Wafangdian Bearing Company Limited 2015 Midyear Report
Wafangdian Bearing Company Limited
2015 Midyear Report
2015-33
August 25, 2015
Wafangdian Bearing Company Limited 2015 Midyear Report
Chapter I. Important Prompts, Table of Contents, and Definitions
The Board of Directors, board of supervisors, directors, supervisors, and top management of the
Company hereby guarantee that there are no false record, misleading statements and important
omission of the material in this report, and assume the individual and associated responsibilities for the
truth, accuracy and completeness of the contents.
All the directors attended the Board meeting and discussed the report.
The Company plans not to distribute cash dividends or bonus shares or turn capital
reserve into share capital.
Chairman Meng Wei , General Accountant Ms. Sun Najuan and accounting charger Ms. Yao
Chunjuan declare: guarantee the truth and completeness of the financial report in the annual report.
The description of the future development in this report does not constitute a
commitment for investors. Investors are requested to pay attention to the risks
involved in your investment.
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Wafangdian Bearing Company Limited 2015 Midyear Report
Table of Contents
Chapter I. Important Prompts, Table of Contents, and Definitions......... 1
Chapter II.Company Profile....................................................................................4
Chapter III.Financial Highlights............................................................................ 5
Chapter IV Directors Report...................................................................................9
ChapterⅤ Significant Events....................................................... 错误！未定义书签。
ChapterⅥ. Changes in Capital Stock and Shareholders..... 错误！未定义书签。
Chapter Ⅶ. Directors, Supervisors, Senior Management and Staff 错误！未
定义书签。
Chapter Ⅷ. Corporate Governance............................................ 错误！未定义书签。
ChapterⅨ. Internal Control........................................................... 错误！未定义书签。
ChapterⅩ. Financial Report (Attachment)............................... 错误！未定义书签。
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Wafangdian Bearing Company Limited 2015 Midyear 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 current year
Defined as January 1,2015–June 30,2015
Liaozhou Co.,Ltd Defined as Wazhou Liaoyang Bearing Manufacture Co.,Ltd
Dalian motor Defined as Dalian motor Bearing Co.,Ltd
Wafangdian Bearing Company Limited The
The Board of Directors Defined as
Board of Directors
The Supervisory Committee Defined as Wafangdian Bearing Company Limited The
Supervisory Committee
Wafangdian Bearing Wafangdian Bearing Company Limited The
Defined as
Company Limited Shareholders’Meeting
Shen Jiao Suo Defined as Shen Zhen Stock Exchange
SRC Defined as China Securities Regulatory Commission
Dalian SKF Wazhou Company
Limited
Defined as Dalian SKF Wazhou
3
Wafangdian Bearing Company Limited 2015 Midyear Report
Chapter II.Company Profile
I. Company Information
Abbreviated name of Stock code: 200706
Wazhou B
the stock
Listing location of the
Shenzhen Stock Exchange
Company’s stock:
Chinese name of the
瓦房店轴承股份有限公司
Company
Abbreviation of
瓦轴股份公司
Chinese name
English name of the
Wafangdian Bearing Company Limited
Company
Abbreviation of
WBC
English name
Legal representative
Wang Lushun
of the Company
Registered address No. 1 Beigongji Street, Wafangdian City, Liaoning Province, China.
P.C 116300
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 StockA ffairs
Name Sun Najuan Ke Xin
No. 1 Beigongji Street, No. 1 Beigongji Street,
Correspondence address Wafangdian City, Liaoning Wafangdian City, Liaoning
Province, China. Province, China.
Consulting telephone 0411-39116369 0411-39116732
Fax 0411-39116738 0411-39116738
E-mail zwz2308＠126.com zwz2308＠126.com
III.Other information
i.The way to contact with compay
In the report period the Registered address ,P.C, office address,office P.C of the company
is no change.Detials can be seen in 2013 annual report.
ii.Place for information disclosure
In the report period the place for information disclosure is no change. is no change.Detials
4
Wafangdian Bearing Company Limited 2015 Midyear Report
can be seen in 2013 annual report.
iii. Change of Business Registration
In the report period the Registration .date Registration place No. of Incorporation, Certificate No. of
Taxation Registration Organization code is no change. etials can be seen in 2013 annual report.
iv.Other relevant information
In the report period other relevant information is no change.
Chapter III. Financial Highlights
I.Main accounting data and indices
Are there any retrospective adjustments or restatement of financial information of previous year due to
change of accounting policies or correcting of accounting errors?
[ ] Yes [V] No
In RMB Yuan
+/-（％）comparing with
current period previous period
the previous period
Turnover(RMB) 1,168,093,679.34 1,641,013,208.71 -28.82%
Net profit attributable to
shareholders of the listed -59,587,254.16 -17,449,186.08 241.49%
company(Yuan)
Net profit attributable to the
shareholders of the
listed company and after deducting -65,404,823.42 -20,480,427.05 219.35%
of
non-recurring gain/loss(RMB)
Net Cash flow generated by
business operation 14,734,845.66 56,163,250.30 -73.76%
(RMB)
Basic earnings per
-0.15 -0.04 275.00%
share(Yuan/share)
Diluted earnings per
-0.15 -0.04 275.00%
share(Yuan/share)
Net return on equity(%) -4.41% -1.17% -3.24%
Changed over last year
End of 2015.06.30 End of 2014.12.31
(%)
Total Assets (RMB) 3,711,289,841.13 3,935,819,231.85 -5.70%
Owner’s Equity Attributed to
Shareholders of Listed 1,322,257,734.56 1,381,844,988.72 -4.31%
Company(RMB)
II. Differences in accounting information under IAS and domestic accounting standard
1. Differences in net profit and net asset under domestic and international accounting standards
In RMB Yuan
5
Wafangdian Bearing Company Limited 2015 Midyear Report
Net profit attributable to the Net asset attributable to the
shareholders of the listed company shareholders of the listed company
Current term Amount of last term End of term Beginning of term
On Chinese Accounting
-59,587,254.16 -17,449,186.08 1,322,257,734.56 1,381,844,988.72
Standard
Items and amounts adjusted on IAS
Under International
-59,587,254.16 -17,449,186.08 1,322,257,734.56 1,381,844,988.72
Accounting Standard
2. Differences in net profit and net asset under domestic and overseas accounting standards
Net profit attributable to the Net asset attributable to the
shareholders of the listed company shareholders of the listed company
Current term Amount of last term End of term Beginning of term
On Chinese Accounting
-59,587,254.16 -17,449,186.08 1,322,257,734.56 1,381,844,988.72
Standard
Accounts and amounts adjusted according to overseas accounting standard
On IAS -59,587,254.16 -17,449,186.08 1,322,257,734.56 1,381,844,988.72
In RMB Yuan
3. Statement on the differences of accounting information on IAS and domestic accounting
standard
No difference
III. Non-recurring gain/loss items and amounts
Items Amount Remarks
Gain/loss of non-current assets
(includes the neutralized part of the asset impairment
717,043.38
provision drawn
already)
Gains and losses included in the current period of
government subsidies, excluding those government grants
which are closely related to normal business and in line 2,497,040.93
with national policy, or in accordance with fixed standards
or quantities
Debt restructuring gains and losses 3,186,216.67
Other non-business income and expenditures other than
19,933.10
the above
Influenced amount of income tax 602,664.82
Total 5,817,569.26 --
In RMB Yuan
For the Company‘s non-recurring gain/loss items as defined in the Explanatory Announcement
No.1 on Information Disclosure for Companies Offering their Securities to the Public–Non-recurring
Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement
No.1 on Information Disclosure for Companies Offering their Securities to the Public–Non-recurring
Gains and Losses which have been defined as recurring gains and losses, it is necessary to explain the
reason.
□Applicable√Inapplicable
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Wafangdian Bearing Company Limited 2015 Midyear Report
Chapter IV Directors Report
I. Overview
At the end of June 30, company's total assets is 3.71129 billion Yuan, which decrease 5.7%
compared with the beginning of this year; Net assess attributing to shareholders of listed company
1.32226 billion Yuan, decreased by 4.31% compared with then beginning of this year; Operating income
is 1.16809 billion Yuan, decrease by 28.82% compared with the same period last year; Net profit of
attributing to shareholders of the parent company is minus 59.59 million Yuan.
II. Analysis of Main Business
Item Report period Last report period Changed Change reason
by %YoY
Main Business Income 1,168,093,679.34 1,641,013,208.71 -28.82%
Main Business Cost 1,068,509,261.57 1,490,487,024.71 -28.31%
Sales Expenses 98,588,255.39 118,732,526.35 -16.97%
Management Expenses 40,067,918.93 35,930,304.10 11.52%
Financial Expenses The interest of circulating fund loan
and long-term loan increase 6.68
million Yuan compared with last
20,655,027.80 11,935,634.49 73.05%
peirod,the net amount of exchange
increase 1.79 million Yuan
compared with last peirod
Tax Expenses 264,036.88 The income tax is from SRB Q1
Spending on research and
development of the 55,000,000.00 60,000,000.00 -8.33%
business income ratio
Mainly beacasue the sale is
Net Cash Flows from decline,and the customer payment
14,734,845.66 56,163,250.30 -73.76%
Operating Activities derease,which lead the Net Cash
Flowin decline sharply
Net Cash Flows from Mainly beacasue the payment for
-17,722,945.26 -32,108,788.92 -44.80%
Investing Activities fix asset decline by 79.7%.
In order to decrease financing
cost,the company cut down the
short loan with amount of 193
million Yuan compared with
Net Cash Flows from beginning of year,while increse
-58,164,206.80 21,065,196.30 -376.12%
Financing Activities order financing with amount of
152.58 million Yuan compared
with beginning of year,which make
the Net Cash Flows from Financing
Activities decrease a lot.
Mainly beacasue the Net Cash
Net Increase in Cash and Flows of Operating Activities
-60,933,606.57 46,283,411.30 -231.65%
Cash Equivalents and Financing Activities
decrease
The profit structure or source change greatly
□ Applicable √Inapplicable
Pre-disclosure of operation plan
7
Wafangdian Bearing Company Limited 2015 Midyear Report
□Applicable √Inapplicable
Review on the progress of prior disclosure development strategy and business plan during the
reporting period
In 2015,the domestic market was more competitive, price of product was failing, profit margins was
becoming narrowly.The international market competition was trending he domestic market, domestic competition
internationalization was serious day by day,sales price of bearing product continued to slide, These reasons
constitute a bigger threat to improve operation quality, cause the company did not finish business plan. But in the
second quarter, the company actively take various measures, through cost reduction, etc., effectively reversing in
the first quarter of 2015, in the second quarter loss situation is under control.
III. Main business composition
In RMB Yuan
+/-(%) of +/-(%) of
Operating
Operating cost BOI operating operating +/-(%) of BOI
income
income cost
By Industries
Export 193,792,609.52 186,314,923.98 3.86% 37.45% 38.10% -0.45%
Civil
Including:
Traffic 326,872,960.16 301,627,835.24 7.72% -43.48% -41.04% -3.81%
Bearing
Special
242,612,118.62 220,750,339.75 9.01% -22.34% -26.41% 5.03%
Bearing
Common
292,186,482.59 247,113,635.17 15.43% -19.25% -21.46% 2.38%
Bearing
Industrial
11,753,733.85 14,722,141.27 -25.26% -77.67% -74.96% -13.58%
income
On Products
Bearing 1,055,464,170.89 955,806,734.14 9.44% -24.26% -24.21% -0.06%
Industry
11,753,733.85 14,722,141.27 -25.26% -77.67% -74.96% -13.58%
operation
Region
Civil 873,425,295.22 784,213,951.43 10.21% -33.08% -33.82% 1.01%
Foreign 193,792,609.52 186,314,923.98 3.86% 37.45% 38.10% -0.45%
IV. Core competence analyzing
The company core competition ability is no change.
V. Investment Analysis
1.External equity investment
None
2. Analysis of Main Subsidiaries and Investment Companies
Unit:RMB
8
Main
Company Registered Operating Operating
Type Industry Product or Total Asset Net Asset Net Profit
Wafangdian Bearing Company LimitedCapital
Name Profit
Revenue Midyear Report
2015
Service
Product and
Sale Bearing 19,350,00 134,199,982 -29,234,040. 69,225,395. -7,202,301. -6,083,228.0
Liaoyang
Subsidiary and 0 .83 31 63 67 6
Bearing
machine-electr
ical equipment
Dalian 10,000,00 142,548,037 17,572,074. 85,729,062.
Product and 46,203.76 22,631.08
Electrical Subsidiary 0 .55 42 83
Sale Bearing
Equipment
Wzhou
precision Product and
spherical Joint-stock Sales 194,000,0 251,322,850 226,056,372 61,528,573. 1,090,178.0
roller 898,007.33
00 .00 .94 10 1
bearing(Wa Company Spherical
Roller Bearing
fangdian)
Co.,Ltd.
3. Important Non-raised Capital’s Projects
Unit:0000’Yuan
Total Investment
Accumulate
Plan in the
Project d Progress Earnings
Investme report
investment
nt period
Import Grinding
equipment Import international advanced Grinding equipment
modification of 2,940 500 1,090 45.00% production line, form a high level big truck axle bearing
railway wagon batch production ability
bearing
Import
Superfinishing Import international advanced Superfinishing machine,
machine of 970 100 180 45.00% form a high level big truck axle bearing batch production
railway wagon ability
bearing
Heat treatment
Import international advanced Heat treatment machine,
machine of
860 150 480 45.00% form a high level big truck axle bearing batch production
railway wagon
ability
bearing
supporting
prodcution
Import international advanced upporting prodcution
line,detection
2,500 300 920 45.00% line,detection machine, form a high level big truck axle
machine of
bearing batch production ability
railway wagon
bearing
mport Grinding
equipment
Expend high-grade car export ability,to have a stable
production line for 2,860 1,700 2,500 70.00%
top grade auto
exprot market
bearing
supporting
prodcution
Expend high-grade car export ability,to have a stable
line,detection 1,580 402 960 70.00%
exprot market
machine for top
grade auto bearing
Heat treatment
machine and
other To guarantee the develop meet on prodcut quality and
2,380 540 1,200 55.00%
supporting efficiency
prodcution
project
Total 14,061 9,201 6,150 --
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Wafangdian Bearing Company Limited 2015 Midyear Report
VI. Forecast for operation outstanding from 2014 January to September
Inapplicable
VII. Explanation of the Board of Directions and Board of supervisor on the
Qualified Auditor’s Report Issued by the CPAs
The financial report is unaudited
VIII Explanation of the Board of Directions on the Qualified Auditor’s last year
Report Issued by the CPAs
The financial report is unaudited
IX. Dividend Distribution
Inapplicable
X.Reception of investigations,communications,or interviews in the report period
Main content involved
Time/date Place Way Type of visitors Visitors
and material provided
Telephone Private Private The general information
March 4,2015 Office
communication investor investor of the company
Telephone Private Private The general information
March 18,2015 Office
communication investor investor of the company
Telephone Private Private The general information
April 28,2015 Office
communication investor investor of the company
Telephone Private Private The general information
May 19,2015 Office
communication investor investor of the company
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Wafangdian Bearing Company Limited 2015 Midyear Report
ChapterⅤ Significant Events
I. Corporate Governance
During the report period, the Company had continuously observed Company Law, Securities Law, and
Guidelines of Corporate Governance for Listed Company and relevant regulations to improve and
enhance its corporate governance.
1.1 The holding of the shareholders, board of directors and board of supervisors, the voting procedures
and the formation of the resolutions were totally subject to these regulations.
1.2 The Company has made its internal management systems and regulations for restriction of
budgeting, purchasing, logistics and sale, etc, and executed them strictly.
1.3 The company has separated business, personnel, assets, interior organization and finance from its
holding shareholder:
(1) The Company had independent operations itself, with its business separated from its holding
shareholders;
(2)The Company was independent in terms of its personnel, labor and salary management, and had its
own independent labor and personnel management systems. (3)The production system, auxiliary
production system and supplementary facilities of the Company were independent from the controlling
shareholder.
(4)The Company has separated the accounting from the controlling shareholder. The Company carried
out independent finance and accounting on its own and paid taxes independently.
(5)The Company has established the organizations independent on the holding shareholder
II. Main Lawsuits and Arbitration Affairs
□Applicable √ Inapplicable
There were no important lawsuits and arbitration affairs.
III. Media query.
□ Applicable √ Inapplicable
There was no media query in the report period.
