Wafangdian Bearing Company Limited the Q3 abstract for 2017 Stock code:200706 Stock ID: Wazhou B Announcement No.2017-45 Wafangdian Bearing Company Limited the Q3 abstract for 2017 Chapter I. Important Prompts The board of directors, board of supervisors, directors, supervisors and the top management guarantee there is no false record, misleading statement or major omission in the report, and take responsibilities for the truth, accuracy and completeness of the contents. Besides the following directors, all the other directors attended the Board meeting and discussed the report. Name Post Reasons Assignee name Wan Shouyi Independent director Busy work Liu Yuping The charger of company Mr. Meng Wei, financial controller Ms. Sun Najuan and the charger of accounting department Mr. Wang Jiyuan made the statement: guarantee the truth, completeness of the financial report of the third quarter report. Chapter II. Main financial dates and shareholder changes 2.1 Main accounting data and financial indicators Unit: Yuan +/-(%)compared between 2017.09.30 2016.12.31 the end of current period and last year Total assets(RMB) 3,368,772,988.61 3,553,947,227.09 -5.21% Owner’s Equity Attributed to Shareholders of Listed 1,378,331,607.49 1,379,337,925.55 -0.07% Company(RMB) 2017.07-.09 +/-(%) to period 2017.01-.09 +/-(%) to period Turnover(RMB) 484,963,005.25 -15.02% 1,620,463,580.58 -4.46% Net profit attributable to shareholders of 386,046.39 3,019,681.94 the listed company(RMB) Net profit attributable to the shareholders of the -5,518,330.61 -59.34% -7,080,584.92 -89.71% listed company and after deducting of non-recurring gain/loss(RMB) Net Cash flow generated by business -- -- -40,977,936.68 -313.58% operation(RMB) Basic earnings per share(Yuan/share) 0.0010 0.0080 Diluted earnings per share(Yuan/share) 0.0010 0.0080 Net assets yield (%) 0.03% 0.77% 0.22% 4.29% Abnormal profit and loss items √Applicable □Not applicable Unit: Yuan Abnormal profit and loss items 2017.01-2017.09 Profits and losses relating to disposal of fixed assets -10,614.25 Government grants recorded into profit or loss during current 4,890,166.91 period Profits and losses relating to the debt restructure 1,697,754.73 Other non-business income and expenditures other than the above 4,701,345.34 Less: Influenced amount of income tax 1,178,385.87 Total 10,100,266.86 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 2.2. The statement of total number of shareholders and the first 10 shareholders of current shares in the end of the report period Unit: Share Total number of shareholder at the end of 6875 report period The situation of the first 10 shareholders of current shares Total shares Non-current Impawned or Frozen Shares Name Nature Ratio(%) held shares held Status Amount Wafangdian Bearing State-owned 60.61% 244,000,000 244,000,000 Group Corporation shareholder Foreign AKTIEBOLAGET SKF 19.70% 79,300,000 shareholder BOCI SECURITIES Foreign 1.37% 5,516,953 LIMITED shareholder Domestic Huang Junyue 1.18% 4,768,300 shareholder Domestic Hu Xiaofeng 0.47% 1,879,277 shareholder Domestic Jin Yunhua 0.33% 1,311,256 shareholder GUOTAI JUNAN Foreign SECURITIES(HONGK 0.29% 1,184,900 shareholder ONG) LIMITED Domestic Zhou Jie 0.25% 1,002,100 shareholder MAN,KWAI Foreign private 0.18% 713,101 WING文贵荣 shareholder Domestic Ma Yuancheng 0.15% 596,966 shareholder The situation of the first 10 shareholders of current shares Category of Shares Name Current shares held at end of year (Note 4) Categories Amount AKTIEBOLAGET SKF 79,300,000 B 79,300,000 BOCI SECURITIES LIMITED 5,516,953 B 5,516,953 Huang Junyue 4,768,300 B 4,768,300 Hu Xiaofeng 1,879,277 B 1,879,277 Jin Yunhua 1,311,256 B 1,311,256 1 GUOTAI JUNAN 1,184,900 B 1,184,900 SECURITIES(HONGKONG) LIMITED Zhou Jie 1,002,100 B 1,049,915 MAN,KWAI WING文贵荣 713,101 B 713,101 Ma Yuancheng 596,966 B 596,966 Zhou Junlin 547,801 B 547,801 There was no relationship and consistent activities between the first big shareholder and other Notes to relationship or “action in shareholders or the top ten common stock holders; The relationship among other shareholders, concert”among the top ten shareholders. top ten circulation shareholders, top ten circulation shareholders and other shareholders was not clear. Whether the top ten shareholders with common stock and top ten shareholders with unlimited common stock agree with the company to buy back the stock or not? □Applicable √Inapplicable Chart of preferred stock shareholders and the first tenth shareholders holding shares □Applicable √Inapplicable Chapter III. Important Items 3.1 The great changes in company’s key financial statement, financial indicators, and the reasons √Applicable □Not applicable Unite:0000Yuan Beginning +/-(%) to No. Items End of year Explanation period period The main reason is that the payment of the bill to the supplier is about 171.41 million yuan, resulting in net cash 1 Monetary fund 11,228.4 18,441.6 -39.1% flow of -40.98 million yuan, so the money funds are reduced from the beginning of the year The balance of the bill is more than the bill payment to the 2 Bills receivable 18,827.3 10,918.1 72.4% supplier, so the balance of the bill is increased at the beginning of the year Accounts payable Mainly based on the market changes,the advance of 3 2,520.8 1,608.5 56.7% in advance material mills increased Other accounts Mainly caused by prepaid expenses increase from the 4 2,587.7 1,970.6 31.3% receivable beginning. The main reason is that the initial funding of