Wafangdian Bearing Company Limited 2017 Midyear Report
Wafangdian Bearing Company Limited
2017 Midyear Report
2017-34
August 18, 2017
Wafangdian Bearing Company Limited 2017 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.
Besides the following directors, all the other directors attended the Board meeting and discussed the report.
Name Post Reasons Assignee name
Zhang
director Busy work Sun Maolin
Xinghai
Wan Shouyi Independent director Busy work Liu Yuping
Tang Yurong director Busy work Fang Bo
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 Mr. Wang Jiyuan
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 2017 Midyear Report
Table of Contents
Chapter I. Important Prompts, Table of Contents, and Definitions................................................................. 1
Chapter II.Company Profile.....................................................................................................................................3
Chapter III. Financial Highlights..........................................................................................................................4
Chapter IV Directors Report....................................................................................................................................5
ChapterⅤ Significant Events................................................................................................................................10
ii、The related business on asset purchase and sales............................................................................... 15
iii. Major related business on jointly investment...................................................................................... 15
iv、Credit and Debt with relevant parties................................................................................................ 15
V. Other important related business.......................................................................................................... 15
X. Commitment made by sharehoder with over 5% shares in the report or happen before but last to the
report..................................................................................................................................................................15
ChapterⅥ. Changes in Capital Stock and Shareholders...........................................................................................16
ChapterⅦ. Relevant information about preferred stock....................................................................................17
ChapterⅧ. Directors, Supervisors, Senior Management and Staff...................................................................17
Chapter VIII. Financial Report..................................................................................................................................18
I. Audit Report................................................................................................................................................... 18
IV. Basis for the preparation of financial statements........................................................................................29
Government subsidy item....................................................................................................................................... 59
Opening Balance...................................................................................................................................................... 59
Increase..................................................................................................................................................................... 59
Liaozhou Industry development................................................................................................................................ 59
subsidies.....................................................................................................................................................................59
Compensation for Da Lian plants moving................................................................................................................ 59
Development of intelligent manufacturing equipment subsidies..............................................................................59
Total...........................................................................................................................................................................59
Government subsidy item....................................................................................................................................... 62
Opening Balance...................................................................................................................................................... 62
Total.......................................................................................................................................................................... 63
Profit or loss from debts restructuring.......................................................................................................................74
Effect from income tax.............................................................................................................................................. 74
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Wafangdian Bearing Company Limited 2017 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 1,2017–June 30,2017
Liaozhou Co.,Ltd Defined as Wazhou Liaoyang Bearing Manufacture Co.,Ltd
Dalian motor Defined as Dalian motor Bearing Co.,Ltd
SRB company Defined as Wazhou spherial roller bearing company limited
The Board of Directors Defined as Wafangdian Bearing Company Limited The Board of
Directors
The Supervisory Committee Defined as Wafangdian Bearing Company Limited The
Supervisory Committee
Wafangdian Bearing Company Limited The
The Shareholders’Meeting Defined as
Shareholders’Meeting
Shen Jiao Suo Defined as Shen Zhen Stock Exchange
SRC Defined as China Securities Regulatory Commission
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Wafangdian Bearing Company Limited 2017 Midyear Report
Chapter II.Company Profile
I. Company Information
Abbreviated name of the Stock code: 200706
Wazhou B
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 Chinese
瓦轴股份公司
name
English name of the
Wafangdian Bearing Company Limited
Company
Abbreviation of English
WBC
name
Legal representative of the
Meng Wei
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, Wafangdian City, No. 1 Beigongji Street, Wafangdian City,
Correspondence address
Liaoning Province, China. Liaoning 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
2016annual report.
ii.Place for information disclosure
In the report period the place for information disclosure is no change. is no change.Detials can be seen in 2016 annual report.
IV Financial Highlights
Are there any retrospective adjustments or restatement of financial information of previous year due to change of accounting
4
Wafangdian Bearing Company Limited 2017 Midyear Report
policies or correcting of accounting errors?
[ ] Yes [V] No
In RMB Yuan
+/-（％）comparing with the
current period previous period
previous period
Turnover(RMB) 1,135,500,575.33 1,125,455,031.98 0.89%
Net profit attributable to shareholders of the
2,633,635.55 -44,024,185.93 -105.98%
listed company(Yuan)
Net profit attributable to the shareholders of
the listed company and after deducting of -1,562,254.31 -55,263,473.29 -97.17%
non-recurring gain/loss(RMB)
Net Cash flow generated by business
-76,606,258.56 -8,389,665.15 813.10%
operation (RMB)
Basic earnings per share(Yuan/share) 0.007 -0.11 -106.36%
Diluted earnings per share(Yuan/share) 0.007 -0.11 -106.36%
Net return on equity(%) 0.19% -3.32% 3.51%
End of 2017.06.30 End of 2016.12.31 Changed over last year (%)
Total Assets (RMB) 3,504,897,240.39 3,553,947,227.09 -1.38%
Owner’s Equity Attributed to Shareholders of
1,381,971,561.10 1,379,337,925.55 0.19%
ListedCompany(RMB)
V. Differences in accounting information under IAS and domestic accounting standard
No difference
VI. Non-recurring gain/loss items and amounts
In RMB Yuan
Items Amount Remarks
Gain/loss of non-current assets (includes the neutralized part of the
10,771.00
asset impairment provision drawn already)
Gains and losses included in the current period of government
subsidies, excluding those government grants which are closely related
2,423,777.94
to normal business and in line with national policy, or in accordance with
fixed standards or quantities
Debt restructuring gains and losses 1,356,259.02
Other non-business income and expenditures other than the above 752,323.50
Influenced amount of income tax 347,241.60
Total 4,195,889.86 --
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
Chapter III Business Summary
I Principal Businesses in the Reporting Period
The scope of operation is: manufacture and sales of bearings, bearing components mechanical equipment, bearing
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Wafangdian Bearing Company Limited 2017 Midyear Report
maintenance and technology service, automobile parts and fittings and other related products, lease of mechanical equipment
and buildings, and inspection of bearings and other related mechanical equipment and measure instruments.
Company has strong manufacturing capability and quality assurance capabilities, extensive services in railway, automobile,
metallurgy, mining and other industries and fields.
II.Significant Changes in the Prime Assets
Inapplicable
III.Analysis on Core Competitiveness
As the country's largest bearing technology and product r&d and manufacturing base, company has accumulated more than
seventy years practice experience in the field of bearings and related areas, set up perfect bearing technology innovation
system, maintain close cooperation with domestic scientific research institutes, colleges and universities. As the main drafter
of bearing industry a number of standard, company control the latest technology development trend in the industry. In
technology research and development, product manufacturing, marketing , customer services and other aspects have
established a significant advantage.
Company improve responsiveness to the market and customer personalized demand, in line with customer's
personalized design and needs of manufacturing processes balancing cost, delivery time and customer,
The company has complete product service system and 24-hour dynamic service ability product operating site. And was
praised with a good image of the "ten value-added services" by the majority customers. Company has strong manufacturing
capability and quality assurance capabilities, extensive services in railway, automobile, metallurgy, mining, and other
industries and fields.
Company has established strategic cooperative relations with key customers in domestic equipment applications, carry out
the depth of marketing through involvement in customer value engineer, set firmly up the company's brand and influence in
the domestic bearing market, the company has won the certification qualification of important target markets in the
international market , the international popularity established preliminary.
Chapter IV Discussion and Analysis of the Management
I. Overview
At the end of June 30, company's total assets is 3.50490 billion Yuan, which decrease1.38% compared with the beginning of
this year; Net assess attributing to shareholders of listed company 1.38197 billion Yuan, increased byv0.19% compared with
the beginning of this year; Operating income is 1.13550 billion Yuan, increase by 0.89% compared with the same period last
year; Net profit of attributing to shareholders of the parent company is 2.63 million Yuan, in the last year was the lost is
44.02million Yuan.
II Analysis on Principal Businesses
1. General
Refer to “I. General” of “Discussion and Analysis of the Management”
2. Revenue and Costs
(1)Revenue
In RMB Yuan
Item Report period Last report period Changed by %YoY Change reason
Business Income 1,135,500,575.33 1,125,455,031.98 0.89%
Business Cost 1,004,195,641.99 1,043,602,026.69 -3.78%
Sales Expenses 76,020,179.92 84,742,685.88 -10.29%
Management Expenses 31,245,721.82 36,646,177.56 -14.74%
Financial Expenses 16,016,268.75 12,390,741.72 29.26%
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Wafangdian Bearing Company Limited 2017 Midyear Report
Tax Expenses
Spending on research and development
46,000,000.00 45,000,000.00 2.22%
of the business income ratio
Net Cash Flows from Operating
-76,606,258.56 -8,389,665.15 813.10%
Activities
Net Cash Flows from Investing Activities -1,449,577.77 -25,642,335.69 -94.35%
Net Cash Flows from Financing
34,930,007.77 68,025,342.68 -48.65%
Activities
Net Increase in Cash and Cash
-43,617,574.73 35,385,469.18 -223.26%
Equivalents
The profit structure or source change greatly
□Applicable √Inapplicable
Main business composition
In RMB Yuan
+/-(%) of
+/-(%) of
Operating income Operating cost BOI operating +/-(%) of BOI
operating cost
income
By Industries
Export 149,614,913.99 128,611,696.79 14.04% -19.30% -25.15% 6.71%
Civil
Including: Traffic
266,745,992.99 254,479,525.24 4.60% -14.79% -17.67% 3.34%
Bearing
Special Bearing 224,180,996.10 199,523,534.06 11.00% -4.55% -4.73% 0.16%
Common
277,694,289.63 214,493,584.51 22.76% 5.17% -4.08% 7.45%
Bearing
Industrial income 67,931,900.72 65,453,889.94 3.65% 169.69% 112.21% 26.10%
On Products
Bearing 918,236,192.71 797,108,340.60 13.19% -7.93% -12.78% 4.83%
Industry
67,931,900.72 65,453,889.94 3.65% 169.69% 112.21% 26.10%
operation
Region
Civil 836,553,179.44 733,950,533.75 12.26% -0.07% -5.05% 4.60%
Foreign 149,614,913.99 128,611,696.79 14.04% -19.30% -25.15% 6.71%
III . Analysis on Non-Principal Businesses
None
IV. Situation of assets and liabilities
1. Major change in asset item
End of 2017.06.30 End of 2016.06.30
Percentage of Statement on major
Percent in Percent in
Amount Amount change(%) change
total asset total asset
Monetary
111,589,576.25 3.18% 137,341,499.74 3.90% -0.72%
capital
Account
1,311,182,169.81 37.41% 1,023,728,246.54 29.10% 8.31%
receivable
Inventories 767,894,842.95 21.91% 1,023,253,563.94 29.10% -7.19%
Fixed assets 740,842,980.06 21.14% 616,407,430.76 17.50% 3.64%
Construction in
205,126,816.36 5.85% 328,735,373.03 9.30% -3.45%
process
Short term loan 654,900,000.00 18.69% 468,000,000.00 13.30% 5.39%
Long term loan 230,000,000.00 6.50% -6.50%
V. Investment
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Wafangdian Bearing Company Limited 2017 Midyear Report
1. Significant non-equity investment in process in the reporting period
Unit:RMB
Invesm
Fix Total Reasons
ent Accumu
asset The Anticipa income of the
Investm amount lated Capital Progres Disclose Disclose
Item investm item’s ted at the dfiirence
ent way in the investm source s Date index
ent or industry income end of between
report ent
not 2016 plan and
peirod
actual
Reform on Bearing 200,00 120,00 Have not
40,690, 40,690, Self-rai
industrial other Yes manufa 85.00% 0,000.0 0,000.0 been fully
000.00 000.00 sed
bearings cture 0 0 operate
合计 -- -- -- -- -- --
VI. Sales of Significant Assets and Equity
1. Sales of Significant Assets
None
2. Sales of Significant Equity
Inapplicable
VII. Analysis on Principal Subsidiaries and Mutual Shareholding Companies
Leading
Operating
Company Company Principal products Total assets, in Net assets Turnover in Net profit (in
profit (in
name type business and CNY (CNY) CNY CNY)
CNY)
services
Product and
Sale
Liaoyang
Bearing and 19,350,0
Bearing Subsidiary
machine-ele 00.00
company
ctrical 113,439,406.9 -49,380,045 64,355,936.
equipment 6 .04 03 -1,975,004.16 -1,706,153.02
Dalian Product and
10,000,0
Electrical Subsidiary Sale 122,371,439.1 23,225,792. 82,118,010.
00.00
Equipment Bearing 0 08 65 1,097,464.09 1,097,464.09
Wzhou
precision Product and
spherical Sales
194,000,
roller Subsidiary Spherical
000.00
bearing(Wafa Roller
ngdian) Bearing 267,884,676.8 221,571,33 61,215,256.
Co.,Ltd. 9 0.72 92 -7,964,471.64 -7,896,314.97
VIII. Structurized Entities Controlled by the Company
Inapplicable
IX. Estimates for operating results for January to September 2017
Inapplicable
XThe company faces risks and response measures
With the world "manufacturing center" to the transfer of China, China's bearing industry, the
competitive environment is more hot. World-class bearing enterprises have built manufacturing plants in
China, the world's eight multinational bearing group in China, a number of factories, monopoly of most
of the domestic high-end market, these advantages with high-quality products, advanced service
concept, the use of local enterprises Of the large-scale expansion of sales channels, China's bearing
industry continued to squeeze the living space and profit margins.
The current cost of raw material accessories rose sharply, to bring great pressure on the bearing
business, rising costs, profit margins narrow the contradiction is still outstanding. From the corporate
side, the Chinese economy is now in the transition stage, the advantages of traditional manufacturing is
gradually reduced, bearing steel and other raw materials and water, electricity, land and other means of
production costs, labor costs are rising. From the client to see, customers are the cost of the transfer to
8
Wafangdian Bearing Company Limited 2017 Midyear Report
the upstream enterprises, bearing earnings narrowing and other issues have become increasingly
prominent. Since the first half of 2017, China's economy has maintained a slow stabilization, steady
and good momentum, the structural growth of the economy highlights the bright spot, new industries
and high-tech industries continued to grow, the overall market demand to maintain steady growth.
Especially with the deepening reform of the country, "all the way" strategy to promote a large number of
key projects such as the opening of the construction, China's equipment manufacturing industry
ushered in a new development opportunities, the Chinese bearing industry also ushered in a rare
domestic alternative market.