IV. Bankruptcy and Recombination
□ Applicable √ Inapplicable
V. Asset business
√Applicable □ Inapplicable
Sales of asset
The Whether The assets The debt is
The Price（10 assets Influence Pricing is right is totally
assets for transferd Date of
dealing
sale
Sale date thousand Contrub to related
principle transacti totally disclosure
The index
party Yuan） ution to company changed or not
profit ons or not
Old January Increase yes
Buyer machine to June 148.9 717 equitable No Yes
s 2015 thousand
Yuan
VI.Implementation and Influence of Equity Incentives
□ Applicable √ Inapplicable
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Wafangdian Bearing Company Limited 2015 Midyear Report
VII. Important Contracts and Implementation
1、The relate transactions related to the day-to-day operations.
The
Percenta More
Approval
Relative ge of than the The Way Disclosu
Relative Relative Conte Principle Relative amount Market Disclosur
Relationship Amount(R account approved Of re
parties type nt of price Price (RMB’000 price e Index
MB’0000) ed for amount Account Date
0)
similar or not
deals(%)
Merchandi Cash
Justice
se Compo Market Payment
and 273 0.20% 677 no
Procurem nents price or The
Equity
Other Companies ent Knot
controlled by the Goods Cash
Wazhou Justice
same controlling Sales of and Market Payment
precision Steel share holders and and 44 0.04% 300 no
goods Materia price or The
Ball Company the ultimate Equity
ls Knot
controlling party
Cash
Heat Justice
Provide Market Payment
treatm and 78 0.07% 170 no
Service price or The
ent Equity
Knot
Merchandi Cash
Justice
Other Companies se Compo Market Payment
and 9,488 7.06% 25,000 no
controlled by the Procurem nents price or The
Wazhou Equity
same controlling ent Knot
precision share holders and Goods Cash
forging Ltd., the ultimate Justice
Sales of and Market Payment
controlling party and 8,845 7.57% 32,000 no
goods Materia price or The
Equity
ls Knot
Merchandi Cash
Justice
Other Companies se Produc Market Payment
Dalian and 392 0.29% 2,000 no
controlled by the Procurem tion price or The
Wazhou Equity
same controlling ent Knot
Manufacturing share holders and
Equipment Goods Cash
the ultimate Justice
Co., Ltd Sales of and Market Payment
controlling party and 76 0.07% 160 no
goods Materia price or The
Equity
ls Knot
12
Wafangdian Bearing Company Limited 2015 Midyear Report
Merchandi Bearin Cash
Justice
Other Companies se g Market Payment
and 7,958 5.92% 4,000 Yes
Procurem Produc price or The
Wazhou Group controlled by the Equity
same controlling ent t Knot
Turnplate share holders and Cash
Bearing Ltd the ultimate Justice
Sales of Materia Market Payment
controlling party and 40 0.03% 80 no
goods ls price or The
Equity
Knot
Merchandi Bearin Cash
Justice
se g Market Payment
and 3,794 2.82% 10,300 no
Procurem Produc price or The
Equity
ent t Knot
Wazhou Group Other Companies
controlled by the Cash
precision Justice
same controlling Sales of Materia Market Payment
Transmission share holders and and 820 0.70% 2,300 no
goods ls price or The
Bearing Co., the ultimate Equity
Knot
Ltd controlling party
Cash
Heat
Provide Market Payment
treatm 58 0.05% 210 no
Service price or The
ent
Knot
Goods Cash
Justice
Wazhou Group Other Companies Sales of and Market Payment
and 160 0.14% 450 no
Precision controlled by the goods Materia price or The
Equity
special same controlling ls Knot
Bearing share holders and Cash
the ultimate Heat
Company Provide Payment
controlling party treatm 17 0.01% 70 no
Limited Service or The
ent
Knot
Da Lian
Merchandi Bearin Cash
Wazhou Justice
Other Related party se g Market Payment
Fengyuan and 4,380 3.26% 16,000 no
Procurem Produc price or The
Machine Equity
ent t Knot
Co.,Ltd
Merchandi Bearin Cash
Da Lian Justice
se g Market Payment
Wazhou Jin Other Related party and 5,543 4.13% 14,500 no
Procurem Produc price or The
Zhou Machine Equity
ent t Knot
Co.,Ltd
Sales of Goods Justice Market 30 0.03% 30 no Cash
13
Wafangdian Bearing Company Limited 2015 Midyear Report
goods and and price Payment
Materia Equity or The
ls Knot
Cash
Heat Justice
Provide Market Payment
treatm and 12 0.01% 50 no
Service price or The
ent Equity
Knot
Merchandi Bearin Cash
Justice
se g Market Payment
and 1,888 1.41% 7,000 no
Procurem Produc price or The
Equity
ent t Knot
Wafangdian
Goods Cash
Tongda Justice
Sales of and Market Payment
Bearing Other Related party and 25 0.02% Yes
goods Materia price or The
Manufacturing Equity
ls Knot
Co., Ltd
Cash
Heat Justice
Provide Market Payment
treatm and 6 0.00% 50 no
Service price or The
ent Equity
Knot
Merchandi Cash
Justice
Da Lian KOYO Other Related party se Market Payment
Goods and 2,040 1.52% 5,000 no
Co., Ltd Procurem price or The
Equity
ent Knot
Other Companies
controlled by the Merchandi Cash
Equipment justice
same controlling se equipm Market Payment
technical share holders and and 1,567 1.17% 4,500 no
Procurem ent price or The
engineering the ultimate Equity
ent Knot
controlling party
Merchandi Cash
justice
se Market Payment
product and 2,950 2.20% 0 Yes
Procurem price or The
Equity
The controlling ent Knot
share holders and Lease Cash
Wazhou Group justice
the ultimate of Market Payment
and 455 0.33% 1,900 no
controlling party Accept House price or The
Equity
Service s, Knot
machi justice Market Cash
413 0.32% 950 no
mes and price Payment
14
Wafangdian Bearing Company Limited 2015 Midyear Report
rent Equity or The
Knot
Securit Cash
justice
y and Market Payment
and 165 0.12% 329 no
Fire price or The
Equity
Service Knot
Annou Cash
justice
nceme Market Payment
and 39 0.03% 80 no
nt price or The
Equity
Service Knot
Techno
Cash
logy justice
Market Payment
Develo and 270 0.20% 0 Yes
price or The
pment Equity
Knot
Service
Cash
justice
Trade Market Payment
and 212 0.16% 900 no
mark price or The
Equity
Knot
Goods Cash
Justice
Sales of and Market Payment
and 52 0.04% 130 no
goods Materia price or The
Equity
ls Knot
Other Companies
controlled by the Bearin Cash
Wazhou group Justice
same controlling Sales of g Market Payment
(USA) bearing and 8,439 7.22% 7,700 Yes
share holders and goods Produc price or The
co., LTD Equity
the ultimate t Knot
controlling party
Total -- -- 60,529 -- 136,836 -- -- --
15
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-yearal Report
ii、The related business on asset purchase and sales
iii. Major related business on jointly investment
iv、Credit and Debt with relevant parties
Credit and Debt from non-operation
□ Applicable √ Inapplicable
V. Other important related business
□ Applicable √ Inapplicable
Vi. Important contract and implement
VIII. Statements of the Supervisory Committee and Independent Directors (if applicable) on the
“Non-standard Auditors’ Report” issued by the CPA.
□ Applicable √ Inapplicable
IX. The implement of major contract and its performance
1. Deposit, contract and rent.
The content of rent can be found in part eleven “Related Parties Relationship and Transactions” section five
“Related rent”
X. Commitment made by sharehoder with over 5% shares in the report or happen before but last to
the report
□ Applicable √ Inapplicable
XI. Hiring, firing certified public accountants
□ Applicable √ Inapplicable
XII. Punishment and rectification
□ Applicable √ Inapplicable
XIII. Suspension and terminated listig after the annual report disclosure.
□Yes √ No
XIV. Other important matters
□Yes √ No
16
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-yearal Report
ChapterⅥ. Changes in Capital Stock and Shareholders
Before Changes Changes in Shares After Changes
Shares Ratio Conversi Ratio
New on of
Bonus
Shares Others Subtotal Shares
Shares Reserve
Issued s
to Share
1.Non-tradable 244,000 244,000
60.61% 60.61%
Shares ,000 ,000
244,000 244,000
a. Promoters’ Shares 60.61% 60.61%
,000 ,000
Including： 244,000 244,000
60.61% 60.61%
State-owned share ,000 ,000
158,600 158,600
2.Tradable shares 39.39% 39.39%
,000 ,000
158,600 158,600
b.B shares 39.39% 39.39%
,000 ,000
402,600 402,600
3.Total 100% 100%
,000 ,000
I. Changes in Capital Stock
Reason of Changes of Shares
□Applicable √ Inapplicable
Influence from the shareholding movements upon such financial indicators as earnings per share, net
asset per
share of the latest year and the latest accounting period
□Applicable √ Inapplicable
II. Shareholders and Actual Controller
1. Number of Shareholders and Shares
Unit: Share
Total number of shareholder at Total number of shareholder at the end of
7739 0
the end of report period report period with preferred stock
Shareholders with 5% or above Shares
Increase Impawned or Frozen
or Non-cu Shares
Current
Ratio Total shares decrease rrent shares
Name Nature shares
（%） held in the held
held
report Status Amount
period
Wafangdian 244,0
State-owned 60.61
Bearing Group 402,600,000 00,00
shareholder %
Corporation 0
AKTIEBOLAG Foreign 19.70 79,300,00
79,300,000 Frozen 79,300,000
ET SKF shareholder % 0
BOCI
Foreign
SECURITIES 0.80% 3,120,000
shareholder
LIMITED
Domestic
Huang Junyue 0.80% 3,060,000
shareholder
Jin Yunhua Domestic 0.40% 1,674,140
17
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-yearal Report
shareholder
GUOTAI
JUNAN
Foreign
SECURITIES(H 0.30% 1,255,949
shareholder
ONGKONG)
LIMITED
Domestic
Hu Xiaofeng 0.30% 1,187,877
shareholder
KGI ASIA Foreign
0.20% 878,710
LIMITED shareholder
MAN,KWAI Foreign
private 0.20% 713,101
WING 文贵荣
shareholde
Domestic
Yang Yufei 0.10% 502,278
shareholder
Explanation for the Affiliated In the report period, the frozen period of the shares purchased by the
Relations or United Action of company’s strategic investor AKTIEBOLAGET SKF expired in 1999, and has not
the Top Ten Shareholders dealt with the releasing-procedure in this report period.
Notes to relationship or
“action in concert”among the
top ten shareholders.
Top Ten Tradable Shareholders
Category of Shares
Name Current shares held at end of year (Note 4)
Categories Amount
AKTIEBOLAGET SKF 79,300,000 B 79,300,000
BOCI SECURITIES LIMITED 3,120,000 B 3,120,000
Huang Junyue 3,060,000 B 3,060,000
Jin Yunhua 1,674,140 B 1,674,140
GUOTAI JUNAN B
SECURITIES(HONGKONG) 1,255,949 1,255,949
LIMITED
Hu Xiaofeng 1,187,877 B 1,187,877
KGI ASIA LIMITED 878,710 B 878,710
MAN,KWAI WING 文贵荣 713,101 B 713,101
Yang Yufei 502,278 B 502,278
Ma Yuancheng 480,000 B 480,000
Explanation for the Affiliated
Relations or There was no relationship and consistent activities between the first big
United Action of the Top Ten shareholder and other shareholders or the top ten common stock holders;
Shareholders and the Top Ten The relationship among other shareholders, top ten circulation shareholders,
Tradable top ten circulation shareholders and other shareholders was not clear.
Shareholders
iii Change of Controlling Shareholder Actual Controller in the Report Period
□ Applicable √ Inapplicable
18
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-yearal Report
ChapterⅦ. Relevant information about preferred stock
ChapterⅧ. Directors, Supervisors, Senior Management and Staff
I. Shares holding change in Directors, Supervisors, Senior Management
Inapplicable
II. Changes of Directors, Supervisors and Senior Management
Name Position Type Date Reason
Appoint and
Tan Jianguang supervisor January 5,2015 Position change
dismiss
Tan Jianguang Deputy manager Engage January 5,2015
Zhu Jiming Director Resignation June 12,2015 Work reason
SunYongsheng supervisor Engage June 18,2015
Liu Yuping Independent director Resignation June 18,2015
Sun Guangguo Independent director Resignation June 18,2015
Wan Shouyi Independent director Engage June 18,2015
Wen Bo Independent director Engage June 18,2015
Chapter VIII. Financial Report
I. Audit Report
The financial report is unaudited
II. Financial Statement
1. Consolidated Balance Sheet.
Unit: RMB Yuan
Item Closing Balance Opening Balance
Current assets ：
Monetary fund 122,884,207.45 180,569,164.66
Financial assets held-for-trading
Bills receivable 148,751,133.19 188,117,975.71
Account receivable 1,043,421,699.08 1,098,566,178.20
Account paid in advance 39,067,599.72 44,031,201.66
Interest receivable
Dividend reciivable 240,000.00
Other receivables 27,139,296.12 19,211,927.22
Inventory 1,114,216,661.49 1,166,347,866.35
Non-current assets due within 1 year
Other current assets 17,479,640.62 24,534,185.32
Total current assets 2,512,960,237.67 2,721,618,499.12
Non-current assets
Financial assets available-for-sale 2,000,000.00 2,000,000.00
19
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-yearal Report
Investments held-to-maturity
Long-term receivable
Long-term equity investment
Investment property
Fixed assets 658,519,157.61 695,819,839.43
Construction in progress 387,382,617.78 363,404,435.51
Construction materials
Fixed assets disposal
Biological assets
Gas and petrol assets
Intangible assets 137,884,955.59 140,355,336.13
Development expenditure
Goodwill
Long-term prepaid expense 689,605.21 767,854.39
Deferred tax assets 11,853,267.27 11,853,267.27
Other non-current assets
Total non-current assets 1,198,329,603.46 1,214,200,732.73
Total assets 3,711,289,841.13 3,935,819,231.85
Current liabilities
Short-term loan 305,000,000.00 498,000,000.00
Note payable 204,389,337.00 206,867,023.86
Accounts payable 1,445,389,642.00 1,388,424,650.70
Accounts received in advance 41,513,167.08 48,558,339.92
Commission charge payable
Accrued payroll 18,932,447.87 20,275,364.44
Tax payable 4,944,060.75 3,676,987.88
Interest payable 10,899,993.00 5,942,500.00
Dividends payable
Other payables 161,496,832.28 183,285,758.81
Non-current liabilities due within I year 90,000,000.00 90,000,000.00
Other current liabilities 4,411,103.83 4,761,103.83
Total current liabilities 2,286,976,583.81 2,449,791,729.44
Non-current liabilities
Long-term loan 50,000,000.00 50,000,000.00
Debenture payable
Long-term payables 1,597,305.72 1,597,305.72
Special payables 321,698.98 321,698.98
Contingent liabilities
Deferred incom 48,995,522.71 51,122,513.64
Deferred tax liabilities 1,140,995.35 1,140,995.35
Other non-current liabilities
Total non-current liabilities 102,055,522.76 104,182,513.69
Total liabilities 2,389,032,106.57 2,553,974,243.13
Owner’s equity (shareholders’ equity)
Capital stock 402,600,000.00 402,600,000.00
Capital public reserves 485,691,050.47 485,691,050.47
Less: treasury share
Surplus reserve 131,442,909.11 131,442,909.11
Undistributed profit 302,523,774.98 362,111,029.14
Difference of foreign currency translation 1,322,257,734.56 1,381,844,988.72
Equity attributable to parent company
Minority interest
Total owner’s equity 1,322,257,734.56 1,381,844,988.72
Total owner’s equity and liabilities 3,711,289,841.13 3,935,819,231.85
Chairman: Meng Wei General Accountant : Sun Najuan Accounting charger: Yao Chunjuan
20
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-yearal Report
2. Balance Sheet of Parent Company
Unit: RMB Yuan
Item Opening Balance Closing Balance
Current assets ：
Monetary fund 117,538,850.04 172,688,792.14
Financial assets held-for-trading
Bills receivable 140,994,902.72 181,824,053.86
Account receivable 1,030,348,276.98 1,106,322,532.09
Account paid in advance 32,571,170.89 40,549,347.10
Interest receivable
Dividend receivable 240,000.00
Other receivables 24,498,834.63 15,661,424.30
Inventory 1,033,436,814.74 1,079,876,029.63
Non-current assets due within 1 year
Other current assets 10,741,876.40 15,143,422.57
Total current assets 2,390,130,726.40 2,612,305,601.69
Non-current assets
Financial assets available-for-sale 2,000,000.00 2,000,000.00
Investments held-to-maturity
Long-term receivable
Long-term equity investment 211,583,897.67 211,583,897.67
Investment property
Fixed assets 534,533,043.15 565,949,871.82
Construction in progress 266,490,300.31 243,881,508.42
Construction materials
Fixed assets disposal
Biological assets 117,219,115.70 119,333,165.54
Gas and petrol assets
Intangible assets
Development expenditure
Goodwill
Long-term prepaid expense 689,605.21 767,854.39
Deferred tax assets 10,580,100.02 10,580,100.02
Other non-current assets
Total non-current assets 1,143,096,062.06 1,154,096,397.86
Total assets 3,533,226,788.46 3,766,401,999.55
Current liabilities
Short-term loan 305,000,000.00 498,000,000.00
Note payable 203,089,337.00 206,867,023.86
Accounts payable 1,335,636,508.49 1,296,111,095.77
Accounts received in advance 40,100,969.49 48,868,818.23
Commission charge payable
Accrued payroll 11,054,166.47 12,247,600.92
Tax payable 2,598,055.67 1,092,872.50
Interest payable 10,899,993.00 5,942,500.00
Dividends payable
Other payables 114,870,403.74 135,496,360.01
Non-current liabilities due within I year 90,000,000.00 90,000,000.00
Other current liabilities 4,313,555.83 4,313,555.83
Total current liabilities 2,117,562,989.69 2,298,939,827.12
Non-current liabilities
Long-term loan 50,000,000.00 50,000,000.00
Debenture payable
Long-term payables
Special payables 321,698.98 321,698.98
Contingent liabilities
Deferred income 44,508,314.71 46,635,305.64
21
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-yearal Report
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 94,830,013.69 96,957,004.62
Total liabilities 2,212,393,003.38 2,395,896,831.74
Owner’s equity (shareholders’ equity)
