Wafangdian Bearing Company Limited 2022 Midyear Report
Wafangdian Bearing Co., LTD
2022 Midyear Report
2022-24
August 2022
Wafangdian Bearing Company Limited 2022 Midyear Report
Chapter I. Important notes, contents and definitions
The board of directors, the Board of supervisors and the directors, supervisors and senior managers of
the company shall guarantee that the contents of the semi-annual report are true, accurate and complete
without any false records, misleading statements or major omissions, and shall bear individual and joint legal
liabilities.
Liu Jun, the person in charge of the company, Sun Najuan, the person in charge of the accounting work,
and Zhang Yajing, the person in charge of the accounting organization (the person in charge of the accounting)
declare that they guarantee the truthfulness, accuracy and completeness of the financial report in the semi-
annual report.
All directors have been present at the board meeting to consider this report.
This semi-annual report relates to future plans and other forward-looking statements, which do not
constitute a material commitment of the Company to investors, investors should be aware of the investment
risks.
The Company describes in detail the possible risks and countermeasures in the operation of the
Company in "X. Risks Faced by the Company and Countermeasures" in "Management's Discussion and
Analysis" in Section 3 of this report. Please pay attention to the relevant contents.
The company does not plan to distribute cash dividends, do not send bonus shares, do not increase
capital stock with accumulation fund.
Wafangdian Bearing Company Limited 2022 Midyear Report
File directory for future reference
(1) The 2022 half-year financial statement of the Company containing the signature and seal of the
legal representative, the person in charge of accounting and the person in charge of accounting;
(2) the semi-annual report containing the signature of the legal representative of the company;
(3) Originals of all documents of the company publicly disclosed in newspapers designated by the
CSRC during the reporting period and manuscripts of announcements.
Wafangdian Bearing Company Limited 2022 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 1,2022–June 30,2022
period
Wazhou Liaoyang Bearing Manufacture
Liaozhou Co.,Ltd Defined as
Co.,Ltd
Dalian motor Defined as Dalian motor Bearing Co.,Ltd
Wazhou spherial roller bearing company
SRB company Defined as
limited
Wafangdian Bearing Company Limited
The Board of Directors Defined as
The Board of Directors
Wafangdian Bearing Company Limited
The Supervisory Committee Defined as
The Supervisory Committee
Wafangdian Bearing Company Limited
The Shareholders’ Meeting Defined as
The Shareholders’ Meeting
SZSE Defined as Shen Zhen Stock Exchange
SRC Defined as China Securities Regulatory Commission
Wafangdian Bearing Company Limited 2022 Midyear Report
Chapter II.Company Profile
I. Company Information
Abbreviated name of the stock Wazhou B Stock code: 200706
Listing location of the Company’s
Shenzhen Stock Exchange
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 2021 annual report.
3. Other relevant information
Whether other relevant information has changed during the reporting period
□ Applicable Inapplicable
IV. Main accounting data and financial indicators
Whether the company needs to retroactively adjust or restate the previous year's accounting data
Yes No
+/-comparing with the previous
current period previous period
period
Operating income (yuan) 1,085,817,104.92 1,081,064,853.66 0.44%
Net profit attributable to -37,455,779.00 4,192,143.24 -993.48%
shareholders of the listed
Wafangdian Bearing Company Limited 2022 Midyear Report
company (Yuan)
Net profit attributable to
shareholders of the listed
company after deducting -48,678,502.01 1,248,469.67 -3,999.05%
non-recurring gains and
losses (Yuan)
Net cash flow from operating
-13,585,174.40 31,402,343.49 -143.26%
activities (Yuan)
Basic earnings per share
-0.0930 0.0104 -994.23%
(Yuan/share)
Diluted earnings per share
-0.0930 0.0104 -994.23%
(Yuan/share)
Weighted average return on
-6.35% 0.51% -6.86%
equity
+/-comparing with the previous
current period previous period
period
Total assets (yuan) 3,336,775,865.03 3,220,126,105.01 3.62%
Net assets attributable to
shareholders of the listed 571,664,884.76 608,267,282.47 -6.02%
company (Yuan)
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
1,922,817.50
portion of the asset impairment provision)
Government subsidies included in the current profits and losses
(closely related to the business of the enterprise, except the
4,020,036.02
government subsidies enjoyed in accordance with the national
unified standard quota or quantitative)
Debt restructuring gains and losses 3,823,030.26
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 -27,735.33
derivative financial liabilities to generate profits and losses, as well
as the disposal of tradable financial assets, derivative financial
Wafangdian Bearing Company Limited 2022 Midyear Report
assets, tradable financial liabilities, derivative financial liabilities and
other creditor's rights investment returns
Non-operating income and expenses other than those mentioned
3,478,203.63
above
Less: income tax impact 1,993,629.07
A combined 11,222,723.01
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
□ Applicable Not applicable
The company does not have other specific circumstances of profit and loss items that meet the definition of non-recurring profit and loss.
The non-recurring profit and loss items listed in Explanatory Announcement No. 1 -- Non-Recurring Profit and Loss of Companies with Publicly
Issued Securities are defined as recurring profit and loss items
□ Applicable Not applicable
The company does not define the non-recurring profit and loss items listed in Explanatory Announcement No. 1 -- Non-Recurring Profit and Loss as
recurring profit and loss items.
Wafangdian Bearing Company Limited 2022 Midyear Report
Chapter III Management Discussion and analysis
I. Major business of the Company during the reporting period
During the reporting period, the company's main business is the production and sales of rolling mill bearings, rail transit bearings, metallurgical mine
bearings, cement machinery bearings, transmission bearings, construction machinery bearings, precision machinery bearings.
Operating revenue in the first half of 2022 was 1.086 billion yuan, with a loss of 37.46 million yuan. The total assets of the company are about 3.337
billion yuan and the net assets are about 571 million yuan.
II. core competitiveness analysis
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 perfect bearing technology innovation system, and maintains close cooperation with
domestic research institutes and universities. As the main drafter of several standards in the bearing industry, we grasp the latest technological
trends in the development of the industry. In technology research and development, product manufacturing, marketing and user services have
established significant advantages.
The company's personalized design and manufacturing process for customers can take into account the cost, delivery time and customer needs,
and improve the ability to respond to the market and customer personalized needs.
The company has a complete product service system, with all-weather dynamic service capability for product operation site. And with the "ten
value-added services" good image and by the majority of customers praise. The company has a strong production and manufacturing capacity and
quality assurance ability, a wide range of services in railway, metallurgy, mining and other industries and fields.
At present, the company has established strategic cooperative relations with key customers in the field of equipment application in China. By
engaging in customer value engineering and carrying 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 successively obtained the certification qualification of the important target
market, and the international visibility has been preliminarily established.
III. Analysis of main business
An overview of the
Please refer to the relevant content of "I. Main Business Engaged in by the Company during the Reporting Period".
Major financial data year-on-year changes
In RMB Yuan
the current reporting (+/-）Compared with the
Same period last year Cause of change
period same period last year
Operating income 1,085,817,104.92 1,081,064,853.66 0.44%
Operating cost 915,897,528.27 843,286,589.10 8.61%
Cost of sales 62,863,485.66 66,917,757.71 -6.06%
Management fees 49,468,091.40 45,845,225.31 7.90%
Finance charges 18,083,986.81 21,315,656.48 -15.16%
R&d spending 84,475,472.06 98,277,786.26 -14.04%
Net cash flow from operating -13,585,174.40 31,402,343.49 -143.26%
Wafangdian Bearing Company Limited 2022 Midyear Report
activities
Net cash flow from investing
-733,295.01 1,123,037.70 -165.30%
activities
Net cash flow from financing
129,738,731.42 1,642,489.74 7,798.91%
activities
Net increase in cash and
116,285,166.75 33,151,074.54 250.77%
cash equivalents
Major changes occurred in the composition or source of profits during the reporting period
There was no significant change in the composition or source of profits during the reporting period.
Composition of operating revenue
In RMB Yuan
the current reporting period Same period last year
(+/-）Compared
Proportion of
Proportion of with the same period
Amount operating Amount
operating income last year
income
Total operating
1,085,817,104.92 100% 1,081,064,853.66 100% 0.44%
Revenue
Industry-classified
exit 82,629,445.62 7.61% 84,996,299.57 7.86% -2.78%
Traffic bearing 222,735,286.82 20.51% 222,058,260.14 20.54% 0.30%
Special bearings 114,520,039.71 10.55% 174,002,173.00 16.10% -34.18%
General bearing 537,584,763.94 49.51% 472,073,371.26 43.67% 13.88%
Industrial operation 22,221,619.62 2.05% 26,193,575.14 2.42% -15.16%
Other business income 106,125,949.21 9.77% 101,741,174.55 9.41% 4.31%
Products-classified
bearing 957,469,536.09 88.18% 953,130,103.97 88.17% 0.46%
Industrial operation 22,221,619.62 2.05% 26,193,575.14 2.42% -15.16%
Other business income 106,125,949.21 9.77% 101,741,174.55 9.41% 4.31%
Region-classified
domestic 1,003,187,659.30 92.39% 996,068,554.09 92.14% 0.71%
foreign 82,629,445.62 7.61% 84,996,299.57 7.86% -2.78%
The industry, product or region that accounts for more than 10% of the company's operating revenue or profit
Applicable □ Not applicable
In RMB Yuan
Operating Operating costs Gross profit margin
income increased or increased or
Gross
Operating compared decreased decreased
Operating cost profit
income with the compared to the compared to the
margin
same period same period of the same period of the
last year previous year previous year
Industry-classified
exit 82,629,445.62 77,863,680.53 5.77% -2.78% -8.23% 5.60%
domestic 874,840,090.47 739,363,093.09 15.49% 0.77% 17.13% -11.81%
Among them:
222,735,286.82 202,031,452.10 9.30% 0.30% 2.01% -1.51%
traffic bearings
Special
114,520,039.71 107,847,527.85 5.83% -34.18% 270.61% -77.45%
bearings
Wafangdian Bearing Company Limited 2022 Midyear Report
General
537,584,763.94 429,484,113.14 20.11% 13.88% 6.30% 5.70%
bearing
The bearing 128,347,568.83 98,670,754.65 23.12% 0.32% -14.38% 13.21%
Points products
bearing 957,469,536.09 817,226,773.62 14.65% 0.46% 14.13% -10.23%
The bearing 128,347,568.83 98,670,754.65 23.12% 0.32% -14.38% 13.21%
Points in
1,003,187,659.
domestic 838,033,847.74 16.46% 0.71% 12.27% -8.60%
30
foreign 82,629,445.62 77,863,680.53 5.77% -2.78% -8.23% 5.60%
In case of any adjustment of the statistical caliber of the company's main business data during the reporting period, the company's main business
data in the latest period shall be adjusted according to the caliber of the end of the reporting period
□ Applicable Not applicable
The reason why the relevant data changed by more than 30% year on year is explained
□ Applicable Not applicable
IV. Analysis of non-main business
□ Applicable Not applicable
V. Analysis of assets and liabilities
1. Major changes in asset composition
In RMB Yuan
the current reporting period Same period last year
The proportion of
Proportion of Note on Major
Proportion of increase and
Amount operating Amount Changes
operating income decrease
income
Monetary fund 312,257,531.66 9.36% 286,476,701.69 8.90% 0.46%
Accounts
1,019,437,569.27 30.55% 999,454,308.40 31.04% -0.49%
receivable
Contract
5,009,783.66 0.15% 3,763,781.55 0.12% 0.03%
assets
inventory 753,938,461.85 22.59% 710,611,964.20 22.07% 0.52%
Investment
66,886,234.97 2.00% 68,862,311.38 2.14% -0.14%
real estate
Fixed assets 404,004,529.89 12.11% 438,220,714.18 13.61% -1.50%
Projects under
54,169,088.82 1.62% 25,929,699.29 0.81% 0.81%
construction
Short-term
754,000,000.00 22.60% 677,000,000.00 21.02% 1.58%
borrowing
Contract
52,233,027.61 1.57% 38,426,632.29 1.19% 0.38%
liability
2. Main overseas assets
Applicable Inapplicable
3. Assets and liabilities measured at fair value
Applicable Inapplicable
In RMB Yuan
Changes
Changes in Impairment
in the Current
Opening fair value for of the Current sale Other
item accumulated fair purchase item
balance the current current amount changes
value of an amount
period period
equity
Wafangdian Bearing Company Limited 2022 Midyear Report
Financial
assets
1. Trading
financial
assets
(excluding 322,037.93 -27,735.33 -272,730.70 294,302.60
derivative
financial
assets)
The above
322,037.93 -27,735.33 -272,730.70 294,302.60
total
Financial
0.00 0.00 0.00
liabilities
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
In RMB Yuan
Chang
Chang es in
The Curren Report
Accou e in the
Varieti securiti Initial Openi t Curren ing Source
nting fair cumul Ending Accou
es of Stock es invest ng purcha t sale period s of
measu value ative book nting
securiti code referre ment book se amoun profit fundin
rement for the fair value subject
es d to cost value amoun t and g
model current value
as" t loss
period of
equity
Chong Transa
Domes Fair
qing - - - ctional debt-
tic and 60100 567,03 value 322,03 294,30
iron 27,735 272,73 27,735 financi for-
foreign 5 3.30 measu 7.93 2.60 al equity
and .33 0.70 .33
stocks rement assets
steel
- - -
567,03 322,03 294,30
Total -- 27,735 272,73 0.00 0.00 27,735 -- --
3.30 7.93 2.60
.33 0.70 .33
(2) Derivative investment
Applicable Inapplicable
There were no derivatives investments during the reporting period.
5. Use of raised funds
□ Applicable Not applicable
There is no use of raised funds during the reporting period.
VII Sale of major assets and shares
1. Sale of major assets
Wafangdian Bearing Company Limited 2022 Midyear Report
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.
The main subsidiaries and the shareholding companies that have more than 10% impact on the company's net profit
In RMB Yuan
The The
The name of The main Operating Operating
company registered Total assets Net worth Net profit
the company business income profit
type capital
Production
Wazhou and sales
liaoyang of bearings -
19,350,000. 241,859,476 72,345,879.
bearing and 64,971,087. -626,961.99 44,905.56
00 .59 45
manufacturin machinery 95
g co., LTD manufactu
ring
Dalian
wazhou
Production - - -
precision 10,000,000. 233,302,107 85,719,023.
and sales 33,322,224. 11,036,191. 11,042,326.
motor car 00 .55 10
of bearings 86 77 29
bearing co.,
LTD
Wazhou
Production
precision
and sales
spherical - -
of 194,000,000 392,199,701 178,163,092 128,565,969
roller 9,268,236.3 9,268,023.8
spherical .00 .27 .00 .17
bearings 6 2
roller
(wafangdian)
bearings
co., LTD
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable □ Not applicable
Description of main holding companies
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
Wafangdian Bearing Company Limited 2022 Midyear Report
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.
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 participation
Meeting session Type Meeting Date Disclosure Date Disclosure index
ratio
2021 Annual
Annual shareholders’
shareholders’ 2022.05.18 2022.05.19
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
Leave office at the end of Leave office at the end of
Tang Yurong director May 19, 2022
a term one's term
Leave office at the end of Leave office at the end of
Liu Yuping The independent director May 19, 2022
a term one's term
Leave office at the end of Leave office at the end of
Li Xiumin The supervisors May 19, 2022
a term one's term
Zhao Qingtao director elected May 19, 2022 elected
Wen Bo The independent director elected May 19, 2022 elected
Wang Lin The supervisors elected May 19, 2022 elected
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.
Wafangdian Bearing Company Limited 2022 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
Refer to other environmental information disclosed by key polluters
The company conscientiously implements the ISO14001 environmental management system standard, through the environmental system internal
audit, supervision audit and external audit, make the environmental management system effective operation. We earnestly implemented the rules
and regulations of environmental protection, actively cooperated with the superior departments to carry out environmental protection supervision
and management, strengthened the self-inspection of environmental protection on the production site, strengthened the online monitoring of
sewage discharge, sewage discharge sampling comparison test and effectiveness audit, and effectively controlled the discharge of pollutants.
Strengthen waste recycling, standardized disposal of hazardous waste, promote the construction of enterprise resource circulation. According to
the environmental emergency response plan prepared by the company,? Organized the fire emergency drill at the fire scene,? The feasibility of the
emergency plan has been tested. Ensure that the emergency response team can work quickly, orderly and efficiently in accordance with the
emergency response plan procedures.
Measures taken to reduce their carbon emissions during the reporting period and their effects
□ Applicable Not applicable
Reasons for not disclosing other environmental information
There is no
II. Social responsibility
As a large state-owned ENTERPRISE, the COMPANY's largest shareholder, Shaxuan Group, accepts the unified leadership of the government of
Liaoning Province, Dalian City and Wafangdian City in poverty alleviation work, and the company accepts the leadership of Shaxuan Group in
poverty alleviation work. Considering the characteristics of the enterprise and the actual situation of the "state-owned" enterprise, the poverty
alleviation work of the company is completed in accordance with the unified deployment of the provincial Party Committee and the Municipal Party
Committee, and the major shareholder, the Tile axis Group, is coordinated to complete the external work, so as to jointly establish the unified social
responsibility image of the "tile axis people".
In recent years, it has dispatched village cadres to the surrounding areas of Dalian, with five cadres at the middle and grassroots level serving as
the first secretary to support rural construction and assume social responsibilities, providing counterpart assistance to rural areas in terms of party
affairs construction, rural revitalization, poverty alleviation and expansion of the collective economy.
In the fight against COVID-19, the first secretary of the village organized the two committees to set up a joint prevention and control working group
to mobilize the epidemic prevention and control work. According to the work requirements of the superiors, the publicity of epidemic prevention and
control was strengthened by hanging banners, Posting announcements and sending mass messages on wechat, and the prevention and control
measures were improved.
Through written and wechat working groups, the registration and filing management of personnel should be standardized to effectively control the
epidemic and play a better role.
Wafangdian Bearing Company Limited 2022 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
Wafangdian Bearing Co., LTD 2022 Midyear Report
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
XI. Major related Party Transactions
1. Related party transactions related to daily operations
Applicable Inapplicable
Principles
Content Related As a Approved Whether it The market
Types of of pricing Settlement
of Related Transaction percentage Transaction exceeds price Date of Disclos
Related Related related method of
correlation Related transactio Amount (ten of the value Amount (ten the available for disclosur ure
party Transactio party related party
Transacti n price thousand of similar thousand approved similar e index
ns transaction transactions
ons yuan) transactions yuan) limit transactions
s
Wafangdian Controlling Purchase
Purchas http://w
Bearing sharehold spare parts The Cash payment
e of A fair and April 26, ww.cnin
Group Co., er and its from marketizati 42,709 0.83% 110,800 no or cash none
spare just 2022 fo.com.
Ltd. And its subsidiarie related on settlement
parts cn
subsidiaries s parties
Purchase
Wafangdian Controlling
bearing Purchasi http://w
Bearing sharehold The Cash payment
products ng A fair and April 26, ww.cnin
Group Co., er and its marketizati 3,055 0.06% 11,000 no or cash none
from bearing just 2022 fo.com.
Ltd. And its subsidiarie on settlement
related Products cn
subsidiaries s
parties
Wafangdian Controlling
Sell http://w
Bearing sharehold The Cash payment
products to Selling A fair and April 26, ww.cnin
Group Co., er and its marketizati 11,445 0.54% 34,820 no or cash none
related products just 2022 fo.com.
Ltd. And its subsidiarie on settlement
parties cn
subsidiaries s
Wafangdian Controlling
Sale of http://w
Bearing sharehold The Cash payment
goods to Sales of A fair and April 26, ww.cnin
Group Co., er and its marketizati 5,543 26.00% 18,231 no or cash none
related goods just 2022 fo.com.
Ltd. And its subsidiarie on settlement
parties cn
subsidiaries s
16
Wafangdian Bearing Co., LTD 2022 Midyear Report
A combined -- -- 62,752 -- 174,851 -- -- -- -- --
Details of return of large sales There is no
Where the total amount of daily connected
transactions that will occur in the current period is
Do not apply
estimated by category, actual performance during the
reporting period (if any)
Reasons for large difference between transaction
Do not apply
price and market reference price (if applicable)
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
17
Wafangdian Bearing Co., LTD 2022 Midyear Report
The company has no non-operating associated creditor's rights or debts during the reporting period.
5. Dealings with related financial companies
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. Transactions between financial companies controlled by the company and related parties
Applicable Inapplicable
There is no deposit, loan, credit or other financial business between the finance company controlled by the company and the related parties.
7. 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
All the leases of the Company are affiliated leases. For details, see Section 10 Financial Report 12 Related Parties and Affiliated Transactions 5
Related Transactions (3) Related Leases
Projects that bring profits and losses to the company to reach more than 10% of the total profit of the company during the reporting period
□ Applicable □ Not applicable
During the reporting period, there is no leasing project whose profit or loss for the company reaches more than 10% of the total profit of the
company.
2. Material guarantee
□ Applicable Not applicable
There is no major guarantee during the reporting period.
3. Entrust financial management
□ Applicable Not applicable
There is no entrusted financial management during the reporting period.
4. Other major contracts
□ Applicable Not applicable
There are no other major contracts in the reporting period.
XII. Explanation of other major matters
□ Applicable □ Not applicable
There are no other major matters that need to be explained during the reporting period.
18
Wafangdian Bearing Co., LTD 2022 Midyear Report
XIV.Major matters of the company's subsidiaries
□ Applicable Not applicable
19
Wafangdian Bearing Co., LTD 2022 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
Issuing Reserve
Send
number proportion new fund other subtotal number proportion
shares
shares conversion
I. Unlisted and 244,000,00
244,000,000.0 60.61% 60.61%
circulating shares 0.0
1. Shares of the 244,000,00
244,000,000.0 60.61% 60.61%
sponsors 0.0
Among them: the 244,000,00
244,000,000.0 60.61% 60.61%
state holds shares 0.0
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 158,600,00
158,600,000.0 39.39% 39.39%
circulating shares 0.0
1. RMB ordinary
shares
2. Foreign capital
158,600,00
stocks listed in 158,600,000.0 39.39% 39.39%
China 0.0
3. Foreign capital
stocks listed
abroad
4, other
III. Total number of 402,600,00
402,600,000.0 100.00% 100.00%
shares 0.0
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
20
Wafangdian Bearing Co., LTD 2022 Midyear Report
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
shareholders with voting
Total number of common shareholders
at the end of reporting period 5,533 rights restored at the 0
reporting End (if any)
(see Note 8)
Shares held by common shareholders holding more than 5% or the top 10 common shareholders
Number of Number of The condition of a pledge,
Number of
common Change listed and mark, or freeze
unlisted and
Nature of the shares held at s in the tradable
Shareholder's name stake tradable
shareholders the end of the reportin ordinary Shares in The number
ordinary
reporting g period shares state of
shares held
period held
Wafangdian Bearing State-owned 244,000,000. 244,000,000.