finished products has been reduced by 87.17million,the production fund has been reduced by 2 million at the beginning of the 5 Iventory 75,813.1 84,242.9 -10.0% period,and the reserve fund has increased by 4.52million at the beginning of the period,and the low value consumables have increased by 360,000 at the beginning of the period Other current Mainly because the branch company’s pending deduction 6 491.5 720.3 -31.8% assets entry tax is less than the initial decrease. Long-term prepaid Mainly increase spherical decorate 279000 modernize of 7 73.1 52.1 40.2% expense the company. The main issue is the bill issued to the supplier and the 8 Note payable 26,656.1 42,551.5 -37.4% repayment of the notes payable due to the discount. It is mainly the end value added tax and the tax attached, 9 Tax payable 737.3 1,914.1 -61.5% the sale of the land value added tax is decreasing from 2 the beginning. 10 Interest payable - 92.7 -100.0% This is mainly due to a reduction in interest on borrowing. Non-current At the beginning of this period, 90 million borrowings have 11 liabilities due within 5,000.0 9,000.0 -44.4% been repaid, the aditional 50 million yuan is a long-term I year loan due in a year. This period the long-term loan of 50 million yuan due in 12 Long-term loan - 5,000.0 -100.0% one year will be reclassified into a non-current liability in a year. 2017.1.1-9. +/-(%) to Items Last peirod Explanation 30 period It is mainly affected by the change of the camp, the Tax & surcharges 13 1,458.84 831.33 75.5% current tax and the increase of the year-on-year growth for main operations accounting inconsistencies. It is mainly due to the recovery of the commodity value of Loss of impairment 14 -1,252.37 -575.57 117.6% this period, the sale of overstocked goods, etc., to return of assets to the inventory price to be caused by the price. Mainly because working capital loan interest year-on-year increase of 3.65 million yuan, discount rates rose 2.23 15 Financial expense 3,057.55 2,082.91 46.8% million, year-on-year increase of 1.83 million exchange loss, exchange earnings fell 5.62 million, long-term borrowing interest year-on-year decline of 3.65 million." According to the financial information [2017] no.15, government subsidies related to daily activities will be 16 Other income 14.70 0.00 counted into other benefits in accordance with the economic business substance. This is mainly due to the decrease in the current Non-operating 17 1,155.20 1,883.86 -38.7% non-current asset disposal, government subsidies and revenue debt restructuring. The main issue is that there is no loss due to debt 18 Non-operating cost 27.33 200.70 -86.4% restructuring in this period. Mainly, the operation quality is stabilizing, the cost control is strengthened, the management expenses and sales 19 Net profit 301.97 -5,381.18 -105.6% expenses are obviously reduced, and the profitability of the products is promoted. Other cash Mainly because the reduction in government subsidies 20 received relating to 545.9 836.6 -34.7% operating activities received during this period. The main payment of VAT and its attached tax, the sale of 21 Tax payments 6,516.9 3,763.4 73.2% land value added tax increases. Mainly because this period received 240,000 dividends Cash received from 22 - 24.0 -100.0% from Shanghai Aaimuyi Electromechanical Equipment investment incomes Chain Company Limited in 2014. Net cash received from disposal of This period is mainly for the sale of the Harbin real estate fixed assets, 23 492.2 1,000.0 -50.8% sales of 486.8 million yuan, and the same period 10 intangible assets and other million is received the asset payment to the group. long-term assets Cash paid to acquire fixed assets, intangible Mainly because the construction of payment decline 24 827.7 4,909.9 -83.1% assets and compared with last peirod. other long-term assets 3 Other proceeds Due to the impact of financing,resulting in the other cash 25 relating to financing 49,186.4 33,884.4 45.2% received that related to financing activities has increased activities over the same period. Due to the impact of financing,resulting in the other cash Cash paid for other 26 44,824.8 30,000.0 49.4% payment related to financing activities has increased over financing activities the same period. Effects of foreign 27 exchange rate -125.6 185.5 -167.7% It's mostly about dollar exchange rate movements. changes on cash 3.2 The situation of major items in progress and the analysis explanation on its effect and resolved proposal. None 3.3 The fulfillment of the items that the company, shareholder with more than 5% shares and the actual controller etc. during the report period, or before it. □ Applicable √Not applicable 3.4 Operation forecast for year 2017 □ Applicable √Not applicable 3.5 Security investment information Statement of holding other listing company equity □Applicable √Not applicable 3.6 Statement of holding other listing company equity □Applicable √Not applicable 3.7 Reception of investigations,communications,or interviews in the report period Time/date Place Way Type of visitors Visitors Index catalog Understand the company’s Telephone July 11,2017 Office Private investor Private investor production and operation communication status 3.8 Violation of guaranty □ Applicable √Not applicable 3.9 Controlling shareholders and their related parties' non-operational appropriation of funds for listed companies □ Applicable √Not applicable 3.10 social responsibility of targeted poverty alleviation 4