Wafangdian Bearing Company Limited 2021 Midyear Report
Wafangdian Bearing Company Limited
2021 Midyear Report
2021-24
August ,2020
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Wafangdian Bearing Company Limited 2021 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.
Chairman Mr.Liu Jun , General Accountant Ms. Sun Najuan and accounting charger Ms. Zhang Yajing
declare: guarantee the truth and completeness of the financial report in the annual report.
All directors attended the Board meeting and discussed the report.
This semi-annual report involves forward-looking statements such as future prospects and plans, which
do not constitute a substantial commitment to the company's investors. Investors are advised to pay attention
to investment risks.
The Company has described in detail the relevant risks in this report, which does not constitute a
material commitment of the Company to investors. Investors are requested to maintain sufficient risk
awareness and understand the differences between plans, forecasts and commitments.In the third section of
this report, "Management Discussion and Analysis" and "X. Risks faced by the Company and
Countermeasures", the company describes in detail the possible risks and countermeasures in the company's
operation. Investors are invited to pay attention to the relevant contents.
The company plans to distribute no cash dividend, no bonus, no accumulation fund to increase capital.
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Wafangdian Bearing Company Limited 2021 Midyear Report
Table of Contents
Chapter I. Important Prompts, Table of Contents, and Definitions................................................................. 2
Chapter II. Company Profile......................................................................................................................6
Chapter III Business Summary................................................................................................................. 9
Chapter IVCorporate governance............................................................................................................15
ChapterV. Environmental and social responsibility....................................................................................16
ChapterVI. Significant Events................................................................................................................. 17
ChapterVII. Change of Shares and Particulars about Shareholders............................................................25
ChapterVIII. Relevant Information about preferred Shares........................................................................ 29
ChapterIX. Related Situation of bonds.....................................................................................................29
ChapterX. Financial Report.................................................................................................................... 30
Relevant Information about preferred Shares
Related Situation of bonds
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Wafangdian Bearing Company Limited 2021 Midyear Report
File directory for reference
1. Semi-annual financial statements for 2021 with the signature and seal of the person in charge of the
company, the person in charge of the accounting work and the person in charge of the accounting
institution (the person in charge of the accounting);
2. Originals of all company documents and original announcements publicly disclosed in newspapers
designated by CSRC during the reporting period.
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Wafangdian Bearing Company Limited 2021 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
Defined as January 1,2020–June 30,2020
period
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
Wafangdian Bearing Company Limited The Board of
The Board of Directors Defined as
Directors
Wafangdian Bearing Company Limited The
The Supervisory Committee Defined as
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 2021 Midyear Report
Chapter II.Company Profile
I. Company Information
Abbreviated name of the stock Wazhou B Stock code: 200706
Listing location of the Company’
Shenzhen Stock Exchange
s stock:
Chinese name of the Company 瓦房店轴承股份有限公司
Abbreviation of Chinese name 瓦轴股份公司
English name of the Company Wafangdian Bearing Company Limited
Abbreviation of English name WBC
Legal representative of the
Liu Jun
Company
II.Contacts
Secretary of the Board Representative of Stock Affairs
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 0411-62198008 0411-62198236
Fax 0411-62198333 0411-62198333
E-mail zwz2308@126.com zwz2308＠126.com
III.Other information
1. Company contact information
The company's registered address, office address and its postal code, the company's website address, E-mail box during the reporting
period whether changes
□ Applicable Inapplicable
The company's registered address, office address and its postal code, company's website address and E-mail address will not change
during the reporting period. Please refer to the 2020 Annual Report for details.
2. Information disclosure and storage location
Whether the location of information disclosure and storage changes during the reporting period
□ Applicable Inapplicable
The name of the information disclosure newspaper selected by the company, and the website designated by China Securities
Regulatory Commission to publish the semi-annual report. The reporting period of the preparation place of the semi-annual report of
the company remains unchanged, for details, please refer to the 2020 annual report.
IV. Main accounting data and financial indicators
Whether the company needs to retroactively adjust or restate the previous year's accounting data
Yes No
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Wafangdian Bearing Company Limited 2021 Midyear Report
In RMB Yuan
+/-comparing with
previous period
current period the previous period
Before adjustment After adjustment After adjustment
Operating income 1,081,064,853.66 999,645,101.91 896,732,234.86 20.56%
Net profit available for shareholders of listing
4,192,143.24 3,647,082.19 3,647,082.19 14.95%
company
Net profit available for shareholders of listing
1,248,469.67 -4,526,512.88 -4,526,512.88 127.58%
company with abnormal incomes deducted
Net cash flows from operation activities 31,402,343.49 72,521,427.05 72,521,427.05 -56.70%
Basic gains on per share 0.01 0.009 0.009 11.11%
Diluted gains on per share 0.01 0.009 0.009 11.11%
Net returns on assets 0.51% 0.30% 0.30% 0.21%
+/-comparing with
2020.12.31
2021.06.30 the previous period
Before adjustment After adjustment After adjustment
Total assets 3,348,155,218.45 3,133,942,842.94 3,133,942,842.94 6.84%
Owners’ equity (shareholders’ equity) 818,197,111.13 814,004,967.89 814,004,967.89 0.52%
V. Differences in accounting information under IAS and domestic accounting standard
1. At the same time, differences in net profit and net assets in financial reports disclosed in accordance with international accounting standards and
Chinese accounting standards.
□ Applicable Inapplicable
During the reporting period, there is no difference between the net profit and net assets in the financial reports disclosed in accordance with
international accounting standards and Chinese accounting standards.
2. At the same time, the differences of net profit and net assets in financial reports disclosed in accordance with overseas accounting
standards and Chinese accounting standards.
□ Applicable Inapplicable
During the reporting period, there is no difference between the net profit and net assets in the financial reports disclosed in accordance with
overseas accounting standards and Chinese accounting standards.
VI. Non-recurring gain/loss items and amounts
Applicable Inapplicable
In RMB Yuan
Items Amount Remarks
Non-current asset disposal gains and losses (including the write-off portion
-820,370.34
of the asset impairment provision)
Government subsidies included in the current profits and losses (closely
related to the business of the enterprise, except the government subsidies 3,063,661.27
enjoyed in accordance with the national unified standard quota or
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Wafangdian Bearing Company Limited 2021 Midyear Report
quantitative)
Debt restructuring gains and losses 312,267.65
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
183,361.31
liabilities to generate profits and 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
Non-operating income and expenses other than those mentioned above 701,102.45
Less: income tax impact 496,348.77
A combined 2,943,673.57 --
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, it is necessary to explain the reason.
□ Applicable Inapplicable
During the reporting period, the company does not define the listed non-recurring profit and loss items as recurring profit and loss items according
to explanatory Notice no. 1 -- Non-recurring Profit and loss of A Company that publicly issues Securities.
Chapter III Business Summary
I. Principal Businesses in the Reporting Period
The company's business scope is: bearing, bearing spare parts, mechanical equipment, auto parts and related products manufacturing and sales;
Bearing repair, maintenance and technical services; Lease of machinery and equipment and housing; Bearing and related mechanical equipment
and measurement instruments, instrument testing.
The company has a strong manufacturing capacity and quality assurance ability, extensive services in railway, automobile, metallurgy, mining, and
other industries and fields.
II.Analysis of core competitiveness
As the largest bearing technology and product r&d and manufacturing base in China, the company has accumulated many years of practical
experience in bearing and related fields, established a sound bearing technology innovation system, and maintained close cooperation with
domestic research institutes and universities. As the main draftsman of several standards in the bearing industry, he grasps the latest technical
trend of the development of the industry. It has established significant advantages in technology research and development, product manufacturing,
marketing and user services.
The company's customized design and manufacturing process can take into account the cost, delivery time and customer needs,
improving the ability to respond to the market and customer personalized needs.
The company has a complete product service system, with 24/7 dynamic service capability for product operation site. And to "ten
value-added services" a good image by the majority of customers praise. The company has a strong production and manufacturing
capacity and quality assurance capabilities, extensive services in railway, automobile, metallurgy, mining and other industries and
fields.
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Wafangdian Bearing Company Limited 2021 Midyear Report
At present, the company has established strategic cooperative relations with key customers in the field of domestic equipment
application. By intervening in customer value project to carry out in-depth marketing, the company has firmly established its brand
and influence in the domestic bearing market. In the international market, the company has obtained important target market
certification qualifications, international visibility initially established.
III Analysis on Principal Businesses
Refer to the relevant content of "I. Main Business of the Company during the reporting Period".
Major financial data year - on - year changes
In RMB Yuan
the
Same period last (+/-）Compared with the
current reporting Cause of change
year same period last year
period
Operating income 1,081,064,853.66 896,732,234.86 20.56%
Operating cost 831,304,584.25 674,721,170.74 23.21%
Cost of sales 78,899,762.56 75,613,172.33 4.35%
Management fees 45,845,225.31 39,172,811.53 17.03%
Finance charges 21,315,656.48 17,025,231.12 25.20%
R&D spending 98,277,786.26 88,374,018.61 11.21%
The increase in operating cash
Net cash flow from
31,402,343.49 72,521,427.05 -56.70% received was less than the
operating activities
increase in expenses
Net cash flow Increased cash received from
generated from 1,123,037.70 -875,861.59 -228.22% the disposal of non-current
investing activities assets
Net cash flow Cash inflows from financing
generated from 1,642,489.74 40,350,135.07 -95.93% activities declined while
financing activities expenditures increased
Net increase in cash All three of these declines
33,151,074.54 112,950,609.87 -70.65%
and cash equivalents resulted in
The composition or source of profits of the company during the reporting period changes significantly
□ Applicable Inapplicable
There is no significant change in the composition or source of profits during the reporting period.
Composition of operating income
In RMB Yuan
the current reporting period Same period last year (+/-）Compared with
Proportion of Proportion of the same period last
Amount Amount
operating income operating income year
Total operating
1,081,064,853.66 100% 896,732,234.86 100% 20.56%
Revenue
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Wafangdian Bearing Company Limited 2021 Midyear Report
Industry-classified
exit 84,996,299.57 7.90% 76,501,214.17 8.50% -0.70%
Traffic bearing 222,058,260.14 20.50% 152,104,515.02 17.00% 3.60%
Special bearings 174,002,173.00 16.10% 228,283,545.80 25.50% -9.40%
General bearing 472,073,371.26 43.70% 275,107,503.10 30.70% 13.00%
Industrial
26,193,575.14 2.40% 34,444,509.72 3.80% -1.40%
operation
Other business
101,741,174.55 9.40% 130,290,947.05 14.50% -5.10%
income
Products-classified
bearing 953,130,103.96 88.20% 731,996,778.09 81.60% 6.50%
Industrial
26,193,575.15 2.40% 34,444,509.72 3.80% -1.40%
operation
Other business
101,741,174.55 9.40% 130,290,947.05 14.50% -5.10%
income
Region-classified
domestic 996,068,554.09 92.10% 820,231,020.69 91.50% 0.60%
foreign 84,996,299.57 7.90% 76,501,214.17 8.50% -0.60%
Industry, product or region accounting for more than 10% of the company's operating revenue or operating profit
Applicable Inapplicable
Reasons for the change of more than 30% in related data
Applicable Inapplicable
IV.Non-main business analysis
Applicable Inapplicable
In RMB Yuan
As a percentage of
Amount Cause statement Sustainability or not
total profit
Return on investment 870,263.42 20.76% Debt restructuring NO
Fair value change Shares of traded financial
183,361.31 4.37% NO
profit or loss assets rose
Non-operating
817,656.00 19.50% Fine income, etc. NO
income
Non-operating
936,923.89 22.35% Scrap non-current assets NO
expenses
V. Situation of assets and liabilities
1. Significant changes in asset composition
In RMB Yuan
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Wafangdian Bearing Company Limited 2021 Midyear Report
End of 2021.06.30 End of 2020.06.30
Percentage of Statement on major
Percent in Percent in
Amount Amount change(%) change
total asset total asset
Monetary fund 213,848,619.85 6.39% 194,152,280.08 6.20% 0.19%
Accounts receivable 944,368,834.23 28.21% 975,628,091.12 31.13% -2.92%
inventory 761,125,814.98 22.73% 615,656,946.30 19.64% 3.09%
Investment real estate 115,459,279.72 3.45% 117,516,482.39 3.75% -0.30%
Fixed assets 402,752,098.78 12.03% 474,109,923.22 15.13% -3.10%
Projects under
24,348,551.06 0.73% 24,254,985.16 0.77% -0.04%
construction
Right of use assets 1,009,841.91 0.03% 0.03%
Short-term borrowing 698,000,000.00 20.85% 670,000,000.00 21.38% -0.53%
Contract liability 47,607,834.61 1.42% 39,456,304.55 1.26% 0.16%
Lease liability 1,281,492.96 0.04% 0.04%
2. Main overseas assets
Applicable Inapplicable
3. Assets and liabilities measured at fair value
Applicable Inapplicable
In RMB Yuan
Changes in Changes
Impairment
fair value in the Current
Opening of the Current Ending
item for the accumulate purchase item
balance current sale amount balance
current d fair value amount
period
period of an equity
Financial
assets
1. Trading
financial
assets
(excluding 228,046.00 183,361.31 -155,625.99 411,407.31
derivative
financial
assets)
The above
228,046.00 183,361.31 -155,625.99 411,407.31
total
Financial
0.00 0.00
liabilities
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Wafangdian Bearing Company Limited 2021 Midyear Report
Other changes
Whether the measurement attributes of the company's main assets have changed significantly during the reporting period
□ Yes No
4. Limitation of asset rights at the end of the report period
None
VI. Analysis of investment status
1. The general situation
Applicable Inapplicable
2. Significant equity investment acquired during the reporting period
Applicable Inapplicable
3. Significant ongoing non-equity investments during the reporting period
Applicable Inapplicable
4. Investment in financial assets
(1) Securities investment
Change Changes
Account Reporti
The in fair in the Current
Varieties Initial ing Opening Current ng Ending Account Sources
Stock securities value cumulat purchas
of investm measure book sale period book ing of
code referred for the ive fair e
securities ent cost ment value amount profit value subject funding
to as" current value of amount
model and loss
period equity
Domestic Fair Transact
Chongqi
and 567,033 value 228,046 183,361 -155,62 183,361 411,407. ional debt-for
601005 ng iron 0.00 0.00
foreign .30 measure .00 .31 5.99 .31 31 financia -equity
and steel
stocks ment l assets
567,033 228,046 183,361 -155,62 183,361 411,407.
Total -- 0.00 0.00 -- --
.30 .00 .31 5.99 .31 31
Date of disclosure announced
by the Securities investment
Examination and Approval
Board
Date of announcement of
shareholders' Meeting on
Securities Investment Approval
(if any)
Applicable Inapplicable
(2) Derivative investment
Applicable Inapplicable
There were no derivatives investments during the reporting period.
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Wafangdian Bearing Company Limited 2021 Midyear Report
VII Sale of major assets and shares
1. Sale of major assets
Applicable Inapplicable
No significant assets were sold during the reporting period.
2. Sale of major equity
Applicable Inapplicable
VII.Analysis of major holding companies
Applicable Inapplicable
During the reporting period, the company has no important information about the holding and shareholding company that should be
disclosed.
IX. Structured subjects controlled by the company
Applicable Inapplicable
X. Risks faced by the Company and countermeasures
The current national economic development is facing unprecedented challenges. The company is faced with increasing uncertainties
in market demand and market competitors. The market influence and product pricing of competitors are full of uncertainties, which
brings great risks to the company's market and production and operation.The company's labor costs continue to rise;Prices of raw and
auxiliary materials remain high;Corporate profit margins remain tough.The company must fully assess the difficulties, risks and
uncertainties, and drive the high-quality growth of the business by developing middle and high-end products and achieving high-end
breakthroughs.The implementation of differentiated management, not only focus on products, technology, market, but also focus on
the core value of customers, improve the core competitiveness of enterprises;Adhere to quality first, enhance brand
influence;Accelerate the pace of reform, stimulate new vitality of enterprises;Improve the cost performance of bearing products,
make use of the different market positioning of international big brand companies, fully seize the larger market growth space, see that
the tile shaft market has space, enterprises have resources, development policies, employees have the advantages of dream, to achieve
efficient and sustainable development.
The company will focus on the "grab the order to protect the market" to open up the market battle, go all out to develop the market,
to achieve the sales target.Adhere to the "cash is king", strengthen credit control, to organize the return of funds, improve the capital
turnover rate, reduce the occupation of funds.Focusing on "expanding capacity to achieve stable growth of production, improving
quality, reducing cost and increasing efficiency", we will start the tough battle of production capacity, improve contract performance
and order execution, accelerate upstream and downstream supply chain coordination and process optimization, and thereby digest all
kinds of adverse factors within the company.
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Wafangdian Bearing Company Limited 2021 Midyear Report
Chapter IV Corporate governance
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 session Type Meeting Date Disclosure Date Disclosure index
participation ratio
2020 Annual Annual shareholders’
80.31% 2021.05.19 2021.05.20 http//www,cninfo,com,cn
shareholders’ Meeting Meeting
ii.The shareholders of the preferred shareholders who have resumed the voting are required to convene an extraordinary general meeting
□ Applicable Inapplicable
II. Changes of directors, supervisors and senior managers of the company
Applicable Inapplicable
Name Position Type Date Cause
Zhao Yang Director The outgoing 2021.01.08 Job changes
Zhao Yang GM dismissal 2021.01.08 Job changes
Wang Jiyuan GM employment 2021.01.13
Wang Jiyuan Director elected 2021.05.19
Gao Ping Supervisor The outgoing 2021.01.07 Job changes
Zhang Yihui Supervisor elected 2021.01.08
III.Profit distribution and conversion of capital reserve into capital stock during the reporting period
Applicable Inapplicable
The company plans not to distribute cash dividend, not to send bonus shares, not to increase the accumulation fund capital.
IV. Implementation of the company's equity incentive plan, employee stock ownership plan or other employee
incentive measures
Applicable Inapplicable
The company has no equity incentive plan, employee stock ownership plan or other employee incentive measures and their
implementation during the reporting period.
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Wafangdian Bearing Company Limited 2021 Midyear Report
Chapter V Environmental and social responsibility
I. Major environmental issues
Whether listed companies and their subsidiaries belong to the environmental protection department announced the key pollutant
discharge units
□ Yes No
Administrative penalties imposed for environmental problems during the reporting period
The impact on the
Corrective
Name of company production and
Penalty reason non-compliance The penalty measures of the
or subsidiary operation of listed
company
companies
NONE NONE NONE NONE NONE NONE
Refer to other environmental information disclosed by key polluters
The company and its subsidiaries do not belong to the key pollutant discharge units announced by the environmental protection
authorities.
Reasons for not disclosing other environmental information
The company and its subsidiaries do not belong to the key pollutant discharge units announced by the environmental protection
authorities.
II. Social responsibility
In 2021, the company will earnestly fulfill its due social responsibilities. While pursuing its economic benefits, the company will
actively undertake the responsibilities for the comprehensive development of the country and society, the natural environment and
resources, as well as stakeholders such as shareholders, employees, customers, consumers, suppliers and communities, and realize its
social value.It has achieved win-win cooperation among the country, society and stakeholders, strengthened environmental protection,
improved resource efficiency, influenced and driven the development of local economy through project construction, and effectively
promoted the coordinated development of the company with society, nature and other stakeholders.
In strict accordance with relevant national and local laws, regulations and documents, the company has handled old-age insurance,
unemployment insurance, medical insurance, work-related injury insurance, maternity insurance, housing accumulation fund and
large medical mutual insurance for its employees.Provide timely assistance to employees in need.An employment system, including a
salary system and incentive mechanism, has been established and improved to ensure that employees enjoy their labor rights and
fulfill their labor obligations in accordance with the law.Establish and improve the labor safety and health system, strictly implements
national labor safety and health regulations and standards, undertake to the worker labor safety and hygiene education, occupational
protection and health checks for the worker to provide healthy and safe working environment and living environment, maximum
limit to prevent accidents during work and reduce occupational hazards.
The company adheres to the principles of voluntary, fair, equivalent compensation, honesty and credit in its business activities, and
strictly controls the quality objectives to ensure that qualified products are provided.The technical department of the company is
actively engaged in the development of new products and materials. The company guarantees that all products or services provided
by the company meet the relevant national quality standards or have been certified by the relevant national quality inspection
departments, and actively applies for various domestic and foreign third-party certification.The company pays attention to customer
after-sales service and properly handles complaints and suggestions from customers and consumers.Strictly conduct third-party
qualification examination and on-site inspection of suppliers, select qualified suppliers, carefully understand the needs of suppliers,
and actively build a good cooperation atmosphere.
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Wafangdian Bearing Company Limited 2021 Midyear Report
Chapter VI Significant Events
I. Commitments made by the company's actual controller, shareholders, related parties,
purchasers and the company that have been completed during the reporting period and that
have not been completed by the end of the reporting period
Applicable Inapplicable
During the reporting period of the company, there are no commitments made by the actual controller, shareholders, related parties,
purchasers and the company that have been completed in the reporting period or have not been completed by the end of the reporting
period.
II.Non-operational occupation of funds by controlling shareholders and other related parties
of the listed company
Applicable Inapplicable
During the reporting period, there is no non-operational appropriation of funds by controlling shareholders and other related parties
to the listed company.
III. Foreign guarantee in violation of regulations
Applicable Inapplicable
No violation of the company's external guarantee during the reporting period.
IV.Employment and dismissal of accounting firms
Whether the semi-annual financial report has been audited
□ Yes No
The company's semi-annual report is unaudited.
V. Explanations by the board of directors and the Board of Supervisors on the "non-standard
audit Report" of the accounting firm during the reporting period
Applicable Inapplicable
VI. Explanations by the Board of directors on the "non-standard audit Report" of the
previous year
Applicable Inapplicable
VII. Bankruptcy reorganization related matters
Applicable Inapplicable
No bankruptcy reorganization related matters occurred during the company's reporting period.
VIII. Litigation Matters
Major litigation and arbitration matters
Applicable Inapplicable
During the reporting period, the company has no major litigation or arbitration matters.
Other Litigation matters
Applicable Inapplicable
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Wafangdian Bearing Company Limited 2021 Midyear Report
Litigation Amount Whether to Litigation Litigation
Litigation
(arbitration) involved (ten form an (arbitration) (arbitration) Date of Disclosur
(arbitration
basic thousand estimated hearing result judgment disclosure e index
) progress
information Yuan) liability and influence execution
Summary of
other litigation
matters that do
not meet the In the August 24,
31.1 NO Do not apply Do not apply
standards for progress 2021
material
litigation
disclosure
IX. Punishment and rectification
Applicable Inapplicable
There is no punishment or rectification in the reporting period.
X.The integrity status of the company and its controlling shareholders and actual controllers
Applicable Inapplicable
XII. Major related Party Transactions
1. Related party transactions related to daily operations
Applicable Inapplicable
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Wafangdian Bearing Company Limited 2021 Midyear Report
Content Principles Related As a Approved Whether
Types of Related Settlement The market price
of of pricing Transaction percentage Transaction it exceeds Date of
Related transact method of available for Disclosure
Related party correlation Related related Amount (ten of the value Amount (ten the disclosur
Transacti ion related party similar index
Transact party thousand of similar thousand approved e
ons price transactions transactions
ions transactions yuan) transactions yuan) limit
Other
enterprises
Wafangdian controlled by
To buy
Bearing the same Buy The Fair Money or
or sell
Precision controlling spare marketizati market 11,095.05 14.00% 45,000 NO checks or Fair market price
somethin
Forging Co., shareholder and parts on price money orders
g
Ltd ultimate
controlling
party
Other
enterprises
Wafangdian
controlled by
bearing To buy The
the same The Fair Money or
Group or sell purchas
controlling marketizati market 6,371.33 8.00% 17,000 NO checks or Fair market price
High-end somethin e of
shareholder and on price money orders
Auto Bearing g goods
ultimate
Co., Ltd.
controlling
party
Wafangdian Other
To buy
Bearing enterprises Buy The Fair Money or
or sell
Group controlled by spare marketizati market 6,610.61 8.00% 15,000 NO checks or Fair market price
somethin
Precision the same parts on price money orders
g
Retainer Co., controlling
18
Wafangdian Bearing Company Limited 2021 Midyear Report
Ltd. shareholder and
ultimate
controlling
party
Other
enterprises
Wafangdian controlled by
To buy
Bearing the same The Fair Money or
or sell Sales of
Precision controlling marketizati market 4,326.51 4.00% 13,000 NO checks or Fair market price
somethin goods
Forging Co., shareholder and on price money orders
g
Ltd ultimate
controlling
party
A combined -- -- 28,403.5 -- 90,000 -- -- -- -- --
Details of large sales returns No
Actual performance during the reporting period (if any)
where the total amount of daily related party transactions
No
to be incurred in the current period is estimated by
category
Reasons for the large difference between the transaction
No
price and the market reference price (if applicable)
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Wafangdian Bearing Company Limited 2021 Midyear Report
2. Related party transactions arising from the acquisition or sale of assets or shares
Applicable Inapplicable
During the reporting period of the company, no related transactions of asset or equity acquisition or sale occurred.
3. Related party transactions of joint foreign investment
Applicable Inapplicable
During the reporting period, the company has no related party transaction of joint foreign investment.
4. Associated creditor's rights and debt transactions
Applicable Inapplicable
Whether there is non-operating associated creditor's rights and debts
□ Yes No
The company has no non-operating associated creditor's rights or debts during the reporting period.
5. Dealings with related financial companies and financial companies that the company holds
Applicable Inapplicable
There is no deposit, loan, credit granting or other financial business between the company and the related finance company, or
between the finance company holding the company and its related parties.
6. Other significant related party transactions
Applicable Inapplicable
The company has no other significant related transactions during the reporting period.
XII. Major contracts and their performance
1.trusteeship, contracting, leasing matters
(1) Trusteeship
Applicable Inapplicable
There is no trusteeship situation during the reporting period of the company.
(2) Contracting situation
Applicable Inapplicable
There is no contract situation in the company's reporting period.
(3) Leasing situation
Applicable Inapplicable
Lease information
The company's lease is all related lease, details see the notes
20
Wafangdian Bearing Company Limited 2021 Midyear Report
The items which bring profit and loss to the company reach more than 10% of the total profit of the company in the reporting period
Applicable Inapplicable
Amount of
Rental The impact of
leased Lease Lease Basis for Whether
Name of the Leased income (ten lease income
Name of the lessor assets (ten Commence terminatio determining related Party correlation
lessor assets thousand on the
thousand ment Date n date rental income transaction
yuan) company
yuan)
Wafangdian
Dalian Wazhou Other enterprises controlled by the
bearing co., LTD.
Jinzhou Machinery house 2021.01.01 2021.12.31 40.16 Marketization 10% yes same controlling shareholder and
Organization
Co., Ltd. ultimate controlling party
chart
Wafangdian Wafangdian bearing
Other enterprises controlled by the
bearing co., LTD. Group High-end
house 2021.01.01 2021.12.31 166.85 Marketization 40% yes same controlling shareholder and
Organization Auto Bearing Co.,
ultimate controlling party
chart Ltd.
Wafangdian
Wafangdian Bearing Other enterprises controlled by the
bearing co., LTD.
Group Precision house 2021.01.01 2021.12.31 38.2 Marketization 9% yes same controlling shareholder and
Organization
Retainer Co., Ltd. ultimate controlling party
chart
Wafangdian
Other enterprises controlled by the
bearing co., LTD. Wafangdian Bearing
house 2021.01.01 2021.12.31 54.8 Marketization 13% yes same controlling shareholder and
Organization Group Co., Ltd.
ultimate controlling party
chart
Wafangdian
Wafangdian Bearing Other enterprises controlled by the
bearing co., LTD.
Precision Forging house 2021.01.01 2021.12.31 67.7 Marketization 16% yes same controlling shareholder and
Organization
Co., Ltd ultimate controlling party
chart
Wafangdian Wafangdian bearing equipm 2021.0101 2021.12.31 394.25 cost pricing 94% yes Other enterprises controlled by the
21
Wafangdian Bearing Company Limited 2021 Midyear Report
bearing co., LTD. Group High-end ent same controlling shareholder and
Organization Auto Bearing Co., ultimate controlling party
chart Ltd.
Wafangdian
Wafangdian Bearing Other enterprises controlled by the
bearing co., LTD. equipm
Group Precision 2021.0101 2021.1231 41.92 cost pricing 10% yes same controlling shareholder and
Organization ent
Retainer Co., Ltd. ultimate controlling party
chart
Wafangdian
Wafangdian bearing Other enterprises controlled by the
bearing co., LTD. equipm
group precision 2021.01.01 2021.12.31 21.99 cost pricing 5% yes same controlling shareholder and
Organization ent
roller co., LTD ultimate controlling party
chart
Wafangdian
Other enterprises controlled by the
bearing co., LTD. Wafangdian Bearing equipm
2021.01.01 2021.12.31 366.25 cost pricing 87% yes same controlling shareholder and
Organization Group Co., Ltd. ent
ultimate controlling party
chart
Wafangdian
Wafangdian Bearing Other enterprises controlled by the
bearing co., LTD.