Group Co., Ltd. legal person 60.61% 00 00
AKTIEBOLAGET Foreign legal 79,300,00
SKF person 19.70% 79,300,000 0
China Merchants
State-owned
Securities Hong 1.99% 8,010,391 8,010,391
legal person
Kong Limited
Domestic
Huang Junyue 1.77% 7,132,068 7,132,068
natural person
Domestic
Hu Xiaofeng 0.47% 1,879,277 1,879,277
natural person
BOCI SECURITIES Foreign legal
LIMITED person 0.33% 1,310,000 1,310,000
GUOTAI JUNAN
Foreign legal
SECURITIES(HON 0.26% 1,039,511 1,039,511
person
GKONG) LIMITED
Domestic
Meng Qingliang 0.24% 961,748 961,748
natural person
Domestic
Jin Yunhua 0.18% 728,000 728,000
natural person
MAN,KWAI WING Foreign natural
文贵荣 person 0.18% 713,101 713,101
Situations in which strategic investors
or general legal persons are among the
top 10 common shareholders due to the There is no
placement of new shares (if any) (see
Note 3)
Among the top ten shareholders of the company, there is no related relationship or concerted action
between the largest shareholder and other shareholders, and the top ten shareholders of tradable
A statement of such shareholder
shares. The related relationship and concerted action between other shareholders, the top ten
association or concerted action
shareholders of tradable shares and the top ten shareholders of tradable shares and other
shareholders is unknown.
The above shareholders involved in the
There is no
trustee/trustee voting rights, waiver of
21
Wafangdian Bearing Co., LTD 2022 Midyear Report
voting rights of the explanation
Special description of the existence of a
repurchase account among the top 10 There is no
shareholders (if any) (see Note 11)
The shareholding of the top 10 outstanding common shareholders
Stake species
Number of listed and circulating common shares held at the end of the
Shareholder's name Stake The number
report
species of
AKTIEBOLAGET SKF 79,300,000 B 79,300,000
China Merchants Securities Hong Kong
8,010,391 B 8,010,391
Limited
Huang Junyue 7,132,068 B 7,132,068
Hu Xiaofeng 1,879,277 B 1,879,277
BOCI SECURITIES LIMITED 1,310,000 B 1,310,000
GUOTAI JUNAN
1,039,511 B 1,039,511
SECURITIES(HONGKONG) LIMITED
Meng Qingliang 961,748 B 961,748
Jin Yunhua 728,000 B 728,000
MAN,KWAI WING 文贵荣 713,101 B 713,101
Jiang Guangsen 687,900 B 687,900
A description of the association or
Among the top ten shareholders of the company, there is no related relationship or concerted action
concerted action between the top 10
between the largest shareholder and other shareholders, and the top ten shareholders of tradable
Unlimited-Sale common shareholders
shares. The related relationship and concerted action between other shareholders, the top ten
and the top 10 Unlimited-Sale Common
shareholders of tradable shares and the top ten shareholders of tradable shares and other
Shareholders and the top 10 Common
shareholders is unknown.
Shareholders
Description of Top 10 Common
Shareholders Participating in Margin There is no
Trading (if any) (see Note 4)
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
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.
22
Wafangdian Bearing Co., LTD 2022 Midyear Report
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
23
Wafangdian Bearing Co., LTD 2022 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 2022.6.30 2022.1.1
Current Assets:
Monetary fund 312,257,531.66 286,476,701.69
Provision for settlement
Lending money,
Trading financial assets 294,302.60 322,037.93
Derivative financial assets
Notes receivable 498,970,181.34 507,971,133.69
Accounts receivable 1,019,437,569.27 999,454,308.40
Financing of receivables 69,565,892.99 28,115,340.20
prepayments 50,635,799.76 46,305,700.50
Premiums receivable
Reinsurance accounts receivable
Reserves for reinsurance contracts receivable
Other Accounts Receivable 13,876,214.45 9,531,860.12
Among them: interest receivable
Dividends receivable
Buy financial assets for resale
inventory 753,938,461.85 710,611,964.20
Contract assets 5,009,783.66 3,763,781.55
Holding assets for sale
Non-current assets due within one year
Other current assets 659,545.15 5,627,951.08
Total current assets 2,724,645,282.73 2,598,180,779.36
Non-current assets:
Make loans and advances
Creditor's rights investment
Other creditor's rights investment
24
Wafangdian Bearing Co., LTD 2022 Midyear Report
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 66,886,234.97 68,862,311.38
Fixed assets 404,004,529.89 438,220,714.18
Projects under construction 54,169,088.82 25,929,699.29
Productive biological asset
Oil and gas assets
Assets for use
Intangible assets 75,002,618.92 76,812,955.92
The development of spending
goodwill
Long-term deferred expenses 141,253.06 192,788.24
Deferred tax assets
Other non-current assets
Total non-current assets 612,130,582.30 621,945,325.65
Total assets 3,336,775,865.03 3,220,126,105.01
Current liabilities:
Short-term borrowing 754,000,000.00 677,000,000.00
Borrow from the central bank
Funds borrowed from
Trading financial liabilities
Derivative financial liability
Notes payable 303,601,000.00 306,258,189.60
Accounts payable 1,331,925,238.68 1,248,850,328.84
Advance payment
Contract liability 52,233,027.61 38,426,632.29
Sell to repurchase financial assets
Absorb deposits and interbank deposits
Agent buying and selling securities
Acting underwriting securities
Staff remuneration payable 18,675,886.44 54,396,857.78
Payable taxes 15,392,839.04 11,585,889.46
Other payables 187,014,893.16 173,782,184.85
Among them: interest payable
Dividends payable
Charges and commissions payable
Reinsurance accounts payable
Holding liabilities for sale
Non-current liabilities due within one year
Other current liabilities 6,672,010.89 4,995,462.19
25
Wafangdian Bearing Co., LTD 2022 Midyear Report
Total current liabilities 2,669,514,895.82 2,515,295,545.01
Non-current Liabilities:
Insurance contract reserve
Long-term borrowing
Bonds payable
Among them: Preferred stock
Sustainable debt
Lease liability
Long term payables 344,974.84 344,974.84
Long-term employee compensation payable
Estimated debts 42,813,438.74 41,401,450.14
Deferred revenue 51,754,434.42 54,133,616.10
Deferred tax liability 683,236.45 683,236.45
Other non-current liabilities
Total non-current liabilities 95,596,084.45 96,563,277.53
Total liabilities 2,765,110,980.27 2,611,858,822.54
Owner's equity:
equity 402,600,000.00 402,600,000.00
Other equity instruments
Among them: Preferred stock
Sustainable debt
Capital reserves 485,691,050.47 485,691,050.47
Minus: Treasury stock
Other comprehensive income
The special reserve 853,381.29
Surplus reserves 136,770,391.01 136,770,391.01
General risk provision
Undistributed profit -454,249,938.01 -416,794,159.01
Total owner's equity attributable to parent company 571,664,884.76 608,267,282.47
Minority shareholders' equity
Total owners' equity 571,664,884.76 608,267,282.47
Total liabilities and equity 3,336,775,865.03 3,220,126,105.01
Chairman: Liu Jun General Accountant : Sun Najuan Accounting charger: Zhang Yajing
2. Balance sheet of parent company
In RMB Yuan
Item 2022.6.30 2022.1.1
Current Assets:
Monetary fund 295,991,790.09 266,391,019.57
Trading financial assets 294,302.60 322,037.93
Derivative financial assets
Notes receivable 366,209,143.29 384,127,628.21
Accounts receivable 990,331,836.04 989,131,349.43
Financing of receivables 64,605,176.77 25,846,597.90
prepayments 39,096,344.70 45,293,827.24
Other Accounts Receivable 312,549,340.46 216,805,848.85
26
Wafangdian Bearing Co., LTD 2022 Midyear Report
Among them: interest receivable
Dividends receivable 11,843,105.36 11,843,105.36
inventory 428,114,523.79 432,948,513.08
Contract assets 5,009,783.66 3,763,781.55
Holding assets for sale
Non-current assets due within one year
Other current assets 604,446.80 5,578,651.12
Total current assets 2,502,806,688.20 2,370,209,254.88
Non-current assets:
Creditor's rights investment
Other creditor's rights investment
Long term receivables
Long-term equity investment 224,923,897.67 221,583,897.67
Investment in other equity instruments 11,926,856.64 11,926,856.64
Other non-current financial assets
Investment real estate 60,953,166.15 62,467,475.43
Fixed assets 254,664,774.52 281,860,555.75
Projects under construction 40,018,616.78 16,015,536.23
Productive biological asset
Oil and gas assets
Assets for use
Intangible assets 59,522,088.69 60,997,429.59
The development of spending
goodwill
Long-term deferred expenses 141,253.06 169,515.71
Deferred tax assets
Other non-current assets
Total non-current assets 652,150,653.51 655,021,267.02
Total assets 3,154,957,341.71 3,025,230,521.90
Current liabilities:
Short-term borrowing 754,000,000.00 677,000,000.00
Trading financial liabilities
Derivative financial liability
Notes payable 303,601,000.00 306,258,189.60
Accounts payable 1,072,759,189.46 998,237,900.39
Advance payment
Contract liability 51,692,970.91 38,079,613.90
Staff remuneration payable 12,664,457.92 44,664,395.47
Payable taxes 8,477,330.03 6,197,641.73
Other payables 166,962,768.33 154,405,674.18
Among them: interest payable
Dividends payable
27
Wafangdian Bearing Co., LTD 2022 Midyear Report
Holding liabilities for sale
Non-current liabilities due within one year
Other current liabilities 6,672,010.89 4,950,349.81
Total current liabilities 2,376,829,727.54 2,229,793,765.08
Non-current Liabilities:
Long-term borrowing
Bonds payable
Among them: Preferred stock
Sustainable debt
Lease liability
Long term payables 244,974.84 244,974.84
Long-term employee compensation payable
Estimated debts 42,792,020.63 41,385,028.44
Deferred revenue 22,243,288.63 24,622,470.31
Deferred tax liability
Other non-current liabilities
Total non-current liabilities 65,280,284.10 66,252,473.59
Total liabilities 2,442,110,011.64 2,296,046,238.67
Owner's equity:
equity 402,600,000.00 402,600,000.00
Other equity instruments
Among them: Preferred stock
Sustainable debt
Capital reserves 485,678,443.26 485,678,443.26
Minus: Treasury stock
Other comprehensive income
The special reserve 853,381.29
Surplus reserves 136,770,391.01 136,770,391.01
Undistributed profit -313,054,885.49 -295,864,551.04
Total owners' equity 712,847,330.07 729,184,283.23
Total liabilities and equity 3,154,957,341.71 3,025,230,521.90
3. Consolidated income statement
In RMB Yuan
project Half year 2022 Half of 2021
I. Total operating income 1,085,817,104.92 1,081,064,853.66
Among them: operating income 1,085,817,104.92 1,081,064,853.66
Interest income
The premium has been made
Fee and commission income
2. Total operating cost 1,137,250,489.49 1,083,628,314.10
Among them: operating cost 915,897,528.27 843,286,589.10
The interest payments
Fees and commission expenses
Surrender gold
28
Wafangdian Bearing Co., LTD 2022 Midyear Report
Net payout for claims
Draw the net insurance liability reserve
Policy bonus payout
Reinsurance expenses
Taxes and surcharges 6,461,925.29 7,985,299.24
Cost of sales 62,863,485.66 66,917,757.71
Management fees 49,468,091.40 45,845,225.31
Research and development costs 84,475,472.06 98,277,786.26
Finance charges 18,083,986.81 21,315,656.48
Among them: interest expense 16,136,493.70 14,013,998.99
Interest income 621,277.50 240,304.64
Plus: other benefits 4,020,036.02 3,063,661.27
Investment income (loss marked with "-") 3,841,851.38 870,263.42
Among them: income from investment in joint ventures and joint
ventures
Financial assets measured at amortized cost terminate
recognition of earnings
Exchange gain (marked with "-" for loss)
Net exposure hedging gain (loss marked with "-")
Income from change in fair value (marked with "-" for loss) -27,735.33 183,361.31
Credit impairment loss (marked with "-") 761,253.49 30,000.00
Asset impairment loss (marked with "-")
Gain on disposal of assets (loss marked with "-") 1,916,580.72 2,727,585.57
3. Operating profit (loss marked with "-") -40,921,398.29 4,311,411.13
Plus: non-operating income 3,510,232.39 817,656.00
Less: non-operating expenses 44,613.10 936,923.89
Iv. Total profit (total loss marked with "-") -37,455,779.00 4,192,143.24
Less: Income tax expense
V. Net profit (Net loss marked with "-") -37,455,779.00 4,192,143.24
(a) classification according to business continuity
1. Net profit from continuing operations (net loss marked with "-") -37,455,779.00 4,192,143.24
2. Net profit from terminated operations (net loss marked with "-")
(2) Classification according to ownership
1. Net profit attributable to the owner of the parent company -37,455,779.00 4,192,143.24
2. Profit and loss of minority shareholders
Net after tax of other comprehensive income
Net after tax of other comprehensive income attributable to owner of parent
company
(1) Other comprehensive income that cannot be reclassified into profit or
loss
1. Re-measure the amount of change in 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 instrument investments
4. The fair value change of the enterprise's own credit risk
5. Other
(2) Other comprehensive income reclassified into profit and loss
1. Other comprehensive income that can be transferred to profit or loss
29
Wafangdian Bearing Co., LTD 2022 Midyear Report
under the equity method
2. Changes in fair value of other debt investments
3. The amount of financial assets reclassified into other comprehensive
income
4. Provision for impairment of other creditor's rights investment credit
5. Cash flow hedging reserve
6. Translation difference of foreign currency financial statements
7. Other
Net after tax of other comprehensive income attributable to minority
shareholders
7. Total comprehensive income -37,455,779.00 4,192,143.24
Total comprehensive income attributable to owner of parent company -37,455,779.00 4,192,143.24
Total comprehensive income attributable to minority shareholders
8. Earnings per Share
(1) Basic earnings per share -0.0930 0.0104
(2) Diluted earnings per share -0.0930 0.0104
Chairman: Liu Jun General Accountant : Sun Najuan Accounting charger: Zhang Yajing
4. Profit statement of the parent company
In RMB Yuan
ITEM Half year 2022 Half of 2021
I. Operating income 1,107,035,197.98 1,208,722,319.78
Minus: Operating costs 930,698,932.84 1,018,706,609.90
Taxes and surcharges 5,640,635.84 7,111,149.37
Cost of sales 59,438,922.62 40,993,160.68
Management fees 39,762,798.70 29,681,629.16
Research and development costs 82,248,626.79 95,537,317.61
Finance charges 17,842,133.27 21,341,481.25
Including: interest expense 16,136,493.70 14,013,998.99
Interest income 583,954.05 201,513.60
Plus: Other benefits 3,643,789.38 2,957,430.25
Investment income (Loss marked with "-") 2,313,263.02 395,755.29
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 "-")
Gains from changes in fair value (loss marked with "-") -27,735.33 183,361.31
Credit impairment loss (marked with "-") 760,946.12 30,000.00
Asset impairment loss (marked with "-")
Income from asset disposal (marked with "-" for loss) 1,916,580.72 2,101,609.41
II. Operating profit (Loss marked with "-") -19,990,008.17 1,019,128.07
Add: non-operating income 2,838,150.86 218,265.92
Less: non-operating expenses 38,477.14 909,209.72
III. Total profit (Total loss marked with "-") -17,190,334.45 328,184.27
Less: income tax expense
IV. Net Profit (Net loss marked with "-") -17,190,334.45 328,184.27
(1) Net profit from continuing operations (net loss marked with "-") -17,190,334.45 328,184.27
(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
30
Wafangdian Bearing Co., LTD 2022 Midyear Report
(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 -17,190,334.45 328,184.27
VII. Earnings per Share:
(1) Basic earnings per share -0.0427 0.0008
Diluted earnings per share -0.0427 0.0008
5. Consolidated cash flow statement
In RMB Yuan
project Half year 2022 Half of 2021
I. Cash flow generated by operating activities:
Cash received from selling goods and providing services 511,896,957.53 651,887,024.41
Net increase in customer deposits and interbank deposits
Net increase in borrowing from central banks
Net increase in funds borrowed from other financial institutions
Cash obtained by receipt of premiums from the original insurance contract
Net cash received for reinsurance operations
Net increase in deposit and investment funds
Cash that receives interest, charges and commissions
Net increase in borrowed funds
Net increase in funds for repurchase operations
Net cash received from agents buying and selling securities
Refund of taxes received 18,818,823.87 9,745,355.53
Other cash received in connection with operating activities 34,460,789.75 57,242,048.48
Subtotal of cash inflow from operating activities 565,176,571.15 718,874,428.42
Cash paid for goods and services 291,471,686.75 399,687,605.02
Net increase in customer loans and advances
Net increase in deposits with central banks and interbank funds
Cash for payment of claims under the original insurance contract
Net increase in divestment funds
Cash to pay interest, fees and commissions
Cash to pay policy dividends
Cash paid to and for employees 199,414,904.76 180,018,756.84
All taxes and fees paid 21,623,679.34 31,277,371.86
Other cash payments related to operating activities 66,251,474.70 76,488,351.21
Subtotal of cash outflow from operating activities 578,761,745.55 687,472,084.93
Net cash flow from operating activities -13,585,174.40 31,402,343.49
II. Cash flow generated by investing activities:
Recoup cash received on investment
Cash received for investment income 18,821.12 18,821.12
Net cash recovered from the disposal of fixed assets, intangible assets and
1,651,190.00 1,692,187.72
other long-term assets
Net cash received from disposal of subsidiaries and other business units
Other cash received in connection with investing activities
Subtotal of cash inflow from investing activities 1,670,011.12 1,711,008.84
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Wafangdian Bearing Co., LTD 2022 Midyear Report
Cash paid for the purchase and construction of fixed assets, intangible assets
2,403,306.13 587,971.14
and other long-term assets
Cash paid for investment
Net increase in pledged loans
Obtain net cash paid by subsidiaries and other business units
Other cash payments related to investment activities
Subtotal of cash outflow from investing activities 2,403,306.13 587,971.14
Net cash flow from investing activities -733,295.01 1,123,037.70
III. Cash flow generated by financing activities:
Absorb cash received from investment
Among them: the subsidiary absorbs the cash received from the investment
of minority shareholders
Obtain the cash received from the loan 723,000,000.00 486,000,000.00
Other cash received in connection with financing activities 169,643,983.71 38,566,252.78
Subtotal of cash inflow from financing activities 892,643,983.71 524,566,252.78
Cash paid to repay debts 646,000,000.00 458,093,645.83
Cash used to distribute dividends, profits, or repay interest payments 15,405,252.29 14,830,117.21
Among them: dividends and profits paid by subsidiaries to minority
shareholders
Payment of other cash in connection with financing activities 175,540,163.82 50,000,000.00
Subtotal of cash outflows from financing activities 836,945,416.11 522,923,763.04
Net cash flow from financing activities 55,698,567.60 1,642,489.74
IV. Effect of exchange rate changes on cash and cash equivalents 864,904.74 -1,016,796.39
V.Net increase in cash and cash equivalents 42,245,002.93 33,151,074.54
Plus: Cash and cash equivalents balance at the beginning of the period 209,847,896.42 127,620,944.91
VI.Cash and cash equivalents balance at the end of the period 252,092,899.35 160,772,019.45
6. Cash flow statement of parent company
In RMB Yuan
project Half year 2022 Half of 2021
I. Cash flow generated by operating activities:
Cash received from selling goods and providing services 433,983,928.87 686,999,795.18
Net increase in customer deposits and interbank deposits 14,374,954.28
Net increase in borrowing from central banks 33,818,212.48 57,135,498.00
Net increase in funds borrowed from other financial institutions 482,177,095.63 744,135,293.18
Cash obtained by receipt of premiums from the original insurance contract 247,385,038.07 463,667,027.73
Net cash received for reinsurance operations 158,079,199.48 154,155,107.30
Net increase in deposit and investment funds 16,804,801.43 32,698,012.65
Cash that receives interest, charges and commissions 56,132,270.61 68,913,107.16
Net increase in borrowed funds 478,401,309.59 719,433,254.84
Net increase in funds for repurchase operations 3,775,786.04 24,702,038.34
Net cash received from agents buying and selling securities
Refund of taxes received
Other cash received in connection with operating activities 18,821.12 18,821.12
Subtotal of cash inflow from operating activities 1,651,190.00 829,187.72
Cash paid for goods and services
Net increase in customer loans and advances
Net increase in deposits with central banks and interbank funds 1,670,011.12 848,008.84
Cash for payment of claims under the original insurance contract 1,918,581.58 250,672.14
Net increase in divestment funds 3,340,000.00
Cash to pay interest, fees and commissions
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Wafangdian Bearing Co., LTD 2022 Midyear Report
Cash to pay policy dividends
Cash paid to and for employees 5,258,581.58 250,672.14
All taxes and fees paid -3,588,570.46 597,336.70
Other cash payments related to operating activities
Subtotal of cash outflow from operating activities
Net cash flow from operating activities 723,000,000.00 486,000,000.00
II. Cash flow generated by investing activities: 99,305,239.27 38,566,252.78
Recoup cash received on investment 822,305,239.27 524,566,252.78
Cash received for investment income 646,000,000.00 458,093,645.83
Net cash recovered from the disposal of fixed assets, intangible assets and
15,405,252.29 14,830,117.21
other long-term assets
Net cash received from disposal of subsidiaries and other business units 115,887,163.82 50,000,000.00
Other cash received in connection with investing activities 777,292,416.11 522,923,763.04
Subtotal of cash inflow from investing activities 45,012,823.16 1,642,489.74
Cash paid for the purchase and construction of fixed assets, intangible assets
864,904.74 -1,016,796.39
and other long-term assets
Cash paid for investment 46,064,943.48 25,925,068.39
Net increase in pledged loans 189,762,214.30 143,182,984.73
Obtain net cash paid by subsidiaries and other business units 235,827,157.78 169,108,053.12
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Wafangdian Bearing Co., LTD 2022 Midyear Report
7. Statement of Changes in consolidated owners' equity
In RMB Yuan
Half year 2022
Owner's equity in the parent company
Other equity instruments
Perpetu other Minority
ITEM Prefe Capital less： appropria Surplus General Owner’s
Capital al comprehen Undistributed sharehold
rred Oth public treasure tive public provision for Others total equity
stock Capital sive profits ers’ equity
shar er reserves stock reserve reserves risk
Securitie income
es
s
I. Ending balance of 402,600, 485,691,0 136,770,391 608,267,2 608,267,282
the previous year -416,794,159.01
000.00 50.47 .01 82.47 .47
Plus: Accounting
policy change
Early error correction
Merger of businesses
under the same
control
other
II, the beginning 402,600, 485,691,0 136,770,391 608,267,2 608,267,282
balance of this year -416,794,159.01
000.00 50.47 .01 82.47 .47
III. Amount of
increase or decrease - -
853,381.
in the current period -37,455,779.00 36,602,39 36,602,397.
(marked with "-" for 29
7.71 71
decrease)
(1) Total - -
comprehensive -37,455,779.00 37,455,77 37,455,779.
income 9.00 00
(2) Owner investment
and capital reduction
1.
Common stock
invested by the
owner
2.
Other equity
instrument holders
invested capital
(3) Profit distribution
1.Withdraw surplus
reserves
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Wafangdian Bearing Co., LTD 2022 Midyear Report
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
853,381. 853,381.2
(5) Special reserves 853,381.29
29 9
853,381. 853,381.2
1. Current withdrawal 853,381.29
29 9
2. Use this period
(6) Others
IV. Ending balance of 402,600, 485,691,0 853,381. 136,770,391 571,664,8 571,664,884
the current period -454,249,938.01
000.00 50.47 29 .01 84.76 .76
The amount of the previous period
In RMB Yuan
Half year 2021
Owner's equity in the parent company
Other equity instruments Minority
ITEM Capital less： other appropria Surplus General Owner’s
Capital Prefe comprehen Undistributed sharehold
rred Perpetual Ot public treasure tive public provision for Others total equity
stock Capital he sive profits ers’ equity
shar reserves stock reserve reserves risk
Securities r income
es
35
Wafangdian Bearing Co., LTD 2022 Midyear Report
I. Ending balance of 402,600, 485,691,0 136,770,391 -211,056,473.59 814,004,9 814,004,967
the previous year 000.00 50.47 .01 67.89 .89
Plus: Accounting
policy change
Early error correction
Merger of businesses
under the same
control
other
II, the beginning 402,600, 485,691,0 136,770,391 814,004,9 814,004,967
balance of this year -211,056,473.59
000.00 50.47 .01 67.89 .89
III. Amount of
increase or decrease - -
in the current period -205,737,685.42 205,737,6 205,737,685
(marked with "-" for 85.42 .42
decrease)
(1) Total - -
comprehensive -205,737,685.42 205,737,6 205,737,685
income 85.42 .42
(2) Owner investment
and capital reduction
1.
