Wafangdian Bearing Company Limited 2023 Midyear Report
Wafangdian Bearing Co., LTD
2023 Midyear Report
2023-24
August 2023
1
Wafangdian Bearing Company Limited 2023 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 Sun Xinyan, 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.
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Wafangdian Bearing Company Limited 2023 Midyear Report
File directory for future reference
(1) The 2023 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.
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Wafangdian Bearing Company Limited 2023 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 1,2023–June 30,2023
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
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Wafangdian Bearing Company Limited 2023 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) 1,252,039,349.60 1,085,817,104.92 15.31%
Net profit attributable to shareholders of the listed
-35,377,661.16 -37,455,779.00 5.55%
company (Yuan)
Net profit attributable to shareholders of the listed
company after deducting non-recurring gains and -44,830,403.75 -48,678,502.01 7.91%
losses (Yuan)
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Wafangdian Bearing Company Limited 2023 Midyear Report
Net cash flow from operating activities (Yuan) -223,238,650.68 -13,585,174.40 -1,543.25%
Basic earnings per share (Yuan/share) -0.0879 -0.0930 5.48%
Diluted earnings per share (Yuan/share) -0.0879 -0.0930 5.48%
Weighted average return on equity -7.78% -6.35% -1.43%
+/-comparing with the previous
current period previous period
period
Total assets (yuan) 3,368,849,796.70 3,324,777,599.86 1.33%
Net assets attributable to shareholders of the listed
438,828,562.62 470,302,993.46 -6.69%
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 portion of the asset impairment provision) 817,370.49
Government subsidies included in the current profits and losses (closely related to the business of the enterprise,
3,473,971.34
except the government subsidies enjoyed in accordance with the national unified standard quota or quantitative)
Debt restructuring gains and losses 4,328,977.57
In addition to the normal business of the company effective hedging related business, tradable financial assets,
derivative financial assets, tradable financial liabilities, changes in the fair value of the derivative financial
-27,735.32
liabilities to generate profits and losses, as well as the disposal of tradable financial assets, derivative financial
assets, tradable financial liabilities, derivative financial liabilities and other creditor's rights investment returns
Non-operating income and expenses other than those mentioned above 543,960.73
Other items of profit or loss that meet the definition of non-recurring profit or loss 2,000,000.00
Less: income tax impact 1,683,802.22
A combined 9,452,742.59
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
Applicable Not applicable
The current period received a dividend of 2 million yuan to Aimuyi Company.
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.
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Wafangdian Bearing Company Limited 2023 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.
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 (+/-）Compared
Same period last
current reporting with the same Cause of change
year
period period last year
Operating income 1,252,039,349.60 1,085,817,104.92 15.31%
Operating cost 1,066,462,907.57 915,897,528.27 16.44%
Cost of sales 71,609,173.67 62,863,485.66 13.91%
Management fees 54,076,395.99 49,468,091.40 9.32%
Finance charges 17,137,347.89 18,083,986.81 -5.23%
Income tax
expense
R&d spending 82,574,853.76 84,475,472.06 -2.25%
Net cash flow -223,238,650.68 -13,585,174.40 Notes payable for the purchase
from operating of goods or services are due to
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Wafangdian Bearing Company Limited 2023 Midyear Report
activities pay larger monetary funds
The monetary funds for the
purchase and construction of
Net cash flow fixed assets were 3.31 million
from investing -1,311,391.74 -733,295.01 yuan, an increase of 910,000
activities yuan year-on-year. The cash
inflow from investment activities
increased by only 330,000 yuan
Net cash flow Other net cash expenditures
from financing 131,776,033.63 55,698,567.60 136.59% related to fundraising increased
activities significantly year over year
Net increase in The net cash flow from
cash and cash -90,359,882.17 42,245,002.93 -313.89% operating activities decreased
equivalents significantly year on year
The composition or source of profit of the company during the reporting period has undergone major changes
□ Applicable Not applicable
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
1,252,039,349.60 100% 1,085,817,104.92 100% 15.31%
Revenue
Industry-classified
exit 115,875,716.37 9.25% 82,629,445.62 7.61% 40.24%
Traffic bearing 179,186,730.00 14.31% 222,735,286.82 20.51% -19.55%
Special bearings 342,251,809.44 27.34% 114,520,039.71 10.55% 198.86%
General bearing 466,565,979.15 37.26% 537,584,763.94 49.51% -13.21%
Industrial operation 36,937,561.61 2.95% 22,221,619.62 2.05% 66.22%
Other business income 111,221,553.03 8.88% 106,125,949.21 9.77% 4.80%
Products-classified
bearing 1,103,880,234.96 88.17% 957,469,536.09 88.18% 15.29%
Industrial operation 36,937,561.61 2.95% 22,221,619.62 2.05% 66.22%
Other business income 111,221,553.03 8.88% 106,125,949.21 9.77% 4.80%
Region-classified
domestic 1,136,163,633.23 90.75% 1,003,187,659.30 92.39% 13.26%
foreign 115,875,716.37 9.25% 82,629,445.62 7.61% 40.24%
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 costs
Operating Gross profit margin
increased or
income increased or
Gross decreased
Operating compared decreased
Operating cost profit compared to the
income with the compared to the
margin same period of
same period same period of the
the previous
last year previous year
year
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Wafangdian Bearing Company Limited 2023 Midyear Report
Industry-classified
exit 115,875,716.37 110,069,348.12 5.01% 40.24% 41.36% -0.76%
domestic 988,004,518.59 846,917,318.02 14.28% 12.94% 14.55% -1.21%
Among
them: traffic 179,186,730.00 142,120,091.00 20.69% -19.55% -29.65% 11.39%
bearings
Special
342,251,809.44 287,423,727.95 16.02% 198.86% 166.51% 10.19%
bearings
General
466,565,979.15 417,373,499.07 10.54% -13.21% -2.82% -9.57%
bearing
The bearing 148,159,114.64 109,476,241.43 26.11% 15.44% 10.95% 2.99%
Points products
bearing 1,103,880,234.96 956,986,666.14 13.31% 15.29% 17.10% -1.34%
The bearing 148,159,114.64 109,476,241.43 26.11% 15.44% 10.95% 2.99%
Points in
domestic 1,136,163,633.23 956,393,559.45 15.82% 13.26% 14.12% -0.64%
foreign 115,875,716.37 110,069,348.12 5.01% 40.24% 41.36% -0.76%
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
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 funds 246,695,745.57 7.32% 330,746,706.88 9.95% -2.63%
Accounts
1,184,537,062.12 35.16% 1,136,295,329.59 34.18% 0.98%
receivable
Contract assets 601,375.84 0.00%
stock 669,733,492.85 19.88% 646,619,143.91 19.45% 0.43%
Investment real
64,996,601.13 1.93% 67,211,806.69 2.02% -0.09%
estate
Long-term equity
0.00%
investment
Fixed assets 423,297,598.59 12.57% 391,769,315.64 11.78% 0.79%
Construction in
56,362,047.31 1.67% 81,891,139.54 2.46% -0.79%
progress
Usufruct assets 0.00% 0.00%
Short-term loan 598,000,000.00 17.75% 699,000,000.00 21.02% -3.27%
Contractual
32,782,316.67 0.97% 30,449,983.07 0.92% 0.05%
liability
Long-term loan 100,000,000.00 2.97% 2.97%
Lease liability 0.00% 0.00%
2. Main overseas assets
Applicable Inapplicable
3. Assets and liabilities measured at fair value
Applicable Inapplicable
In RMB Yuan
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Wafangdian Bearing Company Limited 2023 Midyear Report
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
Financial
assets
1.
Transactional
financial
assets
243,454.50 -27,735.32 -351,314.12 0.00 0.00 0.00 0.00 215,719.18
(excluding
derivative
financial
assets)
4. Investment
11,926,856 11,926,856.
in other equity
.64 64
instruments
Subtotal of
12,170,311 12,142,575.
financial -27,735.32 -351,314.12 0.00 0.00 0.00 0.00
.14 82
assets
other 0.00 0.00 0.00 0.00
Financing of 30,996,930 45,079,06 76,075,997.
0.00 0.00 0.00 0.00 0.00
receivables .63 6.61 24
43,167,241 45,079,06 88,218,573.
Above total -27,735.32 -351,314.12 0.00 0.00 0.00
.77 6.61 06
Financial
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
liability
Other changes
none
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
The es in Curren Report
Accou e in
Varieti securiti Initial Openi the t Curren ing Source
nting fair Ending Accou
es of Stock es invest ng cumul purcha t sale period s of
measu value book nting
securiti code referre ment book ative se amoun profit fundin
rement for the value subject
es d to cost value fair amoun t and g
model current
as" value t loss
period
of
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Wafangdian Bearing Company Limited 2023 Midyear Report
equity
Chong Transa
Domes Fair
qing - - - ctional debt-
tic and 60100 567,03 value 243,45 215,71
iron 27,735 351,31 0.00 0.00 27,735 financi for-
foreign 5 3.30 measu 4.50 9.18
and .32 4.12 .32 al equity
stocks rement
steel assets
- - -
567,03 243,45 215,71
Total -- 27,735 351,31 0.00 0.00 27,735 -- --
3.30 4.50 9.18
.32 4.12 .32
(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
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 of
liaoyang - - -
bearings and 273,950,078 92,643,873.
bearing subsidiary 193500000 67,154,565. 1,053,676.4 1,063,976.4
machinery .20 25
manufacturin 07 7 7
manufacturin
g co., LTD
g
Dalian Production
wazhou and sales of
- - -
precision bearings and 10,000,000. 188,109,815 94,270,719.
subsidiary 60,970,017. 13,864,318. 13,883,149.
motor car machinery 00 .45 28
35 43 63
bearing co., manufacturin
LTD g
Wazhou
Production
precision
and sales of
spherical - -
bearings and 194,000,000 321,307,121 139,627,331 128,187,874
roller subsidiary 16,543,133. 16,551,778.
machinery .00 .10 .14 .18
bearings 90 07
manufacturin
(wafangdian)
g
co., LTD
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable □ Not applicable
Description of main holding companies
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Wafangdian Bearing Company Limited 2023 Midyear Report
IX. Structured subjects controlled by the company
Applicable Inapplicable
X. Risks faced by the Company and countermeasures
The current national economic development is facing unprecedented challenges. The company is faced with increasing uncertainties in market
demand and market competitors. The market influence and product pricing of competitors are full of uncertainties, which brings great risks to the
company's market and production and operation.The company's labor costs continue to rise;Prices of raw and auxiliary materials remain
high;Corporate profit margins remain tough.The company must fully assess the difficulties, risks and uncertainties, and drive the high-quality growth
of the business by developing middle and high-end products and achieving high-end breakthroughs.The implementation of differentiated
management, not only focus on products, technology, market, but also focus on the core value of customers, improve the core competitiveness of
enterprises;Adhere to quality first, enhance brand influence;Accelerate the pace of reform, stimulate new vitality of enterprises;Improve the cost
performance of bearing products, make use of the different market positioning of international big brand companies, fully seize the larger market
growth space, see that the tile shaft market has space, enterprises have resources, development policies, employees have the advantages of
dream, to achieve efficient and sustainable development.
The company will focus on the "grab the order to protect the market" to open up the market battle, go all out to develop the market, to achieve the
sales target.Adhere to the "cash is king", strengthen credit control, to organize the return of funds, improve the capital turnover rate, reduce the
occupation of funds.Focusing on "expanding capacity to achieve stable growth of production, improving quality, reducing cost and increasing
efficiency", we will start the tough battle of production capacity, improve contract performance and order execution, accelerate upstream and
downstream supply chain coordination and process optimization, and thereby digest all kinds of adverse factors within the company.
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 Disclosure
Meeting session Type Meeting Date Disclosure Date
ratio index
2022 Annual shareholders’ Annual shareholders’
80.30% 2022.05.31 2022.06.01
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
Liu Yuping Independent director elected May 31, 2023 elected
Zhang Yinghua supervisor elected May 31, 2023 elected
Leave office at the end of Leave office at the end of
Liang Shuang Independent director May 31, 2023
a term a term
Wang Lin supervisor Leave one's post April 10th, 2023 Leave one's post
III.Profit distribution and conversion of capital reserve into capital stock during the reporting period
Applicable Inapplicable
The company plans not to distribute cash dividend, not to send bonus shares, not to increase the accumulation fund capital.
IV. Implementation of the company's equity incentive plan, employee stock ownership plan or other employee
incentive measures
Applicable Inapplicable
The company has no equity incentive plan, employee stock ownership plan or other employee incentive measures and their implementation during
the reporting period.
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Wafangdian Bearing Company Limited 2023 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
Environmental protection related policies and industry standards
Comprehensive Emission Standard for Air Pollution (GB16297-1996)
Liaoning Province Sewage Comprehensive Discharge Standard (DB21-1627-2008)
Comprehensive Sewage Discharge Standard (GB8978-1996)
Non-organized Emission Control Standard for Volatile Organic Compounds (GB37822-2019)
Environmental protection administrative licensing situation
The emission permit is issued on June 16, 2020, and is valid from June 16, 2020 to June 15, 2023
(The new version of the pollutant discharge permit has been completed on schedule and issued by Jinpu Ecological Environment Bureau after collective printing.)
Name of Name of
Types of main major
company Number Discharge Implementation of
pollutants and pollutants Discharge Emission Approved total Excessive emission
of outlet pollutant discharge Total emission
or characteristic and mode concentration/intensity emissions condition
outfalls distribution standards
pollutants characteristic
subsidiary pollutants
The
Total non-methane
assembly
hydrocarbon
Dalian workshop
NOx, other 120mg/Nm, oil fume
Wazhou has 4
characteristic Clean the Total non-methane 2.0mg/Nm, nitrogen
precision atmospheric
pollutants exhaust gas Organized, hydrocarbon oxide 240mg/Nm,
motor 5 discharge 74.46ton none none
(non-methane and oil unorganized 19.7mg/m oil fume hydrogen chloride
automobile ports, and
total smoke 0.6mg/m 100mg/Nm, total
bearing the canteen
hydrocarbons, non-methane
Co., LTD has 1
hydrocarbon
discharge
4mg/Nm
port
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Wafangdian Bearing Co., LTD 2023 Midyear Report
Treatment of pollutants
After centralized collection, the collection system is processed by 4 sets of oil mist essence devices, and the oil pollution purification device
adopts centrifugal and filtration separation technology.
Emergency plan for environmental emergencies
The emergency plan for environmental emergencies shall be filed in the Ecological Environment Bureau of Jinpu New District (Jinzhou) of Dalian
City.
File No. 210213S2020003-L
Investment in environmental governance and protection and payment of environmental protection tax
No sewage charges are required for quarterly declarations
Environmental self-monitoring programme
The subsidiary has developed an environmental self-monitoring program, and the self-monitoring program and monitoring data are uploaded to
the "self-monitoring information release platform of key pollutant discharge units in Liaoning Province, which is monitored in real time by the local
environmental protection department."
Administrative punishment for environmental problems during the reporting period
None
Measures taken to reduce their carbon emissions during the reporting period and their effects
Applicable Not applicable
(1) Adjust and optimize the energy structure closely around the dual-carbon strategy.
In the first half of the year, in the power market to seek high-quality electricity sales enterprises to cooperate, while through the power market to
obtain wind power 10%, nuclear power 20%, clean energy utilization rate reached 30%, an increase of 25%, carbon emission level compared
with the same period reduced by 10.25%. Breaking new records for clean energy use while further reducing fossil fuels. Laying a solid
foundation for a carbon neutral strategy.
(2) Continue to promote photovoltaic power generation projects to achieve clean energy access diversification.
At the beginning of the year, we completed the energy management contract for the rooftop distributed photovoltaic power generation project of
the North plant signed with the State Power Investment Group. In the first half of the year, we completed the design of the plant reinforcement
work plan, and organized relevant units and departments to discuss the plan. In addition, the feasibility study of the rooftop photovoltaic power
generation project outside the North district was carried out with Guoheng Company. The smooth implementation of photovoltaic projects
provides a number of effective ways for the company to obtain clean energy and achieve diversified access to clean energy.
(3) Strengthen the cooperation of "green electricity and green certificate" institutions to provide a strong guarantee for green electricity
qualification.
At the beginning of the year, China Power Investment Group, Huaneng Group and Guodian Group respectively carried out the supply
cooperation intention on green electricity green certificate. Several power supply units can provide green electricity and green certificate services
when needed in the future, providing a strong guarantee for the future cooperation with suppliers and customers to build a low-carbon and clean
industrial chain.
(4) Strengthen the operation of the energy management system to ensure the external audit and certification.
In the first half of the year, the company communicated with a number of units with energy management system construction qualifications, and
put forward a number of constructive suggestions for the company to establish an energy management system. At the same time, the company
conducted demand research with import and export companies, marketing departments and other departments, further clarified the necessity of
establishing an international recognition of energy management system, and provided a basis for the next step of system certification bidding.
Reasons for not disclosing other environmental information
14
Wafangdian Bearing Co., LTD 2023 Midyear Report
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.
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
15
Wafangdian Bearing Co., LTD 2023 Midyear Report
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
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
2. Related party transactions arising from the acquisition or sale of assets or shares
Applicable Inapplicable
During the reporting period of the company, no related transactions of asset or equity acquisition or sale occurred.
3. Related party transactions of joint foreign investment
Applicable Inapplicable
During the reporting period, the company has no related party transaction of joint foreign investment.
4. Associated creditor's rights and debt transactions
Applicable Inapplicable
Whether there is non-operating associated creditor's rights and debts
□ Yes No
The company has no non-operating associated creditor's rights or debts during the reporting period.
5. Dealings with related financial companies
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
For the routine related party transactions, please refer to "Wafangdian Bearing Co., LTD. 's Announcement on the Expected Daily Related Party
Transactions in 2023" disclosed by the Company on Juchao Information Network on April 28, 2023 and Section 10, Section 12, "Related Parties
and Related Transactions" 5 "Related Party Transactions" of this report.
XII. Major contracts and their performance
16
Wafangdian Bearing Co., LTD 2023 Midyear Report
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.
XIV.Major matters of the company's subsidiaries
□ Applicable Not applicable
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Wafangdian Bearing Co., LTD 2023 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
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Wafangdian Bearing Co., LTD 2023 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
5,281 rights restored at the 0
at the end of reporting period
reporting End (if any)
(see Note 8)
Shares held by common shareholders holding more than 5% or the top 10 common shareholders
Number 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
60.61% 244,000,000 244,000,000
Group Co., Ltd. legal person
AKTIEBOLAGET Foreign legal 79,300,00
19.70% 79,300,000
SKF person 0
China Merchants
State-owned
Securities Hong 2.23% 8,962,695 8,962,695
legal person
Kong Limited
Domestic
Huang Junyue 1.81% 7,302,709 7,302,709
natural person
Domestic
Hu Xiaofeng 0.47% 1,879,277 1,879,277
natural person
BOCI SECURITIES Foreign legal
0.33% 1,310,000 1,310,000
LIMITED person
GUOTAI JUNAN
Foreign legal
SECURITIES(HON 0.26% 1,037,111 1,037,111
person
GKONG) LIMITED
Domestic
Meng Qingliang 0.24% 966,048 966,048
natural person
Domestic
Jin Yunhua 0.18% 727,900 727,900
natural person
MAN,KWAI WING Foreign natural
0.18% 713,101 713,101
文贵荣 person
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
trustee/trustee voting rights, waiver of There is no
voting rights of the explanation
19
Wafangdian Bearing Co., LTD 2023 Midyear Report
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
8,962,695 B 8,962,695
Limited
Huang Junyue 7,302,709 B 7,302,709
Hu Xiaofeng 1,879,277 B 1,879,277
BOCI SECURITIES LIMITED 1,310,000 B 1,310,000
GUOTAI JUNAN
1,037,111 B 1,037,111
SECURITIES(HONGKONG) LIMITED
Meng Qingliang 966,048 B 966,048
Jin Yunhua 727,900 B 727,900
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.
