Hei Youxin 512,559 B
Yang Yufei 470,090 B
Merchant securities Hong Kong Company 445,038 B
Jiang Guangtao 415,770 B
§3 Important Items
3.1 The great changes in company’s key financial statement, financial indicators, and the reasons
√Applicable □Not applicable
1
（1）Other receivables increased with amount of 3.6 million Yuan by 36% compared with the beginning of this year, mainly
because of the insurance in North China sales company increased with amount of 200 thousand Yuan, the meeting fee of
metallurgy sales company in southwest, mid-south increased 1.27 millionYuan, exhibition fee increased 820 thousand
Yuan; the receivables in internal company increased with 980 thousand Yuan, of which include mil-leaders’ repaid annual
salary with 710 thousand Yuan, and meeting fee in North China sales company with 200 thousand Yuan.
（2）Accounts paid in advance reduced with 16.17 million Yuan by 38%,mainly because checked the steels in time, and
accounts paid in advance in five suppliers reduced over 1 million Yuan, and the total amount is 15.63 million Yuan, of which
Jiangyin Xingcheng with amount of 5.8 million Yuan,Shijiazhuang Steel with amount of 3.71million Yuan, Benxi Steel
company reduced with 3.12million Yuan,Luoyang Zhongzhu 1.8 million Yuan,Daye Tegang with 1.19 million Yuan.
（3 Other current assets descend by 43%,mainly because the tax rate changed in 2011,which caused the prepaid
business income tax increased and was calculated into other current assets, after accounted income tax in Q1-Q3, the
other current assets descend.
（4）Notes payable increased by 88% compared with the beginning of this year, mainly because of pay to the supplier by
the way of accepted draft.
（5） Wage payable decreased by 47%, mainly because the balance salary declined 6.45 million Yuan,(of which 3.34
million Yuan without given out but had been calculated in 2008 and 2009, the salary of 2011 with amount of 3.11 million
Yuan given out ) the balance funds in trade union descend 1.64 million Yuan, and the education fee descend with amount
of 500 thousand Yuan.
（6）Non-current liabilities due within one year declined by 1400%, for the long term loans with amount of 138 million Yuan
has changed into short term loans.
（7）Investment income has decreased by 43.73%,mainly because of the net profit in SKF Wazhou declined compared
with previous period.
（8）Non-operating income has increased by 41.9% compared with previous period, mainly due to receiving the costs from
debt recombination with 6.46 million, in this year WBC received government subsidies and funding with 2.58 Yuan more
than that in last period, while the benefit from dealing with fix assets declined with 5.03 million yaun.
(9) Non-operating expense increased by 118.42%,mainly because the lost from debt recombination increased with 2.25
million Yuan.
（10）Income tax expense descend by 70.6%,mainly because the total profit in the report period declined 18.86 million Yuan,
and the income tax ratio declined from 25% to 15%.(the ration in last period is 25%)
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 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
2
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
Prepared by Wafangdian Bearing Company Limited Sep. 30st, 2012 Unit: RMB
Balance at period-end Balance at year-begin
Items
Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 93,039,424.45 90,403,452.24 102,268,754.34 99,822,886.26
Settlement provisions
Capital lent
Transaction finance asset
Notes receivable 140,322,351.44 137,629,851.44 134,514,385.38 133,080,700.75
Accounts receivable 1,079,201,591.86 1,087,639,797.60 948,225,066.12 986,005,682.37
Accounts paid in advance 27,376,419.82 26,556,898.96 52,716,821.34 42,733,044.64
Insurance receivable
Reinsurance receivable
Contract reserve of
reinsurance receivable
Interest receivable
Dividend receivable
Other receivables 18,330,673.63 13,617,642.54 15,528,274.87 10,024,049.56
Purchase restituted finance
asset
Inventories 1,096,503,274.57 10,024,049.56 1,196,538,970.43 1,113,765,356.87
Non-current asset due within
one year
Other current assets 3,270,939.91 3,270,939.91 5,729,224.48 5,729,224.48