Common stock
invested by the
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)
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Wafangdian Bearing Co., LTD 2022 Midyear Report
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
2. Use this period
(6) Others
IV. Ending balance of 402,600, 485,691,0 136,770,391 608,267,2 608,267,282
the current period -416,794,159.01
000.00 50.47 .01 82.47 .47
8. Statement of changes in owner's equity of the parent company
This amount
In RMB Yuan
Amount in previous period
Other equity instruments
Other appropria Undistri
Item Preferr Perpetual Capital public less： General provision for
Capital stock comprehensive tive Surplus public reserves buted Owner’s equity
ed Capital Other reserves treasure stock risk
income reserve profits
stock Securities
I. Balance at the end of last
402,600,000.00 485,678,443.26 136,770,391.01 -295,864,551.04 729,184,283.23
year
Plus: Change in accounting
policy
Previous error correction
other
II.The beginning balance of the
402,600,000.00 485,678,443.26 136,770,391.01 -295,864,551.04 729,184,283.23
current year
III. Amount of increase or
853,381.
decrease in the current period -17,190,334.45 -16,336,953.16
(marked with "-" for decrease) 29
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Wafangdian Bearing Co., LTD 2022 Midyear Report
(1) Total comprehensive
-17,190,334.45 -17,190,334.45
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
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 plan changes
carried forward to retained
earnings
5. Other consolidated earnings
carried forward to retained
earnings
6. other
853,381.
(5)Special reserves 853,381.29
29
853,381.
1. This extract 853,381.29
29
2. In current use
(6) Others
853,381.
IV. Ending balance 402,600,000.00 485,678,443.26 136,770,391.01 -313,054,885.49 712,847,330.07
29
The amount of the previous period
38
Wafangdian Bearing Co., LTD 2022 Midyear Report
In RMB Yuan
Amount in previous period
Other equity instruments
Other appropria Undistri
Item Perpetual Capital public less： General provision for
Capital stock Preferred comprehensive tive Surplus public reserves buted Owner’s equity
Capital Other reserves treasure stock risk
stock income reserve profits
Securities
I. Balance at the end of last
402,600,000.00 485,678,443.26 136,770,391.01 -128,677,200.69 896,371,633.58
year
Plus: Change in accounting
policy
Previous error correction
other
II.The beginning balance of
402,600,000.00 485,678,443.26 136,770,391.01 -128,677,200.69 896,371,633.58
the current year
III. Amount of increase or
decrease in the current period -167,187,350.35 -167,187,350.35
(marked with "-" for decrease)
(1) Total comprehensive
-167,187,350.35 -167,187,350.35
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
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
39
Wafangdian Bearing Co., LTD 2022 Midyear Report
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 balance 402,600,000.00 485,678,443.26 136,770,391.01 -295,864,551.04 729,184,283.23
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Wafangdian Bearing Co., LTD 2022 Midyear Report
III. Basic information of the company
Wafangdian bearing co., LTD. (hereinafter referred to as the company, together with subsidiaries referred to as the group) on July 16, 1996, the
dalian economic reform committee general reform commission approved hair [1996] no. 64, by wafangdian bearing group co., LTD. (hereinafter
referred to as wazhou group) as the sole sponsor of the company, The main production and operation assets (and their related liabilities)
authorized by the state to be held at a discounted price shall be invested in and established by means of social collection.
On February 19, 1997, the State Securities Commission issued Document No.9 [1997] and approved the company to publicly issue domestic
listed foreign capital shares (B shares) to the public and listed them for trading.
On March 19, 1997, the founding meeting of the Company and the first meeting of the Board of Directors decided that the effective date of the
reorganization of the company's accounting system (that is, the date of the establishment of the company's accounts) was determined as April 1,
1997.
On March 20, 1997, THE COMPANY GOT THE BUSINESS LICENSE OF ENTERPRISE LEGAL PERSON, THE registration NUMBER IS
24239971-2. Business scope for bearings, mechanical equipment, auto parts and related products manufacturing and sales.
On March 25, 1997, the Company's domestic listed foreign capital shares (B shares) were officially listed and traded in Shenzhen Stock
Exchange, raising 406.58 million yuan, and the company's registered capital was 330 million yuan after the issue.
According to the shenzhen stock exchange on August 30, 2006 issued "on the shenzhen stock exchange stock listing rules >
supplementary notice on the problem of distribution of equity of listed companies (hereinafter referred to as the" notice "), on September 30, the
company in 2006, on the basis of the financial report audited, implement turn add equity capital accumulation fund, With 2.2 shares for every 10
shares, the total share capital increased from 333 million shares to 402.6 million shares, among which the legal person shares owned by
Waxhuan Group increased from 20 million shares to 244.0 million shares, accounting for 60.6% of the total share capital; SKF of Sweden
increased from 65 million shares to 79.3 million shares, accounting for 19.7% of the total capital; Public shares increased from 65 million to 79.3
million, accounting for 19.7% of the total share capital. After the implementation of this plan, the company's equity structure will meet the
provisions of the Supplementary Notice of the Shenzhen Stock Exchange.
The parent company of the company is Wafangdian Bearing Group Co. LTD. The general meeting of shareholders is the authority of the
company and exercises the power to decide major matters such as the company's business policy, financing, investment and profit distribution
according to law. The board of directors shall be responsible to the shareholders' meeting and exercise the company's business decision-making
power according to law; The managers shall be responsible for organizing and implementing the resolutions of the shareholders' meeting and
the board of directors, and presiding over the production and operation management of the enterprise. The company's subsidiaries mainly
include: a wholly-owned subsidiary, Liaoyang Tile Bearing Manufacturing Co., LTD., Dalian Tile shaft Precision Motor Bearing Co., LTD., Tile
shaft Precision Spherical Roller Bearing (Wafangdian) Co., LTD.
The company belongs to the bearing manufacturing industry, mainly engaged in all kinds of bearing production and sales business.
Registered place: No. 1, Section 1, Beitaxa Street, Wafangdian City, Liaoning Province, Legal representative: Liu Jun. Business Scope:
Permitted items: inspection and testing services, import and export of goods, import and export of technologies (for items subject to approval
according to law, business activities can only be carried out after approval by relevant departments, and the specific business items shall be
subject to the approval results) Bearing manufacturing, bearings, gears and transmission components manufacturing, high speed precision
41
Wafangdian Bearing Co., LTD 2022 Midyear Report
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, parts processing, Land use right leasing,
Housing leasing, Non-residential real estate leasing, Machinery and equipment leasing, Computer and communication equipment leasing,
Transportation equipment leasing services, Office Equipment leasing services, Storage equipment leasing services, Special equipment leasing,
Labor Services (excluding labor dispatch), Technical services, technology development, technology consultation, technology exchange,
technology transfer and technology promotion (except for the projects subject to approval according to law, independently carry out business
activities according to law with the business license).
The scope of the Group's consolidated financial statements includes 3 subsidiaries: Wazhou liaoyang bearing manufacturing co., LTD, Dalian
wazhou precision motor car bearing co., LTD, and Wazhou precision spherical roller bearings (wafangdian) co., LTD. Compared with the
previous year, there was no change in the scope of consolidated financial statements.
See "VII. Changes in the Scope of Merger" and "VIII. Interests in Other Entities" in this Note for details.
IV. Basis for the preparation of financial statements
1. Establishment basis
The financial statements of the Group are prepared on a going concern basis, based on the transactions and events actually occurring, in
accordance with the Accounting Standards for Business Enterprises and relevant provisions promulgated by the Ministry of Finance, and based
on the accounting policies and accounting estimates described in "IV. Important Accounting Policies and Accounting Estimates" in this note.
See Note "VII. Changes in Scope of Merger" and NOTE "VIII. Interests in Other Entities" for details.
2.Going concern
3.The Group evaluated its ability to go as a going concern for the 12 months from the end of the reporting period and found no matters or
circumstances that cast significant doubt on its ability to go as a going concern. Accordingly, the financial statements have been prepared on the
basis of the going concern assumption.
V.Important Accounting policies and estimates
Specific accounting policies and estimates:
Specific accounting policies and estimates:
Specific accounting policies and estimates:
42
Wafangdian Bearing Co., LTD 2022 Midyear Report
The specific accounting policies and estimates formulated by the Group according to the actual characteristics of production and operation
include the operating cycle, the recognition and measurement of the allowance for bad debts of receivables, the measurement of issued
inventories, the classification and depreciation method of fixed assets, the amortization of intangible assets, the capitalization conditions of R&D
expenses, and the recognition and measurement of revenues.
1, follow the accounting standards for business enterprises statement
The financial statements prepared by the Company comply with the requirements of the Accounting Standards for Business Enterprises and
truthfully and completely reflect the financial position, operating results and cash flows of the Company and the Group.
2. Accounting period
The Group's fiscal year runs from January 1 to December 31 on the Gregorian calendar.
3. Business cycle
The normal operating cycle is the period from the purchase of assets for processing by the Group to the realization of cash or cash equivalents.
The Group operates on a 12-month operating period and uses it as a liquidity division standard for assets and liabilities.
4. Functional currency
The Group takes RMB as its functional currency.
5. under the same control and not under the same control of the accounting treatment of enterprise merger
As the merging party, the assets and liabilities acquired in the merger of enterprises under the same control of the Group shall be measured by
the book value of the merged party in the consolidated statement of the final controlling party on the merger date. The difference between the
book value of the net assets acquired and the book value of the combined consideration paid, adjusting the capital reserve; If the capital reserve
is insufficient to offset, the retained earnings shall be adjusted.
The identifiable assets, liabilities and contingent liabilities of the acquiree acquired in a business combination under different control shall be
measured at fair value on the acquisition date. The combination costs for this group of control of the acquiree obtained in date for the payment of
cash or non-cash assets, issued or undertake the debt and equity securities issued by the fair value and of the merger of enterprises in the sum
of all relevant direct costs (by multiple transaction step by step implementation of enterprise merger, the combination costs for each individual
transaction cost the sum). The difference between the merger cost and the fair value share of the identifiable net assets acquired in the merger
shall be recognized as goodwill; If the merger cost is less than the fair value share of the identifiable net assets of the acquiree obtained in the
merger, the fair value of the identifiable assets, liabilities and contingent liabilities obtained in the merger, as well as the fair value of the non-
cash assets or equity securities issued in the merger consideration shall be reviewed first. After the review, If the merger cost is still less than the
fair value shaare of the identifiable net assets of the acquiree obtained in the merger, the difference shall be recorded into the non-operating
income of the merger period.
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Wafangdian Bearing Co., LTD 2022 Midyear Report
6. Preparation method of consolidated financial statements
The Group includes all controlled subsidiaries in the consolidated financial statements.
In the preparation of consolidated financial statements, if the accounting policies or accounting periods adopted by the subsidiary and the
Company are not consistent, necessary adjustments shall be made to the financial statements of the subsidiary in accordance with the
accounting policies or accounting periods of the Company.
All significant internal transactions, current balances and unrealized profits within the scope of consolidation shall be offset when the
consolidated statements are prepared. Does not belong to the parent company in the subsidiary company of the owner's equity share and net
profits and losses of the current period, other comprehensive income and comprehensive income in the total of minority shareholders' equity
share, respectively in the consolidated financial statements "rights and interests of minority shareholders, minority shareholders profit and loss
and other comprehensive income attributable to the minority shareholders and the total amount of comprehensive income attributable to the
minority shareholders" project list.
For the subsidiaries obtained by the merger of enterprises under the same control, their operating results and cash flows shall be included in the
consolidated financial statements from the beginning of the merger period. When preparing comparative consolidated financial statements, the
relevant items of the financial statements of the previous year are adjusted, and the report subject formed after the merger shall be regarded as
having existed since the point when the final controller starts to control.
If THE COMPANY ACQUIres THE equity of THE INVESTED UNIT under the same control step by step through multiple transactions, and finally
forms an enterprise combination, it shall make supplementary disclosure of the treatment method in the consolidated financial statements during
the reporting period of acquiring the control right. Such as: Step by step through several trading under the same control the equity of the invested
entity, finally forms the enterprise merger, when preparing consolidated statements, as in the final control will exist in the current state of starting
control adjustment, in the preparation of comparative statements, with no earlier than with the group and the combined party under the control of
the final control party is limited in time, The relevant assets and liabilities of the merged party shall be incorporated into the comparative
statements of the consolidated financial statements of the Group, and the net assets increased by the consolidation shall be adjusted to the
relevant items under the owner's equity in the comparative statements. To avoid repeated net asset value is calculated on the combined party,
before the group reached merger holdings of long-term equity investment, making the original stake in with the group and the combined party on
the day of the same party as of the date of the final control which is between the late date to the combining date has confirmed the relevant profit
or loss and other comprehensive income and other changes in net assets, The initial retained earnings and current profits and losses of the
comparative statement period shall be written down separately.
For subsidiaries acquired through the merger of enterprises not under the same control, the operating results and cash flows shall be included in
the consolidated financial statements from the date the Group obtains control. In preparing the consolidated financial statements, the financial
statements of the subsidiaries shall be adjusted on the basis of the fair values of each identifiable asset, liability and contingent liability
determined on the purchase date.
If THE COMPANY OBTAINS THE equity of THE INVESTED UNIT under different control step by step through multiple transactions, and finally
44
Wafangdian Bearing Co., LTD 2022 Midyear Report
forms the enterprise combination, it shall make supplementary disclosure of the treatment method in the consolidated financial statements during
the reporting period when it obtains the control right. Step by step through multiple trading, for example, the equity of the invested entity not
under the same control, finally forms the enterprise merger, when preparing consolidated statements, the acquisition date prior to hold the equity
of the acquiree, according to its fair value of the equity in the acquisition measurement, the difference between fair value and its book value
included in the current investment income; Associated with it before the date of the acquiree stakes involved under the equity method accounting
of other comprehensive income and remove all the profit and loss and other comprehensive income and profit distribution of other changes in
the owner's equity, on the acquisition date belongs to current into investment profit and loss, because the investor to measure set benefit plans
net debt or other comprehensive income as a result of the changes in net worth.
The group without losing control of part of the disposal of subsidiaries of a long-term equity investment, in the consolidated financial statements,
enjoy corresponding disposal cost and disposal of the long-term equity investment subsidiary since acquisition or merger, continue to calculate
the difference between the share of net assets, adjusting capital premium or premium on capital stock, insufficient capital reserves, in which
adjust the retained earnings.
If the Group loses the right of control over the investee due to disposal of part of the equity investment or other reasons, the remaining equity
shall be re-measured according to its fair value on the date of loss of control when preparing consolidated financial statements. The sum of the
consideration obtained from the disposal of the equity and the fair value of the remaining equity, minus the difference between the share of the
original subsidiary's net assets calculated continuously since the purchase date or the merger date based on the original shareholding ratio, shall
be included in the investment profit and loss of the current period of loss of control, and the goodwill shall be written down. Other comprehensive
income related to the equity investment of the original subsidiary shall be converted into current investment profit and loss when the control right
is lost.
If the Group disposed of the equity investment in the subsidiary step by step through multiple transactions until the loss of control, if the
transactions of the disposal of the equity investment in the subsidiary until the loss of control are package transactions, each transaction shall be
treated as one transaction of the disposal of the subsidiary and the loss of control; However, the difference between the price of each disposal
and the share of net assets of the subsidiary corresponding to the disposal investment before the loss of control shall be recognized as other
comprehensive income in the consolidated financial statements and transferred to the investment profit and loss of the current period when the
control is lost.
7. Classification of joint venture arrangement and accounting treatment of joint operation
8. Determination criteria for cash and cash equivalents
Cash in the Group's statement of cash flows refers to cash on hand and deposits readily available for payment. Cash equivalents in the
Statement of CASH FLOWS are investments that have a holding period of no more than 3 months, are liquid, can be easily converted into a
known amount of cash and have little risk of change in value.
9. Translation of foreign currency business and foreign currency statements
45
Wafangdian Bearing Co., LTD 2022 Midyear Report
1. Foreign currency transactions
The Group's foreign currency transactions convert foreign currency amounts into Renminbi amounts at the spot exchange rate on the date of
transaction. On the balance sheet date, foreign currency monetary items shall be converted into RMB at the spot exchange rate on the balance
sheet date, and the resulting translation difference shall be directly recorded into the current profit and loss, except that the exchange difference
arising from the foreign currency special borrowings for the purchase, construction or production of assets eligible for capitalization shall be
treated according to the principle of capitalization.
2. Translation of foreign currency financial statements
The items of assets and liabilities in the balance sheet of foreign currency shall be converted at the spot exchange rate on the balance sheet
date; Owners' equity items except "undistributed profits" shall be converted at the spot exchange rate at the time of business occurrence; The
income and expense items in the income statement shall be converted at the spot exchange rate on the date of transaction. The translation
difference of the foreign currency statement resulting from the above translation shall be shown in other comprehensive income items. Foreign
currency cash flows are converted at the spot rate on the date of cash flows. The effect of exchange rate changes on cash is shown separately
in the statement of cash flows.
10.Financial instruments
The Group recognizes a financial asset or liability when it becomes a party to a financial instrument contract.
(1) Financial assets
1) Classification, recognition basis and measurement method of financial assets
According to the business model of managing financial assets and the contractual cash flow characteristics of financial assets, the Group
classifies financial assets into financial assets measured at amortized cost, financial assets measured at fair value and recorded in other
comprehensive income, and financial assets measured at fair value and recorded in current profit and loss.
The Group classifies financial assets that simultaneously meet the following conditions as financial assets measured at amortized cost: ① The
business model of managing the financial assets is to collect contractual cash flow as the objective. ② The contractual terms of the financial
asset provide that the cash flow generated at a particular date is only the payment of the principal and interest on the basis of the outstanding
principal amount. Such financial assets shall be initially measured at fair value, and relevant transaction costs shall be included in the initial
recognized amount; Subsequent measurement is made at amortized cost. Except for the items designated as hedged items, 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 gains and losses as well as the gains or losses generated when the recognition is terminated shall be recorded into the
current profit and loss.
The Group classifies financial assets that meet the following conditions at the same time as financial assets measured at fair value and whose
changes are recorded in other comprehensive income: ① The business model of managing the financial assets is aimed at both collecting
contractual cash flow and selling the financial assets. ② The contractual terms of the financial asset provide that the cash flow generated at a
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Wafangdian Bearing Co., LTD 2022 Midyear Report
particular date is only the payment of the principal and interest on the basis of the outstanding principal amount. Such financial assets shall be
initially measured at fair value, and relevant transaction expenses shall be included in the initial recognized amount. Except for those designated
as hedged items, other gains or losses of such financial assets, other than credit impairment losses or gains, exchange gains and losses, and
the interest on such financial assets calculated according to the effective interest rate method, shall be included in other comprehensive income;
When the recognition of financial assets is terminated, the accumulated gains or losses previously included in other comprehensive income shall
be converted from other comprehensive income and included in the current profit and loss.
The Group recognizes interest income in accordance with the effective interest rate method. Interest income is calculated and determined
according to the book balance of financial assets multiplied by the actual interest rate, except for the following circumstances: ① For the
financial assets purchased or originated that have incurred credit impairment, since the initial recognition, the interest income is calculated and
determined according to the amortized cost of the financial assets and the actual interest rate adjusted by credit. (2) For the financial assets
purchased or originated without credit impairment, but which become credit impairment in the subsequent period, the interest income shall be
calculated and determined according to the amortized cost and actual interest rate of the financial assets in the subsequent period.
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 such designation has been made, it shall not be revoked. Non-trading equity instrument
investment designated by the Group that is measured at fair value and whose changes are included in other comprehensive income shall be
initially measured at fair value and relevant transaction expenses shall be included in the initial recognized amount; In addition to the dividend
(except for the part of investment cost recovery), other relevant gains and losses (including exchange gains and losses) are included in other
comprehensive income, and shall not be transferred to the current profit and loss. When its recognition is terminated, the accumulated gains or
losses previously recorded in other comprehensive income are transferred from other comprehensive income and recorded in retained earnings.
Financial assets other than those classified as financial assets measured at amortized cost and those classified as financial assets measured at
fair value and whose changes are recorded in other comprehensive income as described above. The Group classifies two financial assets that
are measured at fair value and whose changes are recorded in current profit and loss. Such financial assets are initially measured at fair value,
and relevant transaction expenses are directly recorded into current profits and losses. Gains or losses on such financial assets shall be booked
into current profits and losses.
If the contingent consideration recognized by the Group in a business combination not under the same control constitutes a financial asset, the
financial asset is classified as a financial asset measured at fair value and its change is recorded in the current profit and loss.
2) Confirmation basis and measurement method of financial asset transfer
The Group terminates recognition of financial assets that meet one of the following conditions: (1) termination of the contractual right to receive
the cash flow of such financial assets; ② Financial assets transfer, the group transferred almost all the risks and rewards on the ownership of
financial assets; (3) The group has neither transferred nor retained almost all the risks and rewards of the ownership of the financial assets, and
has not retained the control of the financial assets.
Transfer the entire financial asset meet the recognition criteria of termination, the book value of the transferred financial asset, and received by
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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, The difference between the sum of the principal and interest payments on the basis of the outstanding principal amount is only
included in the current profit or loss.
If the partial transfer of a financial asset meets the conditions for termination of recognition, the carrying value of the whole financial asset
transferred shall be apportion between the part whose recognition is terminated and the part whose recognition is not terminated according to
the relative fair value of each. 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 with the
apportioned overall book value of the financial assets shall be included in the current profit and loss.
(2) Financial liabilities
1) Classification, recognition basis and measurement method of financial liabilities
The financial liabilities of the Group are classified as financial liabilities and other financial liabilities measured at fair value and recorded in
current profit and loss at the time of initial recognition.
Financial liabilities measured at fair value and whose changes are recorded into current profit and loss include transactional financial liabilities
and financial liabilities designated at initial recognition as measured at fair value and whose changes are recorded into current profit and loss
(the relevant classification basis shall be disclosed according to the classification basis of financial assets). The subsequent measurement shall
be carried out according to the fair value, and the gain or loss resulting from the change in the fair value and the dividend and interest expense
related to the financial liability shall be booked into the current profit and loss.
For other financial liabilities, the effective interest rate method is adopted and subsequent measurement is carried out according to 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) Transfer of financial assets that do not meet the conditions for termination of recognition or continue
to involve in financial liabilities formed by the transferred financial assets. (3) Financial security contracts that do not fall under (1) or (2) above,
and loan commitments that do not fall under (1) above at below-market interest rates.
If the Group forms financial liabilities as contingent consideration recognized by the buyer in a business combination not under the same control,
it shall be measured at fair value and recorded in current profit and loss for accounting treatment.