Group Precision land 2021.01.01 2021.12.31 13.16 cost pricing 3% yes same controlling shareholder and
Organization
Retainer Co., Ltd. ultimate controlling party
chart
Wafangdian
bearing co., LTD. Wafangdian Bearing
land 2021.01.01 2021.12.31 15.11 cost pricing 4% yes The parent company
Organization Group Co., Ltd.
chart
Wafangdian
Wafangdian Bearing Other enterprises controlled by the
bearing co., LTD.
Precision Forging land 2021.01.01 2021.12.31 27.54 cost pricing 7% yes same controlling shareholder and
Organization
Co., Ltd ultimate controlling party
chart
22
Wafangdian Bearing Company Limited 2021 Midyear Report
2. Major guarantee
Applicable Inapplicable
There is no material guarantee during the reporting period.
3. Entrust financial management
Applicable Inapplicable
Company report period does not exist entrust finance.
4. Major daily business contracts
Applicable Inapplicable
5. Other major contracts
Applicable Inapplicable
There are no other major contracts during the reporting period.
XIII.Description of other important matters
Applicable Inapplicable
There are no other major matters that need to be explained during the reporting period.
XIV. Major events of the company's subsidiaries
Applicable Inapplicable
23
Wafangdian Bearing Company Limited 2021 Midyear Report
Chapter VII Change of Shares and Particulars about Shareholders
I. Changes in shares
1. Changes in shares
Unit:share
Before this change This change increases or decreases（＋,－） After this change
Reserve
Issuing
Send fund proporti
number proportion new other subtotal number
shares conversi on
shares
on
I. Unlisted and 244,000
244,000,000 60.61% 60.61%
circulating shares ,000
1. Shares of the 244,000
244,000,000 60.61% 60.61%
sponsors ,000
Among them: the state 244,000
244,000,000 60.61% 60.61%
holds shares ,000
The domestic legal
entity holds shares
Overseas legal person
holding shares
other
2. Offering corporate
shares
3, internal labor shares
4. Preferred stock or
other
II. Listed and 158,600
158,600,000 39.39% 39.39%
circulating shares ,000
1. RMB ordinary
shares
2. Foreign capital 158,600
158,600,000 39.39% 39.39%
stocks listed in China ,000
3. Foreign capital
stocks listed abroad
4, other
III. Total number of 402,600 100.00
402,600,000 100.00%
shares ,000 %
24
Wafangdian Bearing Company Limited 2021 Midyear Report
Reasons for changes in shares
Applicable Inapplicable
Approval of changes in shares
Applicable Inapplicable
Changes in ownership of shares
Applicable Inapplicable
Implementation progress of share repurchase
Applicable Inapplicable
The implementation progress of share repurchase by means of collective bidding
Applicable Inapplicable
The impact of changes in shares on financial indicators such as basic earnings per share and diluted earnings per share and net
assets per share attributable to common shareholders of the Company in the latest year and the latest period
Applicable Inapplicable
Other disclosures deemed necessary by the Company or required by securities regulatory authorities
Applicable Inapplicable
2. Changes in restricted shares
Applicable Inapplicable
II. Securities issuance and listing
Applicable Inapplicable
III. The number of shareholders and stock holding of the company
Unit:share
Total number of preferred
Total number of common shareholders with voting
shareholders at the end of 5,816 rights restored at the 0
reporting period reporting End (if any) (see
Note 8)
Shares held by common shareholders holding more than 5% or the top 10 common shareholders
Number The condition of a
Number of Chang
Number of of listed pledge, mark, or freeze
common es in
unlisted and and
Shareholder's Nature of the shares held the
stake tradable tradable
name shareholders at the end of reporti Shares in The
ordinary ordinary
the reporting ng state number of
shares held shares
period period
held
Wafangdian
State-owned
Bearing Group 60.61% 244,000,000 244,000,000
legal person
Co., Ltd.
AKTIEBOLAGET Foreign legal 79,300,0
19.70% 79,300,000
SKF person 00
China Merchants
State-owned 7,595,09
Securities Hong 1.89% 7,595,091
legal person 1
Kong Limited
Huang Junyue Domestic 1.74% 7,025,268 7,025,26
25
Wafangdian Bearing Company Limited 2021 Midyear Report
natural person 8
Domestic 1,879,27
Hu Xiaofeng 0.47% 1,879,277
natural person 7
BOCI
Foreign legal 1,310,00
SECURITIES 0.33% 1,310,000
person 0
LIMITED
GUOTAI JUNAN
SECURITIES(HO Foreign legal
0.22% 896,800 896,800
NGKONG) person
LIMITED
Domestic
Jin Yunhua 0.19% 750,000 750,000
natural person
Domestic
Meng Qingliang 0.18% 734,548 734,548
natural person
MAN,KWAI Foreign
0.18% 713,101 713,101
WING 文贵荣 natural person
Among the top 10 shareholders of the company, there is no association relationship or
concerted action between the first major shareholder and other shareholders or the top 10
A description of such shareholder
shareholders of tradable shares, while the association relationship and concerted action
association or concerted action
between other shareholders, the top 10 shareholders of tradable shares or the top 10
shareholders of tradable shares and other shareholders are unknown.
Explanation of the above
shareholders' entrustment/entrusted
none
voting rights and abandonment of
voting rights
The shareholding of the top 10 outstanding common shareholders
Stake species
Number of listed and circulating common shares held at the end
Shareholder's name Stake The
of the report
species number of
AKTIEBOLAGET SKF 79,300,000 B 79,300,000
China Merchants Securities Hong
7,595,091 B 7,595,091
Kong Limited
Huang Junyue 7,025,268 B 7,025,268
Hu Xiaofeng 1,879,277 B 1,879,277
BOCI SECURITIES LIMITED 1,310,000 B 1,310,000
GUOTAI JUNAN
SECURITIES(HONGKONG) 896,800 B 896,800
LIMITED
Jin Yunhua 750,000 B 750,000
Meng Qingliang 734,548 B 734,548
MAN,KWAI WING 文贵荣 713,101 B 713,101
Zhou Junlin 575,301 B 575,301
A description of the association or
coordinated action between the top
Among the top 10 shareholders of the company, there is no association relationship or
10 Common shareholders on
concerted action between the first major shareholder and other shareholders or the top 10
Unlimited Conditions and between
shareholders of tradable shares, while the association relationship and concerted action
the top 10 Common shareholders on
between other shareholders, the top 10 shareholders of tradable shares or the top 10
Unlimited Conditions and the top 10
shareholders of tradable shares and other shareholders are unknown.
common shareholders on Unlimited
Conditions
Whether the company's top 10 common Stockholders and the top 10 common Stockholders with unlimited conditions of sale will
make an agreed repurchase transaction during the reporting period
□ Yes No
26
Wafangdian Bearing Company Limited 2021 Midyear Report
The company's top 10 common Stockholders and the top 10 common Stockholders with unlimited conditions of sale did not make
an agreed repurchase transaction during the reporting period.
IV.Changes in shareholding of directors, supervisors and senior management
personnel
Applicable Inapplicable
The shareholding status of directors, supervisors and senior managers of the company has not changed during the reporting period.
Please refer to the 2020 annual Report for details.
V.Change of controlling shareholder or actual controller
Change of controlling shareholder during reporting period
Applicable Inapplicable
The controlling shareholder of the company has not changed during the reporting period.
Actual controller changes during the reporting period
Applicable Inapplicable
The actual controller of the company has not changed during the reporting period.
Chapter VIII Relevant Information about preferred Shares
Applicable Inapplicable
No preferred stock existed at the reporting period.
Chapter IX Related Situation of bonds
Applicable Inapplicable
27
Wafangdian Bearing Company Limited 2021 Midyear Report
Chapter X Financial Reports
I. Audit report
Whether the semiannual report is audited
□ Yes No
The company's semi-annual financial report is unaudited.
II. Financial statements
The unit of the statement in the financial notes is yuan
1. Consolidated balance sheet
Establishment unit: Wafangdian Bearing Co., LTD
In RMB Yuan
ITEM 2021.6.30 2020.12.31
Current assets:
Monetary fund 213,848,619.85 194,152,280.08
Settlement provision
Lending money,
Trading financial assets 411,407.31 228,046.00
Derivative financial assets
Notes receivable 619,807,598.26 416,044,578.48
Accounts receivable 944,368,834.23 975,628,091.12
Receivables financing 129,580,519.36 130,600,545.59
prepayments 22,055,659.11 53,772,465.49
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves receivable
Other accounts receivable 11,290,749.69 14,204,144.25
Where: interest receivable
Dividends receivable
Purchase and resale of financial assets
inventory 761,125,814.98 615,656,946.30
Contract assets
Hold assets for sale
Non-current assets maturing within one year
28
Wafangdian Bearing Company Limited 2021 Midyear Report
Other current assets 10,712,609.56 24,610,448.93
Total current assets 2,713,201,812.35 2,424,897,546.24
Non-current assets:
Issue loans and advance payments
Creditor's rights investment
Other debt investment
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 115,459,279.72 117,516,482.39
Fixed assets 402,752,098.78 474,109,923.22
Projects under construction 24,348,551.06 24,254,985.16
Productive biological assets
Oil and gas assets
Right of use assets 1,009,841.91
Intangible assets 79,119,926.72 80,725,861.18
The development of spending
goodwill
Long-term deferred expenses 336,851.27 511,188.11
Deferred tax assets
Other non-current assets
Total non-current assets 634,953,406.10 709,045,296.70
Total assets 3,348,155,218.45 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 liabilities
Notes payable 226,793,257.05 274,654,535.65
Accounts payable 1,279,404,724.99 1,044,801,896.85
Advance payment
Contract liability 47,607,834.61 39,456,304.55
29
Wafangdian Bearing Company Limited 2021 Midyear Report
Sale of repurchase financial assets
Take deposits and inter-bank deposits
Acting to buy and sell securities
Acting as an underwriter of securities
payments
Employee compensation payable 21,852,557.25 52,677,141.09
Payable taxes 4,336,864.26 3,688,168.68
Other payable 146,468,203.79 129,476,061.47
Where: interest payable 1,680,000.00 1,041,600.00
Dividends payable
Fees and commissions due
Reinsurance accounts payable
Holding liabilities for sale
Non-current liabilities due within one year
Other current liabilities 6,168,824.67 5,129,319.58
Total current liabilities 2,430,632,266.62 2,219,883,427.87
Non-current liabilities:
Reserve for insurance contract
Long-term borrowing
Bonds payable
Where: Preferred stock
Sustainable debt
Lease liability 1,281,492.96
Long-term payables 344,974.84 344,974.84
Long-term employee compensation payable
Estimated debts 39,427,812.54 39,032,270.91
Deferred revenue 57,537,112.01 59,942,753.08
Deferred tax liabilities 734,448.35 734,448.35
Other non-current liabilities
Total non-current liabilities 99,325,840.70 100,054,447.18
Total liabilities 2,529,958,107.32 2,319,937,875.05
Owner's equity:
equity 402,600,000.00 402,600,000.00
Other equity instruments
30
Wafangdian Bearing Company Limited 2021 Midyear Report
Where: Preferred stock
Sustainable debt
Capital reserves 485,691,050.47 485,691,050.47
Minus: Treasury stocks
Other comprehensive income
The special reserve
Surplus reserves 136,770,391.01 136,770,391.01
General risk provision
Undistributed profit -206,864,330.35 -211,056,473.59
Total owner's equity attributable to the parent
818,197,111.13 814,004,967.89
company
Minority equity
Total owner's equity 818,197,111.13 814,004,967.89
Total liabilities and owners' equity 3,348,155,218.45 3,133,942,842.94
Chairman: Liu Jun General Accountant : Sun Najuan Accounting charger: Zhang Yangjing
2. Balance sheet of parent company
In RMB Yuan
item 2021.6.30 2020.12.31
Current assets:
Monetary fund 186,426,311.94 173,606,464.84
Trading financial assets 411,407.31 228,046.00
Derivative financial assets
Notes receivable 284,995,696.34 325,928,761.07
Accounts receivable 1,056,049,412.72 1,051,197,353.63
Receivables financing 121,077,339.36 125,606,963.37
prepayments 19,589,717.59 52,961,548.88
Other accounts receivable 345,885,690.52 13,357,080.42
Where: interest receivable
Dividends receivable
inventory 467,971,154.61 472,723,348.67
Contract assets
Hold assets for sale
Non-current assets maturing within one year
Other current assets 5,508,126.26 17,971,682.31
31
Wafangdian Bearing Company Limited 2021 Midyear Report
Total current assets 2,487,914,856.65 2,233,581,249.19
Non-current assets:
Creditor's rights investment
Other debt investment
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 101,884,681.94 103,505,103.77
Fixed assets 243,189,782.54 309,847,783.81
Projects under construction 21,931,620.12 21,933,710.72
Productive biological assets
Oil and gas assets
Right of use assets 1,009,841.91
Intangible assets 62,921,438.85 64,192,377.21
The development of spending
goodwill
Long-term deferred expenses 285,650.84 432,059.78
Deferred tax assets
Other non-current assets
Total non-current assets 654,733,770.51 723,421,789.60
Total assets 3,142,648,627.16 2,957,003,038.79
Current liabilities:
Short-term borrowing 698,000,000.00 670,000,000.00
Transactional financial liabilities
Derivative financial liabilities
Notes payable 226,793,257.05 274,654,535.65
Accounts payable 1,047,520,093.85 845,753,616.99
Advance payment
Contract liability 47,452,497.50 40,196,130.87
Employee compensation payable 15,856,491.99 43,148,413.71
Payable taxes 2,881,606.34 3,395,991.46
Other payable 133,346,564.94 109,599,140.08
Where: interest payable 1,680,000.00 1,041,600.00
32
Wafangdian Bearing Company Limited 2021 Midyear Report
Dividends payable
Holding liabilities for sale
Non-current liabilities due within one year
Other current liabilities 6,168,824.67 5,225,497.00
Total current liabilities 2,178,019,336.34 1,991,973,325.76
Non-current liabilities:
Long-term borrowing
Bonds payable
Where: Preferred stock
Sustainable debt
Lease liability 1,281,492.96
Long-term payables 244,974.84 244,974.84
Long-term employee compensation payable
Estimated debts 39,427,812.54 39,032,270.91
Deferred revenue 26,975,192.63 29,380,833.70
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 67,929,472.97 68,658,079.45
Total liabilities 2,245,948,809.31 2,060,631,405.21
Owner's equity:
equity 402,600,000.00 402,600,000.00
Other equity instruments
Where: Preferred stock
Sustainable debt
Capital reserves 485,678,443.26 485,678,443.26
Minus: Treasury stocks
Other comprehensive income
The special reserve
Surplus reserves 136,770,391.01 136,770,391.01
Undistributed profit -128,349,016.42 -128,677,200.69
Total owner's equity 896,699,817.85 896,371,633.58
Total liabilities and owners' equity 3,142,648,627.16 2,957,003,038.79
33
Wafangdian Bearing Company Limited 2021 Midyear Report
3. Consolidated income statement
In RMB Yuan
Item Half year 2021 Half year 2020
I. Total revenue 1,081,064,853.66 896,732,234.86
Wherein: operating income 1,081,064,853.66 896,732,234.86
Interest income
The premium has been made
Commission and commission income
II. Total operating costs 1,083,628,314.10 902,201,538.62
Where: operating costs 831,304,584.25 674,721,170.74
The interest payments
Commission and commission expenses
Surrender gold
Net compensation expenditures
Draw the net reserve for insurance liability
Policy bonus expense
Reinsurance expenses
Taxes and surcharges 7,985,299.24 7,295,134.29
Cost of sales 78,899,762.56 75,613,172.33
Management fees 45,845,225.31 39,172,811.53
Research and development costs 98,277,786.26 88,374,018.61
Finance charges 21,315,656.48 17,025,231.12
Including: interest expense
Interest income
Plus: Other benefits 3,063,661.27 6,192,961.72
Investment income (Loss marked with "-") 870,263.42 664,574.71
Among them: income from investment in joint ventures
and joint ventures
Financial assets measured by amortized cost cease to
recognize income
Exchange gain (Loss marked with "-")
Net exposure hedging gain (loss marked with "-")
Gains from changes in fair value (loss marked with "-") 183,361.31 -55,470.65
Credit impairment loss (marked with "-") 30,000.00 7,311.38
34
Wafangdian Bearing Company Limited 2021 Midyear Report
Asset impairment loss (marked with "-")
Income from asset disposal (marked with "-" for loss) 2,727,585.57 276,663.74
III. Operating profit (Loss marked with "-") 4,311,411.13 1,616,737.14
Add: non-operating income 817,656.00 2,135,533.80
Less: non-operating expenses 936,923.89 105,188.75
IV. Total profit (Total loss marked with "-") 4,192,143.24 3,647,082.19
Less: income tax expense
V. Net profit (Net loss marked with "-") 4,192,143.24 3,647,082.19
(I) Classification by business continuity
1. Net profit from continuing operations (net loss marked
4,192,143.24 3,647,082.19
with "-")
2. Net profit from discontinued operations (Net loss
marked with "-")
(2) classification by ownership
1. Net profit attributable to the owner of the parent
4,192,143.24 3,647,082.19
company
2. Minority shareholder profits and losses
VI.Other comprehensive income net after tax
Net after tax of other comprehensive income attributable
to the owner of the parent company
(1) other comprehensive income that cannot be
reclassified into profit or loss
1. Remeasure the change amount of the set benefit plan
2. Other comprehensive income that cannot be transferred
to profit or loss under the equity method
3. Changes in fair value of other equity instruments
4. Changes in fair value of the enterprise's own credit risk
5. Other
(2) other comprehensive income that is reclassified into
profit and loss
1. Other comprehensive income that can be converted to
profit or loss under the equity method
2. Changes in fair value of other creditor's rights
investments
3. The amount of financial assets reclassified into other
comprehensive income
35
Wafangdian Bearing Company Limited 2021 Midyear Report
4. Credit impairment provisions for other debt investments
5. Cash flow hedging reserves
6. Foreign currency financial statements translation
difference
7. Other
Net after tax of other comprehensive income attributable
to minority shareholders
VII. Total comprehensive income 4,192,143.24 3,647,082.19
Total comprehensive income attributable to the owners of
4,192,143.24 3,647,082.19
the parent company
Total comprehensive income attributable to minority
shareholders
VII. Earnings per Share:
(1) Basic earnings per share 0.010 0.009
(2)Diluted earnings per share 0.010 0.009
Chairman: Liu Jun General Accountant : Sun Najuan Accounting charger: Zhang Yangjing
4. Profit statement of the parent company
In RMB Yuan
ITEM Half year 2021 Half year 2020
I. Operating income 1,208,722,319.78 906,073,566.08
Minus: Operating costs 1,006,724,605.05 689,325,459.39
Taxes and surcharges 7,111,149.37 5,964,290.11
Cost of sales 52,975,165.53 74,331,649.69
Management fees 29,681,629.16 29,227,235.02
Research and development costs 95,537,317.61 87,464,042.25
Finance charges 21,341,481.25 17,198,370.63
Including: interest expense 14,013,998.99 15,282,652.60
Interest income 201,513.60 223,957.21
Plus: Other benefits 2,957,430.25 5,920,067.26
Investment income (Loss marked with "-") 395,755.29 564,574.71
Among them: income from investment in joint ventures and
joint ventures
Income from termination of recognition of financial assets
measured at amortized cost (loss is marked with "-")
Net exposure hedging gain (loss marked with "-")
36
Wafangdian Bearing Company Limited 2021 Midyear Report
Gains from changes in fair value (loss marked with "-") 183,361.31 -55,470.65
Credit impairment loss (marked with "-") 30,000.00 -12,688.62
Asset impairment loss (marked with "-")
Income from asset disposal (marked with "-" for loss) 2,101,609.41 -51,078.19
II. Operating profit (Loss marked with "-") 1,019,128.07 8,927,923.50
Add: non-operating income 218,265.92 1,189,886.16
Less: non-operating expenses 909,209.72 82,988.75
III. Total profit (Total loss marked with "-") 328,184.27 10,034,820.91
Less: income tax expense
IV. Net Profit (Net loss marked with "-") 328,184.27 10,034,820.91
(1) Net profit from continuing operations (net loss marked
328,184.27 10,034,820.91
with "-")
(2) Net profit from discontinued operations (net loss marked
with "-")
V.Net after-tax income of other comprehensive income
(1) other comprehensive income that cannot be reclassified
into profit or loss
1. Remeasure the change amount of the set benefit plan
2. Other comprehensive income that cannot be transferred to
profit or loss under the equity method
3. Changes in fair value of other equity instruments
4. Changes in fair value of the enterprise's own credit risk
5. Other
(2) other comprehensive income that is reclassified into profit
and loss
1. Other comprehensive income that can be converted to
profit or loss under the equity method
2. Changes in fair value of other creditor's rights investments
3. The amount of financial assets reclassified into other
comprehensive income
4. Credit impairment provisions for other debt investments
5. Cash flow hedging reserves
6. Foreign currency financial statements translation
difference
7. Other
VI Total comprehensive income 328,184.27 10,034,820.91
37
Wafangdian Bearing Company Limited 2021 Midyear Report
VII. Earnings per Share:
(1) Basic earnings per share 0.001 0.025
Diluted earnings per share 0.001 0.025
5. Consolidated cash flow statement
In RMB Yuan
ITEM Half year 2021 Half year 2020
I. Cash flow generated from operating activities:
Cash received from sales of goods and services 651,887,024.41 582,774,122.01
Net increase in customer deposits and interbank 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 insurance contract
Net cash received from reinsurance operations
Net increase in insured savings and investment funds
Cash in which interest, commission and commission are charged
Net increase in borrowed funds
Net increase in funds from repurchase operations
Net cash received on behalf of securities
Tax refund received 9,745,355.53
Receive other cash in connection with operating activities 57,242,048.48 10,270,237.51
Subtotal cash inflow from operating activities 718,874,428.42 593,044,359.52
Cash paid for goods and services 399,687,605.02 280,077,473.08
Net increase in customer loans and advances
Net increase in central bank and interbank deposits
Cash payment of the original insurance contract claims
Net increase in the amount of money taken out
Cash to pay interest, commissions and commissions
Cash to pay policy dividends
Cash paid to and for employees 180,018,756.84 143,554,226.02
Taxes and fees paid 31,277,371.86 25,632,251.85
Payment of other cash related to operating activities 76,488,351.21 71,258,981.52
Subtotal cash outflow from operating activities 687,472,084.93 520,522,932.47
Net cash flow from operating activities 31,402,343.49 72,521,427.05
Ii. Cash flow generated by investment activities:
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Wafangdian Bearing Company Limited 2021 Midyear Report
Cash received from investment
Cash received in return for investment income 18,821.12
Net cash recovered from disposal of fixed assets, intangible assets
1,692,187.72 329,175.16
and other long-term assets
Net cash received from the disposal of subsidiaries and other
operating units
Cash received in connection with other investment activities
Subtotal cash inflow from investing activities 1,711,008.84 329,175.16
Cash paid for the purchase and construction of fixed assets, intangible
587,971.14 1,205,036.75
assets and other long-term assets
Cash paid for investments
Net increase in pledged loans
Net cash paid by subsidiaries and other operating units
Other cash payments in connection with investment activities
Subtotal cash outflow from investing activities 587,971.14 1,205,036.75
Net cash flow generated from investing activities 1,123,037.70 -875,861.59
III. Cash flow generated by financing activities:
Cash received from investment
Wherein: the cash received by the subsidiary in absorbing the
investment of minority shareholders
Cash received for borrowing 486,000,000.00 509,000,000.00
Receive other cash in connection with financing activities 38,566,252.78 41,567,823.29
Subtotal cash inflow from financing activities 524,566,252.78 550,567,823.29
Cash paid to pay off debts 458,093,645.83 395,000,000.00
Cash used to distribute dividends, profits, or interest payments 14,830,117.21 48,107,688.22
Among them: dividends and profits paid by subsidiaries to minority
shareholders
Payment of other cash in connection with financing activities 50,000,000.00 67,110,000.00
Subtotal cash outflow from financing activities 522,923,763.04 510,217,688.22
Net cash flow generated from financing activities 1,642,489.74 40,350,135.07
4. Impact of exchange rate changes on cash and cash equivalents -1,016,796.39 954,909.34
V.Net increase in cash and cash equivalents 33,151,074.54 112,950,609.87
Plus: opening cash and cash equivalents balance 127,620,944.91 137,324,488.53
VI.Ending balance of cash and cash equivalents 160,772,019.45 250,275,098.40
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Wafangdian Bearing Company Limited 2021 Midyear Report
6. Cash flow statement of parent company
In RMB Yuan
ITEM Half year 2021 Half year 2020
I. Cash flow generated from operating activities:
Cash received from sales of goods and services 686,999,795.18 868,958,768.09
Tax refund received
Receive other cash in connection with operating activities 57,135,498.00 9,779,044.10
Subtotal cash inflow from operating activities 744,135,293.18 878,737,812.19
Cash paid for goods and services 465,910,588.87 593,706,724.17
Cash paid to and for employees 154,155,107.30 124,085,830.07
Taxes and fees paid 30,454,451.51 20,543,127.41
Payment of other cash related to operating activities 68,913,107.16 67,388,001.75
Subtotal cash outflow from operating activities 719,433,254.84 805,723,683.40
Net cash flow from operating activities 24,702,038.34 73,014,128.79
Ii. Cash flow generated by investment activities:
Cash received from investment
Cash received in return for investment income 18,821.12
Net cash recovered from disposal of fixed assets,
829,187.72 4,175.16
intangible assets and other long-term assets
Net cash received from the disposal of subsidiaries and
other operating units
Cash received in connection with other investment
activities
Subtotal cash inflow from investing activities 848,008.84 4,175.16
Cash paid for the purchase and construction of fixed
250,672.14 524,567.59
assets, intangible assets and other long-term assets
Cash paid for investments
Net cash paid by subsidiaries and other operating units
Other cash payments in connection with investment
activities
Subtotal cash outflow from investing activities 250,672.14 524,567.59
Net cash flow generated from investing activities 597,336.70 -520,392.43
III. Cash flow generated by financing activities:
Cash received from investment
Cash received for borrowing 486,000,000.00 509,000,000.00
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Wafangdian Bearing Company Limited 2021 Midyear Report
Receive other cash in connection with financing activities 38,566,252.78 41,567,823.29
Subtotal cash inflow from financing activities 524,566,252.78 550,567,823.29
Cash paid to pay off debts 458,093,645.83 395,000,000.00
Cash used to distribute dividends, profits, or interest
14,830,117.21 48,107,688.22
payments
Payment of other cash in connection with financing
50,000,000.00 67,110,000.00
activities
Subtotal cash outflow from financing activities 522,923,763.04 510,217,688.22
Net cash flow generated from financing activities 1,642,489.74 40,350,135.07
IV. Impact of exchange rate changes on cash and cash
-1,016,796.39 954,909.34
equivalents
V.Net increase in cash and cash equivalents 25,925,068.39 113,798,780.77
Plus: opening cash and cash equivalents balance 143,182,984.73 101,216,633.47
VI.Ending balance of cash and cash equivalents 169,108,053.12 215,015,414.24
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Wafangdian Bearing Company Limited 2021 Midyear Report
7. Statement of Changes in consolidated owners' equity
In RMB Yuan
Half year 2021
Owner's equity in the parent company
Other equity instruments
ITEM other Minority
Perpetu Capital less： appropria Surplus General Owner’s
Capital Prefe comprehen Undistributed sharehold
al public treasure tive public provision for Others total equity
stock rred Oth sive profits ers’ equity
Capital reserves stock reserve reserves risk
shar er
Securitie income
es
s
I. Ending balance
402,600 485,691, 136,770,39 -211,056,473.5 814,004, 814,004,96
of the previous
,000.00 050.47 1.01 9 967.89 7.89
year
Plus: Accounting
policy change
Early error
correction
Merger of
businesses under
the same control
other
II, the beginning 402,600 485,691, 136,770,39 -211,056,473.5 814,004, 814,004,96
balance of this year ,000.00 050.47 1.01 9 967.89 7.89
III. Amount of
increase or
decrease in the 4,192,14 4,192,143.
4,192,143.24
current period 3.24 24
(marked with "-"
for decrease)
(1) Total
4,192,14 4,192,143.
comprehensive 4,192,143.24
3.24 24
income
(2) Owner
investment and
capital reduction
1.
Common stock
invested by the
42
Wafangdian Bearing Company Limited 2021 Midyear Report
owner
2.
