Wafangdian Bearing Compnay Limited The Q1 Report for 2017 Stock code: 200706 stock short form: *ST Wazhou B Report code: 2017-17 Wafangdian Bearing Company Limited The Q1 Report for 2017 § 1 Important Notes 1The Board of Directors, Board of Supervisors, directors, supervisors, and top management of the Company hereby guaranteed that there are no false records, misleading statements, and major omits in this report, and assumed the individual and associated responsibilities for the truth, accuracy and completeness of the contents. Chairman of the Board Mr. Meng Wei , Financial manager Ms.Sun Najuan, Accounting charger Mr. Wang Jiyuan hereby confirms that the Financial Report of the quarterly report is true and complete. Besides the following directors, all the other directors attended the Board meeting and discussed the report. Name Post Reasons Assignee name Tang Yurong Diretor Busy work Fang Bo § 2 Major accounting data and shareholder change 1 Major accounting data and financial indexes Unit: RMB Jan-Mar 2017 Jan-Mar 2016 +/- to previous Operating income(Yuan) 566,558,889.45 534,404,100.68 6.02% Net profits attributed Shareholders(Yuan) 1,998,535.48 2,340,344.55 -14.61% Net cash flows from operation activities 615,347.36 -1,325,821.30 -146.41% Basic gains on per share 3,495,485.07 16,496,758.57 -78.81% Diluted gains on per share 0.0050 0.0060 -16.67% Jan-Mar 2017 Jan-Mar 2016 +/- to previous Total assets 3,560,273,989.24 3,553,947,227.09 0.18% Owners’ equity (shareholders’ equity) 1,381,336,461.03 1,379,337,925.55 0.14% Items of non-recurring gains and losses √ Applicable □ Inapplicable Unit: RMB Items of non-recurring gains and losses Amount Note(if applicable) Gain or loss form disposal of non-current assets 23,972.71 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 with national 1,285,388.97 policy, or in accordance with fixed standards or quantities Profit of loss from debts restructuring 277,862.86 Other non-business income and expenditures other than the above -160,836.57 Influenced amount of income tax 43,199.85 Total 1,383,188.12 - 1 Wafangdian Bearing Compnay Limited The Q1 Report for 2017 2 Total number of shareholders at the end of the report period and shares held by the top ten shareholders Unit: Share Total number of shareholder at the end of Total number of shareholder at the end of report period with 7044 0 report period preferred stock Shareholders with 5% or above Shares Impawned or Frozen Shares Total shares Non-current Name Nature Ratio(%) held shares held Status Amount Wafangdian Bearing State-owned shareholder 60.61 244,000,000 244,000,000 Group Corporation AKTIEBOLAGET Foreign shareholder 19.70 79,300,000 SKF Huang Junyue Domestic shareholder 1.16 4,680,000 BOCI SECURITIES Foreign shareholder 0.94 3,772,700 LIMITED Hu Xiaofeng Domestic shareholder 0.47 1,879,277 GUOTAI JUNAN SECURITIES(HONG Foreign shareholder 0.36 1,456,040 KONG) LIMITED Jin Yunhua Foreign shareholder 0.33 1,311,256 MAN,KWAI WING Domestic shareholder 0.18 713,101 Zhou Jie Domestic shareholder 0.16 630,000 Zhou Junlin Domestic shareholder 0.14 545,600 Top Ten Tradable Shareholders Category of Shares Name Current shares held at end of year Categories Amount AKTIEBOLAGET SKF 79,300,000 B 79,300,000 Huang Junyue 4,680,000 B 4,680,000 BOCI SECURITIES LIMITED 3,772,700 3,772,700 Hu Xiaofeng 1,879,277 B 1,879,277 GUOTAI JUNAN B SECURITIES(HONGKONG) 1,456,040 1,456,040 LIMITED Jin Yunhua 1,311,256 B 1,311,256 MAN,KWAI WING 文贵荣 713,101 B 713,101 Zhou Jie 630,000 B 630,000 Zhou Jun lin 545,600 B 545,600 Liao Yun 514,500 B 514,500 Explanation for the Affiliated Relations or United Action of the Top Ten There was no relationship and consistent activities between the first big shareholder and other shareholders or the top ten common stock holders; The relationship among other shareholders, top ten circulation shareholders, Shareholders and the Top Ten Tradable top ten circulation shareholders and other shareholders was not clear. Shareholders § 3 Significant items 1 Particulars dates changes over 30% in items of main accounting statement and financial index , and explanations of reasons √Applicable□Inapplicable Unite: 0000RMB Yuan 2 Wafangdian Bearing Compnay Limited The Q1 Report for 2017 The end of Beginning of No Item % +/- to previous Reason year year Mainly the added-value taxand the 1 Tax payable 448 1,914.10 -1,466.10 -76.60% attached is the beginning Mainly according to the provisions of the tax law, in May 2016 to implement the camp change increases, taxes and additional accounting business activities of consumption tax, urban construction business tax and tax, resource tax, educational expenses 2 510.1 248.4 261.7 105.30% surcharges to add, property tax and land use tax, stamp duty and other relevant taxes, so will be in May 2016 after all management cost of the tax adjustment to tax and additional items, so the tax and additional year-on-year growth. Loss of Mainly cancel after Close the accounts 3 impairment of 10 0.1 9.9 9254.00% assets receivable from9.9millionYuan 1.A fine income fell;2.The government Non-operating 4 revenue 163.8 442.3 -278.6 -63.00% subsidies fell;3.Debt restructuring gains fell Other cash Mainly at the same time receive the first received relating 5 to operating 73.3 130.7 -57.4 -43.90% major technical equipment insurance activities premium subsidies to 76 millionYuan. Mainly operating income rose, make the added-value tax and its attached 6 Tax payments 3,077.40 1,306.00 1,771.50 135.60% year-on-year increase Mainly because received from return of 7 Tax payments 24 -24 -100.00% investment of 2014 from ME with 240 thousand Yuan. Net cash received from disposal of fixed Mainly received income for sold Property 8 487.7 487.7 assets, intangible Harbin assets and other long-term assets Cash paid to acquire fixed Mainly because the cash paid on fix 9 assets, intangible 110.3 162.7 -52.4 -32.20% asset investment decline compared with assets and other last peirod. long-term assets Mainly due to the impact of credit, so that Proceeds from 10 borrowings 13,300.00 28,500.00 -15,200.00 -53.30% the current payment of debt to pay the cash reduction Mainly due to the impact of credit, so Repayment of 11 borrowings 11,800.00 22,000.00 -10,200.00 -46.40% that the cash received in the current period to reduce the cash Mainly in current dollars for RMB exchange rate fell 0.078 in January, the RMB appreciation is bigger, exchange Effects of foreign loss is bigger, 2, 3 months exchange 12 exchange rate -29.9 -54 24.1 -44.60% rates to rise, forming exchange earnings, changes on cash the overall form exchange earnings, earnings fell 3 Wafangdian Bearing Compnay Limited The Q1 Report for 2017 2 Progress of significant events, their influence, and analysis and explanation of their solutions □Applicable √Inapplicable 3 The company, shareholders, actual controller, the acquirer, directors, supervisors and senior management personnel or other related parties to fulfill commitments and the final report has not been fulfilled in the reporting period □Applicable √Inapplicable 4 Estimation of accumulative net profit from Jan to June 2017 □Applicable √Inapplicable 5 Particular about security investment □Applicable √Inapplicable 6 Particular about derivatives □Applicable √Inapplicable 7 Activities on receiving research, communication and interview in the report period Time Method Object Content and documents supplied Company earnings forecast, to verify 2017.01.24 Telephone communication Private investor 2017.02.08 Telephone communication Private investor Whether Company can turnround and pick the cap Understand the company's second-largest 2017.02.23 Telephone communication Private investor shareholder SKF thaw The company's production and operation situation 2017.02..24 Telephone communication Private investor Understand the company's second-largest 2017.02.27 Telephone communication Private investor shareholder SKF thaw 8 Illegal external guarantee □Applicable √Inapplicable 9 Controlling shareholder and its related parties to the listing Corporation's non operating funds □Applicable √Inapplicable 4 Wafangdian Bearing Compnay Limited The Q1 Report for 2017 § 4 Appendix 1 Balance sheet Consolidated Balance Sheet. Unit: RMB Yuan Item Opening Balance Closing Balance Current assets : Monetary fund 132,266,945.30 184,416,042.97 Financial assets held-for-trading Bills receivable 131,022,178.08 109,181,156.69 Account receivable 1,349,894,849.79 1,249,891,874.39 Account paid in advance 12,501,011.77 16,084,843.68 Interest receivable