2) Recognition conditions for termination of financial liabilities
When the current obligation of a financial liability has been discharged in whole or in part, the termination of recognition of the discharged part of
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the financial liability or obligation. The Group and creditors sign an agreement to replace the existing financial liabilities by assuming the new
financial liabilities, and if the contract terms of the new financial liabilities are substantially different from those of the existing financial liabilities,
the recognition of the existing financial liabilities shall be terminated and the new financial liabilities shall be recognized at the same time. If the
Group materially modifies all or part of the contract terms of the existing financial liabilities, it shall terminate the recognition of the existing
financial liabilities or part of the existing financial liabilities and recognize the financial liabilities after the modification as a new financial liability.
The difference between the book value of the terminated recognition portion and the consideration paid shall be recorded in the current profit
and loss.
(3) Determination method of fair value of financial assets and financial liabilities
The Group measures the fair value of financial assets and financial liabilities at the prices of the 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 markets, and adopts the valuation
technology applicable at that time and supported by sufficient available data and other information. The input value used in the fair value
measurement is divided into three levels, that is, the input value of the first level is the unadjusted quotation of the same assets or liabilities that
can be obtained on the measurement date in the active market; The input value of the second level is the input value of related assets or
liabilities that is directly or indirectly observable except the input value of the first level. The input value of the third level is the unobservable input
value of the related asset or liability. The group preferentially uses the input value of the first level, and finally uses the input value of the third
level. The level to which the fair value measurement results belong is determined by the lowest level to which the input values of great
significance to the fair value measurement as a whole belong.
The Group's investments in equity instruments are measured at fair value. However, in limited circumstances, if the recent information used to
determine the fair value is insufficient, or the distribution of possible estimates of the fair value is wide, and the cost represents the best estimate
of the fair value within the range, the cost may represent the appropriate estimate of the fair value within the range of the distribution.
(4) Offset of financial assets and financial liabilities
The financial assets and liabilities of the Group are presented separately in the balance sheet and are not set off against each other. However, if
the following conditions are met at the same time, the net amount after mutual offset shall be listed in the balance sheet :(1) the group has the
legal right to offset the recognized amount, and such legal right is currently enforceable; (2) The Group plans to settle on a net basis, or
simultaneously realize the financial assets and pay off the financial liabilities.
(5) The distinction between financial liabilities and equity instruments and related treatment methods
The group distinguishes between financial liabilities and equity instruments in accordance with the following principles :(1) a contractual
obligation meets the definition of a financial liability if the group cannot unconditionally avoid the delivery of cash or other financial assets in order
to fulfill it. Although some financial instruments do not explicitly contain terms and conditions for the obligation to deliver cash or other financial
assets, they may indirectly create 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
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interest in the assets. If it is the former, the instrument is a financial liability of the issuer; If the latter, the instrument is an 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, The contract is classified as a
financial liability if it changes in whole or in part based on changes in variables other than the market prices of the Group's own equity
instruments (e.g., interest rates, the price of a commodity or the price of a financial instrument).
In classifying financial instruments (or their components) in the consolidated statements, the Group takes into account all terms and conditions
agreed between the members of the Group and the holders of financial instruments. The instrument shall be classified as a financial liability if the
Group as a whole assumes an obligation as a result of the instrument to deliver cash, other financial assets or settle in any other manner that
causes 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, and gains or
losses arising from redemption or refinancing, shall be booked into the current profit and loss by the Group.
If a financial instrument or its component part is an equity instrument, the Group will treat the issue (including refinancing), repurchase, sale or
cancellation of the instrument as a change in equity and will not recognize the change in fair value of the equity instrument.
(6) Impairment of financial instruments
On the basis of expected credit loss, the Group conducts impairment treatment and recognizes loss provisions for financial assets measured at
amortized cost and investment in debt instruments measured at fair value and whose changes are recorded 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 collected
by the Group, discounted at the original actual interest rate, namely, the present value of all cash shortages. Among them, the financial assets
purchased or originated by the Group that have incurred credit impairment shall be discounted according to the actual interest rate adjusted for
credit 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 based on the expected amount of credit loss equivalent to the entire duration.
The Group shall evaluate on each balance sheet date whether its credit risk has significantly increased since the initial recognition. If the credit
risk has significantly increased since the initial recognition, the Group shall measure the loss provision in accordance with the amount equivalent
to the expected credit loss during the entire duration; If the credit risk has not increased significantly since the initial recognition, the Group
measures the loss provision at an amount equivalent to the expected credit loss for the next 12 months.
The Group considers all reasonable and evidence-based information, including forward-looking information, in assessing expected credit losses.
When the Group no longer reasonably expects to recover all or part of the contracted cash flow of a financial asset, the Group directly writes
down the carrying balance of the financial asset.
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In addition to assessing overdue credit losses on a single basis for certain financial assets, the Group also assesses expected credit losses on
financial assets measured at amortized cost on an aging portfolio basis.
The Group divides notes receivable, accounts receivable and other receivables into several combinations according to the credit risk
characteristics, and calculates the expected credit loss on the basis of the combination. The combination is determined on the following basis:
combination On the basis of
Notes Receivable 1 Banker's acceptance bill
Note Receivable 2 Collection of commercial acceptance bills from related parties
A collection of commercial acceptances received from unrelated
Notes Receivable 3
parties
Accounts Receivable 1 Combination of related parties
Accounts receivable 2 Aging combination
For the receivables divided into portfolios, the Group makes reference to the historical credit loss experience, combines the current situation and
the forecast of the future economic situation, and prepares the comparison table between the aging of receivables and the expected credit loss
ratio of the whole duration to calculate the expected credit loss.
The Group divides other receivables into several portfolios according to the credit risk characteristics and calculates the expected credit loss on
the basis of the portfolios. The basis for determining the portfolios is as follows:
combination On the basis of
Other receivables 1 Combination of related parties
Other receivables 2 Aging combination
Risk-free portfolio (categorize the portfolio according to the
Other receivables 3 reputation of the transaction object, the nature of the money, the
transaction safeguard measures, etc.)
For other receivables classified into portfolios, the Group calculates expected credit losses by default risk exposure and expected credit loss
ratio over the entire duration, referring to historical credit loss experience, combined with current conditions and forecasts of future economic
conditions.
11. Notes receivable
See Note IV, 9 (6) Impairment of Financial instruments in the audit report.
12. Accounts receivable
See Note IV, 9 (6) Impairment of Financial instruments in the audit report.
13. Receivables financing
14. Other receivables
Determination method and accounting treatment method of expected credit loss of other receivables
Determination method and accounting treatment method of expected credit loss of other receivables
Determination method and accounting treatment method of expected credit loss of other receivables
See Note IV, 9 (6) Impairment of Financial instruments.
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15, inventory
The group's inventory mainly includes raw materials, packaging, low-value consumables, in-process products, inventory goods, etc.
The system of perpetual inventory shall be implemented, and the inventory shall be priced according to the plan at the time of acquisition. The
daily accounting of raw materials is based on the planned cost. The difference between the planned cost and the actual cost is apportionalized
into the raw material cost and the delivery cost according to the retention and delivery ratio of all kinds of raw materials, and the planned cost of
raw materials is adjusted to the actual cost. In the daily accounting of products and finished products, the planned cost is priced at the planned
cost. The difference between the planned cost and the actual cost is apportioned into the cost of products or finished products according to the
proportion of retention and issuance, and the planned cost is adjusted to the actual cost. The actual cost of receiving or issuing inventory is
determined by the weighted average method. Low value consumables and packages are amortized by the one-time resale method.
The ending inventory shall be priced on the basis of the lower principle of cost and net realizable value. For the part whose cost is expected to
be irrecoverable due to damage, obsolescence in whole or in part, or the selling price being lower than the cost, the decline price reserve shall
be drawn. Reserve for inventory decline of commodities and bulk raw materials shall be drawn by the difference between the cost of a single
inventory item and its net realizable value; Other raw and auxiliary materials with large quantity and low unit price shall be taken out of the
inventory depreciation reserve by category.
The net realizable value of commodities in stock, products in stock, materials for sale and other commodities directly used for sale shall be
determined by the estimated selling price of the inventory less the estimated selling expenses and relevant taxes and fees; The net realizable
value of the material inventory held for production purposes is determined by the estimated selling price of the finished goods produced less the
estimated costs to be incurred at the time of completion, estimated selling expenses and relevant taxes and fees.
16. Contractual assets
(1) Methods and standards for the recognition of contractual assets
The Company shall list contractual assets or contractual liabilities in the balance sheet according to the relationship between performance
obligations and customer payment. The Company's right to receive consideration for the goods or services it has transferred to the Customer,
subject to factors other than the passage of time, is listed as a contractual asset. Contractual assets and contractual liabilities under the same
contract are shown as net.
(2) The determination method and accounting treatment method of the expected credit loss of the contracted assets
The determination method and accounting treatment method of expected credit loss on contract assets are detailed in this note, "Notes IV, 10 (6)
Impairment of Financial Instruments".
Accounting treatment method: The Group calculates the expected credit loss on the contract asset on the balance sheet date. If the expected
credit loss is greater than the carrying amount of the current impairment provision for the contract asset, the Group recognizes the difference as
an impairment loss, debits "asset impairment loss" and credits "contract asset impairment provision". Instead, the Group recognizes the
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difference as an impairment gain and makes the opposite accounting record.
If the Group actually incurs credit losses and determines that the relevant contractual assets cannot be recovered, and verification is approved,
"Provisions for Impairment of Contractual Assets" shall be debited and "Contractual Assets" shall be credited according to the approved amount
of verification. If the written off amount is greater than the loss provisions already set aside, the difference shall be debited to "asset impairment
loss".
17. Contract cost
(1) Method for determining the amount of assets related to the contract costs
The Group's assets related to contract costs include contract performance costs and contract acquisition costs.
Contract performance cost, that is, the cost incurred by the Group to perform the contract, which does not fall within the scope of accounting
standards for other enterprises and satisfies the following conditions, shall be recognized as an asset as contract performance cost: Such costs
are directly related to a current or expected contract and include direct labor, direct materials, manufacturing expenses (or similar expenses),
costs expressly borne by the Customer and other costs incurred solely as a result of the contract; This cost increases the resources of the Group
to meet its performance obligations in the future; The cost is expected to be recovered.
Contract acquisition cost, that is, the incremental cost incurred by the group to acquire the contract is expected to be recovered, and is
recognized as an asset as contract acquisition cost; If the amortization period of the asset does not exceed one year, it shall be recorded into the
current profit and loss at the time of occurrence. Incremental cost refers to the cost (such as sales commission, etc.) that the group would not
have incurred without obtaining the contract. Other expenses incurred by the Group to obtain the contract, other than the incremental costs that
are expected to be recovered (such as travel expenses that will be incurred whether the contract is obtained or not), shall be included in the
current profit and loss at the time of occurrence, except those explicitly borne by the customer.
(2) Amortization of assets related to contract costs
The Group's assets related to contract costs are amortized on the same basis as the commodity revenue recognition associated with the asset
and booked into the current profit and loss.
(3) Impairment of assets related to contract costs
When determining the impairment loss of the assets related to the contract cost, the Group shall first determine the impairment loss of the other
assets related to the contract recognized in accordance with the accounting standards for other relevant enterprises; Then, if its carrying value is
higher than the difference between the remaining consideration that the Group is expected to obtain due to the transfer of commodities related to
the asset and the estimated cost to be incurred for the transfer of commodities related to the asset, the excess part shall be set aside for
impairment and recognized as asset impairment loss.
If the aforesaid difference is higher than the carrying value of the asset due to the change of the factors of impairment in the previous period, it
shall be transferred back to the original provision for asset impairment and booked into the current profit and loss, provided that the carrying
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value of the asset after the reversal shall not exceed the carrying value of the asset on the date of reversal assuming no provision for impairment.
18. Holding assets for sale
19. Debt investment
20. Other debt investment
21. Long-term receivables
22. Long-term equity investment
The Group's long-term equity investment mainly consists of investment in subsidiaries, joint ventures and joint ventures.
The Group's judgment of common control is based on the fact that all parties or a combination of parties collectively control the arrangement and
that the policy for the activities related to the arrangement must be agreed upon by all parties collectively controlling the arrangement.
If the Group directly or indirectly through its subsidiaries owns more than 20% (including) but less than 50% of the voting rights of the investee, it
is generally considered to have a significant influence on the investee. Holding less than 20% of the voting rights of the invested entity, Also
need comprehensive consideration on the invested entity's board of directors or similar authority sent on behalf of, or participate in the financial
and operating policy making process by the invested entity, or important transactions taking place between the invested entity, or sent
executives to the invested entity, or to the key technical data provided by the invested entity, such as facts and judging has a significant
influence on the invested entity.
The subsidiaries of the group shall be those that form control over the invested units. for the long-term equity investment obtained through the
merger of enterprises under the same control, the initial investment cost of the long-term equity investment shall be taken as the share of the
book value of the net assets of the merged party in the consolidated statement of the final controlling party on the merger date. if the book value
of net assets of the merged party is negative on the merger date, the long-term equity investment cost shall be determined as zero.
If the company obtains the equity of the invested unit under the same control step by step through multiple transactions and finally forms the
enterprise combination, it shall supplement the treatment method of long-term equity investment in the financial statements of the parent
company during the reporting period when the control right is acquired. for example, if the equity of the invested unit under the same control is
acquired step by step through multiple transactions, and the enterprise merger is finally formed, which is a package transaction, the group will
treat each transaction as a transaction to acquire control. for non-listed transactions, the initial investment cost of the long-term equity investment
shall be based on the share of the combined party's net assets in the book value of the final controlling party's consolidated financial statements
after the merger on the merger date. the difference between the initial investment cost and the sum of the book value of the long-term equity
investment before the merger plus the book value of the new consideration for the further acquisition of shares on the merger date shall adjust
the capital reserve. if the capital reserve is insufficient to offset, the retained earnings shall be offset.
The long-term equity investment obtained through the merger of enterprises not under the same control takes the merger cost as the initial
investment cost.
If the company obtains the equity of the invested unit under different control step by step through multiple transactions and finally forms the
enterprise merger, it shall supplement the treatment method of the long-term equity investment cost in the financial statements of the parent
company during the reporting period when the control right is acquired. For example, if the shareholding of the invested unit not under the same
control is acquired step by step through multiple transactions, and the enterprise merger is finally formed, which is a package transaction, the
group will treat each transaction as a transaction to acquire control. If the transaction is not listed, the sum of the book value of the original equity
investment and the new investment cost shall be taken as the initial investment cost calculated according to the cost method. If the equity held
before the purchase date is accounted for by the equity method, the relevant other comprehensive income calculated by the original equity
method shall not be adjusted for the time being, and the investment shall be treated on the same basis as the investee's direct disposal of the
relevant assets or liabilities. If the equity held before the purchase date is accounted for at fair value in the financial assets available for sale, the
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accumulated fair value change originally recorded in other comprehensive income will be transferred to the current investment profit and loss on
the merger date.
In addition to the above-mentioned long-term equity investment obtained through the merger of enterprises, the long-term equity investment
obtained by paying cash shall be taken as the investment cost according to the purchase price actually paid; The long-term equity investment
obtained by issuing equity securities shall be taken as the investment cost according to the fair value of the equity securities issued; The long-
term equity investment invested by the investor shall be taken as the investment cost according to the value stipulated in the investment contract
or agreement.
The Group uses the cost method to account for investment in subsidiaries and the equity method to account for investment in joint ventures and
associates.
For the long-term equity investment calculated by the cost method in the subsequent measurement, the carrying value of the long-term equity
investment cost shall be increased according to the fair value of the cost paid for the additional investment and the related transaction expenses
incurred when the additional investment is made. The cash dividend or profit declared and distributed by the invested entity shall be recognized
as the current investment income according to the amount to be enjoyed.
The subsequent measurement of long-term equity investment calculated by the equity method shall increase or decrease the book value of long-
term equity investment accordingly with the change of the owner's equity of the invested unit. In confirm the invested entity shall be accorded to
the share of the net profits and losses, in order to obtain the invested entity, when the basis of the fair value of the identifiable assets, such as, in
accordance with the accounting policies and accounting periods of the group, and offset and associated enterprises and joint ventures between
insider trading profits and losses according to the shareholding calculation belongs to part of the investing enterprise, The net profit of the
invested unit shall be recognized after adjustment.
For the disposal of long-term equity investment, the difference between its book value and the actual price obtained shall be included in the
current investment income. if a long-term equity investment calculated by the equity method is recorded as owner's equity due to other changes
in owner's equity other than net profit and loss of the invested unit, the part originally recorded as owner's equity shall be transferred to the
current investment profit and loss according to the corresponding proportion at the time of disposal of the investment.
If the joint control or significant influence on the invested unit is lost due to the disposal of part of the equity investment, the remaining equity
after disposal shall be calculated as financial assets available for sale, and the difference between the fair value and book value of the remaining
equity on the date when the joint control or significant influence is lost shall be booked into the current profit and loss. Other comprehensive
income recognized by the original equity investment due to the adoption of the equity method of accounting, shall be accounted on the same
basis as the investee's direct disposal of relevant assets or liabilities when the adoption of the equity method of accounting is terminated.
For disposal of long-term equity investment has lost control of the invested entity, after the disposal of the remaining stake to the invested entity
do joint control or significant influences, to change, according to the equity method accounting disposal of the difference between the book value
of equity and disposal of value included in the investment returns, and the remaining shares shall be regarded as must pick up adjust measured
by employing the equity method, namely; After the disposal of the remaining equity of the invested entity not joint control or significant influences,
to change in accordance with the relevant provisions of the available for sale financial assets accounting, the disposal of the difference between
the book value of equity and disposal of value included in the investment returns, the fair value of the remaining equity in the day of loss of
control and the difference between the book value included in the current investment gains and losses.
The Group shall conduct accounting treatment separately for each transaction that does not belong to a package transaction for the stepwise
disposal of equity to the loss of control. Belonged to the "package deal", will the deal as a disposal of subsidiaries and loss of control of
accounting transactions, but a transaction before losing control disposal cost of a long-term equity investment and equity corresponding disposal
by the difference between the book value, identified as other comprehensive income, to loss of control and then were transferred to losing
control of the profits and losses of the current period.
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23. Investment real estate
Investment real estate measurement model
Measurement by cost method
Depreciation or amortization method
The Group's investment real estate includes land and houses.
If the cost mode is adopted for measurement, the following contents shall be disclosed
The Group's investment real estate is depreciated or amortized using the straight-line method. The estimated useful life, net salvage value ratio
and annual depreciation (amortization) ratio of each type of investment real estate are as follows:
Annual depreciation rate
category Depreciation life (years) Estimated salvage rate (%)
(%)
Land use right 40 8.33
House building
Among them: Buildings 15 3 6.47
House for production
30 3 3.23
purposes
Non-productive housing 35 3 2.77
24. Fixed assets
(1) Confirm the conditions
The fixed assets of the Group refer to the tangible assets with a service life of more than one year and a unit value of more than 2000 Yuan that
are held for the purpose of producing commodities, providing labor services, leasing or management at the same time.
Fixed assets are recognized when the economic benefits associated with them are likely to flow into the Group and their costs can be measured
reliably. The fixed assets of the Group include houses and buildings, machinery and equipment, transportation equipment, electronic equipment
and others.
（2） Depreciation method
Depreciation fixed
category Depreciation method Salvage Yearly depreciation
number of year
House building Average age method
Among them: Buildings Average age method 15 3 6.47
House for production
Average age method 30 3 3.23
purposes
Non-productive housing Average age method 35 3 2.77
Machinery and equipment Average age method 10-15 3 6.47～9.70
Transportation equipment Average age method 6 3 16.17
Electronic equipment Average age method
Among them: electronic
Average age method 4 3 24.25
computer
General purpose test Average age method 7 3 13.86
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instrument
Special purpose
Average age method 8 3 12.13
electronic equipment
Automatic control
Average age method 8 3 12.13
equipment
Automatic control
Average age method 8 3 12.13
instrument
Other equipment Average age method
Among them: industrial
Average age method 7 3 13.86
kilns
Tools and other
Average age method 9 3 10.78
production tools
Transmission equipment Average age method 15 3 6.47
Non-production
equipment and Average age method 18 3 5.39
appliances
With the exception of the fixed assets that have been fully depreciated but are still in use and the land that has been separately priced and
recorded, the Group has accrued depreciation on all fixed assets. The average life method is adopted when calculating depreciation. The
classified depreciation life, estimated net salvage value ratio and depreciation rate of the Group's fixed assets are shown in the above table.
At the end of each year, the Group will review the estimated service life, estimated net salvage value and depreciation method of fixed assets,
and if any change occurs, it will be treated as a change in accounting estimates.
(3) Identification basis, valuation and depreciation method of fixed assets leased by finance
25. Construction in progress
When the project in progress reaches the scheduled usable state, it shall be carried forward to the fixed assets according to the estimated value
according to the project budget, construction cost or actual project cost, etc. Depreciation shall be calculated and withdrawn from the next month,
and the difference in the original value of the fixed assets shall be adjusted after the completion of the final accounting procedures.
26. Borrowing costs
Happened can be directly attributable to require more than one year of acquisition and construction or production activities to achieve the
expected conditions for use or sale of fixed assets, investment real estate and inventory cost of borrowing in the asset spending has already
occurred, borrowing costs have been, to make the asset to the expected conditions for use or sale of acquisition and construction or production
activities necessary has begun, Start to capitalize; When the purchase, construction or production of assets that meet the capitalization
conditions reach the predetermined state of being available for use or sale, the capitalization will be stopped, and the subsequent borrowing
expenses will be recorded into the current profit and loss. If the assets qualified for capitalization are abnormally interrupted in the process of
purchase and construction or production, and the interruption time is more than three consecutive months, the capitalization of borrowing
expenses shall be suspended until the purchase and construction of assets or production activities restart.
The interest expense actually incurred in the current period of the special loan shall be capitalized after deducting the interest income obtained
by depositing the unspent borrowed funds in the bank or the investment income obtained by the temporary investment; For general borrowing,
the capitalized amount is determined by multiplying the weighted average of the accumulated asset expenditures over the special loans by the
capitalized rate of the occupied general loans. The capitalization rate is calculated based on the weighted average interest rate on general
borrowing.
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27. Biological assets
28. Oil and gas assets
29. Use assets
The right to use the leased asset refers to the right of the Group as the lessee to use the leased asset during the lease term.
(1) Initial measurement
On the commencement date of the lease period, the Group shall make initial measurement of the right to use assets at cost. The cost
includes the following four items: ① the initial measurement amount of the lease liability; (2) The amount of lease payment paid on or before the
start date of the lease term, if there is a lease incentive, deduct the amount of lease incentive already enjoyed; (3) The initial direct expenses
incurred are the incremental costs incurred to achieve the lease; (4) Costs expected to be incurred for disassembly and removal of the leased
assets, restoration of the site where the leased assets are located, or restoration of the leased assets to the state agreed upon in the lease terms,
except those incurred for the production of inventory.
(2) Follow-up measurement
After the lease period begins, the Group shall use the cost mode to measure the assets of the right to use, that is, the assets of the right
to use shall be measured by the cost minus accumulated depreciation and accumulated impairment loss. If the Group re-measures the lease
liabilities in accordance with the relevant provisions of the leasing standards, the carrying value of the assets of the right to use shall be adjusted
accordingly. ?
Depreciation of the right to use assets
From the commencement date of the lease period, the Group will incur depreciation on the assets used. The right to use assets are
usually depreciated in the month from the beginning of the lease period. The amount of depreciation shall be included in the cost or current profit
or loss of the relevant asset according to the use of the asset used.
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When determining the depreciation method of the right asset, the Group shall make a decision based on the expected consumption way of the
economic interests related to the right asset, and calculate the depreciation of the right asset by the straight line method.