Capital stock 402,600,000.00 402,600,000.00
Capital public reserves 485,678,443.26 485,678,443.26
Less: treasury share
Surplus reserve 131,442,909.11 131,442,909.11
Undistributed profit 301,112,432.71 350,783,815.44
Difference of foreign currency translation
Equity attributable to parent company
Minority interest
Total owner’s equity 1,320,833,785.08 1,370,505,167.81
Total owner’s equity and liabilities 3,533,226,788.46 3,766,401,999.55
3. Consolidated Income Sheet.
Unit: RMB Yuan
Account for the current
Item Account for the prior period
period
1.Total operating income 1,168,093,679.34 1,641,013,208.71
Including: Operating revenue 1,168,093,679.34 1,641,013,208.71
Interest income
Handling charge and commission income
2.Total operating cost 1,233,837,130.70 1,664,289,776.23
Including: Operating cost 1,068,509,261.57 1,490,487,024.71
Interest expenses
Handling charge and commission income
Tax & surcharges for main operations 6,001,203.40 6,171,354.22
Selling expenses 98,588,255.39 118,732,526.35
Administrative expense 40,067,918.93 35,930,304.10
Financial expense 20,655,027.80 11,935,634.49
Loss of impairment of assets 15,463.61 1,032,932.36
Add: Gains of change of fair value of assets(loss
with"-")
Investment income(loss with "-") 2,261,215.59
Including: Income form investment on
associated enterprise and jointly enterprise 0.00 2,261,215.59
3.Operating profit (loss with"-") -65,743,451.36 -21,015,351.93
Add: Non-operating revenue 6,894,300.08 4,368,539.55
Less: Non-operating cost 957,589.72 27,802.77
Including: loss on disposal of non-current assets 474,066.00 802,373.70
4.Total profit(loss with"-") 240,546.34
Less: Income tax expenses -59,323,217.28 -17,449,186.08
5. Net profit(Loss with"-") 264,036.88
Net profit attributable to shareholders of parent
company -59,587,254.16 -17,449,186.08
Minority interests
6. Other comprehensive returns
7. Total comprehensive returns -59,587,254.16 -17,449,186.08
Total comprehensive returns available for parent
company -59,587,254.16 -17,449,186.08
Total comprehensive returns available for
minority shareholders
6.Earnings per share
(1) Basic earnings per share -0.15 -0.04
(2) Diluted earnings per share -0.15 -0.04
Chairman: Meng Wei General Accountant : Sun Najuan Accounting charger: Yao Chunjuan
22
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-yearal Report
4. Income Sheet of Parent Company.
Unit: RMB Yuan
Account for the current
Item Account for the prior period
period
1.Total operating income 1,207,722,167.59 1,643,461,366.28
Less:Operating cost 1,113,365,931.88 1,494,654,881.09
Tax & surcharges for main operations 5,301,076.02 5,418,432.45
Selling expenses 98,046,463.76 118,078,966.63
Administrative expense 25,937,146.39 26,247,250.39
Financial expense 20,948,319.00 12,175,479.92
Loss of impairment of assets 15,463.61 1,032,932.36
Add: Gains of change of fair value of assets(loss
with"-")
Investment income(loss with "-") 2,261,215.59
Including: Income form investment on
2,261,215.59
associated enterprise and jointly enterprise
2.Operating profit (loss with"-") -55,892,233.07 -11,885,360.97
Add: Non-operating revenue 6,560,907.95 2,058,659.28
Less: Non-operating cost 340,057.61 794,929.94
Including: loss on disposal of non-current assets
3.Total profit(loss with"-") -49,671,382.73 -10,621,631.63
Less: Income tax expenses
4. Net profit(Loss with"-") -49,671,382.73 -10,621,631.63
Net profit attributable to shareholders of parent
-49,671,382.73 -10,621,631.63
company
Minority interests
5. Other comprehensive returns
6. Total comprehensive returns -49,671,382.73 -10,621,631.63
Total comprehensive returns available for parent
company
Total comprehensive returns available for
minority shareholders
7.Earnings per share
(1) Basic earnings per share -0.12 -0.03
(2) Diluted earnings per share -0.12 -0.03
5. Consolidated Cash Flow Statement.
Unit: RMB yuan
Account for the current
Item Account for the prior period
period
1.Cash from operating activities
Cash received from sale of goods or Provideing
602,752,635.37 699,010,861.57
of services
Refund of taxes and fares 129.17
Other cash received relating to operating
1,986,184.06 6,856,715.72
activities
Sub-total of cash inflows 604,738,819.43 705,867,706.46
Cash paid for goods and services 331,602,614.87 346,912,442.67
Cash paid to or on behalf of the employees 170,346,950.86 171,292,291.78
Tax payments 25,216,808.36 42,258,628.44
Other cash paid relating to operating activities 62,837,599.68 89,241,093.27
Sub-total of cash outflows 590,003,973.77 649,704,456.16
Net cash flows from operating activities 14,734,845.66 56,163,250.30
23
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-yearal Report
2.Cash flows from investing activities
Cash received from return of investment 240,000.00
Cash received from investment incomes 18,000.00
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets
Proceeds from sale of subsidiaries and other
operating units
Other cash received relating to investing
activities
Sub-total of cash inflows 18,000.00 240,000.00
Cash paid to acquire fixed assets, intangible
6,490,945.26 32,348,788.92
assets and other long-term assets
Cash paid to acquire investment 11,250,000.00
Net cash used in acquiring subsidiaries and other
operating units
Other cash paid relating to investing activities
Sub-total of cash outflows 17,740,945.26 32,348,788.92
Net cash flows from investment activities -17,722,945.26 -32,108,788.92
3.Cash flows from financing activities
Cash received from absorbing investment
Including: Cash received from increase in
minority interest
Proceeds from borrowings 447,579,700.00 338,000,000.00
Other proceeds relating to financing activities
Sub-total of cash inflows 447,579,700.00 338,000,000.00
Repayment of borrowings 488,000,000.00 299,322,611.11
Distribution of dividends or profits & interest
17,743,906.80 17,612,192.59
expenses
Including: dividends or profit paid to minority
interest
Cash paid for other financing activities
Sub-total of cash outflows 505,743,906.80 316,934,803.70
Net cash flows from financing activities -58,164,206.80 21,065,196.30
4. Effects of foreign exchange rate changes
218,699.83 1,163,753.62
on cash
5.Net increases in cash and cash equivalents -60,933,606.57 46,283,411.30
Add: cash and cash equivalent, at the beginning
143,399,164.66 60,616,759.13
of year
6.Cash and cash equivalent at the end of the
82,465,558.09 106,900,170.43
year
6. Cash Flow Statement Of Parent Company.
Unit: RMB yuan
Account for the current
Item Account for the prior period
period
1.Cash from operating activities
Cash received from sale of goods or Providing of
599,345,378.91 701,385,036.16
services
Refund of taxes and fares 129.17
Other cash received relating to operating activities 1,583,863.47 4,955,678.49
Sub-total of cash inflows 600,929,242.38 706,340,843.82
Cash paid for goods and services 374,127,409.24 385,265,879.81
Cash paid to or on behalf of the employees 139,776,818.16 147,731,859.49
Tax payments 18,316,626.33 34,630,453.11
Other cash paid relating to operating activities 55,546,990.88 81,176,929.37
24
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-yearal Report
Sub-total of cash outflows 587,767,844.61 648,805,121.78
Net cash flows from operating activities 13,161,397.77 57,535,722.04
2.Cash flows from investing activities
Cash received from return of investment 240,000.00
Cash received from investment incomes
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets
Proceeds from sale of subsidiaries and other
operating units
Other cash received relating to investing activities
Sub-total of cash inflows 240,000.00
Cash paid to acquire fixed assets, intangible assets
5,168,003.59 32,228,548.92
and other long-term assets
Cash paid to acquire investment 11,250,000.00
Net cash used in acquiring subsidiaries and other
operating units
Other cash paid relating to investing activities
Sub-total of cash outflows 16,418,003.59 32,228,548.92
Net cash flows from investment activities -16,418,003.59 -31,988,548.92
3.Cash flows from financing activities
Cash received from absorbing investment
Including: Cash received from increase in minority
interest
Proceeds from borrowings 447,579,700.00 338,000,000.00
Other proceeds relating to financing activities
Sub-total of cash inflows 447,579,700.00 338,000,000.00
Repayment of borrowings 488,000,000.00 299,322,611.11
Distribution of dividends or profits & interest
17,741,736.11 17,553,224.13
expenses
Including: dividends or profit paid to minority interest
Cash paid for other financing activities
Sub-total of cash outflows 505,741,736.11 316,875,835.24
Net cash flows from financing activities -58,162,036.11 21,124,164.76
4. Effects of foreign exchange rate changes on
218,699.83 1,163,753.62
cash
5.Net increases in cash and cash equivalents -61,199,942.10 47,835,091.50
Add: cash and cash equivalent, at the beginning of
135,518,792.14 56,478,876.74
year
6.Cash and cash equivalent at the end of the
74,318,850.04 104,313,968.24
year
25
Wafangdian Bearing Co., Ltd（Wazhou B） 2014 Mid-year Report
7. Consolidated Sheet Of Changes In Shareholder’s Equity
Unit: RMB Yuan
Amount in current period
Owner’s equity attributable to parent company
Minority
Item less： General
Capital Capital public Surplus public Undistributed shareholders’ Owner’s equity
treasure provision for Others
stock reserves reserves profits equity
stock risk
1.Balance at the end of last 402,600,0
485,691,050.47 131,442,909.11 362,111,029.14 1,381,844,988.72
year 00.00
Add: changes in
accounting policies
Changes in previous
errors
Others
2.Balance at the beginning 402,600,0
485,691,050.47 131,442,909.11 362,111,029.14 1,381,844,988.72
of this year 00.00
3. The changes in this year
-59,587,254.16 -59,587,254.16
（decrease with“-”）
(1) Net profits -59,587,254.16 -59,587,254.16
(2) Other comprehensive
returns
Total (1) and (2)
(3) The assets invested or
returned by the owners
1) capital invested by
owners
2)The amount of share
payment recorded owner’s
equity
3) others
(4）Profits distribution
1)Provision for surplus
public reserves
2)provision for general
risks
3)distribution for
owner(shareholders)
26
Wafangdian Bearing Co., Ltd（Wazhou B） 2014 Mid-year Report
4)others
(5）interior transference of
owner’s equity
1)capital (capital
stock)transferred by the
capital public reserves
2)capital (capital
stock)transferred by the
surplus public reserves
3)loss offset by the surplus
public reserves
4)others
4. Balance at the end of 402,600,0
485,691,050.47 131,442,909.11 302,523,774.98 1,322,257,734.56
the current period 00.00
Unit: RMB yuan
Amount in previous period
Owner’s equity attributable to parent company
Minority
less： General
Item Capital Capital public Surplus public Undistributed shareholders’ Owner’s equity
treasure provision for Others
stock reserves reserves profits equity
stock risk
1.Balance at the end of 402,600,0
488,805,548.36 131,442,909.11 482,117,978.03 1,504,966,435.50
last year 00.00
Add: changes in
accounting policies
Changes in previous
errors
Others
2.Balance at the 402,600,0
488,805,548.36 131,442,909.11 482,117,978.03 1,504,966,435.50
beginning of this year 00.00
3. The changes in this
-3,114,497.89 -120,006,948.89 -123,121,446.78
year（decrease with“-”）
(1) Net profits -3,114,497.89 -103,902,948.89 -107,017,446.78
(2) Other comprehensive
returns
Total (1) and (2)
(3) The assets invested or
returned by the owners
27
Wafangdian Bearing Co., Ltd（Wazhou B） 2014 Mid-year Report
1) capital invested by
owners
2)The amount of share
payment recorded
owner’s equity
3) others
(4）Profits distribution -16,104,000.00 -16,104,000.00
1)Provision for surplus
public reserves
2)provision for general
risks
3)distribution for
-16,104,000.00 -16,104,000.00
owner(shareholders)
4)others
(5）interior transference of
owner’s equity
1)capital (capital
stock)transferred by the
capital public reserves
2)capital (capital
stock)transferred by the
surplus public reserves
3)loss offset by the
surplus public reserves
4)others
4. Balance at the end of 402,600,0
485,691,050.47 131,442,909.11 362,111,029.14 1,381,844,988.72
the current period 00.00
8. Sheet Of Changes In Shareholder’s Equity Of Parent Compamy.
Unit: RMB yuan
Amount in current period
Owner’s equity attributable to parent company Owner’s equity
Item less： General
Capital public Surplus public Undistributed
Capital stock treasure provision for
reserves reserves profits
stock risk
1.Balance at the end of 402,600,000.0
485,678,443.26 131,442,909.11 350,783,815.44 1,370,505,167.81
last year 0
Add: changes in
accounting policies
28
Wafangdian Bearing Co., Ltd（Wazhou B） 2014 Mid-year Report
Changes in previous
errors
Others
2.Balance at the 402,600,000.0
485,678,443.26 131,442,909.11 350,783,815.44 1,370,505,167.81
beginning of this year 0
3. The changes in this
-49,671,382.73 -49,671,382.73
year（decrease with“-”）
(1) Net profits -49,671,382.73 -49,671,382.73
(2) Other
comprehensive returns
Total (1) and (2)
(3) The assets invested
or returned by the
owners
1) capital invested by
owners
2)The amount of
share payment
recorded owner’s equity
3) others
(4）Profits distribution
1)Provision for surplus
public reserves
2)provision for general
risks
3)distribution for
owner(shareholders)
4)others
(5）interior transference
of owner’s equity
1)capital (capital
stock)transferred by the
capital public reserves
2)capital (capital
stock)transferred by the
surplus public reserves
3)loss offset by the
surplus public reserves
29
Wafangdian Bearing Co., Ltd（Wazhou B） 2014 Mid-year Report
4)others
4. Balance at the end of 402,600,000.0
485,678,443.26 131,442,909.11 301,112,432.71 1,320,833,785.08
the current period 0
Unit: RMB yuan
Amount in last period
Owner’s equity attributable to parent company
Item less： General
Capital public Surplus public Undistributed Owner’s equity
Capital stock treasure provision for
reserves reserves profits
stock risk
1.Balance at the end of 402,600,000.0
485,678,443.26 131,442,909.11 542,374,627.44 1,562,095,979.81
last year 0
Add: changes in
accounting policies
Changes in previous
errors
Others
2.Balance at the 402,600,000.0
485,678,443.26 131,442,909.11 542,374,627.44 1,562,095,979.81
beginning of this year 0
3. The changes in this
-191,590,812.00 -191,590,812.00
year（decrease with“-”）
(1) Net profits -175,486,812.00 -175,486,812.00
(2)Other
comprehensive returns
Total (1) and (2)
(3) The assets invested
or returned by the
owners
1) capital invested by
owners
2)The amount of
share payment
recorded owner’s equity
3) others
(4）Profits distribution -16,104,000.00 -16,104,000.00
1)Provision for surplus
public reserves
30
Wafangdian Bearing Co., Ltd（Wazhou B） 2014 Mid-year Report
2)provision for general
risks
3)distribution for
-16,104,000.00 -16,104,000.00
owner(shareholders)
4)others
(5）interior transference
of owner’s equity
1)capital (capital
stock)transferred by the
capital public reserves
2)capital (capital
stock)transferred by the
surplus public reserves
3)loss offset by the
surplus public reserves
4)others
4. Balance at the end of 402,600,000.0
485,678,443.26 131,442,909.11 350,783,815.44 1,370,505,167.81
the current period 0
31
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
III. General information
Wafangdian Bearing Company Limited (the “Company”) is a joint stock limited company established in
the People’s Republic of China (the “PRC”) on 16 July 1997. 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 29 Feburary 1997.