The company in the economic environment is gradually realized from the original production-oriented to
the demand-oriented change, "the structure in the reform optimization, kinetic energy in the conversion
to enhance the quality of the upgrade in the transition" has become the company in the new normal
development of new features and Bright spot. Companies closely around the "profit growth and cash
flow profits," the operating principle of customer demand as the center, improve product quality and
service quality, production and management to achieve steady development, the quality of operation to
stabilize the better. The company to adjust the structure, improve the quality, to adapt to market and
customer needs; to promote lean management, to management to efficiency; implementation of "cost
reduction" measures to achieve profit growth; strengthen capital control, cash flow profits.
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Wafangdian Bearing Company Limited 2017 Midyear Report
ChapterⅤ Significant Events
I、The relevant annual general meeting and extraordinary general meeting held in the report
period
i.Shareholders' General Meeting in the report period
Investor Meeting Disclosure Disclosure
Meeting session Type
participation ratio Date Date index
2017 First
Extraordinary
Extraordinary http//www,cni
Shareholer’s 80.31% 2017.03.16 2017.03.17
Shareholer’s nfo,com,cn
Meeting
Meeting
2016 Annual Annual
http//www,cni
Shareholer’s Shareholer’s 80.31% 2017.05.18 2017.05.19
nfo,com,cn
Meeting Meeting
ii.The shareholders of the preferred shareholders who have resumed the voting are required
to convene an extraordinary general meeting
II. Preplan for Profit Distribution and Conversion of Capital Reserve into Share Capital in the
Reporting Period
Inapplicable
III Commitments finished in implementation by the Company, shareholders, actual
controller,acquirer, directors, supervisors, senior executives or other related parties in the
reporting period and commitments unfinished in implementation at the end of the reporting
period
Inapplicable
IV Engagement/Disengagement of CPAs
Inapplicable
V 、 Notice of the Board of Directors and the Supervisory Committee on the "non-standard
audit report" of the accounting firm during the reporting period
Inapplicable
VI 、 The Board of Directors of the previous year, "non-standard audit report" the relevant
circumstances of the note
Inapplicable
VII. Matters concerning Bankruptcy Reorganization
Inapplicable
VIII. Significant Lawsuits and Arbitrations
Inapplicable
IX. Penalty and Rectification
Inapplicable
X. Integrity of the Company and its Controlling Shareholder and Actual Controller
Inapplicable
XI. Implementation of the Company’s Equit Incentive Plan, Employee Stock Ownership Plan or
other Employee Incentive Measures
Inapplicable
XII. Important Related Transactions
1.The relate transactions related to the day-to-day operations.
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Wafangdian Bearing Company Limited 2017 Midyear Report
The
More
Percent
Relativ Approv than
age of
e al the The Way Disclos
Relative Principle Relativ accoun Market Disclosu
Relative parties Relationship Content Amoun amount approv Of ure
type of price e Price ted for price re Index
t(RMB’ (RMB’0 ed Account Date
similar
0000) 000) amount
deals(
or not
%)
Other Companies
controlled by the Merchandis
Cash
Wazhou precision same controlling e Component Justice and Market
share holders and 225 0.24% 300 No Payment or
Steel Ball Company Procureme s Equity price
the ultimate The Knot
nt
controlling party
Other Companies
controlled by the
Cash
Wazhou precision same controlling Sales of Goods and Justice and Market
100 0.09% 450 No Payment or
Steel Ball Compan share holders and goods Materials Equity price
The Knot
the ultimate
controlling party
Other Companies
controlled by the
Cash
Wazhou precision same controlling Justice and
Land rent Land rent cost 10 0.01% 10 No Payment or
Steel Ball Compan share holders and Equity
The Knot
the ultimate
controlling party
Other Companies
controlled by the
Cash
Wazhou precision same controlling Provide Heat Justice and Market
76 0.07% 180 No Payment or
Steel Ball Compan share holders and Service treatment Equity price
The Knot
the ultimate
controlling party
Other Companies
controlled by the Merchandis
Cash
Wazhou precision same controlling e Component Justice and Market
7,794 8.48% 15,000 No Payment or
forging Ltd. share holders and Procureme s Equity price
The Knot
the ultimate nt
controlling party
11
Wafangdian Bearing Company Limited 2017 Midyear Report
Other Companies
controlled by the
Cash
Wazhou precision same controlling Sales of Justice and Market
Materials 8,838 7.78% 6,000 是 Payment or
forging Ltd. share holders and goods Equity price
The Knot
the ultimate
controlling party
Other Companies
controlled by the
Cash
Wazhou precision same controlling Justice and Market
House rent House rent 35 0.03% 130 No Payment or
forging Ltd. share holders and Equity price
The Knot
the ultimate
controlling party
Other Companies
controlled by the
Cash
Wazhou precision same controlling Justice and
Land rent Land rent cost 23 0.02% 80 No Payment or
forging Ltd. share holders and Equity
The Knot
the ultimate
controlling party
Other Companies
controlled by the Merchandis
Dalian Wazhou Cash
same controlling e Component Justice and Market
Manufacturing 681 0.71% 900 No Payment or
share holders and Procureme s Equity price
Equipment Co., Ltd The Knot
the ultimate nt
controlling party
Other Companies
controlled by the
Dalian Wazhou Cash
same controlling Goods Justice and Market
Manufacturing Product 271 0.29% 1,000 No Payment or
share holders and Procureme Equity price
Equipment Co., Ltd The Knot
the ultimate
controlling party
Other Companies
controlled by the
Dalian Wazhou Cash
same controlling Sales of Justice and Market
Manufacturing Materials 42 0.01% 120 No Payment or
share holders and goods Equity price
Equipment Co., Ltd The Knot
the ultimate
controlling party
Dalian Wazhou Other Companies Merchandis Cash
Machine Justice and Market
Manufacturing controlled by the e 72 0.08% 0 Yes Payment or
Machine Equity price
Equipment Co., Ltd same controlling Procureme The Knot
12
Wafangdian Bearing Company Limited 2017 Midyear Report
share holders and nt
the ultimate
controlling party
Other Companies
Wazhou Group controlled by the Merchandis
Cash
precision same controlling e Justice and Market
Product 3,565 3.88% 9,000 No Payment or
Transmission share holders and Procureme Equity price
The Knot
Bearing Co., Ltd the ultimate nt
controlling party
Other Companies
Wazhou Group controlled by the
Cash
precision same controlling Sales of Component Justice and Market
1,543 1.36% 4,500 No Payment or
Transmission share holders and goods s Equity price
The Knot
Bearing Co., Ltd the ultimate
controlling party
Other Companies
Wazhou Group controlled by the
Cash
precision same controlling Sales of Justice and Market
Materials 173 0.15% Yes Payment or
Transmission share holders and Materials Equity price
The Knot
Bearing Co., Ltd the ultimate
controlling party
Other Companies
Wazhou Group controlled by the
Cash
Precision special same controlling Justice and
Land rent Land rent Cost 4 0.00% 9 No Payment or
Bearing Company share holders and Equity
The Knot
Limited the ultimate
controlling party
Other Companies
Wazhou Group controlled by the
Cash
Precision special same controlling Sales of Justice and Market
Materials 26 0.02% 50 No Payment or
Bearing Company share holders and Materials Equity price
The Knot
Limited the ultimate
controlling party
Other Companies
Wazhou Group controlled by the
Cash
Precision special same controlling Machine Machine Justice and
Cost 0 0.00% 3 No Payment or
Bearing Company share holders and rent rent Equity
The Knot
Limited the ultimate
controlling party
13
Wafangdian Bearing Company Limited 2017 Midyear Report
Other Companies
Wazhou Group controlled by the
Cash
Precision special same controlling House House Justice and Market
26 0.02% 55 No Payment or
Bearing Company share holders and rent rent Equity price
The Knot
Limited the ultimate
controlling party
Other Companies
Wazhou Group controlled by the
Cash
Precision special same controlling Provide Heat Justice and Market
30 0.03% 65 No Payment or
Bearing Company share holders and Service treatment Equity price
The Knot
Limited the ultimate
controlling party
Other Companies
controlled by the
Machine Cash
Equipment technical same controlling Justice and Market
Procureme Machine 655 0.71% 500 Yes Payment or
engineering share holders and Equity price
nt The Knot
the ultimate
controlling party
Wafangdian Tongda Other Related Merchandis
Cash
Bearing party e Justice and Market
Product 3,597 3.91% 7,000 No Payment or
Manufacturing Co., Procureme Equity price
The Knot
Ltd nt
Wafangdian Tongda Other Related
Cash
Bearing party Sales of Justice and Market
Materials 23 0.02% 0 Yes Payment or
Manufacturing Co., Materials Equity price
The Knot
Ltd
Merchandis
Da Lian Wazhou Other Related Cash
e Component Justice and Market
Fengyuan Machine party 4,075 4.31% 11,000 No Payment or
Procureme s Equity price
Co.,Ltd The Knot
nt
Da Lian Wazhou Other Related Cash
House House Justice and Market
Fengyuan Machine party 5 0.00% 10 No Payment or
rent rent Equity price
Co.,Ltd The Knot
Merchandis
Da Lian Wazhou Jin Other Related Cash
e Component Justice and Market
Zhou Machine party 3,288 3.57% 0 Yes Payment or
Procureme s Equity price
Co.,Ltd The Knot
nt
Da Lian Wazhou Jin Other Related House House Justice and Market Cash
40 0.04% 77 No
Zhou Machine party rent rent Equity price Payment or
14
Wafangdian Bearing Company Limited 2017 Midyear Report
Co.,Ltd The Knot
Da Lian Wazhou Jin Other Related Cash
Provide Heat Justice and Market
Zhou Machine party 9 0.01% 30 No Payment or
Service treatment Equity price
Co.,Ltd The Knot
Other Companies
controlled by the Cash
Wazhou group (USA) same controlling Sales of Justice and Market
Product 3,346 2.95% 12,500 No Payment or
bearing co., LTD share holders and the goods Equity price
ultimate controlling The Knot
party
Other Companies
controlled by the Merchandis
Wazhou group Cash
same controlling e Justice and Market
high-end automobile Product 6,403 6.97% 20,000 No Payment or
share holders and the Procureme Equity price
bearing co., LTD ultimate controlling The Knot
nt
party
Other Companies
Wazhou group controlled by the Cash
same controlling Sales of Justice and Market
high-end automobile Product 8,402 7.40% 6,500 Yes Payment or
share holders and the goods Equity price
bearing co., LTD ultimate controlling The Knot
party
Other Companies
Wazhou group controlled by the Cash
same controlling Sales of Justice and Market
high-end automobile Materials 135 0.12% 700 No Payment or
share holders and the Materials Equity price
bearing co., LTD ultimate controlling The Knot
party
Other Companies
Wazhou group controlled by the Cash
same controlling Sales of Component Justice and Market
high-end automobile 4,429 3.89% 3,500 Yes Payment or
share holders and the goods s Equity price
bearing co., LTD ultimate controlling The Knot
party
Other Companies
Wazhou group controlled by the Cash
same controlling House House Justice and Market
high-end automobile 258 0.23% 260 No Payment or
share holders and the rent rent Equity price
bearing co., LTD ultimate controlling The Knot
party
Wazhou group Other Companies Cash
controlled by the Machine Machine Justice and
high-end automobile Cost 438 0.39% 0 Yes Payment or
same controlling rent rent Equity
bearing co., LTD share holders and the The Knot
15
Wafangdian Bearing Company Limited 2017 Midyear Report
ultimate controlling
party
Other Companies
controlled by the Merchandis
Wazhou Group Cash
same controlling e Component Justice and Market
Precision Roller 4,782 5.20% 9,500 No Payment or
share holders and Procureme s Equity price
limited company The Knot
the ultimate nt
controlling party
Other Companies
controlled by the
Wazhou Group Cash
same controlling Sales of Component Justice and Market
Precision Roller 358 0.32% 0 Yes Payment or
share holders and goods s Equity price
limited company The Knot
the ultimate
controlling party
Other Companies
controlled by the
Wazhou Group Cash
same controlling House House Justice and Market
Precision Roller 26 0.02% 55 No Payment or
share holders and rent rent Equity price
limited company The Knot
the ultimate
controlling party
Other Companies
controlled by the
Wazhou Group Cash
same controlling Machine Machine Justice and
Precision Roller Cost 492 0.43% 950 No Payment or
share holders and rent rent Equity
limited company The Knot
the ultimate
controlling party
Other Companies
controlled by the
Wazhou Group Cash
same controlling Justice and
Precision Roller Land rent Land rent Cost 10 0.01% 20 No Payment or
share holders and Equity
limited company The Knot
the ultimate
controlling party
Other Companies
controlled by the
Wazhou Group Cash
same controlling Provide Heat Justice and Market
Precision Roller 858 0.76% 1,000 No Payment or
share holders and Service treatment Equity price
limited company The Knot
the ultimate
controlling party
Wazhou Group Other Companies Sales of Merchandis Justice and Market 2,115 1.86% 1,500 Yes Cash
16
Wafangdian Bearing Company Limited 2017 Midyear Report
Precision Roller controlled by the Merchandis e Equity price Payment or
limited company same controlling e The Knot
share holders and
the ultimate
controlling party
Other Companies
controlled by the Merchandis
Wazhou Group Cash
same controlling e Component Justice and Market
Precision Retainer 2,793 3.04% 5,000 No Payment or
share holders and Procureme s Equity price
Limited Company The Knot
the ultimate nt
controlling party
Other Companies
controlled by the
Wazhou Group Sales of Cash
same controlling Merchandis Justice and Market
Precision Retainer Merchandis 158 0.14% 850 No Payment or
share holders and e Equity price
Limited Company e The Knot
the ultimate
controlling party
Other Companies
controlled by the
Wazhou Group Cash
same controlling Machine Machine Justice and
Precision Retainer Cost 107 0.09% 210 No Payment or
share holders and rent rent Equity
Limited Company The Knot
the ultimate
controlling party
Other Companies
controlled by the
Wazhou Group Cash
same controlling Justice and
Precision Retainer Land rent Land rent Cost 13 0.01% 30 No Payment or
share holders and Equity
Limited Company The Knot
the ultimate
controlling party
Other Companies
controlled by the
Wazhou Group Cash
same controlling Sales of Component Justice and Market
Precision Retainer 23 0.02% 0 Yes Payment or
share holders and goods s Equity price
Limited Company The Knot
the ultimate
controlling party
Other Companies
Wazhou Group Cash
controlled by the Justice and Market
Precision Retainer House rent House rent 38 0.03% 72 No Payment or
same controlling Equity price
Limited Company The Knot
share holders and
17
Wafangdian Bearing Company Limited 2017 Midyear Report
the ultimate
controlling party
Other Companies
Wazhou Group controlled by the Merchandis
Cash
same controlling e Justice and Market
Wind power Bearing Product 6,790 7.39% 15,000 No Payment or
share holders and Procureme Equity price
Ltd The Knot
the ultimate nt
controlling party
Other Companies
Wazhou Group controlled by the
Cash
same controlling Sales of Justice and Market
