Wafangdian Bearing Compnay Limited The Q1 Report for 2021 Stock code: 200706 stock short form: Wazhou B Report code: 2021-12 Wafangdian Bearing Company Limited The Q1 Report for 2021 §1 Important Notes The Board of Directors, Board of Supervisors, directors, supervisors, and top management of the Company hereby guaranteed that there are no false records, misleading statements, and major omits in this report, and assumed the individual and associated responsibilities for the truth, accuracy and completeness of the contents. All directors attended the Board meeting and discussed the report. Chairman of the Board Mr. Liu Jun, Financial manager Ms.Sun Najuan, Accounting charger Ms.Zhang Yajing hereby confirms that the Financial Report of the quarterly report is true and complete. §2 Company's basic situation I .Major accounting data and financial indexes Whether the company needs to retroactively adjust or restate previous accounting data Applicable Inapplicable Unit: RMB yuan Jan-Mar 2021 Jan-Mar 2020 +/- to previous Operating income(Yuan) 413,507,921.87 393,595,783.19 5.06% Net profits attributed Shareholders(Yuan) 2,486,349.89 3,564,162.27 -30.24% Net profit (yuan) deducting non-recurring gains and losses attributable to shareholders of the 2,242,469.73 3,086,300.14 -27.34% listed company Net cash flows from operation activities -27,699,435.57 18,583,796.31 -249.05% Basic gains on per share 0.01 0.01 0.00% Diluted gains on per share 0.01 0.01 0.00% Weighted average return on equity(yuan) 0.30% 0.29% 0.01% 2021.3.31 2020.3.31 +/- to previous Total assets(yuan) 3,125,828,611.91 3,133,942,842.94 -0.26% Owners’ equity (shareholders’ equity)(yuan) 816,491,476.42 814,004,967.89 0.31% Items of non-recurring gains and losses Applicable □ Inapplicable Unit: RMB yuan Amount from the beginning Items of the year to the end of the Note reporting period Non-current assets disposal of profits and losses(Including the offset part -1,007,067.07 of the provision for assets impairment provision) Gains and losses included in the current period of government subsidies, excluding those government grants which are closely related to normal 1,212,169.22 business and in line with national policy, or in accordance with fixed standards or quantities Profit of loss from debts restructuring 594,244.41 1 Wafangdian Bearing Compnay Limited The Q1 Report for 2021 In addition to the normal business of the company effective hedging related business, tradable financial assets, derivative financial assets, tradable financial liabilities, changes in the fair value of the derivative financial liabilities to generate profits and 13,867.66 losses, as well as the disposal of tradable financial assets, derivative financial assets, tradable financial liabilities, derivative financial liabilities and other creditor's rights investment returns Other non-business income and expenditures other than the above -526,296.38 Influenced amount of income tax 43,037.68 Total 243,880.16 -- For the company according to the "Company Information Disclosure of Securities for Public Issuance Explanatory Announcement No. 1 - Non-Recurring Profit and Loss "define non-recurring gains and losses as defined in the project, and put the "company information disclosure of securities for public issuance explanatory announcement No. 1 - non-recurring profit and loss of non-recurring profit and loss items "defined as listed in the current profits and losses of the project, should be explained the reasons. Applicable Inapplicable During the reporting period of the company, there is no circumstance that the non-recurring profit and loss items listed in the explanatory notice no. 1 -- non-recurring profit and loss of the company information disclosure of publicly issued securities are defined as recurring profit and loss items. II .Total number of shareholders at the end of the report period and shares held by the top ten shareholders 1、Table of the total number of common shareholders and the number of preferred shareholders and the shareholding status of the top 10 shareholders Unit:: Share Total number of shareholder at the end Total number of shareholder at the end of report 5,896 0 of report period period with preferred stock (if any) The holdings of the top 10 shareholders Impawned or Frozen Shares Total shares Non-current Name Nature Ratio held shares held Status Amount Wafangdian State-owned Bearing Group 60.61% 244,000,000 244,000,000 shareholder Corporation AKTIEBOLAGET Foreign 19.70% 79,300,000 SKF shareholder China Merchants State-owned Securities Hong 1.86% 7,480,691 shareholder Kong Limitied Domestic Huang Junyue 1.72% 6,913,668 shareholder Domestic Hu Xiaofeng 0.47% 1,879,277 shareholder GUOTAI JUNAN Foreign SECURITIES(HON 0.34% 1,366,800 shareholder GKONG) LIMITED BOCI Foreign SECURITIES 0.33% 1,310,000 shareholder LIMITED Domestic Jin Yunhua 0.19% 750,000 shareholder Domestic Meng Qingliang 0.18% 734,548 shareholder MAN,KWAI Domestic 0.18% 713,101 WING 文贵荣 shareholder Top Ten Tradable Shareholders Name Current shares held at end of year Category of Shares 2 Wafangdian Bearing Compnay Limited The Q1 Report for 2021 Categories Amount AKTIEBOLAGET SKF 79,300,000 B 79,300,000 China Merchants Securities Hong Kong 7,480,691 B 7,480,691 