The addresses of the registered office and principal place of business of the Company are No.1, Phrase
1, Gongji Street, Wafangdian North, Liaoning Province, and the PRC.
The Company is principally engaged in the manufacturing and sale of bearing products, engineering
equipment, automobile spare parts and relating products.
The Company together with its subsidiaries is collectively referred to as the “Group”.
IV. Basis for the preparation of financial statements
1 Basis for the preparation of financial statements
The Group prepares the financial statements on the basis of going concern and actual transactions and
events, and in accordance with the Accounting Standards for Business Enterprises issued by the
Ministry of Finance of the People’s Republic of China, and based on the accounting policies and
estimates in the note 4 ‘Significant accounting policies, accounting estimates and method for
preparation of consolidated financial statements’.
v. Significant accounting policies, accounting estimates and method for preparation of
consolidated financial statements
1 Complying with Accounting Standard for Business Enterprise
The financial statements are prepared by the Group according to the requirements of Accounting
Standard for Business Enterprise, 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
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Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Normal operating cycle refers to the duration 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 Recording basis and pricing principle
The accrual basis shall be adopted for accounting treatment to follow the historical cost method, except
that the financial assets held for trading and sale are measured at fair value.
6 Business combination
Business combination refers to transaction or event bringing together two or more separate enterprises
into one reporting entity. The Group should recognize the acquired assets and liabilities at the
combining date or acquisition date. The combining date or acquisition date is the date when the Group
acquired actually acquiree and combined party.
The assets and liabilities that the combining party obtains in a business combination under the same
control should be measured on the basis of their carrying amount in the combined party 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.
For a business combination not under same control, 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 acquiree. The difference when combination cost exceeds
the fair value of identifiable net assets of acquiree should be recognized as goodwill. If the combination
cost is less than the he fair value of identifiable net assets of acquiree, the difference should be
recognized as current profit or loss.
7 Method of preparation of consolidated financial statements
(1) Recognition principle of scope of consolidation
Scope of consolidated financial statements should include all subsidiaries of the parent and the special
purpose entities.
(2) Accounting method of consolidated financial statements
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Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
The Group’s consolidated financial statements had been prepared in accordance with and related regulations.
All material intragroup transaction and balance had been eliminated in full. The parts of subsidiaries’
equity non-attributable to parent company shall be as minority interest presented in the in the
consolidated balance sheet within equity.
Where there are inconsistent accounting policies or accounting period, when preparing the consolidated
financial statements, the Group shall adjust the subsidiaries’ financial statements in accordance with the
Group’s accounting policies and accounting period.
For the subsidiary obtained under different control, when preparing the consolidated financial
statements, the Group shall adjust the separate financial statements based on the fair value of
identifiable net assets at the purchase date; for the subsidiaries combined by the Group under the same
control, regard the subsidiaries that they have been existing since the beginning of the period, and the
assets, liabilities, operation performance and cash flows shall be consolidated into the financial
statements of the beginning of the combination period according to their original book value.
8 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.
9 Translation of foreign currency
(1) Foreign currency transaction
Foreign currency transactions are translated at the spot exchange rate issued by People’s 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. The foreign currency non-monetary items recorded at fair value are translated at the
exchange rate issued on the date of fair value recognized. Exchange differences are charged as profit
and loss of change of fair value. The foreign currency non-monetary items recorded at historical cost
are translated at the exchange rate issued on the date when the transaction incurs, and don’t change
the RMB amount.
(2) Translation of foreign currency financial statements
34
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
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 ower’s equity item. For the
foreign currency monetary items that form substantially the oversea business net investment, their
exchange difference of movement of exchange rate should be presented separately as translation
difference of foreign currency financial statement under the ower’s equity item when prepare the
consolidated financial statements. When disposing an overseas business, the Group should shift the
translation difference of foreign currency financial statement related to the overseas business into the
disposal profits and losses of current period. 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.
10 Financial assets and financial liabilities
(1) Financial assets
1)Classification
The Group classifies its financial assets in the following categories: at fair value through profit or loss,
loans and receivables, held-to-maturity financial assets and available-for-sale. The classification
depends on the purpose for which the financial assets were acquired. Management determines the
classification of its financial assets at initial recognition.
a)Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are financial assets held for trading. A financial
asset is classified in this category if acquired principally for the purpose of selling in the short term.
Derivatives are also categorised as held for trading unless they are designated as hedges. Assets in
this category are classified as current assets if expected to be settled within 12 months; otherwise,
they are classified as non-current.
b)Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market. They are included in current assets, except for maturities greater
than 12 months after the reporting period, which are classified as non-current assets.
c)Held-to-maturity financial assets
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Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable
payments and fixed maturities that the Group s management has the positive intention and ability
to hold to maturity. If the Group were to sell other than an insignificant amount of held-to-maturity
financial assets, the whole category would be tainted and reclassified as available for sale.
Held-to-maturity financial assets are included in non-current assets, except for those with maturities
less than 12 months from the end of the reporting period, which are classified as current assets.
d)Available-for-sale financial assets
Available-for-sale financial assets are non-derivatives that are either designated in this category or
not classified in any of the other categories. They are included in non-current assets unless the
investment matures or management intends to dispose of it within 12 months of the end of the
reporting period.
2)Recognition and measurement
Financial assets are recognized at fair value on the balance sheet when the Group becomes a party
to the contractual provisions of the financial instrument. Transaction costs of financial assets carried
at the fair value through profit or loss are expensed in the income statement;Transaction costs of
other financial assets are included in financial assets at initial recognition.
Available-for-sale financial assets are subsequently measured at fair value. Investments inequity
instruments are measured at cost when they do not have a quoted market price in an active market
and whose fair value cannot be reliably measured. Loans and receivables are measured at
amortised cost using the effective interest method.
A gain or loss arising from change in fair value of an available-for-sale financial asset is recognised
directly in equity, except for impairment losses and foreign exchange gains and losses arising from
the translation of monetary financial assets. When such financial asset is derecognised, the
cumulative gain or loss previously recognised in equity is recognised in income statement. Interest
on available for sale debt instrument, calculated using effective interest method, and cash dividends
declared by the investee on available-for-sale equity instruments are recognised as investment
income in income statement.
3) Impairment of financial assets
36
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
The Group assesses the carrying amount of financial assets other than financial assets at fair value
through profit or loss at each balance sheet date. If there is objective evidence that the financial
asset is impaired, the Group shall determine the amount of any impairment loss accounts.
If an impairment loss on a financial asset carried at amortized cost has been incurred, the amount of
loss is measured at the difference between the asset’s carrying amount and the present value of
estimated future cash flows (excluding future credit losses that have not been incurred). If there is
objective evidence that the value of the financial asset recovered and the recovery can be related
objectively to an event occurring after the impairment was recognized, the previously recognized
impairment loss is reversed and the amount of reversal is recognized in income statement.
If objective evidence shows that impairment for available-for-sale financial assets will occur,the
cumulative loss arising from the decline in fair value that had been recognized directly in equity is
removed from equity and recognized as impairment loss. For an available for sale debt instrument, if
there is objective evidence that the value of the financial asset recovered and the recovery can be
related objectively to an event occurring after the impairment was recognized, the previously
recognized impairment loss is reversed and the amount of reversal is recognized in income
statement. For an available for sale equity instrument, if there is objective evidence that the value
recovered and the recovery can be objectively related to an event occurring after the impairment
loss recognized, the previously recognized impairment loss is reversed and directly recognized in
equity.
4)Derecognizing of financial assets
Financial assets are derecognized when: i) the contractual rights to receive the cash flows from the
financial assets have expired; or ii) all substantial risks and rewards of ownership of the financial
assets have been transferred; or iii) the control over the financial asset has been waived even if the
Group does not transfer or retain nearly all of the risks and rewards relating to the ownership of a
financial asset.
On derecognition of a financial asset, the difference between the carrying amount and the aggregate
of consideration received and the accumulative amount of changes of fair value originally recorded
in the owner’s equity is recognised in the income statement.
(2) Financial liabilities
The financial liabilities are classified into the financial liability at fair value through profit or loss and other
financial liability for the initial recognition.
37
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
The financial liabilities at fair value through profit or loss include the financial liabilities held for trading
and the designated financial liabilities at fair value through profit or loss when initial recognized. For this
kind of financial liabilities should be measured at fair value, variation of fair value should be recorded
into the current profit or loss.
Other financial liabilities should be subsequently measured at amortization cost by adopting actual
interest rate method.
(3) Fair value measurement of financial assets and liabilities
a) If the market for a financial instrument is active, an entity establishes fair value by using the quoted
price in the active market. In the active market, the Group measures the fair value of its holding financial
assets and contingent financial liabilities by using the current quoted price; the Group measures the fair
value of its contingent financial assets and holding financial liabilities by using the current quoted price.
If there are no current quoted prices for the financial assets and liabilties, and no significant change in
the economic environment after the settlement date, the quoted prices of the recent transactions should
be used to measure the fair value of the financial assets and liabilities.
b) If the market for a financial instrument is not active, an entity establishes fair value by using a
valuation technique. Valuation techniques include using recent arm’s length market transactions
between knowledgeable, willing parties, if available, reference to the current fair value of another
instrument that is substantially the same, discounted cash flow analysis and option pricing models.
11 Provision for bad debts of receivables
The Group shall review the carrying amount of receivables fully at the balance sheet date. The Group
shall calculate the full provision for bad debts for the following receivables: debtor has been log-out,
bankruptcy, minus net asset, significant poor cash flow and significant nature disaster leads to
discontinue production and the debtors could not pay for the debts within the foreseeable time . Other
solid evidences indicates that the receivables cound not be paid or be of a slim chance.
The allowance method is applied to the potential loss of bad debt. The Group should make the
impairment test separately or in combination and accure the bad debt provisions which shall be
recorded into current profit or loss at the end of the period. If there is defined evidence for the
receivables not to or not likely to be received, which shall be recognized as the loss of bad debt and
write off the accrued bad debts provisions after going through the approval procedure of the Group.
(1) Individually significant amounts of accounts receivable accrued bad debt provision as per portfolio
Judgment basis or amount standards The receivables with more than RMB 3 million individual
of individually significant amounts amount shall be recognized as the significant receivables;
The accruing method of the The bad debt provisions shall be accrued based on the
receivables with individually significant difference between current value of future cash flow and the
amounts carrying amounts.
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Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
(2) Accounts receivable accrued bad debt provision by portfolio
The basis of portfolio
Use the accounting aging of the receivables as the credit risk
Accounting aging
characteristics to classify the portfolio
Use the amount characteristics of the receivables , if the
Related parties transaction party is related parties characteristics need to
classify the portfolio
Use the amount characteristics of the receivables, the credit of
transaction party, the nature of the amounts and the
Risk-free
safeguard mechanism of transaction as characteristics to
classify the portfolio
1) The percentage of provision for bad debts based on the age of receivables as followings:
Accounting aging Accrual percentage of the Accrual percentage of other
receivables (%) receivables (%)
Within 1 year 1 1
1-2 years 5 5
2-3 years 20 20
Over 3 years 50 50
Related parties Accrue the bad debt provision by individual identification method
Risk-free Accrue the bad debt provision by individual identification method
2) The other methods is applied to actuating of bad debts provision
(3) Individually insignificant amount accounts receivable but accrued bad debt provision as per portfolio
The individual amount is not significant, but the accrued bad
Accrual reason debt provision on the basis of portfolio can not reflect its risk
characteristic
The bad debt provisions should be accrued based on the
Accrual method difference between current value of future cash flow and the
carrying amount.
12 Inventories
Classification of inventory: Inventories are classified as raw material, wrappage, low-valuable
consumable, working-in-progress, and finished goods etc.
39
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Pricing of inventories received and sent out: The inventories are processed on perpetual inventory
system, purchased and stored based on their standard cost. The raw materials are priced daily on their
standard costs. The differences between the standard and actual costs is recorded into the costs of
materials and for sending out according to proportion of storage and sending out of materials, and
adjust the planned costs of raw material into actual costs. The working-in-progress finished goods are
priced on their standard costs; the differences between the standard and actual costs are recorded into
the costs of working-in-progress and finished goods according to the receiving and sending out
proportion, and finaly adjust the planned costs into actual costs.
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 classify 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. The net realizable value of inventories held for execution of
sale contracts or labor contracts shall be calculated based on the contract price. If the quantities of
inventories in the Group are more than quantities if inventories subscribed in the sales contracts, the net
realizable value of the excessive part of the inventories should be calculated based on the general
selling price.
13 Long-term equity investment
Long-term equity investments include the equity investments which the Group can control, joint control
or have significant influence on the investee, or the Group can not control, joint control or significant
influence on the investee and there is no offer in the active market, fair value can not be reliably
measured.
Joint control refers to the control over an economic activity in accordance with contract. Any party of
joint venture can not separately control the business activity of joint venture. The decision related to
principal operating activities need unanimous consent from any party
Significant influence refers to the power to participate in making decisions on the financial and operating
policies of investee, but not to control or do joint control together with other parties over the formulation
40
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
of these policies. Significant influence confirm according to the Group holds the over 20% (including
20%) but lower than 50% voteing shares. Unless there is evidence which indicate the Group can not
participate in the decision of production and operating under the conditions above.
The initial cost of long term equity investments formed in the merger of enterprise under the same
control shall be recognized at the carry amounts of equity of the merged enterprise. The initial cost of
long term equity investments acquired in the merger of enterprise under the different control shall be
recognized at fair value of the assets paid, liabilities risen or charged, and equity securities issued.
Besides the long-term equity investments acquired by the merger of enterprises, the initial cost of a
long-term equity investment obtained by other means shall be ascertained in accordance with the
provisions as follows:
(1) The initial cost of a long-term equity investment obtained by making payment in cash shall be the
purchase cost which is actually paid. The initial cost consists of the expenses directly relevant to the
obtaining of the long-term equity investment, taxes and other necessary expenses.
(2) The initial cost of a long-term equity investment obtained on the basis of issuing equity securities
shall be the fair value of the equity securities issued.
(3) The initial cost of a long-term equity investment of an investor shall be the value stated in the
investment contract or agreement except the unfair value stated in the contract or agreement.
(4) The initial cost of a long-term investment obtained by the exchange of non-monetary assets and the
initial cost of a long-term equity investment obtained by debts restructuring shall be ascertained in
accordance with related Accounting Standards for Enterprises.
For the long-term equity investment in subsidiaries of the Group shall be measured in accordance with
the cost method, and shall be adjusted when preparing consolidated financial statements in accordance
with equity method. For the long-term equity investment of joint venture shall be measured in
accordance with equity method.
For the long-term equity investment of the investing enterprise that does not do joint control or does
not have significant influences on the invested entity, and has no offer in the active market and its fair
value cannot be reliably measured should be measured in accordance with cost method. For the
long-term equity investment of the investing enterprise that does not do joint control or does not have
significant influences on the invested entity, and has offer in the active market and its fair value can be
reliably measured should be measured as the assets available for sale.
14 Fixed asset
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Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
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 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:
Recognition criteria of fixed assets: Fixed assets are defined as the tangible assets which are held for
the purpose of producing goods, Provideing services, leasing or for operation & management, and have
more than one year of useful life, and whose unit price is over RMB2,000.