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Wafangdian Bearing Co., LTD 2023 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
21
Wafangdian Bearing Co., LTD 2023 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 2023.6.30 2023.1.1
Current Assets:
Monetary fund 246,695,745.57 330,746,706.88
Provision for settlement
Lending money,
Trading financial assets 215,719.18 243,454.50
Derivative financial assets
Notes receivable 483,020,714.60 469,784,593.61
Accounts receivable 1,184,537,062.12 1,136,295,329.59
Financing of receivables 76,075,997.24 30,996,930.63
prepayments 40,861,834.86 52,901,066.01
Premiums receivable
Reinsurance accounts receivable
Reserves for reinsurance contracts receivable
Other Accounts Receivable 13,550,871.27 10,555,282.33
Among them: interest receivable
Dividends receivable
Buy financial assets for resale
inventory 669,733,492.85 646,619,143.91
Contract assets 601,375.84
Holding assets for sale
Non-current assets due within one year
Other current assets 20,958,305.30 15,681,599.83
Total current assets 2,735,649,742.99 2,694,425,483.13
Non-current assets:
Make loans and advances
Creditor's rights investment
Other creditor's rights investment
22
Wafangdian Bearing Co., LTD 2023 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 64,996,601.13 67,211,806.69
Fixed assets 423,297,598.59 391,769,315.64
Projects under construction 56,362,047.31 81,891,139.54
Productive biological asset
Oil and gas assets
Assets for use
Intangible assets 75,268,366.43 77,438,618.71
The development of spending
goodwill
Long-term deferred expenses 1,348,583.61 114,379.51
Deferred tax assets
Other non-current assets
Total non-current assets 633,200,053.71 630,352,116.73
Total assets 3,368,849,796.70 3,324,777,599.86
Current liabilities:
Short-term borrowing 598,000,000.00 699,000,000.00
Borrow from the central bank
Funds borrowed from
Trading financial liabilities
Derivative financial liability
Notes payable 473,700,714.10 462,446,562.00
Accounts payable 1,389,154,471.02 1,300,975,034.72
Advance payment
Contract liability 32,782,316.67 30,449,983.07
Sell to repurchase financial assets
Absorb deposits and interbank deposits
Agent buying and selling securities
Acting underwriting securities
Staff remuneration payable 17,419,046.73 46,797,303.83
Payable taxes 20,846,582.30 26,467,193.95
Other payables 194,520,164.51 180,459,153.26
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 4,255,853.73 4,294,078.63
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Wafangdian Bearing Co., LTD 2023 Midyear Report
Total current liabilities 2,730,679,149.06 2,750,889,309.46
Non-current Liabilities:
Insurance contract reserve
Long-term borrowing 100,000,000.00
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 52,195,219.26 54,288,933.94
Deferred revenue 46,174,981.90 48,324,479.14
Deferred tax liability 626,909.02 626,909.02
Other non-current liabilities
Total non-current liabilities 199,342,085.02 103,585,296.94
Total liabilities 2,930,021,234.08 2,854,474,606.40
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 5,836,440.18 1,933,209.86
Surplus reserves 136,770,391.01 136,770,391.01
General risk provision
Undistributed profit -592,069,319.04 -556,691,657.88
Total owner's equity attributable to parent company 438,828,562.62 470,302,993.46
Minority shareholders' equity
Total owners' equity 438,828,562.62 470,302,993.46
Total liabilities and equity 3,368,849,796.70 3,324,777,599.86
Chairman: Liu Jun General Accountant : Sun Najuan Accounting charger: Sun Xinyan
2. Balance sheet of parent company
In RMB Yuan
Item 2023.6.30 2023.1.1
Current Assets:
Monetary fund 234,099,015.42 318,183,659.51
Trading financial assets 215,719.18 243,454.50
Derivative financial assets
Notes receivable 370,299,330.21 364,368,224.60
Accounts receivable 1,155,873,920.00 1,091,791,757.46
24
Wafangdian Bearing Co., LTD 2023 Midyear Report
Financing of receivables 75,425,997.24 29,782,015.63
prepayments 39,521,047.48 50,382,150.52
Other Accounts Receivable 301,418,628.46 326,487,410.20
Among them: interest receivable
Dividends receivable 11,843,105.36 11,843,105.36
inventory 418,360,483.57 372,399,880.38
Contract assets 601,375.84
Holding assets for sale
Non-current assets due within one year
Other current assets 20,958,305.30 15,681,599.83
Total current assets 2,616,172,446.86 2,569,921,528.47
Non-current assets:
Creditor's rights investment
Other creditor's rights investment
Long term receivables
Long-term equity investment 225,693,897.67 225,693,897.67
Investment in other equity instruments 11,926,856.64 11,926,856.64
Other non-current financial assets
Investment real estate 59,356,728.08 61,104,869.06
Fixed assets 271,563,993.17 246,219,058.48
Projects under construction 35,997,585.44 50,350,325.78
Productive biological asset
Oil and gas assets
Assets for use
Intangible assets 60,505,793.84 62,341,050.02
The development of spending
goodwill
Long-term deferred expenses 1,348,583.61 114,379.51
Deferred tax assets
Other non-current assets
Total non-current assets 666,393,438.45 657,750,437.16
Total assets 3,282,565,885.31 3,227,671,965.63
Current liabilities:
Short-term borrowing 598,000,000.00 699,000,000.00
Trading financial liabilities
Derivative financial liability
Notes payable 473,700,714.10 462,446,562.00
Accounts payable 1,146,600,846.34 1,086,746,790.62
Advance payment
Contract liability 32,686,751.82 30,867,278.74
Staff remuneration payable 12,311,427.91 39,688,497.98
Payable taxes 17,891,378.97 17,639,022.52
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Wafangdian Bearing Co., LTD 2023 Midyear Report
Other payables 177,610,525.96 162,798,263.19
Among them: interest payable
Dividends payable
Holding liabilities for sale
Non-current liabilities due within one year
Other current liabilities 4,255,853.73 3,432,952.76
Total current liabilities 2,463,057,498.83 2,502,619,367.81
Non-current Liabilities:
Long-term borrowing 100,000,000.00
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 52,166,021.59 54,260,539.91
Deferred revenue 17,714,609.70 19,864,106.94
Deferred tax liability
Other non-current liabilities
Total non-current liabilities 170,125,606.13 74,369,621.69
Total liabilities 2,633,183,104.96 2,576,988,989.50
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 3,085,981.39 441,390.04
Surplus reserves 136,770,391.01 136,770,391.01
Undistributed profit -378,752,035.31 -374,807,248.18
Total owners' equity 649,382,780.35 650,682,976.13
Total liabilities and equity 3,282,565,885.31 3,227,671,965.63
3. Consolidated income statement
In RMB Yuan
project Half year 2023 Half of 2022
I. Total operating income 1,252,039,349.60 1,085,817,104.92
Among them: operating income 1,252,039,349.60 1,085,817,104.92
Interest income
The premium has been made
Fee and commission income
26
Wafangdian Bearing Co., LTD 2023 Midyear Report
2. Total operating cost 1,298,813,216.40 1,137,250,489.49
Among them: operating cost 1,066,462,907.57 915,897,528.27
The interest payments
Fees and commission expenses
Surrender gold
Net payout for claims
Draw the net insurance liability reserve
Policy bonus payout
Reinsurance expenses
Taxes and surcharges 6,952,537.52 6,461,925.29
Cost of sales 71,609,173.67 62,863,485.66
Management fees 54,076,395.99 49,468,091.40
Research and development costs 82,574,853.76 84,475,472.06
Finance charges 17,137,347.89 18,083,986.81
Among them: interest expense 14,529,197.00 16,136,493.70
Interest income 819,334.29 621,277.50
Plus: other benefits 3,473,971.34 4,020,036.02
Investment income (loss marked with "-") 6,328,977.57 3,841,851.38
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) -27,735.32 -27,735.33
Credit impairment loss (marked with "-") 259,660.83 761,253.49
Asset impairment loss (marked with "-")
Gain on disposal of assets (loss marked with "-") 827,119.70 1,916,580.72
3. Operating profit (loss marked with "-") -35,911,872.68 -40,921,398.29
Plus: non-operating income 618,827.99 3,510,232.39
Less: non-operating expenses 84,616.47 44,613.10
Iv. Total profit (total loss marked with "-") -35,377,661.16 -37,455,779.00
Less: Income tax expense
V. Net profit (Net loss marked with "-") -35,377,661.16 -37,455,779.00
(a) classification according to business continuity
1. Net profit from continuing operations (net loss marked with "-") -35,377,661.16 -37,455,779.00
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 -35,377,661.16 -37,455,779.00
2. Profit and loss of minority shareholders
VI.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
27
Wafangdian Bearing Co., LTD 2023 Midyear Report
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 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 -35,377,661.16 -37,455,779.00
Total comprehensive income attributable to owner of parent company -35,377,661.16 -37,455,779.00
Total comprehensive income attributable to minority shareholders
8. Earnings per Share
(1) Basic earnings per share -0.0879 -0.0930
(2) Diluted earnings per share -0.0879 -0.0930
Chairman: Liu Jun General Accountant : Sun Najuan Accounting charger: Sun Xinyan
4. Profit statement of the parent company
In RMB Yuan
ITEM Half year 2023 Half of 2022
I. Operating income 1,269,357,840.79 1,107,035,197.98
Minus: Operating costs 1,069,068,985.86 930,698,932.84
Taxes and surcharges 5,582,719.99 5,640,635.84
Cost of sales 67,125,310.66 59,438,922.62
Management fees 44,197,962.91 39,762,798.70
Research and development costs 79,798,958.91 82,248,626.79
Finance charges 17,154,726.73 17,842,133.27
Including: interest expense 14,529,197.00 16,136,493.70
Interest income 791,227.98 583,954.05
Plus: Other benefits 3,446,353.19 3,643,789.38
Investment income (Loss marked with "-") 4,980,548.02 2,313,263.02
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 "-") -27,735.32 -27,735.33
Credit impairment loss (marked with "-") 259,660.83 760,946.12
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Wafangdian Bearing Co., LTD 2023 Midyear Report
Asset impairment loss (marked with "-")
Income from asset disposal (marked with "-" for loss) 395,223.53 1,916,580.72
II. Operating profit (Loss marked with "-") -4,516,774.02 -19,990,008.17
Add: non-operating income 613,959.19 2,838,150.86
Less: non-operating expenses 41,972.30 38,477.14
III. Total profit (Total loss marked with "-") -3,944,787.13 -17,190,334.45
Less: income tax expense
IV. Net Profit (Net loss marked with "-") -3,944,787.13 -17,190,334.45
(1) Net profit from continuing operations (net loss marked with "-") -3,944,787.13 -17,190,334.45
(2) Net profit from discontinued operations (net loss marked with "-")
V.Net after-tax income of other comprehensive income
(1) other comprehensive income that cannot be reclassified into profit or loss
1. Remeasure the change amount of the set benefit plan
2. Other comprehensive income that cannot be transferred to profit or loss under
the equity method
3. Changes in fair value of other equity instruments
4. Changes in fair value of the enterprise's own credit risk
5. Other
(2) other comprehensive income that is reclassified into profit and loss
1. Other comprehensive income that can be converted to profit or loss under the
equity method
2. Changes in fair value of other creditor's rights investments
3. The amount of financial assets reclassified into other comprehensive income
4. Credit impairment provisions for other debt investments
5. Cash flow hedging reserves
6. Foreign currency financial statements translation difference
7. Other
VI Total comprehensive income -3,944,787.13 -17,190,334.45
VII. Earnings per Share:
(1) Basic earnings per share -0.0098 -0.0427
Diluted earnings per share -0.0098 -0.0427
5. Consolidated cash flow statement
In RMB Yuan
project Half year 2023 Half of 2022
I. Cash flow generated by operating activities:
Cash received from selling goods and providing services 466,045,627.31 511,896,957.53
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
29
Wafangdian Bearing Co., LTD 2023 Midyear Report
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 21,803,913.81 18,818,823.87
Other cash received in connection with operating activities 25,638,280.70 34,460,789.75
Subtotal of cash inflow from operating activities 513,487,821.82 565,176,571.15
Cash paid for goods and services 409,419,550.13 291,471,686.75
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 200,757,829.66 199,414,904.76
All taxes and fees paid 53,378,233.96 21,623,679.34
Other cash payments related to operating activities 73,170,858.75 66,251,474.70
Subtotal of cash outflow from operating activities 736,726,472.50 578,761,745.55
Net cash flow from operating activities -223,238,650.68 -13,585,174.40
II. Cash flow generated by investing activities:
Recoup cash received on investment
Cash received for investment income 2,000,000.00 18,821.12
Net cash recovered from the disposal of fixed assets, intangible assets and
1,651,190.00
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 2,000,000.00 1,670,011.12
Cash paid for the purchase and construction of fixed assets, intangible assets
3,311,391.74 2,403,306.13
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 3,311,391.74 2,403,306.13
Net cash flow from investing activities -1,311,391.74 -733,295.01
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 478,000,000.00 723,000,000.00
Other cash received in connection with financing activities 288,883,986.11 169,643,983.71
Subtotal of cash inflow from financing activities 766,883,986.11 892,643,983.71
Cash paid to repay debts 479,000,000.00 646,000,000.00
30
Wafangdian Bearing Co., LTD 2023 Midyear Report
Cash used to distribute dividends, profits, or repay interest payments 14,342,277.50 15,405,252.29
Among them: dividends and profits paid by subsidiaries to minority shareholders
Payment of other cash in connection with financing activities 141,765,674.98 175,540,163.82
Subtotal of cash outflows from financing activities 635,107,952.48 836,945,416.11
Net cash flow from financing activities 131,776,033.63 55,698,567.60
IV. Effect of exchange rate changes on cash and cash equivalents 2,414,126.62 864,904.74
V.Net increase in cash and cash equivalents -90,359,882.17 42,245,002.93
Plus: Cash and cash equivalents balance at the beginning of the period 227,357,291.37 209,847,896.42
VI.Cash and cash equivalents balance at the end of the period 136,997,409.20 252,092,899.35
6. Cash flow statement of parent company
In RMB Yuan
project Half year 2023 Half of 2022
I. Cash flow generated by operating activities:
Cash received from selling goods and providing services 446,720,657.51 433,983,928.87
Net increase in customer deposits and interbank deposits 21,803,913.81 14,374,954.28
Net increase in borrowing from central banks 23,697,223.83 33,818,212.48
Net increase in funds borrowed from other financial institutions 492,221,795.15 482,177,095.63
Cash obtained by receipt of premiums from the original insurance contract 463,706,703.93 247,385,038.07
Net cash received for reinsurance operations 164,433,778.96 158,079,199.48
Net increase in deposit and investment funds 38,583,393.18 16,804,801.43
Cash that receives interest, charges and commissions 49,507,200.24 56,132,270.61
Net increase in borrowed funds 716,231,076.31 478,401,309.59
Net increase in funds for repurchase operations -224,009,281.16 3,775,786.04
Net cash received from agents buying and selling securities
Refund of taxes received
Other cash received in connection with operating activities 2,000,000.00 18,821.12
Subtotal of cash inflow from operating activities 1,651,190.00
Cash paid for goods and services
Net increase in customer loans and advances
Net increase in deposits with central banks and interbank funds 2,000,000.00 1,670,011.12
Cash for payment of claims under the original insurance contract 2,574,444.04 1,918,581.58
Net increase in divestment funds 3,340,000.00
Cash to pay interest, fees and commissions
Cash to pay policy dividends
Cash paid to and for employees 2,574,444.04 5,258,581.58
All taxes and fees paid -574,444.04 -3,588,570.46
Other cash payments related to operating activities
Subtotal of cash outflow from operating activities
Net cash flow from operating activities 478,000,000.00 723,000,000.00
II. Cash flow generated by investing activities: 288,883,986.11 99,305,239.27
Recoup cash received on investment 766,883,986.11 822,305,239.27
Cash received for investment income 479,000,000.00 646,000,000.00
31
Wafangdian Bearing Co., LTD 2023 Midyear Report
Net cash recovered from the disposal of fixed assets, intangible assets and
14,342,277.50 15,405,252.29
other long-term assets
Net cash received from disposal of subsidiaries and other business units 141,765,674.98 101,500,000.00
Other cash received in connection with investing activities 635,107,952.48 762,905,252.29
Subtotal of cash inflow from investing activities 131,776,033.63 59,399,986.98
Cash paid for the purchase and construction of fixed assets, intangible assets
2,414,126.62 864,904.74
and other long-term assets
Cash paid for investment -90,393,564.95 60,452,107.30
Net increase in pledged loans 214,794,244.00 189,762,214.30
Obtain net cash paid by subsidiaries and other business units 124,400,679.05 250,214,321.60
32
Wafangdian Bearing Co., LTD 2023 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
ITEM other Minority
Perpetu Capital less： appropria Surplus General Owner’s
Capital Prefe comprehen Undistributed sharehold
al public treasure tive public provision for Others total equity
stock rred Oth sive profits ers’ equity
Capital reserves stock reserve reserves risk
shar er
Securitie income
es
s
I. Ending balance of 402,600, 485,691,0 1,933,20 136,770,391 470,302,9 470,302,993
-556,691,657.88
the previous year 000.00 50.47 9.86 .01 93.46 .46
Plus: Accounting
policy change
Early error correction
Merger of businesses
under the same
control
other
II, the beginning 402,600, 485,691,0 1,933,20 136,770,391 470,302,9 470,302,993
-556,691,657.88
balance of this year 000.00 50.47 9.86 .01 93.46 .46
III. Amount of
increase or decrease - -
3,903,23
in the current period -35,377,661.16 31,474,43 31,474,430.
0.32
(marked with "-" for 0.84 84
decrease)
(1) Total - -
comprehensive -35,377,661.16 35,377,66 35,377,661.
income 1.16 16
(2) Owner investment
and capital reduction
1.
33
Wafangdian Bearing Co., LTD 2023 Midyear Report
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)
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
34
Wafangdian Bearing Co., LTD 2023 Midyear Report
forward retained
earnings
6. Other
3,903,23 3,903,230 3,903,230.3
(5) Special reserves
0.32 .32 2
7,379,21 7,379,219 7,379,219.4
1. Current withdrawal
9.48 .48 8
3,475,98 3,475,989 3,475,989.1
2. Use this period
9.16 .16 6
(6) Others
IV. Ending balance of 402,600, 485,691,0 5,836,44 136,770,391 438,828,5 438,828,562
-592,069,319.04
the current period 000.00 50.47 0.18 .01 62.62 .62
The amount of the previous period
In RMB Yuan
Half year 2021
Owner's equity in the parent company
Other equity instruments
ITEM other Minority
Capital less： appropria Surplus General Owner’s
Capital Prefe comprehen Undistributed sharehold
Perpetual Ot public treasure tive public provision for Others total equity
stock rred sive profits ers’ equity
Capital he reserves stock reserve reserves risk
shar
Securities r income
es
I. Ending balance of 402,600, 485,691,0 136,770,391 608,267,2 608,267,282
-416,794,159.01
the previous year 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
-416,794,159.01
balance of this year 000.00 50.47 .01 82.47 .47
35
Wafangdian Bearing Co., LTD 2023 Midyear Report
III. Amount of
increase or decrease - -
853,381.
in the current period -37,455,779.00 36,602,39 36,602,397.
29
(marked with "-" for 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
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
36
Wafangdian Bearing Co., LTD 2023 Midyear Report
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
5,481,89 5,481,896 5,481,896.6
1. Current withdrawal
6.62 .62 2
4,628,51 4,628,515 4,628,515.3
2. Use this period
5.33 .33 3
(6) Others
IV. Ending balance of 402,600, 485,691,0 853,381. 136,770,391 571,664,8 571,664,884
-454,249,938.01
the current period 000.00 50.47 29 .01 84.76 .76
8. Statement of changes in owner's equity of the parent company
This amount
In RMB Yuan
Amount in previous period
Other equity instruments
Item Other appropria Undistri
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
income reserve
risk
profits
stock Securities
I. Balance at the end of last 402,600,000.00 485,678,443.26 441,390. 136,770,391.01 -374,807,248.18 650,682,976.13
37
Wafangdian Bearing Co., LTD 2023 Midyear Report
year 04
Plus: Change in accounting
policy
Previous error correction
other
II.The beginning balance of the 441,390.
402,600,000.00 485,678,443.26 136,770,391.01 -374,807,248.18 650,682,976.13
current year 04
III. Amount of increase or
2,644,59
decrease in the current period -3,944,787.13 -1,300,195.78
1.35
(marked with "-" for decrease)
(1) Total comprehensive
-3,944,787.13 -3,944,787.13
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)
38
Wafangdian Bearing Co., LTD 2023 Midyear Report
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
2,644,59
(5)Special reserves 2,644,591.35
1.35
5,121,78
1. This extract 5,121,784.00
4.00
2,477,19
2. In current use 2,477,192.65
2.65
(6) Others
3,085,98
IV. Ending balance 402,600,000.00 485,678,443.26 136,770,391.01 -378,752,035.31 649,382,780.35
1.39
The amount of the previous period
In RMB Yuan
Amount in previous period
Other equity instruments
Item Other appropria Undistri
Perpetual Capital public less： General provision for
Capital stock Preferred comprehensive tive Surplus public reserves buted Owner’s equity
Capital Other reserves treasure stock
income reserve
risk
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
39
Wafangdian Bearing Co., LTD 2023 Midyear Report
other
II.The beginning balance of
402,600,000.00 485,678,443.26 136,770,391.01 -295,864,551.04 729,184,283.23
the current year
III. Amount of increase or
853,381.
decrease in the current period -17,190,334.45 -16,336,953.16
29
(marked with "-" for decrease)
(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
40
Wafangdian Bearing Co., LTD 2023 Midyear Report
4. Set benefit plan changes
carried forward to retained
earnings
5. Other consolidated
earnings carried forward to
retained earnings
6. other
853,381.
Special reserves 853,381.29
29
3,587,41
1. This extract 3,587,411.10
1.10
2,734,02
2. In current use 2,734,029.81
9.81
(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
41
Wafangdian Bearing Co., LTD 2023 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
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,
42
Wafangdian Bearing Co., LTD 2023 Midyear Report
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). These financial statements were approved by the Board of Directors of the Company on
April 26, 2023.
The relevant information of the Company's subsidiaries is detailed in this note "IX. Interests in Other Entities".
Changes in the scope of consolidation during the reporting period are detailed in this note "VIII. Changes in the scope of Consolidation".
IV. Basis for the preparation of financial statements
1. Establishment basis
These financial statements are in accordance with the Accounting Standards for Business Enterprises - Basic Standards and various specific
accounting standards, the Application Guide of Accounting Standards for Business Enterprises, the interpretation of Accounting Standards for
Business Enterprises and other relevant provisions promulgated by the Ministry of Finance (hereinafter collectively referred to as "Accounting
Standards for Business Enterprises"). And the relevant provisions of the China Securities Regulatory Commission "Information Disclosure and
Reporting Rules for Companies that Publicly Issue Securities No. 15 - General Provisions for Financial Reports".
2.Going concern
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 accounting estimates tips:
Specific accounting policies and accounting estimates formulated by the Group based on actual production and operation characteristics include
the operating cycle, the recognition and measurement of bad debt provisions for receivables, the measurement of issued inventories, the
classification and depreciation of fixed assets, the amortization of intangible assets, the capitalization conditions for research and development
expenses, and the recognition and measurement of revenue.
1, follow the accounting standards for business enterprises statement
These financial statements comply with the requirements of the Accounting Standards for Business Enterprises issued by the Ministry of Finance
and give a true and complete view of the Company's consolidated and parent company financial position as of December 31, 2022, and the
consolidated and parent company's operating results and cash flows for the year 2022.
2. Accounting period
A fiscal year begins on January 1 and ends on December 31.
3. Business cycle
The business cycle of the company is 12 months.
4. Functional currency
The Group takes RMB as its functional currency.
43
Wafangdian Bearing Co., LTD 2023 Midyear Report
5. under the same control and not under the same control of the accounting treatment of enterprise merger
Business combination under the same control: the assets and liabilities acquired by the merging party in the business combination (including the
goodwill formed by the acquisition of the merged party by the ultimate controlling party) are measured on the basis of the carrying value of the
assets and liabilities of the merged party in the consolidated financial statements of the ultimate controlling party at the merger date. The
difference between the book value of the net assets acquired in the merger and the book value of the merger consideration paid (or the total
nominal value of the issued shares), the capital premium in the capital reserve is adjusted, and the retained earnings are adjusted if the capital
premium in the capital reserve is insufficient to be written off.
Business combination under non-identical control: The cost of combination is the fair value of the assets paid by the purchaser, liabilities
incurred or assumed, and equity securities issued by the purchaser to acquire control of the purchaser on the purchase date. The difference
between the cost of the merger and the acquiree's share of the fair value of identifiable net assets obtained in the merger is recognized as
goodwill; The difference in the cost of the merger that is less than the acquiree's share of the fair value of identifiable net assets acquired in the
merger is recognized in profit or loss for the period. The identifiable assets, liabilities and contingent liabilities of the acquiree that are eligible for
recognition acquired in the merger are measured at fair value at the purchase date.
The expenses directly related to the business combination are recognized in the current profit or loss when incurred; Transaction costs incurred
in the issuance of equity or debt securities for the purpose of a business combination are included in the initial recognition amount of the equity
or debt securities.
6. Preparation method of consolidated financial statements
Merge scope
The consolidated scope of the consolidated financial statements is determined on a control basis and includes the Company and all subsidiaries.
Control means that the company has power over the investee, enjoys variable returns by participating in related activities of the investee, and
has the ability to use its power over the investee to influence the amount of returns.
? Merge program
The Company regards the entire enterprise Group as one accounting entity and prepares consolidated financial statements in accordance with
unified accounting policies to reflect the overall financial position, operating results and cash flows of the enterprise Group. The effect of internal
transactions between the Company and its subsidiaries or subsidiaries shall be offset. If the internal transaction indicates that the relevant asset
has an impairment loss, the loss shall be fully recognized. If the accounting policies and accounting periods adopted by the subsidiary are
inconsistent with those of the Company, necessary adjustments shall be made in accordance with the accounting policies and accounting
periods of the Company when preparing the consolidated financial statements.
Subsidiary owners' equity, current period net profit and loss and the share of minority shareholders in the current period comprehensive income
are shown separately under owners' equity in the consolidated balance sheet, under net profit in the consolidated income statement and under
total comprehensive income, respectively. The loss shared by the minority shareholders of the subsidiary in the current period exceeds the
balance formed by the minority shareholders' share in the initial owner's equity of the subsidiary, and the shareholders' equity is reduced by
several.
(1) Add subsidiaries or businesses
During the reporting period, if a business combination under the same control increases a subsidiary or business, the operating results and cash
flows of the subsidiary or business combination from the beginning of the current period to the end of the reporting period are included in the
consolidated financial statements, while adjustments are made to the opening number of the consolidated financial statements and the relevant
items in the comparative statements, and the consolidated reporting entity is deemed to have existed since the point at which the ultimate
44
Wafangdian Bearing Co., LTD 2023 Midyear Report
controlling party began to control.
If the investee under the same control can be controlled due to additional investment or other reasons, the equity investment held before the
acquisition of the control of the merged party, the relevant profit and loss, other comprehensive income and other changes in net assets have
been recognized between the date of the acquisition of the original equity and the date on which the merging party and the merged party are
under the same control and the date of the merger, Offset the opening retained earnings or current profit and loss of the comparative statement
period respectively.
During the reporting period, if a subsidiary or business is added as a result of a business combination not under the same control, it is included
in the consolidated financial statements from the purchase date on the basis of the fair value of each identifiable asset, liability and contingent
liability identified at the purchase date.
If the investee that is not under the same control can be controlled due to additional investment or other reasons, the equity held by the
purchaser before the purchase date shall be remeasured according to the fair value of the equity on the purchase date, and the difference
between the fair value and the carrying value shall be included in the current investment income. Other comprehensive income related to the
equity held by the purchaser before the purchase date, which can be reclassified into profit or loss later, and other changes in owners' equity
under the equity method are converted into investment income for the current period of the purchase date.
(2) Disposal of subsidiaries
① General treatment methods
When the control of the investee is lost due to the disposal of part of the equity investment or for other reasons, the remaining equity investment
after disposal shall be remeasured according to its fair value on the date of the loss of control. 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
and the sum of goodwill that should have been continuously calculated from the purchase date or the merger date based on the original
shareholding ratio, is included in the investment income during the period of loss of control. Other comprehensive income related to the equity
investment of the original subsidiary, which can be reclassified into profit or loss later, and other changes in owner's equity under the equity
method of accounting, are converted to current investment income when the right of control is lost.
② Dispose of subsidiaries step by step
Where an equity investment in a subsidiary is disposed of progressively through multiple transactions until control is lost, the terms, conditions
and economic effects of each transaction in which the equity investment in the subsidiary is disposed of meet one or more of the following
circumstances, which generally indicate that the multiple transaction is a package transaction:
I. The transactions were entered into at the same time or with regard to their mutual effects;
ⅱ. These transactions as a whole can achieve a complete business outcome;
ⅲ. The occurrence of one transaction depends on the occurrence of at least one other transaction;
Iv.. A transaction is uneconomic in isolation, but it is economic when taken together with other transactions.
Where each transaction is a package transaction, each transaction shall be accounted for as one transaction of disposal of the subsidiary and
loss of control; The difference between the disposal price and the share of the subsidiary's net assets corresponding to the disposal investment
prior to the loss of control is recognized as other comprehensive income in the consolidated financial statements and transferred to profit or loss
in the period when control is lost.