Wind power Bearing Product 1,495 1.32% 4,500 No Payment or
share holders and goods Equity price
Ltd The Knot
the ultimate
controlling party
Other Companies
Wazhou Group controlled by the
Sales of Cash
same controlling Merchandis Justice and Market
Wind power Bearing Merchandis
e Equity price
18 0.02% 500 No Payment or
share holders and
Ltd e The Knot
the ultimate
controlling party
Other Companies
controlled by the Merchandis
Kugel- und Cash
same controlling e Justice and Market
Rollenlagerwerk Goods 0 0.00% 500 No Payment or
share holders and Procureme Equity price
Leipzig GmbH The Knot
the ultimate nt
controlling party
Other Companies
controlled by the
Kugel- und Cash
same controlling Sales of Justice and Market
Rollenlagerwerk Product 155 0.14% 50 Yes Payment or
share holders and goods Equity price
Leipzig GmbH The Knot
the ultimate
controlling party
Other Companies
controlled by the
Wafangdian bearing Power Cash
same controlling Justice and
Power Limited Procureme warter Cost 8 0.01% 13 No Payment or
share holders and Equity
Company nt The Knot
the ultimate
controlling party
Wafangdian bearing Other Companies Power electrictity Justice and Cost 870 0.95% 1,200 No Cash
18
Wafangdian Bearing Company Limited 2017 Midyear Report
Power Limited controlled by the Procureme Equity Payment or
Company same controlling nt The Knot
share holders and
the ultimate
controlling party
Other Companies
controlled by the
Wafangdian bearing Power Govern Cash
same controlling Justice and
Power Limited Procureme heating ment 161 0.18% 260 No Payment or
share holders and Equity
Company nt price The Knot
the ultimate
controlling party
Other Companies
Wazhou Group controlled by the
Technology Cash
Bearing Engineering same controlling Receive Justice and Agree
Developme 151 0.16% 0 Yes Payment or
technology research share holders and Service Equity ment
nt Service The Knot
center the ultimate
controlling party
Other Companies Land Land
controlled by the machine machine
Wazhou Group Cash
same controlling Justice and
Cost 0 0.00% 880 No Payment or
（auto） share holders and Equity
The Knot
the ultimate
controlling party
The controlling
Cash
share holders and Lease of Lease of Justice and Market
Wazhou Group 512 0.56% 1,000 No Payment or
the ultimate Houses Houses Equity price
The Knot
controlling party
The controlling
Cash
share holders and Justice and
Wazhou Group Lease of land Lease of land Cost 55 0.06% 520 No Payment or
the ultimate Equity
The Knot
controlling party
The controlling
Cash
share holders and Lease of Lease of Justice and
Wazhou Group Cost 124 0.14% 65 Yes Payment or
the ultimate Houses manchine Equity
The Knot
controlling party
The controlling
Sales of Cash
share holders and Merchandis Justice and Market
Wazhou Group Merchandis 11 0.01% 0 Yes Payment or
the ultimate e Equity price
e The Knot
controlling party
19
Wafangdian Bearing Company Limited 2017 Midyear Report
The controlling
Cash
share holders and Justice and Market
Wazhou Group Land house house rent 0 0.00% 350 No Payment or
the ultimate Equity price
The Knot
controlling party
The controlling
Security Cash
share holders and Provide Justice and Agree
Wazhou Group and Fire 107 0.12% 240 No Payment or
the ultimate Service Equity ment
Service The Knot
controlling party
The controlling
Announce Cash
share holders and Provide Justice and Agree
Wazhou Group ment 0 0.00% 70 No Payment or
the ultimate Service Equity ment
Service The Knot
controlling party
The controlling
Technology Cash
share holders and Provide Justice and Agree
Wazhou Group Developme 0 0.00% 850 No Payment or
the ultimate Service Equity ment
nt Service The Knot
controlling party
The controlling
Cash
share holders and Provide Justice and Agree
Wazhou Group Trademark 93 0.10% 800 No Payment or
the ultimate Service Equity ment
The Knot
controlling party
The controlling
Cash
share holders and Sales of Component Justice and Market
Wazhou Group 0 0.00% 3,400 No Payment or
the ultimate goods s Equity price
The Knot
controlling party
149,31
-- 80,960 -- -- -- -- --
4
Details of the rejection of the goods
already sold in big amount
non
In case the total amount of the regularrelated transaction incurred in thereporting
period has been predicted basedon categories, state the actual non
implementation of the in the reportingperiod (if any)
Cause of the big difference between the
transaction price and the market reference In-applicable
price. (if applicable)
20
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-yearal Report
2. Related transactions concerning acquisition and sales of assets or equity
Inapplicable
3. Related transactions concerning joint investment in foreign countries
Inapplicable
4. Current Associated Rights of Credit and Liabilities
Applicable
Whether there are non - operating related debt and debt transactionsInapplicable
Inapplicable
5. Other Major Related Transactions
Inapplicable
XIII. Non-operational Occupancy of the Company’s Capital by the Controlling Shareholder
and its Related Parties
Inapplicable
XIV. Important Contracts and Implementation
1. Custody, Contacting and Leases
(1) Custody
Inapplicable
(2) Contracting
Inapplicable
(3) Leases
.Related lease: this part of the contents of the twelve, related party transactions and related party
transactions 5 (3) related to the lease"
2. Significant Guarantees
Inapplicable
3. Other Major Contracts
Inapplicable
XV. Social Responsibility
In mid-May this year, we received a notice from the Dalian Municipal Government documents,
designated Dalian City, poverty alleviation units by the city of Shuangshan Bay Shuangshan Village
adjusted to tile city camel mountain village Longhe village.
According to the spirit of the document and the specific requirements of the municipal government,
in order to better implement the spirit of the work of helping the central, provincial and municipal
governments to help the poor, Wazhou Group held a special meeting to study the deployment of
poverty alleviation measures, Poverty alleviation, medical aid, poverty alleviation, trade poverty
alleviation, etc., and regularly visit the poverty alleviation units, to understand the mastery of the
poverty alleviation program, the use of the existing advantages and conditions of the
implementation of employment poverty alleviation, vocational skills training poverty alleviation, The
situation of the object of poverty alleviation, find out the base, to develop the corresponding poverty
alleviation measures, then we and the help units were contacted, in late June, the help unit and we
had a contact communication, the initial agreement reached.
XVI. Notes to Other Signficiant Events
Inapplicable
XVII. Significant Events of the Company’s Subsidiaries
Inapplicable
21
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-yearal Report
ChapterⅥ. Changes in Capital Stock and Shareholders
I. Changes in Capital Stock
Before Changes Changes in Shares After Changes
Conversi
New
Shares Ratio Bonus on of Ratio
Shares Others Subtotal Shares
Shares Reserves
Issued
to Share
244,000, 244,000,
1.Non-tradable Shares 60.61% 60.61%
000 000
244,000, 244,000,
a. Promoters’ Shares 60.61% 60.61%
000 000
Including：State-owned 244,000, 244,000,
60.61% 60.61%
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
Reason of Changes of Shares
□Applicable √ Inapplicable
The basic situation of stock change.
□Applicable √ Inapplicable
The transfer of shares of
□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
Other information as the Company considers necessary to be disclosed or demanded by the securities
regulatory
authority for disclosing:
□Applicable √ Inapplicable
II. Issuing and Listing
III. Shareholders and Actual Controlling Shareholder
1. Number of Shareholders and Shares
Unit: Share
Total number of shareholder at the end Total number of shareholder at the end of report
6,876 0
of report period period with preferred stock
Shareholders with 5% or above Shares
Current Impawned or Frozen Shares
Ratio Total shares Increase or Non-current
shares
Name Nature Decrease in shares held
held
（%） held
hereportperiod
Status Amount
Wafangdian
State-owned 244,000,0
Bearing Group 60.60% 244,000,000
shareholder 00
Corporation
AKTIEBOLAGET Foreign 19.70% 79,300,000
22
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-yearal Report
SKF shareholder
BOCI
Foreign
SECURITIES 1.26% 5,056,953
shareholder
LIMITED
Domestic
Huang Junyue 1.16% 4,680,000
shareholder
Domestic
Hu Xiaofeng 0.47% 1,879,277
shareholder
GUOTAI JUNAN
SECURITIES(HO Foreign
0.36% 1,454,840
NGKONG) shareholder
LIMITED
Domestic
Jin Yunhua 0.33% 1,311,256
shareholder
MAN,KWAI WING Foreign private
0.18% 713,101
文贵荣 shareholder
Domestic
Zhou Jie 0.17% 684,200
shareholder
Domestic
Ma Yuancheng 0.15% 596,966
shareholder
Explanation for the Affiliated
Relations or United Action of the AKTIEBOLAGET SK is the strategic investor
Top Ten Shareholders
Notes to relationship or “action in
There was no relationship and consistent activities between the first big shareholder and other
concert”among the top ten
shareholders or the top ten common stock holders;
shareholders.
Top Ten Tradable Shareholders
Category of Shares
Name Current shares held at end of year
Categories Amount
Wafangdian Bearing Group Corporation 79,300,000 B 79,300,000
AKTIEBOLAGET SKF 5,056,953 B 5,056,953
BOCI SECURITIES LIMITED 4,680,000 B 4,680,000
Huang Junyue 1,879,277 B 1,879,277
Hu Xiaofeng 1,454,840 B 1,454,840
GUOTAI JUNAN B
1,311,256 1,311,256
SECURITIES(HONGKONG) LIMITED
Jin Yunhua 713,101 B 713,101
MAN,KWAI WING 文贵荣 684,200 B 684,200
Zhou Jie 596,966 B 596,966
Zhou Junlin 545,600 B 545,600
Explanation for the Affiliated Relations There was no relationship and consistent activities between the first big shareholder and
or United Action of the Top Ten other shareholders or the top ten common stock holders; The relationship among other
Shareholders and the Top Ten Tradable shareholders, top ten circulation shareholders, top ten circulation shareholders and other
Shareholders shareholders was not clear.
IV Change of Controlling Shareholder Actual Controller in the Report Period
□ Applicable √ Inapplicable
ChapterⅦ. Relevant information about preferred stock
ChapterⅧ. Directors, Supervisors, Senior Management and Staff
I. Shares holding change in Directors, Supervisors, Senior Management
Inapplicable
23
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-yearal Report
II. Changes of Directors, Supervisors and Senior Management
Name Position Type Date Reason
Li Shi Director resignment 2017.02.9 Work change
Sun Maolin GM resignment 2017.02.22 Work change
Wang Longjie Vice-GM resignment 2017.02.22 Work change
Zhang Li Independent Director resignment 2017.03.14 death
Wan Shouyi Independent Director resignment 2017.07.14 Work change
Zhao Yang GM engage 2017.02.24
Zhao Yang Director elected 2017.05.18
Zhang Shiyin Vice-GM engage 2017.02.24
Liang Shuang Independent Director elected 2017.05.18
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 111,589,576.25 184,416,042.97
Financial assets held-for-trading
Bills receivable 173,351,328.97 109,181,156.69
Account receivable 1,311,182,169.81 1,249,891,874.39
Account paid in advance 14,425,787.01 16,084,843.68
Interest receivable
Dividend reciivable
Other receivables 32,519,169.14 19,705,788.69
Inventory 767,894,842.95 842,429,282.92
Non-current assets due within 1 year
Other current assets 4,821,813.37 7,202,729.14
Total current assets 2,415,784,687.50 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 740,842,980.06 785,568,617.02
Construction in progress 205,126,816.36 194,439,963.77
Construction materials
Fixed assets disposal
Biological assets
Gas and petrol assets
Intangible assets 128,746,930.36 130,876,465.81
Development expenditure
Goodwill
Long-term prepaid expense 766,725.77 521,361.67
24
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-yearal Report
Deferred tax assets 11,629,100.34 11,629,100.34
Other non-current assets
Total non-current assets 1,089,112,552.89 1,125,035,508.61
Total assets 3,504,897,240.39 3,553,947,227.09
Current liabilities
Short-term loan 654,900,000.00 549,900,000.00
Note payable 308,199,565.90 425,514,610.26
Accounts payable 902,777,944.59 833,899,714.83
Accounts received in advance 28,535,884.77 26,959,477.14
Commission charge payable
Accrued payroll 17,028,885.61 17,256,851.42
Tax payable 9,492,811.73 19,141,230.94
Interest payable 420,000.00 927,000.00
Dividends payable
Other payables 104,627,629.71 111,790,682.03
Non-current liabilities due within I year 50,000,000.00 90,000,000.00
Other current liabilities 4,335,522.50 4,704,022.50
Total current liabilities 2,080,318,244.81 2,080,093,589.12
Non-current liabilities
Long-term loan 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 39,774,133.82 41,682,411.76
Deferred tax liabilities 939,295.96 939,295.96
Other non-current liabilities
Total non-current liabilities 42,607,434.48 94,515,712.42
Total liabilities 2,122,925,679.29 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 362,237,601.52 359,603,965.97
Difference of foreign currency translation
Equity attributable to parent company 1,381,971,561.10 1,379,337,925.55
Minority interest
Total owner’s equity 1,381,971,561.10 1,379,337,925.55
Total owner’s equity and liabilities 3,504,897,240.39 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 101,873,721.71 160,858,258.16
Financial assets held-for-trading
Bills receivable 170,319,399.31 105,343,542.29
Account receivable 1,311,298,475.95 1,271,216,667.68
Account paid in advance 10,553,901.13 14,150,176.66
Interest receivable
Dividend receivable
Other receivables 31,063,059.67 18,675,828.91
Inventory 700,975,783.64 781,029,612.11
25
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-yearal Report
Non-current assets due within 1 year
Other current assets 2,979,790.39 4,853,373.30
Total current assets 2,329,064,131.80 2,356,127,459.11
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 505,015,437.79 540,414,895.87
Construction in progress 204,811,647.96 194,408,579.15
Construction materials
Fixed assets disposal
Biological assets
Gas and petrol assets
Intangible assets 109,602,344.25 111,375,548.98
Development expenditure
Goodwill
Long-term prepaid expense 487,446.49 521,361.67
Deferred tax assets 10,355,933.09 10,355,933.09
Other non-current assets
Total non-current assets 1,043,856,707.25 1,070,660,216.43
Total assets 3,372,920,839.05 3,426,787,675.54
Current liabilities
Short-term loan 654,900,000.00 549,900,000.00
Note payable 308,199,565.90 425,514,610.26
Accounts payable 813,126,054.34 754,015,698.35
Accounts received in advance 27,955,583.03 26,840,178.68
Commission charge payable
Accrued payroll 10,104,778.40 10,295,412.34
Tax payable 6,301,600.02 15,496,981.29
Interest payable 420,000.00 927,000.00
Dividends payable
Other payables 65,222,753.16 72,962,085.99
Non-current liabilities due within I year 50,000,000.00 90,000,000.00
Other current liabilities 4,237,974.50 4,606,474.50
Total current liabilities 1,940,468,309.35 1,950,558,441.41
Non-current liabilities
Long-term loan 50,000,000.00
Debenture payable
Long-term payables
Special payables 296,698.98 296,698.98
Contingent liabilities
Deferred income 35,482,021.82 37,390,299.76
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 35,778,720.80 87,686,998.74
Total liabilities 1,976,247,030.15 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