The Group shall follow the following principles when determining the depreciation life of the right asset: If the ownership of the leased asset can
be reasonably determined at the expiration of the lease term, depreciation shall be accrued during the remaining useful life of the leased asset; If
it cannot be reasonably determined that the ownership of the leased asset can be obtained at the expiration of the lease term, depreciation shall
be calculated and withdrawn during the shorter period of the lease term and the remaining useful life of the leased asset.
Impairment of assets used for use
In case of impairment of the right to use assets, the Group shall carry out subsequent depreciation according to the carrying value of the right to
use assets after deducting the impairment loss.
30. Intangible assets
(1) Valuation method, service life and impairment test
The Group's intangible assets, including land use right, ERP software and other intangible assets, are measured at the actual cost at the time of
acquisition. The purchased intangible assets are taken as the actual cost according to the actual price paid and other related expenses. The
actual cost of intangible assets invested by investors shall be determined according to the value stipulated in the investment contract or
agreement, but if the value stipulated in the contract or agreement is unfair, 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 of the transfer from the date of transfer;
ERP software and other intangible assets shall be amortized according to the shortest of the expected service life, the beneficial life stipulated in
the contract and the effective life stipulated by law. The amount of amortization shall be included in the cost of relevant assets and current profits
and losses according to the beneficiaries. The ESTIMATED USEFUL life and AMORtization method of intangible assets with limited useful life
shall be reviewed at the end of each year. If any change occurs, it shall be treated as an accounting estimate change.
(2) Accounting policies for internal research and development expenditures
31. Impairment of long-term assets
The Group checks long-term equity investment, investment real estate measured using the cost model, fixed assets, construction in progress,
intangible assets with limited service life and other items on each balance sheet date. When there are signs of impairment, the Group conducts
impairment tests. For goodwill and intangible assets with uncertain service life, the impairment test shall be conducted at the end of each year
regardless of whether there are any signs of impairment.
The recoverable amount is determined based on the higher between the net fair value of the asset minus the disposal expense and the present
value of the expected future cash flows of the asset. The Group estimates its recoverable amount on a single asset basis; If IT IS DIFFICULT TO
ESTIMATE THE RECOVERABLE AMOUNT of a single asset, THE recoverable amount of the asset group shall be determined on the basis of
the asset group to which the asset belongs. The identification of the asset group shall be based on whether the main cash inflow generated by
the asset group is independent of other assets or the cash inflow of the asset group.
After the impairment test, if the carrying value of the asset exceeds its recoverable amount, the difference will be recognized as an impairment
loss. Once the impairment loss of the said asset is recognized, it will not be transferred back in the subsequent accounting period.
32. Long-term deferred expenses
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Long-term unamortized expenses of the Group refer to expenses that have been paid 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 are amortized on average during the benefit period. If
the long-term unamortized expense item cannot benefit the subsequent accounting period, the amortized value of the item that has not been
amortized will be transferred to the current profit and loss.
33. Contractual liabilities
The Group presents contractual assets or contractual liabilities in the balance sheet based on the relationship between the performance of
obligations and customer payment. Obligations of the Group to transfer goods or services to customers for which consideration has been
received or receivable are shown as contractual liabilities. Contractual assets and contractual liabilities under the same contract are shown as
net.
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-resignation benefits
Post-resignation benefits mainly include basic endowment insurance, unemployment insurance, etc. According to the risks and obligations borne
by the company, they are classified into set withdrawal plan and set benefit plan. For the set escrow plan, the EScrow paid to a separate subject
in exchange for the services provided by employees during the accounting period on the balance sheet date is recognized as liabilities, and
recorded into the current profit and loss or related asset costs according to the beneficiaries.
(3) The accounting treatment method of dismissal welfare
(4) Accounting treatment methods for other long-term employee benefits
35. Lease liabilities
(1) Initial measurement
The Group initially measures the lease liability at the present value of the outstanding lease payments on the commencement date of the lease
period.
1) Amount of lease payment
The amount of lease payment refers to the amount paid by the Group to the lessor in connection with the right to use the leased assets during
the lease term, including: (1) the fixed amount and the substantial fixed amount, deducting the amount related to the lease incentive if there is a
lease incentive; (2) a variable lease payment subject to an index or ratio, which at the time of initial measurement is determined from the index or
ratio on the commencement date of the lease term; ③ The exercise price of the option when the Group reasonably determines that the option
will be exercised; (4) The lease term reflects the amount of money to be paid when the Group exercises the option to terminate the lease; ⑤
The amount expected to be paid based on the residual value of the guarantee provided by the Group.
2) Discount rate
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In calculating the present value of the lease payments, the Group uses the incremental borrowing rate as the discount rate. This incremental
borrowing rate is the interest rate that the Group would have to pay to borrow funds on similar collateral terms during a similar period in a similar
economic environment in order to acquire an asset with a value close to that of the asset used. The interest rate is related to the following
matters: ① the Group's own situation, that is, the Group's solvency and credit status; ② the term of the "loan", namely the lease period; (3) The
amount of "borrowed" funds, i.e. the amount of lease liabilities; (4) "mortgage conditions", namely the nature and quality of the underlying assets;
⑤ Economic environment, including the lessee's jurisdiction, currency, contract signing time, etc. The Group derives this incremental borrowing
rate based on the bank lending rate, taking into account the above factors and adjusting.
(2) Follow-up measurement
After the commencement of the lease period, the Group shall make subsequent measurement of the lease liabilities according to the following
principles: (1) Increase the carrying amount of the lease liabilities when the interest on the lease liabilities is recognized; (2) Reduce the carrying
amount of lease liabilities when making lease payments; ③ When the amount of lease payment changes due to revaluation or lease change,
the book value of lease liabilities shall be measured again.
The Group calculates the interest expense of the lease liability in each period of the lease term according to the fixed periodic interest rate and
records it into the current profit and loss, except those that should be capitalized. The periodic interest rate refers to the discount rate adopted by
the Group in the initial measurement of lease liabilities, or the revised discount rate adopted by the Group in the case of a change in lease
payments or a change in lease that requires the Group to re-measure lease liabilities in accordance with the revised discount rate.
(3) Re-measurement
After the commencement of the lease term, the Group shall re-measure the lease liability according to the present value of the lease payment
after the change and adjust the book value of the asset of the right of use accordingly if any of the following circumstances occur. If the book
value of the right asset has been reduced to zero, but the lease liability still needs to be further reduced, the Group will record the remaining
amount into the current profit and loss. ① Changes in the substantial fixed payment amount (in this case, the original discount rate shall be used
for discount); ② The estimated payable amount of the residual value changes (in such case, the original discount rate shall be used for
discount); ③ There is a change in the index or ratio used to determine the lease payment (in which case the revised discount rate is applied); (4)
The evaluation result of the purchase option changes (in this case, the revised discount rate is used to discount); ⑤ Change in the evaluation
result or actual exercise of the option to renew or terminate the lease (in such cases, the revised discount rate shall be adopted for discount).
36. Expected liabilities
When the business related to external guarantee, discount of commercial acceptance bill, pending litigation or arbitration, product quality
assurance and other contingent matters simultaneously meets the following conditions, the Group will recognize it as a liability: The obligation is
the current obligation undertaken by the Group; The performance of the obligation is likely to lead to the outflow of economic benefits from the
enterprise; The amount of the obligation can be measured reliably.
Projected liabilities are initially measured at the best estimate of the expenditures required to meet the relevant current obligations, taking into
account factors such as risks, uncertainties and the time value of money associated with contingencies. Where the time value of money has a
significant impact, the best estimate is determined by discounting the relevant future cash outflows. The book value of the estimated liabilities is
reviewed on each balance sheet date and adjusted to reflect the current best estimate if there is any change.
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37. Payment in shares
Equity-settled share-based payment in exchange for services provided by the employee, measured at the fair value of the equity instrument
granted to the employee on the grant date. in the case that the amount of the fair value is feasible only after the completion of the services in the
waiting period or the achievement of the stipulated performance conditions, it shall be calculated into the relevant costs or expenses by the
straight-line method based on the best estimate of the number of feasible rights and equity instruments during the waiting period, and the capital
reserves shall be increased accordingly.
Share payments settled in cash are measured at the fair value of liabilities assumed by the Group based on shares or other equity instruments. If
the right is available immediately after the grant, the fair value of the liabilities 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 stipulated
performance conditions before the right is feasible, on each balance sheet date of the waiting period, based on the best estimate of the situation
of the right, the services obtained in the current period will be included in the cost or expense according to the fair value amount of liabilities
borne by the Group, and liabilities will be adjusted accordingly.
On each balance sheet date and settlement date before the relevant liabilities are settled, the fair value of the liabilities shall be re-measured,
and the change shall be recorded into the current profit and loss.
38. Preferred stock, perpetual bond and other financial instruments
39. income
The accounting policies used for revenue recognition and measurement
The accounting policies used for revenue recognition and measurement
The accounting policies used for revenue recognition and measurement
The Group has fulfilled the performance obligation in the contract, which is to recognize the revenue when the customer obtains control of the
relevant goods or services. Specific criteria for recognition of revenue from sales of goods: the company delivers the goods to the customer to
confirm the realization of revenue from sales of goods.
If the contract contains two or more performance obligations, at the beginning of the contract, the Group shall apportion the transaction price to
each individual performance obligation according to the relative proportion of the individual selling price of the commodity or service promised by
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 that the Group is expected to be entitled to receive in connection with the transfer of goods
or services to the Customer, excluding payments received on behalf of third parties. The transaction price recognized by the Group does not
exceed the amount at which there is a high probability that cumulative recognized revenues will not be materially reversed upon the elimination
of the relevant uncertainty. It is expected that refunds to customers will not be included in the transaction price as liabilities. If there is a
significant financing component in the contract, the Group shall fix the transaction price on the basis of the amount payable which is assumed to
be paid in cash 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 term of the contract using the effective interest rate method. On the commencement date of the
contract, if the Group expects that the interval between the customer's acquisition of control over the goods or services and the customer's
payment is not more than one year, the significant financing component in the contract is not considered.
If one of the following conditions is met, the Group shall fulfill the obligation of performance within a certain period of time; Otherwise, it falls
under the obligation to perform at a certain point:
(1) When the Group performs the contract, the customer obtains and consumes the economic benefits brought by the Group's performance.
(2) The customer can control the goods under construction in the process of the Group's performance.
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(3) The commodities produced in the course of the Group's performance are of non-substitutable use and the Group is entitled to receive
payment throughout the term of the Contract for the aggregate portion of the performance completed so far.
For the performance obligations performed within a certain period of time, the Group recognizes the revenue according to the progress of the
performance within that period. If the performance progress cannot be reasonably determined, and the costs already incurred by the Group are
expected to be compensated, the revenue shall be recognized according to the amount of the costs already incurred until the performance
progress can be reasonably determined.
For performance obligations performed at a certain point, the Group recognizes revenue at the point when the customer obtains control of the
relevant goods or services. In determining whether a customer has taken control of a good or service, the Group considers the following signs:
(1) The Group has the current right to receive payment in respect of the goods or services.
(2) The Group has transferred legal ownership of the commodity to the customer.
(3) The Group has physically transferred the commodity to the customer.
(4) The Group has transferred the major risks and rewards in the ownership of the commodity to the customer.
(5) The customer has accepted the goods or services, etc.
The right to receive consideration for goods or services transferred by the Group to the customer is listed as the contract asset, and the
impairment of the contract asset is calculated on the basis of expected credit loss. The Group's unconditional right to receive consideration from
customers is shown as receivables. The Group's obligation to transfer goods or services to customers due to their consideration for the goods
received is shown as contractual liabilities.
A situation in which similar businesses adopt different operating models, resulting in differences in revenue recognition accounting policies
A situation in which similar businesses adopt different operating models, resulting in differences in revenue recognition accounting policies
A situation in which similar businesses adopt different operating models, resulting in differences in revenue recognition accounting policies
40. Government subsidies
Government subsidy means that the group obtains monetary assets or non-monetary assets free of charge from the government. Among them,
the government subsidies related to assets refer to the government subsidies obtained by the Group for the purchase and construction or the
formation of long-term assets by other means; The government subsidy related to income refers to the government subsidy other than the
government subsidy related to assets. If the government document does not clearly specify the subsidy object, the group will judge according to
the above distinction principle. If it is difficult to distinguish, the whole group will be classified as the government subsidy related to income.
If the government subsidy is a monetary asset, it shall be measured according to the amount actually received. For the subsidy allocated
according to the fixed quota standard, or for the subsidy at the end of the year that there is solid evidence that it can meet the relevant conditions
stipulated by the financial support policy and is expected to receive the financial support fund, it shall be measured according to the amount
receivable; If the government subsidy is a non-monetary asset, it shall be measured according to the fair value. If the fair value cannot be
obtained reliably, it shall be measured according to the nominal amount (1 yuan).
The government subsidies related to the assets shall be recognized as deferred income, and the government subsidies related to the assets
shall be recorded into the current profit and loss according to the straight-line method in the service life of the relevant assets.
If the relevant asset is sold, transferred, scrapped or damaged before the end of its useful life, the balance of the relevant deferred income that
has not been distributed shall be transferred to the profit or loss of the asset disposal period.
Government subsidies related to earnings, which are used to compensate related costs or losses in subsequent periods, shall be recognized as
deferred earnings and recorded into current profits and losses in the period of recognition of related costs or losses. Government subsidies
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related to daily activities shall be included in other income according to the economic business essence. Government subsidies unrelated to
daily activities shall be included in non-operating income and expenditure.
If the Group obtains policy preferential loans with discounted interest, the accounting treatment shall be carried out in accordance with the
following principles when the financial department appropriates the discount interest funds to the lending bank and the financial department
directly appropriates the discount interest funds to the Group:
(1) If the finance allocates the discount interest fund to the lending bank, and the lending bank provides the loan to the Group at the policy
preferential interest rate, the Group shall take the actual amount of the loan as the recorded value of the loan, and calculate the relevant
borrowing expenses according to the loan principal and the policy preferential interest rate.
(2) The finance will directly allocate the discount interest funds to the Group, and the Group will offset the corresponding discount interest
against the relevant borrowing costs.
The government subsidies confirmed by the Group that need to be returned shall be accounted for according to the following provisions in the
current period:
1) If the book value of relevant assets is written down during initial recognition, the book value of assets shall be adjusted.
2) If there is relevant deferred income, the book balance of relevant deferred income shall be written down, and the excess part shall be booked
into the current profit and loss.
3) Other cases shall be directly included in current profits and losses.
41. Deferred tax assets/deferred tax liabilities
The deferred tax assets and deferred tax liabilities of the Group are calculated and recognized on the basis of the difference (temporary
difference) between the tax basis of the assets and liabilities and their carrying values. For the deductible losses that can offset the taxable
income amount in subsequent years in accordance with the tax law, the corresponding deferred income tax assets shall be recognized. For
temporary differences arising from the initial recognition of goodwill, the corresponding deferred tax liability is not recognized. The corresponding
deferred TAX assets and deferred TAX liabilities shall not be recognized for temporary DIFFERENCES ARISING from the initial recognition of
assets or liabilities arising from a non-business combination transaction that does not affect accounting profit or taxable income (or DEDUCtible
loss). On the balance sheet date, the deferred tax assets and deferred tax liabilities shall be measured at the applicable tax rates during the
period of expected recovery of the assets or repayment of the liabilities.
The Group recognizes deferred tax assets to the extent that future taxable income is likely to be obtained to offset deductible temporary
differences, deductible losses and tax deductions.
42. lease
(1) Accounting treatment of operating lease
Treatment of rent
During each period of the lease term, the Group recognizes lease receipts from operating leases as rental income using the straight-line method.
The incentives offered
If the rent-free period is provided, the Group shall distribute the total rental amount in the whole lease period without deducting the rent-free
period according to the straight-line method, and the rental income shall be recognized during the rent-free period. If the Group undertakes
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certain expenses of the Lessee, such expenses shall be deducted from the total rental income and distributed according to the balance of the
deducted rental income during the lease term.
Initial direct expense
The initial direct expenses incurred by the Group in connection with the operating leases shall be capitalized to the cost of the underlying assets
under lease and recorded into the current profits and losses on the same basis of recognition as the rental income during the lease period.
depreciation
For the fixed assets in the operating leasing assets, the Group adopts the depreciation policy of similar assets to calculate and withdraw
depreciation; For other operating leasing assets, the amortization shall be carried out in a systematic and reasonable way.
Variable lease payments
Variable lease payments obtained by the Group in connection with operating leases that are not included in lease receipts are recorded in
current profit and loss when actually incurred.
Changes in the operating lease
If an operating lease is changed, the Group shall, starting from the effective date of the change, treat it as a new lease, and the advance or
receivable lease collection related to the lease before the change shall be regarded as the amount of the new lease.
(2) Accounting treatment of finance lease
Initial measurement
On the commencement date of the lease term, the Group shall recognize the financial lease receivable and terminate the recognition of the
financial lease assets. When the Group makes the initial measurement of the financial lease receivables, it takes the net lease investment as the
recorded value of the financial lease receivables.
The net lease investment is the sum of the unsecured residual value and the present value of the lease collection not yet received at the
commencement date of the lease term discounted at the embedded interest rate. Lease collection refers to the amount of money that the lessor
should collect from the lessee for transferring the right to use the leased asset during the lease term, including: ① the fixed amount and
substantial fixed amount to be paid by the lessee; If there is a lease incentive, the relevant amount of the lease incentive shall be deducted; (2) a
variable lease payment subject to an index or ratio, which at the time of initial measurement is based on the index or ratio on the commencement
date of the lease term; (3) the exercise price of the option to purchase, provided that the lessee is reasonably certain to exercise the option; (4)
the amount of money to be paid when the lessee exercises the option to terminate the lease, provided that the lease period reflects that the
lessee will exercise the option to terminate the lease; ⑤ The residual value of the guarantee provided to the lessor by the lessee, the party
related to the lessee and the independent third party that has the economic ability to fulfill the guarantee obligation.
Subsequent measurement
The Group calculates and recognizes interest income for each period of the lease term at a fixed periodic rate. The periodic interest rate, it is to
point to determine the net investment in the lease use contains the discount rate (if relet, sublet's interest rate implicit in the lease cannot be
determined, using the original leasing of the discount rate (adjustments according to the initial direct costs related to sublease)), or change in the
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financing lease is not as a separate lease accounting treatment, and meet if changes to take effect on the lease beginning date, The lease will
be classified as a finance lease at the revised discount rate determined in accordance with the relevant provisions.
Accounting for lease changes
If the financial lease is changed and the following conditions are met, the Group shall account for the change as a separate lease: ① The
change expands the lease scope by adding the right to use one or more leased assets; (2) The increased consideration is equivalent to the
separate price of the extended part of the lease adjusted for the circumstances of the contract.
If the change of financing lease is not as a single lease accounting treatment, and meet if changes to take effect on the lease beginning date, the
lease will be classified as an operating lease terms, the group since the day of the effect of the change of it as a new lease accounting treatment,
and prior to the effect of the change of the net investment in the lease as the book value of the leased asset.
43. Other important accounting policies and estimates
44. Significant changes in accounting policies and estimates
(1) Changes in important accounting policies
Applicable Not applicable
The content and reason of accounting policy
The examination and approval procedures note
change
See statement in box below Approval of the board
In December 2018, the Ministry of Finance revised and issued Accounting Standards for Business Enterprises No. 21 - Leasing (Accounting and
Accounting [2018] No. 35) (hereinafter referred to as the "New Leasing Standards"). In preparing the 2021 annual financial statements, the
Group implemented the relevant accounting standards and dealt with them in accordance with the relevant connection provisions.
Based on the cumulative impact of the first implementation of the new leasing criteria, the Group adjusts the amount of retained earnings and
other related items in the financial statements at the beginning of the year of the first implementation, without adjusting the information in the
comparable period. For the operating leases prior to the first execution date, the Group measures the lease liabilities based on the present value
of the remaining lease payments discounted at the incremental borrowing rate on the first execution date, and for all leases, it measures the use
assets based on the amount equal to the lease liabilities and the necessary adjustments based on the prepaid rent.
The Group's implementation of the new leasing guidelines had no impact on the balance sheet at 1 January 2021
(2) Changes in important accounting estimates
Applicable Not applicable
The content and reason of The examination and approval The point at which it starts to
note
accounting estimate change procedures apply
See statement in box below Approval of the board October 01, 2021
Since January 1, 2019, the Group has implemented the Accounting Standards for Business Enterprises No. 22 -- Recognition and Measurement
of Financial Instruments, Accounting Standards for Business Enterprises No. 23 -- Transfer of Financial Assets, Accounting Standards for
Business Enterprises No. 24 -- Hedging and Accounting Standards for Business Enterprises No. 37 newly revised by the Ministry of Finance No.
-- Presentation of Financial Instruments (hereinafter referred to as the "New Financial Instrument Standards"). In order to more reasonably reflect
the impact of current and future credit risks of receivables on the Company's financial condition and operating results, the Group calculates
"aging migration rate" and "expected credit loss rate" according to historical data. The "expected credit loss ratio" is reassessed based on the
impact of industry environment, economic environment and forward-looking information. According to the provisions of Accounting Standards for
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Business Enterprises No. 28 - Accounting Policies, Accounting Estimates Changes and Error Correction, this change in accounting estimates
adopts the future applicable method and has no impact on the financial position and operating results of the Group in previous years. Major
Changes:Expected loss rate of receivables：
aging Proportion before change Proportion after change
Within 1 year 1.00% 5.00%
1 to 2 years 5.00% 10.00%
2 to 3 years 20.00% 20.00%
3-4 years 40.00% 50.00%
Four to five years 60.00% 80.00%
More than 5 years 100.00% 100.00%
Expected loss rate of other receivables:：
aging Proportion before change Proportion after change
Within 1 year 2.00% 5.00%
1 to 2 years 10.00% 10.00%
2 to 3 years 20.00% 20.00%
3-4 years 40.00% 50.00%
Four to five years 50.00% 80.00%
More than 5 years 100.00% 100.00%
The effect of the change in accounting estimates on the total profit
Changes in accounting estimates
of the current year
Change the expected credit loss rate 40,238,707.02
A combined 40,238,707.02
45.other
VI.Taxation
1. The main applicable tax and rate to the Group as follows:
tax Plan tax basis Tax rate
The VAT Value-added of taxable income 13%, 9%，6%，5%
Urban maintenance and construction tax VAT payable 7%
Corporate income tax Taxable income 15% or25%
Education fee surcharge VAT payable 3%
Local education surcharge VAT payable 2%
70% of the original value of the self-used
The property tax property or the rental income of the rented 1.2%or12%
property
Land use tax Area of land use right 6yuan/Square meters
Where there are tax payers with different corporate income tax rates, the disclosure information shall be explained
Tax principles EIT rate
Wafangdian Bearing Co., LTD 15%
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%
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Wafangdian Bearing Co., LTD 2022 Midyear Report
2. Tax benefits
The company obtained the high and new technology enterprise certification qualification on December 3, 2020. The certificate number of high
and new Technology Enterprise certification is GR202021200656, and the validity period is 3 years. The company's subsidiary, Wazhou
Liaoyang Bearing Manufacturing Co., LTD., obtained the qualification of high and new Technology enterprise certification on September 15,
2020. The certificate number of high and new Technology Enterprise certification is GR202021000550, and the validity period is 3 years.
According to the tax law, it can enjoy the preferential tax policy of collecting corporate income tax at the rate of 15% within three years.