Other equity
instrument holders
invested capital
(3) Profit
distribution
1.Withdraw surplus
reserves
2.Extract general
risk provision
3.Distribution to
owners (or
shareholders)
4．Other
(4) Internal
carry-over of
owners' equity
1.Capital reserves
to increase capital
(or equity)
2.Surplus reserves
into increased
capital (or equity)
3.Surplus reserves
cover losses
4. Set the change
of benefit plan to
carry forward
retained earnings
5. Other
comprehensive
income carried
forward retained
earnings
6. Other
(5) Special
reserves
1. Current
withdrawal
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Wafangdian Bearing Company Limited 2021 Midyear Report
2. Use this period
(6) Others
IV. Ending balance
402,600 485,691, 136,770,39 -206,864,330.3 818,197, 818,197,11
of the current
,000.00 050.47 1.01 5 111.13 1.13
period
The amount of the previous period
In RMB Yuan
Half year 2021
Owner's equity in the parent company
Other equity instruments
ITEM other Minority
Perpetu Capital less： appropria Surplus General Owner’s
Capital Prefe comprehen Undistributed sharehold
al public treasure tive public provision for Others total equity
stock rred Oth sive profits ers’ equity
Capital reserves stock reserve reserves risk
shar er
Securitie income
es
s
I. Ending balance
402,600 485,691, 136,770,39 1,226,44 1,226,441,
of the previous 201,379,956.97
,000.00 050.47 1.01 1,398.45 398.45
year
Plus: Accounting
policy change
Early error
correction
Merger of
businesses under
the same control
other
II, the beginning 402,600 485,691, 136,770,39 1,226,44 1,226,441,
201,379,956.97
balance of this year ,000.00 050.47 1.01 1,398.45 398.45
III. Amount of
increase or
decrease in the -28,560, -28,560,89
17.93 -28,560,917.81
current period 899.88 9.88
(marked with "-"
for decrease)
(1) Total
3,647,08 3,647,082.
comprehensive 3,647,082.19
2.19 19
income
(2) Owner
investment and
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Wafangdian Bearing Company Limited 2021 Midyear Report
capital reduction
1.
Common stock
invested by the
owner
2.
Other equity
instrument holders
invested capital
(3) Profit -32,208, -32,208,00
-32,208,000.00
distribution 000.00 0.00
1.Withdraw surplus
reserves
2.Extract general
risk provision
3.Distribution to
-32,208, -32,208,00
owners (or -32,208,000.00
000.00 0.00
shareholders)
4．Other
(4) Internal
carry-over of
owners' equity
1.Capital reserves
to increase capital
(or equity)
2.Surplus reserves
into increased
capital (or equity)
3.Surplus reserves
cover losses
4. Set the change
of benefit plan to
carry forward
retained earnings
5. Other
comprehensive
income carried
forward retained
earnings
6. Other
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Wafangdian Bearing Company Limited 2021 Midyear Report
(5) Special
17.93 17.93 17.93
reserves
1. Current
17.93 17.93 17.93
withdrawal
2. Use this period
(6) Others
IV. Ending balance
402,600 485,691, 136,770,39 1,197,88 1,197,880,
of the current 17.93 172,819,039.16
,000.00 050.47 1.01 0,498.57 498.57
period
8. Statement of changes in owner's equity of the parent company
This amount
In RMB Yuan
In RMB Yuan
Amount in previous period
Other equity instruments
Other appropria Undistri
Item Perpetual Capital public less：treasure General provision for
Capital stock Preferre comprehensive tive Surplus public reserves buted Owner’s equity
Capital Other reserves stock risk
d stock income reserve profits
Securities
I. Balance at the
402,600,000.00 485,678,443.26 136,770,391.01 -128,677,200.69 896,371,633.58
end of last year
Plus: Change in
accounting
policy
Previous error
correction
other
II.The
402,600,000.00 485,678,443.26 136,770,391.01 -128,677,200.69 896,371,633.58
beginning
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Wafangdian Bearing Company Limited 2021 Midyear Report
balance of the
current year
III. Amount of
increase or
decrease in the
current period 328,184.27 328,184.27
(marked with
"-" for
decrease)
(1) Total
comprehensive 328,184.27 328,184.27
income
(2) The owner
invests and
reduces the
capital
1. Common
stock invested
by the owner
2. Other equity
instrument
holders invested
capital
3. The amount
of a share
payment
included in the
owner's equity
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Wafangdian Bearing Company Limited 2021 Midyear Report
4. other
(3) Profit
distribution
1. Extract the
surplus reserve
2. Distribution
to owners (or
shareholders)
3. other
(4) Internal
carry-over of
owners' equity
1. Conversion
of capital
reserves into
increased
capital (or
equity)
2. Surplus
reserve into
increased
capital (or
equity)
3. Surplus
reserves cover
losses
4. Set benefit
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Wafangdian Bearing Company Limited 2021 Midyear Report
plan changes
carried forward
to retained
earnings
5. Other
consolidated
earnings carried
forward to
retained
earnings
6. other
Special reserves
1. This extract
2. In current use
(6) Others
IV. Ending
402,600,000.00 485,678,443.26 136,770,391.01 -128,349,016.42 896,699,817.85
balance
The amount of the previous period
In RMB Yuan
Amount in previous period
Other equity instruments
Other appropria Undistri
Item Capital public less：treasure General provision for
Perpetual
Capital stock Preferre comprehensive tive Surplus public reserves buted Owner’s equity
Capital Other reserves stock risk
d stock income reserve profits
Securities
I. Balance at the
402,600,000.00 485,678,443.26 136,770,391.01 272,858,542.42 1,297,907,376.69
end of last year
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Wafangdian Bearing Company Limited 2021 Midyear Report
Plus: Change in
accounting
policy
Previous error
correction
other
II.The
beginning
402,600,000.00 485,678,443.26 136,770,391.01 272,858,542.42 1,297,907,376.69
balance of the
current year
III. Amount of
increase or
decrease in the
current period -22,173,179.09 -22,173,179.09
(marked with
"-" for
decrease)
(1) Total
comprehensive 10,034,820.91 10,034,820.91
income
(2) The owner
invests and
reduces the
capital
1. Common
stock invested
by the owner
2. Other equity
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Wafangdian Bearing Company Limited 2021 Midyear Report
instrument
holders invested
capital
3. The amount
of a share
payment
included in the
owner's equity
4. other
(3) Profit
-32,208,000.00 -32,208,000.00
distribution
1. Extract the
surplus reserve
2. Distribution
to owners (or -32,208,000.00 -32,208,000.00
shareholders)
3. other
(4) Internal
carry-over of
owners' equity
1. Conversion
of capital
reserves into
increased
capital (or
equity)
2. Surplus
reserve into
51
Wafangdian Bearing Company Limited 2021 Midyear Report
increased
capital (or
equity)
3. Surplus
reserves cover
losses
4. Set benefit
plan changes
carried forward
to retained
earnings
5. Other
consolidated
earnings carried
forward to
retained
earnings
6. other
Special reserves
1. This extract
2. In current use
(6) Others
IV. Ending
402,600,000.00 485,678,443.26 136,770,391.01 250,685,363.33 1,275,734,197.60
balance
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Wafangdian Bearing Company Limited 2021 Midyear Report
III.General Information
Wafangdian Bearing Company Limited (the “Company”, the “Group” is referred to “Company”
together with its subsidiaries ) 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 Liu Jun.
Business scope: Permitted items: inspection and testing services, import and export of goods, import and
export of technology (the business activities can be carried out only after the approval of the relevant
departments according to law, and the specific business items shall be subject to the approval results)Bearing
manufacturing, bearings, gears and transmission components manufacturing, high speed precision heavy-duty
bearing sales, sales bearings, gears and transmission parts, bearing sales, general equipment manufacturing
(excluding special equipment manufacturing), high-speed rail equipment, parts manufacturing, machinery
and equipment sales, rail transportation equipment, key system and parts sales, sales of lubricating oil,
high-speed rail equipment and accessories sales,Wind generators and spare parts sales, machinery parts, spare
parts sales, railway locomotive vehicle accessories manufacturing, railway locomotive vehicle accessories
sales, auto parts and accessories manufacturing, auto parts wholesale and retail auto parts, metal products
repair, sales metal materials, metal products sales, metal surface treatment and heat treatment processing,
quenching process,Machinery parts and spare parts processing, land use right leasing, housing leasing,
non-residential real estate leasing, machinery equipment leasing, computer and communication equipment
leasing, transportation equipment leasing service, office equipment leasing service, storage equipment leasing
service, special equipment leasing, labor service (excluding labor dispatch),Technical services, technology
development, technology consultation, technology exchange, technology transfer, technology promotion
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Wafangdian Bearing Company Limited 2021 Midyear Report
(except for projects that are subject to approval according to law, business activities shall be independently
carried out according to law with business licenses)
Financial Statement Consolidation Scope
The Group’s financial statements consolidation includes Liaoyang Bearing, Dalian Wazhou Precision Motor
Car Bearing Company and Spherical Bearing three companies. There is no change for consolidation scope
by comparing to last year.
Please refer to “VII. Change of consolidation scope” and “VIII. Equity within other entity” in the Note
to the financial statements.
IV.Financial Statements Preparation Basis
(1)Basis of preparation
The Company’s financial statements are prepared on the basis of going concern assumption, according to
the actual occurred transactions and events and in accordance with ‘Accounting Standards for Business
Enterprises’ and relevant regulations, and also based on the note IV “Significant Accounting Policies,
Accounting Estimates”.
(2)Going concern
The group has evaluated the going-concern capability for the 12 months from the end of the reporting
period, and has found no significant doubts about the going-concern capability. Therefore, the financial
statements are prepared on the assumption of going concern.
V. Significant Accounting Policies and Accounting Estimates
Specific accounting policy and estimates reminder: the group established the accounting policy and estimate,
such as operation cycle, bad debt recognition and measurement, dispatched inventory measurement and
classification of fixed assets and FA’s depreciation, intangible asset’s amortization, revenue recognition
and measurement based on the actual characters of business operation.
1. Declaration for compliance with accounting standards for business enterprises
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 starting 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
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Wafangdian Bearing Company Limited 2021 Midyear Report
The Group adopts RMB as functional currency.
5. Accounting for business combination under same control and not under same control
As an acquirer, the assets and liabilities that The Group obtained in a business combination under the
same control should be measured on the basis of their carrying amount in the consolidated financial
statements 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 asset, liability and contingent liability obtained
from the acquirer shall be measured at the fair value on the acquisition date. 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 acquire, and sum of all direct
expenses(if the combination is achieved in stages, the combination cost shall be the sum of individual
transaction). The difference when combination cost exceeds proportionate share of the fair value of
identifiable net assets of acquiree should be recognized as goodwill. If the combination cost is less than
proportionate share of the fair value of identifiable net assets of acquiree, firstly, fair value of identifiable
asset, liability or contingent liability shall be reviewed, and so the fair value of non-monetary assets or
equity instruments issued in the combination consideration , after review, still the combination cost is
less than proportionate share of the fair value of identifiable net assets of acquire, the difference should be
recognized as non-operating income.
6. Method of preparation of consolidated financial statements
All subsidiaries controlled by the Group and structured entities are within the consolidation scope.
If subsidiaries adopt different accounting policy or have different accounting period from the parent
company, appropriated adjustments shall be made in accordance with the Group policy in preparation of
the consolidated financial statements.
All significant intragroup transactions, outstanding balances and unrealized profit shall be eliminated in
full when preparing the consolidated financial statements. Portion of the subsidiary ’ s equity not
belonging to the parent, profit, loss for the current period, portion of other comprehensive income and
total comprehensive belonging to minority interest, shall be presented separately in the consolidated
financial statements under “minority interest of equity”,”minority interest of profit and loss”, “other
comprehensive income attributed to minority interest” and “total comprehensive income attributed to
minority interest” title.
If a subsidiary is acquired under common control, its operation results and cash flow shall be consolidated
since the beginning of the consolidation period. When preparing the comparative consolidated financial
statements, adjustments shall be made to relevant items of comparative figures as regarded that reporting
entity established through consolidation has been always there since the point when the ultimate
controlling party starts to have the control.
If a business consolidation under common control is finally achieved in stages, consolidation accounting
method shall be disclosed additionally for the period in which the control is obtained. For example, if a
business consolidation under common control is finally achieved in stages, when preparing the
consolidated financial statements, adjustments shall be made for the current consolidation status as if
consolidation has always been there since the point when the ultimate controlling party starts to control.
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Wafangdian Bearing Company Limited 2021 Midyear Report
In preparation of comparative figures, asset and liability of the acquiree shall be consolidated into the
Group’s comparative financial statements, but to the extent no earlier than the point when the Group and
acquiree are both under ultimate control and relevant items under equity in comparative financial
statements shall be adjusted for net asset increased in combination. To avoid the duplicated computation
of net asset of acquiree, for long-term equity investment held by the Group before the consolidation,
relevant profit and loss, other comprehensive income and movement in other net asset, recognized for the
period between the combination date and later date when original shareholding is obtained and when the
Group and the acquiree are under common control of same ultimate controlling party, shall be
respectively used for writing down the opening balance of retained earnings of comparative financial
statements and profit and loss for the current period.
If a subsidiary is acquired not under common control, its operation results and cash flow shall be
consolidated since the beginning of the consolidation period. In preparation of the consolidated financial
statements, adjustments shall be made to subsidiary’s financial statements based on the fair value of its
all identifiable assets, liability or contingent liability on the acquisition date.
If a business consolidation under non-common control is finally achieved in stages, consolidation
accounting method shall be disclosed additionally for the period in which the control is obtained. For
example, if a business consolidation not under common control is finally achieved in stages, when
preparing the consolidated financial statements, the acquirer shall remeasure its previously held equity
interest in the acquiree at its acquisition-date fair value and recognize the resulting gain or loss as
investment income for the current period. Other comprehensive income, under equity method accounting
rising from the interest held in acquiree in relation to the period before the acquisition, and changes in the
value of its other equity other than net profit or loss, other comprehensive income and profit appropriation
shall be transferred to investment gain or loss for the period in which the acquisition incurs,
excluding the other comprehensive income from the movement on the remeasurement of ne asset or
liability of defined benefit plan.
When the Group partially disposes of the long –term equity investment in subsidiary without losing the
control over it, in the consolidated financial statements, the difference, between disposals price and
respective disposed value of share of net assets in the subsidiary since the acquisition date or combination
date, shall be adjusted for capital surplus or share premium, no enough capital surplus, then adjusted for
retained earnings.
When the Group partially disposes of the long –term equity investment in subsidiary and lose the control
over it, in preparation of consolidated financial statements, remaining share of interest in the subsidiary
shall be remeasured on the date of losing control. Sum of the share disposal consideration and fair value
of remaining portion of shareholding minus the share of the net assets in the subsidiary held based on the
previous shareholding percentage since the acquisition date or combination date, the balance of above
is recognized as investment gain/loss for the period and goodwill shall be written off accordingly. Other
comprehensive income relevant to share investment in subsidiary shall be transferred to investment gain
/loss for the period on the date of losing control.
When the Group partially disposes of the long –term equity investment in subsidiary and lose the control
over it by stages, if all disposing transactions are bundled, each individual transaction shall be seen as a
transaction of disposal of a subsidiary by losing control. The difference between the disposal price and
the share of the net assets in the subsidiary held before the date of losing control, shall be recognize as
other comprehensive income until the date of losing control where it is transferred into investment gain/
loss for the current period.
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Wafangdian Bearing Company Limited 2021 Midyear Report
7. Joint arrangement classification and joint operation accounting
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
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.
Translation of foreign currency financial statements
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 owner’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 other comprehensive income title. 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 instruments
A financial asset or financial liability is recognised when the Group becomes a party to a financial instrument contract.
Financial assets
Classification, recognition basis and measurement method of financial assets
The Group classifies financial assets as financial assets measured at amortized cost, financial assets measured at fair value and
their changes included in other comprehensive income, and financial assets measured at fair value and their changes included in
current profit and loss according to the business model of financial assets management and the contractual cash flow characteristics
of financial assets.
The Group classifies the financial assets that meet the following conditions as financial assets measured by amortized cost: ①
The business model for the management of the financial assets is to receive contract cash flow as the target.② The contractual terms
of the financial asset stipulate that the cash flow generated on a specified date is only the payment of the principal and the interest
based on the outstanding principal amount.Such financial assets are initially measured in accordance with their fair value, and
relevant transaction costs are included in the initial recognition amount;Follow up measurement at amortized cost.Except for the
hedged item, the difference between the initial amount and the amount due shall be amortized according to the effective interest rate
method, and the amortization, impairment, exchange gain or loss and the gain or loss arising from the termination of recognition
shall be recorded into the current profit or loss.
The group classiifies the financial assets that meet the following conditions as financial assets measured at fair value and whose
changes are included in other comprehensive income: ① The business model of managing the financial assets is aimed at both
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receiving the contract cash flow and selling the financial assets.② The contractual terms of the financial asset stipulate that the cash
flow generated on a specified date is only the payment of the principal and the interest based on the outstanding principal
amount.Such financial assets are initially measured in accordance with their fair value, and relevant transaction costs are included in
the initial recognition amount.Except for those designated as hedged items, other gains or losses, other than credit impairment
losses or gains, exchange gains and losses and interest on the financial assets calculated according to the effective interest rate
method, arising from such financial assets shall be included in other comprehensive income;When the recognition of a financial
asset is terminated, the accumulated gains or losses previously recorded in other comprehensive income shall be transferred out of
other comprehensive income and recorded into the current profit and loss.
The Group recognizes interest income in accordance with the effective interest rate method.The interest income shall be
calculated and determined by multiplying the book balance of the financial asset by the actual interest rate, except in the following
cases: (1) For the purchased or generated financial asset with credit impairment, the interest income shall be calculated and
determined according to the amortized cost of the financial asset and the actual interest rate adjusted by credit since the initial
recognition.(2) For the financial assets purchased or generated without credit impairment, but become credit impairment in the
subsequent period, the interest income of the financial assets shall be calculated and determined according to the amortized cost and
the actual interest rate of the financial assets.
The Group designates non-traded equity instrument investments as financial assets that are measured at fair value and whose
changes are recorded in other comprehensive income.Once made, such designation may not be revoked.Non-tradable equity
instrument investment designated by the Group which is measured at fair value and its changes are included in other comprehensive
income shall be initially measured in accordance with fair value and relevant transaction costs shall be included in the initial
recognition amount;In addition to the dividends (excluding the investment cost recovery part) included in the current profit and loss,
other related gains and losses (including exchange gains and losses) are included in other comprehensive income, and can not be
transferred into the current profit and loss.When the recognition is terminated, the accumulated gains or losses previously included
in other comprehensive income are transferred from other comprehensive income and included in retained earnings.
Financial assets other than those classified above as financial assets measured at amortized cost and those classified as
financial assets measured at fair value and whose changes are included in other comprehensive income.The group will classify it
into two financial assets measured at fair value and its changes into current profit and loss.Such financial assets in accordance with
the fair value of the initial measurement, the relevant transaction costs directly into the current profit and loss.Gains or losses on
such financial assets shall be booked into current profits and losses.
If the contingent consideration recognized by the Group in the business combination not under the same control constitutes a
financial asset, the financial asset shall be classified as the financial asset measured at fair value and the change of the financial
asset shall be recorded into the current profit and loss.
Confirmation basis and measurement method of financial asset transfer
The Group will terminate the recognition of the financial assets that meet one of the following conditions: (1) Termination
of the contractual right to receive the cash flow of the financial assets;(2) When financial assets are transferred, the group has
transferred almost all risks and rewards on the ownership of financial assets;(3) When the financial asset is transferred, the Group
neither transfers nor retains almost all the risks and rewards of the ownership of the financial asset, and does not retain control over
the financial asset.
Transfer the entire financial asset meet the recognition criteria of termination, the book value of the transferred financial asset,
and received by transfer of value and the fair value originally recorded in other comprehensive income amount corresponds to the
portion whose recognition has been stopped in the accumulative amount of changes (provisions relating to transfer of financial
assets of the terms of the contract, the cash flow at a specific date,Only the difference between the sum of the principal and the
interest payments based on the outstanding principal amount is accounted for in the current profit or loss.If the partial transfer of
financial assets meets the conditions for the termination of recognition, the overall carrying value of the transferred financial assets
shall be apportion between the terminated recognition part and the unterminated recognition part according to their respective
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relative fair value.And will be received by transfer of value and share to terminate identified previously included in the other part of
the changes in fair value of the accumulative amount of comprehensive income the amount of which corresponds to the portion
whose recognition has been stopped (provisions relating to transfer of financial assets of the terms of the contract, the cash flow at a
specific date, is only on the principal and on the basis of the outstanding principal amount of the interest payments), the sum of
The difference between it and the apportioned overall book value of the aforementioned financial assets shall be recorded into the
profit and loss of the current period.
Financial liabilities
Classification, recognition basis and measurement method of financial liabilities
At the time of initial recognition, the financial liabilities of the Group are classified as financial liabilities and other financial
liabilities which are measured at fair value and whose changes are included in the profit and loss of the current period.
Financial liabilities measured at fair value and whose changes are included in the profit and loss of the current period,
including trading financial liabilities and the financial liabilities initially recognized as measured at fair value and whose changes
are included in the profit and loss of the current period, (the relevant classification is disclosed according to the financial asset
classification basis).The subsequent measurement is carried out according to the fair value, and the gains or losses formed by the
change of fair value and the dividends and interest expenses related to the financial liabilities are booked into the current profit and
loss.
For other financial liabilities, the effective interest rate method is adopted and the subsequent measurement is carried out
according to the amortized cost.In addition to the following, the group will be financial liabilities classified as financial liabilities
measured at the amortized cost: (1) measured at fair value and the changes are recorded into the profits and losses of the current
financial liabilities, including transactional financial liabilities (including the derivatives for financial liabilities) and designated as
at fair value and whose fluctuations are recorded into the profits and losses of the current financial liabilities.(2) Financial liabilities
formed by the transfer of financial assets that do not meet the conditions for termination of recognition or continue to be involved in
the transferred financial assets.(3) financial security contracts that do not fall under the circumstances ① or ② above, and loan
commitments that do not fall under the circumstances ① above to borrow at below market rates.
If the group forms financial liabilities from the contingent consideration recognized by the purchaser in the business
combination not under the same control, it shall be measured at fair value and its changes shall be recorded into the current profit
and loss for accounting treatment.
Conditions for termination of recognition of financial liabilities
When the current obligation of a financial liability has been discharged in whole or in part, the discharged part of the financial
liability or obligation shall cease to be recognized.The group and the creditors sign an agreement to replace the existing financial
liabilities by assuming new financial liabilities. If the contract terms of the new financial liabilities and the existing financial
liabilities are substantially different, the existing financial liabilities shall be terminated and the new financial liabilities shall be
recognized at the same time.If the Group materially amends all or part of the contract terms of the existing financial liability, it shall
terminate the recognition of the existing financial liability or part of it, and at the same time recognize the financial liability after the
modification as a new financial liability.The difference between the book value of the terminated recognition and the consideration
paid shall be recorded into the profit and loss of the current period.
3. Fair value determination method of financial assets and financial liabilities
The Group measures the fair value of financial assets and financial liabilities at the prices of major markets. If there is no
major market, the group measures the fair value of financial assets and financial liabilities at the prices of the most favorable market,
and adopts the valuation technology applicable at that time and supported by sufficient available data and other information.The
input value used in fair value measurement is divided into three levels, that is, the input value of the first level is the unadjusted
quotation of the same asset or liability in the active market that can be obtained on the measurement day;The input value of the
second level is the directly or indirectly observable input value of the related asset or liability in addition to the input value of the
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first level;The third-level input values are the unobservable input values of the underlying asset or liability.The group uses the first
level input value first and the third level input value last.The level to which the fair value measurement results belong is determined
by the lowest level to which the input values that are of great significance to the fair value measurement as a whole belong.
The Group's investment in equity instruments is measured at fair value.However, in limited cases, if the recent information used
to determine the fair value is insufficient, or if the possible estimated amounts of the fair value are distributed over a wide range and
the cost represents the best estimate of the fair value within that range, the cost may represent the appropriate estimate of the fair
value within that range.
4. Offsetting of financial assets and financial liabilities
The financial assets and financial liabilities of the Group are presented separately in the balance sheet and do not offset each
other.However, if the following conditions are met at the same time, the net amount after mutual offset shall be shown in the
balance sheet :(1) the group has the legal right to offset the recognized amount, and this legal right is currently enforceable;(2) The
Group plans to net settle or realize the financial assets and liquidate the financial liabilities at the same time.
5. Distinction between financial liabilities and equity instruments and relevant treatment methods
The group distinguishes financial liabilities from equity instruments in accordance with the following principles :(1) if the
group cannot unconditionally avoid performing a contractual obligation by paying cash or other financial assets, the contractual
obligation meets the definition of a financial liability.Although some financial instruments do not explicitly contain terms and
conditions for the obligation to deliver cash or other financial assets, it is possible to indirectly form contractual obligations through
other terms and conditions.(2) if a financial tools must be used or the group settlement's own equity instruments are available, and
need to be considered for settlement of the tool of the group's own equity instruments, as a substitute for cash or other financial
assets, or in order to make the tool holder enjoy after deducting all liabilities of the issuer of the residual interest in the assets.In the
former case, the instrument is a financial liability of the issuer;In the latter case, the instrument is the equity instrument of the issuer.
In some cases, this group is to be a financial instrument contract with their rights or available tools to settle the financial tools,
including contractual rights or obligations under a contract amount equal to the available or have to pay when multiplied by the
number of its own equity instruments and settlement of the fair value, no matter the amount of the contract rights or obligations are
fixed,Or is it based in whole or in part on changes in variables other than the market price of the Group's own equity instrument
(such as interest rates, the price of a commodity or the price of a financial instrument), the contract is classified as a financial
liability.
In classifying financial instruments (or their components) in the consolidated statements, the Group has taken into account all
terms and conditions agreed between the members of the Group and the holders of the financial instruments.An instrument shall be
classified as a financial liability if the Group as a whole has obligations as a result of the instrument to deliver cash, other financial
assets or settle in any other manner that would cause the instrument to become a financial liability.
If financial instruments or their components are financial liabilities, the relevant interest, dividends (or dividends), gains or
losses, as well as the gains or losses generated by redemption or refinancing, the Group will record the profits and losses of the
current period.
If a financial instrument or any part thereof is an equity instrument, the Group shall treat the issue (including refinancing),
repurchase, sale or write-off of the instrument as a change in the equity and shall not recognize the change in the fair value of the
equity instrument.
6. Impairment of financial instruments
On the basis of expected credit losses, the Group performs impairment treatment and recognizes loss provisions for financial
assets measured at amortized cost and debt instrument investments measured at fair value and whose changes are included in other
comprehensive income.
Credit loss refers to the difference between all contractual cash flows receivable under the contract and all cash flows expected
to be received by the Group, discounted at the original effective interest rate, i.e. the present value of all cash shortfalls.Among
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them, the financial assets purchased or generated by the Group with credit impairment shall be discounted according to the credit
adjusted effective interest rate of the financial assets.
For receivables that do not contain a material financing component, the Group uses a simplified measurement method to
measure the loss provision at an amount equivalent to the expected credit loss over the entire duration.The Group shall assess on
each balance sheet date whether its credit risk has increased significantly since the initial recognition. If the credit risk has increased
significantly since the initial recognition, the Group shall measure the loss provision according to the amount equivalent to the
expected credit loss in the entire duration;If the credit risk does not increase significantly after the initial recognition, the Group
shall measure the loss provision according to the amount equivalent to the expected credit loss in the next 12 months.
The Group considers all reasonable and evidence-based information, including forward-looking information, in assessing
anticipated credit losses.
When the Group no longer reasonably expects to recover all or part of the contracted cash flow of the financial asset, the
Group directly writes down the book balance of the financial asset.
In addition to evaluating overdue credit losses of certain financial assets on a single-item basis, the Group also evaluates
expected credit losses of financial assets measured at amortized cost on an aging portfolio basis.
According to the credit risk characteristics, the Group divides notes receivable, accounts receivable and other receivables
into several combinations. On the basis of the combinations, the expected credit losses are calculated and the combinations are
determined on the following basis:
combination On the basis of
Notes receivable 1 Bank acceptance
Notes receivable 2 A combination of commercial acceptance bills received from a related party
Notes receivable 3 Combination of commercial acceptance bills received from non-associated parties
Accounts receivable 1 Combination of related parties
Accounts receivable 21 Aging combination
For the accounts receivable divided into combinations, the Group makes a comparison table between the age of accounts
receivable and the expected credit loss rate of the entire duration by referring to the historical credit loss experience and combining
the current situation and the forecast of future economic conditions to calculate the expected credit loss.
The Group divides other receivables into several combinations according to credit risk characteristics, and calculates
expected credit losses on the basis of the combinations. The combinations are determined on the following basis:
combination On the basis of
Other accounts receivable 1 Combination of related parties
Other receivables 2 Aging combination
Other accounts receivable 3 Risk-free portfolio (classified according to the reputation of the transaction
object, nature of funds, transaction safeguard measures, etc.)
For the other receivables divided into the portfolio, the Group calculates the expected credit loss through default risk
exposure and the expected credit loss rate of the entire duration by referring to the historical credit loss experience, combined with
the current situation and the forecast of future economic conditions.