Classification of fixed assets: Building, machinery, transportation equipment, electronic equipment and
others.Measurement of fixed assets: Initial measurement of fixed assets shall be conducted on fixed
assets according to the actual cost when obtained, including, the cost of purchased fixed asset including
purchase price, value added tax, duty and other related tax and fee, other expenses that bring the fixed
asset to the expected conditions for use and that may be relegated to the fixed asset. The cost of a
self-constructed fixed asset shall be formed by the necessary expenses incurred for bringing the asset
to the expected conditions for use. The cost of fixed asset which was invested by investor should be
recorded in accordance with the price stipulated in the contract or agreement, other than those of unfair
value as stipulated in the contract or agreement. The cost of fixed assets which is obtained by financial
leasing should be measured at the lower one of fair value and the minimum lease payment in the
beginning of lease.
Depreciation method: the Group withdraws depreciation for all fixed assets except for the fixed assets
which had been fully depreciated and are still being used. The Group withdraws depreciation by
adopting straight-line method and depreciation rate of unit item on monthly basis, and brings it cost or
expenses in current period. Estimated net residual value rate is 3%, useful life, depreciation rate as
follows:
Estimated
Useful net
Category life(year residual Annual depreciation rate
s) value rate
(%)
Housing and Buildings
Including: Buildings 15 3 6.47
42
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Housing for productive 30 3 3.23
Housing for non-productive 35 3 2.77
Machinery equipments 10-15 3 6.47～9.70
Transportation equipments 6 3 16.17
Electronic equipments
Including: Computer 4 3 24.25
General testing instruments 7 3 13.86
Specialized electronic equipments 8 3 12.13
Automated controlling equipments 8 3 12.13
Automated controlling meters 8 3 12.13
Others equipments
Including: Industrial kiln 7 3 13.86
Tools & other production tools 9 3 10.78
Transmission equipments 15 3 6.47
Non-operational equipments and tools 18 3 5.39
The Group 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.
The Company should derecognized fixed asset when the fixed asset has been disposed, or the fixed
assets can’t generate any future economic benefit through using and disposal. The amount that income
resulting from disposal of fixed asset deducts fixed asset’s book value and relevant tax shall be
recorded in the profit and loss for the current period.
15 Construction in progress
Measurement of CIP: Construction-in-progress is recognized at actual cost. Self-construction project is
recognized at the cost of material, labour cost and construction expenses. Contractual construction is
recognized at project price which should be paid. Installed construction is recognized at the value of
equipment, installation and assembly cost. Besides above, the cost of CIP comprises borrowing cost
and profit and loss resulting from foreign exchange.
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.
16 Borrowing costs
43
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Recognition principles on capitalization of borrowing cost: The Group should capitalizes the borrowing
cost directly attributable to the acquisition, construction or production of a qualifying asset and record
borrowing cost into cost of related asset. The Group should recognize the other borrowing cost as the
current expense and charged it as profit and loss of current period. A qualifying asset refers to fixed
asset, investment property and inventory need be constructed for so long time to its intended use or
sale.
Duration of capitalization of borrowing cost: When expenditures and borrowing cost are being incurred,
and activities that are necessary to put the asset available for use or sale are in progress, the
capitalization of borrowing costs as part of the cost of a qualifying asset should commence.
Capitalization of borrowing costs should be suspended during extended periods in which active
development is interrupted and interruption period last for over 3 month. The borrowing cost incurred
during the period should be recognized as expenses and recorded into the profit and loss in the current
period. When all the activities for bringing the asset to its intended use or sale are completed, the
capitalization of borrowing costs ceases, and the borrowing costs should be recognized as an expense
in the period incurred.
Measurement of borrowing cost: As for specifically borrowed loans for the acquisition and construction
or production of assets eligible for capitalization, the to-be-capitalized amount of interests shall be
determined as the difference of the actual cost incurred of the specially borrowed loan at the present
period minus the income of interests earned on the unused borrowing loans as a deposit in the bank or
as a temporary investment. Where a general borrowing is used for the acquisition and construction or
production of assets eligible for capitalization, the Group shall calculate and determine the
to-be-capitalized amount of interests on the general borrowing by multiplying the weighted average
asset disbursement of the part of the accumulative asset disbursements minus the general borrowing
by the capitalization rate of the general borrowing used. The capitalization rate shall be calculated and
determined at the weighted average interest rate of the general borrowing.
17 Intangible assets
Measurement of 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.
Amortization method and period: The Group shall amortize land use right on the basis of its useful life
by adopting straight line method from the time of acquiring. ERP system software and other intangible
assets shall be amortized on the basis of shorter of estimated useful life, stated beneficial year in the
44
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
contract, and legal available year. The amortization amount should be recorded into the cost or expense
of relevant in the current period.
The Group shall check the estimated useful life and amortization method of intangible assets with
limited useful life at the end of each year, if any change has been made, it shall be adjusted. The Group
shall check the estimated useful life of intangible assets with uncertain useful life during the each
accounting period. If there are evidences to prove the useful life of intangible assets is limited, the
Group shall estimate the useful life and amortize the intangible assets within estimated useful life.
18 Impairment of non-financial asset
The Group checks the long-term equity investment for its subsidiaries, association and joint venture,
fixed asset, construction-in-progress, intangible asset and others on each balance sheet date. There
may be an impairment of asset when one of following indications occurs. The Group should test
impairments. The Group tests the impairment of goodwill, intangible asset with uncertain useful life on
the end of every year. When it is difficult to measure the recoverable amount of asset, it should measure
the recoverable amount of asset on the basis of asset group.
After impairment test, if the book value exceeds the recoverable amount of the asset, 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. The recoverable amount of asset refers to the higher one of
the net amount of the fair value of asset minus disposal expense and the present value of estimated
future cash flow of asset.
Indications of impairment as follows:
(1) During the period, a fair value of the asset in the market has declined significantly, which exceeds
the expected decline as time passing or normal use;
(2) Significant changes with an adverse effect on the Group have taken place during the period, or will
take place in the near future, in the technological, market, economic or legal environment in which the
entity operates or in the market to which an asset is dedicated;
(3) Market interest rates or other market rates of return on investments have increased during the
period, and those increases are likely to affect the discount rate applied in calculating an asset's value in
use and decrease the asset's recoverable amount materially;
(4) Evidence is available of obsolescence or physical damage of an asset;
(5) The asset has been idle or is becoming idle, discontinued, or plans to dispose of an asset before
the previously expected date;
45
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
(6) Evidence is available from internal reporting that indicates that the economic performance of an
asset is, or will be, worse than expected; and
(7) Other evidence indicates impairment of asset.
19 Long-term deferred expenses
Long-term deferred 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 (no including 1 year). The
expenses should be amortized averagely over the beneficial period. If the deferred expense can not
take benefit for the future accounting period, the unamortized balance of the deferred expenses should
be transferred into the current profit or loss.
20 Employee benefits
Employee compensation comprises short-term benefit, post-employment benefit, termination benefit
and other long-term employee’s benefit.
Employee’s payables 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 schemeand 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.
Termination benefits are employee benefits payable as a result of either an entity’s decision to terminate
an employee’s employment before the contract due date or an employee’s decision to accept voluntary
redundancy in exchange for those benefits. An entity shall recognize the termination benefits as a
liability and an expense at the earlier date when the entity cannot unilateral withdraw the termination
benefits due to employment termination plan or due to redundancy suggestion, or when the entity can
recognize the restricting cost or expense arising from paying termination benefits. For the termination
benefits that will not be expected to be fully paid within twelve months after the end of the reporting
period, it shall be accounted as other long-term employee benefit. For employee internally retired
informally, termination benefits accounting shall be applied. The Group shall recognized the planned
wages and social insurance of retired employee in the current profit and loss account when provision
46
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
conditions are met, for the period since the termination of employee service rendered until the formal
retirement date.(termination benefit).
Other long-term employee benefit provided by the Group, shall be accounted for as defined contribution
plan if the defined contribution plan are met, otherwise shall be accounted for as defined benefit plan.
21 Contingent liabilities
The obligation pertinent to a contingency shall be recognized as an estimated debt when the following
conditions are satisfied simultaneously:
(1) The obligation is a current obligation of the Group;
(2) It is likely to cause any economic benefit to flow out of the Group as a result of performance of the
obligation; and
(3) The amount of the obligation can be measured reliably.
The estimated debts shall be initially measured in accordance with the best estimate of the necessary
expenses for the performance of the current obligation, and the Group shall take into full consideration
of the risks, uncertainty, time value of money, and other factors pertinent to the contingencies. If the
time value of money is of great significance, the best estimate amounts shall be determined after
discounting the relevant future outflow of cash. The Group shall check the book value of the estimated
debts on the balance sheet date. If there is any exact evidence indicating that the book value cannot
really reflect the current best estimate amounts, the Group shall adjust the book value in accordance
with the current best estimate amounts.
22 Principle of recognition of revenue
The revenue of the Group is mainly from selling goods, providing labour services and abalienating the
right of use assets. Recognition standards for revenue are as below:
(1) Recognition of revenue from selling good:
1) The significant risks and rewards of ownership of the goods have been transferred to the buyer;
2) The Group remains neither continuous management right that usually keeps relation with the
ownership nor effective control over the sold goods;
3) The amount of revenues can be measured reliably;
4) The relevant economic benefits are likely to flow into the Group; and
47
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
5) The incurred cost or intended cost can be measured reliably.
(2) Recognition of revenue from providing labour services:
1) Total revenue and total cost can be measured reliably; the relevant economic benefits are likely to
flow into the Group; and the stage of completion can be confirmed reliably;
2) If the Group can, on the date of the balance sheet day, reliably estimate the outcome of a transaction
concerning the labour services it provides, it shall recognize the revenue from providing services
employing the stage of completion method. If the outcome can not be estimated reliably and incurred
cost can be offset, the revenue should be recognised by the compensation. When the standards can not
be satisfied, the revenue should not be recognised, and the incurred cost should be recorded into the
current profit and loss.
(3) Revenue from abalienating the use right of use assets
The revenue from abalienating of use right of assets shall be recognized, when the relevant economic
benefits are likely to flow into the Group, and the amount of revenues can be measured reliably.
23 Government grants
A government subsidy of the Group shall be recognized if the Group can meet the conditions for the
government subsidy and also can obtain the government subsidy. If a government subsidy is a
monetary asset, it shall be measured in the light of the received or receivable amount. If a government
subsidy is a non-monetary asset, it shall be measured at its fair value; if its fair value cannot be obtained
in a reliable way, it shall be measured at its nominal amount (RMB 1).
The government subsidies pertinent to assets shall be recognized as deferred income, equally
distributed within the useful lives of the relevant assets, and included in the current profits and losses.
The government subsidies pertinent to incomes shall be treated respectively in accordance with the
indications as follows: (1) those subsidies used for compensating the related future expenses or losses
of the Group shall be recognized as deferred income and shall included in the current profits and losses
during the period when the relevant expenses are recognized; or (2) those subsidies used for
compensating the related expenses or losses incurred to the Group shall be directly included in the
current profits and losses.
24 Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liability should be recognized at the differences (taxable temporary
differences) between the tax base of an asset or liability and its carrying amount. The Group shall
recognize the deferred income tax assets arising from a deductible temporary difference to the extent of
48
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
the amount of the taxable income which it is most likely to obtain and which can be deducted from the
deductible temporary difference. At the balance sheet date, deferred tax asset and deferred tax liability
should be measured at applicable tax rate.
The Group shall recognize the deferred tax assets arising from a deductible temporary difference to the
extent of the amount of the taxable income which is most likely to obtain which can be deducted from
the deductible temporary difference. For the deferred tax assets which already have been recognized,
where there is any evidence showing that the Group is probably unable to acquire sufficient amount of
taxable income tax in a future period to offset against the deductible temporary difference, the book
value of the deferred tax assets shall be deducted. Where it is likely to acquire sufficient amount of
taxable income tax, the amount deducted shall be reversed.
25 Lease
The leases of the Group refer to operating lease.
The rents from operating leases shall be recorded by the lessee into the relevant asset costs or the
profits and losses of the current period by using the straight-line method over each period of the lease
term.
26 Accounting treatment method of income tax
The Group shall recognize income tax by balance sheet liability method. The income taxes of the
current period and deferred income tax of the Group shall be treated as income tax expenses or
incomes, and shall be recorded into the current profits and losses, excluding the income taxes incurred
in the following circumstances: (1) the business combination; and (2) the transactions or events directly
recognized as the owner’s equity. The income taxes of the current period and deferred income tax
related to the transactions or events directly recorded as the owner’s equity shall be recorded into the
owner’s equity.
The income tax expenses for the current period the amount payable to the Tax Office which are
calculated and recognized according to the tax law and transactions and events of the current period, i.e.
income taxes payable; the deferred income taxes refer to the differences recognized between the
amounts at the end of the period and amounts recognized originally of deferred tax assets and liabilities
according to the balance sheet liability method.
27 Segment report
Business segment is confirmed in accordance with governance structure, management requests,
internal reporting system, and the Group confirm the report segment on the basis of business segment.
49
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Business segment is a component of the Group that satisfys the following conditions simultaneously:
the component can take revenue and expenses; the management level can appraise the operating
performance of the component in order to allocation of resource and appraise the performance; and the
Group can acquire the financial position, operating performance and cash flow of the component etc.
28 Discontinued operation
Discontinued operation represents the component of the Group that had been disposed or plan to sell,
and the component can be separately divided when operating and preparing financial statements. The
component shall be disposed partly or wholly in accordance with the Group’s plan.
The component of the Group shall be recognized as the component held for selling when satisfying the
conditions as below:
1) The Group had made a decision on disposal of the component;
2) The Group had signed the irrepealably Transfer Agreement with transferee; and
3) The transfer shall be finished within one year.
29. Changes in accounting policies, accounting estimates and correction of previous errors
There are no changes in accounting policies, accounting estimates and correction of previous errors
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 17%，13%，11%，6%，3%
Business tax Revenue from property lease 5%
City construction tax Value-added tax payables, business tax 7%
Enterprise income Current period taxable profit 15%
tax(EIT)
Education surcharge Value-added tax payables, business tax 3%
Local education Value-added tax payables, business tax 2%
surcharge
70% of cost of own property or revenue
Real estate tax 1.2% or 12%
from leasing property
Land use tax Land using right area RMB 6 per square meter
Notes for tax principles with different EIT rate
Tax principles EIT rate
Wazhou Liaoyang Bearing construction Co.,Ltd 25%
Dalian Wazhou Precision Motor Car Bearing Company Limited 25%
50
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Wazhou Precision of Spherical Roller Bearings(Wafangdian)Co., Ltd 25%
2. Tax preference and approval
The company obtained the qualification of high and new technology enterprises at 29Sep2014.The
Certificate number is GF201421200004, and the period of validity is three years.According to the
provisions of the tax law the company can be granted the preferential tax policy of enterprise income
tax rate of 15% in three years.
VII. Notes to consolidated financial statements
1. Cash and cash in bank
Item Closing Balance Opening Balance
Cash on hand 362,559.91 243,292.16
Cash in bank 82,102,998.18 143,155,872.50
Other cash and cash equivalents 40,418,649.36 37,170,000.00
Total 122,884,207.45 180,569,164.66
Notes: the closing balance of other cash and cash equivalents are all security deposits of bank acceptance
notes. Since the liquiditylimitation, this will be deducted from the closing balance.
2 Notes receivable
(1) Category of notes receivable
Items 2015.06.30 2014.12.31
Bank acceptance notes 123,866,155.60 153,691,174.47
Commercial acceptance notes 24,884,977.59 34,426,801.24
Total 148,751,133.19 188,117,975.71
3 Accounts receivable
(1) Category of accounts receivable
Closing Balance
Items Booking balance Provision
Booking balance
Amount % Amount %
Accountsreceivable with
individual significant amount
9,002,676.43 0.70% 9,002,676.43 100.00%
and identification separately
bad debt provision
Accounts receivable identified
bad debt provision based on
1,095,013,331.36 98.20% 51,591,632.28 5.10% 1,043,421,699.08
the characters of credit risk
portfolio
Accountsreceivable with
14,393,660.23 1.10% 14,393,660.23 100.00%
individual insignificant
51
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
amount and identification
separately bad debt provision
Total 1,118,409,668.02 100.00% 74,987,968.94 1,043,421,699.08
(Continued)
Opening balance
Items Booking balance Provision
Booking balance
Amount % Amount %
Accountsreceivable with
individual significant amount
9,002,676.43 0.75% 9,002,676.43 100.00%
and identification separately
bad debt provision
Accounts receivable identified
bad debt provision based on
1,150,173,274.09 98.04% 51,607,095.89 4.60% 1,098,566,178.20
the characters of credit risk
portfolio
Accountsreceivable with
individual insignificant
14,393,660.23 1.20% 14,393,660.23 100.00%
amount and identification
separately bad debt provision
Total 1,173,569,610.75 100.00% 75,003,432.55 1,098,566,178.20
1) Accounts receivable with individual significant amount and identification separately bad debt
provision at the end of June 30,2015
Booking Provision for Provision rate
Company name Reasons for provision
balance bad debts (%)
A/R with over 5 years aging,
A 3,910,007.43 3,910,007.43 100.00%
unlikely to be collected
B 5,092,669.00 5,092,669.00 100.00% Broke down
Total 9,002,676.43 9,002,676.43 — —
2) Accounts receivable accrued the bad debt provisions under accounting aging analysis method
Closing Balance
Aging Accounts Provision for bad Proportion
receivable debts (%)
Within1 year 781,960,815.99 7,819,608.16 1.00%
1 to 2 years 781,960,815.99 7,819,608.16 1.00%
2 to 3 years 130,224,993.28 6,511,249.66 5.00%
Over 3 years 33,379,147.05 6,675,829.42 20.00%
Total 61,169,890.09 30,584,945.04 50.00%
52
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
(2) Bad debt provision accrued and written-off (withdraw)
The bad debt provision has been accrued in the amount 15,463.61Yuan during the report period.