3. other
VII. Notes to consolidated financial statements
1. Monetary fund
In RMB Yuan
project The ending balance Beginning balance
Cash on hand 2,212.63 8,510.17
Bank deposits 252,090,686.72 209,839,386.25
Other monetary funds 60,164,632.31 76,628,805.27
A combined 312,257,531.66 286,476,701.69
2.Trading financial assets
In RMB Yuan
project The ending balance Beginning balance
Financial assets measured at fair value and
whose changes are recorded in current profit 294,302.60 322,037.93
or loss
Among them:
Equity instrument investment 294,302.60 322,037.93
Among them:
A combined 294,302.60 322,037.93
3. Derivative financial assets
4.Notes receivable
（1）Category of notes receivable
Items Closing Balance Opening Balance
Bank acceptance notes 462,361,440.41 445,227,090.19
Trade acceptance notes 36,608,740.93 62,744,043.50
Total 498,970,181.34 507,971,133.69
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Wafangdian Bearing Co., LTD 2022 Midyear Report
（2） Bad debt provision of notes receivable accrued, collected and reversed
Bad debt provision of notes receivable：
Change during the year
Category Opening balance Closing Balance
Accrued Collected/reversed Written-off others
Bad debt
2,978,533.87 2,978,533.87
provision
Total 2,978,533.87 2,978,533.87
（3） Pledged notes receivable up to the end of year.
（4） Notes receivable endorsed or discounted but not mature at the end of yea
Item Closing amount no more recognized Closing amount still recognized
Bank acceptance notes 403,653,002.21
Trade acceptance notes 30,250,844.00
Total 433,903,846.21
（5） Transfer to receivable as the drawer’s default of performance of obligation
Item Closing amount
Bank acceptance notes 1,500,000.00
Total 1,500,000.00
5.Accounts receivable
（1） Category of accounts receivable
Closing Balance Opening Balance
Booking Booking
Items Provision Booking Provision Booking
balance balance
Amount % Amount % value Amount % Amount % value
Accounts
receivable with 85,699,0 7.32 85,699,07 100. 87,004,581.3 7.56 87,004,581.3 100.00
individual bad 76.75 % 6.75 00% 8 % 8 %
debt provision
Accounts
receivable with
bad debt
1,084,42 92.6 64,990,11 5.99 1,019,437, 1,064,444,42 92.4 64,990,113.1 999,454,
provision based 6.11%
7,682.38 8% 3.11 % 569.27 1.51 4% 1 308.40
on the characters
of credit risk
portfolio
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Wafangdian Bearing Co., LTD 2022 Midyear Report
927,236, 79.2 64,990,11 7.01 862,246,1 889,978,615. 77.2 64,990,113.1 824,988,
-Aging portfolio 7.30%
246.01 4% 3.11 % 32.90 10 9% 1 501.99
-Related party 157,191, 13.4 157,191,4 174,465,806. 15.1 174,465,
436.37 3% 36.37 41 5% 806.41
portfolio
1,170,12 150,689,1 1,019,437, 1,151,449,00 100. 151,994,694. 999,454,
Total
6,759.13 89.86 569.27 2.89 00% 49 308.40
Accounts receivable with the bad debt provisions under accounting aging analysis method
Aging Closing Balance
Within 1 year 1,170,126,759.13
Total 1,170,126,759.13
（2）Provision for bad debts accrued, withdrawn or rolled back in the current period
Current provision for bad debts：
Change during the year
Category Opening balance Closing Balance
Accrued Other increase Collected/reversed Written-off
bad debts 151,994,694.49 1,305,504.63 150,689,189.86
total 151,994,694.49 1,305,504.63 150,689,189.86
（3） Accounts receivable written off in current period
Item Written-off Amount
Accounts receivable written off 1,305,504.63
Important Account receivables accrued written down situations:：
Nature of Procedure to be Caused by related
Company name amount reason
receivable performed party
Beijing Jingcheng Star Technology Unable to Internal
Trade payment 55,100.00 N
Development Co. LTD recover approval
Tangshan Huahang Mechanical and Unable to Internal
Trade payment 247,147.40 N
Electrical Pioneer Equipment Co. LTD recover approval
Jinzhai Pengfei Steel Structure Steel Unable to Internal
Trade payment 246,400.00 N
Frame Engineering Co. LTD recover approval
Unable to Internal
Wuxi Yutong Bearing Co. LTD Trade payment 149,427.42 N
recover approval
Shandong Fengyuan Tongda Electric
Unable to Internal
Power Co., LTD. Zhongke Ecological Trade payment 96,030.20 N
recover approval
Branch
Jiangsu Yali explosion-proof Motor Co. Unable to Internal
Trade payment 77,349.65 N
LTD recover approval
Unable to Internal
Shanxi Coking Co., LTD Trade payment 3,456.00 N
recover approval
Total 874,910.67
（4） The top five significant accounts receivable categorized by debtors
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Wafangdian Bearing Co., LTD 2022 Midyear Report
Items Opening balance Proportion of receivable (%) Closing Balance
First 84,763,235.04 7.24%
Second 43,713,140.91 3.74%
Third 21,243,764.61 1.82% 2,185,657.05
Forth 16,489,786.28 1.41%
fifth 16,144,591.26 1.38%
total 182,354,518.10 15.59%
6.Financing of receivables
Items Closing Balance Opening balance
Bank acceptance notes 47,419,743.25 28,115,340.20
Trade acceptance notes 22,146,149.74
Total 69,565,892.99 28,115,340.20
7.Prepayment
（1） Aging of advances to suppliers
Closing Balance Opening Balance
Items
Amount Percentage (%) Amount Percentage (%)
Within 1 year 48,416,987.07 95.62% 45,584,745.37 98.44%
1 to 2 years 2,074,797.30 4.10% 661,075.82 1.43%
2 to 3 years 144,015.39 0.28% 59,879.31 0.13%
Total 50,635,799.76 46,305,700.50
（2） The top five significant advances to suppliers categorized by debtors
Items Closing Balance Age Proportion of receivable(%)
Daye Special Steel Co 10,950,845.15 Within 1 year 21.63%
Hephys Heat Treatment System Jiangsu
5,640,000.00 Within 1 year 11.14%
Co. LTD
Zhejiang RIFA Precision Machinery Co.,
5,320,000.00 Within 1 year 10.51%
Ltd.
Fushun Special Steel Co. LTD 4,916,455.14 Within 1 year 9.71%
Bengang Steel Plates Co.,Ltd 3,055,766.42 Within 1 year 6.03%
Total 29,883,066.71 — 59.02%
8.Other receivables
Items Closing Balance Opening Balance
Other receivable 13,876,214.45 9,531,860.12
Total 13,876,214.45 9,531,860.12
（1）Interest receivable
（2） Dividends receivable
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Wafangdian Bearing Co., LTD 2022 Midyear Report
（3） Other receivable
1） The categories of other receivable by nature
Nature Closing Balance Opening Balance
Security deposit 6,407,742.38 4,603,536.29
Deposit 81,010.00 157,560.00
Personal petty cash 269,515.64 95,518.64
Others 16,195,566.67 13,782,960.20
Total 22,953,834.69 18,639,575.13
2） Categories of other receivable
1st stage 2nd stage 3rd stage
Expected credit
Expected credit loss within life Expected credit loss within life
Provision for bad debt loss within Total
time time
following 12
(unimpaired) (impaired)
months
Balance on January 1,
9,107,715.01 9,107,715.01
2022
On January 1, 2022
Other receivable carrying
amount on the book
Reversed 30,094.77 30,094.77
Balance on June 30, 2022 9,077,620.24 9,077,620.24
Other receivables listed by aging
Aging Closing Balance
Within 1 year (including 1year) 12,477,004.34
1-2 years 1,740,980.15
2-3 years 297,460.99
Over 3 years 8,438,389.21
3-4years 1,926,289.81
4-5years 165,000.00
Over 5 years 6,347,099.40
Total 22,953,834.69
3） Bad debt provision accrued or reversed
Change during the year
Category Opening balance Collected/ Closing Balance
Accrued Written-off Others
reversed
Provision for bad
9,107,715.01 30,094.77 9,077,620.24
debt
Total 9,107,715.01 30,094.77 9,077,620.24
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Wafangdian Bearing Co., LTD 2022 Midyear Report
4） Other receivables actually written off in the current period
5）Other receivables from the top 5 debtors
Closing Balance of
Name Category Closing Balance Aging % of the total OR
Provision
Liaoning Electric Power
Prepay bill 5,127,768.17 Within 1 year 22.34%
Supply Co.,Ltd
Prepayments of
Benxi Steel Plate Co., Ltd 1,280,000.00 Over 5 years 5.58% 1,280,000.00
Materials
Luoyang Zhongzhu Casting Prepayments of
723,598.86 Over 5 years 3.15% 723,598.86
Plant Materials
Beijing Guangzhengxing
Prepayments of 3-4 years
Energy Technology 320,940.17 1.40% 320,940.17
Materials Over 5 years
Development Co., Ltd
Ansteel Supply and Prepayments of
319,694.17 Over 5 years 1.39% 319,694.17
Marketing Company Materials
Total 7,772,001.37 33.86% 2,644,233.20
9.Inventories
（1） Categories of inventories
Closing Balance Opening Balance
Items Provision for
Book value Provision for decline Net book value Book value Net book value
decline
Raw materials 66,638,996.47 7,318,933.99 59,320,062.48 57,373,892.68 6,066,317.93 51,307,574.75
WIP 161,668,132.24 13,825,242.26 147,842,889.98 161,638,949.72 13,872,799.81 147,766,149.91
Finished goods 642,405,850.69 127,765,858.89 514,639,991.80 635,794,071.69 139,762,806.19 496,031,265.50
Goods on
31,539,983.22 31,539,983.22 13,657,527.28 13,657,527.28
transit
Low-value
595,534.37 595,534.37 1,849,446.76 1,849,446.76
consumable
Total 902,848,496.99 148,910,035.14 753,938,461.85 870,313,888.13 159,701,923.93 710,611,964.20
（2） Provision for decline in the value of inventories
Increase Reduction in current period
Items Opening Balance To turn back or sell The ending balance
Accrual Other other
off
The raw
6,066,317.93 1,252,616.06 7,318,933.99
materials
In the product 13,872,799.81 47,557.55 13,825,242.26
Inventory goods 139,762,806.19 11,996,947.30 127,765,858.89
A combined 159,701,923.93 1,252,616.06 12,044,504.85 148,910,035.14
10. Contractual assets
Closing Balance Beginning balance
project
Provision for Provision for
Book value Net book value Book value Net book value
decline decline
Payment for
5,207,877.43 198,093.77 5,009,783.66 3,961,875.32 198,093.77 3,763,781.55
performance of
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Wafangdian Bearing Co., LTD 2022 Midyear Report
the contract
A combined 5,207,877.43 198,093.77 5,009,783.66 3,961,875.32 198,093.77 3,763,781.55
Amounts and reasons for material changes in book value of contract assets during the current period:
project Changes in the amount Change the reason
Payment for performance of the
1,246,002.11 The needs of customers
contract
A combined 1,246,002.11 ——
If the provision for impairment of contracted assets is made in accordance with the general model of expected credit losses, please refer to the
disclosure method of other receivables to disclose the relevant information of the impairment provision:
□ Applicable Not applicable
11. Holding assets for sale
12. Non-current assets maturing within one year
13. Other current assets
project The ending balance Beginning balance
VAT to be deducted 659,545.15 5,578,651.12
Advance income tax 49,299.96
A combined 659,545.15 5,627,951.08
14. Bond investment
15. Other debt investments
16. Long-term receivables
17. Long-term equity investment
18. Investment in other equity instruments
Items Closing Balance Opening Balance
Shanghai ME Mechanical & Electrical
2,000,000.00 2,000,000.00
Equipment Chain Co., Ltd
Qian’an Zhayi Iron & Steel Group Co. Ltd 2,503,766.95 2,503,766.95
Dalian Huilong Industry& Trade Company’s
7,423,089.69 7,423,089.69
share
Total 11,926,856.64 11,926,856.64
Itemized disclosure of the current period of non-trading equity instruments investment
It is specified as
Amount of other the reason that is
Other
comprehensive measured at fair
Recognized The comprehensive
The cumulative income value and its
project dividend cumulativ income into
gains transferred to change is
income e loss retained earnings
retained included in other
reasons
earnings comprehensive
income
Qian’an Zhayi Iron & Steel
18,821.12 37,642.24
Group Co. Ltd
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Wafangdian Bearing Co., LTD 2022 Midyear Report
19. Other non-current financial assets
20. Investment real estate
(1) Investment real estate with cost measurement model
Applicable □ Not applicable
Projects under
project Houses. Buildings. Land use right A combined
construction
I. Original book value
1. Opening balance 72,986,049.34 52,861,118.81 125,847,168.15
2. Increase in current period
(1) Outsourcing
(2) inventory \ fixed
assets \ Construction in progress
transfer
(3) Business mergers
increased
3. Reduction in current
period
(1) Disposal
(2) Other transfer out
4. Closing balance 72,986,049.34 52,861,118.81 125,847,168.15
II.Accumulated depreciation and
accumulated amortization
1. Opening balance 37,063,564.08 19,921,292.69 56,984,856.77
2. Increase in current period 1,315,320.41 660,756.00 1,976,076.41
(1) Provision or
1,315,320.41 660,756.00 1,976,076.41
amortization
3. Reduction in current
period
(1) Disposal
(2) Other transfer out
4. Closing balance 38,378,884.49 20,582,048.69 58,960,933.18
III. Impairment provision
1. Opening balance
2. Increase in current period
(1) Provision and
withdrawal
3. Reduction in current
period
(1) Disposal
(2) Other transfer out
4. Closing balance
IV. Book value
1. Ending book value 34,607,164.85 32,279,070.12 66,886,234.97
2. Beginning book value 35,922,485.26 32,939,826.12 68,862,311.38
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Wafangdian Bearing Co., LTD 2022 Midyear Report
(2) Investment real estate with fair value measurement mode
□ Applicable Not applicable
(3) The situation of investment real estate whose title certificate is not completed
project The book value Reasons for not completing the title certificate
Liaoyang bearing main factory building 5,574,202.55 The housing certificate is being approved
Liaoyang bearing Company office building 820,633.40 The housing certificate is being approved
21. Fixed assets
project The ending balance Beginning balance
Fixed assets 404,004,529.89 438,220,714.18
A combined 404,004,529.89 438,220,714.18
(1) Fixed assets
Transportati
Machinery and Electronic Other
project House building on A combined
equipment equipment equipment
equipment
I. Original book
value:
1. Opening
1,063,718.18 21,183,613.35 103,094.75 707,760.44 174,268.67 23,232,455.39
balance
2. Increase in
3,691,927.23 26,380,673.08 433,697.32 1,815,583.04 4,508,369.11 36,830,249.78
current period
(1) Purchase 8,274.34 350,442.48 76,991.15 345,685.65 241,414.60 1,022,808.22
(2) Transfer of
projects under 2,223,097.58 129,203.54 115,044.25 626,106.20 3,093,451.57
construction
(3) Business
mergers increased
3. Reduction in
3,423,158.00 3,027,651.55 103,000.01 136,901.22 4,737.00 3,272,289.78
current period
(1) Disposal or
3,423,158.00 3,027,651.55 103,000.01 136,901.22 4,737.00 3,272,289.78
scrapping
4. Closing
1,063,718.18 18,155,961.80 94.74 570,859.22 169,531.67 19,960,165.61
balance
II.Accumulated
depreciation
1. Opening
202,080,315.13 714,681,598.07 11,986,579.65 52,446,931.42 155,477,620.05 1,136,673,044.32
balance
2. Increase in
3,691,927.23 26,380,673.08 433,697.32 1,815,583.04 4,508,369.11 36,830,249.78
current period
(1) Provision and
3,691,927.23 26,380,673.08 433,697.32 1,815,583.04 4,508,369.11 36,830,249.78
withdrawal
3. Reduction in
3,423,158.00 23,207,427.03 1,082,331.32 3,969,117.04 536,294.70 32,218,328.09
current period
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Wafangdian Bearing Co., LTD 2022 Midyear Report
(1)
Disposal or 3,423,158.00 23,207,427.03 1,082,331.32 3,969,117.04 536,294.70 32,218,328.09
scrapping
4. Closing
202,349,084.36 717,854,844.12 11,337,945.65 50,293,397.42 159,449,694.46 1,141,284,966.01
balance
III. Impairment
provision
1. Opening
1,063,718.18 21,183,613.35 103,094.75 707,760.44 174,268.67 23,232,455.39
balance
2. Increase in
current period
(1)
Provision and
withdrawal
3. Reduction
3,027,651.55 103,000.01 136,901.22 4,737.00 3,272,289.78
in current period
(1)
Disposal or 3,027,651.55 103,000.01 136,901.22 4,737.00 3,272,289.78
scrapping
4. Closing
1,063,718.18 18,155,961.80 94.74 570,859.22 169,531.67 19,960,165.61
balance
IV. Book value
1. Ending
82,561,657.59 270,833,109.13 2,790,346.82 12,775,061.36 35,044,354.99 404,004,529.89
book value
2. Beginning
86,245,310.48 296,027,914.23 3,045,936.29 14,202,891.34 38,698,661.84 438,220,714.18
book value
(2) Temporarily idle fixed assets
The original value of Accumulated
project Impairment loss The book value note
the book depreciation
House building 11,592,935.54 9,744,311.89 1,848,623.65 —
Machinery and
8,557,698.04 3,059,282.60 4,805,185.58 693,229.86 —
equipment
Transportation
—
equipment
Electronic
3,386,076.73 3,002,042.61 360,566.95 23,467.17 —
equipment
Other equipment 697,556.19 667,801.81 11,267.67 18,486.71 —
A combined 24,234,266.50 16,473,438.91 5,177,020.20 2,583,807.39 —
(3) Fixed assets leased through operation and leasing
project Ending book value
Electronic equipment 1,792,324.17
Machinery and equipment 84,340,444.34
other 968,340.24
Transportation equipment 280,265.14
A combined 83,305,188.57
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Wafangdian Bearing Co., LTD 2022 Midyear Report
(4) Fixed assets where the title certificate has not been completed
Reasons for not completing the title
project The book value
certificate
Dalian wazhou precision motor car
27,938,319.95 In the process
bearing plant
Liaoyang bearing main factory building 6,020,362.35 In the process
Liaoyang bearing Company office
2,479,539.58 In the process
building
Liaoyang bearing driver processing
1,089,318.06 In the process
workshop
Liaoyang bearing Company staff
762,266.13 In the process
canteen
22. Construction in progress
project The ending balance Beginning balance
Projects under construction 54,169,088.82 25,929,699.29
A combined 54,169,088.82 25,929,699.29
(1) Construction in progress details
Improvement of Closing Balance Opening Balance
7th finished
products Book Balance Provision Book Value Book Balance Provision Book Value
Improvement of
2nd finished 3,931,152.37 3,537,505.62 393,646.75 3,931,152.37 3,537,505.62 393,646.75
products
New plant project 6,772,939.06 6,772,939.06 3,681,416.00 3,681,416.00
Angular Contact
Ball Bearing 4,413,268.39 4,413,268.39 3,074,304.55 3,074,304.55
Production Line
Improvement of
2,654,867.25 2,654,867.25 2,654,867.25 2,654,867.25
plant
Spherical Roller
Bearing 2,389,925.00 2,389,925.00
Assembly Line
Improvement of
876,106.17 876,106.17 1,321,112.55 1,321,112.55
grinding machine
Cylindrical
bearing 1,176,728.37 1,176,728.37 1,257,328.31 1,257,328.31
production line
1250 Salt bath
martensitic heat
treatment
3,433,628.33 3,433,628.33 1,030,088.50 1,030,088.50
production line
press investment
renovation
1250 Salt Bath
Horse/Bainite
831,858.41 831,858.41 831,858.41 831,858.41
Heat Treatment
Production Line
Maintenance and
renovation of
7,008,849.55 7,008,849.55 805,309.73 805,309.73
grinding
production line
Improvement of
741,000.00 741,000.00
precision bearing
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Wafangdian Bearing Co., LTD 2022 Midyear Report
plant
Thielenhaus
6,468,753.21 6,468,753.21 710,194.68 710,194.68
Superfinisher
Improvement of
637,168.14 637,168.14 637,168.14 637,168.14
railway
Installation of
Super finishing 625,647.85 625,647.85
Machine
Controlled
Atmosphere
Multifunctional
456,878.68 456,878.68 456,878.68 456,878.68
Carburizing
Furnace
Production Line
Channel II
construction 2,917,079.65 2,917,079.65 416,725.66 416,725.66
project
Crane Project 259,161.89 259,161.89
Overhaul factory
255,382.52 255,382.52 255,382.52 255,382.52
reconstruction
Cylindrical
bearing inner ring 205,784.79 205,784.79
raceway grinder
Improvement of
precision roller 196,460.18 196,460.18 196,460.18 196,460.18
branch
Grinding product
5,502,116.04 5,502,116.04 166,937.61 166,937.61
line
Computer Project 38,957.26 38,957.26 38,957.26 38,957.26
Dalian industry
25,623.93 25,623.93 25,623.93 25,623.93
park project
Improvement of
7th finished 5,590.46 5,590.46 5,590.46 5,590.46
products
Heat treatment
electrical 1,513,761.46 1,513,761.46
engineering
other 9,833,233.12 786,929.43 9,046,303.69 4,992,136.70 786,929.43 4,205,207.27
Total 58,950,402.55 4,781,313.73 54,169,088.82 30,711,013.02 4,781,313.73 25,929,699.29
(2) Change in the significant construction in progress
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Wafangdian Bearing Co., LTD 2022 Midyear Report
Curre Amount Other Including:
The cumulative Cumulativ Current
nt transferred reduced current
Beginni investment of the e amount interest Sources
Budget increa to fixed amounts The ending Progress of period
The project name ng project accounts for of interest capitaliz of
number se assets in in the balance the project interest
balance the proportion of capitalizat ation funding
amou current current capitalizati
the budget ion rate
nt period period on amount
Improvement of 7th 6,404,69 3,931,15
3,931,152.37 96.37% 96.37% other
finished products 0.27 2.37
Improvement of
6,468,75 710,194. 5,242,8
precision bearing 515,752.21 6,468,753.21 60.00% 60% other
3.21 68 06.32
plant
1,218,65 38,957.2
Grinding product line 38,957.26 77.07% 77.07% other
0.90 6
Improvement of 2nd 6,772,93 3,681,41 3,091,5
6,772,939.06 100.00% 100% other
finished products 9.06 6.00 23.06
6,701,69 3,074,30 1,338,9
New plant project 4,413,268.39 66.85% 66.85% other
1.43 4.55 63.84
Angular Contact Ball
8,849,55 2,654,86
Bearing Production 2,654,867.25 30.00% 30% other
7.52 7.25
Line
Cylindrical bearing 3,433,62 1,030,08 2,403,5
production line
3,433,628.33 30.00% 30% other
8.32 8.50 39.83
39,849,9 15,120,9 12,076,
Total 515,752.21 0.00 27,713,565.87
10.71 80.61 833.05
80
Wafangdian Bearing Co., LTD 2022 Midyear Report
23. Productive biological assets
24. Oil and gas assets
25. Use of assets
26. Intangible assets
(1) Intangible assets
The patent Non patent
project Land use right software total
right technology
I. Original book value
1. Opening balance 123,328,608.93 7,779,798.98 131,108,407.91
2. Increase in current
period
(1) Purchase
(2) Internal research and
development
(3) Business mergers
increased
3. Reduction in current
period
(1) Disposal
4. Closing balance 123,328,608.93 7,779,798.98 131,108,407.91
II. Cumulative
amortization
1. Opening balance 47,740,770.41 6,554,681.58 54,295,451.99
2. Increase in current
1,570,332.70 240,004.30 1,810,337.00
period
(1) Provision and
1,570,332.70 240,004.30 1,810,337.00
withdrawal
3. Reduction in current
period
(1) Disposal
4. Closing balance 49,311,103.11 6,794,685.88 56,105,788.99
III. Impairment provision
1. Opening balance
2. Increase in current
period
(1) Provision and
withdrawal
3. Reduction in current
period
(1) Disposal
4. Closing balance
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Wafangdian Bearing Co., LTD 2022 Midyear Report
IV. Book value
1. Ending book value 74,017,505.82 985,113.11 75,002,618.93
2. Beginning book value 75,587,838.52 1,225,117.40 76,812,955.92
27. Development expenditures
28.Reputation
29. Long-term deferred expenses
Amount of
Current increase Other reduction
project Beginning balance amortization for the The ending balance
amount amount
current period
Amortization of
23,272.53 23,272.53 0.00
major heating repairs
Housing amortization 169,515.71 28,262.65 141,253.06
A combined 192,788.24 51,535.18 141,253.06
30. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets before offsetting: None.