Less: treasury share
Surplus reserve 131,442,909.11 131,442,909.11
Undistributed profit 376,952,456.53 368,820,883.02
Total owner’s equity 1,396,673,808.90 1,388,542,235.39
Total owner’s equity and liabilities 3,372,920,839.05 3,426,787,675.54
26
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-yearal Report
3. Consolidated Income Sheet.
Unit: RMB Yuan
Item Account for the current period Account for the prior period
1.Total operating income 1,135,500,575.33 1,125,455,031.98
Including: Operating revenue 1,135,500,575.33 1,125,455,031.98
Interest income
Handling charge and commission income
2.Total operating cost 1,137,410,071.24 1,182,078,050.33
Including: Operating cost 1,004,195,641.99 1,043,602,026.69
Interest expenses
Handling charge and commission income
Tax & surcharges for main operations 9,832,448.15 4,695,351.44
Selling expenses 76,020,179.92 84,742,685.88
Administrative expense 31,245,721.82 36,646,177.56
Financial expense 16,016,268.75 12,390,741.72
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"-") -1,909,495.91 -56,623,018.35
Add: Non-operating revenue 4,772,523.99 14,004,273.12
Including:income on disposal of non-current assets 44,573.04 4,649,046.02
Less: Non-operating cost 229,392.53 1,405,440.70
Including: loss on disposal of non-current assets 33,802.04 78,416.68
4.Total profit(loss with"-") 2,633,635.55 -44,024,185.93
Less: Income tax expenses
5. Net profit(Loss with"-") 2,633,635.55 -44,024,185.93
Net profit attributable to shareholders of parent company 2,633,635.55 -44,024,185.93
Minority interests
6. Other comprehensive returns
7. Total comprehensive returns 2,633,635.55 -44,024,185.93
Total comprehensive returns available for parent company 2,633,635.55 -44,024,185.93
Total comprehensive returns available for minority
shareholders
6.Earnings per share
(1) Basic earnings per share 0.007 -0.11
(2) Diluted earnings per share 0.007 -0.11
Chairman: Meng Wei General Accountant : Sun Najuan Accounting charger: Wang Jiyuan
4. Income Sheet of Parent Company.
Unit: RMB Yuan
Item Account for the current period Account for the prior period
1.Total operating income 1,121,747,641.74 1,139,151,566.77
Less:Operating cost 999,817,155.16 1,066,012,164.06
Tax & surcharges for main operations 8,636,001.96 4,099,633.44
Selling expenses 74,810,685.74 83,766,587.44
Administrative expense 18,388,929.30 23,712,562.59
Financial expense 16,060,266.15 12,403,674.03
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"-") 3,934,792.82 -50,844,121.83
27
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-yearal Report
Add: Non-operating revenue 4,407,063.16 12,178,115.07
Less: Non-operating cost 210,282.47 1,372,244.60
Including: loss on disposal of non-current assets
3.Total profit(loss with"-") 8,131,573.51 -40,038,251.36
Less: Income tax expenses
4. Net profit(Loss with"-") 8,131,573.51 -40,038,251.36
Net profit attributable to shareholders of parent company 8,131,573.51 -40,038,251.36
Minority interests
5. Other comprehensive returns
6. Total comprehensive returns 8,131,573.51 -40,038,251.36
7.Earnings per share
(1) Basic earnings per share 0.02 -0.10
(2) Diluted earnings per share 0.02 -0.10
5. 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 Provideing of services 512,413,730.92 553,562,725.50
Refund of taxes and fares
Other cash received relating to operating activities 1,373,744.39 3,957,803.39
Sub-total of cash inflows 513,787,475.31 557,520,528.89
Cash paid for goods and services 371,323,998.46 326,921,872.04
Cash paid to or on behalf of the employees 119,257,067.02 156,421,038.32
Tax payments 47,104,172.58 26,059,090.72
Other cash paid relating to operating activities 52,708,495.81 56,508,192.96
Sub-total of cash outflows 590,393,733.87 565,910,194.04
Net cash flows from operating activities -76,606,258.56 -8,389,665.15
2.Cash flows from investing activities
Cash received from return of investment
Cash received from investment incomes 240,000.00
Net cash received from disposal of fixed assets, intangible
4,885,900.00 10,000,000.00
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 4,885,900.00 10,240,000.00
Cash paid to acquire fixed assets, intangible assets and
6,335,477.77 35,882,335.69
other 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 6,335,477.77 35,882,335.69
Net cash flows from investment activities -1,449,577.77 -25,642,335.69
3.Cash flows from financing activities
Cash received from absorbing investment
Including: Cash received from increase in minority interest
Proceeds from borrowings 223,000,000.00 375,000,000.00
Other proceeds relating to financing activities 321,721,729.99 147,525,694.44
Sub-total of cash inflows 544,721,729.99 522,525,694.44
Repayment of borrowings 208,000,000.00 287,000,000.00
Distribution of dividends or profits & interest expenses 15,240,108.89 17,500,351.76
Including: dividends or profit paid to minority interest
Cash paid for other financing activities 286,551,613.33 150,000,000.00
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Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-yearal Report
Sub-total of cash outflows 509,791,722.22 454,500,351.76
Net cash flows from financing activities 34,930,007.77 68,025,342.68
4. Effects of foreign exchange rate changes on cash -491,746.17 1,392,127.34
5.Net increases in cash and cash equivalents -43,617,574.73 35,385,469.18
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 98,615,801.79 113,941,499.74
6. Cash Flow Statement Of Parent Company.
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 Providing of services 505,013,167.86 541,591,437.79
Refund of taxes and fares
Other cash received relating to operating activities 1,036,362.56 3,381,289.60
Sub-total of cash inflows 506,049,530.42 544,972,727.39
Cash paid for goods and services 386,834,924.59 356,059,070.83
Cash paid to or on behalf of the employees 93,936,635.19 128,163,845.74
Tax payments 39,398,824.49 20,179,431.19
Other cash paid relating to operating activities 48,664,314.64 52,713,413.47
Sub-total of cash outflows 568,834,698.91 557,115,761.23
Net cash flows from operating activities -62,785,168.49 -12,143,033.84
2.Cash flows from investing activities
Cash received from return of investment
Cash received from investment incomes 240,000.00
Net cash received from disposal of fixed assets, intangible
4,876,900.00 10,000,000.00
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 4,876,900.00 10,240,000.00
Cash paid to acquire fixed assets, intangible assets and other
6,308,049.77 35,523,972.38
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 6,308,049.77 35,523,972.38
Net cash flows from investment activities -1,431,149.77 -25,283,972.38
3.Cash flows from financing activities
Cash received from absorbing investment
Including: Cash received from increase in minority interest
Proceeds from borrowings 223,000,000.00 375,000,000.00
Other proceeds relating to financing activities 321,721,729.99 147,525,694.44
Sub-total of cash inflows 544,721,729.99 522,525,694.44
Repayment of borrowings 208,000,000.00 287,000,000.00
Distribution of dividends or profits & interest expenses 15,237,696.69 17,499,132.16
Including: dividends or profit paid to minority interest
Cash paid for other financing activities 286,551,613.33 150,000,000.00
Sub-total of cash outflows 509,789,310.02 454,499,132.16
Net cash flows from financing activities 34,932,419.97 68,026,562.28
4. Effects of foreign exchange rate changes on cash -491,746.17 1,392,127.34
5.Net increases in cash and cash equivalents -29,775,644.46 31,991,683.40
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 88,899,947.25 102,813,924.67
29
Wafangdian Bearing Co., Ltd（Wazhou B） 2016 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
Capital Capital public less：treasure General provision shareholders’ Owner’s equity
Surplus public reserves Undistributed profits Others
stock reserves stock for risk equity
402,600,000
1.Balance at the end of last year 485,691,050.47 131,442,909.11 359,603,965.97 1,379,337,925.55
.00
Add: changes in accounting
policies
Changes in previous errors
Others
2.Balance at the beginning of 402,600,000
485,691,050.47 131,442,909.11 359,603,965.97 1,379,337,925.55
this year .00
3. The changes in this year
2,633,635.55 2,633,635.55
（decrease with“-”）
（1）Total of comprehensive
2,633,635.55 2,633,635.55
income
（2）Capital contribution and
reduction
1）Ordinary share
2）Capital contributed by other
equity instrument holders
3）Share-based payments
charged to equity
4）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
30
Wafangdian Bearing Co., Ltd（Wazhou B） 2016 Mid-year Report
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 the 402,600,000
485,691,050.47 131,442,909.11 362,237,601.52 1,381,971,561.10
current period .00
Unit: RMB yuan
Amount in previous period
Owner’s equity attributable to parent company Minority
Item Capital Capital public less：treasure General provision shareholders’ Owner’s equity
Surplus public reserves Undistributed profits Others
stock reserves stock for risk equity
1.Balance at the end of last 402,600,000
485,691,050.47 131,442,909.11 328,731,015.75 1,348,464,975.33
year .00
Add: changes in accounting
policies
Changes in previous errors
Others
2.Balance at the beginning of 402,600,000
485,691,050.47 131,442,909.11 328,731,015.75 1,348,464,975.33
this year .00
3. The changes in this year
30,872,950.22 30,872,950.22
（decrease with“-”）
（1）Total of comprehensive
30,872,950.22 30,872,950.22
income
（2）Capital contribution and
reduction
1）Ordinary share
2）Capital contributed by other
equity instrument holders
3）Share-based payments
charged to equity
4）Others
(4）Profits distribution
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Wafangdian Bearing Co., Ltd（Wazhou B） 2016 Mid-year Report
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
4)others
4. Balance at the end of the 402,600,000
485,691,050.47 131,442,909.11 359,603,965.97 1,379,337,925.55
current period .00
8. Sheet Of Changes In Shareholder’s Equity Of Parent Compamy.
Unit: RMB yuan
Amount in current period
Item Capital public Surplus public reserves
Capital stock less：treasure stock Undistributed profits Owner’s equity
reserves
1.Balance at the end of last year 402,600,000.00 485,678,443.26 131,442,909.11 368,820,883.02 1,388,542,235.39
Add: changes in accounting
policies
Changes in previous errors
Others
2.Balance at the beginning of
402,600,000.00 485,678,443.26 131,442,909.11 368,820,883.02 1,388,542,235.39
this year
3. The changes in this year
8,131,573.51 8,131,573.51
（decrease with“-”）
（1）Total of comprehensive
8,131,573.51 8,131,573.51
income
（2）Capital contribution and
reduction
32
Wafangdian Bearing Co., Ltd（Wazhou B） 2016 Mid-year Report
1）Ordinary share
2）Capital contributed by other
equity instrument holders
3）Share-based payments
charged to equity
4）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
4)others
4. Balance at the end of the
402,600,000.00 485,678,443.26 131,442,909.11 376,952,456.53 1,396,673,808.90
current period
Unit: RMB yuan
Amount in previous period
Item Capital stock Capital public reserves less：treasure stock Surplus public reserves Undistributed profits Owner’s equity
1.Balance at the end of last
402,600,000.00 485,678,443.26 131,442,909.11 340,122,796.99 1,359,844,149.36
year
Add: changes in accounting
policies
Changes in previous errors
Others
2.Balance at the beginning of
402,600,000.00 485,678,443.26 131,442,909.11 340,122,796.99 1,359,844,149.36
this year
33
Wafangdian Bearing Co., Ltd（Wazhou B） 2016 Mid-year Report
3. The changes in this year
28,698,086.03 28,698,086.03
（decrease with“-”）
（1）Total of comprehensive
28,698,086.03 28,698,086.03
income
（2）Capital contribution and
reduction
1）Ordinary share
2）Capital contributed by other
equity instrument holders
3）Share-based payments
charged to equity
4）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
4)others
4. Balance at the end of the
402,600,000.00 485,678,443.26 131,442,909.11 368,820,883.02 1,388,542,235.39
current period
34
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 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 19February, 1997.
The parent company is Wazhou Group. General shareholders meeting is the company’s authority and have the resolution
power over company’s business policy, financing, investment and profit appropriation etc.significant events in accordance
with relevant law. Board of directors is responsible for general meeting and has the power over the company’s decision
making. Management is in charge of implementation of resolution made by general meeting and board meeting and is
responsible for operation management. The company has the following functional departments including: procurement
department, portfolio investment department, operating department, HR, marketing department, manufacturing and
construction department, quality control department, financial department and logistic department. Wholly owned subsidiaries
include Wazhou Liaoyang Bearing Manufacturing Co., Ltd(“Liaoyang Bearing”), Dalian Wazhou Precision Electric Motor Car
Bearing (“DalianElectrical Motor”),and Wazhou Precision of Spherical Roller Bearings(Wafangdian)Co., Ltd(“Spherical
Bearings”).