Total current assets 2,458,044,675.68 2,380,013,862.58 2,455,521,496.96 2,391,160,944.93
Non-current assets:
3
Granted loans and advances
Finance asset available for
sales
Held-to-maturity investment
Long-term account receivable
Long-term equity investment 96,708,820.69 153,903,622.26 92,489,891.01 149,684,692.58
Investment real estate
Fixed assets 568,495,786.16 453,362,633.48 581,464,704.26 462,781,080.04
Construction in progress 283,121,404.32 283,121,404.32 261,981,026.05 261,978,608.05
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 129,401,988.08 128,761,988.08 131,979,409.06 131,979,409.06
Expense on Research and
Development
Goodwill
Long-term expenses to be
809,640.70 809,640.70 869,505.00 869,505.00
apportioned
Deferred income tax asset 9,489,483.24 9,489,483.24 9,489,483.24 9,489,483.24
Other non-current asset
Total non-current asset 1,088,027,123.19 1,029,448,772.08 1,078,274,018.62 1,016,782,777.97
Total assets 3,546,071,798.87 3,409,462,634.66 3,533,795,515.58 3,407,943,722.90
Current liabilities:
Short-term loans 660,590,235.14 647,000,000.00 523,590,235.14 510,000,000.00
Loan from central bank
Absorbing deposit and
interbank deposit
Capital borrowed
Transaction financial liabilities
Notes payable 176,937,063.25 176,937,063.25 94,100,000.00 94,100,000.00
Accounts payable 950,945,373.59 840,239,894.36 1,039,300,493.29 955,695,514.30
Accounts received in
41,248,892.94 40,027,624.96 50,407,895.65 49,634,480.69
advance
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 19,792,445.93 10,872,313.26 29,508,584.94 20,368,041.18
Taxes payable 6,901,235.68 3,058,320.27 1,923,642.12 4,172,462.78
Interest payable
Dividend payable
Other accounts payable 126,778,631.04 88,444,217.75 116,242,681.68 68,874,443.35
Reinsurance payables
Insurance contract reserve
Security trading of agency
4
Security sales of agency
Non-current liabilities due
138,000,000.00 138,000,000.00
within one year
Other current liabilities
Total current liabilities 1,983,193,877.57 1,806,579,433.85 1,993,073,532.82 1,840,844,942.30
Non-current liabilities:
Long-term loans
Bonds payable
Long-term account payable 100,000.00 100,000.00
Special account payable 221,698.98 221,698.98 221,698.98 221,698.98
Projected liabilities
Deferred income tax liabilities 246,635.79 246,635.79
Other non-current liabilities 47,813,082.22 47,813,082.22 50,394,009.12 50,394,009.12
Total non-current liabilities 48,381,416.99 48,034,781.20 50,962,343.89 50,615,708.10
Total liabilities 2,031,575,294.56 1,854,614,215.05 2,044,035,876.71 1,891,460,650.40
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 123,972,268.17 123,972,268.17 123,972,268.17 123,972,268.17
Provision of general risk
Retained profit 502,233,185.67 545,712,206.07 477,496,320.23 507,346,858.96
Balance difference of foreign
currency translation
Total owner’s equity attributable
1,514,496,504.31 1,554,848,419.61 1,489,759,638.87 1,516,483,072.50
to parent company
Minority interests
Total owner’s equity 1,514,496,504.31 1,554,848,419.61 1,489,759,638.87 1,516,483,072.50
Total liabilities and owner’s
3,546,071,798.87 3,409,462,634.66 3,533,795,515.58 3,407,943,722.90
equity
4.2 Profit statement of report period
Prepared by Wafangdian Bearing Company Limited Jul-Sep, 2012 Uint: RMB
Amount in this period Amount in last period
Items
Consolidation Parent Company Consolidation Parent Company
Ⅰ. Total operating income 736,059,076.03 734,975,678.76 761,985,289.86 760,578,175.46
Including: operating income
Interest income
Insurance gained
Commission charge and
commission income
Ⅱ. Total operating cost 735,053,145.61 727,801,971.20 756,401,473.03 752,284,905.30
5
Including: operating cost 654,846,947.16 652,456,742.72 686,066,185.46 685,730,910.88
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 3,586,103.05 3,318,523.83 2,039,667.11 1,978,024.45
Sales expenses 51,998,795.65 51,673,407.56 44,507,146.70 44,100,633.24
Administration expenses 18,892,901.58 14,543,409.65 17,349,865.87 14,096,375.53
Financial expenses 5,728,398.17 5,809,887.44 6,118,649.12 6,059,002.43
Losses of devaluation of asset = 319,958.77 319,958.77
Add: Changing income of fair
=
value (Loss is listed with “-”)