11. Notes receivable
See Article 6 impairment of Financial Instruments
12.Accounts receivable
See Article 6 impairment of Financial Instruments
13. Receivables financing
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The mode of managing notes receivable of the Group is both to collect contract cash flow and to sell the financial asset, so it is
classified as the financial asset measured at fair value and its changes are included in other comprehensive income, and it is listed in
the receivables financing.
14. Other receivables
Determination method and accounting treatment method of expected credit loss of other receivables
See Article 6 impairment of Financial Instruments
15. inventory
Classification of inventory: Inventories are classified as raw material, wrappage, low-valuable consumable, working-in-progress,
and finished goods etc.
The inventories are processed on perpetual inventory system, and are measured at their budgeted cost on acquistion. The raw
materials are accounted daily on their bedgeted costs. The differences between the budget and actual costs is recorded into the costs
of materials purchased and cost of materials dispatched according to proportion of raw materials in stock and dispatched, and adjust
the budgeted costs of raw material into actual costs. The working-in-progress and finished goods are accounted on their budgeted
costs; the differences between the budgeted costs and actual costs are recorded into the costs of working-in-progress and finished
goods according to proportion of inventory in stock and dispatched, and finaly adjust the budgetedcosts into actual costs.Inventory
usage and dispatch is measured at average cost as actual cost.Low value consumables and packaging materials is recognized in the
income statement by one-off method.
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
classification 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.
16.Contract asset
(1) Recognition and criterion
Contract asset is an entity's right to consideration in exchange for goods or services that the entity has transferred to a customer
when that right is conditioned on something other than the passage of time. Contract asset and contract liability originated from
same contact shall be listed at net amount.
(2) Expected credit loss recognition and accounting of contract asset
Expected credit loss recognition of contract asset is referred to the Note IV.10 (6) . Provision for Impairment of Financial
Insturment.
On the balance sheet date, expected credit loss of contract asset shall be calculated and the difference shall be recognized as the
impairment loss if the loss figure worked out is bigger than the carrying amount of the provision for impairment of contract asset,
and debit "asset impairment loss”, credit "provision for impairment of contract asset”. On the contrary, the Company shall
recognize the difference as impairment profit and keep the opposite accounting record.
If the actual credit loss incurred and the contract asset is unable to be collected with confirmation, after the approval is given, the
loss shall be written off based on the approved amount and debit "provision for impairment of contract asset”, credit "contract
asset”. If the amount to be written is greater than the provision, the difference shall be debited to "asset impairment loss”
17.Contract cost
(1) Assets recognition methods in relation to contract cost
Assets relevant to contract cost in the company include cost to fulfill the contract and cost to obtain a contract.
If the costs incurred in fulfilling a contract with a customer are not within the scope of another Standard, an entity shall recognize an
asset from the costs incurred to fulfill a contract only if those costs meet all of the following criteria: the costs relate directly to a
contract or to an anticipated contract, including direct labor, direct materials and overheads which is clearly stated to be borne by
the client and any other cost in line with the contract; the costs enhance resources of the entity that will be used in performance
obligations in the future; and the costs are expected to be recovered.
An entity shall recognize an asset as the incremental costs of obtaining a contract with a customer if the entity expects to recover
those costs. an entity may recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization
period of the asset t is one year or less. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a
contract with a customer that it would not have incurred if the contract had not been obtained (for example, a sales commission).
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Costs to obtain a contract that would have been incurred rather than the incremental cost expected to be recovered shall be
recognized as an expense when incurred, unless those costs are explicitly chargeable to the customer regardless of whether the
contract is obtained
(2) Amortization of asset relevant to contract cost
An asset recognized in accordance with contract cost shall be amortized on a systematic basis that is consistent with the transfer to
the customer of the goods or services to which the asset relates.
(3) Impairment of asset relevant to contract cost
When determining the impairment loss of the assets related to the contract cost, the Company shall firstly determine the impairment
loss of the assets related to the contract that are recognized in accordance with the other accounting standards. If the book value of
the asset is higher than the remaining consideration expected to be obtained by the Company for the transfer of the goods related to
the asset and the estimated cost to be incurred for the transfer of the goods related to the asset, the excess part shall be withdrawn as
an impairment provision and recognized as an impairment loss of the asset.
An entity shall recognize in profit or loss a reversal of some or all of an impairment loss previously recognized when the
impairment conditions no longer exist or have improved. The increased carrying amount of the asset shall not exceed the amount
that would have been determined (net of amortization) if no impairment loss had been recognized previously.
18.Hold assets for sale
There is no
19. Debt investment
There is no
20. Other debt investment
There is no
21. Long-term receivables
There is no
22. Long-term equity investment
Long term equity investments are the investment in subsidiary, in associated company and in joint venture.
Joint control is the contractual agreement sharing of control over an economic activity by all participants or participants'
combination and decisions or policies relating to the operating activity of the entity require the unanimous consent of the parties
sharing the control.
Significant influence exists when the entity directly or indirectly owned 20% or more but less than 50% shares with voting rights in
the investee company.If holding less than 20% voting rights, the entity shall also take other facts or circumstances into accounts
when judging any significant influences. Factors and circumstances include: representation on the board of directors or equivalent
governing body ofthe investee, participation in financial or operating activities policy-making processes,material transactions
between the investor and the investee, interchange of managerial personnel or provision of essential technical information.
When control exists over an investee, the investee is a subsidiary of an entity. The initial investment cost for long-term equity
investment acquired through business combination under common control, is the carrying amount presented in the consolidated
financial statements of the share of net assets at the combination date in the acquired company. If the carrying amount of net assets
at the combination date in the acquired company is negative, investment shall be recognized at zero.
If the equity of investee under common control is acquired by stages and business combination incursin the end, an entity shall
disclose the accounting method for long-term equity investment in the parent financial statement as a supplemental. For example, if
the equity of investee under common control is acquired by stages and business combination incursin the end, and it's a bundled
transaction, the entity shall regard all transactions as a one for accounting. If it's not a bundled transaction, the carrying amount
presented in the consolidated financial statements of the share of net assets at the combination date in the acquired company since
acquisition is determined as for the initial cost of long-term equity investment. The difference between the cost initially recognized
and carrying amount of long-term equity investment prior to the business combination plus the newly paid consideration for further
share acquired, and capital reserve shall be adjusted accordingly. If no enough capital reserve is available for adjustment, retain
earnings shall be adjusted.
If long-term equity investment is acquired through business combination not under common control, initial investment cost shall be
the combination cost.
If the equity of investee not under common control is acquired by stages and business combination incursin the end, an entity shall
disclose the accounting method for long-term equity investment in the parent financial statement as a supplemental. If the equity
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investment of investee not under common control is acquired by stages and business combination incursin the end, and it's a
bundled transaction, the entity shall regard all transactions as a one for accounting. If it's not a bundled transaction, the carrying
amount of the equity investment held previously plus newly increased investment cost are taken as the initial investment cost under
cost model. If equity investment is held under equity method before the acquisition date, other comprehensive income under equity
method previously shall not be adjusted accordingly. When disposing of the investment, the entity shall adopt the same basis as the
investee directly disposing of related assets or liability for accounting treatment. Equity held prior to acquisition date as available
for sale financial assets under fair value model, accumulated change on fair value previously recorded in other comprehensive shall
be transferred into investment gain/loss for the period.
Apart from the long-term equity investments acquired through business combination mentioned above, the cost of investment for
the long-term equity investments acquired by cash payment is the amount of cash paid. For long-term equity investment acquired by
issuing equity instruments, the cost of investment is the fair value of the equity instrument issued. For long-term equity investment
injected to the entity by the investor, the investment cost is the consideration as specified in the relevant contract or agreement.
The Group adopts cost method to account for investment in subsidiary and equity method for investment in joint venture and
affiliate.
Long-term equity investment subsequently measured under cost model shall increase the carrying amount of investment by
adjusting the fair value of additional investment and relevant transaction expenses. Cash dividend or profit declared by investee
shall be recognized as investment gain/loss for the period based on the proportion share in the investee.
Long-term equity investment subsequently measured under equity method shall be adjusted for its carrying amount according to the
share of equity increase or decrease in the investee. The entity shall recognize its share of the investee's net profits or losses based
on the fair value of the investee's individual identifiable assets at the acquisition date, after making appropriate adjustments thereto
in conformity with the accounting policies and accounting period, and offsetting the unrealized profit or loss from internal
transactions entered into between the entity and its associates and joint ventures according to the shareholding attributable to the
entity and accounted for as investment income and loss based on such basis.
On disposal of a long-term equity investment, the difference between the carrying value and the consideration actually received is
recognised as investment income for the period. For long-term investments accounted for under equity method, the movements of
shareholder's equity, other than the net profit or loss, of the investee company, previously recorded in the shareholder's equity of the
Company are recycled to investment income for the period on disposal.
Where the entity has no longer joint control or significant influence in the investee company as a result of partially disposal of the
investment, the remaining investment will be changed to be accounted for as available for sale financial assets, and the difference
between the fair value of remaining investment at the date of losing joint control or significant influence and its carrying amount
shall be recognized in the profit or loss for the year. Other comprehensive income recognized from previous equity investment
under equity model shall be accounted for on the same basis as the investee directly disposing of related assets or liability when
stopping using under equity model.
Where the entity has no longer control over the investee company as a result of partially disposal of the investment, the remaining
investment will be changed to be accounted for using equity method providing remaining joint control or significant influence over
the investee company. The difference between carrying amount of disposed investment and consideration received actually shall be
recognised in the profit and loss for the period as investment gain or loss, and investment shall be adjusted accordingly as if it was
accounted for under equity model since acquisition. Where the entity has on longer joint control or significant influence in the
investee as a result of disposal, the investment shall be changed to be accounted for as available for sale financial assets, and
difference between the carrying amount and disposal consideration shall be recognized in profit and loss for the period, and the
difference between the fair value of remaining investment at the date of losing control and its carrying amount shall be recognized
in the profit or loss for the year as investment gain or loss.
If the entity loses its control through partially disposal of investment by stages and it's not a bundled transaction, the entity shall
account for all transactions separately. If it's a bundled transaction, the entity shall regard all transactions as one disposal of
subsidiary by losing control, but the difference between disposal consideration and carrying amount of the equity investment
disposed prior to losing control, which arises from each individual transaction shall be recognized as other comprehensive income
until being transferred into profit and loss for the period by the time of losing control.
23.Investment property
Investment property of the Company includes land and property. Cost model is adpoted.
Investment property is depreciated or amortized under straight line method. Estimated net residual value rate, useful life,
depreciation rate as follows:
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Wafangdian Bearing Company Limited 2021 Midyear Report
Estimated net
Useful life Annual
Category residual value rate
(years) depreciation rate
(%)
Use right of land 40 8.33%
Property and buildings
Including: Buildings 15 3 6.47%
Housing for production 30 3 3.23%
Housing for non-production 35 3 2.77%
24.Fixed assets
(1) Confirm the conditions
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
All fixed assets shall be depreciated unless the fixed assets had been fully depreciated and are still being used and land is separately
measuered. Straight-line depreciation method is adopted by the Group. Estimated net residual value rate, useful life, depreciation
rate as follows:
Estimated net
Useful life Annual depreciation
No Category residual value
(years) rate
rate (%)
1 Housing and Buildings
Including: Buildings 15 3 6.47%
Housing for production 30 3 3.23%
Housing for non-production 35 3 2.77%
2 Machinery equipment 10-15 3 6.47%～9.70%
3 Transportation equipment 6 3 16.17%
4 Electronic equipment
Including: Computer 4 3 24.25%
General testing instruments 7 3 13.86%
Specialized electronic equipment 8 3 12.13%
Automated controlling equipment 8 3 12.13%
Automated controlling meters 8 3 12.13%
5 Others equipment
Including: Industrial kiln 7 3 13.86%
Tools & other production tools 9 3 10.78%
Transmission equipment 15 3 6.47%
Non-operational equipment and tools 18 3 5.39%
The company should review the estimated useful life, estimated net residual value and depreciation method at the end of each year.
If any change has occurred, it shall be regarded as a change in the accounting estimates.
(3) the identification basis, valuation and depreciation method of the fixed assets leased through financing
No
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25.Construction in progress
The criteria and time spot of constructions in progress's being transferred to fixed assets: Constructions in progress are carried down
to fixed assets on their actual costs when completing and achieving estimated usable status. The fixed assets that have been
completed and reached estimated usable status but have not yet been through completion and settlement procedures are charged to
an account according to their estimate values; adjustment will be conducted upon confirmation of their actual values. The Group
should withdraw depreciation in the next month after completion.
26.Borrowing costs
The borrowing cost includes the interest expenses of the borrowing, amortization of underflow or overflow from borrowings,
additional expenses and the foreign exchange profit and loss because of foreign currency borrowings. The borrowing costs incurred
which can be directly attribute to the fixed assets, investments properties, inventories requesting over 1 year purchasing or
manufacturing so to come into the expected condition of use or available for sale shall start to be capitalized when expenditure for
the assets is being occurred, borrowing cost has occurred, necessary construction for bringing the assets into expected condition for
use is in progress. The borrowing costs shall stop to be capitalized when the assets come into the expected condition of use or
available for sale. The borrowing costs subsequently incurred should be recorded into profit and loss when occurred. The borrowing
costs should temporarily stop being capitalized when there is an unusual stoppage of over consecutive 3 months during the purchase
or produce of the capitalized assets, until the purchase or produce of the asset restart.
The borrowing costs of special borrowings, deducting the interest revenue of unused borrowings kept in the bank or the investment
income from transient investment should be capitalized. The capitalized amount of common borrowings should be calculated as
follows: average assets expenditure of the accumulated assets expenditure excess the special borrowing, multiplied by the capital
rate. The capital rate is the weighted average rate of the common borrowings.
27. Biological assets
There is no
28. Oil and gas assets
There is no
29. Right to use assets
The right to use assets refers to the right of the lessee to use the leased assets during the lease term, which shall be initially
measured at the cost.
In combination with the provisions of the new lease criteria, the new lease criteria will be implemented on January 1, 2021, and
simplified treatment will be adopted in the transition policy of the criteria, that is: lease liabilities are equal to the present value of
the remaining lease payments, and the use-right assets are equal to the lease liabilities and make necessary adjustments, and
depreciation and interest expense are recognized respectively.This method will not affect the company's retained earnings at the
beginning of 2021.
(1) Valuation method, service life and impairment test
Intangible assets of the Group include land use right, ERP software, other intangible assets, etc., which are measured according
to the actual cost at the time of acquisition. Among them, intangible assets purchased are measured according to the actual price
paid and other related expenses as the actual cost.The actual cost of intangible assets invested by investors shall be determined
according to the value agreed in the investment contract or agreement, but if the value agreed in the contract or agreement is not fair,
the actual cost shall be determined according to the fair value.
The right to the use of the land shall be amortized on an average basis according to the number of years during which the land is
granted from the date of grant;ERP software and other intangible assets will be amortized on the basis of the shortest expected
service life, the benefit life stipulated in the contract and the effective life stipulated in the law.The amortization amount is booked
into the relevant asset cost and current profit and loss according to the beneficiary.The expected service life and amortization
method of intangible assets with limited service life shall be reviewed at the end of each year. If there is any change, it shall be
treated as a change in accounting estimation.
(2) Internal research and development expenditure accounting policy
There is no
31.Impairment of long-term assets
There is no
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Wafangdian Bearing Company Limited 2021 Midyear Report
32. Long-term deferred expenses
The long-term deferred expenses of the Group refer to the expenses that have been disbursed but should be borne by the
current period and subsequent periods with an amortization period of more than 1 year (excluding 1 year).Such expenses will be
amortized on average during the benefit period. If the long-term deferred expense item cannot benefit the subsequent accounting
period, the amortized value of the item which has not been amortized will be transferred to the current profit and loss.
33.Contract liability
An entity's obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is
due) from the customer. Contract asset and contract liability originate from same contact shall be listed at net amount.
34..Employee compensation
(1) Accounting treatment of short-term compensation
Short-term compensation mainly include employee salaries, bonuses, allowances and subsidies, employee welfare, social
insurance and housing accumulation fund, employee education funds and union funds, provide service in the worker of the
accounting period, actual short-term compensation will be recognized as liabilities, and according to the benefit object recorded into
the profits and losses of the current or the relevant asset costs.
(2) Accounting treatment of post-employment benefits
Post-employment benefits mainly include basic pension insurance, unemployment insurance, etc. According to the risks and
obligations assumed by the company, they are classified into set contribution plan and set benefit plan.
For the set escrow plan, the escrow paid to a separate entity on the balance sheet date in exchange for the services provided by
the employee during the accounting period is recognized as a liability, and the profit and loss of the current period or the cost of
related assets are recorded according to the beneficiary.
(3) Accounting treatment of dismiss benefits
(4) Other accounting methods for long-term employee benefits
35.Lease liabilities
The lease liabilities shall be initially measured according to the present value of the outstanding lease payments on the
commencement date of the lease term.The lessee shall calculate the depreciation of the use-right assets with reference to the
relevant depreciation provisions of the Accounting Standards for Enterprises No. 4 - Fixed Assets, confirm whether the use-right
assets have been impaired in accordance with the provisions of the Accounting Standards for Enterprises No. 8 - Asset impairment,
and make accounting treatment for the identified impairment loss.
36. Estimated liabilities
When the business related to external guarantee, discount of commercial acceptance bill, pending litigation or arbitration,
product quality guarantee and other contingencies meet the following conditions at the same time, the Group recognizes it as a
liability: The obligation is the current obligation undertaken by the Group;The fulfillment of this obligation is likely to lead to the
outflow of economic benefits from the enterprise;The amount of this obligation can be measured reliably.
The estimated liabilities are initially measured in accordance with the best estimate of the expenses required to fulfill the
relevant current obligations, taking into account the risks, uncertainties and time value of money related to contingencies.If the time
value of money has a significant impact, the best estimate is determined by discounting the relevant future cash outflows.The
carrying value of the estimated liabilities is reviewed at each balance sheet date and, if changed, the carrying value is adjusted to
reflect the current best estimate.
37. Share payment
An equity-settled sharebased payment in exchange for services rendered by an employee, measured at the fair value of the
employee equity instrument at the grant date.The amount of the fair value shall be calculated and included in relevant costs or
expenses according to the straight line method on the basis of the best estimate of the number of feasible rights and equity
instruments during the waiting period, and the capital reserve shall be increased accordingly, if the right is feasible only after the
service is completed or the specified performance conditions are met.
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Wafangdian Bearing Company Limited 2021 Midyear Report
Cash-settled sharebased payments are measured at the fair value of the liabilities assumed by the Group on the basis of shares or
other equity instruments.If the right is available immediately after the grant, the fair value of the liabilities to be assumed shall be
included in the relevant costs or expenses on the grant date, and the liabilities shall be increased accordingly;If it is necessary to
complete the services in the waiting period or meet the specified performance conditions before the right is feasible, on each
balance sheet date of the waiting period, based on the best estimate of the right situation and according to the fair value amount of
the liabilities assumed by the Group, the services obtained in the current period shall be included in the cost or expense and the
liabilities shall be adjusted accordingly.
On each balance sheet date and the settlement date before the settlement of the relevant liabilities, the fair value of the liabilities
shall be re-measured, and its change shall be recorded into the profit and loss of the current period.
38.Preferred shares, perpetual bonds and other financial instruments
39.income
Accounting policies used in revenue recognition and measurement
The Group recognizes revenue when it performs its performance obligations under the contract, that is, when the customer obtains
control of the relevant goods or services.The specific criteria for the recognition of revenue from sales of goods: the company will deliver
the goods to the customer and confirm the realization of revenue from sales of goods.
If the contract contains two or more performance obligations, the Group shall, at the beginning of the contract, apportion the
transaction price to each individual performance obligation according to the relative proportion of the individual selling price of the goods
or services promised in each individual performance obligation, and measure the income according to the transaction price apportioned to
each individual performance obligation.
The transaction price is the amount of consideration the Group expects to be entitled to receive in connection with the transfer of
goods or services to customers, excluding payments received on behalf of third parties.The group recognizes transaction prices that
do not exceed the amount by which the cumulative recognized revenue is most likely not to be materially reversed when the
relevant uncertainty is removed.Amounts expected to be refunded to customers are not included in the transaction price as
liabilities.Where there is a significant financing component to the contract, the Group determines the transaction price on the basis
of the amount payable in cash that is assumed to be paid by the customer upon acquisition of control of the goods or services.The
difference between the transaction price and the contract consideration is amortized over the contract term using the effective
interest rate method.On the commencement date of the contract, the Group expects the customer to acquire control of the goods or
services within a period of one year from the time the customer pays the price, irrespective of the significant financing component
of the contract.
If one of the following conditions is met, the Group shall fulfill its performance obligations within a certain period of
time;Otherwise, the performance obligation shall be fulfilled at a certain point:
1. The customer obtains and consumes the economic benefits brought by the Group's performance of the contract at the same time.
2. The customer can control the goods under construction in the process of the Group's performance.
3. The commodities produced during the performance of the Group have irreplaceable uses, and the Group has the right to collect
the payment for the cumulative part of the performance completed so far during the entire contract period.
For performance obligations performed within a certain period of time, the Group recognizes revenue in accordance with the
performance progress during that period.When the performance schedule cannot be reasonably determined, if the group's costs
already incurred are expected to be compensated, revenue shall be recognized in accordance with the amount of costs already
incurred until the performance schedule can be reasonably determined.
For performance obligations performed at a certain point, the Group recognizes revenue at the point when the customer takes
control of the relevant goods or services.In determining whether a customer has acquired control of the goods or services, the Group
considers the following indications:
1. The Group has the current right to receive payment in respect of the goods or services.
2. The Group has transferred the legal ownership of the goods to the customer.
3. The Group has transferred the goods in kind to the customer.
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Wafangdian Bearing Company Limited 2021 Midyear Report
4. The Group has transferred the principal risks and rewards of ownership of the goods to the customer.
5. The customer has accepted the goods or services, etc.
The Group's right to receive consideration for goods or services that have been transferred to customers is listed as contract assets,
which are set down for impairment on the basis of expected credit losses.
The group's unconditional right to receive consideration from customers is shown as an receivables.
The Group's obligation to transfer goods or services to customers for which it has received their consideration is presented as a
contractual liability.
Different business models of the same kind lead to differences in revenue recognition accounting policies
There is no
40.Government grants
A government grant is a monetary asset or non-monetary asset granted by government without consideration. It shall be recognized
when the company complies with the conditions attaching to the grant and when the company is able to receive the grant.
Assets-related government grant is the government fund obtained by the company for the purpose of long-term assets purchase and
construction or establishment in the other forms. Income-related grants are the grant given by the government apart from the
assets-related grants. If no grant objective indicated clearly in the government documents, the company shall judge it according to
the principle mentioned above.
Where a government grant is in the form of a transfer of monetary asset, it is measured at the amount received. Where a government
grant is made on the basis of fixed amount or conclusive evidence indicates relevant conditions for financial support are met and
expect to probably receive the fund, it is measured at the amount receivable. Where a government grant is in the form of a transfer
of non-monetary asset, it is measured at fair value. If fair value cannot be determined reliably, it is measured at a nominal amount of
RMB1 Yuan.
Government grant are classified as assets-related government grants and income-related grants.
Assets-related government grants are recognized as deferred income and assets are evenly amortized to profit or loss over the useful
life of the related asset.
Any assets are sold, transferred, disposed off or impaired earlier than their useful life expired date, the remaining balance of
deferred income which hasn't been allocated shall be carried forward to the income statement when the assets are disposed off.
Income-related government grants that is a compensation for related expenses or losses to be incurred in subsequent periods are
recognized as deferred income and credited to the relevant period when the related expense are incurred. Government grants
relating to compensation for related expenses or losses already incurred are charged directly to the profit or loss for the period.
Government grants related to daily business, shall be recognized as other income in accordance with business nature, otherwise,
shall be recognized as non-operating expenses.
If the group obtains the discount interest of policy preferential loans, it shall follow the accounting standards according to the
following principles, in the case of either the financial allocation of discount interest funds to the lending bank or the financial
allocation of discount interest funds directly to the group.
(1) If interest discount funds is given to the lending bank, and bank provides loans at a preferential interest rate to the group, the group's
borrowing cost is measured at the actual amount received, according to the loan principal and the preferential interest rate, work out
borrowing expense (or the fair value of the loan is taken as borrowing costs and work out he borrowing expense at effective interest
rate. Any difference between the amount received and FV is recognized as deferred income. Deferred income is amortised by using
effective interest rate method within the loan term period and offset borrowing expense).
(2) If interest discount funds are given to the group directly, the preferential interest shall be offset the borrowing expense.
If any government grant already recognized needs to be returned to the government, the accounting shall be differed according to
the following circumstances:
1) originally recognized as offsetting of related assets' book value, assets book value shall be adjusted,
2) if any deferred income, book value of deferred income shall be offset, excessive portion shall be accounted into income statement,
3) Other situation, it shall be accounted into income statement directly.
41.Deferred tax assets and deferred tax liabilities
The deferred income tax assets or the deferred income tax liabilities should be recognized according to the differences (temporary
difference) between the carrying amount of the assets or liabilities and its tax base. Deferred tax assets shall be respectively
recognised for deductible tax losses that can be carried forward in accordance with tax law requirements for deduction of taxable
income in subsequent years. No deferred tax liabilities shall be recognized for any temporary difference arising from goodwill
initially recognition. No deferred tax assets or liabilities shall be recognized for any difference arising from assets or liabilities
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Wafangdian Bearing Company Limited 2021 Midyear Report
initial recognition on non-business combination with no effect on either accounting profit or taxable profit (or deductible tax loss).
At the balance sheet date, deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to
the period when the asset is realised or liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available to offset the deductible
temporary difference, deductible loss and tax reduction
42. Lease
(1) Accounting treatment of operating leases
Since January 1, 2021, the company in accordance with the Ministry of Finance issued "accounting standards for enterprises no. 21
- leasing" (finance and accounting) [2018] no. 35 to the relevant provisions of, increase the "right to use assets", "lease liability
subjects," on the lease beginning date, as the lessee, the company to the lease confirmation "right to use assets", "lease
liability,Finance lease and operating lease are no longer distinguished. All leases are recognized as entitled assets and lease
liabilities, and depreciation and interest expense are recognized respectively (the interest expense of lease liabilities in each period
of the lease term is calculated according to the fixed cyclical interest rate and recorded into the current profit and loss).
The company's implementation of the new leasing Standards this time for the adoption of transitional policy, the new leasing
standards allow the adoption of two methods: Method 1 is to allow enterprises to adopt retroactive adjustment;Method 2 is to adjust
the amount of retained earnings and other relevant items in the financial statements at the beginning of the year of the first
implementation of this Standard according to the cumulative impact of the first implementation of this Standard, without adjusting
the information of comparable periods.Meanwhile, method 2 provides a number of simplified processing arrangements.
The company adopts the above method 2 in the transitional policy of the criteria and adopts simplified treatment, that is: lease
liabilities are equal to the present value of the remaining lease payments, and the right to use assets are equal to the amount of lease
liabilities and make necessary adjustments.This method will not affect the company's retained earnings at the beginning of 2021.
(1) The right to use the assets refers to the lessee's right to use the leased assets during the lease term, which shall be initially
measured at the cost.
(2) Lease liabilities shall be initially measured at the present value of the outstanding lease payments on the commencement date of
the lease term.
The lessee shall calculate the depreciation of the use-right assets with reference to the relevant depreciation provisions of the
Accounting Standards for Enterprises No. 4 - Fixed Assets, confirm whether the use-right assets have been impaired in accordance
with the provisions of the Accounting Standards for Enterprises No. 8 - Asset impairment, and make accounting treatment for the
identified impairment loss.
(2) Accounting treatment of finance lease
43.Other important accounting policies and accounting estimates
44.Major changes in accounting policies and accounting estimates
(1) Significant accounting policy changes
Applicable Inapplicable
The examination and
The content and reason of accounting policy change note
approval procedures
On December 13, 2018, the Ministry of Finance
(MOF) issued the revised Accounting Standards for
Business Enterprises No. 21 - Leasing (Accounting
Approved by the board of
[2018] No. 35), which requires both domestic and
directors
overseas listed enterprises and overseas listed
enterprises that use IFRS or ACCOUNTING Standards
for Business Enterprises to prepare financial
70
Wafangdian Bearing Company Limited 2021 Midyear Report
statements,As of January 1, 2019;Other enterprises
implementing the accounting standards for Business
Enterprises shall come into force on January 1, 2021.In
accordance with the above notice and the provisions
and requirements of the accounting standards for
Enterprises, the company shall make corresponding
changes to the accounting policy of the original lease.
The items of "right to use assets" and "lease liabilities" will be added.In accordance with the transition policy, the Company has
chosen to simplify its treatment in implementing the new leasing guidelines, without adjusting early 2021 retained earnings and
without adjusting comparable period information.