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.Legal representative is Meng Wei.
The Company is principally engaged in the manufacturing and sale of bearing, bearing spare parts, engineering equipment,
automobile spare parts and relating products, bearing repair, maintenance and technology service etc and also in renting
mechanical equipment and estate, inspection of bearings, mechanical equipment, measuring instruments and meters.
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
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Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
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
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
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Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
(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
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
37
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 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
Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and fixed
maturities that the Groups 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
38
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
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
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
39
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
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.
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 Accord receivables
40
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
(1) Individually significant amounts of accounts receivable accrued bad debt provision as per portfolio
Judgment basis or amount standards of The receivables with more than RMB 3 million individual amount shall be
individually significant amounts recognized as the significant receivables;
The accruing method of the receivables with The bad debt provisions shall be accrued based on the difference
individually significant amounts between current value of future cash flow and the carrying amounts.
(2) Accounts receivable accrued bad debt provision by portfolio
The basis of portfolio
Use the accounting aging of the receivables as the credit risk characteristics
Accounting aging
to classify the portfolio
Use the amount characteristics of the receivables , if the transaction party
Related parties
is related parties characteristics need to classify the portfolio
Use the amount characteristics of the receivables, the credit of transaction
Risk-free party, the nature of the amounts and the 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 debt
Accrual reason
provision on the basis of portfolio can not reflect its risk characteristic
The bad debt provisions should be accrued based on the difference
Accrual method
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.
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
41
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
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 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.
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Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
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
(1)Recognition criteria
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.:
(2)Depreciation method
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Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
Estimated net
Useful
Category residual value Annual depreciation rate
life(years)
rate (%)
Housing and Buildings
Including: Buildings 15 3 6.47
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
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.
16 Borrowing costs
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
44
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
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.
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 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.
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
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Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
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 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
46
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
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
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
47
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
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 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.
VI Accounting treatment method of income tax
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%
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Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
Business tax Revenue from property lease, examination fee, surcharge 5%
City construction tax Value-added tax payables, business tax 7%
Education surcharge Value-added tax payables, business tax 3%
Value-added tax payables, business tax
Local education surcharge 2%
Current period taxable profit
Enterprise income tax(EIT) 15%
70% of cost of own property or revenue from leasing
Real estate tax 1.2% or 12%
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%
Wazhou Precision of Spherical Roller Bearings(Wafangdian)Co., Ltd 25%
2. Tax preference
The company obtained the qualification of high and new technology enterprises at 29September, 2014.The Certificate
No is GF201421200004, and the validity duration is three years. According to the tax law, the company can be granted for
the preferential tax policy of enterprise income tax rate of 15% in three years.
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 tax(EIT) Current period taxable profit 15%
Education surcharge Value-added tax payables, business tax 3%
Local education surcharge Value-added tax payables, business tax 2%
70% of cost of own property or revenue from
Real estate tax 1.2% or 12%
leasing property
Land use tax Land using right area RMB 6 per square meter
Notes for tax principles with different EIT rate
49
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
Tax principles EIT rate
Wazhou Liaoyang Bearing construction Co.,Ltd 25%
Dalian Wazhou Precision Motor Car Bearing Company Limited 25%
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 408,173.22 381,031.91
Cash in bank 98,207,628.57 141,852,344.61
Other cash and cash equivalents 12,973,774.46 42,182,666.45
Total 111,589,576.25 184,416,042.97
2 Notes receivable
(1) Category of notes receivable
Items 2016.07.30 2016.12.31
Bank acceptance notes 108,321,667.51 51,320,019.73
Commercial acceptance notes 65,029,661.46 57,861,136.96
Total 173,351,328.97 109,181,156.69
(1) (2) Pledged notes receivable up to June 30, 2017.
Items Pledged notes receivable up to June 30, 2017.
Commercial acceptance notes 34,989,611.73
Total 34,989,611.73
3 Accounts receivable
(1) Category of accounts receivable
Closing Balance
Items Booking balance Provision
Booking balance
Amount % Amount %
Accountsreceivable with
individual significant amount and
12,810,943.69 0.91% 12,810,943.69 100.00%
identification separately bad debt
provision
Accounts receivable identified
bad debt provision based on the 1,356,808,101.11 0.96% 45,625,931.30 5.20% 1,311,182,169.81
characters of credit risk portfolio
Accountsreceivable with 42,059,327.99 2.98% 42,059,327.99 100.00%
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Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
individual insignificant amount
and identification separately bad
debt provision
Total 1,411,678,372.79 100.00% 100,496,202.98 1,311,182,169.81
(Continued)
Opening balance
Items Booking balance Provision
Booking balance
Amount % Amount %
Accountsreceivable with
individual significant amount and
12,810,943.69 0.95% 12,810,943.69 100.00%
identification separately bad debt
provision
Accounts receivable identified
bad debt provision based on the 1,295,567,461.89 95.94% 45,675,587.50 5.50% 1,249,891,874.39
characters of credit risk portfolio
Accountsreceivable with
individual insignificant amount
42,059,327.99 3.11% 42,059,327.99 100.00%
and identification separately bad
debt provision
Total 1,350,437,733.57 100.00% 100,545,859.18 1,249,891,874.39
1) Accounts receivable with individual significant amount and identification separately bad debt provision at the end of June
30,2017
Booking Provision for Provision rate
Company name Reasons for provision
balance bad debts (%)
A 5,092,669.00 5,092,669.00 100.00% Bankrupt
A/R with over 5 years aging,
B 3,910,007.43 3,910,007.43 100.00%
unlikely to be collected
A/R with over 5 years aging,
C 3,808,267.26 3,808,267.26 100.00%
unlikely to be collected
Total 12,810,943.69 12,810,943.69
2) Accounts receivable accrued the bad debt provisions under accounting aging analysis method
Closing Balance
Aging Accounts Proportion
Provision for bad debts
receivable (%)
Within1 year 748,726,319.93 7,487,263.20 1.00%
1 to 2 years 162,447,753.52 8,122,387.68 5.00%
2 to 3 years 38,989,958.79 7,797,991.76 20.00%
Over 3 years 37,647,187.41 18,823,593.70 50.00%
Total 987,811,219.65 42,231,236.34
(2) Bad debt provision accrued and written-off (withdraw)
(3) Accounts receivable written off in current period
51
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
Item Written-off Amount
Accounts receivable written off 149,466.81
4 Advances to suppliers
(1) Aging of advances to suppliers
Items 2017.06.30 2016.12.31
Amount Percentage (%) Amount Percentage (%)
Within 1 year 12,979,406.82 89.97% 14,763,851.69 91.79%
1 to 2 years 456,802.20 3.17% 481,467.40 2.99%
2 to 3 years 75,843.19 0.53% 270,039.04 1.68%
Over 3 years 913,734.80 6.33% 569,485.55 3.54%
Total 14,425,787.01 -- 16,084,843.68 --
5. Dividends receivable
6 Other receivables
(1) The categories of other receivable
Closing Balance
Items Booking balance Provision
Booking balance
Amount % Amount %
Other receivables identified
bad debt provision based on
33,539,509.54 0.87% 1,020,340.40 0.05% 32,519,169.14
the characters of credit risk
portfolio
Accountsreceivable with
individual insignificant
amount and identification 5,020,918.92 13.02% 5,020,918.92
separately bad debt
provision
Total 38,560,428.46 100.00% 6,041,259.32 15.67% 32,519,169.14
(Continued)
Opening Balance
Provision Booking
Items Booking balance
balance
Amount % Amount %
Other receivables identified bad
debt provision based on the 20,726,129.09 80.50% 1,020,340.40 7.18% 19,705,788.69
characters of credit risk portfolio
Accountsreceivable with individual
insignificant amount and
5,020,918.92 19.50% 5,020,918.92 100.00%
identification separately bad debt
provision
Total 25,747,048.01 100.00% 6,041,259.32 19,705,788.69
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Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
(2) Other receivables accrued the bad debt provisions under accounting aging analysis method
Closing Balance
Aging Provision for bad Proportion
Other receivables
debts (%)
Within 1 year 16,178,036.41 161,780.36 1.00%
1-2 years 487,038.17 24,351.91 5.00%
2-3 years 1,162,693.60 232,538.72 20.00%
Over 3 years 1,203,338.82 601,669.41 50.00%
Total 19,031,107.00 1,020,340.40
(3) Other receivables categorized by nature
Nature Closing Balance Opening Balance
Other receivables 38,560,428.46 25,747,048.01
Total 38,560,428.46 25,747,048.01
7 Inventories
(1) Categories of inventories
2017.06.30 2016.12.31
Item Provision for Provision for
Cost Net book value Cost Net book value
decline declines
Raw materials 70,848,571.23 974,208.73 69,874,362.50 68,526,562.28 974,208.73 67,552,353.55
Finished
619,093,321.92 65,411,512.25 553,681,809.67 687,573,834.73 65,411,512.25 622,162,322.48
goods
Workingin
144,567,789.72 602,496.86 143,965,292.86 148,032,177.74 602,496.86 147,429,680.88
progress
Low value
373,377.92 373,377.92 5,284,926.01 5,284,926.01
consumables
Total 834,883,060.79 66,988,217.84 767,894,842.95 909,417,500.76 66,988,217.84 842,429,282.92
(2) Provision for decline in the value of inventories
Item Increase Decrease Closing Balance
Opening Balance Reverse/ Others
Accrual Other
Written- off transferred
Raw materials 974,208.73 974,208.73
Finished goods 65,411,512.25 65,411,512.25
Working in
602,496.86 602,496.86
progress
Total 66,988,217.84 66,988,217.84
8 Other current assets
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Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
Item 2017.06.30 2016.12.31
VAT to be deducted 2,966,475.81 5,347,391.58
Prepaid income tax 1,855,337.56 1,855,337.56
Total 4,821,813.37 7,202,729.14
9. Available-for-sale financial assets
(1) Available-for-sale financial assets
Item Closing Balance Opening Balance
Booking balance Provision Book value Booking balance Provision Book value
Available-for-sale
2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00
equity instruments
Measured as cost
2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00
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
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 Balance 424,373,681.31 1,076,289,314.43 17,262,573.06 64,993,231.80 186,259,094.77 1,769,177,895.37
(2) Increase 1,343,482.24 2,042,919.14 7,205.12 206,097.82 501,126.92 4,100,831.24
1) Purchase 671,171.17 1,171,407.13 7,205.12 193,016.06 445,011.25 2,487,810.73
2) Transferred from
672,311.07 871,512.01 13,081.76 56,115.67 1,613,020.51
construction-in-progress
3) Acquired from
business combination
(3) Decrease 729,809.65 510,069.77 142,050.88 164,500.00 1,546,430.30
1) Disposal 729,809.65 510,069.77 142,050.88 164,500.00 1,546,430.30
(4) Closing Balance 425,717,163.55 1,077,602,423.92 16,759,708.41 65,057,278.74 186,595,721.69 1,771,732,296.31
2.Accumulated
Depreciation
54
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
(1) Opening Balance 213,793,597.48 579,901,988.33 12,980,199.26 49,676,534.36 127,230,685.59 983,583,005.02
(2) Increase 6,771,855.28 35,522,816.34 516,885.17 1,918,507.12 3,874,291.51 48,604,355.42
1)Accrued 6,771,855.28 35,372,791.90 516,885.17 1,918,507.12 3,717,358.18 48,297,397.65
2) Other transfer 150,024.44 156,933.33 306,957.77