(3) Accounts receivable written off in current period
Item Written-off Amount
Accounts receivable written off 30,927.22
3) Individually insignificant amount accounts receivable but accrued bad debt provision separately at
the end of June 30,2015
4 Advances to suppliers
(1) Aging of advances to suppliers
Items 2015.06.30 2014.12.31
Amount Percentage Amount Percentage (%)
(%)
Within 1 year 29,038,945.60 74.33% 33,178,587.95 75.35%
1 to 2 years 199,880.02 0.51% 6,035,528.97 13.71%
2 to 3 years 5,150,191.83 13.18% 1,013,168.29 2.30%
Over 3 years 4,678,582.27 11.98% 3,803,916.45 8.64%
Total 39,067,599.72 -- 44,031,201.66 --
(2) The top five significant advances to supplierscategorized by debtors
The total amount of top five significant advances to suppliers categorized by debtors is 27,142,499.14
Yuan, taking the parentage of 69.48% of the closing balance of advances to suppliers.
5. Dividends receivable
(1) Dividends receivable
Company Closing Balance Opening Balance
Shanghai ME Mechanical &
Electrical Equipment Chain Co., 240,000.00 240,000.00
Ltd
Total 240,000.00 240,000.00
6 Other receivables
(1) The categories of other receivable
Closing Balance
Items Booking balance Provision
Booking balance
Amount % Amount %
53
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Other receivables
identified bad debt
provision based on the 28,845,229.16 100.00% 1,705,933.04 7.08% 27,139,296.12
characters of credit risk
portfolio
Total 28,845,229.16 100.00% 1,705,933.04 27,139,296.12
(Continued)
Opening Balance
Items Booking balance Provision Booking
Amount % Amount % balance
Other receivables
identified bad debt
provision based on the 20,917,860.26 99.94% 1,705,933.04 12.00% 19,211,927.22
characters of credit risk
portfolio
Total 20,917,860.26 100.00% 1,705,933.04 19,211,927.22
(2) Other receivables accrued the bad debt provisions under accounting aging analysis method
Closing Balance
Aging Provision for Proportion
Other receivables
bad debts (%)
Within 1 year 18,900,125.86 189,001.26 1.00%
1-2 years 1,984,534.70 99,226.74 5.00%
2-3 years 624,907.37 124,981.47 20.00%
Over 3 years 2,585,447.14 1,292,723.57 50.00%
Total 24,095,015.07 1,705,933.04
(3) Other receivables categorized by nature
Nature Closing Balance Opening Balance
Other receivables 28,845,229.16 20,917,860.26
Total 28,845,229.16 20,917,860.26
7 Inventories
(1) Categories of inventories
2015.06.30 2014.12.31
Item Provision Net book Provision for
Cost Cost Net book value
for decline value declines
2,721,438.1 157,762,957. 161,777,520.8
Raw materials 160,396,767.27 3 01 7
2,721,438.13 159,056,082.74
Workingin 180,235,988. 203,865,748.2
180,838,485.71 602,496.86 602,496.86 203,263,251.37
85 3
progress
Finished 104,787,13 772,211,850. 904,774,320.4 104,787,136.4
876,998,986.70 799,987,183.98
6.46 24 4 6
goods
54
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Wrappage 4,093,493.26 4,005,865.39 4,041,348.26 4,041,348.26
1,222,327,732. 108,111,071 1,114,216,66 1,274,458,937 108,111,071.4
1,166,347,866.35
Total 94 .45 1.49 .80 5
Decrease
Items 2014.12.31 Increase 2015.06.30
Reverse Others transferred
Raw materials 2,721,438.13 2,721,438.13
Finished goods 602,496.86 602,496.86
Working in
104,787,136.46 104,787,136.46
progress
Total 108,111,071.45 108,111,071.45
(2) Accrual for provision for decline in the value of inventories
Basis on recognized convertible net
Item Reason for write-off
value
Materials market price at the end of
Raw materials
period
Finished goods Average sale price of similar product
Item 2015.06.30 2014.12.31
Over paid added value tax 14,415,264.11 21,777,741.91
Rental 1,209,038.95 892,113.04
Over paid income tax 1,855,337.56 1,864,330.37
Total 17,479,640.62 24,534,185.32
8 Other current assets
9. Available-for-sale financial assets
(1) Available-for-sale financial assets
Item Closing Balance Opening Balance
Booking Provisio Booking Provisi
Book value Book value
balance n balance on
Available-for
-sale equity 2,000,000.00 - 2,000,000.00 2,000,000.00 - 2,000,000.00
instruments
Measured as
2,000,000.00 - 2,000,000.00 2,000,000.00 - 2,000,000.00
cost method
Total 2,000,000.00 - 2,000,000.00 2,000,000.00 - 2,000,000.00
(2) Available-for-sale financial assets measured at cost method
55
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Proportion Cash
Booking Balance Provision
(%) dividend
Name
Opening Closing Opening Closing
Increase Decrease Increase Decrease
Balance Balance Balance Balance
Shanghai
ME
Mechanical
& Electrical 2,000,000.00 - 2,000,000.00 - - - - 4.76 240,000.00
Equipment
Chain Co.,
Ltd
Total 2,000,000.00 - 2,000,000.00 - - - - 4.76 240,000.00
10 Fixed assets
(1) Fixed assets by categories
Machinery Electronic Other
Item Building Transportation Device Equipment Total
Equipment
1. Initial Cost
(1) Opening 1,053,930,386. 66,357,172.4 176,996,473 1,750,844,261.
431,429,106.06 22,131,123.52
Balance 30 0 .48 76
(2) Increase 4,747,401.21 2,303,048.26 238,483.97 300,859.56 3,495.00 7,593,288.00
1) Purchase 3,523,518.00 470,689.43 0.00 286,791.59 3,495.00 4,284,494.02
2) Transferred
from
1,223,883.21 1,832,358.83 238,483.97 14,067.97 0.00 3,308,793.98
construction-in-
progress
3) Acquired
from business
combination
(3) Decrease 0.00 5,108,719.33 2,236,244.95 99,018.77 210,000.00 7,653,983.05
1) Disposal 0.00 5,108,719.33 2,236,244.95 99,018.77 210,000.00 7,653,983.05
(4) Closing 1,051,124,715. 66,559,013.1 176,789,968 1,750,783,566.
436,176,507.27 20,133,362.54
Balance 23 9 .48 71
2.Accumulated
Depreciation
(1) Opening 51,541,999.3 151,252,942 1,053,503,702.
199,412,319.52 635,511,992.94 15,784,448.29
Balance 2 .74 81
3,129,803.5
(2) Increase 6,909,467.73 30,989,938.11 719,573.95 2,024,743.60 43,773,526.92
3
3,129,803.5
1)Accrued 6,909,467.73 30,989,938.11 719,573.95 2,024,743.60 43,773,526.92
3
2) Other
transfer
56
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
(3) Decrease 0.00 4,325,766.21 1,529,627.13 88,777.58 210,000.00 6,154,170.92
1) Disposal 0.00 4,325,766.21 1,529,627.13 88,777.58 210,000.00 6,154,170.92
4) Closing
Balance
3. Impairment
Reserve
(1) Opening
1,319,560.01 200,000.00 1,159.51 1,520,719.52
Balance
(2) Increase
(3) Decrease 379,369.23 379,369.23
1) Disposal
(4) Closing
940,190.78 200,000.00 1,159.51 1,141,350.29
Balance
4. Book Value
1. Closing 13,081,047.8 22,616,062.
229,854,720.02 388,008,359.61 4,958,967.43 658,519,157.61
book value 5 70
2. Opening 14,815,173.0 25,742,371.
232,016,786.54 417,098,833.35 6,146,675.23 695,819,839.43
book value 8 23
11 Construction in progress
(1) Details of Construction-in-progress
Items 2015.06.30 2014.12.31
Provision Provision
Book
for Book value Book balance for Book value
balance
impairment impairment
M250Grinding
Machine 130,730.53 130,730.53 130,730.53 130,730.53
Improvement
Improvement of
1,191,553.31 1,191,553.31 1,543,757.23 1,543,757.23
maintenance holder
Forked truck 1,739,365.29 1,739,365.29 1,739,365.29 1,739,365.29
Improvement of
6,566,140.27 6,566,140.27 6,836,609.99 6,836,609.99
plant
Installation of super
1,286,701.41 1,286,701.41 1,283,681.73 1,283,681.73
finish machine
Improvement of
finished goods 93,279.09 93,279.09 450,879.09 450,879.09
storage
Dalian industry park
20,488,524.42 20,488,524.42 19,885,742.72 19,885,742.72
project
Crane Project 2,861,844.53 2,861,844.53 2,861,157.05 2,861,157.05
Improvement of
4,439,535.78 4,439,535.78 3,455,196.16 3,455,196.16
second-finished
57
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
products
Computer Project 2,639,066.75 2,639,066.75 875,831.49 875,831.49
Improvement of
precision roller 65,611,355.45 65,611,355.45 57,715,726.04 57,715,726.04
branch
Improvement of
9,854,253.45 9,854,253.45 9,682,989.93 9,682,989.93
liaoyang bearing
Improvementof
5,232,527.30 5,232,527.30 5,061,298.12 5,061,298.12
Amerauto
Improvement of
8,677,857.42 8,677,857.42 9,045,850.67 9,045,850.67
grinding machine
Grinding product
10,352,536.82 10,352,536.82 10,566,935.30 10,566,935.30
line
Improvement of
seven-finished 53,932,642.62 53,932,642.62 45,761,958.46 45,761,958.46
products
Others 10,789,813.59 10,789,813.59 11,670,198.30 11,670,198.30
Heat treatment
5,044,818.67 5,044,818.67 2,723,139.00 2,723,139.00
product line
Digital Boring
1,873,336.12 1,873,336.12 1,873,330.07 1,873,330.07
machine
Improvement of
exploration 345,483.36 345,483.36 345,072.96 345,072.96
machinery
Improvement of
8,477,858.74 8,477,858.74 7,565,073.68 7,565,073.68
special large branch
Improvement of
one-finished 40,040,876.47 40,040,876.47 37,988,266.40 37,988,266.40
products
Instruments 1,230,893.37 1,230,893.37 1,230,893.37 1,230,893.37
Medium sized deep
groove ball bearing 1,712,732.31 1,712,732.31 1,712,732.31 1,712,732.31
product line
Assembling line 1,876,573.24 1,876,573.24 1,875,092.53 1,875,092.53
Ballsurfacebearings new 120,892,317.4
120,892,317.47 119,522,927.09 119,522,927.09
plant 7
387,382,617.7
Total 387,382,617.78 363,404,435.51 363,404,435.51
8
(2) Change in the significant construction in progress
Name Decrease
Opening Transfer
Increase Other Closing
Balance to fixed
decrease Balance
assets
M250Grinding Machine
130,730.53 130,730.53
Improvement
Improvement of maintenance 466,355.2
1,543,757.23 818,559.16 1,191,553.31
holder 4
58
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Forked truck 1,739,365.29 1,739,365.29
Improvement of plant 6,836,609.99 28,026.47 298,496.19 6,566,140.27
Installation of super finish machine 1,283,681.73 3,019.68 1,286,701.41
Improvement of finished goods
450,879.09 157,600.00 200,000.00 93,279.09
storage
602,781.7
Dalian industry park project 19,885,742.72 20,488,524.42
0
Crane Project 2,861,157.05 687.48 2,861,844.53
Improvement of second-finished 984,339.6
3,455,196.16 4,439,535.78
products 2
1,763,235.
Computer Project 875,831.49 2,639,066.75
26
Improvement of precision roller 7,977,748.
57,715,726.04 82,119.21 65,611,355.45
branch 62
173,686.6
Improvement of liaoyang bearing 9,682,989.93
0
2,423.08 9,854,253.45
262,653.8
ImprovementofAmerauto 5,061,298.12 91,424.62 5,232,527.30
0
Improvement of grinding 534,720.9
9,045,850.67 902,714.19 8,677,857.42
machine 4
Grinding product line 10,566,935.30 1,201.63 215,600.11 10,352,536.82
Improvement of seven-finished 8,559,373.
45,761,958.46 388,689.69 53,932,642.62
products 85
Others 11,670,198.30 51,394.10 828,990.61 10,789,813.59
2,461,679.
Heat treatment product line 2,723,139.00 140,000.00 5,044,818.67
67
Digital Boring machine 1,873,330.07 6.05 1,873,336.12
Improvement of exploration
345,072.96 410.40 345,483.36
machinery
Improvement of special large 912,785.0
7,565,073.68 8,477,858.74
branch 6
Improvement of one-finished 2,793,542.