(2) Deferred tax liabilities before offsetting
Closing Balance Opening Balance
Items
Taxabletemporarydifference Deferred tax liabilities Taxabletemporarydifference Deferred tax liabilities
Asset evaluation
increment in business
4,554,909.67 683,236.45 4,554,909.67 683,236.45
combination without the
same control
Total 4,554,909.67 683,236.45 4,554,909.67 683,236.45
(3) Unrecognized deferred tax assets details
Deferred tax assets and
Deferred tax assets and Ending balance of The beginning balance of
liabilities offset amount at
project liabilities offset at the end deferred tax asset or deferred tax asset or
the beginning of the
of the period liability after offset liability after offset
period
Deferred tax liability 683,236.45 683,236.45
(4) The details of deferred tax assets are not recognized
project The ending balance Beginning balance
Deductible temporary differences 349,601,233.44 349,601,233.44
Deductible loss 787,687,057.10 787,687,057.10
A combined 1,137,288,290.54 1,137,288,290.54
(5) The deductible loss on the unrecognized deferred tax asset will become due in the following years
year The ending balance Beginning balance note
2021 36,394,255.27 —
82
Wafangdian Bearing Co., LTD 2022 Midyear Report
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 246,834,379.51 246,834,379.51 —
2026 257,012,570.92 —
total 787,687,057.10 567,068,741.45
31. Other non-current assets
32. Short-term borrowing
(1) Classification of short-term loans
project The ending balance Beginning balance
Credit borrowing 754,000,000.00 677,000,000.00
A combined 754,000,000.00 677,000,000.00
33. Transactional financial liabilities
34. Derivative financial liabilities
35. Notes payable
species The ending balance Beginning balance
Commercial acceptance bill 93,601,000.00 138,258,189.60
Banker's acceptance bill 210,000,000.00 168,000,000.00
A combined 303,601,000.00 306,258,189.60
36. Accounts payable
(1) Presentation of accounts payable
project The ending balance Beginning balance
Payment for goods 1,292,251,348.18 1,216,016,330.62
The payment 31,753,712.69 24,923,842.20
other 7,920,177.81 7,910,156.02
A combined 1,331,925,238.68 1,248,850,328.84
37. Advance collection
38. Contractual liabilities
project The ending balance Beginning balance
Obligations under contract to be
52,233,027.61 38,426,632.29
performed
A combined 52,233,027.61 38,426,632.29
83
Wafangdian Bearing Co., LTD 2022 Midyear Report
39. Employee compensation payable
(1) Salaries payable to employees are listed
project Beginning balance Increase in current The reduced The ending balance
I. Short-term
47,169,767.62 104,016,284.33 138,133,423.33 13,052,628.62
compensation
II. Post-employment
benefits - Set up an 5,624,911.16 18,466,372.95 18,503,912.29 5,587,371.82
escrow plan
III. Dismissal benefits 1,602,179.00 288,364.07 1,854,657.07 35,886.00
A combined 54,396,857.78 122,771,021.35 158,491,992.69 18,675,886.44
(2) Listing of short-term remuneration
project Beginning balance Increase in current The reduced The ending balance
1. Salary and bonus.
43,496,684.24 65,919,887.26 99,975,382.74 9,441,188.76
Allowances and Subsidies
2. Employee welfare fee 54,735.00 9,956,098.14 10,010,833.14 0.00
3. Social insurance
17,293.36 10,801,619.17 10,804,242.13 14,670.40
premiums
Among them: medical
17,024.20 8,189,242.00 8,191,595.80 14,670.40
insurance premium
Work injury insurance
21.26 1,533,388.26 1,533,409.52 0.00
premium
Maternity insurance
247.90 1,078,988.91 1,079,236.81 0.00
premium
4. Housing provident fund 2,274,689.15 16,580,993.96 16,546,967.44 2,308,715.67
5. Union funds and staff
1,326,365.87 757,685.80 795,997.88 1,288,053.79
education funds
A combined 47,169,767.62 104,016,284.33 138,133,423.33 13,052,628.62
(3) Set up the escrow schedule
project Beginning balance Increase in current The reduced The ending balance
1. Basic endowment
5,554,572.82 17,906,470.53 17,943,530.35 5,517,513.00
insurance
2. Unemployment
70,338.34 559,902.42 560,381.94 69,858.82
insurance
A combined 5,624,911.16 18,466,372.95 18,503,912.29 5,587,371.82
40. Taxes payable
project The ending balance Beginning balance
The VAT 12,066,219.08 8,918,814.09
Personal income tax 95,809.20 174,317.22
Urban maintenance and construction tax 685,545.52 395,031.01
84
Wafangdian Bearing Co., LTD 2022 Midyear Report
The property tax 753,670.36 791,779.38
Land use tax 591,354.94 519,023.69
Stamp duty 713,349.05 500,170.64
Education fee surcharge 292,134.57 167,231.59
Local education surcharge 194,756.32 111,487.72
other 8,034.12
A combined 15,392,839.04 11,585,889.46
41. Other payables
project The ending balance Beginning balance
Other payables 187,014,893.16 173,782,184.85
A combined 187,014,893.16 173,782,184.85
(1) Interest payable
(2) Dividends payable
(3) Other payables
1) List other payables according to the nature of payment
Item The ending balance Beginning balance
Tender security and deposit 1,548,890.00 1,548,890.00
Rent payable to the group. Trademark royalties and land
38,306,424.14 38,467,233.37
payments, etc
Authorized dealer Deposit 78,088,421.46 66,230,215.73
other 69,071,157.56 67,535,845.75
A combined 187,014,893.16 173,782,184.85
42. Holding liabilities for sale
43. Non-current liabilities due within one year
44. Other current liabilities
Item The ending balance Beginning balance
Tax on items to be transferred 6,672,010.89 4,995,462.19
A combined 6,672,010.89 4,995,462.19
85
Wafangdian Bearing Co., LTD 2022 Midyear Report
45. Long-term borrowing
46. Bonds payable
47. Lease liabilities
48. Long-term payables
Item The ending 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 long-term payables according to the nature of payments
Item The ending balance Beginning balance
equipments 100,000.00 100,000.00
Special payables 244,974.84 244,974.84
Other notes:
(2) Special payables
Beginning Increase in The ending
project The reduced reasons for the formation
balance current balance
the finance bureau of wafangdian city
and environmental protection bureau of
Special pollution
169,974.84 169,974.84 wafangdian city jointly approved the
control
appropriation with the document "wachai
enterprises [2004]217"
the finance bureau of dalian city and the
economy and information technology
Information
commission of dalian city approved the
technology 75,000.00 75,000.00
appropriation with the documents of
construction
"dacai index enterprise [2012] no.917"
and "dajing xinfa [2012] no.199"
A combined 244,974.84 244,974.84 reasons for the formation
49. Long-term employee compensation payable
50. Projected liabilities
project The ending balance Beginning balance Reasons for the formation
Withholding product
1,333,449.95 1,019,498.65 Withholding product quality indemnity
quality deposit
Wind power product Product quality problems, by the customer to
41,479,988.79 40,381,951.49
quality claim claim compensation
A combined 42,813,438.74 41,401,450.14 Reasons for the formation
86
Wafangdian Bearing Co., LTD 2022 Midyear Report
51. Deferred earnings
Increase in The ending
project Beginning balance The reduced reasons for the formation
current balance
Government
28,524,390.31 2,379,181.68 26,145,208.63 Receive government subsidy
subsidies
Plant and land payment for
Compensation for
building new factory due to
relocation of the 25,609,225.79 25,609,225.79
demolition of old factory in
old factory
Liaozhou
A combined 54,133,616.10 2,379,181.68 51,754,434.42
Projects involving government subsidies:
This period Other
Amount of
This is included income
current Related to
period of in the amounts Other The
Beginning period assets/rela
liabilities new amount of are chang ending
balance write-down ted to
subsidy non- included es balance
cost earnings
amount operating in this
expense
income period
Dalian branch
18,929,650.5 1,352,117.9 17,577,532. Related to
factory demolition
4 4 60 assets
compensation
Special subsidy
fund for
intelligent 3,222,222.2 Related to
3,866,666.69 644,444.40
manufacturing 9 assets
equipment
development
Transformation
project of bearing
base of high-end Related to
472,320.00 236,160.00 236,160.00
equipment assets
manufacturing
industry
Discount subsidy
Related to
for heavy bearing 940,000.00 120,000.00 820,000.00
assets
load projects
Skills master
studio Related to
370,431.01 26,459.34 343,971.67
construction assets
subsidy
Grant from
Related to
Master Liu 43,402.07 43,402.07
assets
Changfu
Liaozhou
company industry 3,901,920.0 Related to
3,901,920.00
development 0 assets
fund
Related to
28,524,390.3 2,379,181.6 26,145,208. assets/rela
A combined
1 8 63 ted to
earnings
87
Wafangdian Bearing Co., LTD 2022 Midyear Report
52. Other non-current liabilities
53. Equity
Addition and decrease of this change (+.-)
Beginning The ending
balance Issuing new Fund share balance
Send shares other subtotal
shares conversion
The total
402,600,000.0 402,600,000.0
number of
0 0
shares
54. Other equity instruments
55. Capital reserves
project Beginning balance Increase in current The reduced The ending 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 stock
57. Other comprehensive income
58. Special reserve
project Beginning balance Increase in current The reduced The ending balance
Safety production fee 853,381.29 853,381.29
A combined 853,381.29 853,381.29
59. Surplus reserve
project Beginning balance Increase in current The reduced The ending balance
Statutory surplus
116,179,772.10 116,179,772.10
reserve
Arbitrary surplus
20,590,618.91 20,590,618.91
reserve
A combined 136,770,391.01 136,770,391.01
60. Undistributed profits
project This period Last period
Undistributed profit at the end of last period before -416,794,159.01 -211,056,473.59
88
Wafangdian Bearing Co., LTD 2022 Midyear Report
adjustment
Adjust later period initial undistributed profit -416,794,159.01 -211,056,473.59
Plus: Net profit attributable to the owner of the parent
-37,455,779.00 -205,737,685.42
company for the current period
Undistributed profit at the end of the period -454,249,938.01 -416,794,159.01
61. Operating income and operating costs
project current period Last period
Sales revenue Cost of sales Sales revenue Cost of sales
Main business 979,691,155.71 838,101,350.15 979,323,679.11 755,074,455.99
Other business 106,125,949.21 77,796,178.12 101,741,174.55 88,212,133.11
A combined 1,085,817,104.92 915,897,528.27 1,081,064,853.66 843,286,589.10
62. Taxes and surcharges
project current period Last period
Urban maintenance and construction tax 1,253,558.49 2,353,667.48
Education fee surcharge 538,989.27 1,659,561.44
The property tax 1,880,694.14 1,317,733.83
Land use tax 1,270,658.38 1,229,139.16
Stamp duty 1,441,258.04 1,088,562.42
other 76,766.97 336,634.91
A combined 6,461,925.29 7,985,299.24
63. Selling expenses
project current period Last period
Employee compensation 33,607,001.53 35,562,658.66
The quality of reparations 3,057,106.21 688,722.79
The freight 493,682.94 2,068,674.53
travel 8,921,342.49 10,785,468.83
Trademark royalties 7,262,617.08 6,109,435.99
Business activity expense 3,889,359.90 4,313,175.00
rent 1,171,050.15 2,910,134.03
"" 95,556.00 211,566.96
Other fees 4,365,769.36 4,267,920.92
A combined 62,863,485.66 66,917,757.71
64.Administrative expenses
project current period Last period
Employee compensation 35,434,550.92 34,528,445.25
89
Wafangdian Bearing Co., LTD 2022 Midyear Report
Amortization of intangible assets 2,463,020.79 2,264,270.78
Guard fire cost 1,163,756.98 1,058,384.10
Depreciation cost 2,589,503.18 932,823.09
Operational hospitality 117,999.09 129,074.38
travel 594,820.52 838,458.84
Other fees 7,104,439.92 6,093,768.87
A combined 49,468,091.40 45,845,225.31
65. Research and development costs
project current period Last period
Material input 76,984,219.22 79,688,577.05
Technical service fee. Design fee. New
process specification development fee
1,663.01 1,602,084.84
(equipment debugging fee - new product
tooling)
Artificial cost 834,075.19 4,180,743.66
Depreciation expense and long-term expense
3,085,522.25 4,857,087.96
amortization
Fuel power 306,116.26 3,796,031.03
R & D equipment repair and rental costs 36,127.13 1,053,218.72
Processing fee 1,589,926.92 1,849,702.58
Test fee 181,238.15 210,850.36
Other fees 1,456,583.93 1,039,490.06
A combined 84,475,472.06 98,277,786.26
66. Financial costs
project current period Last period
Interest charges 16,136,493.70 14,013,998.99
Minus: interest income 621,277.50 240,304.64
Plus: exchange loss -2,178,542.62 1,842,959.48
Other spending 4,747,313.23 5,699,002.65
A combined 18,083,986.81 21,315,656.48
67. Other income
Generate other sources of revenue current period Last period
Dalian branch demolition subsidy 1,352,117.94 1,352,117.94
Steady post subsidies 790,453.12 17,811.01
Transformation project of bearing base in high-end equipment manufacturing industry 236,160.00 236,160.00
Special subsidy fund for intelligent manufacturing equipment development 644,444.40 644,444.42
Discount subsidy for heavy axle load projects 120,000.00 120,000.00
Individual tax fee refund 68,487.96 32,813.61
90
Wafangdian Bearing Co., LTD 2022 Midyear Report
wazhou group union pioneer unit bonus 7,000.00
6296845157 Electronic return 7,845.61 2,316.58
Skills master studio construction subsidy 26,459.34 52,918.71
Dalian Group Map Organization and comprehensive Service Center gave Wu Qiong the prize for her
5,000.00
paper
Receive the first government subsidy in Liaoning Province in 2020 46,000.00
Labor training subsidy 29,560.00 83,020.00
Dalian Bureau of Commerce will open the special fund for the whole year in 2020 464,059.00
Race subsidies 1,500.00
Grant No. 3 [2022] of the Wacai (special direct) 18,400.00
Received the 2019 Dalian Municipal Bureau of Commerce in small funds 401-847 186,240.00
The Social Security Bureau subsidizes the one-time training for workers 500.00
Receive Dalian Science and Technology Bureau 2021 mid-term assessment and acceptance subsidy
521,500.00
funds
Collect Social security and withdraw unemployment benefits 1,696.46
Refund of commission fees for withholding and paying corporate income tax in 2020 13,571.19
Dalian Jinpu New Area employment and social insurance Department award 1,100.00
A combined 4,020,036.02 3,063,661.27
68. Investment income
project current period Last period
Dividend income from investment in other
18,821.12 18,821.12
equity instruments during the holding period
Proceeds from debt restructuring 3,823,030.26 851,442.30
A combined 3,841,851.38 870,263.42
69. Net exposure hedging gain
70. Fair value change income
The source of fair value change income current period Last period
Trading financial assets -27,735.33 183,361.31
A combined -27,735.33 183,361.31
71. Credit impairment loss
project current period Last period
Accounts receivable bad debt loss 761,253.49 30,000.00
A combined 761,253.49 30,000.00
91
Wafangdian Bearing Co., LTD 2022 Midyear Report
72. Impairment loss on assets
73. Gain on disposal of assets
Source of income from disposal of assets current period Last period
Proceeds from the disposal of fixed assets 1,916,580.72 2,727,585.57
74. Non-operating income
The amount included in the non-recurring profit and
project current period Last period
loss of the current period
Fine income 2,561,794.00 217,753.00 2,561,794.00
Write-off of payments that cannot be made 680,868.30 540,287.94 680,868.30
other 267,570.09 59,615.06 267,570.09
total 3,510,232.39 817,656.00
75. Non-operating expenses
The amount included in the non-recurring profit and
project current period Last period
loss of the current period
Loss of non-current assets destroyed
2,207.38 884,578.90 2,207.38
and scrapped
A fine spending 34,773.08 52,330.77 34,773.08
other 7,632.64 14.22 7,632.64
A combined 44,613.10 936,923.89
76. Income tax expense
77. Other comprehensive income
78. Cash flow statement items
(1) Other cash received in connection with operating activities
project current period Last period
Interest income 357,464.63 76,788.52
Government subsidies 2,085,647.11 46,000.00
Come-and-go money 23,882,801.24 56,518,795.54
Return the deposit 237,297.11 139,620.00
other 7,897,579.66 460,844.42
A combined 34,460,789.75 57,242,048.48
(2) Other cash paid in connection with operating activities
project current period Last period
92
Wafangdian Bearing Co., LTD 2022 Midyear Report
Cost of sales 19,237,719.99 222,383.56
Management fees 5,229,473.91 54,265,462.19
Finance charges 347,239.12 135,210.90
other 41,437,041.68 21,865,294.56
A combined 66,251,474.70 76,488,351.21
(3) Other cash received in connection with investing activities
(4) Other cash paid in connection with investment activities
(5) Other cash received in connection with financing activities
project current period Last period
Bill discount 169,643,983.71 38,566,252.78
A combined 169,643,983.71 38,566,252.78
(6) other cash paid in connection with financing activities
project current period Last period
The bill shall be redeemed at maturity 175,540,163.82 50,000,000.00
A combined 175,540,163.82 50,000,000.00
79. Supplementary information on the statement of cash flows
(1) Supplementary information of the cash flow statement
Additional information current period Last period
1. Adjusting net profit to cash flow from operating activities:
Net profit -37,455,779.00 4,192,143.24
Plus: asset impairment provision
Depreciation of fixed assets. Depletion of oil and gas assets.
38,806,326.19 40,083,740.43
Depreciation of productive biological assets
Depreciation of right of use
Amortization of intangible assets 1,810,337.00 1,605,934.46
Amortization of long-term deferred expenses 51,535.18 174,336.84
Loss on disposal of fixed assets, intangible assets and other long-term
-1,916,580.72 -2,727,585.57
assets (marked with "-" for income)
Loss on the scrapping of fixed assets (income marked with "-") 820,370.34
Loss from change in fair value (marked with "-" for income) 27,735.33 -183,361.31
Financial expense (income marked with "-") 18,083,986.81 21,315,656.48
Investment loss (return marked with "-") -3,841,851.38 -870,263.42
Decrease in deferred tax assets (marked with "-" for increase)
Increase in deferred tax liability (marked with "-" for decrease)
Decrease in inventory (increase marked with "-") -43,326,497.65 -145,468,868.68
93
Wafangdian Bearing Co., LTD 2022 Midyear Report
Reduction of operational receivables (increase marked with "-") -52,432,861.31 -137,873,561.95
Increase in operational items payable (decrease marked with "-") 65,847,221.66 250,303,802.63
other 761,253.49 30,000.00
Net cash flow from operating activities -13,585,174.40 31,402,343.49
2. Significant investment and financing activities that do not involve cash
receipts and payments:
Debt to capital
Convertible corporate bonds maturing within one year
Financing leases fixed assets
3. Net Change in Cash and cash equivalents:
Ending balance of cash 252,092,899.35 160,772,019.45
Less: Opening balance of cash 209,847,896.42 127,620,944.91
Plus: Ending balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 42,245,002.93 33,151,074.54
(2) The net cash of the subsidiary paid in the current period
(3) Net cash received for disposal of subsidiaries in the current period
(4) Composition of cash and cash equivalents
project current period Last period
A cash. 326,133,063.17 209,847,896.42
Among them: cash on hand 2,212.63 8,510.17
A bank deposit that is readily available for payment 326,130,850.54 209,839,386.25
Iii. Ending cash and cash equivalents balance 326,133,063.17 209,847,896.42
80. Statement of Changes in Owners' Equity item notes
81. Assets whose ownership or access is restricted
82. Foreign currency monetary items
(1) Foreign currency monetary items
The balance will be
Ending balance in foreign
project Discount rate converted into RMB at the
currency
end of the period
Monetary fund 398,800,825.30
Where: U.S. Dollar 56,631,997.89 6.7437 381,909,204.17
The euro 2,457,356.25 6.8739 16,891,621.13
Hong Kong dollars
Accounts receivable 31,421,512.82
Where: U.S. Dollar 4,142,081.45 6.7437 27,932,954.67
94
Wafangdian Bearing Co., LTD 2022 Midyear Report
The euro 507,507.84 6.8739 3,488,558.14
Hong Kong dollars
Long-term borrowing
Where: U.S. Dollar
The euro
Hong Kong dollars
(2) Description of overseas business entities, including for important overseas business entities, disclosure of their main
overseas business locations. Functional standard currency and selection basis, functional standard currency changes
should also disclose the reason.
□ Applicable Not applicable
83. The hedging
84. Government subsidies
(1) Basic information on government subsidies
The amount recorded in the
species amount Presentation project
current profit and loss
Deferred income Other
Dalian branch demolition subsidy 48,676,244.95 1,352,117.94
income
Special subsidy fund for intelligent Deferred income Other
8,000,000.00 644,444.40
manufacturing equipment development income
Labor training subsidy 29,560.00 Other income 29,560.00
Steady post subsidies 491,618.77 Other income 491,618.77
Transformation project of bearing base in Deferred income Other
4,723,200.00 236,160.00
high-end equipment manufacturing industry income
Steady post subsidies 790,453.12 Other income 790,453.12
Discount subsidy for heavy axle load Deferred income Other
2,400,000.00 120,000.00
projects income
6296845157 Electronic return 7,845.61 Other income 7,845.61
Race subsidies 1,500.00 Other income 1,500.00
Grant No. 3 [2022] of the Wacai (special Deferred income Other
18,400.00 18,400.00
direct) income
Deferred income Other
Skills master studio construction subsidy 700,000.00 26,459.34
income
Received the 2019 Dalian Municipal Bureau
186,240.00 Other income 186,240.00
of Commerce in small funds 401-847
The Social Security Bureau subsidizes the
500.00 Other income 500.00
one-time training for workers
Receive Dalian Science and Technology
Bureau 2021 mid-term assessment and 521,500.00 Other income 521,500.00
acceptance subsidy funds
Collect Social security and withdraw
1,696.46 Other income 1,696.46
unemployment benefits
Refund of commission fees for withholding
13,571.19 Other income 13,571.19
and paying corporate income tax in 2020
Dalian Jinpu New Area employment and
1,100.00 Other income 1,100.00
social insurance Department award
95
Wafangdian Bearing Co., LTD 2022 Midyear Report
A combined 66,563,430.10 Presentation project 4,443,166.83
(2) Return of government subsidies
□ Applicable Not applicable
85. The other
VIII. Changes in the scope of incorporation
Rights and interests in other subjects
X. Risks associated with financial instruments
Disclosure of fair value
XII. Related Parties and related Transactions
1. The parent company of the company
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
Wafangdian Bearing No. 1 Beigongji
Bearings and all
Group Co., Ltd. Street, Wafangdian
kinds of equipment 519,869,400.00 60.61% 60.61%
（Wafangdian City, Liaoning
manufacturing. sales
Bearing Group ） Province, China.