(3) Decrease 616,695.32 455,459.31 92,597.89 159,565.00 1,324,317.52
1) Disposal 616,695.32 455,459.31 92,597.89 159,565.00 1,324,317.52
4) Closing Balance 220,565,452.76 614,808,109.35 13,041,625.12 51,502,443.59 130,945,412.10 1,030,863,042.92
3. Impairment Reserve
(1) Opening Balance 26,273.33 26,273.33
(2) Increase
(3) Decrease
1) Disposal
(4) Closing Balance 26,273.33 26,273.33
4. Book Value
1. Closing book value 205,151,710.79 462,768,041.24 3,718,083.29 13,554,835.15 55,650,309.59 740,842,980.06
2. Opening book value 210,580,083.83 496,361,052.77 4,282,373.80 15,316,697.44 59,028,409.18 785,568,617.02
11 Construction in progress
(1) Details of Construction-in-progress
Closing Balance Opening Balance
Item
Book Balance Provision Book Balance Provision
Improvement
of
88,025,523.34 88,025,523.34 83,614,247.81 83,614,247.81
seven-finished
products
Improvement
of one-finished 26,087,483.71 26,087,483.71 26,147,833.86 26,147,833.86
products
Dalian industry
16,060,671.00 16,060,671.00 16,060,671.00 16,060,671.00
park project
Improvement
of precision 13,501,710.76 13,501,710.76 14,497,884.54 14,497,884.54
roller branch
Improvement
of grinding 5,282,092.57 5,282,092.57 5,282,416.43 5,282,416.43
machine
Improvement
3,720,604.95 3,720,604.95 3,720,604.95 3,720,604.95
of plant
Improvement
3,262,933.24 3,262,933.24 3,568,672.18 3,568,672.18
of Amerauto
Improvement
8,179,465.15 8,179,465.15 3,481,684.10 3,481,684.10
of railway
Improvement
of grinding 3,323,118.91 3,323,118.91 3,323,612.16 3,323,612.16
machine
Improvement
3,073,673.39 3,073,673.39 2,979,656.30 2,979,656.30
of
55
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
second-finishe
d products
Crane Project 2,862,369.52 2,862,369.52 2,862,369.51 2,862,369.51
Improvement
of special large 2,317,196.02 2,317,196.02 2,410,593.11 2,410,593.11
branch
Improvement
of liaoyang 2,396,947.08 2,396,947.08 2,396,988.69 2,396,988.69
bearing
Computer
2,081,977.04 2,081,977.04 2,094,565.47 2,094,565.47
Project
Overhaul
factory 544,769.58 544,769.58 419,948.26 419,948.26
reconstruction
Heat treatment
438,464.50 438,464.50 337,933.74 337,933.74
product line
Others 23,967,815.60 23,967,815.60 21,240,281.66 21,240,281.66
Total 205,126,816.36 205,126,816.36 194,439,963.77 194,439,963.77
12 Intangible assets
Item Land use right software Total
1.Initial cost
1). Opening balance 176,189,727.74 6,135,356.44 182,325,084.18
2).Increase 137,329.45 137,329.45
(1) Purchase 137,329.45 137,329.45
(2)Internaldevelopment
(3) Acquired by company
combination
3). Decrease
4). Closing balance 176,189,727.74 6,272,685.89 182,462,413.63
2. Amortization
1). Opening balance 45,474,697.69 5,973,920.68 51,448,618.37
2).Increase 2,194,753.82 72,111.08 2,266,864.90
(1)Accrual 2,194,753.82 72,111.08 2,266,864.90
(2)Transfer into
3). Decrease
4). Closing balance 47,669,451.51 6,046,031.76 53,715,483.27
3. Provision
for impairment
1). Opening balance
2).Increase
3). Decrease
4). Closing balance
4. Book value
1.Closing Book value 128,520,276.23 226,654.13 128,746,930.36
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Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
2.Opening Book value 130,715,030.05 161,435.76 130,876,465.81
13 Long-term deferred and prepaid expenses
Other
Item 2016.12.31 Increase Amortization 2017.06.30
decrease
Right to use premise of
521,361.67 33,915.18 487,446.49
Shanghai sales office
Decoration fees 279,279.28 279,279.28
Total 521,361.67 279,279.28 33,915.18 766,725.77
14 Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets without deduction
Item Closing Balance Opening Balance
Deductibletemporary Deferredtax Deductibletemporary Deferredtax
difference assets difference assets
Provision for impairment of assets 62,191,502.88 9,837,992.33 62,191,502.88 9,837,992.33
Difference due to depreciation of
11,940,720.08 1,791,108.01 11,940,720.08 1,791,108.01
fixed assets
Total 74,132,222.96 11,629,100.34 74,132,222.96 11,629,100.34
(2) Deferred tax liabilities without deduction
Item Closing Balance Opening Balance
Taxabletemporary Deferred tax Taxable Deferred tax
difference liabilities temporary liabilities
difference
Asset evaluation increment in
business combination without 6,261,973.05 939,295.96 6,261,973.05 939,295.96
the same control
Total 6,261,973.05 939,295.96 6,261,973.05 939,295.96
(3) The net value of deferred tax assets and deferred tax liabilities with deduction
Closing Balance Closing Balance Opening Balance of Opening Balance of
of deferred tax of deferred tax deferred tax assets deferred tax
Item assets and assets/deferred and liabilities with assets/deferred tax
liabilities with tax liabilities deduction liabilities
deduction
Deferred tax
939,295.96 11,629,100.34 939,295.96 11,629,100.34
assets
Deferred tax
939,295.96 939,295.96
liabilities
15 Short-term loan
57
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
(1) Category of short-term loan
Loan category 2017.06.30 2016.12.31
Credit loan 654,900,000.00 549,900,000.00
Total 654,900,000.00 549,900,000.00
16 Notes payable
Items 2017.06.30 2016.12.31
Commercial acceptance notes 19,372,939.43 43,413,268.05
Bank acceptance notes 288,826,626.47 382,101,342.21
Total 308,199,565.90 425,514,610.26
17 Accounts payable
(1) Accounts payable
Item Closing Balance Opening Balance
Loan 712,706,449.25 685,303,568.62
Project payments 72,828,526.55 74,147,616.34
Other 117,242,968.79 74,448,529.87
Total 902,777,944.59 833,899,714.83
18 Advances from customers
(1) Received in advance
Item Closing Balance Opening Balance
Loan 28,535,884.77 26,959,477.14
Total 28,535,884.77 26,959,477.14
19 Employee benefits payable
(1) Category of employee’s payables
Item Opening Increase Decrease Closing Balance
Balance
Short-term
7,914,043.53 90,646,047.56 90,869,121.68 7,690,969.41
employee’s payable
Welfare with deposit
9,342,807.89 17,882,261.52 17,887,153.21 9,337,916.20
and withdrawal plan
Total 17,256,851.42 108,528,309.08 108,756,274.89 17,028,885.61
(2) Short-term employee’s payables
Item Opening Increase Decrease Closing
58
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
Balance Balance
Salaries, bonus,
allowance, and 261,033.34 63,335,902.46 63,353,361.21 243,574.59
subsidy
Welfare 31,194.00 6,939,647.64 6,970,841.64 0.00
Social insurance 581,422.78 10,287,810.13 10,283,799.88 585,433.03
Include: Medical
292,917.57 7,996,814.42 7,993,566.42 296,165.57
insurance
Industrial injury
217,718.51 1,215,757.08 1,215,314.65 218,160.94
insurance
Maternity
70,786.70 1,075,238.63 1,074,918.81 71,106.52
insurance
Housingfunds 2,342,939.01 9,162,358.76 9,242,846.52 2,262,451.25
Labour union and
4,697,454.40 920,328.57 1,018,272.43 4,599,510.54
training expense
Total 7,914,043.53 90,646,047.56 90,869,121.68 7,690,969.41
(3) Welfare with deposit and withdrawal plan
Item Opening Increase Decrease Closing Balance
Balance
Pension 9,007,073.27 17,366,607.48 17,371,778.23 9,001,902.52
Unemployment insurance 335,734.62 515,654.04 515,374.98 336,013.68
Total 9,342,807.89 17,882,261.52 17,887,153.21 9,337,916.20
6.20 Taxes payable
Item Closing Balance Opening Balance
Value-added tax 6,792,987.60 13,306,281.89
Business tax 771,810.83
Individual income tax 806,593.03 198,040.85
Enterprise income tax
City maintenance and construction tax 549,126.61 1,096,098.67
Real estate tax 294,515.16 295,937.17
Land use tax 204,044.64 204,044.62
Stamp tax 92,270.38 165,535.47
Education surcharge 371,882.38 769,209.66
River toll fee 381,391.93 350,272.42
Others 1,983,999.36
Total 9,492,811.73 19,141,230.94
21 Interest payable
Item Closing Balance Opening Balance
59
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
Interest for long-term loan with instalments 170,000.00
Interest for short-term loan 420,000.00 757,000.00
Total 420,000.00 927,000.00
22 Other payables
Other payablescategorized by payments nature
Payments nature Closing Balance Opening Balance
Bid security deposits 1,675,699.00 2,011,403.97
Risk deposits from branch manager 17,082,958.00 22,552,958.00
Trademark fees 4,127,316.50 3,168,065.36
Others 81,741,656.21 84,058,254.70
Total 104,627,629.71 111,790,682.03
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 50,000,000.00 90,000,000.00
Total 50,000,000.00 90,000,000.00
24 Other current liabilities
Item Closing Balance Opening Balance
Government subsidy within 1 year 4,335,522.50 4,704,022.50
Total 4,335,522.50 4,704,022.50
Government subsidy
Recorded Related
Inc
Opening into non Other Closing with
Project rea
Balance -operation Change Balance asset/equit
se
income y
Technology subsidy from 736,999.97 - 368,500.00 368,499.97 asset
province
Dalian sub-factory 2,704,235.83 - 1,352,117.94 1,352,117.94 2,704,235.83 asset
remove subsidy
Intelligent equipment 400,000.00 - 200,000.00 200,000.00 400,000.00
manufacturing
asset
development specific
subsidy
High-end bearing 472,320.00 - 236,160.00 236,160.00 472,320.00 asset
improvement project
Liaoyang Bearing 97,548.00 - 97,548.00 asset
Industry subsidy
subsidy from heavy axle 240,000.00 240,000.00
load wagon asset
120,000.00 120,000.00
Technical master studio 52,918.70 - 52,918.70
asset
development subsidy
60
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
Recorded Related
Inc
Opening into non Other Closing with
Project rea
Balance -operation Change Balance asset/equit
se
income y
Total 4,704,022.50 2,276,777.94 1,908,277.94 4,335,522.50
“Other Change”: the expected amortization occurred during the next year will be re-categorized from
deferred income to other current liabilities.
25 Long-term loan
(1) Category of long-term loan
Category 2017.06.30 2016.12.31
Assurance loan 50,000,000.00
Credit loan
Total 50,000,000.00
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
27 Special payables
Items Opening Increase Decrease Closing Formation Basis
Balance Balance
Granted by Wafangdian Bureau of
Finance and Wafangdian Bureau
Special pollution
221,698.98 221,698.98 of Environment Protection with
treatment
approval with “WaCaiZhi Qi
No.[2004]217”
Dalian Financial Bureau and
Municipal Office of Economic and
Informatization Information Technology Committee
75,000.00 75,000.00
Construction with approval with “Da CaiZhi Qi
No. [2012]917” and “Da Jing Xin
Fa No. [2012]199”
Total 296,698.98 296,698.98
28 Other non-current liabilities
(1) Category of deferred income
Item Opening Increase Decrease Closing
Formation Basis
Balance Balance
61
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
Government
41,682,411.76 1,908,277.94 39,774,133.82
subsidy
Total 41,682,411.76 1,908,277.94 39,774,133.82
(2) Government subsidy
Recorded Relate
Government Opening into non Other Closing Related with d with
Increase
subsidy item Balance -operatio Change Balance asset/equity asset/e
n income quity
Liaozhou Industry
development 4,292,112.00 0.00 4,292,112.00 4,292,112.00 asset
subsidies
Compensation for
Da Lian plants 29,746,594.01 1,352,117.94 28,394,476.07 29,746,594.01 asset
moving
Development of
intelligent
manufacturing 2,800,000.00 200,000.00 2,600,000.00 2,800,000.00 asset
equipment
subsidies
Improvement of
high-end bearing
2,361,600.00 236,160.00 2,125,440.00 2,361,600.00 asset
production
subsidies
Interest subsidy of
1,900,000.00 120,000.00 1,780,000.00 1,900,000.00 asset
grand axle load
Construction of
workshop for
582,105.75 582,105.75 582,105.75 asset
technology
masters subsidy
Total 41,682,411.76 1,908,277.94 39,774,133.82 41,682,411.76
“Other change”: carried forward the non-operation income occurred in 2016 from the subsidy and re-categorized to
other current liabilities.
(1) A: Deferred income: the RMB 4,877,400.00 of “Industry development subsidies” is distributed by the Liaoyang
Economic and Development district Bureau of Finance in 2013. The grant is related to land and amortized over
50 years in accordance with land amortization criteria.
(2) B: Deferred income: the improvement subsidy is the railway transportation bearing technologic improvement
subsidy with total amount of RMB 7,370,000.00 granted by Bureau of Finance Liaoning province in 2008. The
subsidy related to asset should be deferred over the useful life of 10 years.
(3) C: Deferred income: the compensation for plants moving is RMB 59,820,000.00 granted from Dalian
government-owned assets investment and operating Co., Ltd in 2011. And the amount of making up for the
removal loss of the current period is RMB 11,143,755.05；The rest of 48,676,244.95 are recognized as the
removal compensation related with assets, which is amortized 18 years, according to the new fixed assets
formed after the Dalian branch removal.
(4) D: Deferred income: the RMB 4,000,000.00 of development of intelligent manufacturing equipment subsidy is
distributed by Dalian City Finance Bureau in 2012.The subsidies are used in the project “Grinding vehicle
62
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
integration and processing digitalization”. Currently, the equipment has been used for production manufacturing
and grant is amortized over 10 years.
(5) E: Deferred income: the RMB 4,723,200 interest subsidy of “Improvement of bearing base in high-end
equipment sector” is distributed by Wafangdian Finance Bureau in 2013 for the year of 2011. The subsidy is
specially used to improve the project of improvement of bearing base in high-end equipment sector. The item is
amortized within 10 years.
(6) F: Deferred income: the RMB 2,400,000.00 interest subsidy of “Axle box and bearing technology improvement
of grand axle load railway carriages” is granted by Wafangdian Finance Bureau in 2014. The subsidy is now in
processing the project “Axle box and bearing technology improvement of grand axle load railway carriages”.
This project is still in the progress and is expected to be completed for inspection in 2016.
(7) G: Deferred income: the 700,000.00 RMB of the construction of workshop for technology masters subsidy is
granted by Dalian Finance Bureau in 2014 according to “Da Cai She (Zhuan) No. [2013]26”, “Da Cai She
(Zhuan) No. [2013]37”, “Da Cai She (Zhuan) No. [2013]45”, “Da Cai She (Zhuan) No. [2014]27”, and “Da Cai
She (Zhuan) No. [2014]32”. No assets are established yet so far, the grant has been booked into non-operating
income.