Limitied Huang Junyue 6,913,668 B 6,913,668 Hu Xiaofeng 1,879,277 B 1,879,277 GUOTAI JUNAN 1,366,800 B 1,366,800 SECURITIES(HONGKONG) LIMITED BOCI SECURITIES LIMITED 1,310,000 B 1,310,000 Jin Yunhua 750,000 B 750,000 Meng Qingliang 734,548 B 734,548 MAN,KWAI WING 713,101 B 713,101 Zhou Lin 575,100 B 575,100 Explanation for the Affiliated Relations or United Action of the Top Ten There was no relationship and consistent activities between the first big shareholder and other shareholders or the top ten common stock holders; The relationship among other shareholders, top ten Shareholders and the Top Ten Tradable circulation shareholders, top ten circulation shareholders and other shareholders was not clear. Shareholders Whether the top 10 common shareholders of the company and the top 10 common shareholders of the company with unlimited conditions of sale shall carry out the agreed repurchase transaction during the reporting period □ Yes √No The top 10 common shareholders of the company and the top 10 common shareholders with unlimited conditions of sale did not carry out the agreed repurchase transaction during the reporting period. 2. Table of the total number of preferred shareholders and the shareholding status of the top 10 preferred shareholders Applicable Inapplicable §3 Significant items 1 The changes of main financial data and financial indicators in the reporting period and the reasons √Applicable□Inapplicable Unite:10000 yuan Closing Opening (+/_) Item Reasons for Change Amount Amount Ratio prepayments 11,054 5,377 105.6% Semi-finished products supplier an increase of 55.12 million yuan in advance Other receivables 203 1,420 -85.7% Travel, business activities deposit loan in this period have to submit an expense account inventory 83,844 61,566 36.2% Mainly finished goods are beginning an increase of 186.43 million yuan, the raw material is beginning an increase of 45.05 million yuan, semi-finished products fell 8.7 million yuan at the beginning Right to use assets 113 - On the basis of new lease criterion, network on rental housing confirmation to use assets 10,175 3,946 157.9% According to the provisions of the new guidelines will advance Contract liability payments without tax part weight classification as contract liability, this period deferred revenue increased dramatically Deal with the employee 2,598 5,268 -50.7% Paid in current period of provision of merit pay 23.55 million compensation yuan Payable taxes 927 369 151.2% VAT is beginning an increase of 658 yuan, the property tax to reduce 900000 yuan Other payables 7,444 12,948 -42.5% Payment to the supplier 46 million yuan 3 Wafangdian Bearing Compnay Limited The Q1 Report for 2021 Other current liabilities 1,207 513 135.3% According to the provisions of the new guidelines will be deferred revenue tax part classification for other current liabilities, debt contract is the initial increase in other current liabilities will increase Lease liability 127 - On the basis of new lease criterion, network on rental housing lease a liability Tax and additional 445 310 43.5% Mainly attached VAT tax increases Cost of sales 3,484 2,378 46.5% Mainly freight, poor travelling expenses from the previous increase Management fees 2,093 1,068 96.0% Mainly organization adjustment to current wage growth and insurance Research and development costs 3,144 4,623 -32.0% Current research and development projects and different lead to the project schedule of the previous period Non-operating income 6 225 -97.3% This fine of revenue from a year earlier Non-business expenses 86 12 616.7% Main is fine Profit total 249 356 -30.1% Tax and additional year-on-year increase of 1.35 million yuan. Four cost year-on-year increase of 6.38 million yuan, operating margin year-on-year increase of 8.96 million yuan Other related to business activities 1,327 144 821.5% Receive customer deposit more for this issue. of cash received Paid to the worker and the cash to 11,039 7,281 51.6% Paid in current period of wages and insurance gold to increase pay for the worker from a year earlier. Pay various taxes 1,456 947 53.7% This period of pay value added tax and business tax was increased over the same period last year. Other related to business activities 8,455 3,229 161.8% Paid in current period customer margin in this presentation, of cash payment balance of payments in the same item presentation over the same period last year Disposal of fixed assets, intangible 69 - This issue received sale of fixed assets. assets and other long-term assets recovery net cash Borrow money received in cash 9,900 6,000 65.0% This short-term borrowing to increase from a year earlier. Other related to the financing - 4,157 -100.0% In the same period last year to receive loans. activities of cash received Repayment of the debt to pay in 7,100 - This period to repay the loan to pay cash to increase from a cash year earlier. The impact of exchange rate 49 85 -42.4% Affected by currency movements. movements of cash and cash equivalents 2 .Progress of significant events, their influence, and analysis and explanation of their solutions □Applicable √Inapplicable Implementation progress of share repurchase □Applicable √Inapplicable Implementation progress of share buyback reduction through centralized bidding □Applicable √Inapplicable 3.The company, shareholders, actual controller, the acquirer, directors, supervisors and senior management personnel or other related parties to fulfill commitments and the final report has not been fulfilled in the reporting period □Applicable √Inapplicable During the reporting period of the company, there are no commitments made by the actual controller, shareholders, related parties, acquirers and 4 Wafangdian Bearing Compnay Limited The Q1 Report for 2021 other relevant parties of the company that have not been fulfilled within the reporting period. 