Investment income (Loss is 1,644,782.07
1,644,782.07 1,906,035.55 1,906,035.55
listed with “-”)
Including: Investment income on
affiliated company and joint 1,644,782.07 1,644,782.07 1,906,035.55 1,906,035.55
venture
Exchange income (Loss is listed
with “-”)
Ⅲ . Operating profit (Loss is
2,650,712.49 8,818,489.63 7,489,852.38 10,199,305.71
listed with “-”)
Add: Non-operating income 8,102,103.78 6,950,192.41 3,459,084.76 3,444,908.41
Less: Non-operating expense 247,113.82 738,504.06 825,017.67 681,489.33
Including: Disposal loss of
33,783.00 33,783.00 150,927.83 84,046.49
non-current asset
Ⅳ. Total profit (Loss is listed
10,505,702.45 15,030,177.98 10,123,919.47 12,962,724.79
with “-”)
Less: Income tax expense 42,117.35 42,117.35 132,437.04 132,437.04
Ⅴ. Net profit (Net loss is listed
10,463,585.10 14,988,060.63 9,991,482.43 12,830,287.75
with “-”)
Net profit attributable to owners 14,988,060.63
10,463,585.10 9,991,482.43 12,830,287.75
of parent company
Minority shareholders’ gains and
losses
Ⅵ. Earnings per share
ⅰ. Basic earnings per share 0.03 0.04 0.02 0.03
ⅱ. Diluted earnings per share 0.03 0.04 0.02 0.03
Ⅶ. Other consolidated income
Ⅷ. Total consolidated income 10,463,585.10 14,988,060.63 9,991,482.43 12,830,287.75
Total consolidated income
attributable to owners of parent 10,463,585.10 14,988,060.63 9,991,482.43 12,830,287.75
company
Total consolidated income
attributable to minority
shareholders
The net profit of the business combinations under the same administration in this period before combination is RMB 0.00
6
4.3 Profit statement from year-begin to the end of report period
Prepared by Wafangdian Bearing Company Limited Jan-Sep, 2012 Uint: RMB
Amount in this period Amount in last period
Items
Consolidation Parent Company Consolidation Parent Company
Ⅰ. Total operating income 2,353,805,771.06 2,345,509,885.60 2,519,850,953.14 2,510,168,808.35
Including: operating income
Interest income
Insurance gained
Commission charge and
commission income
Ⅱ. Total operating cost 2,323,909,244.56 2,300,516,100.99 2,461,195,469.99 2,448,161,688.23
Including: operating cost 2,088,307,327.87 2,078,816,626.70 2,235,845,354.64 2,234,233,949.00
Interest expense
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 9,971,807.94 9,537,505.59 8,657,906.19 8,339,317.66
Sales expenses 156,772,932.28 155,741,486.75 148,546,000.76 147,044,759.20
Administration expenses 49,018,442.17 36,813,096.21 49,163,008.17 39,875,492.29
Financial expenses 19,543,647.13 19,312,298.57 18,456,591.52 18,141,561.37
Losses of devaluation of asset 295,087.17 295,087.17 526,608.71 526,608.71
Add: Changing income of fair
value (Loss is listed with “-”)
Investment income (Loss is
4,622,846.59 4,622,846.59 8,208,570.05 8,208,570.05
listed with “-”)
Including: Investment income on
affiliated company and joint 4,622,846.59 4,622,846.59 8,208,570.05 8,208,570.05
venture
Exchange income (Loss is listed
with “-”)
Ⅲ . Operating profit (Loss is
34,519,373.09 49,616,631.20 66,864,053.20 70,215,690.17
listed with “-”)
Add: Non-operating income 12,076,754.07 10,433,752.28 9,061,210.88 7,347,646.81
Less: Non-operating expense 2,660,580.26 2,486,354.91 1,840,146.37 1,137,314.06
Including: Disposal loss of
33,783.00 33,783.00 184,341.75 117,460.41
non-current asset
Ⅳ. Total profit (Loss is listed
43,935,546.90 57,564,028.57 74,085,117.71 76,426,022.92
with “-”)
Less: Income tax expense 3,094,681.46 3,094,681.46 10,514,138.87 10,514,138.87
Ⅴ. Net profit (Net loss is listed
40,840,865.44 54,469,347.11 63,570,978.84 65,911,884.05
with “-”)
Net profit attributable to owners 54,469,347.11
40,840,865.44 63,570,978.84 65,911,884.05
of parent company
Minority shareholders’ gains and
losses
Ⅵ. Earnings per share
ⅰ. Basic earnings per share 0.1 0.14 0.16 0.16
ⅱ. Diluted earnings per share 0.1 0.14 0.16 0.16
7
Ⅶ. Other consolidated income
Ⅷ. Total consolidated income 40,840,865.44 54,469,347.11 63,570,978.84 65,911,884.05
Total consolidated income
attributable to owners of parent 40,840,865.44 54,469,347.11 63,570,978.84 65,911,884.05
company
Total consolidated income
attributable to minority
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.