29 Share capital
2016.12.31 Change for current period 2017.06.30
Issui Transferrin
Shareholders ng Distributi g capital
name/category Amounts % new ng reserves Others Subtotal Amounts %
share shares to share
s capital
402,600,00 100.0
Total shares — — — — — 402,600,000.00 100.00
0.00 0
30 Capital reserves
Items 2016.12.31 Increase Decrease 2017.06.30
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
Items 2016.12.31 Increase Decrease 2017.06.30
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
63
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
Item This period Last period
Closing balance before adjustment 359,603,965.97 328,731,015.75
Opening balance after adjustment 359,603,965.97
Add: Current net profit attributable to shareholders of
2,633,635.55 30,872,950.22
parent company
Closing balance of 362,237,601.52 359,603,965.97
33 Operating revenue & cost
Items This period Last period
Sales revenue Cost of sales Sales revenue Cost of sales
Revenue from
986,168,093.43 862,562,230.54 1,022,552,099.60 944,790,304.30
main operation
Revenue from
149,332,481.90 141,633,411.45 102,902,932.38 98,811,722.39
other operation
Total 1,135,500,575.33 1,004,195,641.99 1,125,455,031.98 1,043,602,026.69
34 Operating taxes and surcharges
Items This period Last period
Business tax
City construction tax 3,428,881.69 2,620,938.60
Education surcharge 2,425,208.91 1,844,718.24
Other 3,978,357.55 11,784.65
Total 9,832,448.15 4,695,351.44
35 Selling expenses
Items This period Last period
Transportation expense 31,546,578.17 30,956,962.62
Employee benefit 13,476,776.84 17,531,901.82
Travel expense 9,656,691.45 7,641,428.07
Conference expense 2,465,600.45 4,375,408.70
Trademark use fee 927,157.82 2,000,000.00
Other expense 17,947,375.19 22,236,984.67
Total 76,020,179.92 84,742,685.88
36 Administrative expenses
Items This period Last period
Employee benefit 17,708,196.38 16,327,231.64
Tax expense 511,493.60 4,217,328.76
Technology development expense 1,318,389.62 2,713,800.00
64
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
Intangible assets amortization 2,266,864.90 2,221,088.40
Guide and firefighting expense 1,647,500.00
Depreciation expense 998,045.03 1,199,666.57
Business entertaining expense 403,673.93 305,960.70
Travel expense 397,589.98 440,495.52
Other expense 7,641,468.38 7,573,105.97
Total 31,245,721.82 36,646,177.56
37 Financial expenses
Items This period Last period
Interest expenses 16,282,310.02 17,700,659.58
Less: interest income 384,832.07 131,402.31
Add: Exchange losses -1,336,112.98 -5,015,729.40
Add: Others expenditure 1,454,903.78 -162,786.15
Total 16,016,268.75 12,390,741.72
38 Assets impairment losses
Items This period Last period
Loss of bad debts 99,810.61 1,067.04
Total 99,810.61 1,067.04
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 non-current
44,573.04 4,649,046.02 44,573.04
assets
Including: gains on disposal of
44,573.04 4,649,046.02 44,573.04
fixed assets
Income from debt restructuring 1,356,259.02 2,695,634.43 1,356,259.02
Government grants 2,423,777.94 5,575,349.68 2,423,777.94
Penalty income 832,777.00 1,057,551.00 832,777.00
Others 115,136.99 26,691.99 115,136.99
Total 4,772,523.99 14,004,273.12 4,817,097.03
(2) Government grants list
65
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
(3)
affect the Special current prior year With
profit and allowanc year asset/e
Item Resource reason type
loss of the e or not quity
year or not
subsidy Subsidies for research and Y N
Improvement Bureau of Finance Liaoning
development, technical 368,500.00 368,500.00 asset
subsidy Province No.57 [2007]
renovation and transformation
Compensation deal of subsidy Y N
Compensation Subsidies for local government
Dalian state-owned 1,352,117.9
for plants investment policies and other 1,352,117.94 asset
property investment and 4
moving local support policies
operating group Co., LTD
Improvement of Wacaijian[119] ( notice subsidy Y N
high-end about distributing 6th Subsidies for research and
bearing interest subsidy fund for the development, technical 236,160.00 236,160.00 asset
production year of 2011 to the renovation and transformation
subsidies company)
Special project subsidy Subsidies granted to the state for Y N
subsidy for the encouragement and support
intelligent Dalian Municipal Finance of specific industries and
200,000.00 200,000.00 asset
manufacture Bureau[2012] 1163 industries (obtained in
equipment accordance with national
development policies and regulations)
subsidy Subsidies granted to the state for Y N
Overhaul
the encouragement and support
bearing project
of specific industries and
subsidy on Wacaijian No.179 [2014] 120,000.00 1,125,308.18 asset
industries (obtained in
interest
accordance with national
payment
policies and regulations)
Finance subsidy Subsidies granted to the state for Y N
DaCaiZhi Qi No. [2016]
bureau’s first the encouragement and support 1,580,000.00 income
66, 677
important of specific industries and
66
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
affect the Special current prior year With
profit and allowanc year asset/e
Item Resource reason type
loss of the e or not quity
year or not
technical industries (obtained in
equipment accordance with national
insurance policies and regulations)
subsidy fund
Y N
Fund for Subsidies for research and
technology [2015]995 号 subsidy development, technical 250,000.00 income
research and renovation and transformation
development
Award Subsidies granted to the state for Y N
2015
the encouragement and support
encouragement
Dalian Municipal Finance of specific industries and
of foreign trade 147,000.00 income
Bureau industries (obtained in
development
accordance with national
special fund
policies and regulations)
subsidy Subsidies granted to the state for Y N
the encouragement and support
Skill master Dalian Municipal Finance of specific industries and
3,762.56 income
studio subsidy Bureau[2013] 26 industries (obtained in
accordance with national
policies and regulations)
Development subsidy Y N
foster fund in
Subsidies for local government
2015 by Dalian Municipal Finance
investment policies and other 459,501.00 income
Bureau of Bureau
local support policies
Finance of
Dalian
2,423,777.9
Total 5,575,349.68
4
67
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
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 33,802.04 78,416.68 33,802.04
Including: Loss on disposal of fixed assets 33,802.04 78,416.68 33,802.04
Loss from debt restructuring 723,115.84 0.00
Penalty loss 15,648.86 650.00 15,648.86
Others 179,941.63 603,258.18 179,941.63
Total 229,392.53 1,405,440.70 229,392.53
41 Income tax expenses
（1）Adjustment for profit and income tas expenss
item amoutn
Total profit 2,633,635.55
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
Other cash received relating to operating activities 1,373,744.39 3,957,803.39
Total 1,373,744.39 3,957,803.39
2) Other cash paid relating to operating activities
Items This period Last period
Other cash paid relating to operating
52,708,495.81 56,508,192.96
activities
Total 52,708,495.81 56,508,192.96
3) Other cash received relating to financial activities
Items This period Last period
Other cash paid relating to financial
321,721,729.99 147,525,694.44
activities
Total 321,721,729.99 147,525,694.44
4) Other cash paid relating to financial activities
Items This period Last period
68
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
Other cash paid relating to financial
286,551,613.33 150,000,000.00
activities
Total 286,551,613.33 150,000,000.00
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 2,633,635.55 -44,024,185.93
Add: Provision for impairment of assets 99,810.61 1,067.04
Depreciation of fixed assets 48,297,397.65 64,861,194.84
Amortization of intangible assets 2,266,864.90 2,221,088.40
Amortization of long-term deferred expenses 33,915.18 56,079.18
Losses on disposal of fixed assets, intangible assets, and
-10,771.00 -4,570,629.34
long-term assets (income listed with”-”)
Financial expense (income listed with”-”) 16,016,268.75 12,390,741.72
Investment loss (income listed with”-”) 74,534,439.97 -52,021,892.08
Decrease of inventory (increase listed with”-”) -138,273,848.15 -95,261,292.96
Decrease of operating receivables (increase listed with”-”) -82,203,972.02 107,958,163.98
Increase of operating payables (decrease listed with”-”)
other
Net cash flows arising from operating activities -76,606,258.56 -8,389,665.15
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 98,615,801.79 113,941,499.74
Less: Opening balance of cash 142,233,376.52 78,556,030.56
Net increase of cash and cash equivalent -43,617,574.73 35,385,469.18
(3) Cash and cash equivalents
Items This period Last period
Cash 98,615,801.79 142,233,376.52
Closing balance of cash and cash equivalents 98,615,801.79 142,233,376.52
VIII. Equity of Other Entities
1. Equity of subsidiaries
(1) Organization structure of group company
Share（%）
Name of subsidiary Location Registered Location Nature of operation Method
Direct Indirect
Wazhou Liaoyang Wafangdian Liaoyang Baita District Manufacturing and 100 acquisitio
69
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
Bearing construction Weiguo Rd No.61 selling bearing and n
Co.,Ltd machines
Dalian Wazhou Precision Dalian Free Trade Zone Manufacturing and
investmen
Motor Car Bearing Wafangdian SanshiliYongsheng Rd selling bearing and 100
t
Company Limited No.12 machines
Wazhou Precision of
Manufacturing and
Spherical Roller WafangdianBeigongji St acquisitio
Wafangdian selling bearing and 100
Bearings(Wafangdian)Co. No.1 n
machines
, Ltd
IX Risk Related to Financial Instrument
The main financial instruments held by the group company are including investment in share equity, borrowing,
accounts receivable, and accounts payable. The details introduction about each financial instrument is referred to this
notes No.VI above. The related risks of these financial instruments and the risk management policy conducted to
reduce these risks by the group company are introduced as below. The Group management conducts to manage and
monitor these risks exposure and control these risks under certain risk level.
1. Objectives and policies of each risk management
The objectives of risk management conducted by the group company are to reach the balance between risk and
profit return by reducing the negative influence to operating performance to the minimum level as well as
maximising the shareholders’ and other investors’ profits. Based on these objectives, the basic risk management
policy is to recognize and analyse all sorts of risk that the group company faced with, to set up the proper risk
tolerance bottom line conducting risk management, as well as to monitor these risks in a timely and effective manner,
and to ensure these risks under the limit level.
(1) Market risk
1) Currency risk
The currency risk is referred as the risk caused by the fluctuation of exchange rate. The main currency risk that the
company faced with is related to the USD since the main export business is settled by USD. Other than the balance
of foreign currency presented in Note VI. 44, all assets and liabilities of company are presented in RMB On
December 31, 2015.The balance in foreign currency of assets and liabilities may cause currency risk with influence
to operating performance.
2) Interest risk
The main potential interest risk which is caused by the fluctuation of the cash flow of financial instruments is related
to the floating rate of bank loan (Note VI. 15). The policy that adopted by the Group is to maintain the floating rate of
loan.
(2) Credit risk
On 31 December, 2015, the Group’s most probable credit risk exposure is from the financial loss primarily due to the
failure of fulfilling the obligation by one party of the contract. The impairment losses of company’s financial assets
are including:
Among the book value of recognized financial assets in the consolidated statement of financial position, for the
financial instruments measured at fair value, their book values reflect the risk exposure, however, not maximum risk
level; the level is changing along with the fair value.
As the aim to reduce the credit risk, the Group sets up the credit department to ensure the credit limit, to examine
and approve the credit application, and to carry out monitor procedures to claim expired creditor’s right. In addition,
at each of balance sheet date, the Group checks with every single process of receipt of receivable to ensure the
sufficiency of provision of bad debt. Therefore, the management of the Group believed the credit risk had been
minimized significantly.
The working capital has low level of credit risk since the cash is deposited in the banks with high credit reputation.
(3) Liquidity risk
As the management of liquidity risk, the Group’s policy is to regularly monitor the sufficiency of cash and cash
70
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
equivalent, the liquidity requirements to ensure the normal operations, and the fluctuation of cash flow. The bank
loan activities are under monitoring by management to make sure to comply with the loan agreement.
The liquidity risk is referred as the Group failed to fulfil its financial obligations by the due date. The Group manages
the liquidity risk by the maintain sufficiency of working capital to cover the expired debt to avoid the unacceptable
losses or the damage of Group’s reputation. The Group analyses the debt structure and due time periodically to
ensure the sufficiency of available cash flow. The bank loan activities are under monitoring by management to make
sure to comply with the loan agreement. At the same, the Group has consultation with financial organizations about
the financing activities to maintain the credit level and to reduce the credit risk.
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 (%)
(%)
No. 1 North Manufacture and
Wazhou Gongji Street, sales of bearing
413,793,100.00 60.61 60.61
Group Wafangdian and other
City, Dalian equipments
(2). Subsidiaries
Referring to the content in Note VIII. 1. (1) Organization structure of group company
2 Other related parties
Name of related party Related party relationship
Dalian Wazhou Bearing Manufacturing Equipment Other entity controlled by the same parent
Co., Ltd company and ultimate controlling party
Other entity controlled by the same parent
Wazhou Precision Steel Ball Company
company and ultimate controlling party
Other entity controlled by the same parent
Wazhou Exact Forge Ltd.,
company and ultimate controlling party
Other entity controlled by the same parent
Wazhou Group Wind power Bearing Ltd
company and ultimate controlling party
Other entity controlled by the same parent
Wazhou Group Exact Transmission Bearing Co., Ltd
company and ultimate controlling party
Wazhou Group Equipment Technology Project Co., Other entity controlled by the same parent
Ltd. company and ultimate controlling party
Other entity controlled by the same parent
Wazhou Group Special Precision Bearing Co., Ltd.
company and ultimate controlling party
Other entity controlled by the same parent
Liao Ning North Metal Materials supply Co., Ltd
company and ultimate controlling party
Other entity controlled by the same parent
Wazhou Group (USA) Bearing CO., Ltd.
company and ultimate controlling party
71
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
Name of related party Related party relationship
Wazhou Group high-end auto bearing limited Other entity controlled by the same parent
company company and ultimate controlling party
Other entity controlled by the same parent
Wazhou Group Precision Roller limited companu
company and ultimate controlling party
Other entity controlled by the same parent
Wazhou Group Precision Retainer Limited Company
company and ultimate controlling party
Other entity controlled by the same parent
Kugel- und Rollenlagerwerk Leipzig GmbH
company and ultimate controlling party
Other entity controlled by the same parent
Wafangdian bearing Power Limited Company
company and ultimate controlling party
Wazhou Group Bearing Engineering technology Other entity controlled by the same parent
research center company and ultimate controlling party
Dalian GONA Wazhou Auto Bearings Co., Ltd Other related party
Dalian Wazhou Jinzhou Machinery Co., Ltd Other related party
Wafangdian Tongda Bearing Manufacturing Co., Other related party
Ltd
Dalian WazhouFengyuan Machinery Co., Ltd Other related party
3 Related party transactions
(1) Purchase of goods
Content current year Authorized Over or not prior year
Related party
amount
Wazhou Group Purchase of goods 0 0 No 73,888,995.00
Wazhou Exact Forge Ltd. Purchase of goods 77,936,367.41 150,000,000.00 No 80,928,801.62
Dalian Wazhou Jinzhou Machinery Purchase of goods
32,874,239.72 0.00 Yes 41,477,674.50
Co., Ltd
Dalian Wazhou Fengyuan Purchase of goods
40,745,644.79 110,000,000.00 No 44,082,609.39
Machinery Co., Ltd
Wazhou Group Exact Purchase of goods
35,651,638.02 90,000,000.00 No 45,035,862.80
Transmission Bearing Co., Ltd
Wazhou Group Equipment Purchase of goods
6,546,307.65 5,000,000.00 No 12,609,205.58
Technology Project Co., Ltd.
Wafangdian Tongda Bearing Purchase of goods
35,967,883.00 70,000,000.00 No 25,311,327.78
Manufacturing Co., Ltd.