4. The financial asset investment (1)Particular about security investment Applicable □Inapplicable 5 Wafangdian Bearing Company Limited The Q1 Report for 2020 Unit: RMB Yuan Changes in Included in the the fair value at cumulative Profit and Source The initial Accounting value of the Current Current Book value at Types of the changes in the loss in the Accounting s of Code abbreviations cost of measurement current purchase sold the end of the securities beginni fair value of the reporting subjects fundin investment model period amount amount period ng rights and period g profit and interests loss Domestic Transaction debt- The fair and 60100 Chongqing iron 228,046.0 overseas 5 and steel 567,033.30 value 0 13,867.66 -325,119.64 0.00 0.00 13,867.66 241,913.66 al financial for-e measurement assets quity stock 228,046.0 Total 567,033.30 -- 13,867.66 -325,119.64 0.00 0.00 13,867.66 241,913.66 -- -- 0 The securities investment for examination and approval of the board of directors announcement date For examination and approval of the securities investment shareholders announcement date (if any) (2)Particular about derivatives □Applicable √Inapplicable There is no derivative investment during the reporting period. 5.Progress of investment projects with raised funds □Applicable √Inapplicable 6.On June 1-2021 business performance Forecast to the next reporting period at the beginning of the final cumulative net profit may be a loss or substantial change of year-on-year warning and reasons. □Applicable √Inapplicable 7.Daily business major contracts □Applicable √Inapplicable 6 Wafangdian Bearing Company Limited The Q1 Report for 2020 8.Entrust financial management □Applicable √Inapplicable The report period of the company does not exist entrusted financial management. 9.Illegal external guarantee □Applicable √Inapplicable There is no violation of external guarantee during the reporting period. 10. Controlling shareholder and its related parties to the listing Corporation's non operating funds □Applicable √Inapplicable During the reporting period of the company, there is no non-operating capital occupied by the controlling shareholder or its related parties to the listed company. 11. Activities on receiving research, communication and interview in the report period Applicable Inapplicable The company during the reporting period, there was no reception activities such as research, communication and interview. §4 The financial statements I The financial statements 1.Consolidated Balance Sheet. Preparation unit: Wafangdian Bearing Co., LTD Unit: RMB Yuan Items March31, 2021 December31, 2020 Current assets : Monetary fund 178,423,922.63 194,152,280.08 Clearing reserves Lending money Trading financial assets 241,913.66 228,046.00 Derivative financial assets Notes receivable 309,039,607.62 416,044,578.48 Accounts receivable 898,645,897.13 975,628,091.12 Receivables financing 118,399,972.13 130,600,545.59 Prepayments 110,541,917.86 53,772,465.49 Premiums receivable Reinsurance accounts receivable Reserve for reinsurance contracts receivable Other receivable 2,030,088.10 14,204,144.25 Including: Interest receivable Dividend receivable Buy and sell back financial assets Inventory 838,435,783.16 615,656,946.30 Contract assets Holding assets for sale Non-current assets that mature within one year Other current assets 37,604,948.28 24,610,448.93 7 Wafangdian Bearing Company Limited The Q1 Report for 2020 Total current assets 2,493,364,050.57 2,424,897,546.24 Non- current assets: Make loans and advances Creditor's rights investment Other debt investments Long-term receivables Long-term equity investment Investment in other equity instruments 11,926,856.64 11,926,856.64 Other non-current financial assets Investment real estate 115,960,592.39 117,516,482.39 Fixed assets 400,481,405.17 474,109,923.22 Projects under construction 22,615,532.31 24,254,985.16 Productive biological assets Oil and gas assets Usage asset 1,133,261.19 Intangible assets 79,922,893.95 80,725,861.18 The development of spending goodwill Long-term deferred expenses 424,019.69 511,188.11 Deferred tax assets Other non-current assets Total non-current assets 632,464,561.34 709,045,296.70 Total assets 3,125,828,611.91 3,133,942,842.94 Current liabilities: Short-term borrowing 698,000,000.00 670,000,000.00 Borrowing from the central bank Funds borrowed from Transactional financial liabilities Derivative financial liability Notes payable 327,753,404.76 274,654,535.65 Accounts payable 959,613,669.43 1,044,801,896.85 Advance payment Contract liability 101,753,858.42 39,456,304.55 Sell repurchase of financial assets Deposit