(2) Significant changes in accounting estimates
Applicable Inapplicable
(3) The first implementation of the new lease standards from 2021 to adjust the first implementation of the financial
statements at the beginning of the year related items
Applicable Inapplicable
Whether it is necessary to adjust the balance sheet at the beginning of the year
Yes No
Consolidated balance sheet
In RMB Yuan
item 2020.12.31 2021.01.01 The adjusted number
Current assets:
Monetary fund 194,152,280.08 194,152,280.08
Settlement provision
Lending money,
Trading financial assets 228,046.00 228,046.00
Derivative financial assets
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
Premiums receivable
Reinsurance accounts
receivable
Reinsurance contract
reserves receivable
Other accounts receivable 14,204,144.25 14,204,144.25
Where: interest receivable
Dividends receivable
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Wafangdian Bearing Company Limited 2021 Midyear Report
Purchase and resale of
financial assets
inventory 615,656,946.30 615,656,946.30
Contract assets
Hold assets for sale
Non-current assets
maturing within one year
Other current assets 24,610,448.93 24,610,448.93
Total current assets 2,424,897,546.24 2,424,897,546.24
Non-current assets:
Issue loans and advance
payments
Creditor's rights
investment
Other debt investment
Long-term receivables
Long-term equity
investment
Investment in other equity
11,926,856.64 11,926,856.64
instruments
Other non-current financial
assets
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
Productive biological
assets
Oil and gas assets
Right of use assets 1,256,680.47 1,256,680.47
Intangible assets 80,725,861.18 80,725,861.18
The development of
spending
goodwill
Long-term deferred
511,188.11 511,188.11
expenses
Deferred tax assets
Other non-current assets
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Wafangdian Bearing Company Limited 2021 Midyear Report
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
Borrowing from the central
bank
Funds borrowed from
Transactional financial
liabilities
Derivative financial
liabilities
Notes payable 274,654,535.65 274,654,535.65
Accounts payable 1,044,801,896.85 1,044,801,896.85
Advance payment
Contract liability 39,456,304.55 39,456,304.55
Sale of repurchase
financial assets
Take deposits and
inter-bank deposits
Acting to buy and sell
securities
Acting as an underwriter of
securities payments
Employee compensation
52,677,141.09 52,677,141.09
payable
Payable taxes 3,688,168.68 3,688,168.68
Other payable 129,476,061.47 129,476,061.47
Where: interest payable 1,041,600.00 1,041,600.00
Dividends payable
Fees and commissions due
Reinsurance accounts
payable
Holding liabilities for sale
Non-current liabilities due
within one year
Other current liabilities 5,129,319.58 5,129,319.58
Total current liabilities 2,219,883,427.87 2,219,883,427.87
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Wafangdian Bearing Company Limited 2021 Midyear Report
Non-current liabilities:
Reserve for insurance
contract
Long-term borrowing
Bonds payable
Where: Preferred stock
Sustainable debt
Lease liability 1,256,680.47 1,256,680.47
Long-term payables 344,974.84 344,974.84
Long-term employee
compensation payable
Estimated debts 39,032,270.91 39,032,270.91
Deferred revenue 59,942,753.08 59,942,753.08
Deferred tax liabilities 734,448.35 734,448.35
Other non-current
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
Other equity instruments
Where: Preferred stock
Sustainable debt
Capital reserves 485,691,050.47 485,691,050.47
Minus: Treasury stocks
Other comprehensive
income
The special reserve
Surplus reserves 136,770,391.01 136,770,391.01
General risk provision
Undistributed profit -211,056,473.59 -211,056,473.59
Total owner's equity
attributable to the parent 814,004,967.89 814,004,967.89
company
Minority equity
Total owner's equity 814,004,967.89 814,004,967.89
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Wafangdian Bearing Company Limited 2021 Midyear Report
Total liabilities and owners'
3,133,942,842.94 3,135,199,523.41
equity
Adjustment fact Sheet
The company's implementation of the new leasing Standards this time for the adoption of transitional policy, the new leasing
standards allow the adoption of two methods: Method 1 is to allow enterprises to adopt retroactive adjustment;Method 2 is to adjust
the amount of retained earnings and other relevant items in the financial statements at the beginning of the year of the first
implementation of this Standard according to the cumulative impact of the first implementation of this Standard, without adjusting
the information of comparable periods.Meanwhile, method 2 provides a number of simplified processing arrangements.
In conjunction with the provisions of the new Lease Criteria, the Board of Directors agreed to implement the new Lease criteria on
January 1, 2021, using the above method 2 as regards the transition policy of the Criteria, with a simplified treatment that the lease
liability is equal to the present value of the remaining lease payments and the use-right asset is equal to the amount of the lease
liability, subject to necessary adjustments.This method will not affect the company's retained earnings at the beginning of 2021.
In accordance with the above provisions, the Company recognizes use-right assets and lease liabilities and recognizes depreciation
and interest expense, respectively, for all leases (except short-term leases and low-value asset leases where the simplified treatment
is chosen) on January 1, 2021.
In accordance with the transition policy, the Company has chosen to simplify its treatment in implementing the new leasing
guidelines, without adjusting early 2021 retained earnings and without adjusting comparable period information.
Parent company balance sheet
In RMB Yuan
Item 2020.12.31 2021.01.01 Adjusted number
Current assets:
Monetary fund 173,606,464.84 173,606,464.84
Trading financial assets 228,046.00 228,046.00
Derivative financial assets
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 accounts receivable 13,357,080.42 13,357,080.42
Where: interest receivable
Dividends receivable
inventory 472,723,348.67 472,723,348.67
Contract assets
Hold assets for sale
Non-current assets maturing within
one year
Other current assets 17,971,682.31 17,971,682.31
Total current assets 2,233,581,249.19 2,233,581,249.19
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Wafangdian Bearing Company Limited 2021 Midyear Report
Non-current assets:
Creditor's rights investment
Other debt investment
Long-term receivables
Long-term equity investment 211,583,897.67 211,583,897.67
Investment in other equity
11,926,856.64 11,926,856.64
instruments
Other non-current financial assets
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
Productive biological assets
Oil and gas assets
Right of use assets 1,256,680.47 1,256,680.47
Intangible assets 64,192,377.21 64,192,377.21
The development of spending
goodwill
Long-term deferred expenses 432,059.78 432,059.78
Deferred tax assets
Other non-current assets
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
Transactional financial liabilities
Derivative financial liabilities
Notes payable 274,654,535.65 274,654,535.65
Accounts payable 845,753,616.99 845,753,616.99
Advance payment
Contract liability 40,196,130.87 40,196,130.87
Employee compensation payable 43,148,413.71 43,148,413.71
Payable taxes 3,395,991.46 3,395,991.46
Other payable 109,599,140.08 109,599,140.08
Where: interest payable 1,041,600.00
Dividends payable
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Wafangdian Bearing Company Limited 2021 Midyear Report
Holding liabilities for sale
Non-current liabilities due within
one year
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:
Long-term borrowing
Bonds payable
Where: Preferred stock
Sustainable debt
Lease liability 1,256,680.47 1,256,680.47
Long-term payables 244,974.84 244,974.84
Long-term employee compensation
payable
Estimated debts 39,032,270.91 39,032,270.91
Deferred revenue 29,380,833.70 29,380,833.70
Deferred tax liabilities
Other non-current liabilities
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
Other equity instruments
Where: Preferred stock
Sustainable debt
Capital reserves 485,678,443.26 485,678,443.26
Minus: Treasury stocks
Other comprehensive income
The special reserve
Surplus reserves 136,770,391.01 136,770,391.01
Undistributed profit -128,677,200.69 -128,677,200.69
Total owner's equity 896,371,633.58 896,371,633.58
Total liabilities and owners' equity 2,957,003,038.79 2,958,259,719.26
Adjustment fact Sheet
The company's implementation of the new leasing Standards this time for the adoption of transitional policy, the new leasing
standards allow the adoption of two methods: Method 1 is to allow enterprises to adopt retroactive adjustment;Method 2 is to adjust
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Wafangdian Bearing Company Limited 2021 Midyear Report
the amount of retained earnings and other relevant items in the financial statements at the beginning of the year of the first
implementation of this Standard according to the cumulative impact of the first implementation of this Standard, without adjusting
the information of comparable periods.Meanwhile, method 2 provides a number of simplified processing arrangements.
In conjunction with the provisions of the new Lease Criteria, the Board of Directors agreed to implement the new Lease criteria on
January 1, 2021, using the above method 2 as regards the transition policy of the Criteria, with a simplified treatment that the lease
liability is equal to the present value of the remaining lease payments and the use-right asset is equal to the amount of the lease
liability, subject to necessary adjustments.This method will not affect the company's retained earnings at the beginning of 2021.
In accordance with the above provisions, the Company recognizes use-right assets and lease liabilities and recognizes depreciation
and interest expense, respectively, for all leases (except short-term leases and low-value asset leases where the simplified treatment
is chosen) on January 1, 2021.
In accordance with the transition policy, the Company has chosen to simplify its treatment in implementing the new leasing
guidelines, without adjusting early 2021 retained earnings and without adjusting comparable period information.
(4) Retrospective adjustment of previous comparative data for the first implementation of the new lease criteria from 2021
Applicable Inapplicable
45.other
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 13%,9%,6%,5%
City construction tax Value-added tax payables 7%
Education surcharge Value-added tax payables 3%
Local education surcharge Value-added tax payables 2%
Enterprise income tax(EIT) Current period taxable profit 15% or 25%
Real estate tax 70% of cost of own property or revenue from leasing property 1.2% or 12%
Land use tax Land using right area RMB 6 per square meter
Notes: EIT rate for different tax payer
Tax principles EIT rate
Wazhou Liaoyang Bearing construction Co.,Ltd 15%
Dalian Wazhou Precision Motor Car Bearing Company Limited 25%
Wazhou Precision of Spherical Roller Bearings(Wafangdian)Co., Ltd 25%
2. Tax preference
78
Wafangdian Bearing Company Limited 2021 Midyear Report
The company obtained the qualification of high and new technology enterprises at 3 December, 2020.The Certificate No is
GR202021200656, and the validity duration is three years. The subsidiary of the Company, Wazhou Liaoyang Bearing
construction Co.,Ltd obtained the qualification of high and new technology enterprises at 15 September, 2020. The Certificate No
is GR202021000550 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.
3.other
VI. Notes to Consolidated Financial Statements
1. Cash and cash in bank
In RMB Yuan
Item Closing Balance Opening Balance
Cash on hand 25,913.68 33,102.75
Bank deposits 194,772,300.48 163,695,697.22
Other monetary funds 19,050,405.69 30,423,480.11
A combined 213,848,619.85 194,152,280.08
2. Tradable financial asset
In RMB Yuan
Item Closing Balance Opening Balance
Financial assets measured at fair value
and whose changes are included in 411,407.31 228,046.00
current profit and loss
Among them:
Among them:
A combined 411,407.31 228,046.00
3. Derivative financial assets
4. Notes receivable
(1) Classifying and listing of notes receivable.
In RMB Yuan
Item Closing Balance Opening Balance
Bank acceptance 552,785,383.26 284,965,612.20
Commercial acceptance bill 67,022,215.00 131,078,966.28
A combined 619,807,598.26 416,044,578.48
In RMB Yuan
Closing Balance Opening Balance
category Provision for bad book book
Book balance Book balance Provision for bad debt
debt value value
79
Wafangdian Bearing Company Limited 2021 Midyear Report
Provisi
proport proporti Provision
amount amount on amount amount
ion on ratio
ratio
Among them:
Notes receivable for
619,80 422,39 416,04
which bad debt 626,159,1 100.00 6,351,5 6,351,58
1.01% 7,598.2 6,159.0 1.50% 4,578.4
provision is drawn 78.85 % 80.59 0.59
6 7 8
by combination
Among them:
619,80 422,39 416,04
626,159,1 100.00 6,351,5 6,351,58
A combined 1.01% 7,598.2 6,159.0 1.50% 4,578.4
78.85 % 80.59 0.59
6 7 8
If the bad debt provision of notes receivable is drawn according to the general model of expected credit loss, please refer to
other receivables disclosure methods to disclose the relevant information of bad debt provision:
Applicable Inapplicable
5. Accounts receivable
(1) Classified disclosure of accounts receivable
In RMB Yuan
Closing Balance Opening Balance
Provision for bad
Book balance Book balance Provision for bad debt
debt
category book book
Provisi
propo value propor Provision value
amount amount on amount amount
rtion tion ratio
ratio
Accounts
receivable with
73,132,7 73,132, 100.00 73,132,75 6.79 73,132, 100.00
bad debt 6.90%
54.28 754.28 % 4.28 % 754.28 %
provision drawn
on a single item
Among them:
Accounts
receivable with a 944,36
973,076, 93.01 28,707, 1,004,373 93.21 28,745, 975,628,
combination of 2.95% 8,834. 2.86%
032.60 % 198.37 ,533.99 % 442.87 091.12
bad debt 23
provisions
Among them:
709,76
-- Aging 738,468, 70.59 28,707, 723,934,3 67.19 28,745, 695,188,
3.89% 1,044. 3.97%
combination 242.98 % 198.37 04.67 % 442.87 861.80
61
-- Combination of 234,607, 22.42 234,60 280,439,2 26.03 280,439,
80
Wafangdian Bearing Company Limited 2021 Midyear Report
related parties 789.62 % 7,789. 29.32 % 229.32
62
101,83 944,36 101,87
1,046,20 100.00 1,077,506 100.0 975,628,
total 9,952.6 8,834. 8,197.1
8,786.88 % ,288.27 0% 091.12
5 23 5
Withdrawal of bad debt provision by single item:
In RMB Yuan
Closing balance
Name Provision for Provision
Book balance Provision for
bad debt ratio
Wafangdian Bearing Group Special Steel Not expected to
5,092,669.00 5,092,669.00 100.00%
Co. LTD recover
Liaoning Yinheng Galvanized Color Not expected to
3,213,308.67 3,213,308.67 100.00%
Coated Steel Plate Co. LTD recover
Not expected to
Shandong Hengji New Material Co., LTD 2,284,666.96 2,284,666.96 100.00%
recover
Shandong Yuanda Board Industry Not expected to
1,804,722.77 1,804,722.77 100.00%
Technology Co., LTD recover
Not expected to
Hesteel Company Limited Handan branch 1,608,611.42 1,608,611.42 100.00%
recover
Not expected to
Angang Steel Company Limited 1,595,050.69 1,595,050.69 100.00%
recover
Not expected to
Liaoning Wa shaft Bearing Sales Co., LTD 1,500,000.00 1,500,000.00 100.00%
recover
Not expected to
Bazhou Tianli Pipe Co., LTD 1,325,600.76 1,325,600.76 100.00%
recover
Not expected to
Zhejiang Yesheng New material Co., LTD 1,301,760.00 1,301,760.00 100.00%
recover
Not expected to
Yingkou Iron & Steel Co. LTD 1,256,973.91 1,256,973.91 100.00%
recover
Not expected to
Sichuan Southwest Stainless Steel Co. LTD 1,241,333.17 1,241,333.17 100.00%
recover
Not expected to
Citic Heavy Industrial Machinery Co. LTD 1,137,600.00 1,137,600.00 100.00%
recover
Henan Taihang Vibration Machinery Co., Not expected to
989,207.41 989,207.41 100.00%
LTD recover
Not expected to
Donghai New Material Co., LTD 942,558.20 942,558.20 100.00%
recover
Shanghai Jieru Heavy Machinery Not expected to
923,603.80 923,603.80 100.00%
equipment Co., LTD recover
81
Wafangdian Bearing Company Limited 2021 Midyear Report
Not expected to
Tangshan Guofeng Iron & Steel Co. LTD 883,297.41 883,297.41 100.00%
recover
China second heavy machinery Group
Not expected to
(Deyang) Wanxin Engineering Equipment 795,887.92 795,887.92 100.00%
recover
Co., LTD
Benxi Beiying Iron & Steel (Group) Co. Not expected to
775,804.98 775,804.98 100.00%
LTD recover
Not expected to
Bengang Steel Plates Co., Ltd 770,000.00 770,000.00 100.00%
recover
Materials Branch of North Heavy Industry Not expected to
739,585.80 739,585.80 100.00%
Group Co. LTD recover
Shandong Yuntong New Material Not expected to
711,438.94 711,438.94 100.00%
Technology Co., LTD recover
Not expected to
Dongfeng Motor Transmission Co. LTD 704,098.23 704,098.23 100.00%
recover
Not expected to
Heilongjiang Longmei Logistics Co. LTD 692,070.49 692,070.49 100.00%
recover
Shanghai Weiqiang Heavy Machinery Co., Not expected to
673,595.42 673,595.42 100.00%
LTD recover
Not expected to
Dalian Tianyuan Motor Co., LTD 666,383.31 666,383.31 100.00%
recover
Wolong Electric Huaian Qingjiang Motor Not expected to
598,873.78 598,873.78 100.00%
Co., LTD recover
Qiqihar No.2 Machine Tool (Group) Co. Not expected to
551,450.03 551,450.03 100.00%
LTD recover
Xi 'an Jossbo Hydraulic Engineering Co. Not expected to
514,938.87 514,938.87 100.00%
LTD recover
Gaotang Lvyin Environmental Protection Not expected to
477,691.81 477,691.81 100.00%
Technology Co., LTD recover
Not expected to
Mudanjiang city speed reducer Factory 467,905.65 467,905.65 100.00%
recover
Hunan Chaoyang Electromechanical Co., Not expected to
446,627.60 446,627.60 100.00%
LTD recover
Not expected to
Liaoyang Sudong Trading Company 444,946.96 444,946.96 100.00%
recover
Not expected to
Xiangtan Motor Co., LTD 416,549.65 416,549.65 100.00%
recover
Not expected to
Baoji Faithful Industry and Trade Co., LTD 374,594.68 374,594.68 100.00%
recover
Boshan Motor Factory Group Co., LTD 373,700.65 373,700.65 100.00% Not expected to
82
Wafangdian Bearing Company Limited 2021 Midyear Report
recover
Not expected to
Xuzhou XCMG Material Supply Co., LTD 373,237.55 373,237.55 100.00%
recover
Qingdao Double star Tyre Industry Co., Not expected to
371,251.58 371,251.58 100.00%
LTD recover
Not expected to
Shandong Quanlin Group Co. LTD 370,734.92 370,734.92 100.00%
recover
Not expected to
Minmetals Yingkou Plate Co. LTD 365,064.61 365,064.61 100.00%
recover
Not expected to
Tai 'an Tianhua trade Co., LTD 364,189.79 364,189.79 100.00%
recover
Tangshan Huahang Electromechanical Not expected to
362,498.40 362,498.40 100.00%
chuangxian Equipment Co., LTD recover
Not expected to
Liaohe Machinery Factory 362,280.30 362,280.30 100.00%
recover
Not expected to
Shandong Kerui Steel Plate Co. LTD 357,290.00 357,290.00 100.00%
recover
Guangzhou Supplies section of China
Not expected to
Railway Guangzhou Bureau Group Co., 340,000.00 340,000.00 100.00%
recover
LTD
Not expected to
Yichang Guocheng Coating plate Co., LTD 339,600.00 339,600.00 100.00%
recover
Not expected to
Shantui Construction Machinery Co., Ltd. 325,867.86 325,867.86 100.00%
recover
Shandong tancheng new Asia light industry Not expected to
318,488.87 318,488.87 100.00%
machinery limited company recover
Beiman Special Steel Co. LTD of Northeast Not expected to
315,004.72 315,004.72 100.00%
Special Steel Group recover
Taicang Hutai Chang 'e Papermaking Not expected to
310,361.32 310,361.32 100.00%
Equipment Co. LTD recover
Shandong Quelin Straw Comprehensive Not expected to
307,409.46 307,409.46 100.00%
Utilization Co., LTD recover
Panzhihua Group Chengdu Iron & Steel Not expected to
303,305.45 303,305.45 100.00%
Co. LTD recover
Harbin Haoke Electric Power Technology Not expected to
303,005.32 303,005.32 100.00%
Co. LTD recover
Not expected to
Hebei Jinxi Iron & Steel Group Co. LTD 298,307.04 298,307.04 100.00%
recover
Wazhuan Group Liaoyang bearing
Not expected to
Manufacturing Co., LTD bearing sales 294,203.05 294,203.05 100.00%
recover
Branch
83
Wafangdian Bearing Company Limited 2021 Midyear Report
Not expected to
Sinoma Zibo Heavy Machinery Co., LTD 293,817.58 293,817.58 100.00%
recover
Not expected to
Jiangsu Xinrui Gear System Co., LTD 286,949.88 286,949.88 100.00%
recover
Erzhong Group (Deyang) Jingheng Not expected to
286,935.03 286,935.03 100.00%
Transmission Equipment Co., LTD recover
Not expected to
Xingtai Iron & Steel Co. LTD 285,834.67 285,834.67 100.00%
recover
Hegang Star Mechanical and electrical Not expected to
285,313.50 285,313.50 100.00%
Equipment Manufacturing Co. LTD recover
Not expected to
Shanxi Taigang Stainless Steel Co.,Ltd 283,936.85 283,936.85 100.00%
recover
Not expected to
Shandong Guanpeng Metal Sheet Co., LTD 273,748.84 273,748.84 100.00%
recover
Baotou Tianli Huanfa Mechanical and Not expected to
273,597.67 273,597.67 100.00%
Electrical Co., LTD recover
Not expected to
Baoji Loyalty Machine Tool Co., LTD 269,908.74 269,908.74 100.00%
recover
Not expected to
Jiangsu Dazhong Electric Co., LTD 257,662.90 257,662.90 100.00%
recover
Not expected to
Korla railway supplies section 256,044.10 256,044.10 100.00%
recover
Not expected to
Zhuzhou Gear Co., LTD 254,604.07 254,604.07 100.00%
recover
Not expected to
Jiamusi Electric Motor Co., LTD 245,000.00 245,000.00 100.00%
recover
Zibo Boshan Qianjin reducer Factory Co., Not expected to
244,579.32 244,579.32 100.00%
LTD recover
Not expected to
Indonesia CV.SIDO Company 243,676.52 243,676.52 100.00%
recover
Not expected to
Tonghua Iron & Steel Co. LTD 240,568.39 240,568.39 100.00%
recover
Shijiazhuang Qiangda slurry pump Co. Not expected to
238,749.98 238,749.98 100.00%
LTD recover
Not expected to
Ningbo Fan Co., LTD 238,487.84 238,487.84 100.00%
recover
Shenyang Jingxin Remanufacturing Co., Not expected to
236,705.64 236,705.64 100.00%
LTD recover
Not expected to
Siemens Motors (China) Co., LTD 228,831.20 228,831.20 100.00%
recover
84
Wafangdian Bearing Company Limited 2021 Midyear Report
Not expected to
Yichang Jiandao Trading Co., LTD 226,995.16 226,995.16 100.00%
recover
Anshan Heavy Duty Mining Machinery Not expected to
216,819.90 216,819.90 100.00%
Co., Ltd. recover
Not expected to
Heavy coal Machine Co. LTD 215,142.12 215,142.12 100.00%
recover
Qinhuangdao Shouqin Metal Material Co., Not expected to
213,911.48 213,911.48 100.00%
LTD recover
Liaoning Renda Equipment Technology Not expected to
211,464.69 211,464.69 100.00%
Co., LTD recover
CRRC Shenyang Locomotive & Rolling Not expected to
205,145.45 205,145.45 100.00%
stock Co. LTD recover
Not expected to
Panzhihua Vanadium Steel Co., LTD 203,004.70 203,004.70 100.00%
recover
Taizhou Luqiao Meitian Motorcycle Co., Not expected to
200,562.00 200,562.00 100.00%
LTD recover
Tianjin Rongtai New composite Material Not expected to
200,000.00 200,000.00 100.00%
Co., LTD recover
Hangzhou Qianjin Gear Box Group Co., Not expected to
199,832.70 199,832.70 100.00%
LTD recover
Not expected to
Hebei Wenfeng Iron & Steel Co. LTD 197,979.65 197,979.65 100.00%
recover
Suzhou Prospect Mechanical and Electrical Not expected to
192,173.26 192,173.26 100.00%
Equipment Co. LTD recover
Not expected to
Guangzhou Motor Factory 189,128.68 189,128.68 100.00%
recover
Hubei Wa Axis Xin Sheng Technology Co., Not expected to
188,136.00 188,136.00 100.00%
LTD recover
Not expected to
Handan Sida Motor Co., LTD 186,191.80 186,191.80 100.00%
recover
Not expected to
Nanjing Light Industrial Machinery Factory 185,079.54 185,079.54 100.00%
recover
Jiangsu Suye Heavy Industry Machinery Not expected to
184,530.46 184,530.46 100.00%
Manufacturing Co. LTD recover
Shanxi Sente coal coking Engineering Not expected to
182,700.00 182,700.00 100.00%
Group Co., LTD. Wenxi Branch recover
Not expected to
Huichang Red Lion Cement Co. LTD 181,644.58 181,644.58 100.00%
recover
Not expected to
Gulf World Trading Corporation of India 179,376.85 179,376.85 100.00%
recover
85
Wafangdian Bearing Company Limited 2021 Midyear Report
Huaibei Mining (group) coal industry Not expected to
178,580.44 178,580.44 100.00%
Limited liability company materials branch recover
Not expected to
Shanghai Sule Textile Machinery Co., LTD 176,984.10 176,984.10 100.00%
recover
Not expected to
Shijiazhuang Electric Machinery Co., LTD 172,543.31 172,543.31 100.00%
recover
Not expected to
Jiamusi Coal Mine Machinery Co. LTD 171,288.78 171,288.78 100.00%
recover
Xuzhou Sinoma Equipment Heavy Not expected to
170,930.05 170,930.05 100.00%
Machinery Co. LTD recover
Not expected to
Changsha Motor Factory Co. LTD 170,295.76 170,295.76 100.00%
recover
Austria Andritz Technology Co., LTD. Not expected to
166,787.14 166,787.14 100.00%
(Foshan) recover
Not expected to
Xuzhou Meici Bridge Co., LTD 163,037.45 163,037.45 100.00%
recover
Shanghai Zhongli Machinery Not expected to
161,388.95 161,388.95 100.00%
Manufacturing Co., LTD recover
Not expected to
Foshan Ketai Electromechanical Co., LTD 160,772.79 160,772.79 100.00%
recover
Not expected to
Siping blower Co., LTD 160,053.21 160,053.21 100.00%
recover
Not expected to
Anyang Coal mine Motor Factory 159,537.60 159,537.60 100.00%
recover
Dalian Hongyun Transmission Technology Not expected to
158,972.00 158,972.00 100.00%
Development Co., LTD recover
Not expected to
Shanxi Motor Factory 158,021.97 158,021.97 100.00%
recover
Not expected to
Shenhua Materials Group Co. LTD 155,115.29 155,115.29 100.00%
recover
Not expected to
Hubei All-out Machinery Group Co. LTD 152,489.82 152,489.82 100.00%
recover
Guangdong Zhaoqing Jialong Packaging Not expected to
150,313.94 150,313.94 100.00%
Machinery Group Co. LTD recover
Not expected to
Wuxi Yutong Bearing Co., LTD 149,427.42 149,427.42 100.00%
recover
Yixing Chaoqun Machinery equipment Co., Not expected to
138,484.00 138,484.00 100.00%
LTD recover
Zhejiang Tongli Heavy Machinery Not expected to
133,670.00 133,670.00 100.00%
Manufacturing Co., LTD recover
86
Wafangdian Bearing Company Limited 2021 Midyear Report
Not expected to
China First Heavy Industry Group Co. LTD 132,135.01 132,135.01 100.00%
recover
Kunming Electric Machinery Factory Co. Not expected to
131,455.02 131,455.02 100.00%
LTD recover
Not expected to
Jiangsu Gangyi Heavy Industry Co., LTD 129,036.10 129,036.10 100.00%
recover
Guilin Hongcheng Mining equipment Not expected to
127,032.49 127,032.49 100.00%
Manufacturing Co. LTD recover
Not expected to
Shanghai Sule Textile Machinery Co., LTD 126,752.70 126,752.70 100.00%
recover
Guangxi Beibu Gulf New Material Co., Not expected to
126,353.69 126,353.69 100.00%
LTD recover
Shenyang Qunding Machinery Equipment Not expected to
126,286.35 126,286.35 100.00%
Co., LTD recover
Tangshan Dunshi Machinery Not expected to
124,474.60 124,474.60 100.00%
Manufacturing Co. LTD recover
Shenyang Machine Tool (Group) Co., LTD. Not expected to
124,002.02 124,002.02 100.00%
Precision CNC Machine Tool Branch recover
Nantong Hengrong machine pump Factory Not expected to