If each transaction is not a package transaction, before the loss of the right of control, the equity investment of the subsidiary shall be disposed
of in part according to the condition that the right of control is not lost. When the right of control is lost, the accounting treatment is carried out in
accordance with the general treatment of the disposal of subsidiaries.
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(3) Purchase of minority shares in subsidiaries
The difference between the newly acquired long-term equity investment due to the purchase of minority shares and the share of net assets of
the subsidiary that should be continuously calculated from the purchase date or the merger date based on the proportion of the newly acquired
shares is adjusted for the equity premium in the capital reserve in the consolidated balance sheet, and if the equity premium in the capital
reserve is insufficient to be offset, the retained earnings are adjusted.
(4) Partial disposal of the equity investment in the subsidiary without loss of control
The difference between the disposal price and the disposal of long-term equity investment and the share of net assets continuously calculated
by the subsidiary since the purchase date or the merger date shall be adjusted for the equity premium in the capital reserve in the consolidated
balance sheet, and if the equity premium in the capital reserve is insufficient to be offset, the retained earnings shall be adjusted.
7. Classification of joint venture arrangement and accounting treatment of joint operation
8. Determination criteria for cash and cash equivalents
Cash means cash on hand of the Company and deposits that can be used for payment at any time. Cash equivalents refer to investments held
by the Company with a short term, strong liquidity, easy to convert into known amounts of cash, and little risk of changes in value.
9. Translation of foreign currency business and foreign currency statements
1. Foreign currency transactions
For foreign currency business, the spot exchange rate on the date of occurrence of the transaction is used as the conversion rate to convert the
amount of foreign currency into RMB.
The balance of foreign currency monetary items at the balance sheet date is translated at the spot rate at the balance sheet date, and the
resulting exchange difference, except for the exchange difference arising from special foreign currency borrowings related to the acquisition and
construction of assets eligible for capitalization in accordance with the principle of capitalization of borrowing costs, is recognized in the profit or
loss of the current period.
2. Translation of foreign currency financial statements
The assets and liabilities in the balance sheet shall be translated at the spot exchange rate at the balance sheet date; Owners' equity items are
translated at the spot exchange rate at the time of occurrence, except for "undistributed profit" items. The income and expense items in the
income statement are translated using the spot exchange rate on the date of occurrence of the transaction.
When disposing of an overseas operation, the difference in the translation of foreign currency financial statements related to the overseas
operation is transferred from the owner's equity item to the profit or loss of the disposal period.
10.Financial instruments
The Company recognizes a financial asset, financial liability or equity instrument when it becomes a party to a financial instrument contract.
1. Classification of financial instruments
Based on the Company's business model of managing financial assets and the contractual cash flow characteristics of financial assets, financial
assets are classified at initial recognition into: financial assets measured at amortized cost, financial assets measured at fair value and whose
changes are included in other comprehensive income, and financial assets measured at fair value and whose changes are included in current
profit or loss.
The Company classifies financial assets measured at amortized cost that are not designated at fair value and whose changes are recognized in
profit or loss for the current period and meet both of the following conditions:
- The business model aims to collect contract cash flow;
Contract cash flow is only the payment of the principal and interest based on the outstanding principal amount.
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The Company classifies financial assets (debt instruments) measured at fair value and recorded in other comprehensive income as financial
assets (debt instruments) measured at fair value that meet the following conditions and are not designated as fair value and whose changes are
recorded in profit or loss for the current period:
- A business model aimed at both collecting contract cash flows and selling the financial asset;
Contract cash flow is only the payment of the principal and interest based on the outstanding principal amount.
For investments in non-trading equity instruments, the Company may, upon initial recognition, irrevocably designate them as financial assets
(equity instruments) that are measured at fair value and whose changes are included in other comprehensive income. The designation is made
on the basis of a single investment and the underlying investment meets the definition of an equity instrument from the point of view of the issuer.
In addition to the above financial assets measured at amortized cost and at fair value and whose changes are included in other comprehensive
income, the Company classifies all remaining financial assets as financial assets measured at fair value and whose changes are included in
current profit or loss. At initial recognition, if accounting misalignments can be eliminated or significantly reduced, the Company may irrevocably
designate financial assets that should be classified as measured at amortized cost or at fair value and whose changes are recorded in other
comprehensive income as financial assets that are measured at fair value and whose changes are recorded in profit or loss for the current
period.
Financial liabilities are classified at initial recognition into financial liabilities measured at fair value and whose changes are recognised in profit or
loss for the period and financial liabilities measured at amortised cost.
A financial liability that meets one of the following criteria may be designated as a financial liability measured at fair value at initial measurement
and whose changes are recognised in profit or loss for the current period:
1) This designation can eliminate or significantly reduce accounting mismatches.
2) Manage and evaluate the performance of a portfolio of financial liabilities or a portfolio of financial assets and financial liabilities on a fair value
basis in accordance with the enterprise risk management or investment strategy as set out in the formal written documents, and report internally
to key management on this basis.
3) The financial liability contains embedded derivatives that need to be spun off separately.
2. Basis for recognition and measurement of financial instruments
(1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include notes receivable, accounts receivable, other receivables, long-term receivables, debt
investments, etc., which are initially measured at fair value, and related transaction costs are included in the initial recognized amount;
Receivables that do not contain a significant financing component, and receivables that the Company decides not to take into account a
financing component that is less than one year old, are initially measured at the contract transaction price.
Interest calculated using the effective interest method during the holding period is included in current profit or loss.
At the time of recovery or disposal, the difference between the price obtained and the carrying value of the financial asset is included in the
current profit or loss.
(2) Financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income
Financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income, including
receivables financing, other debt investments, etc., are initially measured at fair value, and related transaction costs are included in the initial
recognition amount. The financial asset is subsequently measured at fair value, and changes in fair value are included in other comprehensive
income except for interest, impairment losses or gains and exchange gains and losses calculated using the effective interest method.
Upon termination of recognition, the accumulated gains or losses previously recognized in other comprehensive income are transferred out of
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other comprehensive income and recognized in current profit or loss.
(3) Financial assets measured at fair value and whose changes are included in other comprehensive income (equity instruments)
Financial assets (equity instruments) measured at fair value and whose changes are included in other comprehensive income, including
investments in other equity instruments, are initially measured at fair value, and related transaction costs are included in the initial recognition
amount. The financial asset is subsequently measured at fair value and changes in fair value are included in other comprehensive income.
Dividends earned are included in current profit or loss.
Upon termination of recognition, accumulated gains or losses previously recognized in other comprehensive income are transferred from other
comprehensive income and recognized in retained earnings.
(4) Financial assets measured at fair value and whose changes are recognized in profit or loss for the current period
Financial assets that are measured at fair value and whose changes are included in current profit or loss include transactional financial assets,
derivative financial assets, other non-current financial assets, etc., which are initially measured at fair value and related transaction costs are
included in current profit or loss. The financial asset is subsequently measured at fair value and changes in fair value are recognised in profit or
loss for the period.
(5) Financial liabilities measured at fair value and whose changes are recognized in profit or loss for the current period
Financial liabilities that are measured at fair value and whose changes are included in current profit or loss include transactional financial
liabilities, derivative financial liabilities, etc., which are initially measured at fair value and related transaction costs are included in current profit or
loss. This financial liability is subsequently measured at fair value and changes in fair value are recognised in profit or loss for the period.
Upon termination of recognition, the difference between the carrying value and the consideration paid is included in the current profit or loss.
(6) Financial liabilities measured at amortized cost
Financial liabilities measured at amortized cost, including short-term borrowings, notes payable, accounts payable, other payables, long-term
borrowings, bonds payable, long-term payables, are initially measured at fair value, and related transaction expenses are included in the initial
recognition amount.1
Interest calculated using the effective interest method during the holding period is included in current profit or loss.
Upon termination of recognition, the difference between the consideration paid and the carrying value of the financial liability is included in the
current profit or loss.
3. Termination of recognition and transfer of financial assets
The Company terminates the recognition of financial assets when one of the following conditions is met:
- Termination of contractual rights to receive cash flows from financial assets;
- The financial assets have been transferred and virtually all the risks and rewards of ownership of the financial assets have been transferred to
the transferring party;
- The financial assets have been transferred, although the Company neither transfers nor retains virtually all of the risks and rewards in the
ownership of the financial assets, but does not retain control of the financial assets.
When a financial asset is transferred, if almost all the risks and rewards in the ownership of the financial asset are retained, the recognition of the
financial asset is not terminated.
When judging whether the transfer of financial assets meets the above conditions for termination of recognition of financial assets, the principle
of substance over form is adopted.
The company divides the transfer of financial assets into whole transfer and partial transfer of financial assets. If the overall transfer of financial
assets meets the conditions for termination of recognition, the difference between the following two amounts shall be included in the current
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profit or loss:
(1) the book value of the transferred financial assets;
(2) The sum of the consideration received as a result of the transfer and the accrued amount of the change in fair value originally credited
directly to owners' equity (where the financial asset involved in the transfer is a financial asset (debt instrument) measured at fair value and
whose change is credited to other comprehensive income).
If the partial transfer of financial assets meets the conditions for termination of recognition, the overall carrying value of the transferred financial
assets shall be apportioned between the terminated part and the unterminated part according to their relative fair value, and the difference
between the following two amounts shall be included in the current profit or loss:
(1) Terminate the book value of the part recognized;
(2) The sum of the consideration for the portion of the termination of recognition and the amount corresponding to the portion of the termination
of recognition in the cumulative amount of the change in fair value that was originally directly included in the owner's equity (where the financial
asset involved in the transfer is a financial asset (debt instrument) that is measured at fair value and whose change is included in other
comprehensive income).
If the transfer of financial assets does not meet the conditions for termination of recognition, the financial assets continue to be recognized and
the consideration received is recognized as a financial liability.
4. Termination of recognition of financial liabilities
If the present obligation of a financial liability has been discharged in whole or in part, the recognition of the financial liability or part thereof shall
be terminated; If the Company signs an agreement with creditors to assume a new financial liability to replace the existing financial liability, and
the contractual terms of the new financial liability are materially different from those of the existing financial liability, the existing financial liability
shall be terminated and the new financial liability shall be recognized at the same time.
If all or part of the contract terms of the existing financial liability are materially modified, the recognition of the existing financial liability or part of
the existing financial liability is terminated, and the financial liability after the modification is recognized as a new financial liability.
When a financial liability is fully or partially terminated for recognition, the difference between the carrying value of the financial liability
terminated for recognition and the consideration paid (including non-cash assets transferred out or new financial liabilities assumed) is
recognized in profit or loss for the current period.
If the Company repurchases part of the financial liability, the carrying value of the whole financial liability shall be allocated on the repurchase
date according to the relative fair value of the continuing recognition part and the terminated recognition part. The difference between the
carrying value assigned to the discontinued recognition portion and the consideration paid (including non-cash assets transferred out or new
financial liabilities assumed) is recognised in profit or loss for the period.
Methods for determining the fair value of financial assets and financial liabilities
A financial instrument in which there is an active market and its fair value is determined by the quotation in the active market. Financial
instruments for which there is no active market are determined at fair value using valuation techniques. In valuation, the Company uses valuation
techniques that are applicable in the current circumstances and supported by sufficient available data and other information, selects input values
that are consistent with the characteristics of the asset or liability considered by market participants in the transaction of the underlying asset or
liability, and gives preference to the relevant observable input values. Unobservable input values are used only if the relevant observable input
values are unavailable or impractical to obtain.
1. Test methods and accounting treatment for impairment of financial assets
The Company estimates, individually or in combination, expected credit losses on financial assets measured at amortized cost, financial assets
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(debt instruments) measured at fair value and whose changes are included in other comprehensive income, and financial guarantee contracts.
The Company recognizes expected credit losses by calculating the present value of the difference between the cash flows receivable from the
contract and the cash flows expected to be received, weighted by the risk of default, taking into account reasonable and evidence-based
information about past events, current conditions and projections of future economic conditions.
If the credit risk of the financial instrument has increased significantly since the initial recognition, the Company measures its loss reserve at an
amount equivalent to the expected credit loss over the entire life of the financial instrument; If the credit risk of the financial instrument has not
increased significantly since the initial recognition, the Company measures its loss reserve at an amount equivalent to the expected credit loss of
the financial instrument over the next 12 months. The resulting increase or reversal of the loss provision is recognised in the current profit or loss
as impairment loss or gain.
The Company compares the risk of default of the financial instruments at the balance sheet date with the risk of default at the initial recognition
date to determine the relative change in the risk of default over the expected life of the financial instruments to assess whether the credit risk of
the financial instruments has increased significantly since the initial recognition. Generally, the Company considers that the credit risk of the
financial instrument has increased significantly if the maturity exceeds 30 days, unless there is conclusive evidence that the credit risk of the
financial instrument has not increased significantly since the initial recognition.
If the credit risk of a financial instrument is low at the balance sheet date, the Company considers that the credit risk of the financial instrument
has not increased significantly since its initial recognition.
If there is objective evidence that a financial asset has suffered credit impairment, the Company shall make an impairment provision for the
financial asset on an individual basis.
For receivables and contractual assets formed from transactions regulated by Accounting Standard for Enterprises 14 - Revenue (2017),
whether or not they contain a significant financing component, the Company always measures its loss provision at an amount equal to expected
credit losses over the entire duration.
For lease receivables, the Company chooses to always measure its loss provision at an amount equal to expected credit losses over the entire
duration.
In addition to assessing overdue credit losses on an individual basis for certain financial assets, the Group also assesses expected credit losses
on financial assets measured at amortised cost on an aging portfolio basis.
The Group divides notes receivable and accounts receivable into several combinations based on the credit risk characteristics, and calculates
the expected credit losses on the basis of the combination. The basis for determining the combination is as follows:
combination On the basis of
Notes Receivable 1 Banker's acceptance bill
Note Receivable 2 Collection of commercial acceptance bills from related parties
Notes Receivable 3 A collection of commercial acceptances received from unrelated 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
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Risk-free portfolio (categorize the portfolio according to the reputation of the transaction
Other receivables 3
object, the nature of the money, the transaction safeguard measures, etc.)
For other receivables grouped into portfolios, the Group calculates expected credit losses based on default risk exposure and expected credit
loss rates over the duration, taking into account historical credit loss experience, current conditions and projections of future economic conditions.
If the Company no longer reasonably expects that the cash flow of the financial asset contract can be recovered in whole or in part, it shall
directly write down the book balance of the financial asset.
11. Notes receivable
12. Accounts receivable
13. Receivables financing
14. Other receivables
Determination method and accounting treatment method of expected credit loss of other receivables
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15. inventory
(1) Classification and cost of inventory
Inventory is classified into: raw materials, packaging, low-value consumables, products in process, goods in stock, etc.
Inventory is initially measured at cost, which includes procurement costs, processing costs, and other expenses incurred to bring the inventory to
its current location and condition.
(2) Valuation method for issued inventory
Inventory is priced using the real-time moving weighted average method when issued.
(3) The basis for determining the net realizable value of different categories of inventories
At the balance sheet date, inventory shall be measured at the lower of cost or net realizable value. When the cost of the inventory is higher than
its net realizable value, a provision shall be made for the decline of the inventory price. Net realizable value is the amount of the estimated
selling price of inventory in daily activities less the estimated costs to be incurred at completion, estimated selling expenses and related taxes.
The net realizable value of commodity inventories directly used for sale, such as finished products, goods in stock and materials used for sale,
shall be determined in the normal course of production and business by the estimated selling price of the inventory less the estimated selling
expenses and related taxes; The net realizable value of the inventory of materials to be processed is determined in the normal course of
production and business 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 related taxes; The net realizable value of the inventory held for the purpose of executing the sales
contract or service contract shall be calculated on the basis of the contract price. If the quantity of the inventory held is greater than the quantity
ordered under the sales contract, the net realizable value of the excess inventory shall be calculated on the basis of the general sales price.
After the provision for inventory depreciation, if the factors affecting the previous reduction of inventory value have disappeared, resulting in the
net realizable value of the inventory being higher than its carrying value, the amount of the original provision for inventory depreciation shall be
reversed, and the amount of the reversal shall be included in the current profit or loss.
(4) Inventory system
Adopt a perpetual inventory system.
(5) The amortization method of low-value consumables and packaging
1) Low-value consumable products use a resale method;
2) The packaging adopts a resale method.
16. Contractual assets
The Company shows contractual assets or contractual liabilities in the balance sheet according to the relationship between the performance
obligations and the customer's payments. The right to receive consideration for goods or services that the Company has transferred to the
customer (and that right depends on factors other than the passage of time) is shown as a contract asset. Contract assets and contract liabilities
under the same contract are shown in net terms. The Company's unconditional (depending only on the passage of time) right to collect
consideration from the customer is shown separately as receivables.
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The determination method and accounting treatment of expected credit losses of contract assets are detailed in this note "(IX) 6. Test Method
and accounting Treatment Method for Impairment of Financial Assets".
17. Contract cost
Contract cost includes contract performance cost and contract acquisition cost.
The cost incurred by the Company for the performance of the contract, which does not fall within the scope of relevant standards such as
inventory, fixed assets or intangible assets, shall be recognized as an asset as the performance cost of the contract when the following
conditions are met:
This cost is directly related to a current or expected contract.
This cost increases the Company's resources to meet performance obligations in the future.
This cost is expected to be recovered.
The incremental cost incurred by the Company to obtain a contract is recognized as an asset if it is expected to be recovered as a contract
acquisition cost.
Assets related to contract costs are amortized on the same basis as the recognition of revenue of goods or services related to that asset;
However, if the amortization period of contract acquisition costs does not exceed one year, the Company will recognize it in the profit and loss of
the current period when it occurs. If the carrying value of an asset related to the contract cost is higher than the difference between the following
two items, the Company shall make an impairment provision for the excess and recognize it as an asset impairment loss:
(a) the remaining consideration expected to be obtained as a result of the transfer of goods or services related to the asset;
2. Estimate the costs to be incurred for the transfer of the relevant goods or services.
If the factors of impairment in previous periods change later, making the aforementioned difference higher than the carrying value of the asset,
the Company shall revert to the original provision for impairment and record it in the profit or loss of the current period, provided that the carrying
value of the asset after the reversal shall not exceed the carrying value of the asset on the date of reversal if no provision for impairment is
assumed.
18. Holding assets for sale
19. Debt investment
20. Other debt investment
21. Long-term receivables
22. Long-term equity investment
Common control, significant influence criteria
Joint control refers to the common control of an arrangement in accordance with the relevant agreement, and the relevant activities of the
arrangement must be agreed upon by the participants who share control. Where the Company, together with other joint ventures, exercises joint
control over the investee and enjoys rights over the net assets of the investee, the investee shall be a joint venture of the Company.
Significant influence refers to having the power to participate in the decision-making of the financial and operational decisions of the investee,
but not being able to control or jointly control the formulation of these policies with other parties. Where the Company is able to exert significant
influence on the investee, the investee is an associate enterprise of the Company.
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Determination of initial investment costs
(1) Long-term equity investment formed by business merger
For a long-term equity investment in a subsidiary formed by a combination of enterprises under the same control, the initial investment cost of
the long-term equity investment is based on the share of the acquired owner's equity in the book value of the consolidated financial statements
of the ultimate controlling party on the merger date. The difference between the initial investment cost of long-term equity investment and the
book value of the consideration paid, and the equity premium in the capital reserve; The retained earnings are adjusted when the equity
premium in the capital reserve is insufficient to write off. If the investore under the same control can be controlled due to additional investment or
other reasons, the difference between the initial investment cost of long-term equity investment recognized in accordance with the above
principles and the sum of the book value of long-term equity investment before the merger plus the book value of the new consideration for
further shares acquired on the merger date shall be adjusted for the equity premium, and the retained earnings shall be deducted if the equity
premium is insufficient.
For a long-term equity investment in a subsidiary formed by a merger of enterprises not under the same control, the merger cost determined on
the purchase date shall be regarded as the initial investment cost of the long-term equity investment. If the investee under different control can
be controlled due to additional investment or other reasons, the initial investment cost shall be the sum of the book value of the equity
investment originally held plus the cost of the new investment.
(2) Long-term equity investments made through means other than business consolidation
For long-term equity investment obtained by cash payment, the initial investment cost shall be based on the purchase price actually paid.
For long-term equity investments obtained by issuing equity securities, the initial investment cost shall be based on the fair value of the equity
securities issued.
Subsequent measurement and profit and loss recognition methods
(1) Long-term equity investments accounted for by the cost method
The Company's long-term equity investments in subsidiaries are accounted for using the cost method, unless the investment is held for sale. In
addition to the cash dividends or profits declared but not yet paid in the price or consideration actually paid at the time of investment acquisition,
the Company recognizes the current investment income according to the cash dividends or profits declared and paid by the investee.
(2) Long-term equity investments accounted for by the equity method
Long-term equity investments in associates and joint ventures shall be accounted for using the equity method. If the initial investment cost is
greater than the investment, it shall enjoy the difference in the share of the fair value of the identifiable net assets of the investee, without
adjusting the initial investment cost of long-term equity investment; When the initial investment cost is less than the investment, the difference in
the share of the fair value of the identifiable net assets of the investee shall be included in the current profit or loss, and the cost of long-term
equity investment shall be adjusted.
The Company recognizes investment income and other comprehensive income respectively according to the share of net profit and loss and
other comprehensive income realized by the investee, and adjusts the book value of long-term equity investment; The book value of long-term
equity investment shall be reduced accordingly in accordance with the profit or cash dividend declared by the investee; For changes in owner's
equity other than net profit and loss, other comprehensive income and profit distribution of the investee (" Other owner's equity changes "), the
carrying value of long-term equity investments is adjusted and included in owner's equity.
When recognizing the share of the investee's net profit and loss, other comprehensive income and other changes in owner's equity, it is
recognized on the basis of the fair value of the investee's identifiable net assets at the time of acquisition of the investment, and after adjusting
the net profit and other comprehensive income of the investee in accordance with the company's accounting policies and accounting periods.
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The profit or loss of unrealized internal transactions between the company and its associate or joint venture shall be offset by the part
attributable to the company calculated in proportion to its share, and the investment income shall be recognized on this basis, except where the
assets invested or sold constitute business. If the unrealized internal transaction loss occurred with the investee is an asset impairment loss, it
shall be fully recognized.
The net loss incurred by the Company to the joint venture or associated enterprise, except for the obligation to bear additional losses, shall be
limited to the carrying value of the long-term equity investment and other long-term interests that substantially constitute the net investment in
the joint venture or associated enterprise. If a joint venture or associate enterprise later realizes net profit, the company shall resume the
recognition of the income sharing amount after the income sharing amount has made up the unrecognized loss sharing amount.
(3) Disposal of long-term equity investments
If a long-term equity investment is disposed of, the difference between the carrying value and the actual purchase price shall be included in the
current profit or loss.
If part of the long-term equity investment accounted for by the equity method is disposed of, and the remaining equity is still accounted for by the
equity method, the other comprehensive income recognized by the original equity method is carried forward on the same basis as the relevant
assets or liabilities directly disposed of by the invee, and the changes in other owners' equity are transferred to the current profit or loss in
proportion.
Where the common control or significant influence on the investee is lost due to the disposal of equity investment or other reasons, other
comprehensive income recognized by the original equity investment as a result of the equity method accounting shall be accounted for on the
same basis as the direct disposal of the relevant assets or liabilities by the investee when the equity method accounting is terminated. All other
changes in owners' equity are transferred to current profit or loss upon termination of the equity method.
If the company loses the control over the investee due to the disposal of part of the equity investment or other reasons, and the remaining equity
can jointly control or significantly affect the investee when preparing individual financial statements, it shall be calculated according to the equity
method, and when the remaining equity is regarded as self-acquired, it shall be adjusted by the equity method. Other comprehensive income
recognized before the acquisition of the control of the investee is carried forward on the same basis as the direct disposal of related assets or
liabilities by the investee, and the changes in other owner's equity recognized by the equity method are transferred to the current profit or loss on
a proportional basis; If the remaining equity cannot jointly control or exert significant influence on the investee, it is recognized as a financial
asset, and the difference between the fair value and the carrying value on the date of loss of control is included in the current profit or loss, and
all other comprehensive income and other changes in owners' equity recognized before the acquisition of the control of the investee are carried
forward.
If the equity investment of the subsidiary is disposed of step by step through multiple transactions until the control is lost, and it is a package
transaction, each transaction shall be accounted for as a transaction that disposed of the equity investment of the subsidiary and lost the control.
The difference between the disposal price of each disposal and the book value of the disposed equity against the entitled long-term equity
investment before the loss of control is first recognized as other comprehensive income in individual financial statements, and then transferred to
the loss and profit of the current period when the control is lost. If it is not a package transaction, each transaction shall be accounted for
separately.