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. Information about subsidiaries of the company
The e situation of the company's subsidiaries is detailed in the attached note "VIII.1.
(1) Composition of Enterprise Groups".
3. The joint venture and joint venture of the enterprise
4. Other related parties
5. Related transactions
(1) Purchase and sale of commodities. Related transactions for providing and receiving services
Table of goods purchased/services accepted
Whether it
Content of Related Approved trading exceeds Amount of previous
The affiliated party Current amount
Transactions quotas the trading period
limit
Purchase of
goods and 116,944,687.61 476,000,000.00 no 200,218,819.71
Wafangdian Bearing Group equipment
96
Wafangdian Bearing Co., LTD 2022 Midyear Report
Purchase of
Wafangdian Bearing Precision goods and 179,504,286.09 300,000,000.00 no 110,950,488.47
Forging Co., Ltd equipment
Wafangdian bearing group The purchase of
21,011,624.59 50,000,000.00 no 16,802,062.64
precision roller co., LTD goods
Wafangdian bearing Group
The purchase of
High-end Auto Bearing Co., 27,072,625.64 100,000,000.00 no 63,713,344.65
Ltd. goods
Wafangdian Bearing Group The purchase of
98,473,875.79 250,000,000.00 no 66,106,128.36
Precision Retainer Co., Ltd. goods
Dalian Wafangdian Bearing
The purchase of
Group Equipment 6,615,765.27 28,000,000.00 no 8,660,940.09
Manufacturing Co., Ltd. goods
Wafangdian Tongda Bearing The purchase of
0.00 1,988.00
Manufacturing Co., Ltd. goods
Wafangdian Bearing Power
Co., Ltd.
Buy energy 18,784,809.42 55,000,000.00 no 18,358,528.43
Dalian Wazhou Jinzhou The purchase of
7,608,142.47 10,000,000.00 no 5,445,226.09
Machinery Co., Ltd. goods
Dalian Wazhou Fengyuan The purchase of
1,902,967.60 12,000,000.00 no 4,231,302.26
Machinery Co., Ltd. goods
Wafangdian Bearing Group The purchase of
0.00 2,318,842.65
Wind Power BearingCo., Ltd. goods
Wafangdian Bearing Group
Accepting labor
Engineering Technology 9,336,716.83 30,000,000.00 no 8,201,980.00
Research Center services,
Wafangdian Bearing Education Accepting labor
5,000.00 500,000.00 no 62,847.24
and Training Center services,
Dalian Wafangdian Bearing
Accepting labor
Group Equipment 335,687.50 10,000,000.00 no
Manufacturing Co., Ltd. services,
Wafangdian Tongda Bearing Accepting labor
1,492,157.00 6,000,000.00 no
Manufacturing Co., Ltd. services,
Wafangdian Bearing Power Accepting labor
3,476,832.42 36,000,000.00 no
Co., Ltd. services,
Wafangdian Bearing Group Accepting labor
9,492,928.25 37,000,000.00 no
Co., Ltd. services,
Total - 502,058,106.48 1,400,500,000.00 no 505,072,498.59
Table of goods/services offered for sale
Content of Related
Related party Current amount Amount of previous period
Transactions
Wafangdian Bearing Precision Forging Co., Ltd Sales of goods 42,348,727.60 43,265,124.64
Wafangdian Bearing Group (U.S.A.) Co., Ltd. Sales of goods 31,395,819.74 33,296,028.83
Wafangdian bearing group precision roller co., LTD Sales of goods 7,845.00 7,466,886.26
Wafangdian Bearing Group Wind Power BearingCo., Ltd. Sales of goods 36,139,871.29 11,228,246.56
Wafangdian Bearing Group Sales of goods 20,053,147.02 33,537,357.81
Wafangdian bearing Group High-end Auto Bearing Co.,
Ltd.
Sales of goods 6,340,894.14 2,186,163.12
Germany Leipzig Roller and Ball Bearing Co., Ltd. Sales of goods 4,186,674.04 4,032,732.79
Wazhou Group Precision Drive Bearing Co., Ltd. Sales of goods 759,469.56 131,524.04
Wafangdian Bearing Special Precision Bearing Co., Ltd. Sales of goods 206,472.06 76,033.09
Dalian Wafangdian Bearing Group Equipment
Manufacturing Co., Ltd.
Sales of goods 227,337.28 72,236.78
Wafangdian Bearing Group Precision Retainer Co., Ltd. Sales of goods 105,072.79 18,588.59
Wafangdian Bearing Group Engineering Technology
Research Center
Sales of goods 247,333.28
Provide labor
0.00 1,424,404.62
Wafangdian bearing group precision roller co., LTD services
Provide labor
7,368,340.78 20,252,715.83
Wazhou Group Precision Drive Bearing Co., Ltd. services
97
Wafangdian Bearing Co., LTD 2022 Midyear Report
Provide labor
172,956.81 490,622.69
Wafangdian Bearing Special Precision Bearing Co., Ltd.services
Provide labor
437,635.45 149,419.98
Dalian Wazhou Jinzhou Machinery Co., Ltd. services
Provide labor
879,977.17 484,596.79
Wafangdian Bearing Precision Forging Co., Ltd services
Dalian Wafangdian Bearing Group Equipment Provide labor
90,313.52 147,589.92
Manufacturing Co., Ltd. services
Provide labor
2,471,701.11 3,057,843.11
Wafangdian Tongda Bearing Manufacturing Co., Ltd. services
Provide labor
82,801.25 73,816.39
Wafangdian Bearing Group Precision Retainer Co., Ltd. services
Provide labor
8,469,756.25 9,302,159.07
Wafangdian Bearing Group services
Provide labor
1,554,911.62
Wafangdian Bearing Group Wind Power BearingCo., Ltd. services
Sales of
53,678,899.11
Wafangdian Bearing Group equipment
Sales of
25,663.72
Wafangdian bearing group precision roller co., LTD equipment
Sales of
181,415.92
Wafangdian Bearing Group Precision Retainer Co., Ltd. equipment
Total - 163,547,057.80 224,580,069.70
(2) Associated with entrusted management/contracting and entrusted management/outsourcing
(3) Associated lease
As the lessor, the Company:
Types of leased Lease income recognized in the Lease income recognized in the
Name of the lessee
assets current period previous period
Wafangdian Bearing Precision Forging Co.,
Ltd
land 664,365.00 275,414.51
Wafangdian Bearing Group Precision
Retainer Co., Ltd.
land 132,727.50 131,574.00
Wafangdian Bearing Group Co., Ltd. land 240,330.00 151,127.63
Wafangdian bearing Group High-end Auto
Bearing Co., Ltd.
housing 509,922.60 1,668,492.60
Wafangdian Bearing Precision Forging Co.,
Ltd
housing 586,525.00 677,018.72
Dalian Wazhou Jinzhou Machinery Co., Ltd. housing 0.00 401,580.00
Wafangdian Bearing Group Precision
Retainer Co., Ltd.
housing 459,978.30 382,011.48
Wafangdian Bearing Group Co., Ltd. housing 584,028.00 548,064.60
Dalian Wazhou Fengyuan Machinery Co.,
Ltd.
housing 53,730.00 53,730.00
Wafangdian bearing Group High-end Auto
Bearing Co., Ltd.
equipment 4,995,470.46 3,942,532.14
Wafangdian bearing group precision roller
co., LTD
equipment 187,846.60 219,857.98
Wafangdian Bearing Group Precision
Retainer Co., Ltd.
equipment 280,659.12 419,215.42
Wafangdian Bearing Group Co., Ltd. equipment 4,217,156.68 3,662,482.91
Wafangdian Bearing Precision Forging Co.,
Ltd
equipment 555,670.74
The Company as the lessee:
Types Simplified treatment Variable lease
of of rental costs for payments not Interest expenses
Name of Increased use of
lease short term leases included in the The rent paid incurred on lease
lessor assets
d and low value asset measurement of liabilities
asset leases (if lease liabilities (if
98
Wafangdian Bearing Co., LTD 2022 Midyear Report
s applicable)） applicable)
Amount The Amount The Amount The Amount The Amount The
incurred amount incurred amount incurred amount incurred amount incurred amount
in of the in of the in of the in of the in of the
current previous current previous current previous current previous current previous
period period period period period period period period period period
Wafangdia
housi 7,154,19 5,863,09
n Bearing
ng 6.33 1.63
Group
Wafangdia
9,946,59 8,982,34
n Bearing land
5.78 8.34
Group
Wafangdia
equip 9,946,59 8,982,34
n Bearing
ment 5.78 8.34
Group
(4) Related guarantee
(5) Related party lending
(6) Assets transfer and debt restructuring of related parties
(7) Compensation of key management personnel
item Current amount Last period amount
Pay in total 486,382.80 466,564.80
(8) Other related party transactions
6. Accounts receivable and payable by related Parties
(1) Receivable items
Ending balance Opening balance
The project
Provision
name Related party Provision
Book balance for bad Book balance
for bad debt
debt
Accounts Wafangdian Bearing Group Wind
12,619,350.45 6,879,860.08
receivable Power BearingCo., Ltd.
Accounts Wafangdian bearing group precision
84,763,235.04 88,974,982.32
receivable roller co., LTD
Accounts Wafangdian Bearing Group (U.S.A.)
17,784,910.71 34,065,432.06
receivable Co., Ltd.
Accounts
13,682,293.02
receivable Wafangdian Bearing Group
Accounts Wazhou Group Precision Drive
36,402,055.46 28,599,541.22
receivable Bearing Co., Ltd.
Accounts Wafangdian Bearing Special
1,660,069.24
receivable Precision Bearing Co., Ltd.
Accounts Germany Leipzig Roller and Ball
2,268,970.73 603,628.47
receivable Bearing Co., Ltd.
Accounts Wafangdian Tongda Bearing
3,352,913.98
receivable Manufacturing Co., Ltd.
Advance Liaoning northern metal supply chain
5,000,000.00 5,000,000.00
payment co., LTD
Advance
1,100,741.00 215,284.74
payment Wafangdian Bearing Power Co., Ltd.
Advance Dalian Wafangdian Bearing Group
2,153,988.00 450,422.00
payment Equipment Manufacturing Co., Ltd.
Other
49,779.39 49,779.39
Accounts Wafangdian Bearing Group
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Wafangdian Bearing Co., LTD 2022 Midyear Report
Receivable
(2) Items payable
The project
Related party Closing book balance Starting book balance
name
Accounts
2,768,840.93 3,252,037.66
payable Wafangdian Bearing Precision Forging Co., Ltd
Accounts
175,160,692.12 141,326,357.49
payable Wafangdian Bearing Group
Accounts Dalian Wafangdian Bearing Group Equipment
6,086,420.56 3,522,241.14
payable Manufacturing Co., Ltd.
Accounts
1,958,543.96
payable Wafangdian Tongda Bearing Manufacturing Co., Ltd.
Accounts Wafangdian bearing group equipment technology
29,700.00 29,700.00
payable engineering co., LTD
Accounts
5,877,798.45 8,441,546.14
payable Dalian Wazhou Jinzhou Machinery Co., Ltd.
Accounts
7,341,026.15 4,198,518.84
payable Dalian Wazhou Fengyuan Machinery Co., Ltd.
Accounts Wafangdian Bearing Group Engineering Technology
11,183,153.71 9,289,575.00
payable Research Center
Accounts Wafangdian Bearing Group Precision Retainer Co.,
34,181,261.72 15,679,326.25
payable Ltd.
Accounts
3,029,086.23 2,447,640.94
payable Wafangdian Bearing Power Co., Ltd.
Accounts Wafangdian bearing Group High-end Auto Bearing
16,771,589.41 14,776,614.83
payable Co., Ltd.
Accounts
61,400.00 56,400.00
payable Wafangdian Bearing Education and Training Center
Accounts
103,724.00 103,724.00
payable Wafangdian Bearing Hospital
Accounts Wafangdian Bearing Special Precision Bearing Co.,
581,447.65
payable Ltd.
Other
38,306,424.14 38,265,278.19
payable Wafangdian Bearing Group
Other Wafangdian bearing group equipment technology
952,000.00 952,000.00
payable engineering co., LTD
Other
635,506.56 1,714,697.56
payable Wafangdian Bearing Power Co., Ltd.
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
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Wafangdian Bearing Co., LTD 2022 Midyear Report
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
ending balance Beginning balance
category Provision for bad The Provision for bad The
Book balance Book balance
debt book debt book
Provisi
accoun Provisio
ratio account on account ratio account
t value n ratio value
ratio
Accounts
receivabl
e with
bad debt 76,434, 76,434,782 100.00 77,309,69 77,309,69
6.76% 0.00 6.84% 100.00% 0.00
provision 782.28 .28 % 2.95 2.95
drawn on
a single
item
Among
them:
Accounts
receivabl
e with a
1,054,3
combinati 63,991,063 990,331,8 1,053,553 64,421,65 989,131,3
22,899. 93.24% 93.16%
on of bad .34 36.04 ,006.73 7.30 49.43
38
debt
provision
s
Among
them:
Wherein:
aging 941,587 63,991,063 877,596,1 888,678,7 64,421,65 824,257,0
83.27% 6.79% 78.58% 7.25%
combinati ,226.64 .34 63.30 07.98 7.30 50.68
on
Where:
combinati
112,735 112,735,6 164,874,2 164,874,2
on of 9.97% 0.00% 14.58%
,672.74 72.74 98.75 98.75
related
parties
1,130,7
140,425,84 990,331,8 1,130,862 141,731,3 989,131,3
Total 57,681. 100.00% 100.00%
5.62 36.04 ,699.68 50.25 49.43
66
If the allowance for doubtful accounts receivable is made in accordance with the general model of expected credit loss, please refer to the
disclosure method of other receivables to disclose the relevant information of the allowance for doubtful accounts:
□ Applicable Not applicable
Disclosure by age
aging Closing balance
Within 1 year (including 1 year) 719,784,883.11
1 to 2 years 345,265,014.68
2 to 3 years 15,182,658.94
101
Wafangdian Bearing Co., LTD 2022 Midyear Report
More than 3 years 50,525,124.93
3 to 4 years 17,484,323.12
4 to 5 years 17,185,352.26
More than 5 years 15,855,449.55
Total 1,130,757,681.66
(2) Current period. Bad debt provision recovered or rolled back
Provision for bad debts in current period:
Current change amount
category
Beginning balance To withdraw or Cancel after The ending balance
provision other
turn back verification
Provision for
141,731,350.25 1,305,504.63 140,425,845.60
bad debt
Total 141,731,350.25 1,305,504.63 140,425,845.60
(3) Accounts receivable actually written off in the current period
Project write-off amount
Provision for bad debt 1,305,504.63
One of the important accounts receivable verification situation:
Whether the
Verification and
Nature of Amount of payment was
cancellation
Name of the entity accounts cancel after Close the reason generated by a
procedures
receivable verification related party
performed
transaction
Beijing Jingcheng Star The internal
Payment for Expected to be
Technology Development Co. 55,100.00 examination and no
goods unrecoverable
LTD approval
Tangshan Huahang The internal
Payment for Expected to be
Mechanical and Electrical 247,147.40 examination and no
goods unrecoverable
Pioneer Equipment Co. LTD approval
Jinzhai Pengfei Steel Structure The internal
Payment for Expected to be
Steel Frame Engineering Co. 246,400.00 examination and no
goods unrecoverable
LTD approval
The internal
Payment for Expected to be
Wuxi Yutong Bearing Co. LTD 149,427.42 examination and no
goods unrecoverable
approval
Shandong Fengyuan Tongda The internal
Payment for Expected to be
Electric Power Co., LTD. 96,030.20 examination and no
goods unrecoverable
Zhongke Ecological Branch approval
The internal
Jiangsu Yali explosion-proof Payment for Expected to be
77,349.65 examination and no
Motor Co. LTD goods unrecoverable
approval
The internal
Payment for Expected to be
Shanxi Jiaohua Co., LTD 3,456.00 examination and no
goods unrecoverable
approval
Total 874,910.67
(4) The top five accounts receivable according to the ending balance collected by the debtor
Ending balance of accounts The proportion of total ending balance of Ending balance of allowance for
Name
receivable accounts receivable bad debts
one 151,464,748.42 13.39%
two 43,713,140.91 3.87%
three 21,243,764.61 1.88% 2,185,657.05
four 16,489,786.28 1.46%
102
Wafangdian Bearing Co., LTD 2022 Midyear Report
five 16,144,591.26 1.43%
total
total 249,056,031.48 22.03%
2. Other receivables
item Closing balance Opening balance
Dividends receivable 11,843,105.36 11,843,105.36
Other accounts receivable 300,706,235.10 204,962,743.49
total 312,549,340.46 216,805,848.85
(1) Interest receivable
(2) Dividends receivable
1) Dividend receivable classification
Project (or investee)
Project (or investee) Ending Balance Beginning balance Ending Balance Project (or investee) Ending Balance
of the period Beginning balance Beginning balance of the period
of the period
Wazhou precision spherical roller bearings (wafangdian) co., LTD 11,843,105.36 11,843,105.36
total 11,843,105.36 11,843,105.36
2) Important dividends receivable with an aging of more than 1 year
3）Bad debt provision and withdrawal
Applicable Inapplicable
(3) Other accounts receivable
1) Classification of other receivables by nature
Nature of money Closing book balance Starting book balance
Related party loan 287,364,618.22 196,461,461.33
margin 3,014,381.47 4,367,792.68
The deposit 47,000.00 143,560.00
Personal allowance 1,019,855.50 89,371.16
electricity 5,127,768.17 3,860,968.78
Other payments 12,063,124.03 7,999,889.23
total 308,636,747.39 212,923,043.18
2）Provision for bad debts
The first stage The second stage The third stage
Provision for bad debt Expected credit loss for Expected credit loss for
Expected credit losses Total
the entire duration (no the entire duration (credit
over the next 12 months
credit impairment occurs) impairment incurred)
Balance as of January 1,
7,960,299.69 7,960,299.69
2022
January 1, 2022 balance
in current period
Balance on June 30,
29,787.40 29,787.40
2022
Balance as of January 1,
7,930,512.29 7,930,512.29
2022
Loss provision Changes in current period significant changes in book balance
Applicable Inapplicable
Disclosure by age
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Wafangdian Bearing Co., LTD 2022 Midyear Report
aging Closing balance
Within 1 year (including 1 year) 300,547,991.78
1 to 2 years 3,268,637.50
2 to 3 years 985,319.19
More than 3 years 3,834,798.92
3 to 4 years 25,958.36
4 to 5 years 252,676.49
More than 5 years 3,556,164.07
Total 308,636,747.39
3) Bad debt provisions drawn, collected or transferred back in the current period
Provision for bad debts in the current period:
Current change amount
category
Opening balance withdraw or Cancel after Closing balance
provision other
reverse verification
bad debt
7,960,299.69 29,787.40 7,930,512.29
provision
Total 7,960,299.69 29,787.40 7,930,512.29
4） Other receivables actually written off in the current period
5） The top significant other receivable categorized by debtors
% of the total Closing Balance
Name Category Closing Balance Aging
OR of Provision
Dalian Wazhou Precision Motor Loans from
131,621,274.13 1 年以内 41.07%
Automobile Bearing Co., Ltd. related parties
Wazhou Liaoyang Bearing Construction Loans from
107,443,993.73 1 年以内 33.53%
Co.,Ltd related parties
Wazhou Precision of Spherical Roller Loans from
48,299,350.36 1 年以内 15.07%
Bearings(Wafangdian)Co., Ltd related parties
State Grid Liaoning Electric Power Co.,
Prepaid electricity 5,127,768.17 1 年以内 1.60%
LTD. Dalian Power Supply Company
Prepaid material
Bengang Steel Plates Co.,Ltd 1,280,000.00 5 年以上 0.40% 1,280,000.00
payment
合计 293,772,386.39 91.67% 1,280,000.00
3. Category of long-term equity investments
Closing Balance Opening Balance
Item
Closing Balance Provision Book Value Opening Balance Provision Book Value
Investment in
224,923,897.67 224,923,897.67 221,583,897.67 221,583,897.67
subsidiaries
合计 224,923,897.67 224,923,897.67 221,583,897.67 221,583,897.67
（1） Investments into subsidiaries
Opening Change Closing Closing
Subsidiaries names
Balance Increase Decrease Provision in Others Balance Balance of
104
Wafangdian Bearing Co., LTD 2022 Midyear Report
current period provision
Wazhou Liaoyang
27,337,259
Bearing Construction 3,340,000.00 30,677,259.95
.95
Co.,Ltd
Dalian Wazhou
Precision Motor Car 45,478,956
45,478,956.37
Bearing Company .37
Limited
Wazhou Precision of
Spherical Roller 148,767,68 148,767,681.3
Bearings(Wafangdian)C 1.35 5
o., Ltd
221,583,89 224,923,897.6
Total 3,340,000.00
7.67 7
4.Operating revenue and cost
current year prior year
project
Revenue Cost Revenue Cost
Item 980,699,092.66 855,080,947.83 1,109,372,674.86 932,186,793.40
Revenue from main
126,336,105.32 75,617,985.01 99,349,644.92 86,519,816.50
operation
Revenue from other
1,107,035,197.98 930,698,932.84 1,208,722,319.78 1,018,706,609.90
operation
5.Investment income
Items current year prior year
Dividend income obtained during the holding period of long-term
18,821.12 18,821.12
equity investment
Gain on debt restructuring 2,294,441.90 376,934.17
Total 2,313,263.02 395,755.29
XVIII. Supplementary Information to the Financial Statements
1. Non-operating profit or loss
□ Applicable Inapplicable
Items Current year Notes
Gain or loss from disposal of non-current assets 1,922,817.50
Government grants recorded into profit or loss during current period(except the
government subsidies which are fixed or quantitatively enjoyed according to the 4,020,036.02
national unified standard and it is closely related to the business)
Profit or loss from debts restructuring 3,823,030.26
In addition to the effective hedging business related to the normal operation of the
company, it holds transactional financial assets. The profit and loss of fair value
variation arising from transaction financial liabilities, and the investment income of -27,735.33
transaction financial liabilities and available-for-sale financial assets from the
disposal of transaction financial assets
105
Wafangdian Bearing Co., LTD 2022 Midyear Report
Non-operating revenue and expense apart from the above items 3,478,203.63
Less: effect on income tax 1,993,629.07
Total 11,222,723.01 --
2.Return on equity and earnings per share
Weighted average Earnings per share (EPS)
Profit of report period return on net Basic Diluted EPS
assets (%) EPS
Net profit attributable to shareholders of parent
-6.35% -0.0930 -0.0930
company
Net profit after deducting non-recurring gains
and losses attributable to shareholders of -8.25% -0.1209 -0.1209
parent company
3.Differences in accounting information under IAS and domestic accounting standard
1) Differences in net profit and net asset under domestic and international accounting standards
□ Applicable Inapplicable
2） Differences in net profit and net asset under domestic and overseas accounting standards
□ Applicable Inapplicable
4.Others
106