taking and trade keeping Acting to buy and sell securities Acting to underwrite securities Salary payable 25,984,377.76 52,677,141.09 Payable taxes 9,266,333.15 3,688,168.68 Other payables 74,442,217.02 129,476,061.47 Wherein: interest payable Dividends payable Handling charges and commissions payable Reinsurance accounts payable Holding liabilities for sale 8 Wafangdian Bearing Company Limited The Q1 Report for 2020 Non-current liabilities that mature within one year Other current liabilities 12,069,097.21 5,129,319.58 Total current liabilities 2,208,882,957.75 2,219,883,427.87 Non-current liabilities: Insurance contract reserve Long-term borrowing Bonds payable Wherein: preferred stock Sustainable debt Lease liability 1,269,918.83 Long-term payables 344,974.84 344,974.84 Pay staff on a long-term basis Estimated debts 39,338,443.83 39,032,270.91 Deferred revenue 58,766,391.89 59,942,753.08 Deferred tax liabilities 734,448.35 734,448.35 Other non-current liabilities Total non-current liabilities 100,454,177.74 100,054,447.18 Total liabilities 2,309,337,135.49 2,319,937,875.05 Owner's equity: equity 402,600,000.00 402,600,000.00 Other equity instruments Wherein: preferred stock Sustainable debt Capital reserves 485,691,050.47 485,691,050.47 Less: inventory stocks Other comprehensive income The special reserve 158.64 Surplus reserves 136,770,391.01 136,770,391.01 General risk provision Undistributed profit -208,570,123.70 -211,056,473.59 Aggregate equity attributable to parent 816,491,476.42 814,004,967.89 company Minority equity Total owners' equity 816,491,476.42 814,004,967.89 Total liabilities and equity 3,125,828,611.91 3,133,942,842.94 Chairman: Liu Jun General Accountant : Sun Najuan Accounting charger: Zhang Yajing 2.Balance Sheet Of Parent Company Unit: RMB Yuan Items 2021.3.31 2020.12.31 Current assets: Monetary fund 163,618,637.22 173,606,464.84 Trading financial assets 241,913.66 228,046.00 Derivative financial assets Notes receivable 309,039,607.62 325,928,761.07 9 Wafangdian Bearing Company Limited The Q1 Report for 2020 Accounts receivable 879,067,114.62 1,051,197,353.63 Receivables financing 115,420,972.13 125,606,963.37 prepayments 108,391,710.44 52,961,548.88 Other receivables 310,118,625.24 13,357,080.42 Wherein: interest receivable Dividends receivable inventory 511,449,549.42 472,723,348.67 Contract assets Holding assets for sale Non-current assets that mature within one year Other current assets 13,555,024.53 17,971,682.31 Total current assets 2,410,903,154.88 2,233,581,249.19 Non-current assets: Creditor's rights investment Other debt investments Long-term receivables Long-term equity investment 211,583,897.67 211,583,897.67 Investment in other equity instruments 11,926,856.64 11,926,856.64 Other non-current financial assets Investment real estate 102,196,892.51 103,505,103.77 Fixed assets 238,667,046.29 309,847,783.81 Projects under construction 20,294,257.87 21,933,710.72 Productive biological assets Oil and gas assets Usage asset 1,133,261.19 Intangible assets 63,556,908.03 64,192,377.21 The development of spending goodwill Long-term deferred expenses 358,855.31 432,059.78 Deferred tax assets Other non-current assets Total non-current assets 649,717,975.51 723,421,789.60 Total assets 3,060,621,130.39 2,957,003,038.79 Current liabilities: Short-term borrowing 698,000,000.00 670,000,000.00 Transactional financial liabilities Derivative financial liability Notes payable 327,753,404.76 274,654,535.65 Accounts payable 860,212,558.04 845,753,616.99 Advance payment Contract liability 92,839,209.32 40,196,130.87 Salary payable 19,983,950.78 43,148,413.71 Payable taxes 8,991,332.16 3,395,991.46 Other payables 71,460,839.20 109,599,140.08 Wherein: interest payable Dividends payable 10 Wafangdian Bearing Company Limited The Q1 Report for 2020 Holding liabilities for sale Non-current liabilities that mature within one year Other current liabilities 12,069,097.21 5,225,497.00 Total current liabilities 2,091,310,391.47 1,991,973,325.76 Non-current liabilities: Long-term borrowing Bonds payable Wherein: preferred stock Sustainable debt Lease liability 1,269,918.83 Long-term payables 244,974.84 244,974.84 Pay staff on a long-term basis Estimated debts 39,338,443.83 39,032,270.91 Deferred revenue 28,204,472.51 29,380,833.70 Deferred tax liabilities Other non-current liabilities Total non-current liabilities 69,057,810.01 68,658,079.45 Total liabilities 2,160,368,201.48 2,060,631,405.21 Owner's equity: equity 402,600,000.00 402,600,000.00 Other equity instruments Wherein: preferred stock Sustainable debt Capital reserves 485,678,443.26 485,678,443.26 Less: inventory stocks Other comprehensive income The special reserve Surplus reserves 136,770,391.01 136,770,391.01 Undistributed profit -124,795,905.36 -128,677,200.69 Total owners' equity 900,252,928.91 896,371,633.58 Total liabilities and equity 3,060,621,130.39 2,957,003,038.79 3. Consolidated Income Sheet. Unit: RMB Yuan Items Account for the current period Account for the prior period I. total operating revenue 413,507,921.87 393,595,783.19 Among them: operating revenue 413,507,921.87 393,595,783.19 Interest income The premium has been made Fees and commission income II. Total operating cost 411,850,901.15 