123,407.18 123,407.18 100.00%
Co., LTD recover
Guangxi Tianyang Huami Paper Industry Not expected to
122,629.00 122,629.00 100.00%
Co., LTD recover
Not expected to
Taiyuan Heavy Industry Co. LTD 121,560.19 121,560.19 100.00%
recover
Zhejiang RIFA Precision Machinery Not expected to
120,214.46 120,214.46 100.00%
Co.,Ltd. recover
China Railway Materials Shenyang Not expected to
115,750.43 115,750.43 100.00%
Company recover
Not expected to
Wuhan Aotebi Motor Co., LTD 115,009.60 115,009.60 100.00%
recover
Wuxi Computer Numerical Control Co., Not expected to
114,412.20 114,412.20 100.00%
LTD recover
John Deere Jia Lian harvesting Machinery Not expected to
114,127.98 114,127.98 100.00%
Co. LTD recover
Not expected to
Nantong Motor Factory 113,634.74 113,634.74 100.00%
recover
Not expected to
Qinhuangdao Huayye Motor Co., LTD 111,564.44 111,564.44 100.00%
recover
Shandong Baoding Coal and Coking Co. Not expected to
110,528.29 110,528.29 100.00%
LTD recover
87
Wafangdian Bearing Company Limited 2021 Midyear Report
Shenyang SAIC Jinbei Automobile Not expected to
109,908.15 109,908.15 100.00%
Transmission Co., LTD recover
Not expected to
Dalian Dalma Motor Co., LTD 109,553.86 109,553.86 100.00%
recover
Not expected to
Orient Iron & Steel Co. LTD 108,997.44 108,997.44 100.00%
recover
Yingkou Jia Chen Burning chemical Co., Not expected to
108,451.55 108,451.55 100.00%
LTD recover
Not expected to
Tongchuan explosion-proof motor Factory 105,476.07 105,476.07 100.00%
recover
China Pingcoal what energy chemical Not expected to
104,296.17 104,296.17 100.00%
group Limited liability company recover
Jilin Jiaohe coal machine Manufacturing Not expected to
102,965.96 102,965.96 100.00%
Co. LTD recover
Not expected to
DBI Corporation of America 102,568.64 102,568.64 100.00%
recover
Changchun Power Generation Equipment Not expected to
100,536.11 100,536.11 100.00%
Co. LTD recover
Not expected to
The total of other individual items 12,676,958.90 12,676,958.90 100.00%
recover
Total 73,132,754.28 73,132,754.28 -- --
If the accounts receivable bad debt provision is drawn according to the general model of expected credit loss, please refer to other
receivables disclosure methods to disclose the relevant information of bad debt provision:
Applicable Inapplicable
Disclosure by age
In RMB Yuan
age Closing balance
Within 1 year (including 1 year) 882,813,012.05
1 to 2 years 63,214,142.86
2 to 3 years 17,777,160.64
More than 3 years 82,404,471.33
3 to 4 years 29,454,636.22
4 to 5 years 15,247,533.02
More than 5 years 37,702,302.09
A combined 1,046,208,786.88
(2) Bad debt provisions drawn, collected or transferred back in the current period
Provision for bad debts in the current period:
In RMB Yuan
88
Wafangdian Bearing Company Limited 2021 Midyear Report
Current change amount
Opening Closing
category To withdraw or Cancel after
balance provision other balance
reverse verification
Provision for
101,878,197.15 30,000.00 8,244.50 101,839,952.65
bad debt
A combined 101,878,197.15 30,000.00 8,244.50 101,839,952.65
(3) accounts receivable actually written off in the current period
(4) The top five accounts receivable according to the ending balance collected by the debtor
In RMB Yuan
Ending balance of accounts The proportion of total ending Ending balance of allowance
Name
receivable balance of accounts receivable for bad debts
Customer 1 104,686,090.70 10.01%
Customer 2 32,769,278.70 3.13% 289,421.32
Customer 3 21,503,960.05 2.06% 217,113.29
Customer 4 15,438,858.26 1.48% 143,494.39
Customer 5 15,348,753.77 1.47% 105,384.95
combined 189,746,941.48 18.15%
6. Receivables financing
In RMB Yuan
project Closing balance Opening balance
Bank acceptance 71,227,468.25 72,593,534.75
Commercial acceptance bill 58,353,051.11 58,007,010.84
total 129,580,519.36 130,600,545.59
Changes in the amount of receivables financing in the current period and changes in fair value
Applicable Inapplicable
If the impairment provision of receivables financing is drawn in accordance with the general model of expected credit loss, please
refer to other receivables disclosure methods to disclose the relevant information of impairment provision:
Applicable Inapplicable
Other notes:
7. Payment in advance
(1) Payment in advance shall be shown according to the age of the account
In RMB Yuan
Closing balance Opening balance
aging
account ratio account ratio
Within 1 year 19,201,686.83 87.06% 52,189,932.41 97.06%
89
Wafangdian Bearing Company Limited 2021 Midyear Report
1 to 2 years 1,291,112.30 5.85% 1,297,764.53 2.41%
2 to 3 years 1,464,721.71 6.64% 284,768.55 0.53%
More than 3 years 98,138.27 0.44%
A combined 22,055,659.11 -- 53,772,465.49 --
(2) The advance payments of the top five in the closing balance collected by the prepaid object
name Closing balance age Proportion to total balance
of prepayments at year-end
(%)
Wafangdian Bearing Precision Forging co. 9,800,439.22 Within a year 44.44
LTD
Fushun Special Steel Co. LTD 6,035,186.31 Within a year 27.36
Wafangdian Far East Bearing Co., LTD 1,500,000.00 Within a year 6.80
Dalian Xiangrui Railway Equipment Co. LTD 1,500,000.00 Within a year 6.80
Zhejiang RIFA Precision Machinery Co.,Ltd. 1,164,000.00 Within a year 5.28
A combined 18,835,625.53 —— 85.40
8. Other receivables
In RMB Yuan
item Closing balance Opening balance
Other receivables 11,290,749.69 14,204,144.25
total 11,290,749.69 14,204,144.25
(1) Interest receivable
(2) Dividends receivable
(3) Other accounts receivable
2) Provision for bad debts
In RMB Yuan
The first stage The second stage The third stage
Provision for bad debt Expected credit Expected credit loss for Expected credit loss for
Total
losses over the next the entire duration (no the entire duration (credit
12 months credit impairment occurs) impairment incurred)
Balance as of January
7,169,695.56 7,169,695.56
1, 2021
January 1, 2021
balance in current —— —— —— ——
period
Balance on June 30,
7,169,695.56 7,169,695.56
2021
Loss provision Changes in current period significant changes in book balance
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Wafangdian Bearing Company Limited 2021 Midyear Report
Applicable Inapplicable
Disclosure by age
In RMB Yuan
age Closing balance
Within 1 year (including 1 year) 10,005,901.50
1 to 2 years 799,115.02
2 to 3 years 269,000.84
More than 3 years 7,386,427.89
3 to 4 years 325,917.88
4 to 5 years 1,487,646.00
More than 5 years 5,572,864.01
A combined 18,460,445.25
3) Bad debt provisions drawn, collected or transferred back in the current period
Provision for bad debts in the current period:
In RMB Yuan
Current change amount
Closing Closing
category To withdraw or Cancel after
balance provision other balance
reverse verification
Other accounts
receivable bad 7,169,695.56 7,169,695.56
debt provision
total 7,169,695.56 7,169,695.56
9. inventory
Whether companies are required to comply with disclosure requirements in the real estate industry
no
(1) Inventory classification
In RMB Yuan
Closing balance Opening balance
Provision for Provision for
inventory inventory
project decline or decline or
Book balance impairment of The book value Book balance impairment of The book value
contract contract
performance performance
cost cost
The raw
83,181,077.78 5,904,690.57 77,276,387.21 78,227,553.26 9,089,557.91 69,137,995.35
materials
In the product 32,840,859.15 377,941.98 32,462,917.18 27,387,906.76 421,834.87 26,966,071.89
91
Wafangdian Bearing Company Limited 2021 Midyear Report
Inventory
718,309,340.62 203,236,563.05 515,072,777.57 648,144,216.90 263,961,842.93 384,182,373.97
goods
Send goods 62,336,535.71 62,336,535.71 73,801,865.07 73,801,865.07
Homemade
semi-finished 101,140,235.07 27,286,413.30 73,853,821.76 91,906,231.80 30,455,364.33 61,450,867.47
product
Low value
consumables 123,375.55 123,375.55 117,772.55 117,772.55
and packaging
Total 997,931,423.88 236,805,608.90 761,125,814.98 919,585,546.34 303,928,600.04 615,656,946.30
(2) Reserve for inventory decline and reserve for impairment of contract performance cost
In RMB Yuan
Current increase Current reduction
Opening Closing
project turn back or
balance provision other other balance
sell
The raw
9,089,557.91 3,184,867.34 5,904,690.57
materials
In the product 421,834.87 43,892.89 377,941.98
Inventory
263,961,842.93 60,725,279.88 203,236,563.05
goods
Homemade
semi-finished 30,455,364.33 3,168,951.03 27,286,413.30
product
A combined 303,928,600.04 67,122,991.14 236,805,608.90
10. Contract assets
11. Hold assets for sale
12. Non-current assets due within one year
13. Other current assets
In RMB Yuan
project Closing balance Opening balance
VAT to be deducted 10,712,609.56 24,517,849.43
VAT to be certified 92,599.50
A combined 10,712,609.56 24,610,448.93
14. Debt investment
15. Other debt investment
16. Long-term receivables
17. Long-term equity investment
18. Investment in other equity instruments
92
Wafangdian Bearing Company Limited 2021 Midyear Report
In RMB Yuan
project Closing balance Opening balance
Shanghai Amyi Electromechanical
2,000,000.00 2,000,000.00
Equipment Chain Co., LTD
Qian 'an Zhanyi Iron and Steel Group
2,503,766.95 2,503,766.95
Co. LTD
Dalian Longhui Industry and Trade Co.,
7,423,089.69 7,423,089.69
LTD
A combined 11,926,856.64 11,926,856.64
19. Other non-current financial assets
20.Investment real estate
(1) Investment real estate using the cost measurement model
Applicable Inapplicable
In RMB Yuan
Projects under
project House, building Land use right total
construction
I. the original book value
1. Opening balance 171,156,035.71 49,954,300.64 221,110,336.35
2. Increase in the current
11,222,201.84 0.00 11,222,201.84
period
(1) Outsourcing 11,222,201.84 0.00 11,222,201.84
(2) Inventory/fixed
assets/construction in 0.00 0.00
progress transfer
(3) Increased business
0.00 0.00
mergers
3. Reduced amount in the
30,263,620.49 0.00 30,263,620.49
current period
(1) Disposal 30,263,620.49 0.00 30,263,620.49
(2) Other roll out 0.00 0.00 0.00
4. Ending balance 152,114,617.06 49,954,300.64 202,068,917.70
II.Accumulated
depreciation and
accumulated amortization
1. Opening balance 86,016,869.91 17,576,984.05 103,593,853.96
2. Increase in the current
1,864,052.43 624,421.15 2,488,473.58
period
(1) Provision or 1,864,052.43 624,421.15 2,488,473.58
93
Wafangdian Bearing Company Limited 2021 Midyear Report
amortization
3. Reduced amount in the
19,472,689.56 19,472,689.56
current period
(1) Disposal 19,472,689.56 0.00 19,472,689.56
(2) Other roll out 0.00 0.00
4. Ending balance 68,408,232.78 18,201,405.20 86,609,637.98
III.Provision for
impairment
1. Opening balance
2. Increase in the current
period
(1) Withdrawal
3. Reduced amount for the
current period
(1) Disposal
(2) Other roll out
4. Ending balance
Iv. Book value
1. Closing book value 83,706,384.28 31,752,895.44 115,459,279.72
2. Starting book value 85,139,165.80 32,377,316.59 117,516,482.39
21. Fixed assets
In RMB Yuan
project Closing balance Opening balance
Fixed assets 402,752,098.78 474,109,923.22
A combined 402,752,098.78 474,109,923.22
(1) Fixed assets
In RMB Yuan
Machine Transport Electronic Other
item House building Total
equipment equipment equipment equipment
I.the original
book value:
1. Opening 1,049,807,784. 1,602,127,782.
264,336,605.71 14,509,177.09 62,291,443.33 211,182,772.67
balance 12 92
2. Increase in the
1,400,044.53 5,339,468.57 869,179.30 59,929.73 7,668,622.13
current period
(1) Purchase 1,400,044.53 1,772,054.13 807,431.83 10,424.78 3,989,955.27
(2) Transfer of 3,567,414.44 61,747.47 49,504.95 3,678,666.86
94
Wafangdian Bearing Company Limited 2021 Midyear Report
construction
under
construction
(3) Increased
business mergers
3. Reduced
amount in the 3,509,725.64 86,804,654.10 807,877.78 2,201,604.08 512,259.91 93,836,121.51
current period
(1) Disposal or
3,509,725.64 86,804,654.10 807,877.78 2,201,604.08 512,259.91 93,836,121.51
scrapping
1,515,960,283.
4. Ending balance 262,226,924.60 968,342,598.59 13,701,299.31 60,959,018.55 210,730,442.49
54
II.Accumulated
depreciation
1. Opening 1,099,685,693.
179,069,027.56 688,715,910.19 12,767,249.79 50,886,574.18 168,246,931.93
balance 65
2. Increase in the
7,335,848.37 25,740,377.47 225,605.31 1,449,538.65 2,879,045.97 37,630,415.77
current period
(1) Withdrawal 7,335,848.37 25,705,228.55 225,605.31 1,449,538.65 2,879,045.97 37,595,266.85
(2) Other
35,148.92 35,148.92
transfers
3. Reduced
amount in the 3,508,921.12 38,529,748.41 786,797.03 2,128,006.10 460,079.10 45,413,551.76
current period
(1) Disposal or
3,508,921.12 38,529,748.41 786,797.03 2,128,006.10 460,079.10 45,413,551.76
scrapping
1,091,902,557.
4. Ending balance 182,895,954.81 675,926,539.25 12,206,058.07 50,208,106.73 170,665,898.80
66
III.Provision for
impairment
1. Opening
19,879,546.61 1,648.28 621,345.40 7,829,625.76 28,332,166.05
balance
2. Increase in the
current period
(1) Withdrawal
3. Reduced
amount in the 7,000,183.37 1,648.28 24,707.30 7,026,538.95
current period
(1) Disposal or 7,000,183.37 1,648.28 24,707.30 7,026,538.95
95
Wafangdian Bearing Company Limited 2021 Midyear Report
scrapping
4. Ending balance 12,879,363.24 596,638.10 7,829,625.76 21,305,627.10
Iv. Book value
1. Closing book
79,330,969.79 279,536,696.10 1,495,241.24 10,154,273.72 32,234,917.93 402,752,098.78
value
2. Starting book
85,267,578.15 341,212,327.32 1,740,279.02 10,783,523.75 35,106,214.98 474,109,923.22
value
(2) Temporary idle fixed assets
In RMB Yuan
The original value Accumulated
project Impairment loss The book value note
of the book depreciation
Machinery and
48,248,051.62 26,970,764.43 13,668,599.30 7,608,687.89
equipment
Transportation
equipment
Electronic
855,496.06 587,414.96 243,291.78 24,789.32
equipment
Other equipment 600,378.22 434,984.85 152,525.41 12,867.96
A combined 49,703,925.90 27,993,164.24 14,064,416.49 7,646,345.17
(3) Fixed assets leased through operating leases
In RMB Yuan
project Closing book value
House building 28,887,099.75
Machinery and equipment 79,721,126.69
The means of transport 130,766.74
Electronic equipment 2,175,815.79
Other equipment 614,515.86
A combined 111,529,324.83
(4) The fixed assets without the title certificate
In RMB Yuan
The reason why the title certificate is not
project The book value
completed
Dalian tile shaft precision motor Property ownership certificate
32,237,075.69
automobile bearing workshop procedures complete, in the process
Comprehensive acceptance is being
Main plant of Liao Axle Company 6,446,920.14
handled for the record
96
Wafangdian Bearing Company Limited 2021 Midyear Report
Comprehensive acceptance is being
Liao Axis Company office building 2,620,732.34
handled for the record
Comprehensive acceptance is being
Liao axle driver processing workshop 1,166,835.07
handled for the record
Comprehensive acceptance is being
Liao Axis company staff canteen 805,672.21
handled for the record
22.Construction in progress
In RMB Yuan
project The ending balance Beginning balance
Projects under construction 24,348,551.06 24,254,985.16
A combined 24,348,551.06 24,254,985.16
(1) Construction in progress
In RMB Yuan
The ending balance Beginning balance
Item Book Impairment Impairment
The book value Book balance The book value
balance loss loss
Qi finished
products 4,434,526.90 3,468,712.79 965,814.11 5,294,384.87 3,468,712.79 1,825,672.08
transform
Precision bearing
factory 3,741,698.76 3,741,698.76 4,221,142.02 4,221,142.02
transformation
Factory
826,926.61 826,926.61 1,659,638.56 1,659,638.56
renovation Project
Railway
489,555.58 489,555.58 1,758,204.72 1,758,204.72
reconstruction
Precision rolling
body 0.00 0.00 1,189,745.29 1,189,745.29
transformation
Dalian Industrial
5,590.46 5,590.46 1,822,184.00 1,822,184.00
Park Project
Grinding
38,957.26 38,957.26 1,774,704.65 1,774,704.65
production line
Super precision
machine 297,546.02 297,546.02 540,528.68 540,528.68
installation project
Large scale
7,597,921.08 7,597,921.08 1,635,330.51 1,635,330.51
renovation project
Grinding machine 169.19 169.19 376,403.13 376,403.13
97
Wafangdian Bearing Company Limited 2021 Midyear Report
modification
The crane project 255,382.52 255,382.52 255,382.52 255,382.52
Computer
184,075.24 184,075.24 184,075.24 184,075.24
engineering
Secondary
finished product 265,486.74 265,486.74
modification
Overhaul branch
factory 141,423.05 141,423.05 176,772.70 176,772.70
transformation
Channel 2
construction 259,161.89 259,161.89
project
other 9,538,004.44 9,538,004.44 6,576,039.17 6,576,039.17
27,817,263.8
A combined 3,468,712.79 24,348,551.06 27,723,697.95 3,468,712.79 24,254,985.16
5
(2) Changes of important construction projects under construction in this period
In RMB Yuan
98
Wafangdian Bearing Company Limited 2021 Midyear Report
Amount of Other Proportion of
Among them: Capitalizati
fixed assets reduced cumulative Progress Accumulated Sources
Beginning Current The ending the amount of on rate of
The project name Budget number transferred in amounts in project of the capitalization of
balance increase balance capitalization of current
the current the current investment in project of interest funding
current interest interest
period period budget
Railway
14,472,691.67 1,758,204.72 247,787.60 828,162.03 23,076.92 1,154,753.37 97.75% 97.75 90,837.36 other
reconstruction
Qi finished products
107,106,101.50 5,294,384.87 859,857.97 4,434,526.90 53.92% 53.92 656,478.24 other
transform
Precision rolling
27,209,771.00 1,189,745.29 831,809.07 357,936.22 51.21% 51.21 1,203,099.87 other
body transformation
Precision bearing
factory 5,500,815.00 4,221,142.02 498,230.08 243,870.45 4,475,501.65 91.43% 91.43 other
transformation
Dalian Industrial
39,164,803.61 1,822,184.00 1,816,593.54 5,590.46 21.04% 21.04 35,839.06 other
Park Project
Car modification 2,302,350.00 77.91% 77.91 435.23 other
Overhaul branch
factory 2,513,380.00 176,772.70 102,477.88 23,076.92 51,217.90 18.80% 18.8 204.04 other
transformation
Large scale 6,852,230.
8,493,800.00 1,635,330.51 653,275.87 7,834,284.72 92.23% 92.23 33,034.11 other
renovation project 08
16,097,764.1 7,598,247.
total 206,763,712.78 5,336,046.81 46,153.84 18,313,811.22 -- -- 2,019,927.91 --
1 76
99
Wafangdian Bearing Company Limited 2021 Midyear Report
23. Productive biological assets
24. Oil and gas assets
Applicable Inapplicable
25. Right to use assets
In RMB Yuan
project House lease total
1. Opening balance 1,256,680.47 1,256,680.47
4. Ending balance 1,256,680.47 1,256,680.47
2. Increase in the current period 246,838.56 246,838.56
(1) Withdrawal 246,838.56 246,838.56
1. Closing book value 1,009,841.91 1,009,841.91
2. Starting book value 1,256,680.47 1,256,680.47
26. Intangible assets
(1) Intangible assets
Item Land use right patent right Non-patented technology total
I.the original book value
1. Opening balance 126,235,427.10 6,553,383.89 132,788,810.99
2. Increase in the current
period
(1) Purchase
(2) Internal research and
development
(3) Increased business
mergers
3. Reduced amount in the
current period
(1) Disposal
4. Ending balance 126,235,427.10 6,553,383.89 132,788,810.99
II. cumulative amortization
1. Opening balance 45,647,605.97 6,415,343.84 52,062,949.81
2. Increase in the current
1,570,332.68 35,601.78 1,605,934.46
period
(1) Withdrawal 1,570,332.68 35,601.78 1,605,934.46
3. Reduced amount in the
current period
(1) Disposal
4. Ending balance 47,217,938.65 6,450,945.62 53,668,884.27
100
Wafangdian Bearing Company Limited 2021 Midyear Report
III.Provision for impairment
1. Opening balance
2. Increase in the current
period
(1) Withdrawal
3. Reduced amount in the
current period
(1) Disposal
4. Ending balance
Iv. Book value 79,017,488.45 102,438.27 79,119,926.72
1. Closing book value 79,017,488.45 102,438.27 79,119,926.72
2. Starting book value 80,587,821.13 138,040.05 80,725,861.18
27. Development expenditure
28, goodwill
29. Long-term deferred expenses
In RMB Yuan
Amortized amount
Beginning Current Other reduced The ending
project of the current
balance increase amount balance
period
Shanghai agency housing
237,346.08 33,915.18 203,430.90
ownership
Amortization of floor
coating and maintenance
for the first and second
152,329.88 76,164.96 76,164.92
joint factory building in
new Industrial District of
Wa Axis Group
Amortization of heating
79,128.33 27,927.90 51,200.43
overhaul costs
Amortization of housing
42,383.82 36,328.80 6,055.02
decoration expenses
A combined 511,188.11 174,336.84 336,851.27
30.Deferred income tax assets/deferred income tax liabilities
(1) Non-offset deferred tax assets
(2) non-offset deferred income tax liabilities
In RMB Yuan
Closing balance Opening balance
project
Taxable temporary Deferred tax liabilities Taxable temporary Deferred tax liabilities
101
Wafangdian Bearing Company Limited 2021 Midyear Report
differences differences
Non - identical control
enterprise assets 4,896,322.33 734,448.35 4,896,322.33 734,448.35
valuation value
A combined 4,896,322.33 734,448.35 4,896,322.33 734,448.35
(3) Deferred income tax assets or liabilities shown on a net basis after offset
In RMB Yuan
The amount of
Deferred tax assets and The ending balance of The beginning balance
deferred tax assets and
project liabilities at the end of a deferred tax asset or of a deferred tax asset
liabilities offset at the
the balance liability after offset or liability after offset
beginning of the period
Deferred tax liabilities 734,448.35 734,448.35
(4) Deferred income tax asset details are not recognized
In RMB Yuan
project Closing balance Opening balance
Temporary differences can be deducted 54,337,700.26 54,337,700.26
Deductible losses 567,068,741.45 567,068,741.45
A combined 621,406,441.71 621,406,441.71
(5) Deductible losses on unrecognized deferred tax assets are due in the following years
In RMB Yuan
year Closing balance Opening balance note
2021 36,394,255.27 36,394,255.27
2022 77,265,795.85 77,265,795.85
2023 106,335,303.14 106,335,303.14
2024 100,239,007.68 100,239,007.68
2025 246,834,379.51
total 567,068,741.45 320,234,361.94 --
31. Other non-current assets
32.Short-term borrowing
(1) Classification of short-term loans
In RMB Yuan
project Closing balance Opening balance
Credit borrowing 698,000,000.00 670,000,000.00
A combined 698,000,000.00 670,000,000.00
33.Transactional financial liabilities
34. Derivative financial liabilities
In RMB Yuan
102
Wafangdian Bearing Company Limited 2021 Midyear Report
species Closing balance Opening balance
Commercial acceptance bill 159,508,457.05 123,567,800.00
Bank acceptance 67,284,800.00 151,086,735.65
A combined 226,793,257.05 274,654,535.65
Accounts payable
(1) List of accounts payable
In RMB Yuan
project Closing balance Opening balance
Payment for goods 1,242,788,565.21 982,917,948.65
The payment 26,097,105.76 24,620,842.88
other 10,519,054.02 37,263,105.32
A combined 1,279,404,724.99 1,044,801,896.85
(2) Significant accounts payable that are more than one year old
In RMB Yuan
project Closing balance Cause of outstanding or carry-over
project Cause of outstanding or carry-over
Liaocheng Dongchangfu Yuanrun
6,682,770.67 Outstanding settlement
Bearing Accessories Co., LTD
Liaocheng Hengfeng Rolling bearing
2,348,706.85 Outstanding settlement
Co., LTD
Liaocheng Dongheng Bearing parts
1,295,289.30 Outstanding settlement
Factory
Taiwan Oil machine Industry Co., LTD 1,188,227.37 Outstanding settlement
A combined 11,514,994.19 --
37.Advance payment
38. Contractual liabilities
In RMB Yuan
project Closing balance Opening balance
Contractual obligations pending
47,607,834.61 39,456,304.55
performance
total 47,607,834.61 39,456,304.55
39.Pay staff salaries
(1) List of employee remuneration payable
In RMB Yuan
103
Wafangdian Bearing Company Limited 2021 Midyear Report
Reduce in the current
project Beginning balance Increase in current Closing balance
period
1. Short-term
45,346,253.91 144,966,721.56 174,421,510.53 15,891,464.94
compensation
2. Post-employment
benefits - Set up an 5,973,433.18 23,185,870.38 23,198,211.25 5,961,092.31
escrow plan
Three, dismiss welfare 1,357,454.00 1,357,454.00
A combined 52,677,141.09 168,152,591.94 198,977,175.78 21,852,557.25
(2) Short-term compensation list
In RMB Yuan
Reduce in the current
project Beginning balance Increase in current Closing balance
period
1. Salary, bonus, allowance
41,202,601.27 107,873,690.86 137,282,280.74 11,794,011.39
and subsidy
2. Employee welfare funds 55,153.00 10,471,538.52 10,457,278.02 69,413.50
3. Social insurance premiums 42,646.65 13,662,621.04 13,682,188.40 23,079.29
Among them: medical
45,888.12 10,276,615.00 10,310,784.51 11,718.61
insurance premium
Injury insurance premium -1,109.31 2,110,986.99 2,109,581.65 296.03
Maternity insurance -2,132.16 1,275,019.05 1,261,822.24 11,064.65
4. Housing accumulation fund 2,487,488.49 11,854,750.94 11,864,579.94 2,477,659.49
5. Trade union funds and staff
1,558,364.50 1,104,120.20 1,135,183.43 1,527,301.27
education funds
A combined 45,346,253.91 144,966,721.56 174,421,510.53 15,891,464.94
(3) Set up the listing of the escrow plan
In RMB Yuan
Reduce in the current
project Beginning balance Increase in current Closing balance
period
1. Basic endowment
5,892,803.76 22,481,830.97 22,475,884.34 5,898,750.39
insurance
2. Unemployment
80,629.42 704,039.41 722,326.91 62,341.92
insurance premium
A combined 5,973,433.18 23,185,870.38 23,198,211.25 5,961,092.31
40.Taxes payable
In RMB Yuan
104
Wafangdian Bearing Company Limited 2021 Midyear Report
project Closing balance Beginning balance
The VAT 2,183,316.03 1,576,813.19
Personal income tax 167,553.93 148,082.29
City maintenance and construction tax 212,728.27 208,938.78
The property tax 732,129.76 911,163.89
Land use tax 536,377.57 536,377.57
Stamp duty 419,685.91 160,352.41
Education surcharge 85,072.79 145,800.58
other 0.00 639.97
A combined 4,336,864.26 3,688,168.68
41. Other payable
In RMB Yuan
project Closing balance Beginning balance
Interest payable 1,680,000.00 1,041,600.00
Other payable 144,788,203.79 128,434,461.47
total 146,468,203.79 129,476,061.47
(1) Interest payable
In RMB Yuan
project Closing balance Beginning balance
Interest payable on short-term
1,680,000.00 1,041,600.00
borrowings
total 1,680,000.00 1,041,600.00
(2) Dividends payable
(3) Other payables
1) List other payables according to their nature
In RMB Yuan
project Closing balance Beginning balance
Bid bond 1,548,890.00 1,165,890.00
Group payables 40,182,304.11 41,606,986.87
Authorized Dealer security deposit 55,828,065.36 25,526,424.69
other 47,228,944.32 60,135,159.91
total 144,788,203.79 128,434,461.47
42.Hold liabilities for sale
43.Non-current liabilities due within one year
44. Other current liabilities
In RMB Yuan
105
Wafangdian Bearing Company Limited 2021 Midyear Report
project Closing balance Beginning balance
To transfer tax 6,168,824.67 5,129,319.58
total 6,168,824.67 5,129,319.58
45. Long-term borrowing
46.Bonds payable
47.Lease liabilities
In RMB Yuan
project Closing balance Beginning balance
Operating lease 1,281,492.96 1,256,680.47
total 1,281,492.96 1,256,680.47
48.Long-term payable
In RMB Yuan
project Closing balance Beginning balance
Long-term payables 100,000.00 100,000.00
Special payables 244,974.84 244,974.84
A combined 344,974.84 344,974.84