Dividend reciivable Other receivables 20,199,205.68 19,705,788.69 Inventory 804,872,590.26 842,429,282.92 Non-current assets due within 1 year Other current assets 5,293,146.62 7,202,729.14 Total current assets 2,456,049,927.50 2,428,911,718.48 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 Investment property Fixed assets 764,805,631.07 785,568,617.02 Construction in progress 195,393,119.31 194,439,963.77 Construction materials Fixed assets disposal Biological assets Gas and petrol assets Intangible assets 129,891,806.94 130,876,465.81 Development expenditure Goodwill Long-term prepaid expense 504,404.08 521,361.67 Deferred tax assets 11,629,100.34 11,629,100.34 Other non-current assets Total non-current assets 1,104,224,061.74 1,125,035,508.61 Total assets 3,560,273,989.24 3,553,947,227.09 Current liabilities Short-term loan 564,900,000.00 549,900,000.00 Note payable 330,262,040.12 425,514,610.26 Accounts payable 939,991,282.61 833,899,714.83 Accounts received in advance 26,265,754.22 26,959,477.14 Employee benefits 17,113,749.84 17,256,851.42 Tax payable 4,480,227.38 19,141,230.94 Interest payable 1,047,000.00 927,000.00 5 Wafangdian Bearing Compnay Limited The Q1 Report for 2017 Dividends payable Other payables 106,796,128.09 111,790,682.03 Non-current liabilities due within I year 90,000,000.00 90,000,000.00 Other current liabilities 4,519,772.50 4,704,022.50 Total current liabilities 2,085,375,954.76 2,080,093,589.12 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 296,698.98 296,698.98 Contingent liabilities Deferred income 40,728,272.79 41,682,411.76 Deferred tax liabilities 939,295.96 939,295.96 Other non-current liabilities Total non-current liabilities 93,561,573.45 94,515,712.42 Total liabilities 2,178,937,528.21 2,174,609,301.54 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 361,602,501.45 359,603,965.97 Equity attributable to parent company 1,381,336,461.03 1,379,337,925.55 Minority interest Total owner’s equity 1,381,336,461.03 1,379,337,925.55 Total owner’s equity and liabilities 3,560,273,989.24 3,553,947,227.09 Chairman: Meng Wei General Accountant : Sun Najuan Accounting charger: Wang Jiyuan 2.Balance Sheet Of Parent Company Unit: RMB Yuan Item Opening Balance Closing Balance Current assets : Monetary fund 116,953,175.29 160,858,258.16 Financial assets held-for-trading Financial assets held-for-trading Bills receivable 126,896,438.08 105,343,542.29 Account receivable 1,363,185,747.16 1,271,216,667.68 Account paid in advance 9,609,539.90 14,150,176.66 Divident receivable Other receivables 19,343,431.28 18,675,828.91 Inventory 743,450,863.90 781,029,612.11 Non-current assets due within 1 year Other current assets 3,257,774.16 4,853,373.30 Total current assets 2,382,696,969.77 2,356,127,459.11 Non-current assets Financial assets available-for-sale 2,000,000.00 2,000,000.00 6 Wafangdian Bearing Compnay Limited The Q1 Report for 2017 Investments held-to-maturity Long-term receivable Long-term equity investment 211,583,897.67 211,583,897.67 Investment property Fixed assets 524,032,186.46 540,414,895.87 Construction in progress 195,077,950.91 194,408,579.15 Construction materials Fixed assets disposal Biological assets Gas and petrol assets Intangible assets 110,569,055.46 111,375,548.98 Development expenditure Goodwill Long-term prepaid expense 504,404.08 521,361.67 Deferred tax assets 10,355,933.09 10,355,933.09 Other non-current assets Total non-current assets 1,054,123,427.67 1,070,660,216.43 Total assets 3,436,820,397.44 3,426,787,675.54 Current liabilities Short-term loan 564,900,000.00 549,900,000.00 Note payable 330,262,040.12 425,514,610.26 Accounts payable 864,312,507.18 754,015,698.35 Accounts received in advance 26,171,269.90 26,840,178.68 Commission charge payable Employee benefits 10,208,428.78 10,295,412.34 Tax payable 1,106,925.50 15,496,981.29 Interest payable 1,047,000.00 927,000.00 Dividends payable Other payables 67,595,165.78 72,962,085.99 Non-current liabilities due within I year 90,000,000.00 90,000,000.00 Other current liabilities 4,422,224.50 4,606,474.50 Total current liabilities 1,960,025,561.76 1,950,558,441.41 Non-current liabilities Long-term loan 50,000,000.00 50,000,000.00 Debenture payable Long-term payables Special payables 296,698.98 