393,178,043.74 Among them: operating cost 313,462,209.92 302,518,880.86 The interest payments Charges and commissions Surrender gold Net compensation expenditure Net provision for insurance liability 11 Wafangdian Bearing Company Limited The Q1 Report for 2020 Policy dividend payment Reinsurance expenses Taxes and surcharges 4,447,119.85 3,104,603.99 Cost of sales 34,842,427.82 23,780,153.66 Management fees 20,929,079.57 10,675,770.39 Research and development costs 31,439,606.72 46,226,400.00 Finance charges 6,730,457.27 6,872,234.84 Including: interest expense 6,378,239.70 6,897,360.45 Interest income 60,851.11 170,761.77 Plus: other benefits 1,212,169.22 1,070,896.92 Investment gains (loss marked with "-") 870,901.15 Among them: investment income to joint venture and joint venture Termination recognition of financial assets at amortized cost Exchange gains (loss marked with "-") Net exposure hedging income (loss marked with "-") Earnings from changes in fair value (loss 13,867.66 -44,684.69 marked with "-") Credit impairment loss (loss marked with 3,756.14 -2,347.18 "-") Impairment loss of assets (loss marked 538,655.19 -2,347.18 with "-") Gains from asset disposal (loss marked -1,007,067.07 0.00 with "-") III. Operating profit (loss marked with 3,289,303.01 1,439,257.32 "-") Plus: non-operating income 58,264.72 2,248,928.19 Less: non-operating expenses 861,217.84 124,023.24 IV. Total profit (total loss marked with 2,486,349.89 3,564,162.27 "-") Less: income tax expense V. net profit (net loss marked with "-") 2,486,349.89 3,564,162.27 (1) classification according to business continuity 1. Net profit from continuing operations 2,486,349.89 3,564,162.27 (net loss marked with "-") 2. Net profit from terminated operations (net loss marked with "-") (2) according to the ownership classification 1. Net profit attributable to the parent 2,486,349.89 3,564,162.27 owner 2. Minority shareholder gains and losses VI.The net after-tax value of other comprehensive income The net after-tax value of other consolidated income attributable to the parent owner (1) other comprehensive income that cannot be reclassified into profit or loss 12 Wafangdian Bearing Company Limited The Q1 Report for 2020 1. Reset the change amount of the benefit plan 2. Other comprehensive income that cannot be transferred under the equity method 3. Changes in the fair value of other equity instruments 4. Changes in the fair value of the enterprise's own credit risk 5. Other (2) other comprehensive income reclassified into profit and loss 1. Other comprehensive income that can be transferred under the equity method 2. Changes in the fair value of other debt investments 3. The amount of financial assets reclassified into other comprehensive income 4. Provisions for impairment of other creditor's rights investment credit 5. Cash flow hedging reserve 6. Translation of foreign currency financial statements 7. Other The net after-tax value of other consolidated income attributable to minority VII.Total comprehensive income 2,486,349.89 3,564,162.27 Total consolidated income attributable to 2,486,349.89 3,564,162.27 the parent owner Total aggregate income attributable to minority shareholders VIII. Earnings per share: (1) basic earnings per share 0.01 0.01 (2) diluted earnings per share 0.01 0.01 Chairman: Liu Jun General Accountant : Sun Najuan Accounting charger: Zhang Yajing 4.Income Sheet of Parent Company Unit: RMB Yuan Items Account for the current period Account for the prior period I. operating revenue 569,683,324.45 397,323,637.09 Less: operating costs 475,575,675.92 308,683,197.27 Taxes and surcharges 4,005,143.68 2,572,792.48 Cost of sales 33,533,312.48 23,230,686.69 Management fees 15,643,019.42 6,181,514.37 Research and development costs 30,353,865.45 46,203,000.00 Finance charges 6,744,131.93 6,953,901.58 Including: interest expense 6,378,239.70 6,897,360.45 Interest income 43,505.46 85,756.26 Plus: other benefits 1,204,799.64 940,427.69 Investment gains (loss marked with "-") 614,472.65 0.00 13 Wafangdian Bearing Company Limited The Q1 Report for 2020 Among them: investment income to joint venture and joint venture Termination of income recognition of financial assets measured at amortized cost (loss marked with "-") Net exposure hedging income (loss marked with "-") Earnings from changes in fair value 13,867.66 -44,684.69 (loss marked with "-") Credit impairment loss (loss marked -2,347.18 with "-") Impairment loss of assets (loss marked 30,000.00 0.00 with "-") Gains from asset disposal (loss marked -1,007,067.07 with "-") II. Operating profit (loss marked with 4,684,248.45 4,391,940.52 "-") Plus: non-operating income 58,264.72 1,744,952.89 Less: non-operating expenses 861,217.84 124,023.24 III. Total profit (total loss marked with 3,881,295.33 6,012,870.17 "-") Less: income tax expense IV. Net profit (net loss marked with "-") 3,881,295.33 6,012,870.17 (1) net profit from continuing 3,881,295.33 6,012,870.17 operations (net loss marked with "-") (2) net profit from terminated operations (net loss marked with "-") V.Net after tax of other comprehensive income (1) other comprehensive income that cannot be reclassified into profit or loss 1. Reset the change amount of the benefit plan 2. Other