Wazhou Group Wind power Purchase of goods
67,903,907.05 150,000,000.00 No 29,594,210.30
Bearing Ltd
Dalian Wazhou Bearing Purchase of goods/
10,239,204.30 19,720,000.00 No 7,600,761.94
Manufacturing Equipment Co., Ltd equipments
Wazhou Precision Steel Ball Purchase of goods
2,249,100.62 3,000,000.00 No 2,568,074.54
Company
Dalian GONA Wazhou Auto Purchase of goods
0.00 0.00 No 17,547,926.50
Bearings Co., Ltd
Wazhou Group Precision Roller Purchase of goods
47,821,095.07 95,000,000.00 No
limited company
Wazhou Group Precision Retainer Purchase of goods
27,936,491.52 50,000,000.00 No
Limited Company
Wazhou Group high-end auto Purchase of goods
64,029,180.29 200,000,000.00 No
bearing limited company
Wafangdian bearing Power Purchase of goods
10,391,594.66 14,730,000.00 No
Limited Company
72
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
Wazhou Group Bearing Purchase of reserve
Engineering technology research 1,518,389.62 0.00 Yes
cener
(2) Sales of goods
Related party Content current year prior year
Wazhou Exact Forge Ltd., Sales of goods 88,377,746.34 80,988,022.23
Wazhou Group Sales of goods 111,453.04 17,882,786.55
Wazhou Group (USA) Bearing CO., Ltd. Sales of goods 33,462,342.95 47,514,626.52
Wazhou Group Exact Transmission Bearing Sales of goods
17,128,024.78 14,527,459.89
Co., Ltd
Dalian Wazhou Manufacturing Equipment Co., Sales of goods
137,745.81 552,337.25
Ltd
Wazhou Group Precision Wind power Bearing Sales of goods
15,125,611.60 307,525.77
Ltd
Wazhou Group Special Precision Bearing Co., Sales of goods
255,794.10 1,454,091.21
Ltd.
Sales of goods
Wazhou Precision Steel Ball Company 999,505.14 758,255.81
Dalian Wazhou Jinzhou Machinery Co., Ltd Sales of goods 29,615.00 325,157.89
Wafangdian Tongda Bearing Manufacturing Sales of goods
213,232.25 115,769.90
Co., Ltd.
Wazhou Group Precision Roller limited Sales of goods
24,734,923.69
company
Wazhou Group Precision Retainer Limited Sales of goods
1,810,068.24
Company
Wazhou Group high-end auto bearing limited Sales of goods
129,506,733.45 3,782,649.18
company
Kugel- und Rollenlagerwerk Leipzig GmbH Sales of goods 1,549,815.31
Wazhou Group Precision Roller limited provide labour
services 8,585,573.54
company
Wazhou Group Special Precision Bearing Co., provide labour
services 295,246.43 180,012.65
Ltd.
provide labour
Dalian Wazhou Jinzhou Machinery Co., Ltd 57,455.85 48,488.29
services
provide labour
Wazhou Precision Steel Ball Company 762,464.12 447,879.20
services
Wazhou Group Exact Transmission Bearing provide labour
services 29,875.05 444,777.79
Co., Ltd
Dalian Wazhou Manufacturing Equipment Co., provide labour
services 281,992.44
Ltd
Wazhou Group high-end auto bearing limited provide labour
162,116.67
company services
73
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
Wafangdian Tongda Bearing Manufacturing provide labour
services 16,456.70
Co., Ltd.
4 Assets rent out
Detials can be found in the part VII “the important rlated party transactions” 1 “The relate transactions related to the
day-to-day operations.”
5 Related party assets transfer and debt structure reconstruction
6. Balances with related parties
(1) Accounts receivable due from related parties
Closing Balance Opening Balance
Item Related party
Book Balance Provision Book Balance Provision
Accounts Wazhou Exact Forge
86,948,569.30 72,591,219.00
receivable Ltd.,
Wazhou Group
Accounts
Precision Roller 81,463,810.50 58,601,148.69
receivable
Limited Company
Accounts Wazhou Group (USA)
20,881,871.65 34,524,492.48
receivable Bearing CO., Ltd.
Wazhou Group
Accounts
Precision Retainer 26,846,163.67 18,984,808.97
receivable
Limited Company
Wazhou Group Special
Accounts
Precision Bearing Co., 7,300,325.91 7,469,459.12
receivable
Ltd.
Accounts Wazhou Group
5,650,623.27 5,803,622.51
receivable Limited Company
Wazhou Group Exact
Accounts
Transmission Bearing 8,161,894.07 5,416,555.04
receivable
Co., Ltd
Wazhou Group
Accounts
high-end auto bearing 128,287,182.55 3,363,108.99
receivable
limited company
Accounts Wazhou Special Steel
2,472,047.85 1,879,073.48
receivable Ball Company
Kugel- und
Accounts
Rollenlagerwerk 952,567.08 1,267,310.71
receivable
Leipzig GmbH
Wafangdian Tongda
Accounts Bearing
31,825.61 1,143,547.03
receivable Manufacturing Co.,
Ltd.
Dalian Wazhou
Accounts
Jinzhou Machinery 283,037.97
receivable
Co., Ltd
Dalian Wazhou
Accounts Bearing
229,145.54
receivable Manufacturing
Equipment Co., Ltd
74
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
Closing Balance Opening Balance
Item Related party
Book Balance Provision Book Balance Provision
Kugel- und
Prepaid Rollenlagerwerk 5,418,484.83 3,793,488.27
Leipzig GmbH
Wazhou bearing Power
Prepaid 2,478,663.40
limited Company
Liao Ning North Metal
Prepaid 264,405.44 264,405.44
supply chain Co., Ltd
Wazhou Group Special
Prepaid Precision Bearing Co., 10,097.75
Ltd.
Other account Wazhou Group
9,007,028.83 724,150.65
receivables Limited Company
Wazhou Group
Other account
high-end auto bearing 148,634.68
receivables
limited company
(2) Accounts payable due from related parties
Item Related party Closing Balance Opening Balance
Wazhou Group Wind Power
Accounts payable 79,420,317.80 35,376,981.32
Bearing Ltd
Accounts payable Wazhou Group Limited Company 5,090,982.76 29,587,066.15
Wazhou Group Equipment
Accounts payable 24,254,120.38 24,330,456.54
Technology Project Co., Ltd.
Wafangdian Tongda Bearing
Accounts payable 38,076,842.42 21,632,590.88
Manufacturing Co., Ltd.
Dalian Wazhou Jinzhou
Accounts payable 5,756,087.80 18,776,204.59
Machinery Co., Ltd
Dalian Wazhou Bearing
Accounts payable Manufacturing Equipment Co., 15,687,532.20 17,045,051.43
Ltd
Accounts payable Wazhou Exact Forge Ltd., 18,985,396.43 16,308,870.51
Dalian Wazhou Fengyuan
Accounts payable 19,413,382.80 15,047,543.52
Machinery Co., Ltd
Dalian GONA Wazhou Auto
Accounts payable 12,770,936.20
Bearings Co., Ltd
Wazhou Group Precision Retainer
Accounts payable 10,138,236.57 9,351,415.46
Limited Company
Wazhou Precision Steel Ball
Accounts payable 3,742,520.45 4,181,697.61
Company
Wazhou Group Precision Roller
Accounts payable 4,755,543.08 4,441,561.22
Limited Company
75
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
Item Related party Closing Balance Opening Balance
Wazhou Group Exact
Accounts payable 15,603,554.03
Transmission Bearing Co., Ltd
Wazhou Group (USA) Bearing
Accounts payable 205,054.84
CO., Ltd.
Wazhou Group Special Precision
Accounts payable 114,525.00
Bearing Co., Ltd.
Wazhou Group high-end auto
Accounts payable 5,687.58
bearing limited company
Wazhou bearing power limited
Accounts payable 1,232,028.97 248,937.24
company
Wazhou Group Bearing Engineering
Accounts payable 1,112,430.38
technology research center
Other payables Wazhou Group limited company 3,267,645.80 6,512,982.70
Dalian Wazhou Bearing
Other payables Manufacturing Equipment Co., 431,088.45 431,088.45
Ltd
Wazhou Group Equipment
Other payables 952,000.00 952,000.00
Technology Project Co., Ltd.
7. Contingency
As at June 30,2017, the Group does not have any other contingencies.
XIII. Share-Based Payment
XIV. Commitment and Contingency
As at June 30,2016, the Group does not have any other significant commitments.
XV. Events after the Balance Sheet Date
The Group does not have any other significant events after the Balance Sheet Date.
XVI. Other Significant Events
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Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
XVII. Notes to the Main Items of the Financial Statements of Parent Company
1 Accounts receivable
(1) Accounts receivable category
Closing Balance
Item Booking balance Provision Booking
Amount % Amount % balance
Accounts receivable with
significant individual amount and 7,718,274.69 0.55% 7,718,274.69 100.00%
separate bad debt provision
Accounts receivable with bad debt
1,356,773,44 45,474,968.5
provision based on the characters 97.00% 5.21% 1,311,298,475.95
4.45 0
of credit risk portfolio
Accounts receivable with
33,489,185.8 33,489,185.8
insignificant individual amount 2.40% 100.00%
4 4
and separate bad debt provision
1,397,980,90 100.00 86,682,429.0
Total 6.20% 1,311,298,475.95
4.98 % 3
(Continued)
Opening Balance
Item Booking balance Provision Booking
Amount % Amount % balance
Accounts receivable with
7,718,274.6
significant individual amount 0.57% 7,718,274.69 100.00%
9
and separate bad debt provision
Accounts receivable with bad
debt provision based on the 1,316,741,2 1,271,216,
96.97% 45,524,624.70 5.34%
characters of credit risk 92.38 667.68
portfolio
Accounts receivable with
33,489,185.
insignificant individual amount 2.47% 33,489,185.84 100.00%
84
and separate bad debt provision
1,357,948,7 1,271,216,
Total 100.00% 86,732,085.23
52.91 667.68
1) Individually significant amounts of accounts receivable accrued the bad debt provision separately at the end of June
30,2017
Closing Balance
Debtors name Accounts Provision for Proportion
Reasons for provision
receivable bad debts (%)
A/R with over 5 years aging,
Company E 3,910,007.43 3,910,007.43 100.00%
unlikely to be collected
A/R with over 5 years aging,
Company F 3,808,267.26 3,808,267.26 100.00%
unlikely to be collected
Total 7,718,274.69 7,718,274.69 —
2) Accounts receivable accrued the bad debt provisions in the portfolio as accounting aging analysis method
Closing Balance
Aging
Accounts receivable Provision for bad Proportion
77
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
debts (%)
Within 1 year 719,742,776.83 7,197,427.77 1.00%
1-2 years 169,257,705.09 8,462,885.25 5.00%
2-3 years 52,263,895.31 10,452,779.06 20.00%
3-4 years 31,934,362.91 15,967,181.46 50.00%
Total 973,198,740.14 42,080,273.54
(2) Bad debt provision accrued and write-off (withdraw)
(3) Accounts receivable written off in current period
2 Other receivables
2. Other receivables
(1) The category of other receivables
Closing Balance
Items Booking balance Provision Booking balance
Amount % Amount %
Other receivables with significant individual
amount and separate bad debt provision
Other receivables with bad debt provision
31,891,5
based on the characters of credit risk 87.5% 828,459.71 4.63% 31,063,059.67
19.38
portfolio
Other receivables with insignificant
4,556,35 4,556,358.9
individual amount and separate bad debt 12.50% 100.00%
8.92 2
provision
Total 36,447,8 5,384,818.6
100.00% 31,063,059.67
78.30 3
(Continued)
Opening Balance
Items Booking balance Provision Booking
Amount % Amount % balance
Other receivables with significant individual
- - - - -
amount and separate bad debt provision
Other receivables with bad debt provision
19,504,288. 81.06 828,459.7
based on the characters of credit risk 6.18% 18,675,828.91
62 % 1
portfolio
Other receivables with insignificant 4,556,358.9 18.94 4,556,358.
100.00%
individual amount and separate bad debt 2 % 92
78
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
Opening Balance
Items Booking balance Provision Booking
Amount % Amount % balance
provision
Total 24,060,647. 100.00 5,384,818.
18,675,828.91
54 % 63
1) Other receivables accrued the bad debt provisions in the portfolio as accounting aging analysis method
Closing Balance
Aging Provision for bad Proportion
Other receivables
debts (%)
Within 1 year 15,896,594.17 158,965.94 1.00%
1-2 years 380,160.00 19,008.00 5.00%
2-3 years 535,416.66 107,083.33 20.00%
3-4 years 1,086,804.87 543,402.44 50.00%
Total 17,898,975.70 828,459.71
(2) Other receivables categorized by nature
Nature Closing Balance Opening Balance
Other receivables 36,447,878.30 24,060,647.54
Total 36,447,878.30 24,060,647.54
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
Provision
Closing
Opening Closing carried
Subsidiaries names Increase Decrease Balance of
Balance Balance current
provision
period
Wazhou Liaoyang Bearing
17,337,259.95 17,337,259.95
construction Co.,Ltd
Dalian Wazhou Precision Motor Car
45,478,956.37 45,478,956.37
Bearing Company Limited
Wazhou Precision of Spherical
Roller Bearings(Wafangdian)Co., 148,767,681.35 148,767,681.35
Ltd
79
Wafangdian Bearing Co., Ltd（Wazhou B） 2017 Mid-year Report
Total 211,583,897.67 211,583,897.67
4 Operating revenue and cost
Item This period Last period
Revenue Cost Revenue Cost
Revenue from main
972,513,250.78 857,675,134.61 1,045,680,912.95 974,858,913.33
operation
Revenue from other
149,234,390.96 142,142,020.55 93,470,653.82 91,153,250.73
operation
Total 1,121,747,641.74 999,817,155.16 1,139,151,566.77 1,066,012,164.06
XVII Supplementary Information to the Financial Statements
1. Non-operating profit or loss
Items Amount Notes
Gain or loss from disposal of non-current assets 10,771.00
Government grants recorded into profit or loss during current period 2,423,777.94
Profit or loss from debts restructuring 1,356,259.02
Others non-operating revenue and expense besides the above items 752,323.50
Effect from income tax 347,241.60
Total 4,195,889.86
2. Return on equity and earnings per share
Weighted average Earnings per share (EPS)
Profit of report period return on net assets Basic Diluted EPS
(%) EPS
Net profit attributable to shareholders of parent company 0.19% 0.007 0.007
Net profit after deducting non-recurring gains and losses
-0.11% -0.0039 -0.0039
attributable to shareholders of parent company
3. Differences in accounting information under IAS and domestic accounting standard
Chapter X. List of reference documents
1. The 2017 mid-yare 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.
80