37,988,266.40 724,430.23 16,502.55 40,040,876.47
products 85
Instruments 1,230,893.37 1,230,893.37
Medium sized deep groove ball
1,712,732.31 1,712,732.31
bearing product line
Assembling line 1,875,092.53 1,480.71 1,876,573.24
119,522,927.0 3,032,988. 120,892,317.4
Ballsurfacebearings newplant 1,663,598.30
9 68 7
363,404,435.5 30,560,72 387,382,617.7
Total 3,308,793.98 3,273,748.06
1 4.31 8
12 Intangible assets
Item Land use right ERP software Others Total
1.Initial cost
1). Opening balance 176,189,727.74 5,512,535.93
2).Increase
(1) Purchase
(2)Internaldevelopment
(3) Acquired by
59
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
company combination
3). Decrease
4). Closing balance 176,189,727.74 5,512,535.93
2. Amortization
1). Opening balance 36,599,750.53 4,747,177.01
2).Increase 2,194,753.80 275,626.74
(1)Accrual 2,194,753.80 275,626.74
(2)Transfer into
3). Decrease
4). Closing balance 38,794,504.33 5,022,803.75
3. Provision
for impairment
1). Opening balance
2).Increase
3). Decrease
4). Closing balance
4. Book value
1.Closing Book value 137,395,223.41 489,732.18
2.Opening Book value 139,589,977.21 765,358.92
13 Long-term deferred and prepaid expenses
Amortizatio Other
Item 2014.12.31 Increase 2015.06.30
n decrease
Right to use premise of
657,022.39 33,915.18 623,107.21
Shanghai sales office
Decoration fees 110,832.00 44,334.00 66,498.00
Total 767,854.39 78,249.18 689,605.21
14 Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets without deduction
Item Closing Balance Opening Balance
Deductible Deferredtax Deductible Deferredtax
temporarydifference assets temporary assets
difference
Provision for impairment of
63,685,949.07 10,062,159.26 63,685,949.07 10,062,159.26
assets
Difference due to depreciation
11,940,720.07 1,791,108.01 11,940,720.07 1,791,108.01
of fixed assets
Total 75,626,669.14 11,853,267.27 75,626,669.14 11,853,267.27
60
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
(2) Deferred tax liabilities without deduction
Item Closing Balance Opening Balance
Taxable Deferred tax Taxable Deferred
temporary liabilities temporary tax
difference difference liabilities
Asset evaluation increment
in business combination 7,606,635.67 1,140,995.35 7,606,635.67 1,140,995.35
without the same control
Total 7,606,635.67 1,140,995.35 7,606,635.67 1,140,995.35
(3) The net value of deferred tax assets and deferred tax liabilities with deduction
Closing Balance Closing Balance Opening Balance Opening Balance
of deferred tax of deferred tax of deferred tax of deferred tax
Item assets and assets/deferred assets and assets/deferred tax
liabilities with tax liabilities liabilities with liabilities
deduction deduction
Deferred tax
11,853,267.27 11,853,267.27
assets
Deferred tax
1,140,995.35 1,140,995.35
liabilities
(4) Unrecognized deferred tax assets details
Item Closing Balance Opening Balance
Deductible temporary difference 57,426,417.68 57,426,417.68
Deductible loss 187,793,926.50 187,793,926.50
Total 245,220,344.18 245,220,344.18
(5) Unrecognizeddeductible loss of deferred tax assets expired next period
Year Closing Balance Opening Balance Notes
2018 21,053,716.07 21,053,716.07
2019 166,740,210.42 166,740,210.42
Total 187,793,926.49 187,793,926.49
15 Short-term loan
(1) Category of short-term loan
Loan category 2015.06.30 2014.12.31
Credit loan 305,000,000.00 498,000,000.00
Total 305,000,000.00 498,000,000.00
61
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
16 Notes payable
Items 2015.06.30 2014.12.31
Commercial acceptance notes 11,017,023.86
Bank acceptance notes 204,389,337.00 195,850,000.00
Total 204,389,337.00 206,867,023.86
17 Accounts payable
(1) Accounts payable
Item Closing Balance Opening Balance
Goods payments 1,338,523,870.77 1,276,204,140.97
Project payments 106,865,771.23 112,220,509.73
Total 1,445,389,642.00 1,388,424,650.70
18 Advances from customers
(1) Received in advance
Item Closing Balance Opening Balance
Received in advance 41,513,167.08 48,558,339.92
Total 41,513,167.08 48,558,339.92
19 Employee benefits payable
(1) Category of employee’s payables
Item Opening Increase Decrease Closing
Balance Balance
Short-term
employee’s 10,212,114.16 135,114,026.05 136,219,460.01 9,106,680.20
payable
Welfare with
deposit and 10,063,250.28 21,982,701.98 22,220,184.59 9,825,767.67
withdrawal plan
Total 20,275,364.44 157,096,728.03 158,439,644.60 18,932,447.87
(2) Short-term employee’s payables
Item Opening Increase Decrease Closing
Balance Balance
Salaries, bonus, 967,372.74 107,374,989.28 108,143,412.10 198,949.92
62
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
allowance, and
subsidy
Welfare 7,597,262.95 7,597,262.95
Social insurance 495,865.45 10,095,888.46 10,139,096.03 452,657.88
Include: Medical
207,498.96 8,825,028.07 8,865,942.23 166,584.80
insurance
Industrial
injury 218,585.45 997,612.47 999,468.20 216,729.72
insurance
Maternity
69,781.04 273,247.92 273,685.60 69,343.36
insurance
Housingfunds 2,950,467.55 9,339,559.44 9,396,765.94 2,893,261.05
Labour union and
5,798,408.42 706,325.92 942,922.99 5,561,811.35
training expense
Total 10,212,114.16 135,114,026.05 136,219,460.01 9,106,680.20
(3) Welfare with deposit and withdrawal plan
Item Opening Increase Decrease Closing
Balance Balance
Pension 9,736,874.03 20,920,673.93 21,155,995.27 9,501,552.69
Unemployment insurance 326,376.25 1,062,028.05 1,064,189.32 324,214.98
Total 10,063,250.28 21,982,701.98 22,220,184.59 9,825,767.67
6.20 Taxes payable
Item Closing Balance Opening Balance
Value-added tax 3,126,305.80 2,438,511.93
Business tax 49,685.50 213,979.71
Individual income tax 284,087.56
Enterprise income tax 158,745.93 125,184.92
City maintenance and construction tax 669,668.01 142,857.25
Real estate tax 71,073.87 30,992.40
Land use tax 11,600.65 4,006.25
Stamp tax 88,747.11 106,863.15
Education surcharge 487,526.03 102,825.26
River toll fee 280,707.85 222,694.43
Others 4,985.02
Total 4,944,060.75 3,676,987.88
63
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
21 Interest payable
Item Closing Balance Opening Balance
Interest for long-term loan with
70,000.00
instalments
Interest for short-term loan 10,899,993.00 5,872,500.00
Total 10,899,993.00 5,942,500.00
22 Other payables
Other payablescategorized by payments nature
Payments nature Closing Balance Opening Balance
Other payables 161,496,832.28 183,285,758.81
Total 161,496,832.28 183,285,758.81
23 Non-current liabilities due within one year
(1)Non-current liabilities due within one year
Item Closing Balance Opening Balance
Long-term loan due within one year 90,000,000.00 90,000,000.00
Total 90,000,000.00 90,000,000.00
Item Closing Balance Opening Balance
Government subsidy within 1 year 4,411,103.83 4,761,103.83
Total 4,411,103.83 4,761,103.83
24 Other non-current liabilities
25 Long-term loan
(1) Category of long-term loan
Category 2015.06.30 2014.12.31
Assurance loan 50,000,000.00 50,000,000.00
Total
26 Long-term payables
(1) Long-term payablescategorized by payments nature
Payments nature Closing Balance Opening Balance
Equipment payments 100,000.00 100,000.00
Housing subsidy 1,497,305.72 1,497,305.72
64
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Total 100,000.00 100,000.00
27 Special payables
Items Opening Increase Decrease Closing Formation Basis
Balance Balance
Granted by Wafangdian Bureau
Special of Finance and Wafangdian
pollution 221,698.98 - - 221,698.98 Bureau of Environment
treatment Protection with approval with
“WaCaiZhi Qi No.[2004]217”
Dalian Financial Bureau and
Municipal Office of Economic
and Information Technology
Informatization
100,000.00 - - 100,000.00 Committee with approval with
Construction
“Da CaiZhi Qi No. [2012]917”
and “Da Jing Xin Fa No.
[2012]199”
Total 321,698.98 - - 321,698.98
28 Other non-current liabilities
(1) Category of deferred income
Item Opening Increase Decrease Closing
Formation Basis
Balance Balance
Government
51,122,513.64 2,126,990.93 48,995,522.71
subsidy
Total 51,122,513.64 2,126,990.93 48,995,522.71
(2) Government subsidy
Recorded
Opening Related
Government into non Other Closing
Increase with
subsidy item Balance
-operation Change Balance
asset/equity
income
Industry
Related with
developmentsubs 4,487,208.00 4,487,208.00
idies asset
Improvement Related with
1,473,999.97 368,500.00 1,105,499.97
subsidy asset
65
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Compensation
Related with
for plants 35,155,065.67 1,306,617.94 33,848,447.73
asset
moving
Development of
intelligent
Related with
manufacturing 3,600,000.00 200,000.00 3,400,000.00
asset
equipment
subsidies
Improvement
of high-end
Related with
bearing 3,306,240.00 236,160.00 3,070,080.00
asset
production
subsidies
Interest subsidy
Related with
of grand axle 2,400,000.00 2,400,000.00
asset
load
Construction of
workshop for Related with
700,000.00 15,712.99 684,287.01
tech masters asset
subsidy
Total 51,122,513.64 15,712.99 2,111,277.94 48,995,522.71
2014.12.31 Change for current period 2015.06.30
Transfer
Issui
Shareholders Distrib ring
ng
name/categor uting capital Other Subtot
Amounts % new Amounts %
y share reserves s al
shar
s to share
es
capital
402,600, 100. 402,600,000.0
Total shares — — — — — 100.00
000.00 00 0
29 Share capital
30 Capital reserves
Items 2014.12.31 Increase Decrease 2015.06.30
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
31 Surplus reserves
66
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Items 2014.12.31 Increase Decrease 2015.06.30
Statutory surplus reserve 110,852,290.20 110,852,290.20
Discretionary surplus reserve 20,590,618.91 20,590,618.91
Total 131,442,909.11 131,442,909.11
32 Undistributed profit
Item This period Last period
Closing balance before adjustment 362,111,029.14 482,117,978.03
Opening balance after adjustment 362,111,029.14 482,117,978.03
Add: Current net profit attributable to shareholders
-59,587,254.16 -103,902,948.89
of parent company
Common stock dividends payable 16,104,000.00
Closing balance of 302,523,774.98 362,111,029.14
33 Operating revenue & cost
Items This period Last period
Sales revenue Cost of sales Sales revenue Cost of sales
Revenue from
main 1,067,217,904.74 970,528,875.41 1,446,138,957.62 1,319,904,100.02
operation
Revenue from
other 100,875,774.60 97,980,386.16 194,874,251.09 170,582,924.69
operation
Total 1,168,093,679.34 1,068,509,261.57 1,641,013,208.71 1,490,487,024.71
34 Operating taxes and surcharges
Items This period Last period
Business tax 168,576.54 276,220.06
City construction tax 3,380,286.62 3,438,828.25
Education surcharge 2,452,340.24 2,456,305.91
Total 6,001,203.40 6,171,354.22
35 Selling expenses
Items This period Last period
Selling expenses 98,588,255.39 118,732,526.35
Total 98,588,255.39 118,732,526.35
36 Administrative expenses
Items This period Last period
67
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Administrative expenses 40,067,918.93 35,930,304.10
Total 40,067,918.93 35,930,304.10
37 Financial expenses
Items This period Last period
Interest expenses 24,463,077.99 19,435,381.54
Less: interest income 4,112,766.42 6,090,557.66
Add: Exchange losses 992,066.81 307,956.76
Less: Exchange income 961,252.46 2,069,590.92
Add: Others expenditure 273,901.88 352,444.77
Total 20,655,027.80 11,935,634.49
38 Assets impairment losses
Items This period Last period
Loss of bad debts 15,463.61 1,032,932.36
Total 15,463.61 1,032,932.36
39 Investment income
Items This period Last period
Long-term equity investment income under equity
2,261,215.59
method
Total 2,261,215.59
39 Non-operating income
(1) Non-operating income list
This period Last period Amounts recognized into
Item current non-recurring
profit or loss
Gains on disposal of
957,589.72 27,802.77 957,589.72
non-current assets
Including: gains on disposal
957,589.72 27,802.77 957,589.72
of fixed assets
Income from debt
3,325,164.04 645,467.57 3,325,164.04
restructuring
Penalty income 6,649.49 25,923.28 6,649.49
Others 107,855.90 1,292,533.99 107,855.90
Total 6,894,300.08 4,368,539.55 6,894,300.08
(2) Government grants list
68
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Recorded
Opening Related
Government into non Other Closing
Increase with
subsidy item Balance
-operation Change Balance
asset/equity
income
Industry
Related with
developmentsubs 368,500.00 368,500.00 368,500.00 368,500.00 368,500.00
idies asset
Improvement 1,306,617.9 1,352,117.9 Related with
1,306,617.94 1,352,117.94 1,306,617.94
subsidy 4 4 asset
Development of
intelligent
Related with
manufacturing 200,000.00 200,000.00 200,000.00
asset
equipment
subsidies
Improvement
of high-end
Related with
bearing 236,160.00 236,160.00 236,160.00 236,160.00 236,160.00
asset
production
subsidies
Construction of
workshop for Related with
15,712.99 15,712.99 15,712.99
tech masters asset
subsidy
Exhibition Related with
20,050.00 20,034.00 20,050.00 20,034.00 20,050.00
subsidy asset
Subsidy for
Related with
Amerauto 350,000.00 350,000.00 350,000.00
asset
bearing
Technology
research and Related with
400,000.00 400,000.00
development asset
fund
2,497,040.9 2,376,811.9
Total 2,497,040.93 2,376,811.94 2,497,040.93
3 4
40 Non-operating expenses
This period Last period Amounts recognized into
Item current non-recurring
profit or loss
Loss on disposal of non-current assets 240,546.34
Including: Loss on disposal of fixed
240,546.34
assets
69
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Loss from debt restructuring 138,947.37 791,703.96 138,947.37
Penalty loss 10,000.00 10,000.00
Others 84,572.29 10,669.74 84,572.29
Total 474,066.00 802,373.70 474,066.00
41 Income tax expenses
(1) Income tax expenses
Items This period Last period
Current income tax expenses 264,036.88
Total 264,036.88
（2）Adjustment for profit and income tas expenss
item amoutn
Total profit -59,323,217.28
Income tax expenses 264,036.88
42 Notes to cash flow statement
(1) Cash receipt/payment of other operating/investing/financing activities
1) Other cash received relating to operating activities
Items This period Last period
Interest income 544,365.42 160,754.26
Allowance for exhibition place 20,050.00 20,034.00
Waste material income 768,913.10
Return of reserve fund, deposit etc. 1,421,768.64 5,907,014.36
Total 1,986,184.06 6,856,715.72
2) Other cash paid relating to operating activities
Items This period Last period
Travel expenses 8,924,402.37 12,375,169.88
Rent expense 14,366,346.90 16,938,756.96
Freight service expense 8,666,302.62 10,718,256.31
Conference expense 2,399,555.14 8,359,293.55
Collection and payment for others 7,582,065.50 9,780,040.50
Office expense 3,030,939.33 4,157,457.04
Market development expense 950,214.51 1,744,933.96
Guard and fire fighting expense 1,650,000.00 1,650,000.00
Business promotion expense 2,177,704.82 3,649,883.73
70
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Total 13,090,068.49 19,867,301.34
43 Supplementary information of consolidated cash flow statement
Items This period Last period
1. Adjusting net profit into cash flows of operating
activities:
Net profit -59,587,254.16 -17,449,186.08
Add: Provision for impairment of assets 15,463.61 1,032,932.36
Depreciation of fixed assets 43,773,526.92 38,102,595.42
Amortization of intangible assets 2,470,380.54 2,303,934.16
Amortization of long-term deferred expenses 78,249.18 70,860.18
Losses on disposal of fixed assets, intangible assets,
-717,043.38 -27,802.77
and long-term assets (income listed with”-”)
Financial expense (income listed with”-”) 20,655,027.80 11,935,634.49
Investment loss (income listed with”-”) -2,261,215.59
Decrease of inventory (increase listed with”-”) -52,131,204.86 70,086,476.63
Decrease of operating receivables (increase
-79,538,779.90 -190,068,176.59
listed with”-”)
Increase of operating payables (decrease listed
139,716,479.91 142,437,198.09
with”-”)
Net cash flows arising from operating activities 14,734,845.66 56,163,250.30
2. Significant investment and financing activities
unrelated to cash income and expenses
3. Net increase (decrease) of cash and cash
equivalent
Ending balance of cash 82,465,558.09 106,900,170.43
Less: Opening balance of cash 143,399,164.66 60,616,759.13
Add: Ending balance of cash equivalent
Less: Opening balance of cash equivalent
Net increase of cash and cash equivalent -60,933,606.57 46,283,411.30
(3) Cash and cash equivalents
Items This period Last period
Cash 82,465,558.09 143,399,164.66
Including: Cash on hand 362,559.91 243,292.16
Bank deposit used for paying at any moment 82,102,998.18 143,155,872.50
Other cash used for paying at any moment
Cash equivalents
Closing balance of cash and cash equivalents 82,465,558.09 143,399,164.66
71
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
VIII. Equity of Other Entities
1. Equity of subsidiaries
(1) Organization structure of group company
Nature of Share（%）
Name of subsidiary Location Registered Location Method
operation Direct Indirect
Wazhou Liaoyang Manufacturing
Bearing construction Liaoyang Baita District and selling
Wafangdian 100
Co.,Ltd Weiguo Rd No.61 bearing and
machines
Dalian Wazhou Dalian Free Trade Manufacturing
Precision Motor Car Zone and selling
Wafangdian 100
Bearing Company SanshiliYongsheng bearing and
Limited Rd No.12 machines
Wazhou Precision of Manufacturing
Spherical Roller WafangdianBeigongji and selling
Wafangdian 100
Bearings(Wafangdian St No.1 bearing and
)Co., Ltd machines
IX Risk Related to Financial Instruments
X. Disclosure of Fair Value
XI Related Parties Relationship and Transactions
1 Parent company and ultimate controller
Parent Registered Business Registered Shareholding Voting power
company address nature capital percentage percentage (%)
(%)
Manufacture
No. 1 North
and sales of
Wazhou Gongji Street,
bearing and 413,793,100.00 60.61 60.61
Group Wafangdian
other
City, Dalian
equipments
2 Other related parties
Name of related party Related party relationship
Other companies controlled by the same parent
Dalian Wazhou Manufacturing Equipment Co., Ltd
company and ultimate controlling party
Other companies controlled by the same parent
Wazhou Steel Ball Company
company and ultimate controlling party
72
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Other companies controlled by the same parent
Wazhou Exact Forge Ltd.,
company and ultimate controlling party
Other companies controlled by the same parent
Wazhou Group Turnplate Bearing Ltd
company and ultimate controlling party
Wazhou Group Exact Transmission Bearing Co., Other companies controlled by the same parent
Ltd company and ultimate controlling party
Wazhou Group Equipment Technology Project Co., Other companies controlled by the same parent
Ltd. company and ultimate controlling party
Other companies controlled by the same parent
Wazhou Group Special Precision Bearing Co., Ltd.
company and ultimate controlling party
Wazhou Group National Bearings Engineering Other companies controlled by the same parent
Research Centre Co., Ltd company and ultimate controlling party
Wafangdian Tongda manufacture Co., Ltd Other related party
Dalian GONA Wazhou Auto Bearings Co., Ltd Other related party
Dalian Wazhou Jinzhou Machinery Co., Ltd Other related party
Dalian WazhouFengyuan Machinery Co., Ltd Other related party
Wazhou Group (USA) Bearing CO., Ltd. Other related party
3 Related party transactions
(1) Purchase of goods
More than
Amount in
Approval the approved Amount in last
Related party type and company Content report
amount amount or period
peirod
not
Purchase 29,500,397.