comprehensive income that cannot be transferred under the equity method 3. Changes in the fair value of other equity instruments 4. Changes in the fair value of the enterprise's own credit risk 5. Other (2) other comprehensive income reclassified into profit and loss 1. Other comprehensive income that can be transferred under the equity method 2. Changes in the fair value of other debt investments 3. The amount of financial assets reclassified into other comprehensive income 4. Provisions for impairment of other creditor's rights investment credit 5. Cash flow hedging reserve 14 Wafangdian Bearing Company Limited The Q1 Report for 2020 6. Translation of foreign currency financial statements 7. Other VI.Total comprehensive income 3,881,295.33 6,012,870.17 VII. Earnings per share: (1) basic earnings per share 0.01 0.01 (2) diluted earnings per share 0.01 0.01 5.Consolidated Cash Flow Statement. Unit: RMB Yuan Items Account for the current period Account for the prior period I. Cash flow generated from operating activities: Cash received from the sale of goods 268,684,482.92 263,901,627.18 and services Net increase in customer deposits and inter bank deposits Net increase in borrowing from the central bank Net increase in borrowing from other financial institutions Cash received from the premium of the original contract of insurance Receipt of net reinsurance cash Net increase in household savings and investment funds Cash for the collection of interest, fees and commissions Net increase of funds borrowed Net increase of funds in repo business Net cash received for the sale of securities Tax refunds received To receive other cash related to 13,269,838.53 1,440,531.09 operating activities Subtotal cash inflow from operating 281,954,321.45 265,342,158.27 activities Cash for the purchase of goods and 100,159,217.33 132,193,729.55 services Net increase in customer loans and advances Net increase in deposits of central bank and interbank funds Payment of the original insurance contract in cash A net increase in divested funds Cash for payment of interest, fees and commissions Cash to pay policy dividends Cash payments to and for employees 110,389,374.00 72,813,451.86 Taxes paid 14,556,590.53 9,466,149.14 15 Wafangdian Bearing Company Limited The Q1 Report for 2020 Payment of other cash related to 84,548,575.16 32,285,031.41 operating activities Subtotal cash outflows from operating 309,653,757.02 246,758,361.96 activities Net cash flow from operating activities -27,699,435.57 18,583,796.31 II. Cash flow generated by investment activities: Recover the cash received from the investment Cash received from the proceeds of an 18,821.12 investment Net cash recovered from the disposal of fixed assets, intangible assets and other 692,187.72 long-term assets Dispose of the net cash received by subsidiaries and other business units Other cash received in connection with investment activities Investment activity cash inflow subtotal 711,008.84 0.00 Cash paid for the purchase and construction of fixed assets, intangible 266,026.51 1,205,036.75 assets and other long-term assets Cash paid for investment Net increase in pledged loans Net cash paid by subsidiaries and other business units Payment of other cash related to investment activities Subtotal cash outflows from investment 266,026.51 1,205,036.75 activities Net cash flow from investment 444,982.33 -1,205,036.75 activities III. Cash flow generated by financing activities: Absorb the cash received from investment Among them: the subsidiary absorbs the cash received from minority shareholders' investment Obtain cash received on loan 99,000,000.00 60,000,000.00 Other cash received in connection with 41,567,823.29 fund-raising activities Financing activities cash inflow subtotal 99,000,000.00 101,567,823.29 Payment of debt in cash 71,000,000.00 Cash used to pay dividends, profits, or 7,255,081.89 7,562,384.39 interest payments Among them: the dividends and profits paid by the subsidiary to minority shareholders Payment of other cash related to 42,000,000.00 financing activities Financing activities cash outflow 78,255,081.89 7,562,384.39 subtotal Net cash flow from financing activities 20,744,918.11 94,005,438.90 16 Wafangdian Bearing Company Limited The Q1 Report for 2020 IV.The impact of exchange rate fluctuations on cash and cash 487,647.36 847,392.08 equivalents V.Net increase in cash and cash -6,021,887.77 112,231,590.54 equivalents Plus: balance of cash and cash equivalents at the beginning of the 163,728,799.97 137,324,488.53 period VI.Balance of ending cash and cash 157,706,912.20 249,556,079.07 equivalents 6. Cash flow statement of the parent company unit:yuan Items Current amount Previous amount I. cash flow generated from operating activities: Cash received from the sale of goods 260,929,771.29 255,602,436.28 and services Tax refunds received To receive other cash related to 13,098,004.54 1,223,162.36 operating activities Subtotal cash inflow from operating 274,027,775.83 256,825,598.64 activities Cash for the purchase of goods and 140,988,085.18 137,824,769.98 services Cash payments to and for employees 94,816,600.72 62,253,774.12 Taxes paid 14,102,774.51 8,291,381.30 Payment of other cash related to 46,758,027.06 30,789,581.44 