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Wafangdian Bearing Co., LTD 2023 Midyear Report
23. Investment real estate
Investment real estate measurement model
Cost measurement
Depreciation or amortization method
Investment real estate refers to real estate held for the purpose of earning rent or capital appreciation, or both, including land use rights that
have been leased, land use rights that have been held and are to be transferred after appreciation, and buildings that have been leased
(including buildings that have been leased after completion of self-construction or development activities, and buildings that are under
construction or development and will be leased in the future).
Subsequent expenditures related to investment real estate are included in the cost of investment real estate when the related economic benefits
are likely to flow in and their costs can be reliably measured; Otherwise, it is charged to current profit or loss when incurred.
The Company adopts a cost model for the measurement of existing investment real estate. The depreciation policy for investment real estate -
leased buildings measured according to the cost model is the same as that for the Company's fixed assets, and the amortization policy for
leased land use rights is the same as that for intangible assets.
24. Fixed assets
(1) Confirm the conditions
Fixed assets refer to tangible assets with a unit value of more than 2,000 yuan that are held for the purpose of producing commodities, providing
services, renting or operating management and have a service life exceeding one fiscal year. Fixed assets are recognized when both of the
following conditions are met:
(1) The economic benefits related to the fixed assets are likely to flow into the enterprise;
(2) The cost of the fixed asset can be measured reliably.
Fixed assets are initially measured at cost (taking into account the impact of anticipated disposal cost factors).
Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the economic benefits related to them are likely to
flow in and their costs can be reliably measured; To terminate the recognition of the book value of the replaced portion; All other subsequent
expenses are recognised in profit or loss as incurred.
（2） Depreciation method
Depreciation fixed
category Depreciation method Salvage Yearly depreciation
number of year
Houses and buildings
Where: Buildings Average age method 15 3 6.47
Production house Average age method 30 3 3.23
Non-productive housing Average age method 35 3 2.77
Road facilities Average age method 30 3 3.23
Machinery and equipment Average age method 10-15 3 6.47-9.70
Transport equipment Average age method 6 3 16.17
Electronic equipment Average age method
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Wafangdian Bearing Co., LTD 2023 Midyear Report
Among them: electronic computers Average age method 4 3 24.25
Universal test instrument Average age method 7 3 13.86
Special electronic equipment Average age method 8 3 12.13
Automatic control equipment Average age method 8 3 12.13
Automatic control instrument Average age method 8 3 12.13
Other equipment Average age method
Among them: industrial kiln Average age method 7 3 13.86
Tools and other tools of production Average age method 9 3 10.78
Conduction equipment Average age method 15 3 6.47
Non-production equipment and
Average age method 18 3 5.39
appliances
(3) Identification basis, valuation and depreciation method of fixed assets leased by finance
25. Construction in progress
Construction in progress is measured at actual cost incurred. Actual costs include construction costs, installation costs, capitalized borrowing
costs, and other expenditures necessary to bring the construction in progress to its intended serviceability. When the construction under
construction reaches the intended serviceable state, it shall be transferred to fixed assets and depreciation shall be calculated from the following
month.
26. Borrowing costs
27. Biological assets
28. Oil and gas assets
29. Use assets
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Wafangdian Bearing Co., LTD 2023 Midyear Report
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
Long-term equity investments, investment real estate measured by the cost model, fixed assets, construction in progress, use rights assets,
intangible assets with limited useful life, oil and gas assets and other long-term assets, where there are signs of impairment at the balance sheet
date, impairment tests shall be conducted. If the impairment test results show that the recoverable amount of the asset is lower than its carrying
value, an impairment provision shall be made according to the difference and included in the impairment loss. The recoverable amount is the
higher of the fair value of the asset, net of disposal costs, and the present value of the asset's expected future cash flows. The asset impairment
reserve is calculated and recognized on the basis of individual assets, and if it is difficult to estimate the recoverable amount of an individual
asset, the recoverable amount of the asset group is determined on the basis of the asset group to which the asset belongs. An asset group is the
smallest portfolio of assets that can independently generate cash inflows.
For goodwill formed as a result of business merger, intangible assets with uncertain service life, intangible assets that have not yet reached the
usable state, regardless of whether there are signs of impairment, at least at the end of each year impairment tests.
The Company conducts goodwill impairment tests, and the carrying value of goodwill formed as a result of the business combination is
apportioned to the relevant asset group in a reasonable way from the date of purchase; If it is difficult to apportion to the relevant asset group, it
is apportioned to the relevant asset group combination. An associated asset group or combination of asset groups is an asset group or
combination that can benefit from the synergies of a business combination.
When conducting an impairment test on the related asset group or asset group combination containing goodwill, if there are signs of impairment
in the asset group or asset group combination related to goodwill, the impairment test is first conducted on the asset group or asset group
combination excluding goodwill, and the recoverable amount is calculated and compared with the relevant carrying value to recognize the
corresponding impairment loss. Then, an impairment test is conducted on the asset group or asset group combination containing goodwill to
compare its carrying value with the recoverable amount. If the recoverable amount is lower than the carrying value, the impairment loss amount
is first offset against the carrying value of the goodwill in the asset group or asset group combination. The book value of the other assets is then
reduced proportionally according to the proportion of the book value of the asset group or the asset group combination of other assets other than
goodwill. Once the above-mentioned asset impairment loss is recognized, it will not be reversed in the subsequent accounting period.
32. Long-term deferred expenses
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Wafangdian Bearing Co., LTD 2023 Midyear Report
Long-term deferred expenses are expenses that have already been incurred but are liable for the current and subsequent periods for an
apportionment period of more than one year. Such expenses are amortized evenly over the benefit period, and if the long-term unamortized
expense item does not benefit subsequent accounting periods, the full amortized value of the item that has not been amortized is carried to profit
or loss for the current period.
33. Contractual liabilities
The Company shows contractual assets or contractual liabilities in the balance sheet according to the relationship between the performance
obligations and the customer's payments. Obligations of the Company to transfer goods or provide services to customers for which consideration
has been received or received from customers are shown as contractual liabilities. Contract assets and contract liabilities under the same
contract are shown in net terms.
34. Employee compensation
(1) Accounting treatment of short-term compensation
During the accounting period in which employees provide services to the Company, the Company recognizes the short-term compensation
actually incurred as a liability and includes it in the profit or loss of the current period or the cost of related assets.
The Company shall, during the accounting period in which the employees provide services to the Company, calculate and determine the
corresponding amount of salary for the employees according to the prescribed basis and proportion of the provision of social insurance
premiums and housing provident funds, as well as the funds for the trade union and the education of the employees as prescribed.
The employee welfare expenses incurred by the Company are included in the current profit or loss or related asset costs according to the actual
amount incurred when actually incurred, among which non-monetary benefits are measured at fair value.
(2) Accounting treatment of post-resignation benefits
(1) Set a drawdown plan
The Company shall pay basic pension insurance and unemployment insurance for its employees in accordance with the relevant regulations of
the local government. During the accounting period when the employees provide services to the Company, the amount payable shall be
calculated according to the payment base and proportion prescribed by the local regulations, recognized as liabilities, and included in the profit
or loss of the current period or the cost of related assets. In addition, the Company participates in the Enterprise annuity plan/Supplementary
pension insurance fund approved by the relevant state authorities. The Company pays contributions to the annuity plan/local social insurance
institution according to a certain proportion of the total salary of the employees, and the corresponding expenditure is included in the profit and
loss of the current period or the cost of related assets.
(2) Set a benefit plan
According to the formula determined by the expected cumulative benefit unit method, the Company will attribute the benefit obligation arising
from the defined benefit plan to the period during which the employee provides the service, and record it in the current profit or loss or related
asset cost.
A deficit or surplus resulting from the present value of defined benefit plan obligations less the fair value of defined benefit plan assets is
recognized as a defined benefit plan net liability or net asset. If there is surplus in the defined benefit plan, the Company shall measure the net
assets of the defined benefit plan by whichever is lower than the surplus of the defined benefit plan or the upper limit of assets.
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Wafangdian Bearing Co., LTD 2023 Midyear Report
All defined benefit plan obligations, including those expected to be paid within twelve months after the end of the annual reporting period in
which the employee rendered services, are discounted at the balance sheet date based on the market yield of Treasury bonds or high-quality
corporate bonds in an active market that match the maturity and currency of defined benefit plan obligations.
The cost of services incurred by the defined benefit Plan and the net interest on the net liabilities or net assets of the defined benefit plan are
recognised in profit or loss or the cost of the related assets for the period; Changes resulting from the remeasurement of net liabilities or net
assets of defined benefit plans are recognized in other comprehensive income and are not carried back to profit or loss in subsequent
accounting periods, and the portion originally recognized in other comprehensive income is fully carried forward to undistributed profit within
equity at the termination of the original defined benefit plan.
At the time of settlement of defined benefit plans, settlement gains or losses are recognized based on the difference between the present value
of defined benefit plan obligations and the settlement price determined on the settlement date.
(3) The accounting treatment method of dismissal welfare
If the Company provides termination benefits to employees, the employee compensation liability arising from the termination benefits shall be
recognized at an early date and recorded in the current profit or loss of either of the following: If the Company cannot unilaterally withdraw the
termination benefits provided by the termination of labor relations plan or reduction proposal; When the Company recognizes costs or expenses
associated with restructuring involving the payment of termination benefits.
(4) Accounting treatment methods for other long-term employee benefits
35. Lease liabilities
36. Expected liabilities
The Group recognizes a liability when the business related to external guarantees, discounting of commercial acceptance bills, pending litigation
or arbitration, product quality assurance and other contingencies meet the following conditions:
(1) The obligation is a current obligation of the Company;
(2) the performance of the obligation is likely to result in the outflow of economic benefits from the Company;
(3) The amount of the obligation can be measured reliably.
Projected liabilities are initially measured at the best estimate of the expenditure required to meet the relevant current obligations.
In determining the best estimate, factors such as risks, uncertainties and the time value of money associated with contingencies are taken into
account. Where the time value of money is significant, the best estimate is determined by discounting the relevant future cash outflows.
Where there is a continuous range of required expenditures within which outcomes are equally likely to occur, the best estimate is determined at
the midpoint of the range; In other cases, the best estimates are treated as follows:
Contingencies involving a single item are determined according to the amount most likely to occur.
Contingencies involving multiple items shall be determined according to the calculation of various possible outcomes and relevant probabilities.
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Wafangdian Bearing Co., LTD 2023 Midyear Report
Where all or part of the expenditure required to satisfy the projected liability is expected to be compensated by a third party, the amount of
compensation is recognized separately as an asset when it is basically certain that it will be received, and the amount of compensation
recognized does not exceed the carrying value of the projected liability.
The Company reviews the carrying value of the projected liabilities at the balance sheet date and adjusts the carrying value according to the
current best estimate if there is solid evidence that the carrying value does not reflect the current best estimate.
37. Payment in shares
38. Preferred stock, perpetual bond and other financial instruments
39. income
Accounting policies used to recognize and measure revenue
Accounting policies used to recognize and measure revenue
The Company has fulfilled its contractual performance obligations by recognizing revenue when the customer acquires control of the relevant
goods or services. Gaining control of a relevant good or service means being able to dominate the use of that good or service and derive almost
all of the economic benefits from it.
If the contract contains two or more performance obligations, the Company shall, on the commencement date of the contract, apportion the
transaction price to each individual performance obligation in proportion to the individual selling price of the goods or services promised by each
individual performance obligation. The Company measures revenue based on the transaction price allocated to each individual performance
obligation.
Transaction Price refers to the amount of consideration that the Company expects to be entitled to receive as a result of the transfer of goods or
services to the Customer, excluding amounts received on behalf of third parties and amounts expected to be refunded to the Customer. The
Company determines the transaction price in accordance with the terms of the contract, in conjunction with its previous customary practice, and
in determining the transaction price, takes into account the impact of factors such as variable consideration, significant financing elements
present in the contract, non-cash consideration, and consideration payable to customers. The Company determines the transaction price
including the variable consideration at an amount not exceeding an amount that is highly unlikely to result in a material reversal of cumulative
recognized revenue upon the elimination of the relevant uncertainty. Where there is a significant financing component to the contract, the
Company determines the transaction price based on the amount payable in cash that is assumed to be paid by the customer upon acquisition of
control of the goods or services, and amortizes the difference between the transaction price and the contract consideration using the effective
interest method over the term of the contract. If one of the following conditions is met, the performance obligation shall be performed within a
certain period of time; otherwise, the performance obligation shall be performed at a certain point:
The customer obtains and consumes the economic benefits brought about by the performance of the Contract by the Company at the same time.
The customer can control the goods under construction in the course of the company's performance.
The products produced by the Company during the performance of the Contract have irreplaceable uses, and the Company is entitled to receive
payment for the performance completed so far during the entire contract period.
For performance obligations performed within a certain period of time, the Company recognizes revenue in accordance with the performance
progress during that period of time, except where the performance progress cannot be reasonably determined. Considering the nature of the
goods or services, the Company adopts the output method or the input method to determine the performance progress. If the performance
progress cannot be reasonably determined, and the costs already incurred are expected to be compensated, the Company will recognize
revenue at the amount of the costs already incurred until the performance progress can be reasonably determined.
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Wafangdian Bearing Co., LTD 2023 Midyear Report
For performance obligations performed at a certain point in time, the Company recognizes revenue when the customer obtains control of the
relevant goods or services. In determining whether the customer has acquired control of the goods or services, the Company considers the
following indications:
The Company has a current collection right in respect of the goods or services, that is, the customer has a current payment obligation in respect
of the goods or services.
The Company has transferred the legal ownership of the goods to the customer, that is, the customer has the legal ownership of the goods.
The Company has physically transferred the goods to the customer, that is, the customer has physically taken possession of the goods.
The Company has transferred the main risks and rewards of the ownership of the goods to the Customer, that is, the customer has obtained the
main risks and rewards of the ownership of the goods.
The customer has accepted the goods or services etc.
The Group's right to receive consideration for the transfer of goods or services to a customer is shown as a contract asset
Impairment is provided on the basis of expected credit losses. The Group's unconditional right to collect consideration from customers is shown
as receivables. The Group's obligation to transfer goods or services to customers for which consideration has been received or received from
customers is shown as a contractual liability.
The use of different business models in the same business leads to differences in revenue recognition accounting policies
40. Government subsidies
type
Government subsidies refer to monetary assets or non-monetary assets obtained free of charge by the Company from the government, which
are divided into government subsidies related to assets and government subsidies related to income.
Government subsidies related to assets refer to government subsidies obtained by the Company for the purchase and construction or other
forms of long-term assets. Revenue-related government subsidies refer to government subsidies other than those related to assets.
The Company's specific criteria for classifying government grants as asset-related are government grants obtained by the Group for the
acquisition, construction or otherwise formation of long-term assets
The Company's specific criteria for classifying government grants as income-related are: government grants other than government grants
related to assets
If the government documents do not clearly specify the object of the subsidy, the Company will classify the government subsidy as asset-related
or revenue-related based on the following judgment: The Group will make a judgment according to the above distinction principle, and if it is
difficult to distinguish, the whole government subsidy is classified as revenue-related.
Confirmation time
Government grants are recognized when the Company is able to meet the conditions attached to them and can receive them.
Accounting treatment
Government subsidies related to assets, write-down of the book value of related assets or recognized as deferred income. If it is recognized as
deferred income, it shall be included in the profit or loss of the current period in a reasonable and systematic way during the service life of the
relevant assets (if it is related to the daily activities of the Company, it shall be included in other income; If it is not related to the daily activities of
the Company, it is included in non-operating income);
Government grants related to revenue that are used to compensate the Company for related costs or losses in subsequent periods are
recognized as deferred revenue and are recognized in current profit or loss during the period in which the related costs or losses are recognized
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Wafangdian Bearing Co., LTD 2023 Midyear Report
(other income if related to the Company's daily activities; If it is not related to the daily activities of the Company, it is included in non-operating
income) or written off the related costs or losses; If it is used to compensate the relevant costs or losses incurred by the Company, it is directly
included in the current profit and loss (if it is related to the daily activities of the Company, it is included in other income; If it is not related to the
daily activities of the Company, it is included in non-operating income) or written off related costs or losses.
41. Deferred tax assets/deferred tax liabilities
Income tax includes current income tax and deferred income tax. In addition to income tax arising from business mergers and transactions or
events that are directly included in owners' equity (including other comprehensive income), the Company recognizes current income tax and
deferred income tax in current profit or loss.
Deferred income tax assets and deferred income tax liabilities are calculated and recognized based on the difference (temporary difference)
between the tax basis of assets and liabilities and their carrying value.
Deferred income tax assets are recognized for deductible temporary differences to the extent that taxable income is likely to be obtained in
future periods to offset deductible temporary differences. For deductible losses and tax credits that can be carried forward to subsequent years,
the corresponding deferred tax assets are recognized to the extent that future taxable income is likely to be obtained to offset the deductible
losses and tax credits.
For taxable temporary differences, deferred income tax liabilities are recognized, except in exceptional circumstances.
Exceptional circumstances in which deferred tax assets or deferred tax liabilities are not recognized include:
Initial recognition of goodwill;
Transactions or events that are neither a business combination nor affect accounting profit and taxable income (or deductible losses) at the time
of occurrence.
Deferred tax liabilities are recognized for taxable temporary differences related to investments in subsidiaries, associates and joint ventures,
unless the Company is able to control the timing of the reversal of the temporary difference and it is likely that the temporary difference will not
be reversed in the foreseeable future. Deferred tax assets are recognized for deductible temporary differences related to investments in
subsidiaries, associates and joint ventures when the temporary difference is likely to be reversed in the foreseeable future and taxable income to
offset the deductible temporary differences is likely to be obtained in the future.
At the balance sheet date, deferred income tax assets and deferred income tax liabilities are measured at the tax rates applicable to the period
during which the underlying asset is expected to be recovered or the underlying liability is settled, in accordance with the tax laws.
On the balance sheet date, the Company reviews the carrying value of the deferred tax assets. If it is likely that it will not be possible to obtain
sufficient taxable income to offset the benefit of the deferred tax asset in future periods, write down the carrying value of the deferred tax asset.
When sufficient taxable income is likely to be obtained, the amount reduced is reversed.
Current income tax assets and current income tax liabilities are presented as the net offset when there is a statutory right to net settlement and
the intention is to net settlement or to acquire assets and settle liabilities simultaneously.
At the balance sheet date, deferred income tax assets and deferred income tax liabilities are shown as net offsets when both of the following
conditions are met:
The taxpayer has the legal right to net settlement of current income tax assets and current income tax liabilities;
Deferred income tax assets and deferred income tax liabilities are related to income tax levied by the same tax administration on the same
taxpayer or to different tax entities, provided that during the period in which each future material deferred income tax asset and liability is
reverted, The taxpayer involved intends to net the current income tax assets and liabilities or to acquire assets and pay off liabilities at the same
time.
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Wafangdian Bearing Co., LTD 2023 Midyear Report
42. lease
(1) Accounting treatment of operating lease
Lease receipts from operating leases are recognised as rental income on a straight-line basis during each period of the lease term. The
Company capitalises the initial direct expenses incurred in relation to the operating lease and apportionments them to profit or loss during the
lease period on the same basis as rental income is recognised. Variable lease payments that are not included in lease collections are
recognised in current profit or loss when actually incurred. If an operating lease is changed, the Company will account for it as a new lease from
the effective date of the change, and the amount received in advance or receivable from the lease before the change will be regarded as the
amount received from the new lease.
(2) Accounting treatment of finance lease
On the commencement date of the lease, the Company recognizes the financial lease receivable for the financial lease and terminates the
recognition of the financial lease assets. When the Company makes the initial measurement of the financial lease receivable, the net lease
investment is taken as the recorded value of the financial lease receivable. The net lease investment is the sum of the unsecured balance and
the present value of the lease proceeds not yet received at the commencement date of the lease term, discounted at the intrinsic interest rate of
the lease.
The Company calculates and recognises interest income for each period of the lease term at a fixed cyclical rate. The termination recognition
and impairment of financial lease receivables are accounted for in accordance with "III. (IX) Financial Instruments" of this note.
Variable lease payments that are not included in the net lease investment measurement are recognised in current profit or loss when actually
incurred.
If a financial lease changes and the following conditions are met, the Company will account for the change as a separate lease:
The change expands the scope of the lease by adding the right to use one or more of the leased assets;
The increased consideration is equivalent to the separate price for the extended portion of the lease, adjusted for the circumstances of the
contract.
If the change of the finance lease is not accounted for as a separate lease, the Company shall deal with the changed lease under the following
circumstances:
If the change takes effect on the commencement date of the lease, the lease will be classified as an operating lease, and the Company will
account for it as a new lease from the effective date of the lease change, and take the net lease investment before the effective date of the lease
change as the book value of the lease asset;
If the change takes effect on the commencement date of the lease and the lease is classified as a finance lease, the Company will account for it
in accordance with the policy of "Financial Instruments" in this note on modification or renegotiation of the contract.