(1) List the long-term payable by the nature of the amount
In RMB Yuan
project Closing balance Beginning balance
equipments 100,000.00 100,000.00
A combined 100,000.00 100,000.00
In RMB Yuan
Beginning Increase The ending
project The reduced Reasons for the formation
balance in current balance
Wafangdian Finance Bureau and Wafangdian
Special
Environmental Protection Bureau jointly
pollution 169,974.84 169,974.84
approved the allocation in the document
control
"Wacai Enterprises [2004] No. 217"
Dalian Municipal Finance Bureau and Dalian
Municipal Economic and Information
Information Commission approved the appropriation with
75,000.00 75,000.00
construction the documents of "Dacai Refers to
Enterprises [2012]917" and "Dacai Letter Fa
[2012]199"
A combined 244,974.84 244,974.84 --
49.Long-term employee compensation payable
50.Estimated liabilities
In RMB Yuan
106
Wafangdian Bearing Company Limited 2021 Midyear Report
project Closing balance Opening balance Reasons for the formation
Withholding compensation for product
Product quality assurance 5,167,386.63 4,771,845.00
quality
Wind power product quality Product quality problems, the customer
34,260,425.91 34,260,425.91
claim claims compensation
A combined 39,427,812.54 39,032,270.91 --
51.Deferred revenue
In RMB Yuan
The ending Reasons for the
project Beginning balance Increase in current The reduced
balance formation
Government
33,380,301.70 2,405,641.07 30,974,660.63
subsidies
Old factory
relocation 26,562,451.38 26,562,451.38
compensation
A combined 59,942,753.08 2,405,641.07 57,537,112.01 --
Projects involving government subsidies:
In RMB Yuan
The
This period The amount The
amount
is included of other amount of
of Other Related to
Beginning in the income is cost The ending
liabilities subsidy chang assets/related
balance amount of included in write-dow balance
added in es to earnings
non-operati the current n in this
this
ng income period period
period
Dalian branch
factory
21,633,886.42 1,352,117.94 20,281,768.48 Asset related
demolition
compensation
Bearing base
transformation
project of
high-end 944,640.00 236,160.00 708,480.00 Asset related
equipment
manufacturing
industry
Special
subsidies for
5,155,555.56 644,444.42 4,511,111.14 Asset related
intelligent
manufacturing
107
Wafangdian Bearing Company Limited 2021 Midyear Report
equipment
development
Large axle load
project discount 1,180,000.00 120,000.00 1,060,000.00 Asset related
subsidy
Industrial
development 3,999,468.00 3,999,468.00 Asset related
fund
Skill master
studio
423,349.65 52,918.71 370,430.94 Asset related
construction
subsidy
Master Liu
43,402.07 43,402.07 Asset related
Changfu grants
total 33,380,301.70 2,405,641.07 30,974,660.63
52.Other non-current liabilities
53.equity
In RMB Yuan
This change increases or decreases (+, -)
Beginning Issuing
Reserve fund Closing balance
balance new Send shares other total
conversion
shares
The total
number of 402,600,000.00 402,600,000.00
shares
54. Other equity instruments
55.Capital reserves
In RMB Yuan
project Beginning balance Increase in current The reduced Closing balance
Capital premium
201,956,446.52 201,956,446.52
(equity premium)
Other capital reserves 283,734,603.95 283,734,603.95
A combined 485,691,050.47 485,691,050.47
56.Treasury stocks
57.Other comprehensive income
58.Special reserves
59.Surplus reserve
In RMB Yuan
108
Wafangdian Bearing Company Limited 2021 Midyear Report
project Beginning balance Increase in current The reduced Closing balance
Legal surplus reserve 116,179,772.10 116,179,772.10
Arbitrary surplus
20,590,618.91 20,590,618.91
reserves
total 136,770,391.01 136,770,391.01
60.Undistributed profit
In RMB Yuan
project Current period Last period
Undistributed profit at the end of last period
-211,056,473.59 201,379,956.97
before adjustment
Adjust the undistributed profit at the beginning
-211,056,473.59 201,379,956.97
of the later period
Plus: net profit attributable to the owner of the
4,192,143.24 -380,228,430.56
parent company for the period
Dividends payable on common Stock 32,208,000.00
Undistributed profit at the end of the period -206,864,330.35 -211,056,473.59
61.Operating revenue and operating costs
In RMB Yuan
Current amount Amount of previous period
project
income cost income cost
Main business 979,323,679.11 743,092,451.14 766,441,287.81 558,705,095.63
Other business 101,741,174.55 88,212,133.11 130,290,947.05 116,016,075.11
A combined 1,081,064,853.66 831,304,584.25 896,732,234.86 674,721,170.74
62.Taxes and surcharges
In RMB Yuan
project Current amount Amount of previous period
City maintenance and construction tax 2,353,667.48 2,107,839.21
Education surcharge 1,659,561.44 1,356,766.05
The property tax 1,317,733.83 1,911,888.83
Land use tax 1,229,139.16 1,170,320.16
Stamp duty 1,088,562.42 567,850.42
other 336,634.91 180,469.62
A combined 7,985,299.24 7,295,134.29
63.Selling expenses
In RMB Yuan
109
Wafangdian Bearing Company Limited 2021 Midyear Report
Item Current amount Amount of previous period
Domestic freight 12,349,704.71 11,375,376.65
Employee compensation 35,548,237.74 31,436,120.32
Business trip expenses 10,785,468.83 7,694,358.65
conference expense 211,566.96 64,503.82
Trademark royalty 6,109,435.99 13,202,226.80
The international freight 1,647,229.97 507,211.83
Other fees 12,248,118.36 11,333,374.26
total 78,899,762.56 75,613,172.33
64.Administrative costs
In RMB Yuan
Item Current amount Amount of previous period
Employee compensation 23,431,418.03 13,332,765.29
Amortization of intangible assets 2,230,355.60 2,199,753.74
Guard fee 1,058,384.10 2,870,491.92
Depreciation cost 932,823.09 729,725.04
Business entertainment 129,074.38 137,412.70
Business trip expenses 838,458.84 107,876.35
Other fees 17,224,711.27 19,794,786.49
total 45,845,225.31 39,172,811.53
65.Research and development costs
In RMB Yuan
Amount of previous
Item Current amount
period
Artificial cost 3,438,538.95 3,866,670.00
Material input 69,160,362.26 74,265,649.79
Amortize depreciation expense against long-term expense 8,570,897.54 1,371,885.31
Technical service fee, design fee, new process procedure formulation fee
14,932,890.82 3,991,033.25
(equipment debugging fee - tooling for new products)
Other fees 2,175,096.69 4,878,780.26
Total 98,277,786.26 88,374,018.61
66.Financial expenses
In RMB Yuan
Item Current amount Amount of previous period
Interest charges 14,013,998.99 15,282,652.60
110
Wafangdian Bearing Company Limited 2021 Midyear Report
Less: interest income 240,304.64 404,634.33
Add: exchange loss 1,842,959.48 -983,568.16
Other spending 5,699,002.65 3,130,781.01
total 21,315,656.48 17,025,231.12
67. Other benefits
In RMB Yuan
Other sources of revenue Current amount Amount of previous period
Dalian branch factory demolition
1,352,117.94 1,352,117.94
subsidy
Stable post subsidy - Dalian
17,811.01 1,223,302.21
Employment Management Center
Bearing base transformation project of
high-end equipment manufacturing 236,160.00 236,160.00
industry
Special subsidies for intelligent
644,444.42 3,200,000.00
manufacturing equipment development
Large axle load project discount subsidy 120,000.00 120,000.00
Return of individual tax handling fee 32,813.61 11,381.57
Collect tile axis group union pioneer unit
7,000.00
bonus
6296845157Electron withdrawing 2,316.58
Skill master studio construction subsidy 52,918.71
Dalian city group map organization
comprehensive service center awarded 5,000.00
Wu Qiong thesis award
First set (set) government subsidy 46,000.00
Subsidies for work in place of training 83,020.00
Open special funds 464,059.00
Municipal "double hundred plan" talent
50,000.00
research funds
Total 3,063,661.27 6,192,961.72
68.Investment income
In RMB Yuan
Item Current amount Amount of previous period
Proceeds from debt restructuring 870,263.42 664,574.71
Total 870,263.42 664,574.71
69. Net exposure hedging gain
111
Wafangdian Bearing Company Limited 2021 Midyear Report
70.Fair value change earnings
In RMB Yuan
The source of fair value change income Current amount Amount of previous period
Trading financial assets 183,361.31 -55,470.65
Total 183,361.31 -55,470.65
71.Credit impairment losses
In RMB Yuan
item Current amount Amount of previous period
Loss on accounts receivable 30,000.00 7,311.38
Total 30,000.00 7,311.38
72.Asset impairment loss
73.Income from asset disposal
In RMB Yuan
Source of income from asset disposal Current amount Amount of previous period
Income from disposal of fixed assets 2,727,585.57 276,663.74
74.Non-operating income
In RMB Yuan
The amount booked into the
Amount of previous
Item Current amount current non-recurring profit and
period
loss
Debt restructuring gains 0.00
Fine income 217,753.00 1,066,061.88 217,753.00
other 599,903.00 1,069,471.92 599,903.00
Total 817,656.00 2,135,533.80
75.Non-operating expenses
In RMB Yuan
The amount booked into the
Amount of previous
Item Current amount current non-recurring profit and
period
loss
donating 80,000.00 0.00
Debt restructuring losses 0.00
Loss of non-current assets 879,472.48 102.41 879,472.48
A fine spending 52,330.77 22,250.00 52,330.77
Late payment fee 14.17 2,523.76 14.17
other 5,106.47 312.58 5,106.47
Total 936,923.89 105,188.75
112
Wafangdian Bearing Company Limited 2021 Midyear Report
76.Income tax expenses
(1) Income tax expense schedule
(2) Accounting profit and income tax expense adjustment process
In RMB Yuan
Item Current amount
Profit total 4,192,143.24
77. Other comprehensive income
See the notes for details.
78. Cash Flow Statement items
(1) Other cash received in connection with operating activities
In RMB Yuan
item Current amount Amount of previous period
Interest income 76,788.52 40,898.52
Government subsidies 46,000.00 46,000.00
Come-and-go money 56,518,795.54 9,998,779.57
Return the deposit and petty cash 139,620.00 82,729.00
other 460,844.42 101,830.42
total 57,242,048.48 10,270,237.51
(2) Other cash paid in connection with operating activities
In RMB Yuan
item Current amount Amount of previous period
Cost of sales 222,383.56 172,349.56
Management fees 54,265,462.19 52,648,257.50
Finance charges 135,210.90 133,224.90
other 21,865,294.56 18,305,149.56
total 76,488,351.21 71,258,981.52
(3) Other cash received in connection with investment activities
(4) Other cash paid in connection with investment activities
(5) Other cash received in connection with financing activities
In RMB Yuan
item Current amount Amount of previous period
Bill discount 38,566,252.78 41,567,823.29
total 38,566,252.78 41,567,823.29
(6) Other cash disbursements in connection with financing activities
In RMB Yuan
item Current amount Amount of previous period
113
Wafangdian Bearing Company Limited 2021 Midyear Report
The bill is payable at maturity 50,000,000.00 67,110,000.00
total 50,000,000.00 67,110,000.00
79. Supplementary information on cash flow Statement
(1) Supplementary information of cash flow statement
In RMB Yuan
Additional information Current amount Amount of previous period
1. -- --
Adjusting net profit to cash flow from operating activities: 4,192,143.24 3,647,082.19
Net profit
Add: asset impairment provision 28,818,633.76 28,697,977.45
Depreciation of fixed assets, depreciation of oil and gas assets,
depreciation of productive biological assets
Depreciation of usufruct 2,230,355.60 2,199,753.74
Amortization of intangible assets 174,336.84 163,415.20
Amortization of long-term deferred expenses -2,727,585.57 -276,663.74
Loss on disposal of fixed assets, intangible assets and other long-term
820,370.34 102.41
assets (marked with "-" for income)
Loss on scrap of fixed assets (marked with "-" for income) 183,361.31 55,470.65
Loss on change in fair value (marked with "-" for earnings) 21,315,656.48 17,025,231.12
Financial expenses (marked with "-" for income) -870,263.42 -664,574.71
Investment loss (marked with "-" for profit)
Reduction in deferred income tax assets (marked with "-" for increase)
Increase in deferred income tax liability (marked with "-" for decrease) -145,468,868.68 29,745,513.29
Decrease in inventory (increase marked with "-") -137,873,561.95 -117,979,875.19
Reduction of operating receivables (marked with "-" for increase) 260,607,765.54 109,907,994.64
Increase of operational payable items (marked with "-" for reduction)
other 31,402,343.49 72,521,427.05
Net cash flow from operating activities -- --
2.
Significant investment and financing activities that do not involve cash
receipts and expenditures:
Debt to capital
A convertible corporate bond that matures within one year -- --
Financial leasing of fixed assets 160,772,019.45 250,275,098.40
3. 127,620,944.91 137,324,488.53
114
Wafangdian Bearing Company Limited 2021 Midyear Report
Net change in cash and cash equivalents:
Ending balance of cash
Minus: opening balance of cash 33,151,074.54 112,950,609.87
(2) The net cash of the subsidiary paid in the current period
(3) Net cash received at the disposal of subsidiaries during the current period
(4) The composition of cash and cash equivalents
In RMB Yuan
Item Closing balance Opening balance
I. cash 160,772,019.45 127,620,944.91
Wherein: cash on hand 25,913.68 33,102.75
A bank deposit available for payment at
160,746,105.77 127,587,842.16
any time
III.Ending balance of cash and cash
160,772,019.45 127,620,944.91
equivalents
80.Comments on items of the statement of Changes in owners' equity
Description of the "other" items and the amount of adjustment to the balance at the end of the previous year:
81.An asset whose ownership or use is restricted
82.Foreign currency monetary items
(1) Foreign currency monetary items
In RMB Yuan
Ending foreign currency The balance converted into
project Discount rate
balance RMB at the end of the period
Monetary fund -- -- 75,392,452.33
Including: US dollars 11,121,250.17 6.37 70,822,345.33
The euro 588,809.91 7.76 4,570,107.00
Hong Kong dollars
Accounts receivable -- -- 26,504,894.73
Including: US dollars 3,396,902.34 6.37 21,632,153.48
The euro 627,801.13 7.76 4,872,741.25
Hong Kong dollars
Long-term borrowing -- --
Including: US dollars
The euro
Hong Kong dollars
Other accounts receivable
Among them: Euro 642,830.99 7.76 4,989,397.01
115
Wafangdian Bearing Company Limited 2021 Midyear Report
Accounts payable —— 242,995.51
Including: US dollars 21,136.91 6.37 134,604.07
The euro 13,965.09 7.76 108,391.44
Other payable —— 649,220.16
Including: US dollars 101,947.20 6.37 649,220.16
Other notes:
(2) Description of overseas business entities, including important overseas business entities, shall disclose their main overseas
business locations, functional currency and selection basis, and shall also disclose reasons for changes in functional currency.
Applicable Inapplicable
83.hedging
The qualitative and quantitative information of the hedging item, relevant hedging instruments and hedged risks shall be disclosed
according to the hedging category:
84.Government subsidies
(1) Basic information on government subsidies
In RMB Yuan
The amount included in
species Account Presentation project
current profit and loss
Return of individual tax handling fee 32,813.61 Other income 32,813.61
Steady post subsidies 17,811.01 Other income 17,811.01
Dalian branch factory demolition
48,676,244.95 Deferred revenue 1,352,117.94
subsidy
Special subsidies for intelligent
manufacturing equipment 8,000,000.00 Deferred revenue 644,444.42
development
Open special funds 464,059.00 Other income 464,059.00
Bearing base transformation project
of high-end equipment manufacturing 4,723,200.00 Deferred revenue 236,160.00
industry
Collect tile axis group union pioneer
7,000.00 Other income 7,000.00
unit bonus
Large axle load project discount
2,400,000.00 Deferred revenue 120,000.00
subsidy
6296845157 Electronic revocation 2,316.58 2,316.58
First set (set) government subsidy 46,000.00 Other income 46,000.00
Skill master studio construction
700,000.00 Deferred revenue 52,918.71
subsidy
Dalian city group map organization
5,000.00 Other income 5,000.00
comprehensive service center
116
Wafangdian Bearing Company Limited 2021 Midyear Report
awarded wu Qiong thesis award
Receive the subsidy for labor and
83,020.00 Other income 83,020.00
training from January to March 2021
Industrial development fund 4,877,400.00 Deferred revenue
A combined 70,034,865.15 —— 3,063,661.27
(2) The return of government subsidies
Applicable Inapplicable
Other notes:
85.other
VIII. Change of merger scope
IX.Rights and interests in other subjects
1. Interests in subsidiaries
(1) Composition of enterprise groups
The name of Main business Nature of the stake
registered Make way
the subsidiary area business direct indirect
Wazhou Production and
61 Weiguo
liaoyang sales of
Liao Yang Road, Baita Enterprise
bearing bearings and 100.00%
province District, merger
manufacturing machinery
Liaoyang City
co., LTD manufacturing
Production and
Dalian wazhou 12 Yongsheng
sales of
precision motor Dalian Street, 13 Li,
bearings and 100.00% Set up
car bearing co., province Dalian Free
machinery
LTD Trade Zone
manufacturing
Wazhou
Production and
precision No.1, Section
sales of
spherical roller 1, North Gongji Enterprise
Wafangdian bearings and 100.00%
bearings Street, merger
machinery
(wafangdian) Wafangdian
manufacturing
co., LTD
X.Risks associated with financial instruments
XI.Disclosure of fair value
XII. Related Parties and related Party transactions
The parent
The proportion of
Name of parent Nature of the The registered company's
registered voting rights of the
company business capital shareholding ratio in
parent company
the company
No.1, Section 1, Bearing and all kinds
Wazhou group 519,869,400.00 60.61% 60.61%
Beijiaxia Street, of equipment
117
Wafangdian Bearing Company Limited 2021 Midyear Report
Wafangdian city, manufacturing,
Dalian marketing
A description of the parent company of the enterprise
The final control party of the enterprise is the State-owned Assets Supervision and Administration Commission of Dalian
Municipal People's Government.
2. The company's subsidiaries
Please refer to Note IX. 1.(1) for details of the subsidiaries of the enterprise.
3. The situation of joint venture and joint venture
4. Other related Parties
Names of other affiliates Relationship between other related parties and the enterprise
Dalian Wafangdian Bearing Group Equipment Manufacturing Other enterprises controlled by the same controlling
Co., Ltd. shareholder and ultimate controlling party
Other enterprises controlled by the same controlling
Wafangdian Bearing Precision Ball Manufacturing Co., Ltd.
shareholder and ultimate controlling party
Other enterprises controlled by the same controlling
Wafangdian Bearing Precision Forging Co., Ltd
shareholder and ultimate controlling party
Other enterprises controlled by the same controlling
Wafangdian Bearing Group Wind Power BearingCo., Ltd.
shareholder and ultimate controlling party
Other enterprises controlled by the same controlling
Wafangdian Bearing GroupPrecision Drive Bearing Co., LTD
shareholder and ultimate controlling party
Wafangdian bearing group equipment technology engineering Other enterprises controlled by the same controlling
co., LTD shareholder and ultimate controlling party
Other enterprises controlled by the same controlling
Wafangdian Bearing Special Precision Bearing Co., Ltd.
shareholder and ultimate controlling party
Other enterprises controlled by the same controlling
Liaoning northern metal supply chain co., LTD
shareholder and ultimate controlling party
Other enterprises controlled by the same controlling
Wafangdian Bearing Group (U.S.A.) Co., Ltd.
shareholder and ultimate controlling party
Other enterprises controlled by the same controlling
Wafangdian bearing Group High-end Auto Bearing Co., Ltd.
shareholder and ultimate controlling party
Other enterprises controlled by the same controlling
Wafangdian bearing group precision roller co., LTD
shareholder and ultimate controlling party
Other enterprises controlled by the same controlling
Wafangdian Bearing Group Precision Retainer Co., Ltd.
shareholder and ultimate controlling party
Other enterprises controlled by the same controlling
Germany Leipzig Roller and Ball Bearing Co., Ltd.
shareholder and ultimate controlling party
Wafangdian Bearing Power Co., Ltd. Other enterprises controlled by the same controlling
118
Wafangdian Bearing Company Limited 2021 Midyear Report
shareholder and ultimate controlling party
Wafangdian Bearing Group Engineering Technology Research Other enterprises controlled by the same controlling
Center shareholder and ultimate controlling party
Wafangdian Bearing Power Co., Ltd. Other associated parties
Dalian Wazhou Jinzhou Machinery Co., Ltd. Other associated parties
Wafangdian Tongda Bearing Manufacturing Co., Ltd. Other associated parties
Dalian Wazhou Fengyuan Machinery Co., Ltd. Other associated parties
ZWZ Bearing Europe GmbH Other associated parties
5. Related Transactions
(1) Related party transactions of purchasing and selling goods, providing and accepting services
List of goods purchased/services received
In RMB Yuan
Whether
it exceeds
Content of Related Approved Amount of
The affiliated party Current amount the
Transactions trading quotas previous period
trading
limit
Wafangdian Bearing Precision
Buy spare parts 110,950,488.47 450,000,000.00 no 91,230,285.11
Forging Co., Ltd
Wafangdian bearing group precision
Buy spare parts 16,802,062.64 60,000,000.00 no 12,953,553.77
roller co., LTD
Wazhou Group Precision Drive Buy
no 1,985,986.05
Bearing Co., Ltd. goods/services
Wafangdian Tongda Bearing Buy
1,988.00 6,000,000.00 no 1,233,348.00
Manufacturing Co., Ltd. goods/services
Dalian Wazhou Fengyuan Machinery
Buy parts/services 4,231,302.26 20,000,000.00 no 1,375,930.38
Co., Ltd.
Wafangdian bearing Group High-end The purchase of
63,713,344.65 170,000,000.00 no 37,322,321.95
Auto Bearing Co., Ltd. goods
Wafangdian Bearing Group Precision
Buy spare parts 66,106,128.36 150,000,000.00 no 30,752,307.46
Retainer Co., Ltd.
Dalian Wazhou Jinzhou Machinery
Buy spare parts 5,445,226.09 25,000,000.00 no 3,820,940.51
Co., Ltd.
Purchase parts,
Dalian Wafangdian Bearing Group
products and 8,660,940.09 70,000,000.00 no 10,812,886.06
Equipment Manufacturing Co., Ltd.
equipment
Wafangdian Bearing Group Wind The purchase of
2,318,842.65 20,000,000.00 no
Power BearingCo., Ltd. goods
Wafangdian Bearing Power Co., Ltd. Purchase 18,358,528.43 54,700,000.00 no 9,520,730.75
119
Wafangdian Bearing Company Limited 2021 Midyear Report
commodity fuel
power, receive
service
Wafangdian Bearing Group
Accepting labor
Engineering Technology Research 8,201,980.00 22,000,000.00 no 3,256,398.61
services,
Center
Buy goods, spare
1,074,800,000.
Wafangdian Bearing Group Co., Ltd. parts/receive 373,036,349.16 no 197,715,938.60
00
services
Germany Leipzig Roller and Ball Accepting labor
1,000,000.00 no 648,292.34
Bearing Co., Ltd. services,
Total 677,827,180.81 402,628,919.59
Table of goods/services offered for sale
In RMB Yuan
Content of
Related party Related Current amount Amount of previous period
Transactions
Wafangdian Bearing Precision Forging Co., Ltd Sales of goods 43,265,124.64 36,492,655.84
Wafangdian Bearing Group Co., Ltd. Sales of goods 33,537,357.81 45,861,559.58
Wafangdian Bearing Group (U.S.A.) Co., Ltd. Sales of goods 33,296,028.83 32,507,453.55
Wazhou Group Precision Drive Bearing Co., Ltd. Sales of goods 131,524.04 1,004,977.15
Dalian Wafangdian Bearing Group Equipment
Sales of goods 72,236.78 33,777.71
Manufacturing Co., Ltd.
Wafangdian Bearing Group Wind Power
Sales of goods 11,228,246.56 76,473,270.03
BearingCo., Ltd.
Wafangdian Bearing Special Precision Bearing
Sales of goods 76,033.09 296,826.65
Co., Ltd.
Dalian Wazhou Jinzhou Machinery Co., Ltd. Sales of goods 1,836.00
Wafangdian Tongda Bearing Manufacturing Co.,
Sales of goods 382,488.01
Ltd.
Wafangdian bearing group precision roller co.,
Sales of goods 7,466,886.26 5,173,400.70
LTD
Wafangdian Bearing Group Precision Retainer Co.,
Sales of goods 18,588.59 20,842.17
Ltd.
Wafangdian bearing Group High-end Auto Bearing
Sales of goods 2,186,163.12 5,565,981.26
Co., Ltd.
Germany Leipzig Roller and Ball Bearing Co., Ltd. Sales of goods 4,032,732.79 2,874,449.64
Provide labor
Wazhou Group Precision Drive Bearing Co., Ltd. 20,252,715.83 709,423.96
services
120
Wafangdian Bearing Company Limited 2021 Midyear Report
Wafangdian Bearing Special Precision Bearing Provide labor
490,622.69 337,459.98
Co., Ltd. services
Provide labor
Dalian Wazhou Jinzhou Machinery Co., Ltd. 149,419.98 52,160.67
services
Dalian Wafangdian Bearing Group Equipment Provide labor
147,589.92
Manufacturing Co., Ltd. services
Provide labor
Wafangdian Bearing Group Co., Ltd. 9,302,159.07 7,384,140.07
services
Provide labor
Wafangdian Bearing Precision Forging Co., Ltd 484,596.79 181,495.35
services
Wafangdian bearing group precision roller co., Provide labor
1,424,404.62 2,056,798.51
LTD services
Wafangdian Bearing Group Precision Retainer Co., Provide labor
73,816.39
Ltd. services
Wafangdian bearing Group High-end Auto Bearing Provide labor
2,410,301.24
Co., Ltd. services
Wafangdian Tongda Bearing Manufacturing Co., Provide labor
3,057,843.11
Ltd. services
Content of
total Related 173,104,392.16 217,410,996.83
Transactions
(2) Associated with entrusted management/contracting and entrusted management/outsourcing
(3) Associated lease
As the lessor, the Company:
In RMB Yuan
Types of leased
Name of the lessee 本期确认的租赁收入 上期确认的租赁收入
assets
Wafangdian Bearing Precision Forging
land 275,414.51 379,436.00
Co., Ltd
Wafangdian Bearing Group Precision
land 131,574.00 131,574.00
Retainer Co., Ltd.
Wafangdian Bearing Group Co., Ltd. land 151,127.63 201,626.16
Wafangdian bearing Group High-end Auto
housing 1,668,492.60 3,089,922.60
Bearing Co., Ltd.
Wafangdian Bearing Precision Forging
housing 677,018.72 517,810.00
Co., Ltd
Dalian Wazhou Jinzhou Machinery Co.,
housing 401,580.00 401,580.00
Ltd.
Wafangdian Bearing Group Precision housing 382,011.48 382,011.48
121
Wafangdian Bearing Company Limited 2021 Midyear Report
Retainer Co., Ltd.
Wafangdian Bearing Group Co., Ltd. housing 548,064.60 244,909.80
Dalian Wazhou Fengyuan Machinery Co.,
housing 53,730.00 53,730.00
Ltd.
Wafangdian bearing Group High-end Auto
equipment 3,942,532.14 5,883,114.30
Bearing Co., Ltd.
Wafangdian bearing group precision roller
equipment 219,857.98 1,055,386.86
co., LTD
Wafangdian Bearing Group Precision
equipment 419,215.42 1,106,691.67
Retainer Co., Ltd.
Wafangdian Bearing Group Co., Ltd. equipment 3,662,482.91 4,635,982.78
Total 12,533,101.99 18,083,775.65
The Company as the lessee:
In RMB Yuan
Rental fees confirmed for this The rental fee confirmed in
Name of the lessor Types of leased assets
period the previous term
Wafangdian Bearing Group Co.,
housing 105,844.50 105,844.50
Ltd.
Wafangdian Bearing Group Co.,
housing 1,400,277.61 1,330,299.06
Ltd.
Wafangdian Bearing Group Co.,
housing 1,169,652.00 584,826.00
Ltd.
Wafangdian Bearing Group Co.,
housing 1,285,835.52 1,285,835.51
Ltd.
Wafangdian Bearing Group Co.,
housing 391,860.00 391,860.00
Ltd.
Wafangdian Bearing Group Co.,
housing 1,129,680.00 1,354,155.00
Ltd.