operating activities Subtotal cash outflows from operating 296,665,487.47 239,159,506.84 activities Net cash flow from operating activities -22,637,711.64 17,666,091.80 II. Cash flow generated by investment activities: Recover the cash received from the investment Cash received from the proceeds of an 18,821.12 investment Net cash recovered from the disposal of fixed assets, intangible assets and other 692,187.72 long-term assets Dispose of the net cash received by subsidiaries and other business units Other cash received in connection with investment activities Investment activity cash inflow subtotal 711,008.84 0.00 Cash paid for the purchase and construction of fixed assets, intangible 219,126.51 218,101.00 assets and other long-term assets Cash paid for investment Net cash paid by subsidiaries and other business units Payment of other cash related to investment activities 17 Wafangdian Bearing Company Limited The Q1 Report for 2020 Subtotal cash outflows from investment 219,126.51 218,101.00 activities Net cash flow from investment 491,882.33 -218,101.00 activities III. Cash flow generated by financing activities: Absorb the cash received from investment Obtain cash received on loan 99,000,000.00 60,000,000.00 Other cash received in connection with 41,567,823.29 fund-raising activities Financing activities cash inflow subtotal 99,000,000.00 101,567,823.29 Payment of debt in cash 71,000,000.00 Cash used to pay dividends, profits, or 7,255,081.89 7,562,384.39 interest payments Payment of other cash related to financing activities Financing activities cash outflow 78,255,081.89 7,562,384.39 subtotal Net cash flow from financing activities 20,744,918.11 94,005,438.90 IV.The impact of exchange rate fluctuations on cash and cash 487,647.36 847,392.08 equivalents V.Net increase in cash and cash -913,263.84 112,300,821.78 equivalents Plus: balance of cash and cash equivalents at the beginning of the 111,467,242.63 101,216,633.47 period VI.Balance of ending cash and cash 110,553,978.79 213,517,455.25 equivalents II. Explanation of the adjustment of financial statements 1. For the first time since 2021, perform new lease criterion to adjust for the first time at the beginning of the financial statements. Applicable Inapplicable Whether to need to adjust the balance sheet at the beginning of subjects YES NO Consolidated balance sheet Items December31, 2020 January 1, 2021 Adjust the number Current assets : Monetary fund 194,152,280.08 194,152,280.08 Trading financial assets 228,046.00 228,046.00 Notes receivable 416,044,578.48 416,044,578.48 Accounts receivable 975,628,091.12 975,628,091.12 Receivables financing 130,600,545.59 130,600,545.59 Prepayments 53,772,465.49 53,772,465.49 Other receivable 14,204,144.25 14,204,144.25 Inventory 615,656,946.30 615,656,946.30 Other current assets 24,610,448.93 24,610,448.93 18 Wafangdian Bearing Company Limited The Q1 Report for 2020 Total current assets 2,424,897,546.24 2,424,897,546.24 Non- current assets: Investment in other equity 11,926,856.64 11,926,856.64 instruments Investment real estate 117,516,482.39 117,516,482.39 Fixed assets 474,109,923.22 474,109,923.22 Projects under construction 24,254,985.16 24,254,985.16 Usage asset 1,256,680.47 1,256,680.47 Intangible assets 80,725,861.18 80,725,861.18 Long-term deferred 511,188.11 511,188.11 expenses Total non-current assets 709,045,296.70 710,301,977.17 Total assets 3,133,942,842.94 3,135,199,523.41 Current liabilities: Short-term borrowing 670,000,000.00 670,000,000.00 Notes payable 274,654,535.65 274,654,535.65 Accounts payable 1,044,801,896.85 1,044,801,896.85 Contract liability 39,456,304.55 39,456,304.55 Salary payable 52,677,141.09 52,677,141.09 Payable taxes 3,688,168.68 3,688,168.68 Other payables 129,476,061.47 129,476,061.47 Other current liabilities 5,129,319.58 5,129,319.58 Total current liabilities 2,219,883,427.87 2,219,883,427.87 Non-current liabilities: Lease liability 1,256,680.47 1,256,680.47 Long-term payables 344,974.84 344,974.84 Estimated debts 39,032,270.91 39,032,270.91 Deferred revenue 59,942,753.08 59,942,753.08 Deferred income tax 734,448.35 734,448.35 liabilities Total non-current liabilities 100,054,447.18 101,311,127.65 Total liabilities 2,319,937,875.05 2,321,194,555.52 Owner's equity: equity 402,600,000.00 402,600,000.00 Capital reserves 485,691,050.47 485,691,050.47 Surplus reserves 136,770,391.01 136,770,391.01 Undistributed profit -211,056,473.59 -211,056,473.59 Owners' equity attributable to the parent company in 814,004,967.89 814,004,967.89 total Total owners' equity 814,004,967.89 814,004,967.89 Total liabilities and equity 3,133,942,842.94 3,135,199,523.41 Adjustment description New lease criterion for the chief executive policy adoption of the transition period, new lease criterion allows using two methods: method 1 is to allow enterprises to adopt retroactive adjustment; Method 2 is the first time according to the execution of the cumulative impact of these standards, adjust this criterion for the first time at the beginning of the retained earnings and the financial statements of other items, do not adjust the comparable period information. At the same time, provides a number of simplified processing arrangement method 2. In combination