43. Other important accounting policies and estimates
44. Significant changes in accounting policies and estimates
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Wafangdian Bearing Co., LTD 2023 Midyear Report
(1) Changes in important accounting policies
Applicable Not applicable
(2) Changes in important accounting estimates
Applicable Not applicable
(3) The first implementation of the new accounting standards from 2023 to adjust the financial statements related to the first
implementation of the year
Applicable Not applicable
45.other
VI.Taxation
1. The main applicable tax and rate to the Group as follows:
tax Plan tax basis Tax rate
Output tax shall be calculated on the basis of the income
from the sale of goods and taxable services calculated in
The VAT accordance with the provisions of the Tax Law. After 13%、9%、6%、5%
deducting the input tax allowable for deduction in the
current period, the difference shall be the VAT payable
The tax shall be calculated according to the actual VAT and
Urban maintenance and construction tax 7%
consumption tax paid
Corporate income tax The tax shall be paid on the basis of taxable income 15%、25%
The tax shall be calculated according to the actual VAT and
Education fee surcharge 3%
consumption tax paid
The tax shall be calculated according to the actual VAT and
Local education surcharge 2%
consumption tax paid
70% of the original value of the property for self-use or
The property tax 1.2%or12%
rental income from the rented property
Land use tax Area of land use right 6yuan/Square meter
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 2023 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
215,719.18 243,454.50
changes are recorded in current profit or loss
A combined 215,719.18 243,454.50
3. Derivative financial assets
4.Notes receivable
（1）Category of notes receivable
In RMB Yuan
Items Closing Balance Opening Balance
Bank acceptance notes 377,521,719.62 415,924,381.54
Trade acceptance notes 109,774,381.39 58,140,598.48
Bad debt reserve -4,275,386.41 -4,280,386.41
Total 483,020,714.60 469,784,593.61
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Wafangdian Bearing Co., LTD 2023 Midyear Report
In RMB Yuan
Ending balance Opening balance
category Book balance Bad debt reserve Book balance Bad debt reserve
Provision Book value Book value
amount scale amount amount scale amount Provision ratio
ratio
Among them:
Notes receivable for
provision for doubtful
487,296,101.01 100.00% 4,275,386.41 0.89% 483,020,714.60 474,064,980.02 100.00% 4,280,386.41 0.90% 469,784,593.61
accounts on a
combined basis
Among them:
Commercial acceptance 109,774,381.39 22.53% 4,275,386.41 3.89% 105,498,994.98 58,140,598.48 12.26% 4,280,386.41 7.36% 53,860,212.07
Banker's acceptance 377,521,719.62 77.47% 377,521,719.62 415,924,381.54 87.74% 415,924,381.54
total 487,296,101.01 100.00% 4,275,386.41 0.88% 483,020,714.60 474,064,980.02 100.00% 4,280,386.41 0.90% 469,784,593.61
Provision for bad debts by combination: 4275386.41yuan
In RMB Yuan
name Ending balance
Book balance Bad debt reserve Provision ratio
Commercial acceptance 109,774,381.39 4,275,386.41 3.89%
total 109,774,381.39 4,275,386.41
Instructions for determining the basis of the combination:
If the provision for notes receivable is made in accordance with the general model of expected credit losses, please disclose the relevant information of the provision for doubtful
accounts by referring to other methods of disclosure of receivables:
Applicable Not applicable
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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：
In RMB Yuan
Change during the year
Category Opening balance Closing Balance
Accrued Collected/reversed Written-off others
Bad debt
4,280,386.41 5,000.00 4,275,386.41
provision
Total 4,280,386.41 5,000.00 4,275,386.41
（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 307,636,072.57
Trade acceptance notes 55,932,936.37
Total 363,569,008.94
（5） Transfer to receivable as the drawer’s default of performance of obligation
5.Accounts receivable
（1） Category of accounts receivable
In RMB Yuan
Closing Balance Opening Balance
Items Booking balance Provision Booking Booking balance Provision Booking
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
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
68
Wafangdian Bearing Co., LTD 2022 Midyear Report
-Related party 157,191, 13.4 157,191,4 174,465,806. 15.1 174,465,
portfolio 436.37 3% 36.37 41 5% 806.41
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
Provision for bad debts on an individual basis: 77,765,538.08yuan
Ending balance
Name
Book balance Bad debt reserve Provision ratio Reason for provision
Wafangdian bearing Group special It is not expected to be
5,092,669.00 5,092,669.00 100.00%
steel Co., LTD recoverable
Liaoning Yinheng galvanized color It is not expected to be
3,213,308.67 3,213,308.67 100.00%
coated steel plate Co., LTD recoverable
Shandong Hengji New material Co., It is not expected to be
2,284,666.96 2,284,666.96 100.00%
LTD recoverable
Heilongjiang Longmei Logistics Co., It is not expected to be
2,134,140.98 2,134,140.98 100.00%
LTD recoverable
Shandong Yuanda board industry It is not expected to be
1,804,722.77 1,804,722.77 100.00%
Technology Co., LTD recoverable
It is not expected to be
Yingkou Steel Co., LTD 1,696,318.44 1,696,318.44 100.00%
recoverable
It is not expected to be
Hegang Co., LTD. Handan branch 1,608,611.42 1,608,611.42 100.00%
recoverable
It is not expected to be
Angang Steel Company Limited 1,595,050.69 1,595,050.69 100.00%
recoverable
It is not expected to be
Bazhou Tianli system pipe Co., LTD 1,325,600.76 1,325,600.76 100.00%
recoverable
Zhejiang Yesheng New Material Co., It is not expected to be
1,301,760.00 1,301,760.00 100.00%
LTD recoverable
It is not expected to be
Zhongxin Heavy Machinery Co., LTD 1,128,791.54 1,128,791.54 100.00%
recoverable
Henan Taihang vibration machinery It is not expected to be
989,207.41 989,207.41 100.00%
Co., LTD recoverable
It is not expected to be
Donghai New Material Co., LTD 942,558.20 942,558.20 100.00%
recoverable
Shanghai Jieru Heavy Industry It is not expected to be
923,603.80 923,603.80 100.00%
electromechanical equipment Co., LTD recoverable
Tangshan Guofeng Iron and Steel Co., It is not expected to be
883,297.41 883,297.41 100.00%
LTD recoverable
It is not expected to be
Jilin Chengzhong Auto Parts Co., LTD 872,874.22 872,874.22 100.00%
recoverable
Shandong Changhua Machinery It is not expected to be
846,943.06 846,943.06 100.00%
Technology Co., LTD recoverable
China's second heavy machinery
It is not expected to be
Group (Deyang) Wanxin engineering 795,887.92 795,887.92 100.00%
recoverable
equipment
Benxi Beiying Iron and Steel (Group) It is not expected to be
775,804.98 775,804.98 100.00%
Co., LTD recoverable
Shantui Construction Machinery Co., It is not expected to be
772,850.38 772,850.38 100.00%
Ltd. recoverable
Fujian Zhongguang Environmental It is not expected to be
761,374.62 761,374.62 100.00%
protection Technology Co., LTD recoverable
Shandong Yuntong new material It is not expected to be
711,438.94 711,438.94 100.00%
Technology Co., LTD recoverable
Dongfeng Automobile Transmission It is not expected to be
704,098.23 704,098.23 100.00%
Co., LTD recoverable
Shanghai Wei Qiang Heavy Industry 673,595.42 673,595.42 100.00% It is not expected to be
69
Wafangdian Bearing Co., LTD 2022 Midyear Report
Machinery Co., LTD recoverable
It is not expected to be
Dalian Tianyuan Motor Co., LTD 666,383.31 666,383.31 100.00%
recoverable
It is not expected to be
Shanxi Hongda Steel Co., LTD 657,373.00 657,373.00 100.00%
recoverable
Shanxi Hande axle Co., Ltd. Xi 'an It is not expected to be
644,075.33 644,075.33 100.00%
branch recoverable
Dandong Shuguang heavy axle limited It is not expected to be
642,833.42 642,833.42 100.00%
liability company recoverable
Hangzhou Qianjin Gear box Group It is not expected to be
634,135.80 634,135.80 100.00%
Co., LTD recoverable
Wolong Electric Huaian Qingjiang It is not expected to be
601,859.03 601,859.03 100.00%
Motor Co., LTD recoverable
It is not expected to be
Xingtai Iron and Steel Co., LTD 590,148.98 590,148.98 100.00%
recoverable
It is not expected to be
Qinghai Lufeng new material Co., LTD 525,743.44 525,743.44 100.00%
recoverable
Xi 'an Zhuoshibo hydraulic Engineering It is not expected to be
514,938.87 514,938.87 100.00%
Co., LTD recoverable
Jiangsu Laixie Heavy Machinery Co., It is not expected to be
506,477.77 506,477.77 100.00%
LTD recoverable
It is not expected to be
Bengang Steel Plates Co.,Ltd 487,064.68 487,064.68 100.00%
recoverable
Dongfeng Commercial Vehicle Co., It is not expected to be
486,019.87 486,019.87 100.00%
LTD recoverable
Gaotang Lvyin environmental It is not expected to be
477,691.81 477,691.81 100.00%
protection technology Co., LTD recoverable
It is not expected to be
Mudanjiang city reducer factory 467,905.65 467,905.65 100.00%
recoverable
It is not expected to be
Shandong Zhangqiu Blower Co., Ltd. 461,708.13 461,708.13 100.00%
recoverable
It is not expected to be
07-256 factory 460,854.77 460,854.77 100.00%
recoverable
Beijing Jingcheng Star Technology It is not expected to be
450,000.00 450,000.00 100.00%
Development Co., LTD recoverable
Hunan Chaoyang electromechanical It is not expected to be
446,627.60 446,627.60 100.00%
Co., LTD recoverable
It is not expected to be
Liaoyang Su Dong trading company 444,946.96 444,946.96 100.00%
recoverable
It is not expected to be
Shandong Guanzhou Co., LTD 434,439.09 434,439.09 100.00%
recoverable
It is not expected to be
Xiangtan Motor Co., LTD 416,549.65 416,549.65 100.00%
recoverable
It is not expected to be
Shanxi Taigang Stainless Steel Co.,Ltd 402,332.21 402,332.21 100.00%
recoverable
Chengdu Gaoyuan electromechanical It is not expected to be
383,615.52 383,615.52 100.00%
equipment Co., LTD recoverable
It is not expected to be
Boshan Motor Factory Group Co., LTD 373,700.65 373,700.65 100.00%
recoverable
Xuzhou Xugong material supply Co., It is not expected to be
373,237.55 373,237.55 100.00%
LTD recoverable
Qingdao Double Star Tire Industry Co., It is not expected to be
371,251.58 371,251.58 100.00%
LTD recoverable
It is not expected to be
Shandong Quanlin paper Co., LTD 370,734.92 370,734.92 100.00%
recoverable
It is not expected to be
Liaohe Machinery Factory 362,280.30 362,280.30 100.00%
recoverable
70
Wafangdian Bearing Co., LTD 2022 Midyear Report
Nanjing Institute of Astronomical
Optics, National Astronomical It is not expected to be
352,660.01 352,660.01 100.00%
Observatories, Chinese Academy of recoverable
Sciences
It is not expected to be
Rigang Yingkou plate Co., LTD 351,890.29 351,890.29 100.00%
recoverable
Taian Tianhua Economic and trade It is not expected to be
346,554.01 346,554.01 100.00%
Co., LTD recoverable
Guanxian Hongshun composite It is not expected to be
343,820.00 343,820.00 100.00%
material Co., LTD recoverable
Hengfengtai Precision Machinery Co., It is not expected to be
318,948.38 318,948.38 100.00%
LTD recoverable
Shandong Tancheng Xinya light It is not expected to be
318,488.87 318,488.87 100.00%
industry Machinery Co., LTD recoverable
Northeast Special Steel Group Beiman It is not expected to be
315,004.72 315,004.72 100.00%
Special Steel Co., LTD recoverable
General Technology Group Kunming It is not expected to be
312,093.91 312,093.91 100.00%
Machine tool Co., LTD recoverable
Shengli oil field Yinghai building It is not expected to be
310,948.58 310,948.58 100.00%
materials Co., LTD recoverable
Taicang Hutai Chang 'e Papermaking It is not expected to be
310,361.32 310,361.32 100.00%
Equipment Co., LTD recoverable
It is not expected to be
Shaanxi Hande axle Co., LTD 309,157.59 309,157.59 100.00%
recoverable
Pingdingshan Tianan Coal industry It is not expected to be
305,579.25 305,579.25 100.00%
Co., LTD recoverable
Panzhihua Steel Group Chengdu Iron It is not expected to be
303,305.45 303,305.45 100.00%
and Steel Co., LTD recoverable
Hebei Jinxi Iron and Steel Group Co., It is not expected to be
301,978.67 301,978.67 100.00%
LTD recoverable
Harbin Haguo Electric Power It is not expected to be
297,905.32 297,905.32 100.00%
Technology Co., LTD recoverable
Waxing Group Liaoyang bearing It is not expected to be
294,203.05 294,203.05 100.00%
manufacturing Co., Ltd. sales branch recoverable
Sichuan Ningjiang Shanchuan It is not expected to be
288,157.60 288,157.60 100.00%
machinery Co., LTD recoverable
It is not expected to be
Jiangsu Xinrui gear system Co., LTD 286,949.88 286,949.88 100.00%
recoverable
Erzhong Group (Deyang) Jingheng It is not expected to be
286,935.03 286,935.03 100.00%
transmission Equipment Co., LTD recoverable
It is not expected to be
Siemens Motors (China) Co., LTD 284,110.82 284,110.82 100.00%
recoverable
Langfang Shenhua Industry and trade It is not expected to be
282,645.16 282,645.16 100.00%
Co., LTD recoverable
It is not expected to be
Taiyuan Heavy Industry Co. LTD 275,596.93 275,596.93 100.00%
recoverable
Shandong Guanpeng Metal Sheet Co., It is not expected to be
273,748.84 273,748.84 100.00%
LTD recoverable
Baotou Tianli Huanfa It is not expected to be
273,597.67 273,597.67 100.00%
electromechanical company recoverable
It is not expected to be
Zhuzhou gear Co., LTD 270,087.40 270,087.40 100.00%
recoverable
Zhonggang Xi 'an Heavy Machinery It is not expected to be
265,321.47 265,321.47 100.00%
Co., LTD recoverable
Anhui Jianghuai Automobile Group
It is not expected to be
Co., LTD. Light commercial vehicle 264,521.67 264,521.67 100.00%
recoverable
branch
71
Wafangdian Bearing Co., LTD 2022 Midyear Report
Baoji Zhongcheng industry and trade It is not expected to be
256,372.12 256,372.12 100.00%
Co., LTD recoverable
Shandong Huali Motor Group Suzhou It is not expected to be
244,801.28 244,801.28 100.00%
Manufacturing Co., LTD recoverable
Zibo city Boshan Qianjin reducer It is not expected to be
244,579.32 244,579.32 100.00%
factory Co., LTD recoverable
It is not expected to be
Yanggu Dangyu Sheet Co., LTD 243,280.00 243,280.00 100.00%
recoverable
It is not expected to be
Tonghua Iron and Steel Co., LTD 240,568.39 240,568.39 100.00%
recoverable
Shijiazhuang Qiangda slurry pump Co., It is not expected to be
238,749.98 238,749.98 100.00%
LTD recoverable
Neimenggu Hongji Technology new It is not expected to be
231,610.81 231,610.81 100.00%
energy Co., LTD recoverable
It is not expected to be
Taizhong coal machine Co., LTD 215,142.12 215,142.12 100.00%
recoverable
Qinhuangdao Shouqin metal material It is not expected to be
213,911.48 213,911.48 100.00%
Co., LTD recoverable
Chongqing Tiema Industrial Group Co., It is not expected to be
211,196.98 211,196.98 100.00%
LTD recoverable
Shangqi Yiweike Hongyan Commercial It is not expected to be
210,860.60 210,860.60 100.00%
Vehicle Co., LTD recoverable
Shandong Quanlin straw It is not expected to be
207,409.46 207,409.46 100.00%
comprehensive utilization Co., LTD recoverable
Panzhihua steel Vanadium Co., LTD. It is not expected to be
203,004.70 203,004.70 100.00%
Panzhihua Steel Group recoverable
Fujian Wuhang stainless steel It is not expected to be
202,936.71 202,936.71 100.00%
Products Co., LTD recoverable
Taizhou Luqiao Meitian motorcycle It is not expected to be
200,562.00 200,562.00 100.00%
Co., LTD recoverable
Xinxiang Xinlanbeike vibration motor It is not expected to be
200,000.00 200,000.00 100.00%
Co., LTD recoverable
Tianjin Rongtai new composite It is not expected to be
200,000.00 200,000.00 100.00%
material Co., LTD recoverable
Baoji Huawei Mining Machinery Co., It is not expected to be
200,000.00 200,000.00 100.00%
LTD recoverable
It is not expected to be
Hebei Wenfeng Steel Co., LTD 197,979.65 197,979.65 100.00%
recoverable
Suzhou province Prospect It is not expected to be
192,173.26 192,173.26 100.00%
electromechanical equipment Co., LTD recoverable
Zhucheng Shuguang axle limited It is not expected to be
191,824.38 191,824.38 100.00%
liability company recoverable
It is not expected to be
Guangzhou Motor Factory 189,128.68 189,128.68 100.00%
recoverable
Jiangsu Xuzhou Forging Machine Tool It is not expected to be
188,906.34 188,906.34 100.00%
Factory Group Co., LTD recoverable
Hubei Wazhou Xinsheng Technology It is not expected to be
188,136.00 188,136.00 100.00%
Co., LTD recoverable
Hanbang (Jiangyin) Petrochemical Co., It is not expected to be
187,499.99 187,499.99 100.00%
LTD recoverable
It is not expected to be
Handan Sida Motor Co., LTD 186,191.80 186,191.80 100.00%
recoverable
Nanjing Light Industry Machinery It is not expected to be
185,079.54 185,079.54 100.00%
Factory Co., LTD recoverable
Shanghai Sule textile Machinery Co., It is not expected to be
176,984.10 176,984.10 100.00%
LTD recoverable
Shijiazhuang Motor Co., LTD 172,543.31 172,543.31 100.00% It is not expected to be
72
Wafangdian Bearing Co., LTD 2022 Midyear Report
recoverable
Xuzhou Zhongcai Equipment Heavy It is not expected to be
170,930.05 170,930.05 100.00%
Machinery Co., LTD recoverable
Taiyuan Tongze Heavy Industry Co., It is not expected to be
170,178.79 170,178.79 100.00%
LTD recoverable
Shanghai Zhongli Machinery It is not expected to be
164,864.37 164,864.37 100.00%
Manufacturing Co., LTD recoverable
It is not expected to be
Xuzhou Meichi axle Co., LTD 163,037.45 163,037.45 100.00%
recoverable
It is not expected to be
Siping Blower Co., LTD 160,053.21 160,053.21 100.00%
recoverable
It is not expected to be
Anyang coal mine motor factory 159,537.60 159,537.60 100.00%
recoverable
It is not expected to be
Xiangdian Heavy equipment Co., LTD 158,854.17 158,854.17 100.00%
recoverable
It is not expected to be
Zhongshan Weite Motor Co., LTD 158,593.79 158,593.79 100.00%
recoverable
It is not expected to be
Shanxi Motor Factory 158,021.97 158,021.97 100.00%
recoverable
It is not expected to be
Shandong Kerui steel plate Co., LTD 156,702.16 156,702.16 100.00%
recoverable
Hubei Quanli Machinery Group Co., It is not expected to be
152,489.82 152,489.82 100.00%
LTD recoverable
Angang steel machinery development
It is not expected to be
metallurgical electrical appliance repair 150,734.55 150,734.55 100.00%
recoverable
factory
Wafangdian Hongda constant velocity It is not expected to be
148,466.32 148,466.32 100.00%
universal joint manufacturing Co., LTD recoverable
Xinxiang Risheng CNC bearing It is not expected to be
141,314.86 141,314.86 100.00%
equipment Co., LTD recoverable
Shandong Maitli heavy machine Co., It is not expected to be
137,806.10 137,806.10 100.00%
LTD recoverable
Shenzhen Jiyang intelligent technology It is not expected to be
133,560.00 133,560.00 100.00%
Co., LTD recoverable
It is not expected to be
Anhui Anfeng fan Co., LTD 131,355.36 131,355.36 100.00%
recoverable
Shanghai Sule textile Machinery Co., It is not expected to be
126,752.70 126,752.70 100.00%
LTD recoverable
It is not expected to be
Zhejiang Zhonghong Motor Co., LTD 126,348.05 126,348.05 100.00%
recoverable
Shenyang Qunding machinery It is not expected to be
126,286.35 126,286.35 100.00%
Equipment Co., LTD recoverable
Tangshan Dunshi machinery It is not expected to be
124,474.60 124,474.60 100.00%
manufacturing Co., LTD recoverable
Nantong Hengrong machine pump It is not expected to be
123,407.18 123,407.18 100.00%
factory Co., LTD recoverable
Guangxi Tianyang Huamei paper Co., It is not expected to be
122,629.00 122,629.00 100.00%
LTD recoverable
Shenye Heavy Equipment (Shenyang) It is not expected to be
121,909.54 121,909.54 100.00%
Co., LTD recoverable
Hubei Tongfang Gaoke Pump industry It is not expected to be
121,727.00 121,727.00 100.00%
Co., LTD recoverable
Harbin First machine Manufacturing It is not expected to be
121,033.33 121,033.33 100.00%
Group Co., LTD recoverable
It is not expected to be
Nantong Motor Factory 113,634.74 113,634.74 100.00%
recoverable
Shanghai Yaotai Engineering 113,054.61 113,054.61 100.00% It is not expected to be
73
Wafangdian Bearing Co., LTD 2022 Midyear Report
Technology Co., LTD recoverable
It is not expected to be
Qinhuangdao Huaye Motor Co., LTD 111,564.44 111,564.44 100.00%
recoverable
Beijing Machinery Industry Automation It is not expected to be
111,484.00 111,484.00 100.00%
Research Institute recoverable
Shandong Baoding coal coking Co., It is not expected to be
110,528.29 110,528.29 100.00%
LTD recoverable
It is not expected to be
Lingyuan Steel Co., LTD 110,000.00 110,000.00 100.00%
recoverable
Shenyang SAIC Jinbei Automobile It is not expected to be
109,908.15 109,908.15 100.00%
transmission Co., LTD recoverable
It is not expected to be
Dalian Dalma Motor Co., LTD 109,553.86 109,553.86 100.00%
recoverable
It is not expected to be
Taigang Group Oriental Steel Co., LTD 108,997.44 108,997.44 100.00%
recoverable
It is not expected to be
Yingkou Jiachen combustion Co., LTD 108,451.55 108,451.55 100.00%
recoverable
It is not expected to be
Tianma Automobile Group Co., LTD 107,121.10 107,121.10 100.00%
recoverable
Shenyang Sanming Heavy Machinery It is not expected to be
105,807.39 105,807.39 100.00%
Co., LTD recoverable
Tongchuan explosion-proof motor It is not expected to be
105,476.07 105,476.07 100.00%
factory recoverable
Weichai (Weifang) medium-sized It is not expected to be
104,548.21 104,548.21 100.00%
diesel Engine Co., LTD recoverable
China Pingmei Shenma t Energy It is not expected to be
104,296.17 104,296.17 100.00%
Chemical Group Co., LTD. recoverable
It is not expected to be
DBI Corporation, USA 102,568.64 102,568.64 100.00%
recoverable
Jiamusi Ji Chi tractor manufacturing It is not expected to be
101,605.17 101,605.17 100.00%
Co., LTD recoverable
Changchun power generation It is not expected to be
100,536.11 100,536.11 100.00%
equipment limited liability company recoverable
Yangmei Xinzhou General Machinery It is not expected to be
100,447.88 100,447.88 100.00%
Co., LTD recoverable
It is not expected to be
Other individual provisions 10,334,775.34 10,334,775.34 100.00%
recoverable
total 77,765,538.08 77,765,538.08
Provision for bad debts on a portfolio basis：57,311,228.56
Ending balance
名称
Book balance Bad debt reserve Provision ratio
Aging portfolio 986,345,044.75 57,311,228.56 4.61%
Combination of related parties 255,503,245.93
total 1,241,848,290.68 57,311,228.56
Aging disclosure
In RMB Yuan
aging Ending balance
Within 1 year (inclusive) 1,047,374,470.74
1 to 2 years 176,945,852.12
2 to 3 years 36,587,357.00
More than 3 years 58,706,148.90
74
Wafangdian Bearing Co., LTD 2022 Midyear Report
3 to 4 years 8,448,563.73
Four to five years 14,065,231.25
More than 5 years 36,192,353.92
total 1,319,613,828.76
（2）Provision for bad debts accrued, withdrawn or rolled back in the current period
Current provision for bad debts：
In RMB Yuan
Change during the year
Category Opening balance Closing Balance
Accrued Other increase Collected/reversed Written-off
bad debts 135,308,007.64 231,241.00 135,076,766.64
total 135,308,007.64 231,241.00 135,076,766.64
（3） Accounts receivable written off in current period
Item Written-off Amount
Accounts receivable written off 231,241.00
（4） The top five significant accounts receivable categorized by debtors
In RMB Yuan
Ending balance of
Ending balance of Percentage of total ending
Items allowance for doubtful
accounts receivable balance of accounts receivable
accounts
China National Railway Group Corporation
98,990,343.84 7.50% 4,727,751.02
Limited and its subsidiaries
Wafangdian bearing Group precision rolling
84,585,772.18 6.41%
body Co., LTD
Wafangdian bearing Group wind power bearing
79,995,003.37 6.06%
Co., LTD
Wafangdian bearing precision forging Co., LTD 36,115,143.72 2.74%
Wafangdian bearing Group precision
25,813,481.19 1.96%
transmission bearing Co., LTD
total 325,499,744.30 24.67%
6.Financing of receivables
In RMB Yuan
Items Closing Balance Opening balance
Bank acceptance notes 76,075,997.24 30,996,930.63
Total 76,075,997.24 30,996,930.63