296,698.98 Contingent liabilities Deferred income 36,436,160.79 37,390,299.76 Deferred tax liabilities Other non-current liabilities Total non-current liabilities 86,732,859.77 87,686,998.74 Total liabilities 2,046,758,421.53 2,038,245,440.15 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 7 Wafangdian Bearing Compnay Limited The Q1 Report for 2017 Less: treasury share Surplus reserve 131,442,909.11 131,442,909.11 Undistributed profit 370,340,623.54 368,820,883.02 Difference of foreign currency translation Total owner’s equity 1,390,061,975.91 1,388,542,235.39 Total owner’s equity and liabilities 3,436,820,397.44 3,426,787,675.54 3. Income Sheet Consolidated Income Sheet. Unit: RMB Yuan Item Account for the current period Account for the prior period 1.Total operating income 566,558,889.45 534,404,100.68 Including: Operating revenue 566,558,889.45 534,404,100.68 Interest income Handling charge and commission income 2.Total operating cost 565,986,741.94 536,186,588.49 Including: Operating cost 505,497,968.51 474,543,771.67 Interest expenses Handling charge and commission income Tax & surcharges for main operations Selling expenses 34,751,390.67 35,418,510.77 Administrative expense 14,366,313.30 17,484,083.53 Financial expense 6,169,799.50 6,254,731.49 Loss of impairment of assets 99,810.61 1,067.04 Add: Gains of change of fair value of assets(loss with"-") Investment income(loss with "-") Including: Income form investment on associated enterprise and jointly enterprise 3.Operating profit (loss with"-") 572,147.51 -1,782,487.81 Add: Non-operating revenue 1,637,735.74 4,423,429.08 Less: Non-operating cost 211,347.77 300,596.72 Including: loss on disposal of non-current assets 4.Total profit(loss with"-") 1,998,535.48 2,340,344.55 Less: Income tax expenses 264,036.88 5. Net profit(Loss with"-") 1,998,535.48 2,340,344.55 Net profit attributable to shareholders of parent company 1,998,535.48 2,340,344.55 Minority interests 6. Total comprehensive returns 1,998,535.48 2,340,344.55 Total comprehensive returns available for parent company 1,998,535.48 2,340,344.55 Total comprehensive returns available for minority shareholders 7.Earnings per share (1) Basic earnings per share 0.0050 0.0060 (2) Diluted earnings per share 0.0050 0.0060 Chairman: Meng Wei General Accountant : Sun Najuan Accounting charger: W ang Jiyuan 8 Wafangdian Bearing Compnay Limited The Q1 Report for 2017 Income Sheet of Parent Company. Unit: RMB Yuan Item Account for the current period Account for the prior period 1.Total operating income 578,832,790.50 547,810,933.56 less: Operating cost 525,737,899.81 493,808,513.55 Tax & surcharges for main operations 4,453,304.97 2,245,292.52 Selling expenses 34,274,027.82 34,948,306.61 Administrative expense 7,774,695.18 10,870,534.87 Financial expense 6,205,397.25 6,257,369.95 Loss of impairment of assets 99,810.61 1,067.04 Add: Gains of change of fair value of assets(loss with"-") Investment income(loss with "-") Including: Income form investment on associated enterprise and jointly enterprise 2.Operating profit (loss with"-") 287,654.86 -320,150.98 Add: Non-operating revenue 1,410,722.23 3,513,983.78 Less: Non-operating cost 178,636.57 300,596.72 Including: loss on disposal of non-current assets 3.Total profit(loss with"-") 1,519,740.52 2,893,236.08 Less: Income tax expenses 4 Net profit(Loss with"-") 1,519,740.52 2,893,236.08 5.othercomprehensive returns 6. Total comprehensive returns 1,519,740.52 2,893,236.08 7.Earnings per share (1) Basic earnings per share 0.0040 0.0070 (2) Diluted earnings per share 0.0040 0.0070 3 Cash Flow Statement Consolidated Cash Flow Statement. Unit: RMB yuan Item Account for the current period Account for the prior period 1.Cash from operating activities Cash received from sale of goods or rendering of services 258,463,428.40 274,271,178.10 Refund of taxes and fares Other cash received relating to operating activities 733,337.81 1,307,313.60 Sub-total of cash inflows 259,196,766.21 275,578,491.70 Cash paid for goods and services 139,213,588.09 141,358,864.87 Cash paid to or on behalf of the employees 60,632,595.73 80,393,546.42 Tax payments 30,774,210.27 13,059,673.43 Other cash paid relating to operating activities 25,080,887.05 24,269,648.41 9 Wafangdian Bearing Compnay