Wazhou Group 0.00 Yes
of goods 79
Dalian SKF Wazhou Bearings Co., Purchase
No 91,479,064.50
Ltd. of goods
Purchase 2,725,471.7
Wazhou Steel Ball Company 6,500,000.00 No 3,096,656.30
of goods 1
Purchase 94,883,662. 250,000,000.0 No
Wazhou Exact Forge Ltd. 136,587,261.89
of goods 09 0
Dalian Wazhou Manufacturing Purchase 3,922,520.3 No
20,000,000.00 11,307,415.15
Equipment Co., Ltd of goods 5
Wazhou Group Turnplate Bearing Purchase 79,575,288.
40,000,000.00 Yes 112,108,498.00
Ltd of goods 50
Wazhou Group Exact Purchase 37,937,403. 103,000,000.0 No
53,168,501.14
Transmission Bearing Co., Ltd of goods 92 0
Wazhou Group Equipment Purchase 15,673,365. No
45,000,000.00 15,432,733.33
Technology Project Co., Ltd. of goods 23
Wafangdian Tongda manufacture Purchase 18,877,936. No
70,000,000.00
Co., Ltd of goods 00
Dalian GONA Wazhou Auto Purchase 20,401,779. No
50,000,000.00
Bearings Co., Ltd of goods 48
Dalian WazhouFengyuan Purchase 43,801,272. 160,000,000.0 No
71,125,192.00
Machinery Co., Ltd of goods 14 0
Dalian Wazhou Jinzhou Machinery Purchase 55,427,499. 145,000,000.0 No
68,905,658.17
Co., Ltd of goods 53 0
(2) Sales of goods
73
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Related party type and
Content This period Last period
company
Wazhou Group Sales of goods 524,942.00 622,270.14
Dalian SKF Wazhou Bearings Co.,
Sales of goods 34,129,174.94
Ltd.
Wazhou Steel Ball Company Sales of goods 438,013.51 3,886,120.88
Wazhou Exact Forge Ltd. Sales of goods 88,452,666.21 179,230,758.96
Dalian Wazhou Manufacturing
Sales of goods 761,089.22 661,955.32
Equipment Co., Ltd
Wazhou Group Turnplate Bearing
Sales of goods 395,923.38 386,515.20
Ltd
Wazhou Group Exact
Sales of goods 8,200,007.98 13,147,922.82
Transmission Bearing Co., Ltd
Wazhou Group Special Precision
Sales of goods 1,596,963.99 1,973,843.00
Bearing Co., Ltd.
Dalian WazhouFengyuan
Sales of goods
Machinery Co., Ltd
Dalian Wazhou Jinzhou Machinery
Sales of goods 299,558.77 152,612.23
Co., Ltd
Wafangdian Tongda manufacture
Sales of goods 250,351.68
Co., Ltd
Wazhou Group (USA) Bearing
Sales of goods 84,387,819.12 11,957,485.95
CO., Ltd.
Dalian SKF Wazhou Bearings Co., Provideing
1,925,926.98
Ltd. service
Provideing
Wazhou Steel Ball Company 776,046.02 501,943.65
service
Wazhou Group Exact Provideing
577,433.61 1,349,653.11
Transmission Bearing Co., Ltd service
Wazhou Group Special Precision Provideing
172,678.01 249,363.99
Bearing Co., Ltd. service
Wafangdian Tongda manufacture Provideing
57,327.35
Co., Ltd service
Dalian Wazhou Jinzhou Machinery Provideing
122,870.03 202,486.37
Co., Ltd service
4 Assets rent out
1) Assets rent out
2) Assets under lease
Category of assets Lease fees in the report Lease fees in the last
Lessor
rent in peirod peirod
Wazhou Group land 146,400.00
Wazhou Group house 4,550,000.00 6,238,750.00
Wazhou Group machines 4,134,898.06 5,753,348.28
5 Related party debt structure reconstruction
Type of Amount in the Amount in the last
Related party report peirod peirod
transaction
Wazhou Group Equipment Technology A/P
41,368.00
Project Co., Ltd.
Wazhou Group Exact Transmission A/P
350,000.00
Bearing Co., Ltd
74
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Wazhou Group A/P 100,000.00
Wazhou Exact Forge Ltd. A/P 600,000.00
Dalian Wazhou Manufacturing A/P
200,000.00
Equipment Co., Ltd
Dalian Wazhou Jinzhou Machinery Co., A/P
50,000.00
Ltd
Dalian WazhouFengyuan Machinery A/P
60,000.00
Co., Ltd
Wafangdian Tongda manufacture Co., A/P
350,000.00
Ltd
Wazhou Steel Ball Company A/P 50,000.00
Wazhou Group Turnplate Bearing Ltd A/P 750,000.00
6. Balances with related parties
(1) Accounts receivable due from related parties
Closing Balance Opening Balance
Item Related party Provi Book
Book Balance Provision
sion Balance
Accounts
Wazhou Group 6,903,361.61 6,903,361.61
receivable
Accounts Wazhou Group Special
9,576,689.37 9,399,082.68
receivable Precision Bearing Co., Ltd
Accounts Wazhou Group (USA) Bearing 12,344,182.9
71,409,669.52
receivable CO., Ltd. 1
Accounts Wazhou Group Exact
104,803.24 104,803.24
receivable Transmission Bearing Co., Ltd
Accounts
Wazhou Exact Forge Ltd., 271,665.58 154,404.30
receivable
Accounts Dalian WazhouFengyuan
12,295.63 12,295.63
receivable Machinery Co., Ltd
(2) Accounts payable due from related parties
Item Related party Closing Balance Opening Balance
Accounts
Wazhou Group 34,515,465.66
payable
Accounts Dalian Wazhou Manufacturing
2,168,245.19 5,464,593.44
payable Equipment Co., Ltd
Accounts
Wazhou Steel Ball Company 3,933,648.74 8,324,811.37
payable
Accounts
Wazhou Exact Forge Ltd. 53,837,085.92 85,227,380.13
payable
Accounts
Wazhou Group Turnplate Bearing Ltd 35,357,769.21 152,988,835.67
payable
Accounts
Wazhou Group Exact Transmission Bearing Co., Ltd 106,717,029.98 104,433,713.52
payable
75
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Accounts
Dalian Wazhou Jinzhou Machinery Co., Ltd 22,806,097.82 16,305,773.72
payable
Accounts
Dalian WazhouFengyuan Machinery Co., Ltd 19,328,832.51 27,241,707.14
payable
Accounts
Wazhou Group Equipment Technology Project Co., Ltd. 13,574,802.39 3,829,959.81
payable
Accounts
Wafangdian Tongda manufacture Co., Ltd 21,712,169.31
payable
Accounts
Dalian GONA Wazhou Auto Bearings Co., Ltd 24,281,374.04
payable
Other payables Wazhou Group 34,452,223.53 36,820,099.09
Dalian Wazhou Manufacturing
Other payables 286,088.45 286,088.45
Equipment Co., Ltd
Other payables Wazhou Group Equipment Technology Project Co., Ltd. 952,000.00 952,000.00
7. Contingency
As at June 30,2015, the Group does not have any other contingencies.
XII. Share-Based Payment
XIII. Commitment and Contingency
As at June 30,2015, the Group does not have any other significant commitments.
XIV. Events after the Balance Sheet Date
The Group does not have any other significant events after the Balance Sheet Date.
XV. Other Significant Events
1. Debt restructuring
In this report peirod, the Company has signed the ‘Debt Restructuring Agreement’ with the customers,
through cash reimbursement less than the debt-equity carrying value, and implemented the restructuring,
the amounts of debt restructuring is RMB 3,500,000.00 4Yuan, which result in the debt restructuring
losses RMB138,947.37Yuan, and were recognized into non-operating expenses.
In this report peirod, the Company has signed the ‘Debt Restructuring Agreement’ with the creditors,
through cash or bank notes reimbursement less than the debt-equity carrying value, and implemented
the restructuring, the amounts of debt restructuring is RMB 74,211,204.75Yuan, which result in the
debt restructuring income RMB 3,325,164.04Yuan and were recognized into non-operating revenue.
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Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
XVI. Notes to the Main Items of the Financial Statements of Parent Company
1 Accounts receivable
(1) Accounts receivable category
2015.06.30
Items Booking balance Provision
Amount % Amount %
Accounts receivable with individual significant
amount and identification separately bad debt 3,910,007.43 0.40% 3,910,007.43 100.00%
provision
Accounts receivable accrued bad debt provision by
1,077,467,990.41 98.30% 47,119,713.43 4.70%
portfolio
Accounts receivable with individual insignificant
amount and identification separately bad debt 14,393,660.23 1.30% 14,393,660.23 100.00%
provision
100.00
Total 1,095,771,658.07 65,423,381.09
%
(Continued)
2014.12.31
Items Booking balance Provision
Amount % Amount %
Accounts receivable with individual significant
amount and identification separately bad debt 3,910,007.43 3,910,007.43 100.00%
provision
Accounts receivable accrued bad debt provision
1,153,457,709.13 99.00% 47,135,177.04 4.00%
by portfolio
Accounts receivable with individual insignificant
amount and identification separately bad debt 14,393,660.23 1.00% 14,393,660.23 100.00%
provision
100.00
Total 1,171,761,376.79 65,438,844.70
%
1) Individually significant amounts of accounts receivable accrued the bad debt provision separately at
the end of June 30,2015
77
Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Provision
Booking Proportion
Debtors name for bad Reasons for provision
balance (%)
debts
Baoding North China A/R with over 5 years
Machine & Electronic 3,910,007.43 3,910,007.43 100.00% aging, unlikely to be
Equipment Co., Ltd collected
Total 3,910,007.43 3,910,007.43 —
2) Accounts receivable accrued the bad debt provisions in the portfolio as accounting aging analysis
method
Closing Balance
Aging Provision for bad Proportion
Accounts receivable
debts (%)
Within 1 year 894,007,586.49 8,940,075.86 1.00
1-2 years 132,344,903.10 6,617,245.16 5.00
2-3 years 33,085,335.59 6,617,067.12 20.00
3-4 years 49,921,577.80 24,960,788.90 50.00
Total 1,109,359,402.98 47,135,177.04
(2) Bad debt provision accrued and write-off (withdraw)
The bad debt provision has been accrued in the amount 15,463.61 Yuan during the report period without
any write-off or withdrawal.
(3) Accounts receivable written off in current period
Item Written-off Amount
Accounts receivable written off 30,927.22
2 Other receivables
2. Other receivables
(1) The category of other receivables
Closing Balance
Items Booking balance Provision Booking
Amount % Amount % balance
Other receivables identified
bad debt provision based on
25,768,477.38 100.00% 1,269,642.75 5.91% 24,498,834.63
the characters of credit risk
portfolio
Total 25,768,477.38 100.00% 1,269,642.75 5.91% 24,498,834.63
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Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
(Continued)
Opening Balance
Items Booking balance Provision Booking balance
Amount % Amount %
Other receivables
identified bad debt
provision based on the 16,931,067.05 100.00% 1,269,642.75 11.00% 15,661,424.30
characters of credit risk
portfolio
Total 16,931,067.05 100.00% 1,269,642.75 11.00% 15,661,424.30
1) Other receivables accrued the bad debt provisions in the portfolio as accounting aging analysis
method
Closing Balance
Aging Provision for Proportion
Other receivables
bad debts (%)
Within 1 year 18,104,465.61 181,044.66 1.00%
1-2 years 921,655.76 46,082.79 5.00%
2-3 years 624,907.37 124,981.47 20.00%
3-4 years 1,835,067.66 917,533.83 50.00%
Total 21,486,096.40 1,269,642.75
(2) Other receivables categorized by nature
Nature Closing Balance Opening Balance
Other receivables 25,768,477.38 16,931,067.05
Total 25,768,477.38 16,931,067.05
3 Long-term equity investments
(1) Category of long-term equity investments
Item Closing Balance Opening Balance
Opening
Closing Balance Provision Book Value Provision Book Value
Balance
Investment into
211,583,897.67 211,583,897.67 211,583,897.67 211,583,897.67
subsidiaries
Total 211,583,897.67 211,583,897.67 211,583,897.67 211,583,897.67
(2) Investments into subsidiaries
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Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Provision
Closing
Opening Decreas Closing carried
Subsidiaries names Increase Balance of
Balance e Balance current
provision
period
Wazhou Liaoyang Bearing
17,337,259.95 17,337,259.95
construction Co.,Ltd
Dalian Wazhou Precision
Motor Car Bearing 45,478,956.37 45,478,956.37
Company Limited
Wazhou Precision of
Spherical Roller 148,767,681.3
148,767,681.35
Bearings(Wafangdian)Co., 5
Ltd
211,583,897.6
Total 211,583,897.67
7
4 Operating revenue and cost
Item This period Last period
Revenue Cost Revenue Cost
Revenue from
1,105,704,985.20 1,013,477,311.71 1,445,719,557.96 1,321,173,238.24
main operation
Revenue from
102,017,182.39 99,888,620.17 197,741,808.32 173,481,642.85
other operation
Total 1,207,722,167.59 1,113,365,931.88 1,643,461,366.28 1,494,654,881.09
5. Investment income
Items This period Last period
Income from long-term equity investments
2,261,215.59
under equity method
Total 2,261,215.59
XVII Supplementary Information to the Financial Statements
1. Non-operating profit or loss
Items Amount Notes
Gain or loss from disposal of non-current
717,043.38
assets
Government grants recorded into profit or loss
2,497,040.93
during current period
Profit or loss from debts restructuring 3,186,216.67
Others non-operating revenue and expense
19,933.10
besides the above items
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Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
Effect from income tax 602,664.82
Total 5,817,569.26
2. Return on equity and earnings per share
Weighted average Earnings per share (EPS)
Profit of report period return on net Basic Diluted EPS
assets (%) EPS
Net profit attributable to shareholders of parent
-4.41% -0.15 -0.15
company
Net profit after deducting non-recurring gains and
-4.84% -0.16 -0.16
losses attributable to shareholders of parent company
Differences in accounting information under IAS and domestic accounting standard
1. Differences in net profit and net asset under domestic and international accounting standards
In RMB Yuan
Net profit attributable to the Net asset attributable to the
shareholders of the listed company shareholders of the listed company
Current term Amount of last term End of term Beginning of term
On Chinese Accounting
-59,587,254.16 -17,449,186.08 1,322,257,734.56 1,381,844,988.72
Standard
Items and amounts adjusted on IAS
Under International
-59,587,254.16 -17,449,186.08 1,322,257,734.56 1,381,844,988.72
Accounting Standard
2. Differences in net profit and net asset under domestic and overseas accounting standards
In RMB Yuan
Net profit attributable to the Net asset attributable to the
shareholders of the listed company shareholders of the listed company
Current term Amount of last term End of term Beginning of term
On Chinese Accounting
-59,587,254.16 -17,449,186.08 1,322,257,734.56 1,381,844,988.72
Standard
Accounts and amounts adjusted according to overseas accounting standard
On IAS -59,587,254.16 -17,449,186.08 1,322,257,734.56 1,381,844,988.72
Chapter X. List of reference documents
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Wafangdian Bearing Co., Ltd（Wazhou B） 2015 Mid-year Report
List of reference documents
1. The Accounting statements which is with the signatures and seals of the legal representative,
finance controller and the director of accounting department of the Company.
2. Original documents and notices of the Company disclosed in newspapers designated by the
Security Supervisory Committee of China in report period.
82