Changes in receivables financing and fair value changes during the current period
□ Applicable Not applicable
Current The accumulation of loss reserves
Items Balance at the end New in the current termination recognized in other comprehensive
of last year period recognition Other changes Ending balance income
Bank
acceptance
notes 30,996,930.63 76,075,997.24 30,996,930.63 76,075,997.24
Total
30,996,930.63 76,075,997.24 30,996,930.63 76,075,997.24
If the financing impairment provision for receivables is made in accordance with the general model of expected credit losses, please disclose the
75
Wafangdian Bearing Co., LTD 2022 Midyear Report
relevant information of the impairment provision in accordance with the disclosure method of other receivables:
□ Applicable Not applicable
7.Prepayment
In RMB Yuan
（1） Aging of advances to suppliers
Closing Balance Opening Balance
Items
Amount Percentage (%) Amount Percentage (%)
Within 1 year 39,659,912.21 97.06% 52,055,924.36 98.40%
1 to 2 years 900,173.56 2.20% 543,392.56 1.03%
2 to 3 years 301,749.09 0.74% 301,749.09 0.57%
Total 40,861,834.86 52,901,066.01
（2） The top five significant advances to suppliers categorized by debtors
Items Closing Balance Proportion of receivable(%)
Fushun Special Steel Co., LTD 5,642,438.90 13.81
Zhejiang RIFA Precision Machinery Co., Ltd. 5,320,000.00 13.02
Daye Special Steel Co. LTD 4,180,321.20 10.23
Sofina GMBH Co. LTD 2,670,085.60 6.53
Bengang Steel Plates Co.,Ltd 2,330,118.96 5.70
total 20,142,964.66 49.30
8.Other receivables
Items Closing Balance Opening Balance
Other receivable 13,550,871.27 10,555,282.33
Total 13,550,871.27 10,555,282.33
(1)Interest receivable
(2)Dividends receivable
(3) Other receivable
1） The categories of other receivable by nature
In RMB Yuan
Nature Closing Balance Opening Balance
Deposits and deposits 7,420,750.21 7,570,216.18
Personal reserve fund 2,799,366.50 1,464,007.16
Other money 10,458,935.33 8,649,239.76
Total 20,679,052.04 17,683,463.10
2） Categories of other receivable
1st stage 2nd stage 3rd stage
Expected credit loss Expected credit loss Expected credit loss within life
Provision for bad debt Total
within following 12 within life time
months time(unimpaired) (impaired)
January 1, 2023 balance 7,128,180.77 7,128,180.77
January 1, 2023 Balance in
the current period
June 30, 2023 balance 7,128,180.77 7,128,180.77
Other receivables listed by aging
In RMB Yuan
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Wafangdian Bearing Co., LTD 2022 Midyear Report
Aging Closing Balance
Within 1 year (including 1year) 11,078,792.03
1-2 years 3,197,949.53
2-3 years 520,211.96
Over 3 years 5,882,098.52
3-4years 254,121.72
4-5years 119,264.25
Over 5 years 5,508,712.55
Total 20,679,052.04
3） Bad debt provision accrued or reversed
In RMB Yuan
Change during the year
Category Opening balance Collected/ Closing Balance
Accrued Written-off Others
reversed
Provision for bad
7,128,180.77 7,128,180.77
debt
Total 7,128,180.77 7,128,180.77
(4)Other receivables actually written off in the current period
(5）Other receivables from the top 5 debtors
In RMB Yuan
Closing Balance of
Name Category Closing Balance Aging % of the total OR
Provision
State Grid Liaoning Electric
Power Co., LTD. Dalian Prepaid electricity 1,484,538.49 Within 1 year 7.18%
power Supply company
Anhui conch cement Co.,
Security deposit 1,300,000.00 Within 1 year 6.29% 65,000.00
LTD
CRRC Logistics Limited Security deposit 800,000.00 Within 1 year 3.87% 40,000.00
Shanghai Zhenhua Port
Machinery Heavy Industry Security deposit 400,000.00 Within 1 year 1.93% 20,000.00
Co., LTD
Hebei Zongheng Group
Security deposit 300,000.00 Within 1 year 1.45% 15,000.00
Fengnan Steel Co., LTD
Total 4,284,538.49 20.72% 140,000.00
9.Inventories
（1） Categories of inventories
In RMB Yuan
Closing Balance Opening Balance
Items Provision for Provision for
Book value Net book value Book value Net book value
decline decline
Raw materials 77,854,161.28 12,156,616.26 65,697,545.02 65,513,831.20 14,443,357.39 51,070,473.81
WIP 205,888,852.46 28,070,009.33 177,818,843.13 189,136,443.02 28,175,457.17 160,960,985.85
Finished goods 540,156,780.96 114,510,717.83 425,646,063.13 554,976,127.46 121,372,831.96 433,603,295.50
Turnover
571,041.57 571,041.57 507,593.55 507,593.55
material
Delivery of
476,795.20 476,795.20
goods
Total 824,470,836.27 154,737,343.42 669,733,492.85 810,610,790.43 163,991,646.52 646,619,143.91
（2） Provision for decline in the value of inventories
In RMB Yuan
Increase Reduction in current period
Items Opening Balance The ending balance
Accrual Other To turn back or sell other
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Wafangdian Bearing Co., LTD 2022 Midyear Report
off
The raw
14,443,357.39 2,286,741.13 12,156,616.26
materials
In the product 28,175,457.17 105,447.84 28,070,009.33
Inventory goods 121,372,831.96 6,862,114.13 114,510,717.83
A combined 163,991,646.52 9,254,303.10 154,737,343.42
(3) A statement that the ending balance of inventories contains the capitalized amount of borrowing costs
(4) Description of the amortization amount of contract performance costs in the current period
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
performance of 633,027.20 31,651.36 601,375.84
the contract
A combined 633,027.20 31,651.36 601,375.84
Current contract assets impairment provisions:
In RMB Yuan
Provision for current
item Current reversal Current write-off/write-off reason
period
Performance contract
31,651.36
money
total 31,651.36
11. Holding assets for sale
12. Non-current assets maturing within one year
13. Other current assets
In RMB Yuan
project The ending balance Beginning balance
VAT to be deducted 13,229,359.50 12,418,324.43
Value-added tax pending certification 7,728,945.80 3,257,445.02
Advance income tax 5,830.38
A combined 20,958,305.30 15,681,599.83
14. Bond investment
15. Other debt investments
16. Long-term receivables
17. Long-term equity investment
18. Investment in other equity instruments
In RMB Yuan
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
19. Other non-current financial assets
20. Investment real estate
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Wafangdian Bearing Co., LTD 2022 Midyear Report
(1) Investment real estate with cost measurement model
Applicable □ Not applicable
In RMB Yuan
Projects under
project Houses. Buildings. Land use right A combined
construction
I. Original book value
1. Opening balance 84,454,019.02 52,861,118.81 137,315,137.83
2. Increase in current period 9,260,216.26 9,260,216.26
(1) Outsourcing
(2) inventory \ fixed assets \
9,260,216.26 9,260,216.26
Construction in progress transfer
(3) Business mergers increased
3. Reduction in current period 1,795,076.49 1,795,076.49
(1) Disposal 247,757.37 247,757.37
(2) Other transfer out 1,547,319.12 1,547,319.12
4. Closing balance 91,919,158.79 52,861,118.81 144,780,277.60
II.Accumulated depreciation and
accumulated amortization
1. Opening balance 48,860,526.58 21,242,804.56 70,103,331.14
2. Increase in current period 10,041,943.88 660,755.94 10,702,699.82
(1) Provision or amortization 1,633,333.73 660,755.94 2,294,089.67
3. Reduction in current period 8,408,610.15 8,408,610.15
(1) Disposal 1,022,354.49 1,022,354.49
(2) Other transfer out
4. Closing balance 1,022,354.49 1,022,354.49
III. Impairment provision 57,880,115.97 21,903,560.50 79,783,676.47
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
2. Beginning book value 34,039,042.82 30,957,558.31 64,996,601.13
(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
21. Fixed assets
project The ending balance Beginning balance
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Wafangdian Bearing Co., LTD 2022 Midyear Report
Fixed assets 423,297,598.59 391,769,315.64
A combined 423,297,598.59 391,769,315.64
(1) Fixed assets
Machinery and Transportation Electronic Other
project House building A combined
equipment equipment equipment equipment
I. Original book
value:
1. Opening
277,999,210.75 1,005,957,103.34 21,403,612.37 48,062,629.71 220,675,446.76 1,574,098,002.93
balance
2. Increase in
14,426,901.26 16,501,379.47 639,823.00 1,479,552.25 27,902,020.45 60,949,676.43
current period
(1) Purchase 811,899.37 12,816,688.92 106,194.70 197,366.61 392,799.29 14,324,948.89
(2) Transfer of
projects under 13,615,001.89 3,684,690.55 533,628.30 1,282,185.64 27,509,221.16 46,624,727.54
construction
(3) Business
mergers increased
3. Reduction in
8,152,446.36 10,573,966.01 691,358.32 553,382.51 19,971,153.20
current period
(1) Disposal or
439,549.22 10,573,966.01 691,358.32 553,382.51 12,258,256.06
scrapping
Other roll-out 7,712,897.14 7,712,897.14
4. Closing
284,273,665.65 1,011,884,516.80 22,043,435.37 48,850,823.64 248,024,084.70 1,615,076,526.16
balance
II.Accumulated
depreciation
1. Opening
198,847,353.39 732,582,937.65 16,693,054.45 37,304,780.10 163,740,773.04 1,149,168,898.63
balance
2. Increase in
4,635,529.46 20,651,094.95 372,283.93 1,122,370.24 3,832,633.39 30,613,911.97
current period
(1) Provision and
4,635,529.46 20,651,094.95 372,283.93 1,122,370.24 3,832,633.39 30,613,911.97
withdrawal
3. Reduction in
8,842,430.58 11,114,369.70 659,606.75 531,750.19 21,148,157.22
current period
(1)
Disposal or 433,820.43 11,114,369.70 659,606.75 531,750.19 12,739,547.07
scrapping
Other roll-out 8,408,610.15 8,408,610.15
4. Closing
194,640,452.27 742,119,662.90 17,065,338.38 37,767,543.59 167,041,656.24 1,158,634,653.38
balance
III. Impairment
provision
1. Opening
1,063,718.18 31,389,664.20 17,101.18 575,038.53 114,266.57 33,159,788.66
balance
2. Increase in
current period
(1)
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Wafangdian Bearing Co., LTD 2022 Midyear Report
Provision and
withdrawal
3. Reduction
6,165.04 9,349.43 15,514.47
in current period
(1)
Disposal or 6,165.04 9,349.43 15,514.47
scrapping
4. Closing
1,063,718.18 31,383,499.16 17,101.18 565,689.10 114,266.57 33,144,274.19
balance
IV. Book value
1. Ending
88,569,495.20 238,381,354.74 4,960,995.81 10,517,590.95 80,868,161.89 423,297,598.59
book value
2. Beginning
78,088,139.18 241,984,501.49 4,693,456.74 10,182,811.08 56,820,407.15 391,769,315.64
book value
(2) Temporarily idle fixed assets
The original value of Accumulated
project Impairment loss The book value note
the book depreciation
House building 44,392,007.34 36,932,509.59 7,459,497.75
Machinery and
79,569,439.66 54,920,818.61 19,551,193.40 5,097,427.65
equipment
Transportation
367,434.54 338,640.23 17,101.18 11,693.13
equipment
Electronic equipment 1,036,879.02 927,128.65 82,538.92 27,211.45
Other equipment 7,057,283.11 6,747,631.12 112,640.64 197,011.35
A combined 132,423,043.67 99,866,728.20 19,763,474.14 12,792,841.33
(3) Fixed assets leased through operation and leasing
project Ending book value
Houses and buildings 33,652,066.11
Machinery and equipment 46,420,809.37
Transport equipment 90,370.92
Electronic equipment 821,891.96
Other equipment 585,378.10
total 81,570,516.46
project The book value Reasons for not completing the title certificate
Dalian wazhou precision motor car bearing
26,949,000.50 In the process
plant
22. Construction in progress
project The ending balance Beginning balance
Projects under construction 56,362,047.31 81,891,139.54
A combined 56,362,047.31 81,891,139.54
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Wafangdian Bearing Co., LTD 2022 Midyear Report
(1) Construction in progress details
Improvement of Closing Balance Opening Balance
7th finished
products Book Balance Provision Book Value Book Balance Provision Book Value
Seven finished
product 4,190,539.28 3,735,902.11 454,637.17 4,190,539.28 3,735,902.11 454,637.17
transformation
Secondary
product 2,785,840.68 2,785,840.68 1,847,681.42 1,847,681.42
transformation
New plant project 6,905,703.74 6,905,703.74 6,717,773.55 6,717,773.55
Angular contact
ball bearing 0.00 8,849,557.51 8,849,557.51
production line
Plant area
renovation 0.00 1,470,077.93 1,470,077.93
project
Spherical roller
bearing assembly 1,321,112.55 1,110,842.55 210,270.00 1,321,112.55 1,110,842.55 210,270.00
line
Grinding machine
79,646.02 79,646.02 0.00
modification
1250 salt bath
martensite heat
treatment
0.00 9,601,769.92 9,601,769.92
production line
press investment
transformation
Maintenance and
renovation of
741,000.00 741,000.00 0.00 741,000.00 741,000.00 0.00
grinding
production line
Precision bearing
factory 9,363,716.84 9,363,716.84 9,962,216.12 9,962,216.12
renovation
Thielenhaus
Super precision 0.00 2,123,893.74 2,123,893.74
machine
Railway
625,647.85 24,854.40 600,793.45 625,647.85 24,854.40 600,793.45
reconstruction
Super precision
machine
456,878.68 456,878.68 0.00 456,878.68 456,878.68 0.00
installation
project
Channel Two
construction 256,249.27 225,762.32 30,486.95 259,161.89 225,762.32 33,399.57
project
Crane works 255,382.52 255,382.52 255,382.52 255,382.52
Overhaul branch
4,168,172.47 4,168,172.47 348,672.56 348,672.56
renovation
Precision rolling
element 166,937.61 166,937.61 166,937.61 166,937.61
transformation
Grinding
38,957.26 38,957.26 38,957.26 38,957.26
production line
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Wafangdian Bearing Co., LTD 2022 Midyear Report
Computer
25,623.93 25,623.93 25,623.93 25,623.93
engineering
Dalian Industrial
5,590.45 5,590.45 5,590.45 5,590.45
Park project
Dalian precision
automatic 12,121,496.75 12,121,496.75 12,179,730.00 12,179,730.00
assembly line
Bearing parts
manufacturing
619,469.03 619,469.03 7,835,712.44 7,835,712.44
branch plant
renovation
Liaoyang
reconstruction 1,096,504.43 1,096,504.43 1,426,189.39 1,426,189.39
project
Double pusher
type railway
bearing 4,986,725.68 4,986,725.68 712,389.38 712,389.38
carburizing
production line
other 13,245,087.14 798,994.81 12,446,092.33 17,822,878.43 798,994.81 17,023,883.62
total 63,456,282.18 7,094,234.87 56,362,047.31 88,985,374.41 7,094,234.87 81,891,139.54
(2) Change in the significant construction in progress
83
Wafangdian Bearing Co., LTD 2022 Midyear Report
Including:
Other The cumulative Cumulative
Current Amount current Current
Beginnin reduced investment of the amount of
Budget increas transferred to The ending Progress of period interest Sources
The project name g amounts in project accounts for interest
number e fixed assets in balance the project interest capitalizat of funding
balance the current the proportion of the capitalizatio
amount current period capitalization ion rate
period budget n
amount
7,358,12 6,717,77 187,93
New plant project 6,905,703.74 93.85% 93.85% other
0.12 3.55 0.19
Dalian precision
14,539,9 12,179,7
automatic assembly 58,233.25 12,121,496.75 84.00% 84.00% other
00.00 30.00
line
Railway 14,472,6 625,647.
0.00 625,647.85 97.78% 97.78% other
reconstruction 91.67 85
Seven finished
107,106, 4,190,53
product 4,190,539.28 54.78% 54.78% other
101.50 9.28
transformation
Precision rolling
27,209,7 166,937.
element 166,937.61 51.25% 51.25% other
71.00 61
transformation
Precision bearing 5,500,81 9,962,21
598,499.28 9,363,716.84 100.00% 100.00% other
factory renovation 5.00 6.12
Dalian Industrial 39,164,8
5,590.46 5,590.46 21.04% 21.04% other
Park project 03.61
Overhaul branch 2,513,38 348,672.
4,168,172.47 100.00% 100.00% other
renovation 0.00 56
Grinding production 21,862,0 38,957.2
38,957.26 13.56% 13.56% other
line 00.00 6
239,727, 34,236,0 187,93
total 656,732.53 37,586,762.26
582.90 64.69 0.19
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Wafangdian Bearing Co., LTD 2022 Midyear Report
23. Productive biological assets
(1) Productive biological assets using the cost measurement model
Applicable Not applicable
(2) Productive biological assets that adopt the fair value measurement model
Applicable Not applicable
24. Oil and gas assets
Applicable Not applicable
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 11,842,255.70 135,170,864.63
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 11,842,255.70 135,170,864.63
II. Cumulative
amortization
1. Opening balance 50,856,731.62 6,875,514.30 57,732,245.92
2. Increase in current
2,194,753.76 636,254.46 2,831,008.22
period
(1) Provision and
2,194,753.76 636,254.46 2,831,008.22
withdrawal
3. Reduction in current
660,755.94 660,755.94
period
(1) Disposal 660,755.94 660,755.94
4. Closing balance 52,390,729.44 7,511,768.76 59,902,498.20
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Wafangdian Bearing Co., LTD 2022 Midyear Report
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
IV. Book value
1. Ending book value 70,937,879.49 4,330,486.94 75,268,366.43
2. Beginning book value 72,471,877.31 4,966,741.40 77,438,618.71
(2) The situation of land use right without certificate of title
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
The cost of building
114,379.51 1,334,862.40 100,658.30 1,348,583.61
repairs
A combined 114,379.51 1,334,862.40 100,658.30 1,348,583.61
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
4,179,393.43 626,909.02 4,179,393.43 626,909.02
combination without the
same control
Total 4,179,393.43 626,909.02 4,179,393.43 626,909.02
(3) Unrecognized deferred tax assets details
Deferred tax assets and Ending balance of Deferred tax assets and The beginning balance of
project liabilities offset at the end deferred tax asset or liabilities offset amount at deferred tax asset or
of the period liability after offset the beginning of the liability after offset
86
Wafangdian Bearing Co., LTD 2022 Midyear Report
period
Deferred tax liability 626,909.02 626,909.02
(4) The details of deferred tax assets are not recognized
project The ending balance Beginning balance
Deductible temporary differences 406,214,774.41 406,214,774.41
Deductible loss 838,843,796.79 838,843,796.79
A combined 1,245,058,571.20 1,245,058,571.20
(5) The deductible loss on the unrecognized deferred tax asset will become due in the following years
year The ending balance Beginning balance note
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 257,012,570.92 257,012,570.92
2027 128,422,535.54
total 838,843,796.79 710,421,261.25
31. Other non-current assets
32. Short-term borrowing
(1) Classification of short-term loans
project The ending balance Beginning balance
Credit borrowing 598,000,000.00 699,000,000.00
A combined 598,000,000.00 699,000,000.00
33. Transactional financial liabilities
34. Derivative financial liabilities
35. Notes payable
species The ending balance Beginning balance
Commercial acceptance bill 16,530,628.50 140,000,000.00
Banker's acceptance bill 457,170,085.60 322,446,562.00
A combined 473,700,714.10 462,446,562.00
36. Accounts payable
(1) Presentation of accounts payable
project The ending balance Beginning balance
Payment for goods 1,331,274,433.95 1,266,080,898.13
The payment 51,245,679.26 30,528,086.00
other 6,634,357.81 4,366,050.59
A combined 1,389,154,471.02 1,300,975,034.72
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Wafangdian Bearing Co., LTD 2022 Midyear Report
37. Advance collection
38. Contractual liabilities
project The ending balance Beginning balance
Obligations under contract to be performed 32,782,316.67 30,449,983.07
A combined 32,782,316.67 30,449,983.07
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
40,889,276.33 146,793,246.36 174,996,069.53 12,686,453.16
compensation
II. Post-employment
benefits - Set up an 5,431,700.50 18,677,862.31 19,428,774.24 4,680,788.57
escrow plan
III. Dismissal benefits 476,327.00 626,403.00 1,050,925.00 51,805.00
A combined 46,797,303.83 166,097,511.67 195,475,768.77 17,419,046.73
(2) Listing of short-term remuneration
project Beginning balance Increase in current The reduced The ending balance
1. Salary and bonus.
35,350,531.29 109,198,735.68 135,547,598.03 9,001,668.94
Allowances and Subsidies
2. Employee welfare fee 1,698,260.88 8,921,151.52 10,614,236.89 5,175.51
3. Social insurance
510.00 12,185,104.86 12,185,104.86 510.00
premiums
Among them: medical
510.00 9,604,389.65 9,604,389.65 510.00
insurance premium
Work injury insurance
1,478,343.86 1,478,343.86 0.00
premium
Maternity insurance premium 1,102,371.35 1,102,371.35 0.00
4. Housing provident fund 2,723,387.67 14,920,288.76 14,953,425.68 2,690,250.75
5. Union funds and staff
1,116,586.49 1,567,965.54 1,695,704.07 988,847.96
education funds
A combined 40,889,276.33 146,793,246.36 174,996,069.53 12,686,453.16
(3) Set up the escrow schedule
project Beginning balance Increase in current The reduced The ending balance
1. Basic endowment
5,361,841.68 18,110,008.74 18,860,920.67 4,610,929.75
insurance
2. Unemployment
69,858.82 567,853.57 567,853.57 69,858.82
insurance
A combined 5,431,700.50 18,677,862.31 19,428,774.24 4,680,788.57
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Wafangdian Bearing Co., LTD 2022 Midyear Report
40. Taxes payable
project The ending balance Beginning balance
Value-added tax 18,217,175.37 22,583,213.56
Individual income tax 148,925.71 151,164.11
City maintenance and construction tax 285,053.72 905,007.18
Vehicle and vessel tax 277.11
House tax 729,550.15 761,554.52
Education surcharge 55,065.86 611,185.48
Land use tax 608,428.81 608,428.81
Local education fees surcharge 38,553.55 23,861.56
Stamp duty 763,829.13 822,501.62
total 20,846,582.30 26,467,193.95
41. Other payables
project The ending balance Beginning balance
Other payables 194,520,164.51 180,459,153.26
A combined 194,520,164.51 180,459,153.26
(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
Bid security 1,445,890.00 744,408.75
Amounts due to group 39,861,361.91 29,201,965.04
Authorized dealer margin 92,448,622.76 85,246,975.76
other 60,764,289.84 65,265,803.71
total 194,520,164.51 180,459,153.26
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 4,255,853.73 4,294,078.63
A combined 4,255,853.73 4,294,078.63
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Wafangdian Bearing Co., LTD 2022 Midyear Report
45. Long-term borrowing
(1) Classification of long-term loans
Unit:yuan
Item The ending balance Beginning balance
Credit loan 100,000,000.00
合计 100,000,000.00
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
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
Product quality assurance 575,764.32 829,233.94 Withholding product quality indemnity
90
Wafangdian Bearing Co., LTD 2022 Midyear Report
Wind power product quality Product quality problems, by the customer to claim
51,619,454.94 53,459,700.00
claim compensation
A combined 52,195,219.26 54,288,933.94 Reasons for the formation
51. Deferred earnings
Increase in The ending
project Beginning balance The reduced reasons for the formation
current balance
Government
23,668,478.95 2,149,497.24 21,518,981.71 Receive government subsidy
subsidies
Plant and land payment for
Compensation for
building new factory due to
relocation of the old 24,656,000.19 24,656,000.19
demolition of old factory in
factory
Liaozhou
A combined 48,324,479.14 2,149,497.24 46,174,981.90
Projects involving government subsidies:
This period Other
This Amount of
is included in income
period of current Other Related to
Beginning the amount amounts The ending
liabilities new period write- change assets/relate
balance of non- are balance
subsidy down cost s d to earnings
operating included in
amount expense
income this period
Dalian branch
16,225,414.7 1,352,117.9 14,873,296. Related to
factory demolition
1 4 77 assets
compensation
Special subsidy fund
for intelligent
1,933,333.3 Related to
manufacturing 2,577,777.79 644,444.40
9 assets
equipment
development
Transformation
project of bearing
base of high-end Related to
0.00
equipment assets
manufacturing
industry
Discount subsidy for
Related to
heavy bearing load 700,000.00 120,000.00 580,000.00
assets
projects
Skills master studio Related to
317,512.38 32,934.90 284,577.48
construction subsidy assets
Grant from Master Related to
43,402.07 43,402.07
Liu Changfu assets
Liaozhou company
3,804,372.0 Related to
industry 3,804,372.00
0 assets
development fund
Related to
23,668,478.9 2,149,497.2 21,518,981.