Limited The Q1 Report for 2017 Sub-total of cash outflows 255,701,281.14 259,081,733.13 Net cash flows from operating activities 3,495,485.07 16,496,758.57 2.Cash flows from investing activities Cash received from return of investment 240,000.00 Net cash received from disposal of fixed assets, intangible assets and other long-term assets 4,876,900.00 Proceeds from sale of subsidiaries and other operating units Other cash received relating to investing activities Sub-total of cash inflows 4,876,900.00 240,000.00 Cash paid to acquire fixed assets, intangible assets and other 1,102,634.77 1,626,653.53 long-term assets Cash paid to acquire investment Net cash used in acquiring subsidiaries and other operating units Other cash paid relating to investing activities Sub-total of cash outflows 1,102,634.77 1,626,653.53 Net cash flows from investment activities 3,774,265.23 -1,386,653.53 3.Cash flows from financing activities Cash received from absorbing investment Including: Cash received from increase in minority interest Proceeds from borrowings 133,000,000.00 285,000,000.00 Other proceeds relating to financing activities 75,122,872.22 97,963,750.00 Sub-total of cash inflows 208,122,872.22 382,963,750.00 Repayment of borrowings 118,000,000.00 220,000,000.00 Distribution of dividends or profits & interest expenses 7,553,772.89 9,254,570.05 Including: dividends or profit paid to minority interest Cash paid for other financing activities 140,000,000.00 140,000,000.00 Sub-total of cash outflows 265,553,772.89 369,254,570.05 Net cash flows from financing activities -57,430,900.67 13,709,179.95 4. Effects of foreign exchange rate changes on cash -299,085.97 -539,983.94 5.Net increases in cash and cash equivalents -50,460,236.34 28,279,301.05 Add: cash and cash equivalent, at the beginning of year 142,233,376.52 78,556,030.56 6.Cash and cash equivalent at the end of the year 91,773,140.18 106,835,331.61 Cash Flow Statement Of Parent Company. 母公司现金流量表 Unit: RMB yuan Item Account for the current period Account for the prior period 1.Cash from operating activities Cash received from sale of goods or rendering of services 253,401,401.34 270,016,517.86 Refund of taxes and fares Other cash received relating to operating activities 413,886.66 1,045,722.24 Sub-total of cash inflows 253,815,288.00 271,062,240.10 Cash paid for goods and services 144,789,732.13 154,491,640.64 Cash paid to or on behalf of the employees 47,299,447.64 66,051,711.98 Tax payments 26,733,496.94 10,750,789.10 10 Wafangdian Bearing Compnay Limited The Q1 Report for 2017 Other cash paid relating to operating activities 23,254,522.62 22,488,603.33 Sub-total of cash outflows 242,077,199.33 253,782,745.05 Net cash flows from operating activities 11,738,088.67 17,279,495.05 2.Cash flows from investing activities Cash received from return of investment 240,000.00 Net cash received from disposal of fixed assets, intangible assets and 4,867,900.00 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 4,867,900.00 240,000.00 Cash paid to acquire fixed assets, intangible assets and other 1,094,354.77 1,329,504.22 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 1,094,354.77 1,329,504.22 Net cash flows from investment activities 3,773,545.23 -1,089,504.22 3.Cash flows from financing activities Cash received from absorbing investment Including: Cash received from increase in minority interest Proceeds from borrowings 133,000,000.00 285,000,000.00 Other proceeds relating to financing activities 75,122,872.22 97,963,750.00 Sub-total of cash inflows 208,122,872.22 382,963,750.00 Repayment of borrowings 118,000,000.00 220,000,000.00 Distribution of dividends or profits & interest expenses 7,551,641.69 9,253,847.45 Cash paid for other financing activities 140,000,000.00 140,000,000.00 Sub-total of cash outflows 265,551,641.69 369,253,847.45 Net cash flows from financing activities -57,428,769.47 13,709,902.55 4. Effects of foreign exchange rate changes on cash -299,085.97 -539,983.94 5.Net increases in cash and cash equivalents -42,216,221.54 29,359,909.44 Add: cash and cash equivalent, at the beginning of year 118,675,591.71 70,822,241.27 6.Cash and cash equivalent at the end of the year 76,459,370.17 100,182,150.71 2 Audited Report The Q1 Report is not audited. 11