Wafangdian Bearing Group Co.,
housing 345,541.00 430,657.76
Ltd.
Wafangdian Bearing Group Co.,
housing 34,401.00 56,367.50
Ltd.
Wafangdian Bearing Group Co.,
housing 584,826.00
Ltd.
Wafangdian Bearing Group Co.,
land 559,011.00 559,011.00
Ltd.
Wafangdian Bearing Group Co.,
land 250,180.75 237,657.00
Ltd.
122
Wafangdian Bearing Company Limited 2021 Midyear Report
Wafangdian Bearing Group Co.,
land 227,850.00 113,925.00
Ltd.
Wafangdian Bearing Group Co.,
land 263,025.00 263,025.00
Ltd.
Wafangdian Bearing Group Co.,
land 84,675.00 84,675.00
Ltd.
Wafangdian Bearing Group Co.,
land 224,475.00 473,776.01
Ltd.
Wafangdian Bearing Group Co.,
land 190,417.50 222,153.75
Ltd.
Wafangdian Bearing Group Co.,
land 113,925.00
Ltd.
Wafangdian Bearing Group Co.,
equipment 104,091.54 124,693.67
Ltd.
Wafangdian Bearing Group Co.,
equipment 179,660.54 168,695.33
Ltd.
Wafangdian Bearing Group Co.,
equipment 11,606.84 5,803.42
Ltd.
Wafangdian Bearing Group Co.,
equipment 484,361.04 483,945.55
Ltd.
Wafangdian Bearing Group Co.,
equipment 66,126.48 66,126.49
Ltd.
total 8,508,572.32 9,042,083.55
(4) Related guarantee
(5) Related party lending
(6) Assets transfer and debt restructuring of related parties
In RMB Yuan
Content of Related
Related party Current amount Last period amount
Transactions
Dalian Wafangdian Bearing Group Proceeds from debt
18,030.00
Equipment Manufacturing Co., Ltd. restructuring
Wafangdian bearing group equipment Proceeds from debt
3,885.00 22,650.00
technology engineering co., LTD restructuring
Wafangdian Bearing Precision Forging Proceeds from debt
500,000.00
Co., Ltd restructuring
(7) Compensation of key management personnel
In RMB Yuan
item Current amount Last period amount
123
Wafangdian Bearing Company Limited 2021 Midyear Report
Pay in total 466,564.80 381,462.00
(8) Other related party transactions
6. Accounts receivable and payable by related Parties
(1) Receivable items
In RMB Yuan
Ending balance Opening balance
The project
name Provisio Provision
Related party
Book balance n for bad Book balance for bad
debt debt
Accounts Wafangdian bearing Group High-end Auto
52,276,288.20 68,678,602.65
receivable Bearing Co., Ltd.
Accounts
Wafangdian Bearing Precision Forging Co., Ltd 219,872.47 16,662,178.60
receivable
Accounts Wafangdian Bearing Group Wind Power
25,507,541.54 57,817,522.14
receivable BearingCo., Ltd.
Accounts Wafangdian bearing group precision roller co.,
92,214,064.30 58,389,070.16
receivable LTD
Accounts
Wafangdian Bearing Group (U.S.A.) Co., Ltd. 12,671,710.42 12,724,312.13
receivable
Accounts Wafangdian Bearing Group Precision Retainer
7,604,387.25 4,695,277.43
receivable Co., Ltd.
Accounts
Wafangdian Bearing Group Co., Ltd. 124,093,657.21 45,948,737.23
receivable
Accounts
Wazhou Group Precision Drive Bearing Co., Ltd. 35,886,333.50 13,380,098.00
receivable
Accounts Wafangdian Bearing Special Precision Bearing
313,460.12 96,675.89
receivable Co., Ltd.
Accounts Germany Leipzig Roller and Ball Bearing Co.,
2,093,164.98 951,712.17
receivable Ltd.
Accounts Wafangdian Tongda Bearing Manufacturing Co.,
2,776,919.75 246,225.41
receivable Ltd.
Accounts
ZWZBearingEuropeGmbH 165,782.22
receivable
Accounts
Dalian Wazhou Jinzhou Machinery Co., Ltd. 1,769,628.29 534,568.97
receivable
Accounts Wafangdian Bearing Group Engineering
receivable Technology Research Center
Accounts Wafangdian HongdaConstant velocity universal
148,466.32 148,466.32
receivable jointManufacturing Company Limited
124
Wafangdian Bearing Company Limited 2021 Midyear Report
Advance
Wafangdian Bearing Power Co., Ltd. 180,000.00
payment
Advance Dalian Wafangdian Bearing Group Equipment
12,670.00
payment Manufacturing Co., Ltd.
Advance Wafangdian bearing group precision roller co.,
239,733.27 3,157,266.38
payment LTD
Advance
Wafangdian Bearing Group Co., Ltd. 674,220.86
payment
Advance Wafangdian bearing Group High-end Auto
8,019,600.29
payment Bearing Co., Ltd.
Advance
Wafangdian Bearing Precision Forging Co., Ltd 36,765,177.51
payment
Other
Wafangdian Bearing Group Co., Ltd.Lanzhou
accounts 778,950.65 778,950.65
Sales Branch
receivable
Other
accounts Lanzhou Sales Branch 20,254.45 20,254.45
receivable
(2) Items payable
In RMB Yuan
The project
Related party Closing book balance Starting book balance
name
Accounts
Wafangdian Bearing Precision Forging Co., Ltd 28,439,720.54 11,011,062.39
payable
Accounts
瓦轴集团 228,159,410.99 115,348,014.25
payable
Accounts Dalian Wafangdian Bearing Group Equipment
4,001,795.63 2,664,211.48
payable Manufacturing Co., Ltd.
Accounts Wafangdian bearing Group High-end Auto Bearing Co.,
24,746,134.91 17,774,754.01
payable Ltd.
Accounts
Wafangdian Tongda Bearing Manufacturing Co., Ltd. 3,077,828.88 846,928.89
payable
Accounts Wafangdian bearing group equipment technology
29,700.00 29,700.00
payable engineering co., LTD
Accounts
Dalian Wazhou Jinzhou Machinery Co., Ltd. 3,908,628.15 2,388,530.75
payable
Accounts
Dalian Wazhou Fengyuan Machinery Co., Ltd. 4,582,504.87 1,247,725.38
payable
Accounts Wafangdian Bearing Group Engineering Technology 8,040,683.38 4,453,686.53
125
Wafangdian Bearing Company Limited 2021 Midyear Report
payable Research Center
Accounts
Wafangdian bearing group precision roller co., LTD 6,099,542.54 2,391,436.65
payable
Accounts
Wafangdian Bearing Group Precision Retainer Co., Ltd. 19,381,041.28 6,147,681.16
payable
Accounts
Wafangdian Bearing Power Co., Ltd. 1,823,009.04 1,012,371.15
payable
Accounts
Wazhou Group Precision Drive Bearing Co., Ltd. 1,367,702.05 682,054.80
payable
Accounts
Wafangdian Bearing Special Precision Bearing Co., Ltd. 965,878.64
payable
Other payable Wafangdian Bearing Group Co., Ltd. 40,182,304.11 38,476,586.58
Wafangdian bearing group equipment technology
Other payable 5,662,503.19 952,000.00
engineering co., LTD
Dalian Wafangdian Bearing Group Equipment
Other payable 211,088.45
Manufacturing Co., Ltd.
7. Commitment of related Party
8.other
XIII. Share payment
1. The general situation of share payment
Applicable Inapplicable
2. Share payments settled with equity
□ Applicable √ Not applicable
3. Share payments settled in cash
Applicable Inapplicable
4. Modification and termination of share payment
5.other
XIV.Commitments and contingencies
1. Important commitments
Significant commitments existing at balance sheet date
2. Contingencies
XV.Events after the balance sheet date
XVI.Other important matters
XVII.Annotation of major items in the parent company's financial statements
1. Accounts receivable
(1) Classified disclosure of accounts receivable
In RMB Yuan
category ending balance Beginning balance
Book balance Provision for bad The Book balance Provision for bad The book
126
Wafangdian Bearing Company Limited 2021 Midyear Report
debt book debt value
value
Provisio Provisi
account ratio account account ratio account
n ratio on ratio
Accounts
receivable with
63,407,86 5.52 63,407, 100.00 63,437, 63,437, 100.00
bad debt provision 6.00%
5.85 % 865.85 % 865.85 865.85 %
drawn on a single
item
Among them:
Accounts
receivable with a 1,056,0 1,079,5
1,084,436, 94.48 28,386, 28,394, 1,051,19
combination of 2.62% 49,412. 92,293. 94.00% 3.00%
108.35 % 695.63 940.13 7,353.63
bad debt 72 76
provisions
Among them:
759,50 722,78
Wherein: aging 787,893,0 68.64 28,386, 28,394, 694,390,
3.60% 6,328.0 5,069.5 63.00% 4.00%
combination 23.63 % 695.63 940.13 129.43
0 6
Where: 296,54 356,80
296,543,0 25.83 356,807,
combination of 0.00% 3,084.7 7,224.2 31.00% 0.00%
84.72 % 224.20
related parties 2 0
1,056,0 1,143,0
1,147,843, 100.0 91,794, 100.00 91,832, 1,051,19
A combined 8.00% 49,412. 30,159. 8.00%
974.20 0% 561.48 % 805.98 7,353.63
72 61
Provision for bad debt by single item: 63,407,865.85
In RMB Yuan
Closing balance
名称 Provision for
Book balance Provision ratio Provision for
bad debt
Liaoning Yinheng Galvanized Color Coated Not expected to
3,213,308.67 3,213,308.67 100.00%
Steel Plate Co. LTD recover
Not expected to
Shandong Hengji New Material Co., LTD 2,284,666.96 2,284,666.96 100.00%
recover
Shandong Yuanda Board Industry Not expected to
1,804,722.77 1,804,722.77 100.00%
Technology Co., LTD recover
Not expected to
Hesteel Company Limited Handan branch 1,608,611.42 1,608,611.42 100.00%
recover
Not expected to
Angang Steel Company Limited 1,595,050.69 1,595,050.69 100.00%
recover
Not expected to
Liaoning Wa shaft Bearing Sales Co., LTD 1,500,000.00 1,500,000.00 100.00%
recover
Not expected to
Bazhou Tianli Pipe Co., LTD 1,325,600.76 1,325,600.76 100.00%
recover
127
Wafangdian Bearing Company Limited 2021 Midyear Report
Not expected to
Yingkou Iron & Steel Co. LTD 1,256,973.91 1,256,973.91 100.00%
recover
Not expected to
Sichuan Southwest Stainless Steel Co. LTD 1,241,333.17 1,241,333.17 100.00%
recover
Not expected to
Citic Heavy Industrial Machinery Co. LTD 1,137,600.00 1,137,600.00 100.00%
recover
Henan Taihang Vibration Machinery Co., Not expected to
989,207.41 989,207.41 100.00%
LTD recover
China second heavy machinery Group Not expected to
795,887.92 795,887.92 100.00%
(Deyang) Wanxin engineering equipment recover
Benxi Beiying Iron & Steel (Group) Co. Not expected to
775,804.98 775,804.98 100.00%
LTD recover
Not expected to
Bengang Steel Plates Co., Ltd 770,000.00 770,000.00 100.00%
recover
Materials Branch of North Heavy Industry Not expected to
739,585.80 739,585.80 100.00%
Group Co. LTD recover
Shandong Yuntong New Material Not expected to
711,438.94 711,438.94 100.00%
Technology Co., LTD recover
Not expected to
Dongfeng Motor Transmission Co. LTD 704,098.23 704,098.23 100.00%
recover
Not expected to
Dalian Tianyuan Motor Co., LTD 666,383.31 666,383.31 100.00%
recover
Wolong Electric Huaian Qingjiang Motor Not expected to
598,873.78 598,873.78 100.00%
Co., LTD recover
Qiqihar No.2 Machine Tool (Group) Co. Not expected to
551,450.03 551,450.03 100.00%
LTD recover
Xi 'an Jossbo Hydraulic Engineering Co. Not expected to
514,938.87 514,938.87 100.00%
LTD recover
Not expected to
Mudanjiang city speed reducer Factory 467,905.65 467,905.65 100.00%
recover
Hunan Chaoyang Electromechanical Co., Not expected to
446,627.60 446,627.60 100.00%
LTD recover
Not expected to
Xiangtan Motor Co., LTD 416,549.65 416,549.65 100.00%
recover
Not expected to
Xuzhou XCMG Material Supply Co., LTD 373,237.55 373,237.55 100.00%
recover
Not expected to
Qingdao Double star Tyre Industry Co., LTD 371,251.58 371,251.58 100.00%
recover
Not expected to
Minmetals Yingkou Plate Co. LTD 365,064.61 365,064.61 100.00%
recover
Not expected to
Shandong Kerui Steel Plate Co. LTD 357,290.00 357,290.00 100.00%
recover
Guangzhou Supplies section of China Not expected to
340,000.00 340,000.00 100.00%
Railway Guangzhou Bureau Group Co., LTD recover
Not expected to
Shantui Construction Machinery Co., Ltd. 325,867.86 325,867.86 100.00%
recover
Shandong tancheng new Asia light industry Not expected to
318,488.87 318,488.87 100.00%
machinery limited company recover
Beiman Special Steel Co. LTD of Northeast 315,004.72 315,004.72 100.00% Not expected to
128
Wafangdian Bearing Company Limited 2021 Midyear Report
Special Steel Group recover
Taicang Hutai Chang 'e Papermaking Not expected to
310,361.32 310,361.32 100.00%
Equipment Co. LTD recover
Panzhihua Group Chengdu Iron & Steel Co. Not expected to
303,305.45 303,305.45 100.00%
LTD recover
Harbin Haoke Electric Power Technology Not expected to
303,005.32 303,005.32 100.00%
Co. LTD recover
Not expected to
Jiangsu Xinrui Gear System Co., LTD 286,949.88 286,949.88 100.00%
recover
Erzhong Group (Deyang) Jingheng Not expected to
286,935.03 286,935.03 100.00%
Transmission Equipment Co., LTD recover
Not expected to
Xingtai Iron & Steel Co. LTD 285,834.67 285,834.67 100.00%
recover
Not expected to
Shandong Guanpeng Metal Sheet Co., LTD 273,748.84 273,748.84 100.00%
recover
Not expected to
Baoji Loyalty Machine Tool Co., LTD 269,908.74 269,908.74 100.00%
recover
Not expected to
Jiangsu Dazhong Electric Co., LTD 257,662.90 257,662.90 100.00%
recover
Not expected to
Korla railway supplies section 256,044.10 256,044.10 100.00%
recover
Not expected to
Zhuzhou Gear Co., LTD 254,604.07 254,604.07 100.00%
recover
Not expected to
Jiamusi Electric Motor Co., LTD 245,000.00 245,000.00 100.00%
recover
Zibo Boshan Qianjin reducer Factory Co., Not expected to
244,579.32 244,579.32 100.00%
LTD recover
Not expected to
Indonesia CV.SIDO Company 243,676.52 243,676.52 100.00%
recover
Not expected to
Tonghua Iron & Steel Co. LTD 240,568.39 240,568.39 100.00%
recover
Not expected to
Shijiazhuang Qiangda slurry pump Co. LTD 238,749.98 238,749.98 100.00%
recover
Not expected to
Ningbo Fan Co., LTD 238,487.84 238,487.84 100.00%
recover
Shenyang Jingxin Remanufacturing Co., Not expected to
236,705.64 236,705.64 100.00%
LTD recover
Not expected to
Siemens Motors (China) Co., LTD 228,831.20 228,831.20 100.00%
recover
Anshan Heavy Duty Mining Machinery Co., Not expected to
216,819.90 216,819.90 100.00%
Ltd. recover
Not expected to
Heavy coal Machine Co. LTD 215,142.12 215,142.12 100.00%
recover
Qinhuangdao Shouqin Metal Material Co., Not expected to
213,911.48 213,911.48 100.00%
LTD recover
Liaoning Renda Equipment Technology Co., Not expected to
211,464.69 211,464.69 100.00%
LTD recover
CRRC Shenyang Locomotive & Rolling Not expected to
205,145.45 205,145.45 100.00%
stock Co. LTD recover
129
Wafangdian Bearing Company Limited 2021 Midyear Report
Chengdu sales center (Panzhihua steel group Not expected to
203,004.70 203,004.70 100.00%
Panzhihua vanadium recover
Tianjin Rongtai New composite Material Not expected to
200,000.00 200,000.00 100.00%
Co., LTD recover
Hangzhou Qianjin Gear Box Group Co., Not expected to
199,832.70 199,832.70 100.00%
LTD recover
Not expected to
Hebei Wenfeng Iron & Steel Co. LTD 197,979.65 197,979.65 100.00%
recover
Hubei Wa Axis Xin Sheng Technology Co., Not expected to
188,136.00 188,136.00 100.00%
LTD recover
Not expected to
Nanjing Light Industrial Machinery Factory 185,079.54 185,079.54 100.00%
recover
Not expected to
Gulf World Trading Corporation of India 179,376.85 179,376.85 100.00%
recover
Huaibei Mining (group) coal industry Not expected to
178,580.44 178,580.44 100.00%
Limited liability company materials branch recover
Not expected to
Jiamusi Coal Mine Machinery Co. LTD 171,288.78 171,288.78 100.00%
recover
Xuzhou Sinoma Equipment Heavy Not expected to
170,930.05 170,930.05 100.00%
Machinery Co. LTD recover
Not expected to
Changsha Motor Factory Co. LTD 170,295.76 170,295.76 100.00%
recover
Austria Andritz Technology Co., LTD. Not expected to
166,787.14 166,787.14 100.00%
(Foshan) recover
Not expected to
Xuzhou Meici Bridge Co., LTD 163,037.45 163,037.45 100.00%
recover
Not expected to
Foshan Ketai Electromechanical Co., LTD 160,772.79 160,772.79 100.00%
recover
Not expected to
Siping blower Co., LTD 160,053.21 160,053.21 100.00%
recover
Not expected to
Shenhua Materials Group Co. LTD 155,115.29 155,115.29 100.00%
recover
Not expected to
Hubei All-out Machinery Group Co. LTD 152,489.82 152,489.82 100.00%
recover
Guangdong Zhaoqing Jialong Packaging Not expected to
150,313.94 150,313.94 100.00%
Machinery Group Co. LTD recover
Not expected to
Wuxi Yutong Bearing Co., LTD 149,427.42 149,427.42 100.00%
recover
Zhejiang Tongli Heavy Machinery Not expected to
133,670.00 133,670.00 100.00%
Manufacturing Co., LTD recover
Not expected to
China First Heavy Industry Group Co. LTD 132,135.01 132,135.01 100.00%
recover
Kunming Electric Machinery Factory Co. Not expected to
131,455.02 131,455.02 100.00%
LTD recover
Guilin Hongcheng Mining equipment Not expected to
127,032.49 127,032.49 100.00%
Manufacturing Co. LTD recover
Not expected to
Guangxi Beibu Gulf New Material Co., LTD 126,353.69 126,353.69 100.00%
recover
Shenyang Qunding Machinery Equipment 126,286.35 126,286.35 100.00% Not expected to
130
Wafangdian Bearing Company Limited 2021 Midyear Report
Co., LTD recover
Shenyang Machine Tool (Group) Co., LTD. Not expected to
124,002.02 124,002.02 100.00%
Precision CNC Machine Tool Branch recover
Not expected to
Taiyuan Heavy Industry Co. LTD 121,560.19 121,560.19 100.00%
recover
Not expected to
Zhejiang RIFA Precision Machinery Co.,Ltd. 120,214.46 120,214.46 100.00%
recover
China Railway Materials Shenyang Not expected to
115,750.43 115,750.43 100.00%
Company recover
Wuxi Computer Numerical Control Co., Not expected to
114,412.20 114,412.20 100.00%
LTD recover
John Deere Jia Lian harvesting Machinery Not expected to
114,127.98 114,127.98 100.00%
Co. LTD recover
Not expected to
Orient Iron & Steel Co. LTD 108,997.44 108,997.44 100.00%
recover
Yingkou Jia Chen Burning chemical Co., Not expected to
108,451.55 108,451.55 100.00%
LTD recover
China Pingcoal what energy chemical group Not expected to
104,296.17 104,296.17 100.00%
Limited liability company recover
Not expected to
DBI Corporation of America 102,568.64 102,568.64 100.00%
recover
Changchun Power Generation Equipment Not expected to
100,536.11 100,536.11 100.00%
Co. LTD recover
Not expected to
Other individual provisions 23,143,246.01 23,143,246.01 100.00%
recover
Total 63,407,865.85 63,407,865.85 -- --
Withdrawal of bad debt provision by single item:
In RMB Yuan
Closing balance
name
Book balance Provision for bad debt Provision ratio Provision for
Bad debt provision by combination: 28,386,695.63
In RMB Yuan
Closing balance
name
Book balance Provision for bad debt Provision ratio
Aging combination 787,893,023.63 28,386,695.63 3.60%
Total 787,893,023.63 28,386,695.63 --
In RMB Yuan
Closing balance
name
Book balance Provision for bad debt Provision ratio
Combination of related
215,054,691.15
parties
Total 215,054,691.15 --
Instructions for determining the basis of the combination:
131
Wafangdian Bearing Company Limited 2021 Midyear Report
Bad debt provision shall be drawn by combination:
In RMB Yuan
Closing balance
name
Book balance Provision for bad debt Provision ratio
Instructions for determining the basis of the combination:
If the accounts receivable bad debt provision is drawn according to the general model of expected credit loss, please refer to other
receivables disclosure methods to disclose the relevant information of bad debt provision:
Applicable Inapplicable
Accounts receivable with bad debt provisions drawn according to the combination of credit risk characteristics shall be disclosed
according to the aging method
In RMB Yuan
aging Closing balance
Within 1 year (including 1 year) 980,887,877.30
1 to 2 years 55,372,323.03
2 to 3 years 21,376,208.30
More than 3 years 90,207,565.57
3 to 4 years 15,866,683.20
4 to 5 years 25,358,615.62
More than 5 years 48,982,266.75
Total 1,147,843,974.20
(2) Bad debt provisions drawn, collected or transferred back in the current period
Provision for bad debts in the current period:
In RMB Yuan
Current change amount
Beginning The ending
category withdraw or Cancel after
balance provision other balance
reverse verification
Single
30,000.00 30,000.00
provision
Total 30,000.00 30,000.00
(3) accounts receivable actually written off in the current period
(4) The top five accounts receivable according to the ending balance collected by the debtor
In RMB Yuan
The proportion of
Ending balance of total ending balance Ending balance of allowance
Name
accounts receivable of accounts for bad debts
receivable
Wafangdian bearing group precision roller co.,
62,089,346.19 5.41%
LTD
132
Wafangdian Bearing Company Limited 2021 Midyear Report
Wafangdian bearing Group High-end Auto
42,596,744.51 3.71%
Bearing Co., Ltd.
Taiyuan Material Supply Section of Daqin
32,769,278.70 2.85% 308,227.58
Railway Co., LTD
Dalian wazhou precision motor car bearing co.,
49,150,353.29 4.28%
LTD
Hebei Donghai Special Steel Group Co. LTD 21,503,960.05 1.87% 118,539.60
total 208,109,682.74 18.12%
2. Other receivables
In RMB Yuan
item Closing balance Opening balance
Other accounts receivable 345,885,690.52 13,357,080.42
total 345,885,690.52 13,357,080.42
(1) Interest receivable
(2) Dividends receivable
(3) Other accounts receivable
1) Classification of other receivables by nature
In RMB Yuan
Nature of money Closing book balance Starting book balance
margin 4,579,516.02 6,913,207.78
The deposit 73,869.00 381,780.42
Personal cash 15,721.00 120,512.99
electricity 4,249,167.35 4,895,063.88
Other payments 336,967,417.15 7,024,289.13
total 345,885,690.52 19,334,854.20
2) Provision for bad debts
In RMB Yuan
The first stage The second stage The third stage
Provision for bad debt Expected credit Expected credit loss for Expected credit loss for
Total
losses over the next the entire duration (no the entire duration (credit
12 months credit impairment occurs) impairment incurred)
Balance as of January
5,977,773.78 5,977,773.78
1, 2021
January 1, 2021
balance in current —— —— —— ——
period
Balance on June 30, 5,977,773.78 5,977,773.78
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Wafangdian Bearing Company Limited 2021 Midyear Report
2021
Loss provision Changes in current period significant changes in book balance
Applicable Inapplicable
Disclosure by age
In RMB Yuan
aging Closing balance
Within 1 year (including 1 year) 344,855,005.27
1 to 2 years 515,227.91
2 to 3 years 545,368.17
More than 3 years 5,947,862.95
3 to 4 years 226,230.23
4 to 5 years 151,112.17
More than 5 years 5,570,520.55
Total 351,863,464.30
3) Bad debt provisions drawn, collected or transferred back in the current period
Provision for bad debts in the current period:
In RMB Yuan
Current change amount
category Opening Closing
withdraw or Cancel after
balance provision other balance
reverse verification
Other accounts
receivable bad 5,977,773.78 5,977,773.78
debt provision
Total 5,977,773.78 5,977,773.78
4) Other receivables in the top five of the closing balance collected by the debtor
In RMB Yuan
Ending
The proportion of the
Nature of Closing balance of
Name of the entity aging total closing balance
payment balance allowance for
of other receivables
bad debts
Prepaid Within 1
Liaoning Electric Power Bureau 4,249,167.35 1.23%
electricity year
Luoyang Zhongzhong casting Prepayment More than 5
723,598.86 0.21% 723,598.86
and forging Factory for materials years
Wafangdian Bearing Group Co., Come-and-go Four to five
768,264.15 0.22% 768,264.15
LTD. Lanzhou Sales branch money years
Handan Iron and Steel Group Co. Come-and-go Within 1
314,947.00 0.09% 314,947.00
LTD money year
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Wafangdian Bearing Company Limited 2021 Midyear Report
Yingkou General Bearing Material More than 5
490,288.89 0.14% 490,288.89
Manufacturing Co., LTD money years
total -- 6,546,266.25 -- 1.89% 2,297,098.90
3. Long-term equity investment
In RMB Yuan
Closing balance Opening balance
item Impairment Impairment
Book balance The book value Book balance The book value
loss loss
Invest in
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
(1) Investment in subsidiaries
In RMB Yuan
Increase or decrease in this period Ending
Opening Closing
Add Provision balance of
Investee balance(The Reduce balance(The
invest for other impairment
book value) investment book value)
ment impairment provision
Wazhou liaoyang
bearing
17,337,259.95 17,337,259.95
manufacturing co.,
LTD
Dalian wazhou
precision motor car 45,478,956.37 45,478,956.37
bearing co., LTD
Wazhou precision
spherical roller
148,767,681.3
bearings 148,767,681.35
5
(wafangdian) co.,
LTD
Total 211,583,897.67 211,583,897.67
4. Operating revenue and operating costs
In RMB Yuan
Current account Last period account
item
income cost income cost
Main business 1,109,372,674.86 920,204,788.55 776,299,724.04 573,014,937.70
other business 99,349,644.92 86,519,816.50 129,773,842.04 116,310,521.69
total 1,208,722,319.78 1,006,724,605.05 906,073,566.08 689,325,459.39
5. Investment income
135
Wafangdian Bearing Company Limited 2021 Midyear Report
In RMB Yuan
item Current account Last period account
Dividend income derived from other equity
18,821.12
instrument investments during the holding period
Proceeds from debt restructuring 376,934.17
total 395,755.29
6.other
XVIII. Supplementary information
1. Current non-recurring profit and loss statement
Applicable Inapplicable
In RMB Yuan
item account descriptions
Non-current asset disposal gains and losses -820,370.34
Government subsidies included in the current profits and losses
(closely related to the business of the enterprise, except the
3,063,661.27
government subsidies enjoyed in accordance with the national
unified standard quota or quantitative)
Debt restructuring gains and losses 312,267.65
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
183,361.31
and 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
Non-operating income and expenses other than those
701,102.45
mentioned above
Less: income tax impact 496,348.77
total 2,943,673.57 --
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 the reasons why.
Applicable Inapplicable
2. return on equity and earnings per share
Earnings per share
Weighted average return on
Profit for reporting period Basic Earnings per Diluted Earnings per
equity
share (YUAN/share) Share (YUAN/share)
136
Wafangdian Bearing Company Limited 2021 Midyear Report
Net income attributable to the
0.51% 0.010 0.010
company's common shareholders
Net income attributable to the common
shareholders of a company after
0.15% 0.003 0.003
deducting non-recurring gains and
losses
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profits and net assets in financial reports disclosed in accordance with international accounting Standards and
Chinese accounting standards
Applicable Inapplicable
(2) The difference between the net profit and net assets in the financial reports disclosed in accordance with the overseas accounting
standards and the Chinese accounting standards
Applicable Inapplicable
(3) Explanation of reasons for differences in accounting data under domestic and foreign accounting standards. For the difference
adjustment of data audited by an overseas auditing institution, the name of the overseas auditing institution shall be indicated
4. other
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