with the provisions of the new lease criterion, the board of directors agreed on January 1, 2021 began to implement new lease criterion, on policy guidelines transition by using the method 2 above, and USES the simplified treatment, i.e., the lease 19 Wafangdian Bearing Company Limited The Q1 Report for 2020 liability equals the present value of the remaining rental payment, right to use assets is equal to the lease liability amount and make necessary adjustments. By using this method, will not affect the company's retained earnings at the beginning of 2021. Perform new lease criterion for the company in accordance with the above provisions, the influence of the company on January 1, 2021 for all rental (choose to simplify the processing of short-term lease and low value assets lease except) confirmed to use asset and lease liability, and confirm the depreciation and interest expense. According to the transition policy, the company in implementing the new lease criterion when choosing simplified processing, without adjusting retained earnings at the beginning of 2021, do not need to adjust the comparable period information. The parent company's balance sheet. Items December31, 2020 January 1, 2021 Adjust the number Current assets : Monetary fund 173,606,464.84 173,606,464.84 Trading financial assets 228,046.00 228,046.00 Notes receivable 325,928,761.07 325,928,761.07 Accounts receivable 1,051,197,353.63 1,051,197,353.63 Receivables financing 125,606,963.37 125,606,963.37 Prepayments 52,961,548.88 52,961,548.88 Other receivable 13,357,080.42 13,357,080.42 Inventory 472,723,348.67 472,723,348.67 Other current assets 17,971,682.31 17,971,682.31 Total current assets 2,233,581,249.19 2,233,581,249.19 Non- current assets: Long-term equity 211,583,897.67 211,583,897.67 investment Investment in other equity 11,926,856.64 11,926,856.64 instruments Investment real estate 103,505,103.77 103,505,103.77 Fixed assets 309,847,783.81 309,847,783.81 Projects under construction 21,933,710.72 21,933,710.72 Usage asset 1,256,680.47 1,256,680.47 Intangible assets 64,192,377.21 64,192,377.21 Long-term deferred 432,059.78 432,059.78 expenses Total non-current assets 723,421,789.60 724,678,470.07 Total assets 2,957,003,038.79 2,958,259,719.26 Current liabilities: Short-term borrowing 670,000,000.00 670,000,000.00 Notes payable 274,654,535.65 274,654,535.65 Accounts payable 845,753,616.99 845,753,616.99 Contract liability 40,196,130.87 40,196,130.87 Salary payable 43,148,413.71 43,148,413.71 Payable taxes 3,395,991.46 3,395,991.46 Other payables 109,599,140.08 109,599,140.08 Other current liabilities 5,225,497.00 5,225,497.00 Total current liabilities 1,991,973,325.76 1,991,973,325.76 Non-current liabilities: Lease liability 1,256,680.47 1,256,680.47 Long-term payables 244,974.84 244,974.84 Estimated debts 39,032,270.91 39,032,270.91 20 Wafangdian Bearing Company Limited The Q1 Report for 2020 Deferred revenue 29,380,833.70 29,380,833.70 Total non-current liabilities 68,658,079.45 69,914,759.92 Total liabilities 2,060,631,405.21 2,061,888,085.68 Owner's equity: equity 402,600,000.00 402,600,000.00 Capital reserves 485,678,443.26 485,678,443.26 Surplus reserves 136,770,391.01 136,770,391.01 Undistributed profit -128,677,200.69 -128,677,200.69 Total owners' equity 896,371,633.58 896,371,633.58 Total liabilities and equity 2,957,003,038.79 2,958,259,719.26 Adjustment description New lease criterion for the chief executive policy adoption of the transition period, new lease criterion allows using two methods: method 1 is to allow enterprises to adopt retroactive adjustment; Method 2 is the first time according to the execution of the cumulative impact of these standards, adjust this criterion for the first time at the beginning of the retained earnings and the financial statements of other items, do not adjust the comparable period information. At the same time, provides a number of simplified processing arrangement method 2. In combination with the provisions of the new lease criterion, the board of directors agreed on January 1, 2021 began to implement new lease criterion, on policy guidelines transition by using the method 2 above, and USES the simplified treatment, i.e., the lease liability equals the present value of the remaining rental payment, right to use assets is equal to the lease liability amount and make necessary adjustments. By using this method, will not affect the company's retained earnings at the beginning of 2021. Perform new lease criterion for the company in accordance with the above provisions, the influence of the company on January 1, 2021 for all rental (choose to simplify the processing of short-term lease and low value assets lease except) confirmed to use asset and lease liability, and confirm the depreciation and interest expense. According to the transition policy, the company in implementing the new lease criterion when choosing simplified processing, without adjusting retained earnings at the beginning of 2021, do not need to adjust the comparable period information. 2.For the first time since 2021, the new lease criterion back adjust the comparative data of the early instructions Applicable Inapplicable III.Audited Report The Q1 Report is not audited. YES NO 21