A combined assets/relate
5 4 71
d to earnings
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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 (equity
201,956,446.52 201,956,446.52
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 1,933,209.86 7,379,219.48 3,475,989.16 5,836,440.18
A combined 1,933,209.86 7,379,219.48 3,475,989.16 5,836,440.18
59. Surplus reserve
project Beginning balance Increase in current The reduced The ending balance
Statutory surplus reserve 116,179,772.10 116,179,772.10
Arbitrary surplus reserve 20,590,618.91 20,590,618.91
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 adjustment -556,691,657.88 -416,794,159.01
Adjust later period initial undistributed profit -556,691,657.88 -416,794,159.01
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Wafangdian Bearing Co., LTD 2022 Midyear Report
Plus: Net profit attributable to the owner of the parent company
-35,377,661.16 -37,455,779.00
for the current period
Undistributed profit at the end of the period -592,069,319.04 -454,249,938.01
61. Operating income and operating costs
project current period Last period
Sales revenue Cost of sales Sales revenue Cost of sales
Main business 1,140,817,796.57 978,989,529.29 979,691,155.71 838,101,350.15
Other business 111,221,553.03 87,473,378.28 106,125,949.21 77,796,178.12
A combined 1,252,039,349.60 1,066,462,907.57 1,085,817,104.92 915,897,528.27
62. Taxes and surcharges
project current period Last period
Urban maintenance and construction tax 1,435,915.09 1,253,558.49
Education fee surcharge 843,826.00 538,989.27
The property tax 1,620,437.67 1,880,694.14
Land use tax 1,373,521.62 1,270,658.38
Stamp duty 1,524,637.01 1,441,258.04
other 154,200.13 76,766.97
A combined 6,952,537.52 6,461,925.29
63. Selling expenses
project current period Last period
Employee compensation 34,023,670.18 33,607,001.53
The quality of reparations 5,178,280.97 3,057,106.21
The freight 1,288,938.64 493,682.94
travel 10,312,809.09 8,921,342.49
Trademark royalties 8,956,515.24 7,262,617.08
Business activity expense 2,619,689.85 3,889,359.90
rent 340,116.90 1,171,050.15
"" 65,957.54 95,556.00
Other fees 8,823,195.26 4,365,769.36
A combined 71,609,173.67 62,863,485.66
64.Administrative expenses
project current period Last period
Employee compensation 42,992,367.07 35,434,550.92
Amortization of intangible assets 2,864,923.46 2,463,020.79
Guard fire cost 1,163,756.98 1,163,756.98
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Wafangdian Bearing Co., LTD 2022 Midyear Report
Depreciation cost 2,668,126.12 2,589,503.18
Operational hospitality 164,355.39 117,999.09
travel 1,195,440.35 594,820.52
Other fees 3,027,426.62 7,104,439.92
A combined 54,076,395.99 49,468,091.40
65. Research and development costs
project current period Last period
Material input 71,947,349.46 76,984,219.22
Technical service fee. Design fee. New
process specification development fee
1,663.01
(equipment debugging fee - new product
tooling)
Artificial cost 3,857,590.23 834,075.19
Depreciation expense and long-term expense
633,317.49 3,085,522.25
amortization
Fuel power 982,264.15 306,116.26
R & D equipment repair and rental costs 231,827.87 36,127.13
Processing fee 23,038.14 1,589,926.92
Test fee 181,238.15
Other fees 4,899,466.42 1,456,583.93
A combined 82,574,853.76 84,475,472.06
66. Financial costs
project current period Last period
Interest charges 14,529,197.00 16,136,493.70
Minus: interest income 819,334.29 621,277.50
Plus: exchange loss -3,799,004.55 -2,178,542.62
Other spending 7,226,489.73 4,747,313.23
A combined 17,137,347.89 18,083,986.81
67. Other income
Generate other sources of revenue current period Last period
Dalian branch plant demolition subsidy 1,352,117.94 1,352,117.94
Job stabilization subsidy 104,221.53 790,453.12
High-end equipment manufacturing industry bearing
236,160.00
base renovation project
Special subsidies for the development of intelligent
644,444.40 644,444.40
manufacturing equipment
Large axle load project discount subsidy 120,000.00 120,000.00
Personal income tax fee refund 85,052.57 68,487.96
6296845157 Electronic return 7,845.61
Skill Master studio construction grant 32,934.90 26,459.34
Dalian Science and Technology Bureau key research 1,134,700.00
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Wafangdian Bearing Co., LTD 2022 Midyear Report
and development in 2022 mid-term acceptance grant
funds
Pay for training on behalf of workers 29,560.00
Competition subsidy 1,500.00
Receivacai (direct) [2022] 3 grant 18,400.00
Dalian Municipal Bureau of Commerce 2019 mid-small
186,240.00
opening fund 401-847
The Social Security Bureau subsidizes one-time work-
500.00
stay training
Dalian Science and Technology Bureau received 2021
521,500.00
mid-term evaluation and acceptance grant funds
Collect social Security unemployment benefits 1,696.46
Return of fees for withholding corporate income tax in
13,571.19
2020
Dalian Jinpu New Area employment and social
1,100.00
insurance division award
The district social security fund will centrally refund
500.00
unemployment insurance
total 3,473,971.34 4,020,036.02
68. Investment income
project current period Last period
Dividend income from investment in other
2,000,000.00 18,821.12
equity instruments during the holding period
Proceeds from debt restructuring 4,328,977.57 3,823,030.26
A combined 6,328,977.57 3,841,851.38
69. Net exposure hedging gain
70. Fair value change income
The source of fair value change income current period Last period
Trading financial assets -27,735.32 -27,735.33
A combined -27,735.32 -27,735.33
71. Credit impairment loss
project current period Last period
Accounts receivable bad debt loss 259,660.83 761,253.49
A combined 259,660.83 761,253.49
72. Impairment loss on assets
73. Gain on disposal of assets
Source of income from disposal of assets current period Last period
Gain on disposal of non-current assets 827,119.70 1,916,580.72
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Wafangdian Bearing Co., LTD 2022 Midyear Report
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 112,589.37 2,561,794.00 112,589.37
Write-off of payments that cannot be made 178,495.36 680,868.30 178,495.36
other 327,743.26 267,570.09 327,743.26
total 618,827.99 3,510,232.39 618,827.99
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
9,749.21 2,207.38 9,749.21
and scrapped
A fine spending 61,068.00 34,773.08 61,068.00
other 13,799.26 7,632.64 13,799.26
A combined 84,616.47 44,613.10
76. Income tax expense、
(1) Income tax expense statement
(2) Accounting profit and income tax expense adjustment process
Unit: Yuan
item Current amount
Gross profit -35,377,661.16
Income tax expense at statutory/applicable tax rates -5,306,649.17
Effect of different tax rates applied to subsidiaries -2,737,424.55
The impact of non-deductible costs, expenses and losses 9,160.20
The effect of deductible temporary differences or deductible
losses on deferred tax assets was not recognized in the current 8,034,913.52
period
77. Other comprehensive income
See notes for details
78. Cash flow statement items
(1) Other cash received in connection with operating activities
project current period Last period
Interest income 950,201.70 357,464.63
Government subsidies 2,719,721.53 2,085,647.11
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Wafangdian Bearing Co., LTD 2022 Midyear Report
Come-and-go money 21,783,982.26 23,882,801.24
Return the deposit 33,934.00 237,297.11
other 150,441.21 7,897,579.66
A combined 25,638,280.70 34,460,789.75
(2) Other cash paid in connection with operating activities
project current period Last period
Cost of sales 11,248,725.32 19,237,719.99
Management fees 3,486,299.84 5,229,473.91
Finance charges 1,405,677.07 347,239.12
other 57,030,156.52 41,437,041.68
A combined 73,170,858.75 66,251,474.70
(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 288,883,986.11 169,643,983.71
A combined 288,883,986.11 169,643,983.71
(6) other cash paid in connection with financing activities
project current period Last period
deposit 141,765,674.98 175,540,163.82
A combined 141,765,674.98 175,540,163.82
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 -35,377,661.16 -37,455,779.00
Plus: asset impairment provision
Depreciation of fixed assets. Depletion of oil and gas assets.
33,170,984.62 38,806,326.19
Depreciation of productive biological assets
Depreciation of right of use
Amortization of intangible assets 2,864,923.46 1,810,337.00
Amortization of long-term deferred expenses 100,658.30 51,535.18
Loss on disposal of fixed assets, intangible assets and other long-term
-827,119.70 -1,916,580.72
assets (marked with "-" for income)
97
Wafangdian Bearing Co., LTD 2022 Midyear Report
Loss on the scrapping of fixed assets (income marked with "-") 9,749.21
Loss from change in fair value (marked with "-" for income) 27,735.32 27,735.33
Financial expense (income marked with "-") 17,137,347.89 18,083,986.81
Investment loss (return marked with "-") -6,328,977.57 -3,841,851.38
Decrease in deferred tax assets (marked with "-" for increase)
Increase in deferred tax liability (marked with "-" for decrease)
Decrease in inventory (increase marked with "-") -23,114,348.94 -43,326,497.65
Reduction of operational receivables (increase marked with "-") -97,513,277.92 -52,432,861.31
Increase in operational items payable (decrease marked with "-") -113,648,325.02 65,847,221.66
other 259,660.83 761,253.49
Net cash flow from operating activities -223,238,650.68 -13,585,174.40
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 136,997,409.20 252,092,899.35
Less: Opening balance of cash 227,357,291.37 209,847,896.42
Plus: Ending balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -90,359,882.17 42,245,002.93
(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. 136,997,409.20 227,357,291.37
Among them: cash on hand 456.30 292.91
A bank deposit that is readily available for payment 136,996,952.90 227,356,998.46
Iii. Ending cash and cash equivalents balance 136,997,409.20 227,357,291.37
80. Statement of Changes in Owners' Equity item notes
81. Assets whose ownership or access is restricted
item Ending book value Limiting reason
Monetary funds 109,698,336.37 Security deposit
total 109,698,336.37
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Wafangdian Bearing Co., LTD 2022 Midyear Report
82. Foreign currency monetary items
(1) Foreign currency monetary items
Ending balance in foreign The balance will be converted
project Discount rate
currency into RMB at the end of the period
Monetary fund
Where: U.S. Dollar 31,183,987.62
The euro 3,430,865.52 7.2258 24,790,748.07
Hong Kong dollars 811,623.51 7.8771 6,393,239.55
Accounts receivable 47,231,914.88
Where: U.S. Dollar 5,350,927.99 7.2258 38,664,735.47
The euro 1,087,605.77 7.8771 8,567,179.41
Hong Kong dollars
Long-term borrowing
Where: U.S. Dollar
The euro
Hong Kong dollars
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
Dalian branch factory demolition Deferred income/other
48,676,244.95 1,352,117.94
compensation income
Special subsidies for the development Deferred income/other
8,000,000.00 644,444.40
of intelligent manufacturing equipment income
High-end equipment manufacturing Deferred income/other
4,723,200.00
industry bearing base renovation project income
Deferred income/other
Large axle load project discount subsidy 2,400,000.00 120,000.00
income
Deferred income/other
Skill Master studio construction grant 700,000.00 32,934.90
income
Deferred income/other
Master Liu Changfu grant 100,000.00
income
Liao Axis company industrial Deferred income/other
4,877,400.00
development fund income
Job stabilization subsidy 104,221.53 Other income 104,221.53
Personal income tax fee refund 85,052.57 Other income 85,052.57
Dalian Science and Technology Bureau
key research and development in 2022 1,134,700.00 Other income 1,134,700.00
mid-term acceptance grant funds
The district social security fund will
centrally refund unemployment 500.00 Other income 500.00
insurance
total 70,801,319.05 3,473,971.34
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Wafangdian Bearing Co., LTD 2022 Midyear Report
(2) Return of government subsidies
□ Applicable Not applicable
85. The other
VIII. Changes in the scope of incorporation
Rights and interests in other subjects
VIIII Interests in other entities
1. Interests in subsidiaries
(1) The composition of enterprise group
Principal place of Place of Shareholding ratio
Subsidiary name Business nature Acquisition mode
operation registration direct indirect
Wazhou Wangshuitai Production and
Liaoyang City,
Liaoyang Bearing street, Taizihe sales of bearing Business
Liaoning 100.00%
Manufacture District, Liaoyang and machinery combination
Co.,Ltd Province
City manufacturing
Dalian Free Production and
Daliang City,
Dalian motor Trade Zone 13 Li sales of bearing Investment and
Liaoning 100.00%
Bearing Co.,Ltd Yongsheng and machinery establishment
Province
Street No. 12 manufacturing
No. 1 Beigongji
Production and
Wazhou spherial Wafangdian, Street,
sales of bearing Business
roller bearing Liaoning Wafangdian City, 100.00%
company limited and machinery combination
Province Liaoning
manufacturing
Province, China.
X. Risks associated with financial instruments
XI. Disclosure of fair value
1. The ending fair value of assets and liabilities measured at fair value
Ending fair value
item Level 1 fair value Level 2 fair value Level 3 fair value
Total
measurement measurement measurement
I. Ongoing fair value
-- -- -- --
measurement
(1) Trading financial
215,719.18 215,719.18
assets
1. Financial assets
measured at fair value
and whose changes are 215,719.18 215,719.18
recorded in profit or loss
for the period
(2) Investment in equity 215,719.18 215,719.18
100
Wafangdian Bearing Co., LTD 2022 Midyear Report
instruments
2. Non-continuous fair
-- -- -- --
value measurement
2. The basis for determining the market price of continuous and non-continuous first-level fair value measurement items
The Group's investment in certain equity instruments in trading financial assets is based on the unadjusted closing price of the shares on the
publicly traded market as at 30 June 2023.
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
Details of the Company's subsidiaries are set out in the notes.
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
195,035,189.45 500,000,000.00 No 116,944,687.61
Wafangdian Bearing Group and equipment
Wafangdian Bearing Precision Purchase of goods
149,910,303.81 320,000,000.00 No 179,504,286.09
Forging Co., Ltd and equipment
Wafangdian bearing group The purchase of
18,449,231.72 50,000,000.00 No 21,011,624.59
precision roller co., LTD goods
Wafangdian bearing Group
The purchase of
High-end Auto Bearing Co., 38,467,029.50 83,000,000.00 No 27,072,625.64
Ltd. goods
Wafangdian Bearing Group The purchase of
76,263,894.84 200,000,000.00 No 98,473,875.79
Precision Retainer Co., Ltd. goods
Dalian Wafangdian Bearing
Purchase
Group Equipment 2,545,775.36 6,000,000.00 No 6,615,765.27
Manufacturing Co., Ltd. equipment
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Wafangdian Bearing Co., LTD 2022 Midyear Report
Wafangdian Bearing Power Purchase
31,835,390.76 66,000,000.00 No 18,784,809.42
Co., Ltd. equipment
Dalian Wazhou Fengyuan The purchase of
8,506,261.69 37,000,000.00 No 1,902,967.60
Machinery Co., Ltd. goods
Wafangdian bearing Group The purchase of
460,644.89
wind power bearing Co., LTD goods
Dalian Wazhou Jinzhou The purchase of
7,608,142.47
Machinery Co., Ltd. goods
Wafangdian Bearing Group
Accepting labor
Engineering Technology 9,445,217.53 25,000,000.00 No 9,336,716.83
Research Center services,
Wafangdian Bearing Education Accepting labor
27,663.72 100,000.00 No 5,000.00
and Training Center services,
Dalian Wafangdian Bearing
Accepting labor
Group Equipment 3,242,369.60 7,000,000.00 No 335,687.50
Manufacturing Co., Ltd. services,
Wafangdian Tongda Bearing Accepting labor
1,483,488.00 6,000,000.00 No 1,492,157.00
Manufacturing Co., Ltd. services,
Wafangdian Bearing Power Accepting labor
1,622,607.13 17,000,000.00 No 3,476,832.42
Co., Ltd. services,
Wafangdian Bearing Group Accepting labor
12,076,128.67 24,900,000.00 No 9,492,928.25
Co., Ltd. services,
Total - 548,910,551.78 1,342,000,000.00 502,518,751.37
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 51,072,193.10 42,348,727.60
Wafangdian Bearing Group (U.S.A.) Co., Ltd. Sales of goods 33,405,570.91 31,395,819.74
Wafangdian bearing group precision roller co., LTD Sales of goods 28,848.85 7,845.00
Wafangdian Bearing Group Wind Power BearingCo., Ltd. Sales of goods 87,546,337.99 36,139,871.29
Wafangdian Bearing Group Sales of goods 82,115,832.79 20,053,147.02
Wafangdian bearing Group High-end Auto Bearing Co.,
Sales of goods 3,468,642.98 6,340,894.14
Ltd.
Germany Leipzig Roller and Ball Bearing Co., Ltd. Sales of goods 9,299,092.26 4,186,674.04
Wazhou Group Precision Drive Bearing Co., Ltd. Sales of goods 966,738.90 759,469.56
ZWZBearingEuropeGmbH Sales of goods
Wafangdian bearing Group special precision bearing Co.,
Sales of goods 1,036,498.71 206,472.06
LTD
Wafangdian Tongda bearing manufacturing Co., LTD Sales of goods 37,788.18
Dalian Wafangdian Bearing Group Equipment
96,267.03 227,337.28
Manufacturing Co., Ltd.
Wafangdian bearing Group precision retainer Co., LTD Sales of goods 25,316.39 105,072.79
Wafangdian Bearing Group Engineering Technology
Sales of goods 6,922.95 247,333.28
Research Center
Wafangdian bearing Group precision rolling body Co., Provide labor
2,123,327.86
LTD services
Wafangdian bearing Group precision transmission Provide labor
25,511,650.85 7,368,340.78
bearing Co., LTD services
Wafangdian bearing Group special precision bearing Co., Provide labor
375,116.64 172,956.81
LTD services
Provide labor
437,635.45
Dalian Waxing Jinzhou machinery Co., LTD services
Wafangdian bearing Group high-end automobile bearing Provide labor
2,466,534.70
limited liability company services
Provide labor
4,415,982.88 879,977.17
Wafangdian bearing precision forging Co., LTD services
Dalian Wafangdian Bearing Group Equipment Provide labor
251,361.35 90,313.52
Manufacturing Co., Ltd. services
102
Wafangdian Bearing Co., LTD 2022 Midyear Report
Provide labor
2,421,277.70 2,471,701.11
Wafangdian Tongda bearing manufacturing Co., LTD services
Provide labor
27,256.64 82,801.25
Wafangdian bearing Group precision retainer Co., LTD services
Provide labor
13,631,475.90 8,469,756.25
Wafangdian Bearing Group services
Provide labor
826,767.44 1,554,911.62
Wafangdian bearing Group wind power bearing Co., LTD services
Wafangdian Bearing Group Sales of equipment 298,462.79
Wafangdian bearing Group precision retainer Co., LTD Sales of equipment 132,000.00
Total - 321,587,265.79 163,547,057.76
Instructions on related transactions for the purchase and sale of commodities, provision and acceptance of services
(2) Associated with entrusted management/contracting and entrusted management/outsourcing
(3) Associated lease
As the lessor, the Company:
Types of Lease income recognized in Lease income recognized in the
Name of the lessee
leased assets the current period previous period
Wafangdian Bearing Precision Forging Co., Ltd land 664,365.00 664,365.00
Wafangdian Bearing Group Precision Retainer Co., Ltd. land 132,727.50 132,727.50
Wafangdian Bearing Group Co., Ltd. land 296,580.00 240,330.00
Wazhou Group Precision Drive Bearing Co., Ltd. land 29,338.81
Wafangdian bearing Group High-end Auto Bearing Co.,
housing 509,922.60 509,922.60
Ltd.
Wafangdian Bearing Precision Forging Co., Ltd housing 586,525.00 586,525.00
Wafangdian Bearing Group Precision Retainer Co., Ltd. housing 459,978.30 459,978.30
Wafangdian bearing Group Co., LTD housing 798,525.85 584,028.00
Dalian Wazhou Fengyuan Machinery Co., Ltd. housing 187,461.60 53,730.00
Wazhou Group Precision Drive Bearing Co., Ltd. housing 138,882.00
Wafangdian bearing Group High-end Auto Bearing Co.,
equipment 1,612,991.56 4,995,470.46
Ltd.
Wafangdian bearing group precision roller co., LTD equipment 171,241.56 187,846.60
Wafangdian Bearing Group Precision Retainer Co., Ltd. equipment 266,354.10 280,659.12
Wafangdian Bearing Group Co., Ltd. equipment 3,863,046.52 4,217,156.68
Wafangdian Bearing Precision Forging Co., Ltd equipment 426,402.54 555,670.74
The Company as the lessee:
Simplified treatment Variable lease
of rental costs for payments not
Interest expenses
short term leases included in the Increased use of
The rent paid incurred on lease
and low value asset measurement of assets
Types liabilities
leases (if lease liabilities (if
Name of of applicable)） applicable)
lessor leased
assets 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
housin 548,892. 823,338.
n Bearing
g 40 60
Group
Wafangdia
housin 137,815. 1,370,13
n Bearing
g 70 9.03
Group
Wafangdia housin 2,426,99 1,213,49
n Bearing g 2.80 6.40
103
Wafangdian Bearing Co., LTD 2022 Midyear Report
Group
Wafangdia
housin 1,367,78 1,367,78
n Bearing
g 4.60 4.70
Group
Wafangdia
housin 1,055,56
n Bearing
g 6.80
Group
Wafangdia
housin 1,176,72 1,176,72
n Bearing
g 5.40 5.40
Group
Wafangdia
housin 358,957. 179,478.
n Bearing
g 50 75
Group
Wafangdia
housin 35,218.6
n Bearing
g 7
Group
Wafangdia
103,882. 155,823.
n Bearing land
16 23
Group
Wafangdia
24,251.5 239,427.
n Bearing land
5 14
Group
Wafangdia
455,700. 227,850.
n Bearing land
00 00
Group
Wafangdia
263,025. 263,025.
n Bearing land
00 00
Group
Wafangdia
287,175. 258,684.
n Bearing land
00 72
Group
Wafangdia
224,475. 224,475.
n Bearing land
00 00
Group
Wafangdia
190,417. 190,417.
n Bearing land
50 50
Group
Wafangdia
equip 44,445.7 104,195.
n Bearing
ment 2 55
Group
Wafangdia
equip 150,222.
n Bearing
ment 00
Group
Wafangdia
equip
n Bearing
ment
Group
Wafangdia
equip 458,538. 458,620.
n Bearing
ment 90 98
Group
Wafangdia
equip 253,925. 53,547.7
n Bearing
ment 86 8
Group
Wafangdia
equip 466,110. 466,110.
n Bearing
ment 54 55
Group
(4) Related guarantee
(5) Related party lending
104
Wafangdian Bearing Co., LTD 2022 Midyear Report
(6) Assets transfer and debt restructuring of related parties
(7) Compensation of key management personnel
item Current amount Last period amount
Pay in total 536,590.40 486,382.80
6. Accounts receivable and payable by related Parties
(1) Receivable items
The project Ending balance Opening balance
name Related party Provision for Provision for bad
Book balance Book balance
bad debt debt
Accounts Wafangdian Bearing Group Wind 79,995,003.37 51,601,405.24
receivable Power BearingCo., Ltd.
Accounts Wafangdian bearing group precision 84,585,772.18 84,978,681.79
receivable roller co., LTD
Accounts Wafangdian Bearing Group (U.S.A.) 20,042,683.27 16,834,162.48
receivable Co., Ltd.
Accounts
418,776.87
receivable Wafangdian Bearing Group
Accounts Wazhou Group Precision Drive
25,813,481.19 30,335,154.70
receivable Bearing Co., Ltd.
Accounts Germany Leipzig Roller and Ball
6,456,627.89 274,528.41
receivable Bearing Co., Ltd.
Accounts Wafangdian Tongda Bearing
2,494,534.31
receivable Manufacturing Co., Ltd.
Accounts Wafangdian Bearing Precision
36,115,143.72 38,999,730.40
receivable Forging Co., Ltd
Advance
Wafangdian Bearing Power Co., Ltd. 958,024.91 149,056.71
payment
Advance Dalian Wafangdian Bearing Group
782,852.56 99,477.71
payment Equipment Manufacturing Co., Ltd.
Wafangdian Bearing Group
Advance
Engineering Technology Research 2,500.00
payment
Center
Other
Accounts Wafangdian Bearing Group 54,005.53
Receivable
Other
Accounts Wafangdian Bearing Precision
794,027.00
Receivabler Forging Co., Ltd
eceivable
(2) Items payable
The project
Related party Closing book balance Starting book balance
name
Accounts
Wafangdian Bearing Group 117,313,503.58 132,706,895.33
payable
Accounts Dalian Wafangdian Bearing Group
2,288,550.31 10,821,238.70
payable Equipment Manufacturing Co., Ltd.
Accounts Wafangdian Tongda Bearing
80,793.56
payable Manufacturing Co., Ltd.
Accounts Dalian Wazhou Fengyuan Machinery
22,029,971.35 8,834,110.73
payable Co., Ltd.
Accounts Wafangdian Bearing Group Engineering
13,228,246.95 12,560,399.01
payable Technology Research Center
Accounts Wafangdian bearing Group precision 40,221,330.29 27,868,567.48
105
Wafangdian Bearing Co., LTD 2022 Midyear Report
payable retainer Co., LTD
Accounts
Wafangdian Bearing Power Co., Ltd. 6,450,368.24 3,061,174.63
payable
Accounts Wafangdian bearing Group High-end
40,183,731.76 32,490,015.05
payable Auto Bearing Co., Ltd.
Accounts Wafangdian bearing Group special
2,626,139.80 2,972,132.13
payable precision bearing Co., LTD
Wafangdian Bearing Education and
Other payables 194,570.00
Training Center
Other payables Wafangdian Bearing Group 39,861,361.91 29,201,965.04
Dalian Wafangdian Bearing Group
Other payables 6,818,446.38
Equipment Manufacturing Co., Ltd.
Wafangdian bearing Group wind power
Other payables 2,375,852.90 1,027,263.84
bearing Co., LTD
7. Related party commitment
There is no
8. Others
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
(1) Significant contingencies existing at the balance sheet date
(2) If the company has no important contingencies that need to be disclosed, it should also be explained
The Company has no material contingencies that need to be disclosed.