4.4Cash flow statement from year-begin to the end of report period
Prepared by Wafangdian Bearing Company Limited Jan-Sep, 2012 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 1,284,118,815.59 1,366,651,118.12 1,331,366,349.25 1,356,918,705.88
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
Other cash received concerning
6,727,024.50 43,730,523.35 36,328,980.68
operating activities 6,026,360.60
Subtotal of cash inflow arising
1,290,845,840.09 1,372,677,478.72 1,375,096,872.60 1,393,247,686.56
from operating activities
Cash paid for purchasing
commodities and receiving labor 756,017,356.31 893,891,227.74 837,299,220.55 905,675,280.53
service
Net increase of customer loans
and advances
Net increase of deposits in
central bank and interbank
Cash paid for original
insurance contract
8
compensation
Cash paid for interest,
commission charge and
commission
Cash paid for bonus of
guarantee slip
Cash paid to/for staff and
183,096,755.42 147,174,697.32 201,856,276.12 171,034,377.20
workers
Taxes paid 64,575,839.04 59,686,888.38 74,289,620.58 69,847,184.86
Other cash paid concerning 138,821,844.95
149,711,732.67 138,155,643.97 126,878,878.74
operating activities
Subtotal of cash outflow arising
1,153,401,683.44 1,239,574,658.39 1,251,600,761.22 1,273,435,721.33
from operating activities
Net cash flows arising from
137,444,156.65 133,102,820.33 123,496,111.38 119,811,965.23
operating activities
Ⅱ. Cash flows arising from
investing activities:
Cash received from recovering
403,916.91 403,916.91
investment
Cash received from investment
income
Net cash received from disposal
of fixed, intangible and other 726,000.00 152,500.00 644,086.53 644,086.53
long-term assets
Net cash received from disposal
of subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash flow from
1,129,916.91 556,416.91 644,086.53 644,086.53
investing activities
Cash paid for purchasing fixed,
intangible and other long-term 9,389,018.53 8,554,014.03 71,575,895.86 57,112,868.03
assets
Cash paid for investment
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units
Other cash paid concerning
investing activities
Subtotal of cash outflow from
9,389,018.53 8,554,014.03 71,575,895.86 57,112,868.03
investing activities
Net cash flows arising from
-8,259,101.62 -7,997,597.12 -70,931,809.33 -56,468,781.50
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 1,005,385,611.16 1,005,385,611.16 619,070,000.00 614,000,000.00
Cash received from issuing
bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from
1,005,385,611.16 1,005,385,611.16 619,070,000.00 614,000,000.00
financing activities
9
Cash paid for settling debts 1,101,630,466.67 1,097,860,466.67 614,190,000.00 614,000,000.00
Cash paid for dividend and profit
30,514,988.76 30,395,261.07 29,763,755.29 29,429,241.39
distributing or invest paying
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
financing activities
Subtotal of cash outflow from
1,132,145,455.43 1,128,255,727.74 643,953,755.29 643,429,241.39
financing activities
Net cash flows arising from
-126,759,844.27 -122,870,116.58 -24,883,755.29 -29,429,241.39
financing activities
Ⅳ. Influence on cash and cash
equivalents due to fluctuation in 225,106.69 225,106.69 -800,956.63 -800,956.63
exchange rate
Ⅴ. Net increase of cash and
2,650,317.45 2,460,213.32 26,879,590.13 33,112,985.71
cash equivalents
Add: Balance of cash and cash
62,187,956.71 59,742,088.63 52,057,009.69 43,756,831.34
equivalents at the period-begin
Ⅵ. Balance of cash and cash
64,838,274.16 62,202,301.95 78,936,599.82 76,869,817.05
equivalents at the period-end
The above financial statements have been approved by the board meeting held on October 23, 2012.
4.5 Audited report
Audit opinions: not audited.
10