3. Others
XV.Events after the balance sheet date
XVI.Other important matters
XVII.Annotation of major items in the parent company's financial statements
1. Accounts receivable
(1) Classified disclosure of accounts receivable
ending balance Beginning balance
category Book balance Provision for bad debt Book balance Provision for bad debt
The book The book
Provisio Provision
account ratio account account ratio account
n ratio value ratio value
Accounts
receivable
68,147, 68,147,261 100.00 68,147,26 68,147,26
with bad 5.32% 5.60% 100.00%
debt 261.25 .25 % 1.25 1.25
provision
106
Wafangdian Bearing Co., LTD 2022 Midyear Report
drawn on a
single item
Among
them:
Accounts
receivable
with a 1,212,7
56,833,779 1,155,873 1,148,856 57,065,02 1,091,791
combinatio 07,699. 94.68% 4.69% 94.40% 4.97%
n of bad .91 ,920.00 ,778.37 0.91 ,757.46
91
debt
provisions
Among
them:
Wherein: 1,061,8
aging 56,833,779 1,005,047 935,284,1 57,065,02 878,219,0
81,419. 82.90% 5.35% 76.85% 6.10%
combinatio .91 ,639.88 05.16 0.91 84.25
n 79
Where:
combinatio 150,826 150,826,2 213,572,6 213,572,6
11.78% 17.55%
n of related ,280.12 80.12 73.21 73.21
parties
1,280,8
124,981,04 1,155,873 1,217,004 125,212,2 1,091,791
Total 54,961. 100.00% 100.00%
1.16 ,920.00 ,039.62 82.16 ,757.46
16
Provision for bad debts on an individual basis
期末余额
名称
账面余额 坏账准备 计提比例 计提理由
Liaoning Yinheng galvanized color
3,213,308.67 3,213,308.67 100.00% non-recoverable
coated steel plate Co., LTD
Shandong Hengji New material
2,284,666.96 2,284,666.96 100.00% non-recoverable
Co., LTD
Heilongjiang Longmei Logistics
2,134,140.98 2,134,140.98 100.00% non-recoverable
Co., LTD
Shandong Yuanda board industry
1,804,722.77 1,804,722.77 100.00% non-recoverable
Technology Co., LTD
Yingkou Steel Co., LTD 1,696,318.44 1,696,318.44 100.00% non-recoverable
Hegang Co., LTD. Handan branch 1,608,611.42 1,608,611.42 100.00% non-recoverable
Angang Steel Company Limited 1,595,050.69 1,595,050.69 100.00% non-recoverable
Bazhou Tianli system pipe Co.,
1,325,600.76 1,325,600.76 100.00% non-recoverable
LTD
Zhejiang Yesheng New Material
1,301,760.00 1,301,760.00 100.00% non-recoverable
Co., LTD
Zhongxin Heavy Machinery Co.,
1,128,791.54 1,128,791.54 100.00% non-recoverable
LTD
Henan Taihang vibration
989,207.41 989,207.41 100.00% non-recoverable
machinery Co., LTD
Donghai New Material Co., LTD 942,558.20 942,558.20 100.00% non-recoverable
Shanghai Jieru Heavy Industry
electromechanical equipment Co., 923,603.80 923,603.80 100.00% non-recoverable
LTD
Tangshan Guofeng Iron and Steel
883,297.41 883,297.41 100.00% non-recoverable
Co., LTD
Jilin Chengzhong Auto Parts Co.,
872,874.22 872,874.22 100.00% non-recoverable
LTD
Shandong Changhua Machinery
846,943.06 846,943.06 100.00% non-recoverable
Technology Co., LTD
China's second heavy machinery
Group (Deyang) Wanxin 795,887.92 795,887.92 100.00% non-recoverable
engineering equipment
107
Wafangdian Bearing Co., LTD 2022 Midyear Report
Benxi Beiying Iron and Steel
775,804.98 775,804.98 100.00% non-recoverable
(Group) Co., LTD
Shantui Construction Machinery
772,850.38 772,850.38 100.00% non-recoverable
Co., Ltd.
Fujian Zhongguang Environmental
761,374.62 761,374.62 100.00% non-recoverable
protection Technology Co., LTD
Shandong Yuntong new material
711,438.94 711,438.94 100.00% non-recoverable
Technology Co., LTD
Dongfeng Automobile
704,098.23 704,098.23 100.00% non-recoverable
Transmission Co., LTD
Shanghai Wei Qiang Heavy
673,595.42 673,595.42 100.00% non-recoverable
Industry Machinery Co., LTD
Dalian Tianyuan Motor Co., LTD 666,383.31 666,383.31 100.00% non-recoverable
Shanxi Hongda Steel Co., LTD 657,373.00 657,373.00 100.00% non-recoverable
Shanxi Hande axle Co., Ltd. Xi 'an
644,075.33 644,075.33 100.00% non-recoverable
branch
Dandong Shuguang heavy axle
642,833.42 642,833.42 100.00% non-recoverable
limited liability company
Hangzhou Qianjin Gear box
634,135.80 634,135.80 100.00% non-recoverable
Group Co., LTD
Wolong Electric Huaian Qingjiang
601,859.03 601,859.03 100.00% non-recoverable
Motor Co., LTD
Xingtai Iron and Steel Co., LTD 590,148.98 590,148.98 100.00% non-recoverable
Qinghai Lufeng new material Co.,
525,743.44 525,743.44 100.00% non-recoverable
LTD
Xi 'an Zhuoshibo hydraulic
514,938.87 514,938.87 100.00% non-recoverable
Engineering Co., LTD
Jiangsu Laixie Heavy Machinery
506,477.77 506,477.77 100.00% non-recoverable
Co., LTD
Bengang Steel Plates Co.,Ltd 487,064.68 487,064.68 100.00% non-recoverable
Dongfeng Commercial Vehicle
486,019.87 486,019.87 100.00% non-recoverable
Co., LTD
Gaotang Lvyin environmental
477,691.81 477,691.81 100.00% non-recoverable
protection technology Co., LTD
Mudanjiang city reducer factory 467,905.65 467,905.65 100.00% non-recoverable
Shandong Zhangqiu Blower Co.,
461,708.13 461,708.13 100.00% non-recoverable
Ltd.
07-256 factory 460,854.77 460,854.77 100.00% non-recoverable
Beijing Jingcheng Star
Technology Development Co., 450,000.00 450,000.00 100.00% non-recoverable
LTD
Hunan Chaoyang
446,627.60 446,627.60 100.00% non-recoverable
electromechanical Co., LTD
Shandong Guanzhou Co., LTD 434,439.09 434,439.09 100.00% non-recoverable
Xiangtan Motor Co., LTD 416,549.65 416,549.65 100.00% non-recoverable
Shanxi Taigang Stainless Steel
402,332.21 402,332.21 100.00% non-recoverable
Co.,Ltd
Chengdu Gaoyuan
electromechanical equipment Co., 383,615.52 383,615.52 100.00% non-recoverable
LTD
Xuzhou Xugong material supply
373,237.55 373,237.55 100.00% non-recoverable
Co., LTD
Qingdao Double Star Tire Industry
371,251.58 371,251.58 100.00% non-recoverable
Co., LTD
Shandong Quanlin paper Co.,
370,734.92 370,734.92 100.00% non-recoverable
LTD
Nanjing Institute of Astronomical 352,660.01 352,660.01 100.00% non-recoverable
108
Wafangdian Bearing Co., LTD 2022 Midyear Report
Optics, National Astronomical
Observatories, Chinese Academy
of Sciences
Rigang Yingkou plate Co., LTD 351,890.29 351,890.29 100.00% non-recoverable
Taian Tianhua Economic and
346,554.01 346,554.01 100.00% non-recoverable
trade Co., LTD
Guanxian Hongshun composite
343,820.00 343,820.00 100.00% non-recoverable
material Co., LTD
Hengfengtai Precision Machinery
318,948.38 318,948.38 100.00% non-recoverable
Co., LTD
Shandong Tancheng Xinya light
318,488.87 318,488.87 100.00% non-recoverable
industry Machinery Co., LTD
Northeast Special Steel Group
315,004.72 315,004.72 100.00% non-recoverable
Beiman Special Steel Co., LTD
General Technology Group
312,093.91 312,093.91 100.00% non-recoverable
Kunming Machine tool Co., LTD
Shengli oil field Yinghai building
310,948.58 310,948.58 100.00% non-recoverable
materials Co., LTD
Taicang Hutai Chang 'e
310,361.32 310,361.32 100.00% non-recoverable
Papermaking Equipment Co., LTD
Shaanxi Hande axle Co., LTD 309,157.59 309,157.59 100.00% non-recoverable
Pingdingshan Tianan Coal
305,579.25 305,579.25 100.00% non-recoverable
industry Co., LTD
Panzhihua Steel Group Chengdu
303,305.45 303,305.45 100.00% non-recoverable
Iron and Steel Co., LTD
Hebei Jinxi Iron and Steel Group
301,978.67 301,978.67 100.00% non-recoverable
Co., LTD
Harbin Haguo Electric Power
297,905.32 297,905.32 100.00% non-recoverable
Technology Co., LTD
Sichuan Ningjiang Shanchuan
288,157.60 288,157.60 100.00% non-recoverable
machinery Co., LTD
Jiangsu Xinrui gear system Co.,
286,949.88 286,949.88 100.00% non-recoverable
LTD
Erzhong Group (Deyang)
Jingheng transmission Equipment 286,935.03 286,935.03 100.00% non-recoverable
Co., LTD
Siemens Motors (China) Co., LTD 284,110.82 284,110.82 100.00% non-recoverable
Langfang Shenhua Industry and
282,645.16 282,645.16 100.00% non-recoverable
trade Co., LTD
Taiyuan Heavy Industry Co. LTD 275,596.93 275,596.93 100.00% non-recoverable
Shandong Guanpeng Metal Sheet
273,748.84 273,748.84 100.00% non-recoverable
Co., LTD
Baotou Tianli Huanfa
273,597.67 273,597.67 100.00% non-recoverable
electromechanical company
Zhuzhou gear Co., LTD 270,087.40 270,087.40 100.00% non-recoverable
Zhonggang Xi 'an Heavy
265,321.47 265,321.47 100.00% non-recoverable
Machinery Co., LTD
Anhui Jianghuai Automobile
Group Co., LTD. Light commercial 264,521.67 264,521.67 100.00% non-recoverable
vehicle branch
Baoji Zhongcheng industry and
256,372.12 256,372.12 100.00% non-recoverable
trade Co., LTD
Shandong Huali Motor Group
244,801.28 244,801.28 100.00% non-recoverable
Suzhou Manufacturing Co., LTD
Zibo city Boshan Qianjin reducer
244,579.32 244,579.32 100.00% non-recoverable
factory Co., LTD
Yanggu Dangyu Sheet Co., LTD 243,280.00 243,280.00 100.00% non-recoverable
109
Wafangdian Bearing Co., LTD 2022 Midyear Report
Tonghua Iron and Steel Co., LTD 240,568.39 240,568.39 100.00% non-recoverable
Shijiazhuang Qiangda slurry pump
238,749.98 238,749.98 100.00% non-recoverable
Co., LTD
Neimenggu Hongji Technology
231,610.81 231,610.81 100.00% non-recoverable
new energy Co., LTD
Taizhong coal machine Co., LTD 215,142.12 215,142.12 100.00% non-recoverable
Qinhuangdao Shouqin metal
213,911.48 213,911.48 100.00% non-recoverable
material Co., LTD
Chongqing Tiema Industrial Group
211,196.98 211,196.98 100.00% non-recoverable
Co., LTD
Shangqi Yiweike Hongyan
210,860.60 210,860.60 100.00% non-recoverable
Commercial Vehicle Co., LTD
Shandong Quanlin straw
comprehensive utilization Co., 207,409.46 207,409.46 100.00% non-recoverable
LTD
Panzhihua steel Vanadium Co.,
203,004.70 203,004.70 100.00% non-recoverable
LTD. Panzhihua Steel Group
Fujian Wuhang stainless steel
202,936.71 202,936.71 100.00% non-recoverable
Products Co., LTD
Xinxiang Xinlanbeike vibration
200,000.00 200,000.00 100.00% non-recoverable
motor Co., LTD
Tianjin Rongtai new composite
200,000.00 200,000.00 100.00% non-recoverable
material Co., LTD
Baoji Huawei Mining Machinery
200,000.00 200,000.00 100.00% non-recoverable
Co., LTD
Hebei Wenfeng Steel Co., LTD 197,979.65 197,979.65 100.00% non-recoverable
Zhucheng Shuguang axle limited
191,824.38 191,824.38 100.00% non-recoverable
liability company
Jiangsu Xuzhou Forging Machine
188,906.34 188,906.34 100.00% non-recoverable
Tool Factory Group Co., LTD
Hubei Wazhou Xinsheng
188,136.00 188,136.00 100.00% non-recoverable
Technology Co., LTD
Hanbang (Jiangyin) Petrochemical
187,499.99 187,499.99 100.00% non-recoverable
Co., LTD
Nanjing Light Industry Machinery
185,079.54 185,079.54 100.00% non-recoverable
Factory Co., LTD
Xuzhou Zhongcai Equipment
170,930.05 170,930.05 100.00% non-recoverable
Heavy Machinery Co., LTD
Taiyuan Tongze Heavy Industry
170,178.79 170,178.79 100.00% non-recoverable
Co., LTD
Shanghai Zhongli Machinery
164,864.37 164,864.37 100.00% non-recoverable
Manufacturing Co., LTD
Xuzhou Meichi axle Co., LTD 163,037.45 163,037.45 100.00% non-recoverable
Siping Blower Co., LTD 160,053.21 160,053.21 100.00% non-recoverable
Xiangdian Heavy equipment Co.,
158,854.17 158,854.17 100.00% non-recoverable
LTD
Zhongshan Weite Motor Co., LTD 158,593.79 158,593.79 100.00% non-recoverable
Shandong Kerui steel plate Co.,
156,702.16 156,702.16 100.00% non-recoverable
LTD
Hubei Quanli Machinery Group
152,489.82 152,489.82 100.00% non-recoverable
Co., LTD
Angang steel machinery
development metallurgical 150,734.55 150,734.55 100.00% non-recoverable
electrical appliance repair factory
Wafangdian Hongda constant
velocity universal joint 148,466.32 148,466.32 100.00% non-recoverable
manufacturing Co., LTD
110
Wafangdian Bearing Co., LTD 2022 Midyear Report
Xinxiang Risheng CNC bearing
141,314.86 141,314.86 100.00% non-recoverable
equipment Co., LTD
Shandong Maitli heavy machine
137,806.10 137,806.10 100.00% non-recoverable
Co., LTD
Shenzhen Jiyang intelligent
133,560.00 133,560.00 100.00% non-recoverable
technology Co., LTD
Anhui Anfeng fan Co., LTD 131,355.36 131,355.36 100.00% non-recoverable
Zhejiang Zhonghong Motor Co.,
126,348.05 126,348.05 100.00% non-recoverable
LTD
Shenyang Qunding machinery
126,286.35 126,286.35 100.00% non-recoverable
Equipment Co., LTD
Tangshan Dunshi machinery
124,474.60 124,474.60 100.00% non-recoverable
manufacturing Co., LTD
Nantong Hengrong machine pump
123,407.18 123,407.18 100.00% non-recoverable
factory Co., LTD
Guangxi Tianyang Huamei paper
122,629.00 122,629.00 100.00% non-recoverable
Co., LTD
Shenye Heavy Equipment
121,909.54 121,909.54 100.00% non-recoverable
(Shenyang) Co., LTD
Hubei Tongfang Gaoke Pump
121,727.00 121,727.00 100.00% non-recoverable
industry Co., LTD
Harbin First machine
121,033.33 121,033.33 100.00% non-recoverable
Manufacturing Group Co., LTD
Shanghai Yaotai Engineering
113,054.61 113,054.61 100.00% non-recoverable
Technology Co., LTD
Beijing Machinery Industry
111,484.00 111,484.00 100.00% non-recoverable
Automation Research Institute
Shandong Baoding coal coking
110,528.29 110,528.29 100.00% non-recoverable
Co., LTD
Lingyuan Steel Co., LTD 110,000.00 110,000.00 100.00% non-recoverable
Taigang Group Oriental Steel Co.,
108,997.44 108,997.44 100.00% non-recoverable
LTD
Yingkou Jiachen combustion Co.,
108,451.55 108,451.55 100.00% non-recoverable
LTD
Tianma Automobile Group Co.,
107,121.10 107,121.10 100.00% non-recoverable
LTD
Shenyang Sanming Heavy
105,807.39 105,807.39 100.00% non-recoverable
Machinery Co., LTD
Weichai (Weifang) medium-sized
104,548.21 104,548.21 100.00% non-recoverable
diesel Engine Co., LTD
China Pingmei Shenma t Energy
104,296.17 104,296.17 100.00% non-recoverable
Chemical Group Co., LTD.
DBI Corporation, USA 102,568.64 102,568.64 100.00% non-recoverable
Jiamusi Ji Chi tractor
101,605.17 101,605.17 100.00% non-recoverable
manufacturing Co., LTD
Changchun power generation
equipment limited liability 100,536.11 100,536.11 100.00% non-recoverable
company
Yangmei Xinzhou General
100,447.88 100,447.88 100.00% non-recoverable
Machinery Co., LTD
other 9,396,331.15 9,396,331.15 100.00% non-recoverable
total 68,147,261.25 68,147,261.25
Provision for bad debts on a portfolio basis：56,833,779.91
name Ending balance
Book balance Bad debt reserve Provision ratio
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Wafangdian Bearing Co., LTD 2022 Midyear Report
Aging portfolio 972,442,619.40 56,833,779.91 4.69%
Combination of related parties 240,265,080.48
total 1,212,707,699.91 56,833,779.91
Provision for bad debts on a portfolio basis：56,833,779.91
name Ending balance
Book balance Bad debt reserve Provision ratio
Within 1 year 902,750,136.48 45,137,506.82 5.00%
1 to 2 years 40,087,413.37 4,008,741.34 10.00%
2 to 3 years 26,764,706.82 5,352,941.36 20.00%
3 to 4 years 892,038.53 446,019.27 50.00%
Four to five years 298,765.55 239,012.44 80.00%
More than 5 years 1,649,558.68 1,649,558.68 100.00%
Combination of related parties 240,265,080.48
total 1,212,707,699.91 56,833,779.91
Instructions for determining the basis of the combination:
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) 1,027,336,126.49
1 to 2 years 156,669,213.71
2 to 3 years 48,424,810.48
More than 3 years 48,424,810.48
3 to 4 years 7,136,880.88
4 to 5 years 15,097,127.48
More than 5 years 26,190,802.12
Total 1,280,854,961.16
(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 bad
125,212,282.16 231,241.00 124,981,041.16
debt
Total 125,212,282.16 231,241.00 124,981,041.16
(3) Accounts receivable actually written off in the current period
Project write-off amount
Accounts receivable actually written off 231,241.00
(4) The top five accounts receivable according to the ending balance collected by the debtor
Ending balance of The proportion of total ending balance of Ending balance of allowance
Name
accounts receivable accounts receivable for bad debts
Wafangdian Bearing
Precision Forging 141,978,924.70 11.08%
Co., Ltd
Wafangdian Bearing
Group Wind Power 98,349,512.59 7.68%
BearingCo., Ltd.
Wafangdian bearing 93,624,683.85 7.31%
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Wafangdian Bearing Co., LTD 2022 Midyear Report
group precision roller
co., LTD
Wafangdian bearing
63,529,148.46 4.96%
Group Co., LTD
Wafangdian bearing
Group Co., Ltd.
precision roller 61,883,753.37 4.83%
manufacturing
branch
total 459,366,022.97 35.86%
2. Other receivables
item Closing balance Opening balance
Dividends receivable 11,843,105.36 11,843,105.36
Other accounts receivable 289,575,523.10 314,644,304.84
total 301,418,628.46 326,487,410.20
(2) Dividends receivable
1) Dividend receivable classification
Project (or investee)
Project (or investee) Ending Balance Beginning balance of the Ending Balance Project (or investee) Ending Balance
period Beginning balance of Beginning balance of the period
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
(3) Other accounts receivable
1) Classification of other receivables by nature
Nature of money Closing book balance Starting book balance
Related party loan 276,651,433.00 304,433,271.67
Deposits and deposits 4,581,512.94 7,260,746.37
Personal reserve fund 2,799,366.50 1,464,007.16
Electric charge 495,121.67 1,155,078.82
Other money 5,048,088.99 331,200.82
total 289,575,523.10 314,644,304.84
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,
5,994,647.88 5,994,647.88
2023
January 1, 2023 balance
in current period
Balance on June 30,
5,994,647.88 5,994,647.88
2023
Loss provision Changes in current period significant changes in book balance
Applicable Inapplicable
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Wafangdian Bearing Co., LTD 2022 Midyear Report
Disclosure by age
aging Closing balance
Within 1 year (including 1 year) 288,491,007.69
1 to 2 years 47,595.00
2 to 3 years 2,354,054.24
More than 3 years 4,677,514.05
3 to 4 years 507,736.11
4 to 5 years 25,958.36
More than 5 years 4,143,819.58
Total 295,570,170.98
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
5,994,647.88 29,787.40 5,994,647.88
provision
Total 5,994,647.88 29,787.40 5,994,647.88
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 Related party Within 1
128,593,120.52 43.51%
Automobile Bearing Co., Ltd. loan year
Wazhou Liaoyang Bearing Construction Related party Within 1
102,381,156.58 34.63%
Co.,Ltd loan year
Wazhou Precision of Spherical Roller Related party Within 1
45,677,155.90 15.45%
Bearings(Wafangdian)Co., Ltd loan year
State Grid Liaoning Electric Power Co., Within 1
Prepaid electricity 495,121.67 0.17%
LTD. Dalian Power Supply Company year
Dalian Economic and Technological
Within 1
Development Zone Dayou high-tech Advance payment 45,000.00 0.02%
year
ceramics Co., LTD
合计 277,191,554.67 93.78%
3. Category of long-term equity investments
Closing Balance Opening Balance
Item
Closing Balance Provision Book Value Opening Balance Provision Book Value
Investment in
225,693,897.67 225,693,897.67 225,693,897.67 225,693,897.67
subsidiaries
合计 225,693,897.67 225,693,897.67 225,693,897.67 225,693,897.67
（1） Investments into subsidiaries
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Wafangdian Bearing Co., LTD 2022 Midyear Report
Change Closing
Opening Closing
Subsidiaries names Provision in Balance of
Balance Increase Decrease Others Balance
current period provision
Wazhou Liaoyang
31,447,259
Bearing Construction 31,447,259.95
.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
225,693,89 225,693,897.6
Total
7.67 7
4.Operating revenue and cost
current year prior year
project
Revenue Cost Revenue Cost
Item 1,135,958,921.84 983,525,942.90 980,699,092.66 855,080,947.83
Revenue from main
133,398,918.95 85,543,042.96 126,336,105.32 75,617,985.01
operation
Revenue from other
1,269,357,840.79 1,069,068,985.86 1,107,035,197.98 930,698,932.84
operation
5.Investment income
Items current year prior year
Dividend income obtained during the holding period of long-term
2,000,000.00 18,821.12
equity investment
Gain on debt restructuring 2,980,548.02 2,294,441.90
Total 4,980,548.02 2,313,263.02
6. Others
XVIII. Supplementary Information to the Financial Statements
1. Non-recurring profit and loss statement for the current period
Applicable Inapplicable
Items Current year Notes
Gain or loss from disposal of non-current assets 817,370.49
Government grants recorded into profit or loss during current period(except the
government subsidies which are fixed or quantitatively enjoyed according to the 3,473,971.34
national unified standard and it is closely related to the business)
Profit or loss from debts restructuring 4,328,977.57
In addition to the effective hedging business related to the normal operation of the
-27,735.32
company, it holds transactional financial assets. The profit and loss of fair value
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Wafangdian Bearing Co., LTD 2022 Midyear Report
variation arising from transaction financial liabilities, and the investment income of
transaction financial liabilities and available-for-sale financial assets from the
disposal of transaction financial assets
Other non-operating income and expenditure other than those mentioned above 543,960.73
Other items of profit or loss that meet the definition of non-recurring profit or loss 2,000,000.00
Less: Income tax impact 1,683,802.22
total 9,452,742.59 --
Details of other items of profit or loss that meet the definition of non-recurring profit or loss:
Applicable Not applicable
The current period received a dividend of 2 million yuan to Aimuyi Company.
The non-recurring profit and loss items listed in Explanatory Announcement No. 1 on Information Disclosure of Publicly Issued Securities
Companies - Non-recurring Profit and Loss are defined as the fact sheet of the regular profit and loss items
□ Applicable Not applicable
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
-7.78% -0.0879 -0.0879
company
Net profit after deducting non-recurring gains
and losses attributable to shareholders of -9.86% -0.1114 -0.1114
parent company
3. Differences in accounting data under domestic and foreign accounting standards
(1) The difference between net profit and net assets in financial reports disclosed under both international accounting standards and Chinese
accounting standards
□ Applicable Not applicable
(2) The difference between net profit and net assets in financial reports disclosed under both foreign accounting standards and Chinese
accounting standards
□ Applicable Not applicable
(3) Explanation of the reasons for the difference of accounting data under domestic and foreign accounting standards, the name of the overseas
audit institution should be indicated if the difference adjustment is made to the data audited by the overseas audit institution
4. Others
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Wafangdian Bearing Co., LTD 2022 Midyear Report
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